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How to Start a Food Cart Business: a Step-by-Step Guide for Beginners & Entrepreneurs

Wondering how to start a food cart business?

The timing couldn’t be better: it seems that the street food craze is sweeping the world.

From bustling cities to small towns, food on wheels is a growing trend. And it’s not just drawing street food fans, it’s bringing in big bucks too: according to Intuit , the street-food business, including food trucks and mobile food carts, is a $2.7 billion industry that has seen a 12.4% growth in the last 5 years alone!

Traders are encouraged by the growing number of urban street markets, private events and street food festivals, while the entire trend is supported by the global rise of the “foodie” culture, making the public increasingly open to new taste experiences and quality cuisine.

Which begs the question:

What Makes Street Food So Popular?

From the entrepreneur’s perspective , street food comes with important benefits such as low start-up costs and mobility. Kiosks, food carts , trailers, and food trucks have a lower overhead than restaurants and can be moved if one location does not generate enough business.

For customers , street food is convenient and cost-friendly, which makes it attractive for basically everyone: locals and tourists, students and busy professionals, frugal singles and large families.

The most popular street foods?

There are the classics: hot dogs, hamburgers, ice cream and doughnuts.

Then there are those inspired by ethnic cuisines such as tacos, empanadas, sushi and crepes. The possibilities are endless and it’s up to you, the entrepreneur, to find the dishes and recipes that will set you apart from the rest and, most importantly, that will help you build a good reputation and a loyal customer base.

But, before you decide what foods you’re going to sell, you’ll have to consider:

The PROs and CONs of a Food Cart Business

There are many advantages to starting your own food cart business, which is why a lot of people choose to do just that. The PROs include:

• Low start-up costs
• Less risky than opening up a restaurant
• The ability to be your own boss
• The flexibility to work when and where you want
• Little restaurant experience required
• The growing popularity of the street food trend

But, as with all business endeavours, there are also CONs to examine. A food cart business is no walk in the park: there’s a lot of hard work to be done and you’ll only see significant profits after your business picks up.

The biggest CONs are:

• Being self-employed can be testing for some
• Long hours, early mornings and night shifts required
• Fierce competition
• There are many regulations and laws to comply with
• Seasonal reliance
• Finding a suitable location that you’re allowed to trade in
• Customer service can be challenging if you’re a solo-preneur

From our experience as food carts manufacturers , people are attracted by affordable start-up costs and by flexibility; at the same time, the most common complaints – at least in the initial phase – are long working hours and industry volatility in terms of trends and business opportunities.

However, if you are passionate about good food and you start with solid and well-researched plan, there is every chance you could make a roaring success of your food cart start-up.

How to Start a Mobile Food Cart Business? A Step-by-Step Guide

First step: market research.

Market research involves finding out the “who, what, where, why and when” of your business, and while it’s not the most exciting part of your endeavour, it’s certainly an essential one.

It can be risky and even silly to assume that you already know the answers to these questions and then get caught out later on.

Here’s what you need to address at this stage:

Operational

• Where will you set up your food cart business?
• When will you open to ensure the best business?
• How will the weather affect your trade?

Target Market

• Who are your customers? What is their demographic?
• Competition
• Is there any competition? What do they offer?

Locations & Business Opportunities

Finding a couple of great locations will play a major factor in your success and it depends on several key factors:

• Where you’re allowed to park by law
• Where the customers are
• The prime hours for each location

Some great places and opportunities to consider for trading are:

• Office parks
• The business district
• Shopping districts or malls
• Popular tourist locations
• Sports venues
• Parks and beaches
• Bus and train stations
• College campuses
• Festivals and events
• Conferences and conventions
• Private events (weddings, birthdays, etc)
• Corporate events

Most of these locations will require permits and/or owner agreements, so make sure to check with your local authorities & institutions beforehand.

When it comes to festivals, events, conferences and conventions the best thing to do is to get in touch with organizers and lease your space well in advance.

Determining Your Food Cart Business Legal Requirements

You’ve probably noticed that most How-To guides on this subject place sorting out the legal requirements at the bottom of their To-Do list.

And here’s why: the permits and licensing requirements for food cart businesses vary from country to country, state to state, and even city to city, so making a definitive list with everything you need is close to impossible.

