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Statisticians estimate that there are over 25,000 food trucks in the United States currently.

As is the case for any business, there are many different costs you’ll need to attend to when you’re running a food truck. The entire amount will depend on the scale of your business and the area where you’re based.

If you want your food truck business to succeed, you have to manage your expenses properly. The first step toward doing this is learning about what your costs will be and where they’re likely to come from.

Read on to learn more about food truck expenses and how they’re likely to affect your business.

The Basic Food Truck Expenses

There are many different expenses you might incur while running a food truck. We’ve looked at some of the main categories below.

Start-Up Costs

Food truck businesses have become increasingly popular in recent years due to their low start-up costs. While it’s true that in many parts of the country buying a food truck will cost less than the property needed for a brick-and-mortar restaurant, you’ll still need to figure out how to cover your startup costs, either from cash or financing.

The cost of your food truck will include the vehicle itself, as well as any onboard kitchen equipment. You’ll want to carefully consider the layout of your truck, as incorporating additional appliances later on will be difficult in such a small space.

Stock

Like any other restaurant, food trucks have to buy the ingredients for the food they cook. If you want to build your reputation as an outstanding food vendor, investing in quality ingredients is especially important.

Aside from food, you should consider other kitchen necessities, such as pots, pans, cooking implements, utensils, and serveware. You might be able to start off with minimal cooking accessories and continue to build up your kitchen over time, as you see the need for additional items. 

Fuel

There are a couple types of fuel you will need to consider: the gasoline or diesel you’ll use to transport your truck from place to place, and the generator fuel you will need to run your kitchen once you’ve set up shop.

Deciding how much money to put in your vehicle fuel budget will depend how much driving you plan to do. Will your food truck spend most of its time being stationed in one spot? Or do you plan travel a lot for food fairs and other events? This will make a huge difference in how much you spend on fuel costs.

Vehicle Maintenance

This is another cost that will likely vary with how much time you spend actually driving your truck around. Based on usage, you’ll need to come up with a plan for how often your truck will need oil changes, new tires, and other replenishments. Plus, you should be sure and schedule your truck for regular maintenance to keep it in top working condition.

Tax & Insurance

Like any other vehicle, your food truck will need to be insured before it can take to the road. And you’ll need to pay registration fees to keep your vehicle legal! These costs vary considerably from one state to the next, so be sure to find out specifics from your local transportation department.

Succeeding as a Food Truck Owner in 2020

Managing your food truck expenses properly is one of the most important things you’ll have to do if you want your business to succeed. Many businesses that start from a great concept have failed because of an inability to keep costs under control.

Knowing your way around the expense categories we’ve listed here will have you well on your way to making a success of your food truck enterprise.

Looking to get started? Contact us today to discuss your food truck needs.

Want more food truck advice? Check out more blog posts here!

Thinking about starting a food truck? Request a free custom quote and one of our food truck specialists will help you design the truck of your dreams.

Stay up to date on everything Custom Concessions has to offer! Like us on Facebook and follow us on Twitter.

The post Food Truck Expenses: What Are the Costs to Buy and Run a Food Truck? appeared first on Custom Concessions.

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Remember when everyone thought food trucks were just an amusement?

Well, we do. But we know that this fad was anything but that. Now, this hard-scrabble food slinging world has some serious value. 

By 2020, the food truck industry will be worth $996 million—proof that we can’t imagine life without them.

Your food truck is an essential part of your mobile restaurant, so you have to make sure that thing is insured! But what does food truck insurance cost?

Food Truck Insurance Cost Varies like the Cost of Food Truck Lobster Rolls

The less expensive the policy is, the less likely it is to have real lobster. Somethings you just can’t fake or flake on. But even in that, you don’t need to pay out the nose to get what you need. 

Food truck insurance cost depends on the provider and plan that you buy. 

Don’t be surprised if the cost is in the thousands for an annual premium. This is, in part, good if you actually expect a payout when you file a claim and if you understand that there really is no such thing as food truck insurance. 

Wait, What? 

That’s right. It would be surprising if a state’s laws actually spelled out insurance on food trucks, even if going without coverage is out of the question.

Most of the time, insurers will package together insurance plans that include general liability coverage, commercial auto insurance, business property, and workers’ compensation insurance—all of the insurance types that a mobile food serving organization will need. If you bundle all of your insurance policies and purchase them through the same company, you may be able to get a better deal. 

Other Reasons It’s Hard to Guess

Nearly every food truck is different. This is what makes the food and the food truck scene so great. 

But the fact that all trucks are different makes insuring them a challenge. Some trucks have grills, others have friers, pizza oven or BBQ smokers. All of these things have varying levels of risk and monetary value and will be treated differently by insurers. 

Further, the kinds of food, your state’s regulations for food-serving entities, and the gear that is attached to your truck will impact the price.

You’ve Got Questions

Finding the right food truck insurance can be confusing, but you will want to know how much of your budget will need to go toward insurance. Your best bet might simply be to get some quotes or reach out to a local insurance firm for help in finding a close estimate of how much you should expect to pay.

Food truck insurance cost will be just one part of a larger plan for success. Be sure to make a business plan so you can determine the overall cost and profitability of your future food truck business.

