The simple answer to this question is YES. It’s a great way to build a brand and make money. However, it’s not the answer you’re looking for. The food truck industry is exploding because it’s cheap, quick, fun to build your dream, and still profitable.
Profitability Factors
“How much money a food truck makes in a day” is a difficult question to answer. There are plenty of variables that go into the amount a food truck will make. Here are three key factors:
- Location: In an area with high traffic, a food truck can make a lot more money than one in a low traffic area.
- Quality of the Food: If a truck is making great food, customers will return.
- Price of the Food: Cheaper food means more people will be willing to buy it.
The money you can make from trading a food truck depends on the location and the market you are trading in. Food trucks can be traded at weekend markets, on land surrounding office buildings, at music festivals, and sporting events. The amount you can earn varies based on your trading hours, the number of customers you can attract, and footfall in the area. However, a successful food truck can earn up to $120,000 a year if it’s popular in the area where it is parked.
Starting a Food Truck Business
To help potential food truck owners figure out how much they can expect to make, we’re exploring a few critical elements of the business: startup costs, monthly costs, profit margins, and the pros and cons of the food truck model.
Startup Costs
- Getting a Truck: Used food trucks are often already converted to mobile kitchens or were purpose-built for mobile food prep.
Why Food Trucks Can Be Profitable
- Lower Initial Investment: Compared to brick-and-mortar stores, food trucks require less of an initial investment.
- Multiple Trading Locations: You can trade at various events and locations, offering great flexibility.
- Popular and Trendy: Food trucks are currently on-trend, attracting customers curious about this dining concept.
- Scalability: Starting small allows you to control your brand and scale your business.
- Lower Overhead: Save on staff, facilities, and other expenses compared to a traditional restaurant.
Making Good Money with a Food Truck
On average, a food truck in a larger city or metro area can make anywhere from $20,000 to $50,000 per month in sales. Those in smaller cities and rural towns tend to earn between $5,000 to $16,000 per month. Food trucks can be a fantastic investment with lower ongoing costs compared to restaurants. You skip costly rent and bills associated with a brick-and-mortar location. A well-run food truck can make $23,000 to $100,000 or more per year and provide the mobility to change locations and test new markets.
Initial Costs
Initial costs for a food truck include purchasing or leasing the vehicle. Here’s the breakdown:
- Used Cooking Trucks: $20,000 to $40,000
- New Custom Food Trucks: $100,000 to $150,000
- Additional Startup Costs (Equipment, inventory, licensing): $20,000 to $60,000
- Total Launch Costs: $50,000 to $200,000
Many food trucks generate $250,000 to $500,000 in annual revenue. Owner’s salaries vary widely, from part-time work at $24,000 to $150,000+ for running a popular truck. Consider competition, regulations, operating costs, and your commitment level before investing. Conduct market research and create a business plan. While success isn’t guaranteed, food trucks can be a mobile, flexible, and scalable entry into the food service industry, with lower risk than opening a restaurant.