Photo by James Guerrero on Unsplash

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.

You’ve created the perfect food truck concept. Now you’re ready to make your concept a reality.

Understanding food truck expenses will help you plan financially to start your business. The truck itself is an obvious expense, but you might not think of the other little costs that add up quickly.

Check out these costs of starting a food truck.

Food Truck Vehicle

Buying a food truck is often the most expensive part of starting a food truck business. The size, features, and age of the truck affect how much you’ll spend. 

If you can’t afford to buy your truck outright, you can look into the option of financing the truck. This will involve ongoing monthly payments.

You’ll also want to customize the truck inside and outside to reflect your business branding and cooking needs.

Startup Food Truck Expenses

Before you can start running your food truck, you’ll need to pay for certain startup costs. This includes licensing, registration, and permits.

The requirements and associated fees will vary based on where you plan to operate. To calculate those expenses, check with the cities where you’ll be operating your food truck.

Equipment

Your truck will need custom cooking equipment based on the type of food you plan to serve. That might include the following:

• Oven
• Fryer
• Grill
• Refrigerator
• Exhaust fan
• Warming lamp
• Generator

You’ll need serving tools and cleaning equipment to keep your gear sanitized. Food trucks also need disposable products, such as utensils and napkins, for customers.

Some food truck owners also rent commercial kitchen space. They cook the bulk of the food in the commercial space and serve from the truck. 

If this is your plan, research the commercial kitchen rental costs in your area to estimate this expense.

Food Supplies

Your food costs depend largely on the menu. A simple menu with only a few choices and basic items allows for lower food costs. More complex dishes or lots of menu options increase your food costs.

A general guideline is to have food costs between 25% and 38% of your revenue.

Price out all of the ingredients for your menu items to estimate how much you’ll spend on food.

Operating Costs

The operating costs are the ongoing maintenance and fees you have to pay to keep the truck running. 

Food truck insurance is a crucial operating expense that protects your investment.

Other operating costs include:

• Fuel
• Truck maintenance
• Staff wages and benefits
• Internet or cell service
• POS system

Depending on where you park your truck, you might need to pay rental fees for the parking spots.

Estimate the average monthly operating costs to calculate how much business you need to do to make a profit.

Marketing

You need a steady stream of customers to keep your food truck business afloat, so don’t forget marketing costs.

Using social media marketing is a cost-effective option, but you might choose to do paid ads and other paid marketing methods.

Many businesses outsource marketing to save time. If you wish to create a website for your truck, you’ll likely have a monthly or yearly payment for website hosting costs.

Calculate Food Truck Costs

Before you start your new business venture, calculate the total food truck expenses based on your business plan. Knowing all the costs helps you create a workable budget and get proper funding.

Are you ready to start your food truck? Contact us for a quote request to get started!

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 Trucks 101: A Checklist of Food Truck Expenses appeared first on Custom Concessions.