How To Make Money With Your Truck

The Cost of Starting a Food Truck

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The food truck industry is booming, and a lot of people are interested in getting started with their own food truck. There's a lot to consider. Do you want to join a mobile food truck franchise, or start your own concept? Are you interested in used vending food trucks or new? You have to choose a concept, decide on the food you want to serve, pick an area, and of course – get a truck. What is the cost of a food truck? Here's what you need to know.

The Cost of the Truck Itself

Of course, you can't do much until you have the vehicle you'll be working in. From mini food trucks to huge rigs, a food truck will cost you between $25,000 and $100,000. That's obviously a huge range, and as with most things it's helpful to not be on either extreme. The cheapest truck you can find will probably be used and may be prone to mechanical problems. The costs for repairs and missed business opportunities can make this a very expensive option.

On the other hand, the most expensive truck is not a wise investment until you're sure that your business really needs it. Instead, choose a truck that you can afford and still have money left for the cooking equipment.

Cost of Cooking Equipment

Similar to the truck, you'll find that you can buy very cheap or very expensive equipment, but it's better to be in the middle. Choose high-quality equipment that will last – and yes, used is an option. Exactly what equipment you need depends on what food you plan to serve. Expect to spend at least $10,000 to outfit your truck with cooking equipment and a couple thousand more on smallwares like plates, utensils, napkins, condiments, and more.

Licenses and Permits

The licenses and permits you need from your state and city need to be considered as well. You'll need clearance from the health department, and you'll need to meet the requirements of your local area. If you don't already have a commercial driver's license (CDL), you'll need to invest in the training to get that as well. This will allow you to get your truck to where you want it to be each day. Count on several hundred dollars for permits and licenses and another few thousand for driver's license training.

Insurance

Food truck insurance can be expensive, because they are highly visible and make great targets for theft and vandalism. Of course, you can also have auto accidents as you're driving. You'll also want insurance that covers employees, the risk of food poisoning, and other possible concerns. Insurance will vary significantly depending on where you live and where you will be operating your food truck.

Ongoing Costs

Once you've gotten your business started, you'll have a variety of costs that will come up on a regular basis. These include salaries for employees, ongoing purchase of ingredients and smallwares, and even parking – especially when the truck is not in use. Participating in events may cost you a bit of money up front, so keep that in mind. You'll also need to invest in marketing so you can stand out from other food trucks and competitors. Food truck sales will benefit a lot from great marketing. These costs will vary over time, but don't scrimp – especially on marketing and ingredients. You need a great, high-quality menu that others know about in order to be successful.