You might already have the permits you need with a used purchase. That saves time on your business. However, the warranties might be expired.
Leasing a Food Truck Business
Leasing a food truck business is another alternative. Research says some cities have commissaries where you can lease a food truck for around $4500 a month. You can also enter a lease-to-own program. The price range there is $3600 a month at the lowest to $3800 a month for a new truck.
Entrepreneurs should be careful about the prices for long-term rentals because they are high. Due diligence will help you find the best mobile restaurant.
Other Restaurant Startup Costs to Consider
Beyond buying the vehicle, there are other food truck cost additions. There are lots of other items to consider for your business. They include inspection and parking costs as well as food service permits and insurance. Here’s a breakdown of some of the money you’ll need to run this kind of business.
- Parking can cost anywhere from $250 to $2,000 per month. This, of course, assumes you don’t own plenty of space on which to park your food truck.
- Event fees can set you back $500-$1,000 for every event.
- Kitchen equipment, of course, is rather fundamental here. Unfortunately, not many trucks are sold with equipment stocked inside.
- Marketing could include a custom truck wrap. There are a a lot of food trucks out there. You’ll want yours to stand out and proudly pronounce your business.
- Putting together a customer base starts with marketing and a website. Consider email marketing too for a food truck business. A strong social media presence is going to help draw customers to your stand for special pop-up events, too.
- Payment options might include a POS system that can cost starting at about $50 a month.
We haven’t even talked about the food costs, too. That’ll all depend on what your truck serves. This type of mobile food restaurant also needs napkins, spoons, plates, and the like. That can cost up to $500 a month. The more unique the company, the more these costs will vary.
Is it better to buy a new or used food truck?
For many entrepreneurs, buying a new unit is an excellent idea. There’s a bigger startup cost at first, but you’ll save on costly repairs. Here are some of the advantages of getting a new truck.
- These can be customized to suit the needs of your target customers.
- You’ll get a polished, clean appearance with a new vehicle.
- There is no need to worry about big repairs and breakdowns at first.
- This type of mobile kitchen has good warranties.
There are a few disadvantages. For example, there’s a big initial investment. As well, customization takes a little longer. There’s more time to wait at first.
Buying a used truck has advantages and disadvantages too. For example, food truck owners note the kitchen equipment has already been installed. You’ll be able to use features like a serving window right away. These units cost less at first. That means you will need less money when starting a food truck. They might even have a pos system ready to go.
There are some disadvantages to buying a used unit. These include:
- These don’t last as long as a new truck.
- You can’t really be sure of the history and wear and tear.
- You might have a problem finding someone to make changes.
Buying a used or new unit comes down to how much money you have upfront to spend.
How much does it cost to run a food truck monthly?
There are monthly costs for this type of business. Here is some of the money that you need to set aside on a monthly basis.
Food truck and step van owners need to pay for the parking spaces they use in the commissary. That can cost anywhere from $1000-$1500 monthly. Maybe more in some locations.
You might need to rent a space to prepare the food you sell. Commercial kitchen space costs between $500-$1500 a month. Cooking gas and fuel for your truck can usually eat up $600 on a monthly basis.
Although they vary, maintenance and truck insurance usually costs upwards of $400 a month
Are food trucks a good investment?
This type of business is a good investment that has seen a good growth rate since 2015. However, you’ll need a solid business plan and the ability to manage food and expenses. It’s a good way for entrepreneurs who don’t have the money for a restaurant to get started.
Do food trucks make a lot of money?
Generally, you can make anywhere from $50,000-$200,000 by owning this type of business. Research says around half of the truck owners make at least $200,000 a year. Being a chef cuts down on costs when you’re starting this kind of business. That means more profit.
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