Need a quote for your first food truck? Or need help designing an upgrade? Connect with us and make it happen!

Want more food truck advice? Check out more blog posts here!

Thinking about starting a food truck? Request a free custom quote and one of our food truck specialists will help you design the truck of your dreams.

Stay up to date on everything Custom Concessions has to offer! Like us on Facebook and follow us on Twitter.

The post How Much Does Food Truck Insurance Cost? appeared first on Custom Concessions.

Investing in a food truck isn’t going to be cheap but has huge potential, so you need to be informed from the start and have a plan for being profitable. Below we’ll review some of the top operating costs you can expect to encounter when you start your food truck business. 

Fuel Costs

When using a food truck you have to consider fuel costs. No matter if you’re using your food truck locally or going across the country, fuel needs to be a line item in your budget. If you’re going across the country, you’ll need to factor in those costs before you travel.

You’ll also have to consider the size of your truck—the bigger the truck, the more you’ll be spending on fuel. How heavy the equipment you use will be a factor as well, as heavier equipment will add more weight to your truck. More weight equals higher fuel costs.

Calculate how many miles you’ll be going each day compared to your truck’s gas mileage to see how much you’ll be paying each month.

Keep in mind that gas prices vary from state to state. If you plan to travel across state lines make sure to calculate the difference.

Ingredient Costs

Know what ingredients you’ll be using frequently and how much they’ll cost you. Some foods are more expensive than others, especially meats and spices.

Try not to have a large menu, as more ingredients means higher prices. Moreover, you may not have space for as many different kinds of ingredients, depending on the size of your truck and how much storage is available.

Another way to reduce your ingredient cost is to rotate your menu with the seasons using seasonal foods. Buying food in season will save you a lot of money.

Buying in bulk can also reduce how much you should expect to pay. Keep in mind that you need space to store large amounts of food. You may want to store some of these bulk foods somewhere off site so they don’t crowd up the limited space in your kitchen and contribute even more to the gas-guzzling nature of your food truck.

When looking at your food costs, a good rule of thumb is to keep your food costs between 28%-35%.

Demand

When you set up shop, you need to know your demographic. You need to tailor your menu to the people you’re serving. What you sell in one location may not sell well in another location.

You also need to predict how many people will come to your truck. You don’t want to have more food than you need. Too much food can lead to waste, which basically means money down the drain.

Review how well other food trucks in the area have done. Look at sales forecasts and previous sales made by other food trucks.

Moreover, review when food trucks are more popular in that specific area. You want as much foot traffic as you can get.

On top of that, when people go to food trucks, they’re not expecting a large menu. Be clear about what you’re selling. If potential customers don’t understand what you’re selling they won’t buy from you.

Permits, Licenses, Certificates, and Insurance

There are many fees that come with food trucks. Make sure you can afford them before you start a food truck business.

Permits, Licenses, and Certificates

You need permits, licenses, and certificates to be able to legally serve food. For example, you’ll need health permits, hazard prevention, vehicle, and zoning permits. Moreover, food safety certificates may be required (e.g. ServSafe certified).

You may need to get many permits if you go out of your state, or even to a different location in your state. States and local jurisdictions (e.g. counties, towns) have different regulations and prices.

Research each location before you go to make sure you have the proper documentation. Getting this documentation can take time so prepare in advance.

Be aware of how often these need to be renewed as well. Each time you need to renew you’ll have to shell out more money.

Once you have all your documentation, you’re still regulated on where you can set up shop. There will be specific locations and hours you’ll be able to sell food.

Insurance

Not only do you need permits, certificates, and licenses, but insurance as well. Insurance is essential for protecting your business, but it comes at a cost.

Some types of insurance you’ll definitely want include auto, liability, and workers’ compensation. You’ll also want a business owner’s policy. This should bundle in your general liability and property insurance.

Getting bundle deals for your insurance will reduce the amount you’ll be charged for them.

Renting Space

Unlike a restaurant, you’re not guaranteed a fixed space. You need find somewhere to park your vehicle when you’re not serving food.

Moreover, you won’t have as much space as a restaurant. If you can’t get everything done in your food truck, and/or can’t hold everything in it, you’ll need extra space, like a commercial or commissary kitchen.

Parking

Before you go on the road, research your route ahead of time. Reserve parking, if possible. By reserving space ahead of time you may also save on costs.

Commercial/Commissary Kitchens

If you need to store food, you may want/need to use a commercial or commissary kitchen. You can pick up food as you need it.

Keep in mind how far away the location is from where you’re selling your food. You don’t want to make many trips if you have to travel further away from the kitchen.

Having access to one of these kitchens will make it easier for you to prep all your food beforehand. You won’t have to try and prep your food in the small space of your food truck.

On top of that, your food truck may not have all the equipment you need to prepare your food beforehand.

Top Food Truck Costs

These are some of the food truck costs you need to be aware of. Do your research to learn about other costs that could affect you. Look for ways to reduce your costs—you don’t want to pay more than you have to.

Want more food truck advice? Check out more blog posts here!

Thinking about starting a food truck? Request a free custom quote and one of our food truck specialists will help you design the truck of your dreams.

Stay up to date on everything Custom Concessions has to offer! Like us on Facebook and follow us on Twitter.

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