Buy Small Food Truck
Even if food truck owners aspire to one day open brick-and-mortar locations, starting out with a mobile operation is a smart way to try out different neighborhoods, test and tweak dishes, and build a following before taking the plunge with a physical location.
buy small food truck
The types of permits and licenses required to operate a food truck fall under these five categories: administrative, health/menu/food safety, vehicle requirements and safety/hazard prevention, employment, and zoning.
Costs vary by location, but the five cities friendliest to food trucks are Portland(Oregon), Denver, Orlando, Philadelphia, and Indianapolis. The five toughest cities for food trucks are Boston, Washington, D.C., San Francisco, Minneapolis, and Seattle.
Indianapolis has the lowest fees at $590, while Boston comes in at $17,066 (Seattle has the next highest fees at $6,211). Boston is an outlier with its extra-high fees, so if you remove it from the equation and calculate the average permit and license costs of the other top-19 food truck cities, you find that the average fees paid by food truck operators are about $1,864.
Perhaps the biggest (and priciest) question new food truck entrepreneurs face is whether to rent or buy their vehicle. And this will deeply effect food truck costs. You can expect to spend anywhere from $75,000 to $150,000 on a new, made-to-order truck, according to Restaurant MBA, and they take months to build.
The type of equipment you need depends on the type of food you serve, but common appliances are ovens, fryers, grills, and refrigerators. Other equipment may include pots and pans, storage containers and knives, serving implements, and other utensils. Appliances can cost well into the thousands, and supplies like pots, pans, and other tools can cost a few thousand dollars.
The basic materials you need to launch your food truck include ingredients for your menu items and serveware like plates, cups, lids, utensils, and napkins. The startup costs for ingredients depends on your menu, but expect to spend around $1,000 to $2,000 when you take into account items like cooking oil, spices, and more. Serveware startup costs for food trucks are around $300.
Colleen writes for Square, where she covers everything from how aspiring entrepreneurs can turn their passion into a career to the best marketing strategies for small businesses who are ready to take their enterprise to the next level.
The popularity of food trucks has grown so rapidly over the past few years that some cities are now known for their food truck scene. What used to be considered a food risk has become foodie trend across the globe. If you are wondering how to start a food truck business of your own and what the cost is to start a food truck, check out the following steps and tips to help you get the ball rolling.
The average cost to start a food truck can be anywhere between $70,000 to $130,000. Depending on legal fees, customization, state, and niche, a food truck owner can end up paying as little as $10,000 for their business or as much as $250,000. There are several variables that can impact your cost at the end of the day.
Once you have your concept established, it is time to get started on your food truck business plan. Writing a food truck business plan is an excellent way to work out the details of your business before you begin investing into it. This is also the document you would present to potential investors, so it is important to lay out your vision and financial plan carefully. The sections of a food truck business plan should include the following:
Your business plan is your first step toward requesting funding for your truck. Considering the costs involved in opening a food truck, it is likely that you will need a loan to get your business off of its feet. That funding and startup savings can come from a variety of places:
Considering that the largest portion of your startup budget will go to your food truck vehicle, it is important to select one that will serve your business well. There are a few aspects to consider when choosing the vehicle that will become your food truck, such as the following:
Additionally, it is important to purchase insurance for your truck and business to cover any physical damage and liabilities that may occur. Once you acquire a food truck vehicle, you may need to finalize your inspections and permits in order to become street legal.
With a truck in your possession, the next step is to furnish your space with food truck equipment and supplies. These items will be essential for producing your products and keeping your truck operating efficiently.
Many food trucks choose to take a cash-only route in order to not depend on internet access; however, customers are less likely to have cash on them, which can limit your customer base. This is leading food truck owners to select POS systems that allow them to accept both cash or credit.
Toast POS systems are ideal for food truck environments because they can be set up with mobile order and pay options. This means your customers can order and pay by phone, freeing up your time to focus on preparing orders. No more pens, paper, or receipts.
Many food truck owners dream that starting a small business can lead to opening their own brick-and-mortar location. A mobile setup is a smart way to try out different locations, test and tweak dishes, and build a loyal following before taking the plunge for real.
Mobile catering often beats its brick-and-mortar equivalent hands down on price. But how much money do you actually need to start a food truck and what are the factors to consider when starting a small business?
As with non-mobile restaurants, there are a number of licences and permits included in the food truck startup costs that businesses need to secure before they can start selling. When it comes to the important questions to ask when starting a small business, finding the right permits will save you a lot of future nuisance:
Commercial gas safety certificate. If you plan to cook hot food with gas appliances, this certificate is needed to show that all equipment is safe and fit for use. All your gas appliances should come with a CE marking and flame failure device.
Food hygiene certificate. Food safety regulations require anyone handling food or drink to prove that they can do so responsibly. The best way is to simply get a food hygiene certificate, though one is not required by law.
The biggest question on your mind is probably how much of your food truck startup costs should you spend on the vehicle itself. This is by far the biggest outlay, but with the right choice and regular maintenance it could last you for years to come.
Even the most successful small business ideas in the UK can falter, especially during a global pandemic. Here are some ways to make sure your business is following safety measures and remaining prosperous during lockdown:
Takeaway: luckily, the nature of food trucks makes offering takeaway and delivery easier. There are still some specific COVID-19 rules to consider, however, so make sure to read up on any changes to procedure.
On average, most food truck entrepreneurs spend between $70,000 and $80,000 on their food truck. The total price of buying a food truck can amount anywhere from $50,000 to $250,000 depending on how you acquire the truck, customize it for your needs, and your local permit and licensing requirements. To help you narrow down how much you should expect to spend on your food truck, we break down the average cost of new, used, and leased food trucks below.
The first step in owning a food truck is assessing the financial obligation by writing a food truck business plan. Begin by researching your target market, local ordinances, licensing and permit demands, parking permit regulations, and what type of equipment your menu requires.
Most food truck entrepreneurs need to apply for financing or a loan to offset food truck startup costs. Before heading to your bank, know your credit score and, based on your food truck business plan, know how much owning a food truck business will cost you.
One of the biggest decisions of buying a food truck is deciding whether to purchase it new or used. While there are advantages and disadvantages of each choice, it ultimately comes down to what your budget is and how much you can afford upfront. We'll go over the pros and cons of buying new and used food trucks, so you can make the best decision for your financial status.
If you have the money, buying a new food truck is a worthwhile investment that will help you avoid costly repairs down the line. Discover the advantages and disadvantages of buying a new food truck below.
If you want to own your food truck but are hesitant to invest in a brand new vehicle, buying a used food truck is a great alternative. Learn about the advantages and disadvantages of buying a used food truck below.
Purchasing a kitchen-equipped truck is the most expensive part of becoming a food truck operator, so many entrepreneurs circumnavigate this major up-front cost by leasing their food truck. Making smaller payments over time allows you to get a brand new, high-end food truck without a large initial fee. The leasing route might be right for you if you're new to the foodservice industry or want to see if your brick and mortar does well as a food truck.
The website Food Truck Empire provides a list of reputable dealers and helps you find a dealer in your state. Also, many entrepreneurs ask the owner of their favorite food truck where they purchased their vehicle. Asking food truck owners for recommendations provides the opportunity to inquire about how well their truck runs and if they had a positive experience with its vendor. 041b061a72