If you’re thinking of starting a food truck, you’ll need to factor in a lot of costs. From the cost of the truck itself to hiring employees and getting the right licenses and permits, there are a lot of expenses to consider.
But don’t worry – we’ve put together a detailed spreadsheet to help you track all your expenses. Continue reading for an overview of some of the key costs, or download the spreadsheet at the end of this article and get started!
Understanding the Food Truck Startup Costs
When starting a food truck, there are several startup costs that you’ll need to consider. It helps to factor a year’s worth of ongoing costs into your food truck business plan, as well.
The cost of starting a food truck can vary greatly, depending on the size and features of the truck, as well as the region in which you’re operating. However, most entrepreneurs budget between $30,000 and $100,000 for their startup costs. These costs vary widely based on the cost of the truck, equipment and cost of permits and licenses to do business in various states.
There are several key costs that you’ll need to include in your budget when starting a food truck. The biggest expenses are typically the cost of the truck itself, licenses and permits, employee wages, and food costs.
Let’s dive in.
Food Truck Costs and Equipment
The cost of the food truck itself is obviously a key expense. You’ll also need to budget for equipment like a refrigerator, stove, oven, and countertops.
The cost of a food truck can vary greatly, depending on the size and features of the truck. You can expect to spend anywhere from $40,000 to $150,000 on a new truck. Used trucks can be less expensive, but may require more repairs and maintenance in the long run.
In addition to the cost of the truck, you’ll also need to budget for equipment, such as cooking appliances, refrigeration units, storage containers, and more. This can cost between $5,000 and $20,000.
Licenses and Permits
In order to operate a food truck, you’ll need to obtain the appropriate licenses and permits. These can vary depending on your location, so you’ll want to check with your local government office. Some common permits include a business license, health permit, and fire inspection certificate.
This can cost between $200 and $5,000.
Hiring and Training Employees
As with any business, hiring and training employees is a key cost. You’ll need to make sure you have the right team in place to help run your food truck. Depending on your location, you may also need to provide food safety training for your employees.
If you’re planning on hiring employees, you’ll need to factor in the cost of training them. This can cost between $1,500 and $4,000.
POS System
A point-of-sale (POS) system is essential for any food truck business. This will allow you to track sales and manage inventory. There are many different POS systems available, so be sure to do your research and find one that fits your needs.
A POS system is a must-have for any food truck business. It can cost between $500 and $2,500.
Menu Items and Food Cost
Of course, you’ll need to factor in the cost of the food you’ll be serving. This includes both the cost of ingredients and any packaging or other supplies you’ll need. You’ll also need to consider the price of your menu items, as well as any discounts or promotions you offer.
Food costs are variable. The average range for food inventory and monthly food costs can vary between $3,000 and $15,000 per month, depending on the type of food you’re serving and the number of customers served per month. This includes the cost of ingredients and any packaging or other supplies you’ll need. You’ll also need to consider the price of variable menu items, as well as any discounts or promotions you offer, as these will affect your costs overall.
Commercial Kitchen Space
If you don’t have a commercial kitchen at your home or office, you’ll need to rent one. This cost can vary depending on the size and location of the kitchen, so be sure to shop around.
Commercial kitchen space costs are variable. The average kitchen is leased each month at a set price with an hourly rate charged on top of the monthly lease. Costs can range between $500 and $4,000 per month, depending on the location of the kitchen and the amount of time spent using the kitchen.
Insurance
Insurance is another important cost to consider when starting a food truck business. You’ll need to make sure you’re covered for things like liability, property damage, and product liability.
You’ll need to get insurance for your food truck business. Insurance packages can cost between $2,000 and $4,000 per year.
Marketing
You’ll also need to budget for marketing and advertising expenses. This can include things like creating a website, designing menus or flyers, and paying for online or print ads.
You’ll need to spend some money on marketing to get the word out about your food truck business. This can cost between $500 and $5,000 per month.
Marketing costs are variable, however, you can lower costs by using online marketing strategies.
Try Our Spreadsheet
Starting a food truck can be a lot of work, but we’ve got you covered with our cost spreadsheet. This helpful tool will allow you to track all your expenses in one place. Just enter your costs into the spreadsheet and you’ll be able to see at a glance where your money is going. You can also use the spreadsheet to compare prices and find ways to save money.
Food Truck Start-Up Costs Spreadsheet – Google Docs
Food Truck Start-Up Costs Spreadsheet – PDF
Conclusion
Starting a food truck is a great way to enter the food industry. However, there are many costs to consider before you get started. From the cost of the truck itself to licenses and permits, there are a lot of expenses to periodically track. Our cost spreadsheet can help you stay organized and on budget. Simply enter your costs into the spreadsheet and you’ll be able to see at a glance where your money is going.