The food truck business is a lucrative one considering how popular it is. The business is a good idea if you are looking to start a low-cost business that will not require you to inject a lot of seed capital. But food trucks still are not cheap, with the average cost of a food truck ranging anywhere between $50,000 to $180,000 depending on where you buy your food truck, kitchen equipment, and location.
In this article, we’ll break down the different factors that can influence the cost of a food truck to give you a better idea of what you can expect.
Breaking Down the Cost of a Food Truck
The costs you incur in starting the food truck business vary just like any other business depending on your locations and the quality of products you choose to stock for your business. However, the following are some of the basics that you will include in your startup. The business has both fixed costs and variable costs.
Fixed costs
Fixed costs in the food truck business include purchasing the equipment and the licensing fees at the start of the business. The equipment you have to purchase includes; the truck, a vinyl wrap, and kitchen equipment for the truck. You will also have to register your point-of-sale system and incur costs on other legal requirements that might vary based on your location. You might incur additional costs on items such as uniforms and setting up a website.
Variable costs
Variable costs in the food truck business include the expenses you incur while running the business. The cost depends on the business you transact in a day. They include expenditures such as commissary, fuel, labor, restocking your food and beverages, paper products, and truck maintenance.
Additional Food Truck Costs
To ensure that you have everything in your startup budget, you need to consider miscellaneous expenditures when starting the business. It would help if you had a startup capital that could run your business in the first few months before the business begins generating returns. Additional requirements to factor in your budget include renting additional cooking space, hiring a social media advertiser, or extra parking space from time to time.
Food Truck Financing Options
It would help if you got financial aid for your new food truck business. The financing will help ease the startup cost. Financing the food truck will also provide you the opportunity to invest your startup capital in improving the quality of other business aspects such that you get to deliver the best service to customers.
Financing your food truck business requires that you develop a business plan. Coming up with a plan gives you a chance to consider your menu, your target customers, and the marketing approach that you intend to use. You need to conduct research and capture all market demographics before launching your food truck business.
Get Your Free Food Truck Quote
The average price of a food truck will vary depending on factors such as size, equipment, location, inventory, and other expenses. To get a free food truck quote and receive a rough estimate of your food truck costs, use our interactive food truck builder today. And if you need help with financing, you can download and submit your finance application through our website.
