Times You Shouldn’t Comp A Meal From Your Food Truck

Times You Shouldn’t Comp A Meal From Your Food Truck

comp

A comp is the act of providing a customer a food or beverage item for free. While it’s a common practice of food truck owners, it should only be used in certain situations. By comping your food or beverages, you are training your customers to expect it. Then when you don’t, they’re disappointed for not getting something they wouldn’t have gotten at another food truck anyways.

When To Avoid Giving A Comp Meal

 

A customer that simply orders something they end up not liking, not because it was bad, but because it doesn’t suit their taste, is never someone whose meal should receive a comp in our opinion. Along with other complaints from customers who eat most or all their meal, or do not have enough of an appetite to let you make them something else, you should be offering these people some sort of bounce back offer instead of a comp.

Your first approach should always be to try and replace the food with something they do like. Even if you have to make a dish twice, as long as you collect the money for it, you still have some gross profit left to contribute. When you give a comp, you not only don’t get the money, but you also incurred the expense of preparing the food. The difference between collecting a reduced gross profit, and actually paying your customer to eat from your truck is huge.

If you can’t replace the food, and the customer’s complaint is reasonable, offer them a coupon or gift certificate and promise to make their next visit better. By offering a comp meal, you can’t guarantee that the customer will even come back. When you give them a discount for their next visit instead of a comp, there is a very good chance they will return, and they likely won’t be alone. You’ll have the opportunity to make a better impression and win a regular customer for your food truck.

Comp Meals Can Be A Financial Headache

The other issue with comp meals is that it is often one of the most common errors in the financial statements of food trucks is the incorrect recording of food and beverage comps.  And if you have a lot of comps, your income statement will be greatly distorted if they are not handled correctly.

The biggest impact is in the calculation of cost of sales. When calculating cost of sales, it’s essential that you only include the cost of products that contribute to revenue… not amounts for which no payment is expected or that do not represent sales to guests. In other words, sales and cost of sales must not include the retail value or cost of comps.

What is your food truck’s comp policy? We’d love to hear if you comp, or when you do or don’t. You can share your thoughts via email, Facebook or Twitter.

Richard is an architect by degree (Lawrence Technological University, Southfield, Michigan) who began his career in real estate development and architectural planning. In September of 2010 he created Mobile Cuisine Magazine to fill an information void he found when he began researching how to start a mobile hotdog cart in Chicago. Richard found that there was no central repository of mobile street food information anywhere on the internet, and with that, the idea for MCM was born.