Address:
Call Now Local:Toll Free:
Address:Call Now Local:Toll Free:
Food trucks are a great business venture for people who enjoy cooking and, at the same time, staying on the move. It lets you bypass the relatively higher startup costs of a traditional restaurant and gives you more flexibility in terms of location. That said, the startup costs of a food truck isn’t an expense you can take lightly. Failure to determine cost categories and exact numbers can start you off on a rocky path that’s likely headed to failure. Read on further as we discuss four startup costs to expect on your first food truck venture.
As with any business venture, you are required to procure a specific set of licenses and permits to legally run your food truck. Based on the Food Truck Index released by the U.S. Chamber of Commerce, food truck owners spend roughly $28,000 on legal compliance costs each year. These permits are typically only good for a year and need to be periodically renewed while the food truck is operational. Legal compliance costs can vary based on location, with Portland, Denver, and Orlando considered as some of the least expensive cities to get a food truck license and permit.
The vehicle you’ll use for your food truck business will be your biggest cost, so you’ll want to consider all the options you have. In terms of acquiring a vehicle, you can either rent or buy the vehicle. Truck rental costs will depend on the lease length, with longer contracts generally costing cheaper. Lease contracts of longer than six months, for instance, will cost an average of $2,500 per month. Buying a truck, on the other hand, will depend on the condition of the vehicle, with secondhand options costing anywhere between $40,000 to $80,000 and newer ones costing up to $150,000.
A truck alone won’t do much for your food business; you’ll need to outfit it with supplies and equipment. The type of kitchen equipment you need depends on the kind of food you plan on serving. Typical appliances you’ll need onboard include fryers, grills, ovens, and a refrigerator. And then you have your utensils – pots, pans, knives, etcetera. Expect to shell out a few thousand dollars for this equipment.
Last on the list is a place to park your vehicle. A regular parking spot in a lot or garage won’t do either. You’ll need somewhere where you have access to power, storage space, fresh water, and a place to refill your vehicle with propane. This built-in infrastructure is invaluable for food truck owners as it cuts down on prep time and labor. The estimated cost to rent these types of spaces is anywhere between $500 to $1,500 per month.
The success of any type of business depends primarily on cash flow. Start your food truck business right by identifying all relevant costs, starting with the four categories aforementioned in this article.
We ensure that every concession trailer, catering trailer, or hot truck we sell is Federally compliant from day one. California Cart Builders' knowledgeable "Approval Assistance" team can work as a liaison between you and your health department to make sure your unit will pass your local Health codes.
We are the Leading manufacturer for a Mobile Kitchen and High quality concession trailer. If you are looking for hot truck, or commercial catering trailer, and concession trailer you have come to the right place.
Mobile kitchen or Hot Truck are best to Franchise your restaurant.
