What Is the Cost of a Food Truck?

Do you want to buy a food truck and start a business? It’s a good prospect considering how quickly the mobile restaurant industry has boomed in recent years. Food vans give aspiring chefs a chance to make a name for themselves. Plus, the lower startup costs and higher flexibility are two big reasons why aspiring entrepreneurs love these platforms.

However, like any venture, you still need to invest. Sadly, the true price of starting and operating a successful mobile eating venue is often underestimated. Many tend to overlook the associated expenses and bills that must be paid to stay afloat in the market. Therefore, in this blog, we’ll break down the expenditures involved in setting up the food truck business and discuss other important details to set you on the right track.

First things first, let’s address the elephant in the room—what is the cost of a food truck? Well, it depends. The initial costs can vary according to the size of the vehicle, amenities, and other accessories. Yes, a mobile eatery is always less expensive than a brick-and-mortar establishment. However, the upfront expenditure can add up quickly if you’re not careful.

Much of the investment will go towards purchasing a truck. It will be the heart and soul of your operations, meaning you need to make an informed decision. You have three choices – buy new, remodel an old trailer, or go for custom food trucks.

To help you out, here is a brief overview of each option:

1. New Food Trucks:

A brand-new food truck costs between $29,000 to $45,000. These standard options are fitted with new kitchen equipment and ready to roll.

2. Old Trucks:

Used, but roadworthy trucks can fetch anywhere between $11,000 to $31,000. However, you might have to spend an additional amount depending on the current state of the vehicle. Overheads may include paint, refitting, replacing tools or a complete kitchen overhaul.

3. Custom Food Trucks and Trailers:

It’s hard to pinpoint the cost of these vehicles. The price depends on the food van and what you want in the kitchen. You can choose the layout, fit the desired appliances and do much more based on your preferences.

You also have to factor in maintenance and repair costs. Regular servicing, oil changes, and unexpected breakdowns can round up to several thousand dollars per year. Hence, it’s crucial to set a budget for these expenses and do the necessary research to manage costs.

Apart from buying a food truck, you will have to set up a kitchen, procure permits, etc. Depending on your city or state, you may also need an additional licence for using certain equipment or serving alcohol. The following sections will provide a better insight into these points.

You must buy food truck equipment based on the menu. Here are some common equipment you will need for your kitchen:

Apart from these, you will need janitorial supplies, cutlery, sink, etc.

You have to set aside a part of the initial investment for raw ingredients, packaging materials and other operational requirements. The specific costs will depend on the menu and the quality of ingredients you use. As a general rule of thumb, you can expect spending on food to account for around 25-35% of your total revenue. It means that for every $100 in sales, you may need to allocate $25-$35 for raw materials.

The overall cost for food truck permits and licences to operate can range from a hundred to a few thousand dollars. At the bare minimum, you will need a business licence, a health department permit and a sales tax licence. According to the Melbourne Food Truck Program, you can run a mobile eatery from two premium and seven standard sites. There is a significant price difference between these two categories. Premium areas charge $1100 per month, while standard venues charge $216.

Apart from that, you will require health and safety clearance, a valid registration on FoodTrader and public liability insurance cover of $20 million. These additional items can increase the overall cost. Besides, there may be other unexpected bumps that will require additional funds for your food truck business.

Beyond the initial setup cost of custom food trucks, you may have to pay for labour. For a team of cooks, servers and support staff, you have to allocate a portion of the budget to payroll. Additionally, employee benefits can quickly add up to monthly expenses.

If you want to buy a food truck in Melbourne, Innovative Trailers and Food Trucks is a great place to start. We are one of the top companies specialising in high-quality mobile food vans at affordable prices. Our custom food trucks come with the appropriate kitchen utensils and convenient workstations. We also ensure the interiors match your vision and improve convenience.

For details, you can call us on 0435 867 651 or email us at innovative.trailers@gmail.com. We can help you set up the food truck business and make your culinary dream a reality.