Only your local Health Department can provide you with the information that applies in your case.

At this stage, you’ll address issues such as:

• The street food vending regulations in your city
• Licenses and permits required
• The types of food you’ll be selling and how they’re handled, stored, thawed, and cooked
• Commissary requirements (the requirement to operate from a licensed commercial kitchen)*
• The size, make and the equipment of your street food vehicle
• The vehicle’s fresh water and waste water holding capacity
• Safe food handling course requirement
• Hygiene policies
• Pre-approval inspection of the equipment

* Most municipalities don’t allow food vendors to operate a food cart business from a residential kitchen and they require the use of a commissary – a licensed and inspected commercial kitchen.

Vendors have to report to the commissary each day of operation to prepare the food that will be served from the cart and to clean the vehicle’s equipment at the end of the day.

If you are selling prepackaged foods, you are not considered a food handler and may have less stringent requirements than if you are actually preparing foods or even scooping ice cream.

But as long as food is unwrapped, you are typically considered to be a food handler and must meet specific regulations.

While your cart or truck manufacturer will not know the nuances of each city’s requirements, they can usually help you meet specific health standards.

For example, all of our food carts are manufactured using food-grade materials for countertops and other parts/areas where food may be stored and prepared.

In addition, we work closely with each of our clients to adapt the carts’ cooking & water systems so they will meet all the health and safety standards specific to the vendor’s area.

Getting all the trading, health and safety qualifications in order will not only allow you to operate legally (and avoid hefty fines), but it will also help enforce the public’s hard earned perception that that those running a street food business are doing their utmost to meet and surpass sanitary requirements.

Basically, your legal status and reputation are on the line.

In addition to the food service permits and health requirements, you may also need to apply for:

• Business license
• State sales tax permit
• Truck/cart registration

To sort these out, the city hall or the county clerk’s office will usually point you in the right direction.

Keep in mind that before you can hit the road, health inspectors will check your vehicle. Usually, they look for:

• Proof of ownership, proper identification and license (of the vehicle)
• Proof of District-issued Food Manager Identification Card
• Food-purchase record storage and record keeping
• That your depot, commissary or service support facility meets your vending unit operation needs
• Copy of license for the service support facility and/or a recent inspection report

Food vehicles are typically inspected at least once a year by a health department inspector, sometimes randomly.

The inspector checks to see how food is stored so that it does not spoil and that it is kept at the proper temperature. All food equipment as well as sinks and water supplies are checked.

Commercial kitchens and garages in which food vehicles are kept are also inspected frequently and can be given high fines if they do not meet health and fire codes.

Some have been shut down because of too many violations. Likewise, trucks and carts have lost their licenses over repeated violations.

Editor’s Note: if you want to learn more about what it takes to launch a business, from a more general perspective, here’s a great resource to get you started: How To Start A Business: A Complete Playbook

Choosing Your Street Food Business Platform/Vehicle

Mobile street food businesses come in a variety of shapes and sizes, and deciding which is the right one for you depends on your:

• Start-up budget
• Time commitment
• Vision and the ability to fulfill it
• Experience at running a business
• Target demographic

Your options are: food stands, food carts , concession trailers and food trucks. Each of them has its own unique benefits as well as some disadvantages:

Food Stands

Food stands are essentially booths or stalls that are either temporary or mobile, and are used to sell everything from quick snacks such as bagels, pretzels and ice cream, to more elaborate meals.

Most food stands are usually operated indoors and they are an excellent choice in areas where outdoor selling is limited by cold or unpleasant weather.

Pros: low start-up and running costs, flexibility. Cons:  limited trading areas, limited inventory.

Mobile Food Carts

Pros: affordable, easy to customize, easy to move between locations (they can be pulled by a bicycle/car or pushed by hand), easy to park, easy to maintain, suitable for both indoor and outdoor use, may require less licensing than a food truck. Cons: not too much space for preparing elaborate dishes.

Concession Trailers

Same as food carts, concession trailers have been around for a long time and are often found at fairs, carnivals and sporting events.

Pros: low overhead costs compared to food trucks, more space for cooking. Cons: more difficult to move between locations, require bigger parking space both on/off-duty, involve higher operating costs.

