Have food trucking-related jobs ever come to your mind, or even you are looking forward to working in the food trucking field? Then you may ask this question: how profitable food trucks are?
Food trucks are a growing business, especially for those who want to have the independent choice for what to make, what, and where to sell.
According to ibisworld.com, in 2020 there are 25,476 Food truck businesses in the United States. So does food truck business worth it?
How to operate a Food Truck Business?
Here are some tips for you to have a successful food trucking business.
1 Choose the type of food
First, make research for the market to see what type of food has the most demand in your region.
When choosing the type of food, be certain that it appeals to both you and your community and then determine which area you will focus on.
2. Buy a Truck
Food Trucking consists of two parts, which indicate that besides the food you need a truck to operate your business, so look for a truck that has been previously owned and recently updated.
It should contain a kitchen that complies with all health code regulations. Actually, the average cost of such a vehicle is from $40,000 to $100,000.
3. Get a license and an insurance
See your local government office to determine which type of business insurance you need to get. This could cost you between $500 and $3000 per year, you will need an additional license to serve and sell food in addition to a valid parking permit.
4. Be ready to pay some expenses
Before starting your food truck business, you need to make a budget for the first year of operation accurately. You need to put in your consideration that you may not gain money for a few months or even a year into your venture.
Here are some expenses that you need to pay for before launching your business:
- Start-up fees, including the truck and the graphic design for the exterior of the truck, as well as the kitchen equipment.
- Employee’s salaries if you don’t want to operate the work yourself or you are looking forward to hiring workers.
- Annual insurance fees.
- Gas and other vehicle maintenance costs.
5.Market your business
You need to promote your new business to be a success business operator. Consider using social media, your community newspaper, or local online websites. If you don’t plan to be in just one location all the time, you must be able to advertise where you are and for how long.
6. Manage your finances well
If you want to operate a profitable business, then you need to be aware of your finances.
When you get your funding, be certain to protect it. Always pay back your loan payments on time so that you can maintain a good credit history. As you need a good credit to get your initial round of financing, also you need to keep it to get additional financing in the future.
What are the best food truck cities in the United States?
You may be concerned about the top cities in the United States in the food trucking industry, check the following list that shows you the 12 best food truck cities in the United States:
- Orlando, FL
- Portland, OR
- Austin, TX
- Washington, DC
- Minneapolis, MN
- Denver, CO
- Miami, FL
- Atlanta, GA
- Tampa, FL
- San Francisco, CA
- Seattle, WA
- Honolulu, HI
How much do Food Trucks Make a Year?
One of the most common topics you may ask about maybe the food trucker average salary, actually there are many factors affect how much money the average food truck makes.
The food truck operator’s average salary is about $100,000 per year according to USAToday.com.
Revenue averages are different for professional food truck operators; the average revenue varies from $5,000 per month to over $20,000. It is a good salary compared to some popular jobs like the truck driver or Uber driver…
According to FoodTruckEmpire.com, they made a recent survey in 2017, this survey made on over 200 food vendors in the United States mainly California, Florida, New York, Oregon, and Texas. This resulted in 85% of respondents making an annual salary of over $100,000.
And, of those mentioned, after owning and operating a food truck for at least two years, half of them was reported a full-time income of more than $150,000.
When compared to another report done by USAToday.com in 2014, the average annual earning was reported less than $65,000.
What is the food truck that makes the most money?
Some factors detect the kind of food that makes the most money food should be popular, convenient, affordable, and tasty food will often make the most money.
Think of typical fast food, including sandwiches, hamburgers, hot dogs, French fries, onion rings, fried chicken, tacos, and pizza.
For you, as a food truck owner, it is better to have not less than six and not more than twelve menu items. This allows you to maintain a higher standard of quality. And mainly good food is what keeps customers come back to eat more from your food truck.
Can you start a food truck job with no money?
When you have an intention to start a food truck business you need to have an available fund. But how to start the business when you have no fund? You can try to search for a partner who already owns one.
Make a rental agreement with him for a set amount of time. If you find out that this is not a suitable job for you, you can get out of it easier than if you owned the truck yourself as well as costs are lesser.
Why do Food Trucks Fail?
There are two main reasons for why food trucks fail; the first one is due to high expense costs, while the other one is the lack of start-up capital.
Mainly those at the beginning of their operations, they may budget inappropriately. Therefore, cannot maintain the business.
As a food truck operator, you should produce positive earnings after all expenses are accounted for more than negative earnings in order to maintain a successful business.
Some Statistics you need to know about the Food Truck Industry
Food truck leads to great gain fares that differ from fast-food establishments, as people prefer the convenience of being able to walk up to order something to eat.
As reported by the National Restaurant Association (NRA), individuals aged between18 to 34 years represented the highest amount of sales, preferring to purchase a meal from a food truck, rather than visit a fast-casual or fast-food restaurant.
Only 30% of individuals over the age of 65 had eaten at a food truck, or visited one, as they preferred it rather than fast-food restaurants.
According to Statista Research Department In 2015, the amount of food truck sales was more than $856 million. This value includes the following:
- Dry snack providers.
- Beverage providers.
- Full-service mobile kitchens.
It is expected that food truck revenues in the United States will approach $1 billion annually by this year (2020).
Here is a list of annual income averages that reflect the revenue potential of a food truck operation.
- 08% reported earnings of $100, 00 to $149,000 per year.
- 4% of food truck owners earned $150,000 to $199,999 per year.
- 52% earned over $200,000 per year.
- 76% reported average earnings of $50,000 to $99,999 annually.
- Only 3.59% reported annual incomes of less than $50,000.
What are Start-Up Costs and Purchasing a Food Truck?
A food truck requires less investment and operating costs when compared with the costs of making a food restaurant, the thing that makes food trucking business opportunity highly attractive for startup entrepreneurs.
Some business owners prefer to buy a new food truck full of the needed equipment, while others may search for reasonably priced food trucks. Here are some things you need to put in consideration as startup costs when starting this business:
- $30,000 and up for food truck with appliances, propane, and electric hook up.
- $2,000 to $5,000 for truck brands including advertising and theme to the exterior of the truck
- $1,000 for permits and licenses.
- $1,000 for the cash register.
- $2000 for Initial food supply and beverages including condiments and seasonings.
- $500 for uniforms or branded t-shirts.
- $500 for signage for menu and standing chalkboards.
- $1,000 for cooking utensils, frying, and bake ware.
- $500 for disposable flatware, paper plates, and cups for the beverage.
- $300 for the fire extinguisher.
- $150 for First Aid Kit.
- An average of $150 per month for vehicle insurance.
- $150 per month for telephone and internet.
Finally, after knowing all this information about the food trucking industry, did you become interested in establishing your own food truck business? Or in other words, do you think that the food truck business is profitable?