Food Truck Budget Plan
How to Make Your Food Truck Business Budget-Friendly
Like any other small business, the food truck business needs a realistic budget plan. This plan should include the initial investment as well as the upcoming expenses of your mobile business. Below are the main categories of the investment you need in order to run your business:
Your first and the most expensive item in your budget plan is the purchase of the food truck. Depending on the type of food truck you choose, the price can range anywhere from $70 000 and up. This amount will include the cost of the truck as well as build of the commercial kitchen, water system, exhaust system, appliances, counter top and shelving.
The cost of permits are additional and varies from location to location.
The daily expenses of the truck are included in the cost of goods sold and expenses of operating your food truck.
- Cost of Goods Sold
In order to prepare your cuisine, you need to buy ingredients and necessary supplies to serve the food. Restaurant specialists consider a healthy gross profit margin of around 60-70%. This means that if you charge $10 for a hamburger, your food costs should be around $2.50, leaving you with a $6 profit. It is very important to keep an eye on fluctuating food costs and food waste, in order to maximize your profit.
- Food truck insurance and maintenance
Like any other vehicle, your mobile unit needs to have proper license and insurance. The type of license required depends on the weight of the vehicle. Many vehicles can be driven with a standard full license, but heavier weighted trucks may require a CVOR or other special license.
- Fuel for your Food Truck and generator
The amount of fuel used for the generator depends on the appliances and the hours of operating of the food truck. Keep track of daily gas costs to get an average amount.
- Location Costs
Whether you have a fixed location or focus on special events, you will have location costs. Thankfully, these come nowhere near the price of rent for a brick and mortar location! Popular festivals and events will likely have higher vendor costs, but make sure you are applying for events that work well for you.
- Hiring Workers
Hiring reliable and honest staff is not always an easy task. Establish how many staff you require and build yourself a team that works for you. Determine what you will pay them and for how many hours a week to figure out your labour costs.
- Digital Marketing
Social media (Instagram, Facebook, Twitter) is a powerful marketing tool for food truck owners. Investing time and money results a positive effect in a food truck business and ensure its success. A few promoted posts on Facebook might be a great idea to create awareness around your new food truck!
Food truck budget plan is a critical part of your business plan. With planning ahead of the food truck budget you will have the right solutions if they arise. We at Venture Food Trucks are dedicated to customer service excellence. If you have a question please give us a call at 1.855.405.2324