Food Trucks

We believe food carts are the best choice, especially for first-time entrepreneurs. Their size, mobility and low running costs make them ideal for starting a profitable food cart business with the potential to grow and expand at a rapid pace.

Are Food Carts Profitable?

A food cart business can be very lucrative right from the start; however, this depends on many factors such as location, footfall, weather, product type etc.

According to our customers, if you can secure a good location for your business, you can expect between 100 to 400 customers per day (during weekends, festivals and public events), bringing in anywhere from $500 to $3,000 daily.

Choosing Your Concept, Menu & Suppliers

Whether they’re food carts , concession trailers or food trucks, most successful street food businesses out there have themes or concepts that are consistently reflected in all their elements: exterior design, branding, menus and recipes.

Your concept should be a means of distinguishing you from your competition and building your niche market. And, if you get it right, it can even draw media attention to your business.

This brings us to menu planning. Choosing what kind of food you’ll prepare and sell can be a fun task, and if you look at the carts, trailers and trucks operating on the streets, you’ll find that almost anything edible can be served as street food.

But there are a lot of factors to consider when it comes to menu planning, such as:

• What foods do you know how to cook?
• What foods do you enjoy cooking?
• What are the most popular foods in your area?
• What foods can you prepare relatively fast, repeatedly and without difficulty?
• What foods could your customers take with them easily?
• What foods have a good profit margin?
• What times of day will you be open for business?
• What are you going to specialize in?
• How many items will your menu have?
• Where are you going to get the ingredients from?

After deciding on the type of food you’re going to sell, it’s time to start working on recipes and experiment with various ingredients.

Once you’ve found a few favourites, test them on your friends and family first. Don’t be afraid or dismissive of criticism: it’s better to receive it from them.

The bottom line is, don’t start out with foods you have not thoroughly tested. This means you need to perfect each recipe to be sure it has the following qualities:

• It tastes consistently good
• It’s easy to make repeatedly in large quantities.
• It’s easy to serve
• It’s easy to store & carry

Next in line is figuring out your sourcing – where will you buy your ingredients from?

Sourcing your food can be an important factor in planning your purchases, schedule and menu items.

Common sources include wholesale food distributors, food manufacturers, local and regional suppliers, green markets and farmers markets.

Determining the right quantities is another matter that you’ll need to deal with, initially by trial and error. If you have the time, spend a couple of hours observing the street food vendors in your area. How many customers do they have per hour? When’s their busiest period? This will help you estimate a potential sales volume, which you can use to draft your shopping list.

Pay special attention to foods and ingredients that lose their freshness quickly; learn which are the items you can safely keep throughout the day and how many of them you can sell before they go bad.

Creating Your Food Cart Business Plan

Despite the low start-up costs involved, jumping in to street food without any kind of plan is a sure-fire recipe for disaster. The space is extremely competitive, and you need to have a very clear idea of the niche you plan to fill before taking the plunge.

Writing a business plan isn’t a complicated job and it doesn’t have to be very long. Keep it concise, to the point and ensure that you cover each of the following topics:

• Your business’s name
• Business management: who’s going to be in charge?
• Your mission statement: in one sentence, summarize the aim of your street food business.
• Your vehicle: are you going to use a stall, a cart, a trailer or a truck?
• Start-up costs: what do you need to buy to get started? What fees to you need to pay in advance?
• The daily operational costs: how much will you spend on ingredients and what are the overhead costs on a weekly or monthly basis?
• Funding and financial projections; where do you plan to get the money from to start the business and what are your projected profits/losses for the next month, year, 2 years etc? How will you maintain the cash-flow?
• Your schedule: will you work on the business full-time or alongside your day job?
• What’s your main competition and how will you differentiate yourself from it?
• What is your marketing strategy?
• Do you have the logistics in place to deal with delivery and customer service?

If you plan to focus on events, your food cart business plan should include a clear targeting strategy. Pitch fees will vary widely, and there are a whole host of other variables to take into account including total attendance, other traders present, and the demographic of customer that will attend.

A good idea would be to create a spreadsheet with all the events and street food opportunities in your area. The amount of options available could seem daunting in the beginning, so start by thinking about what kind of event or environment you would expect to see a street food business similar to yours.

