With the high consumption of coffee in the U.S, a coffee truck business can be a lucrative and cost-effective alternative to starting a restaurant or food truck. Low barriers to entry, fewer equipment, and smaller staff size are some of the main benefits of starting a coffee food truck. Read on to learn more about the advantages of starting a mobile coffee shop.
Why should you start a coffee food truck?
Compared to a brick and mortar shop or large food truck, a mobile coffee truck provides several benefits. These include:
- A relatively modest initial investment
- Increased flexibility
- Non-seasonal menu
- Less marketing required
1. It Requires a Moderate Initial Investment
One main reason for starting a coffee food truck is its affordability. Typically, the capital required to establish a coffee cart is significantly low compared to the cost of starting a traditional restaurant. On average, it will cost you around $20,000 to $200,000 to start a coffee food truck, while creating a brick-and-mortar restaurant will cost you between $200,000 and $375,000.
The basic requirements of starting and operating a food truck include a coffee cart, coffee and other products, coffee brewing machines, and licensing. One is not required to have a physical shop to start a coffee shop, like when establishing a traditional coffee shop. Paying for a commercial space in a larger town in the U.S. is very expensive.
2. Flexibility
Another primary reason for starting a coffee food truck is its flexibility. You are not required to sell in one location or have a fixed working routine. The coffee cart allows you to explore new demographics and try various sites to see which places produce the most revenue. You can also decide to open during special events in your region and venture into other businesses regularly.
The flexibility of a coffee food truck business allows it to serve as a business trial. It will enable you to experiment and validate products, business models, price ranges, locations, and many more. With this, you can easily adjust your business to ensure maximum profits and establish ways to cut unnecessary expenses before committing to something permanent.
3. Non-Seasonal
Coffee is a non-seasonal beverage as people consume it every day, regardless of the prevalent weather. Some businesses, such as ice cream trucks, mainly operate during summer and are closed during the cold seasons. However, the urge and the love to take coffee remain the same on cold and hot days.
4. Requires Less Revenue for Advertising
A coffee cart acts as a moving billboard, and you will spend less on advertising especially with an attractive and compelling design. Creativity plays a significant role in food truck design, and thus you must ensure that your coffee food truck is well branded with a unique logo, memorable name, and design. With this, you will quickly grab the attention of potential customers in every location or event you are attending.
Traditional restaurants and other brick-and-mortar businesses are likely to spend between 5%-8% of their revenue on advertising. In addition, these businesses may further invest more to create brand awareness to maintain a huge competitive edge over their competitors.
Build Your Coffee Truck with Legion Food Trucks
Creating a fully custom, top-of-the-line coffee truck can be challenging and frustrating, especially if you are new to the food truck industry. You might also face challenges obtaining licensing and permit approvals from the local authorities.
Fortunately, Legion Food Truck can handle everything on your behalf, including customizing your truck to your exact needs and also helping you get your business registered. Contact us today to learn about how we can help you customize your coffee food truck.
