Food truck is a truck that is modified to become a mobile kitchen and serve food. Right now, there’s actually a trend for it mushrooming in the US and becoming quite popular. A lot of entrepreneurs are opting for food truck business since buying a brick-and-mortar restaurant is a lot more expensive than its mobile counterparts. Besides, the menu is totally customizable and up to them on what to offer.
Food trucks can be as healthy as they wanted to be like serving dishes straight from https://offerweightloss.com/ or as mouthwatering such as those shared across social media sites. But just before you start to launch your own business, there are few things that you have to be mindful about. This is none other than the funding needed to raise such business.
Cost of Opening a Food Truck Business
There are several factors that should be taken into consideration before you invest in a food truck business. For example, there’s the one-time cost as well as costs that varies by location. The one-time cost normally consists of expenses similar to the following:
- Buying the food truck
- Registering of a point-of-sale (POS) system
- Truck wrap
- Web design
- Office supplies
- Advertising and;
- Professional and legal fees
While this is just a general list, it is enough to give you an idea on the potential upfront expenses you’d like have to make.
Then, there will be the recurring costs similar to equipment rental, payroll, credit card processing and the fuel of course. Each and every new food truck needs to obtain permits and licensing which will vary based on the location.
Checklist for Other Expenses
On the other hand, the cost to start such business will vary as per the situation and cost that might actually range from 28,000 dollars to 114,000 dollars. According to experts, there are other additional costs needed to be settled on launch and these would be the following:
- Insurance – $2000 – $4000 per annum
- Initial product inventory – $1000 – $2000
- Payment processing – $200 – $1000
- Commissary fees – $400 – $1200 and;
- Licenses and permits – $100 – $500