When it comes to starting a restaurant, food truck or food trailer business, there are many variables to consider.
Each option has its own unique set of pros and cons, and it can be difficult to decide which is the best fit for your business. In this article, we will compare and contrast restaurant businesses, food trucks and food trailers in terms of startup costs, operating expenses and other key factors.
What are the Differences between a Restaurant vs. a Food Truck vs. Food Trailer?
Let’s look at how restaurants, food trucks, and food trailers differ from each other.
Restaurant Business
A restaurant is a business that serves food and drinks to customers. Restaurants can be sit-down establishments with waitstaff, or they can be fast-food eateries with limited seating. In terms of staffing, a restaurant will typically require more employees than a food truck or food trailer. Restaurants also tend to have higher startup costs, due to the cost of kitchen equipment and furnishings.
Operating expenses for restaurants include items such as rent, utilities, food costs, salaries and wages, and marketing expenses. Restaurants typically have higher overhead costs than food trucks or trailers, and as a result, they typically have lower profit margins.
Food Truck Business
A food truck is a mobile restaurant that sells food from a vehicle. Food trucks can be equipped with a full kitchen, or they can simply serve pre-packaged foods. In terms of staffing, food trucks typically require fewer employees than restaurants. Food trucks also have lower startup costs, as they don’t require as much kitchen equipment or furnishings. However, food trucks may have higher ongoing costs than restaurants, depending on monthly costs for gasoline, repairs, and other truck-related expenses.
Food Trailer Business
A food trailer business is a smaller version of a food truck business. Food trailers are typically towed behind a vehicle, and they can be equipped with a kitchen or simply serve pre-packaged foods. In terms of staffing, food trailers typically require fewer employees than restaurants or food trucks. Food trailers also have lower startup costs, as they don’t require as much kitchen equipment or furnishings. However, towing a food trailer will increase the cost for gasoline and trailers may require repairs, which can add to expenses overall.
How do Start-up Costs Compare between Restaurants vs. Food Trucks vs. Food Trailers?
Now that we’ve reviewed how restaurants, food trucks and food trailers differ from each other, let’s compare their start-up costs.
Restaurants
The restaurant industry has high startup costs due to the cost of kitchen equipment and furnishings. The average restaurant start-up cost is from $95,000 to beyond $500,000.
Food Trucks
The average food truck start-up cost is between $30,000 and $50,000. This includes the cost of the truck itself, as well as kitchen equipment and furnishings. However, there are many factors that can affect the total cost of starting a food truck business.
Food Trailers
The average food trailer startup cost is between $10,000 and $20,000. This includes the cost of the trailer itself, as well as kitchen equipment and furnishings.
Additional Considerations
There are a few other things to consider when determining whether to start a restaurant, food truck or food trailer business.
Staffing
As mentioned earlier, restaurants typically require more employees than food trucks or food trailers. Restaurant staffing positions include roles such as cooks, dishwashers, servers, and managers. Food truck and food trailer staffing positions are typically limited to cooks and servers. Food trucks and trailers can be operated by a smaller staff, which can significantly save on labor costs.
Staffing for food trailers can be a simpler process than staffing for restaurants. Food trailers typically require fewer employees than restaurants, and most of these employees can be hired part-time. The jobs that are typically needed in a food trailer are cooks, cashiers and servers. It’s important to have a manager on staff who can handle administrative duties, such as bookkeeping and HR.
Continuing Costs
Restaurants have higher continuing costs than food trucks or food trailers. This is due to the fact that restaurants have higher overhead costs, such as rent and utilities.
The average monthly continuing costs for a restaurant varies widely and can range from $5,000 to $15,000, depending on rent, utilities, food costs, salaries and wages, and marketing expenses. Restaurants typically have higher overhead costs than food trucks or trailers, and as a result, they often have lower profit margins.
Food trucks and trailers have lower overhead costs, as they can be operated from a smaller space. The average range of monthly ongoing costs for food trucks is between $1,000 and $3,000. This includes costs such as rent, utilities, food costs, salaries and wages, and marketing expenses.
Continuing costs also include:
-Gasoline
-Repairs
-Truck Insurance
-Tow Truck Fees
The continuing costs for food trailers are similar to food trucks.
Conclusion
When deciding whether to start a restaurant, food truck or food trailer business, there are many things to consider. Each option has its own unique set of pros and cons. Ultimately, the choice of which type of business to start depends on your specific needs and goals. So, do your research and decide what option is best for you.