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Research Outline
Prepared for Melissa H. | Delivered October 4, 2019
U.S. Food Truck Operations
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Goals
To obtain information on the costs, requirements, best practices, potential partners, and activations of food trucks in the U.S. for the purposes of exploring market entry and brand strategy.
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Early Findings
Preliminary research found information on initial and ongoing costs and staffing needs for a food truck. Further research will be necessary for the remaining aspects of running a food truck.
INITIAL COSTS
Initial costs for a food truck range from
$30,000
for a used truck to upwards of
$100,000
for a new truck.
The average initial cost for a food truck is between
$70,000 and $80,000
, but this would likely be for a gently used truck.
Typically, the cost of a new truck is "
not often worth
the extra premium" and startup costs are going to vary based on the type of food the truck will offer.
Food Truck Empire offers the following initial cost estimates, but warns the actual costs will be based on where the truck is located, what type of truck is purchased, and the type of food offered:
The truck, wrap, and equipment:
$25,000 — $100,000
Initial product inventory:
$1,000 — $2,000
Permits and licenses:
$100 — $500
(varies significantly based on location)
Website:
$0 — $5,000
(varies significantly depending on features)
Facebook/Twitter —
Free
Register/POS:
$200 — $1,000
(based on system chosen)
Uniforms/shirts:
$0 — $1,000
Paper products:
$200 — $300
Cookware:
$1,000 — $2,000
Misc.
e
x
p
e
n
s
e
s
:
$500 — $2,000
Fire extinguisher:
$100 — $300
Total:
$28,100 — $114,100
KNOWN ONGOING COSTS
Food Truck Empire offers the following ongoing costs for a food truck, but notes that the actual costs will vary based on needs, location, and type of truck/food:
Commissary:
$400 — $1,200
per month
Phone/internet:
$100 — $200
per month
Fuel:
$500 per month
(varies significantly based on travel frequency)
Repairs:
$1,000 per month
Total: $2,000 — $2,900 per month
UNKNOWN ONGOING COSTS
Food Truck Empire states that the following costs are too variable to estimate without knowing food costs, frequency of operation, number of employees, and minimum wage:
Labor
Food and beverage
restock
Paper product restock
STAFFING
Most food trucks can hold between two and seven employees; however,
59%
of food trucks only have 2-3 employees in the truck at any one time.
Another
27%
have 4-6 employees in the truck at any one time.
The number of employees will differ
based on service needs
. For instance, if a food truck only heats and serves food, there will need to be employees at the restaurant who prepare the food and employees in the truck to heat and serve the food. If the truck prepares, cooks, and serves the food, staffing needs may be higher in the truck.
Positions
that will need to be filled in a food truck are service window attendants, managers, chefs/cooks, kitchen workers, and a driver (some areas require a separate driver for food trucks).
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