Opening a brick-and-mortar hotel is an option to consider, but most people find it too risky. In this era, you do not have to pay the building rent, deal with the dining room’s upkeep, have various insurance covers, or hire more workers. Since the initial startup is high, you may end up losing a lot more. With so much competition in the industry, is a food truck worth it? How much can you make in the food truck business? The reality is that in hotbed cities, food trucks rival restaurants, some making thousands to millions of dollars per year.
How much does the average food truck make?
Food truck revenue can vary depending on a lot of factors such as:
- Your location
- Your menu items
- Your overhead costs
- Parking fees & fines
According to some sources, food trucks can make up to $500,000 annually in gross revenue. But that doesn’t take into account the operating costs mentioned above.
What is the average food truck salary?
A survey was carried out on 300 food truck vendors who worked full-time. They were offered a list of only five options of annual revenue estimates to select from. They were required to choose the option that closely signified their annual revenue in the previous year. Each one reported income from only one truck. All the respondents were in operation for more than two years. The results of the survey were as follows: 48 vendors made over $200,000, 67 made $150,000 – $199,999, 76 made $100,000 – $149,999, 24 earned $50,000 – $99,999 and 8 vendors earned less than $50,000 annual gross income.
In the food truck business, you earn more when you frequently get out to serve. If you concentrate on dinner and lunch, you can make more money as opposed to serving breakfast only. If you sacrificed to work on holidays and weekends, your earnings per year would increase than if you decided to rest on those days. As a truck owner, you will also need to attend more events to make more revenue.
Cost of Starting the Food Truck Business
Opening a food truck business and keeping it running is not cheap. There are maintenance costs and licensing costs to put into consideration. If you carve out a specific niche within the right market, you can certainly make a good living in this industry. From the pushcarts and chuckwagons, which served city workers and cow-folks after and during the civil war, food trucks have become a $2.7 billion industry. Today’s mobile eateries have some unique and innovative menus. The food trucks business is one of the best first commercial real-estate investments for individuals who know how to make delicacies and manage the expenses that come with it. A food truck does not cost too much to open, but the biggest expense is the truck itself. The truck ranges from $15,000 – $100,000.
Building a Profitable Food Truck Business
Food trucks can either make or break you. You should keep a very tight rein on the costs. Ensure you know your break-even cost up via the supply chain. This is because of the various constituents of the system such as Supply and Distribution and Food and Manufacture where any loss in one of these will add up soon. Starting a food truck business is worth the investment. Legion will take care of all the stages involved: building and designing your food truck, handling permissions, and eventually having your food truck working. Contact us for more information on the food truck business.