If you are an entrepreneur looking for a great new opportunity, look no further than the food truck business. A perfect match for those who understand management, the food industry, and the importance of customer service, entrepreneurs will find food trucks a growing segment of the food service industry. The foundation of the food truck industry goes back to the late 19th century when vendors delivered foods and drinks to factory workers, but the first true food trucks were the ice cream trucks of the mid-20th century. Today’s food trucks deliver culinary delights on city streets, in parks, at festivals, on college campuses, at event venues, on boardwalks, virtually everywhere.
The Benefits of Beginning a Food Truck Business
The food truck business offers a number of benefits. For those interested in the restaurant industry, the food truck business promises similar opportunity without all of the risk of opening a brick and mortar restaurant. With a food truck, there is no investment in location that might not pan out, but rather the opportunity to move from place to place, adjusting your location to meet demand. With a food truck, your menu can also be adjusted easily as can your overall business model, two tasks not easily done with a brick and mortar restaurant. Plus, the cost of owning a food truck business are considerably smaller than restaurant.
Speaking of costs, a food truck is much more compact than a restaurant which means lower overhead costs. For example, a restaurant will have rent and utility payments, as well as maintenance and upkeep costs, not to mention food inventory and design costs. A food truck means a vehicle payment, minor maintenance costs, and limited inventory costs.
A food truck, because it is a condensed business model, allows you to be your own boss, performing wide variety of duties, something you can’t easily do in a restaurant business. A food truck business can also be a great starting point for learning all about owning your own business, customer service, and more, paving the way for expansion or even opening your own restaurant as some point in the future.
Start your Food Truck Business and Hit the Road
Even though the food truck business is less costly than some others to start, there are still substantial costs involved, the main one being the cost of your food truck. Of course, there are others.
- Truck Cost is number one, starting at $20,000 and rising quickly from there depending on your choice of vehicle and whether it’s new or used.
- Equipment (cooking, refrigeration, storage, sink, etc.) costs come next, averaging around $50,000 for a new truck and potentially decreasing if you find a gently used, well-equipped truck.
- Licenses and Permits can run up to $25,000 and include business licenses, food service licenses, insurance, parking permits, as well as proximity and staffing regulations, and emissions guidelines. It’s better to know the licenses needed and the regulations to follow before you start your food truck design. Why? You don’t want to find out after your food truck is complete that costly modifications are needed to meet local or state requirements for food truck operation.
- Inventory Expenses can cost $500 to $2,000 per month for food, beverages, and packaging items.
- Operational and Maintenance Costs can be small ($500) or large ($10,000) depending on your business. These include items like fuel, lighting, payroll, water, repairs, POS (point of sale) system, etc.).
Call on Sizemore Ultimate Food Trucks
When you are ready to start your food truck business and hit the road, Sizemore Ultimate Food Trucks is ready to help. Call today and let them help you get ready to hit the road!