How To Start A Food Truck Business

Do you love food and travel? Do you like to serve people high-quality food items? Do you have a good idea for the right location? Can you keep up with the demands of a hungry crowd?

If so, then you might be interested in learning how to start a Food Truck Business.

Brainstorm Your Food Truck Business Idea

In starting any business, one of the most important things is to put together a well-written plan. Laying out exactly what needs to happen for you to be successful helps put everything on the table so you don’t miss anything.

You can use some free great resources like Xmind or MindMeister to brainstorm your business strategy.

Determine Who Your Customer Is And Find A Location

Next, you will need to focus on your target market – who is your audience?

The beautiful thing about the food truck industry is your business is on wheels. Consider busy office or industrial parks where people are on the go and seeking a quick meal.

Local events, trade shows, breweries, and arenas are great places to post your food truck.

The good news is that you are mobile and will have the ability to travel to multiple locations and special events. Ultimately, you will need to figure out the best spots in your local area.

[photo credit: Ted Eytan]

How Big Is The Mobile Food Service Industry?

In other words, that means more and more Americans are dining with Mobile Food Service Vendors.

[photo credit: COD Newsroom]

Why Starting A Mobile Food Business Now Is A Good Idea

Simply put, more and more Americans are opting for better choices when it comes to fast food on a budget. This trend indicates that consumers want good food and they want convenient access to quality food vendors in close proximity.

Here’s a neat little infographic we created to outline some of the main points of starting a food truck and the industry itself.

Food Truck Business Facts

2015 Food Truck Industry Data

National annual projected revenue: $1.2 Billion

Average range of startup costs: $40,000- $150,000 (Option of New or Used Truck)

Total number of food trucks in U.S.: 4,000+

Average revenue generated per food truck: $250,000 – $300,000

Average spending per order at a food truck: $12.40

Average cost of new food truck: $75,000-$90,000

Average 2015 Food Truck Startup Costs: Average Cost

Food truck (includes wrap and equipment): $85,000

Initial product inventory: $1,500-$2000

Permits and licenses: $300-$500

Website: $100-$500

Register / POS: $250-$500

Uniforms: $250-500

Paper products: $150-$250

Misc. expenses: $500-$1000

Pots, pans, etc.: $1000 – $2000

Fire extinguisher: $100-$200

Total Estimated Startup Cost: $80,000 -$100,000 (with New Truck)

Food Truck Business Ideas

Modern technology such as Facebook, Twitter, Snapchat, Instagram and cell phone messaging have allowed food truck vendors to alert potential customers to their locations. It also allows them to develop a loyal following in their community.

It’s not just for hotdog vendors anymore. Now, patrons can dine on fancy cuisines such as gourmet Tacos, Sushi, and other exotic selections.

While you can always go with barbecue, hamburgers or sandwiches, you’re going to have to separate yourself from every other food truck. There’s literally hundreds of food truck recipes, so be sure to think outside the box for something that is tasty and your patrons will enjoy.

Starting A Food Truck Business? Here Are Some Ideas

How about Asian cuisine?

[photo credit: Rhona-Mae Arca]

[photo credit: Jennifer]

[photo credit: MannaFoodTruck]

Or Mexican cuisine?

[photo credit: Memphis CVB]

[photo credit: Kim]

[photo credit: Jason Lam]

Or maybe a dessert truck is more up your alley

[photo credit: stu_spivack]

[photo credit: Chris Chen]

Struggling With What To Name Your Food Truck Business? Here Are A Few Ideas:

Mobile Munchies Lunch Gourmet

Lunch 2 Go Mike’s Mobile Deli

Super Truck Lunch Gourmet Lunch on the Run

Dolly’s Lunch Truck Lunch Box on the Go

The Lunch Box Mighty Fine Foods

Mr. Grub Hub Dr. Lunch

Speedy Gourmet Got Lunch?

Galloping Gourmet Lunch Lovers

Big Man’s Lunch Box Yucatan Lunch Stand

The Yucatan Food Stand Lucky’s Lunch Truck

Luke’s Lunch Box BBQ 2 You

The Lunch Truck Chef’s Lunch Box

Fantastic Food Fabulous Foods 2 You

Momma’s Mobile Menu Have Food Will Travel

Wheels & Meals Rolling Gourmet

YouTube Videos

Sources:

http://www.moneycrashers.com/how-to-start-food-truck-business-plan/

http://foodtruckr.com/2013/10/what-i-wish-id-known-before-starting-my-food-truck/

http://articles.bplans.com/beginners-guide-launching-food-truck-business/

http://foodtruckempire.com/

http://openforbusiness.opentable.com/tips/how-much-does-a-food-truck-cost/

http://www.ibisworld.com/industry/food-trucks.html

http://mobile-cuisine.com/trends/2015-food-truck-industry-statistics-show-worth-of-1-2b/

References

Write A Successful Business Plan On Your Own (Money Crashers)

Start a Business for $200 or Less (Money Crashers)

Five Businesses To Start With $200 (Money Crashers)

4 Things Your New Business Must Have (Money Crashers)

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Ali Walter

Solid article overall! However I do have to strongly disagree with the startup costs in the infographic. It is very misleading for anyone to think they can start a viable food truck business for anywhere close to $5,000 (even without the truck costs). And this is where I see a lot of folks going wrong…hence why so many food trucks close and the owners lose everything.

Breaking it down:
The truck alone should costs a minimum of $50,000 for a decent truck that won’t send you screaming to the bank or losing valuable clients every time it breaks down. But that’s bare minimum. I highly suggest budgeting to spend anywhere from $75-$125k on a food truck that’s going to KEEP you on the road and be sustainable for years to come. Every client I’ve worked with that cut corners with this has said how much they wish they would have known better and just spent the extra money.

Now, whether you pay for the vehicle up front or just do a down payment and loan will determine how much physical cash you need for startup costs. But even with just a down payment on a truck, startup costs for the business itself are well beyond $5,000 if you want to create a food business that MAKES MONEY.

Bootstrapping a business as risky as a food truck is NOT a good idea. Cut corners and you get what you pay for. Beyond that, you MUST have at least 3 months (I strongly recommend 6 months) of operating capital saved up at the launch so when ish hits the fan (because it will), you’re not scrapping for pennies – unable to cover payroll, food costs or that generator that blows….or worse…feed your own family. The startup costs covered in this article don’t even mention operating capital, which is crucial. Every client that’s come to me struggling, failed to plan for this.

Food trucks CAN be a lower cost investment than launching a restaurant, while they can also be more expensive. It all goes back to what you’re wanting to create with the business, and how strong you want to enter the market to become a dominant truck. Some of my clients have startup costs upwards of $250,000 on their food truck launch. Others are closer to $50,000. But bottom line is startup costs are nothing close to $5,000 to launch a viable, sustainable and lucrative food truck business.