21 Important Food Truck Statistics 2023 : Analysis, Trends, And Projections

The average cost to start a food truck business is $93,495 according to POS Bistro. Based on that growth rate, I am sure there are many aspiring food truck entrepreneurs out there that are considering starting their own food truck business. So I wanted to write an article that would answer all of the key questions I would have if I were starting my own food truck business.

Customer Cupcake Event Ideas

A food truck with a stronger networking base and brand recognition can yield a better income. Cross promoting with local businesses, networking with event organizers, memberships with food truck associations, use of social media for brand promotions can go a long way in boosting revenue. The food truck annual income is significantly impacted by the location. Food trucks situated in business districts, college areas, shopping districts, festivals, farmer’s markets, and various other high-traffic locations fetch higher profits. Strategic positioning plays a pivotal role and one must keep in mind suitable hours of operation as well.

An Example Revenue & Cost Breakdown For an Average Food Truck

Your costs and sales are likely to fluctuate, and you’ll probably spend something on vehicle repairs, equipment replacement, or some other unforeseen expenses in those four years. Complying with regulations and maintaining licenses and permits can be one of the most expensive elements of running a food truck—but regulatory costs can vary widely based on location. Data from today’s market suggests that it could cost anywhere between $50,000 and $200,000 to purchase a food truck.

The Complete Breakdown of Food Truck Operation Costs (2022 Update)

• Portland, for example, is considered the best place for food trucks, as permits are cheap and restrictions are few.
• Conduct your own back of the napkin analysis to estimate whether or not you’ll be able to cover your monthly expenditures.
• Note that the operating costs above exclude other costs such as potential bank loan interest expenses and amortization and depreciation costs which you should also take into account.
• You’ll pay a percentage of every transaction to your POS company, so any discount could really add up.
• This role involves orchestrating a mobile dining experience, where the owner oversees the creation and delivery of food that not only satisfies hunger but also brings a unique dining concept to various locations.

Assuming the average order value is $10, your break-even is 4,250 orders per month. In other words, you make profits once your food truck serves 4,250 customers per month. We’ve included below the illustrative profit-and-loss of a food truck (from our financial model template for food trucks). With the food truck ready, the next item to think about should be the kitchen equipment. If you decide to purchase a new food truck, all the essential equipment will be there (and included in the truck costs above).

Want to start your own food business?

We encourage you to download the food truck cost spreadsheet to estimate how much starting your vehicle would cost. Remember that every city / state will have different laws and requirements so your cost will vary. This spreadsheet is a great way to get you in the ball-park for a cost estimate. If you’d like to further calculate your own food truck operation costs, try using our food truck calculator today. In the next section, we’ll explore strategies to enhance sales and reduce the time it takes to reach profitability.

Other common ways to fund a food business include cashing out retirement accounts like 401Ks, putting the expenses on a credit card, or crowdfunding. Before you buy a food truck or finalize your menu, you should run through an exercise to determine how much your food truck or trailer would be able to generate in sales. The following process will allow you to project your food truck sales for your specific concept, food truck design and menu. I was able to calculate this by simply taking the total industry revenue of $2.7 billion and dividing by the 35,500 food trucks in the U.S. The food truck industry generated $2.7 billion in annual sales according to Zippia. Even though this is an ongoing cost, we include it in startup costs because you might need to pay for the first year or 6 months up front when you start.

The average food cost for a food truck is between 25 and 38% of revenue according to Mobile Cuisine. The average food truck in the U.S. pays $28,276 on permits, licenses and ongoing legal compliance according to Food Truck Nation. Even purpose-built food truck designers must overcome the fact that at their core, trucks aren’t designed to be food truck accounting kitchens. Wear and tear can stack up fast, a fender-bender could disrupt business for multiple days, and you increase your risk of unforeseen mechanical problems as you rack up mileage. IBISWorld also reports 9.9% annual growth over the last 5 years, signifying that the food truck industry is thriving and is unlikely to slow down very soon.

• CDL drivers may wish to study for and schedule these additional modules, known as endorsements.
• In the food truck business, you earn more when you frequently get out to serve.
• While this amount can change based on the qualify of the ingredients and other factors, most businesses should start with a 30% modifier.
• By doing so, you can increase how much revenue your food truck makes.
• For example, Gourlie invested $41,200 in his business before serving his first meal.
• With more than 1,500 miles of interstate routing throughout the state, prepare yourself for miles of adventure.
• The average pay range for a Food Truck varies greatly (by as much as $5.29), which suggests there may be many opportunities for advancement and increased pay based on skill level, location and years of experience.

CDL Eligibility in New York

Since his truck is in an area with a higher cost of living than most (Seattle), these sales figures could be a bit inflated. See how much revenue you can expect to generate and learn ways to maximize your earning potential. We’re including below the indicative cost structure a company with 4 food trucks could have ($1.8 million annual turnover and 10% profit margin).

This is where we publish tips on starting a mobile food business, building a food truck, and keep you up-to-date with news from our customers. Food trucks are super popular, and demand for these mobile kitchens is growing. In the United States alone, the food truck industry is valued at over $2 billion. What’s more, food trucks are growing 1.1% faster than commercial restaurants. Another insight took a man-on-the-street approach and asked food truck owners how much they made on their best day (via YouTube).

In the hustle and bustle of today’s fast-paced culinary culture, food trucks have emerged as a dynamic and vibrant sector of the food industry. They offer myriad eating options, from traditional street food to gourmet selections, at affordable prices. For those aspiring to enter this sector, a comprehensive understanding of the financial dynamics, specifically the https://www.bookstime.com/, is paramount. This article aims to take you through a detailed exploration of the same. According to Toast, most food trucks generate anywhere between $250,000 and $500,000 in annual revenue. Keep in mind that these figures don’t account for any expenses, so your profit will be less — but most likely still significant.