How Much Does a Food Truck Cost To Operate?

Food trucks are becoming increasingly popular in the UK, with many people choosing to start their own mobile catering businesses. However, before you start your food truck business, it’s important to understand the costs involved.

Initial Costs

The initial cost of setting up a food truck can vary greatly depending on the type of truck, equipment, and location. You can expect to spend between £20,000 to £100,000 to get started.

The truck itself can cost between £5,000 to £50,000. This will depend on whether you purchase a new or used truck, the size of the truck, and any customisations you make.

The equipment you need will also add to your initial costs. You will need a commercial-grade kitchen, including a refrigerator, stove, and oven. This can cost between £10,000 to £30,000.

You will also need to consider the cost of permits, licenses, and insurance. This can vary depending on your location and the type of food you will be serving. You should expect to pay around £2,000 to £5,000 for these costs.

Operating Costs

Once your food truck is up and running, you will need to consider your ongoing operating costs. These can include:

• Food Costs: This will depend on the type of food you serve, but you should aim for a food cost of around 30-35% of your total sales.
• Labour Costs: You will need to pay your employees, including yourself if you are working in the business. This can vary depending on the number of employees you have and their wages.
• Vehicle Costs: You will need to pay for fuel, maintenance, and repairs for your food truck.
• Commissary Costs: You will need to rent a commercial kitchen space to prepare your food. This can cost between £500 to £1,500 per month.
• Marketing Costs: You will need to market your food truck to attract customers. This can include social media marketing, flyers, and advertising. You should budget around £500 to £1,000 per month for marketing.

Using Technology to Reduce Costs

Technology can help you reduce your food truck operating costs. For example, you can use a point-of-sale (POS) system to track sales and inventory. This can help you identify which menu items are selling well and which ones are not. You can also use the data to adjust your menu and pricing.

You can also use technology to streamline your ordering process. Some food trucks use mobile apps to take orders and payments. This can reduce the need for cash handling and speed up the ordering process.

In Conclusion

Operating a food truck can be a profitable business, but it’s important to understand the costs involved. You will need to budget for your initial costs, as well as ongoing operating costs. Using technology can help you reduce your costs and increase your profits.