The next step would be to attend a few events yourself, taking note of the businesses that appear to be doing well and why.

As a general guide, generic fast-food businesses that focus on sales volume fare well at large music festivals and other events where the food is incidental to the main experience, whilst high-end street food traders perform better at events in which the customer will be searching for a new taste experience.

However, all the preparation in the world can’t account for the unexpected, and you will find some events simply fail to produce the expected revenue.

Your business plan should account for this, and you should always have enough spare cash in reserve to act as a safety net when you run up against the worst case scenario

Your approach to branding and marketing is a vital part of your business plan. A strong brand will help you stand out from the crowd, which is important for attracting customers as well as for securing spots at venues.

Remember: you are often selling a lifestyle with street food, so your brand should have a good slogan and a clear identity which reflects this.

Social media should obviously be central to your marketing plan and a strong Facebook and Instagram presence will help you raise your profile and create an army of online followers who you can spread your message to.

Regularly update your profiles with good quality photos as they generate a lot of interest and always display your social media handles so your customers /potential customers can connect with you

Estimating Costs: How Much Does It Cost to Start and Run a Food Cart Business?

There’s no set formula for determining how much starting a street food business is going to cost you since the niche is very broad and there are too many possibilities.

But even so, if you were to estimate, here’s a general expense breakdown:

Food Cart Business

• $3,000 – $5000 on a fully equipped food cart
• $500 – $700 on your ingredients & initial food stock,
• $400 – $ 600 on permits and registrations,
• $500 – upwards on marketing,
• $500 for the first month to park and clean the cart
• $500 in other miscellaneous costs

For comparison purposes, here are the estimates for a food truck business:

• $50,000 – $75,000 on a retrofitted food truck
• $1,000 – $1,500on initial ingredients
• $2,000 on permits and licenses,
• $2,000 for the first month of a commercial kitchen rental
• $500 for the first month of parking and maintaining the truck
• $1,800 on kitchen supplies
• $3,000 on marketing and promotion
• $2,000 on packaging
• $500 in miscellaneous costs

Huge difference, right? Regardless of your choice, you need to do the math before spending any money so that you do not run out before you get started.

Final Words of Advice

Speaking with our customers about their businesses, we’ve learnt that a background in catering or hospitality isn’t necessary to succeed – indeed, a lot of successful food cart businesses were founded by people with no prior experience of serving food.

Their biggest allies? Great food, flexibility – the ability to pivot according to the market’s trends and demands, marketing – a well-thought strategy for promoting their business across multiple channels, and outstanding customer service.

Do you have any questions concerning our food carts ? Contact us and we’ll do our best to help you out!

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• Motrike Blog

How to Start a Food Cart Business in 2023 [7 Steps]

Starting a food cart business in 2023 can be a great way to fulfill entrepreneurial dreams while tapping into the skyrocketing demand for street food. As the food industry continues to grow, food carts are becoming popular for entrepreneurs looking to enter the market with a lower startup cost. To get the best from the business, it is essential to have a well-thought-out plan in place to succeed in this industry.

This blog explains the market prospect of a food cart business, the cost of starting a food cart business, the advantages and the challenges associated with the business, and how to start a mobile food business.

Street Food Cart Business: Popularity and Market Prospect

Street food cart businesses have become increasingly popular in recent years, especially in urban areas. One of the biggest advantages of starting a street food cart business is its relatively low startup cost compared to a traditional restaurant. This makes it an attractive option for entrepreneurs who want to start a food business but have a limited amount of capital.

In terms of market prospects, the street food industry is expected to continue to grow in the coming years. According to a report by Grand View Research, the global street food market size was valued at $4.11 billion in 2021 and is projected to reach $6.63 billion by 2028, growing at a CAGR of 6.8% from 2021 to 2028.

Cost of Starting A Food Cart Business

There is no fixed amount for starting a food cart business. The cost of starting a food cart business can vary widely depending on factors such as location, menu, equipment, and licensing requirements.

The overall cost to get a food cart business functional includes the following:

• The cost of purchasing mobile food carts
• The cost of purchasing equipments and kitchen utensils
• Cost of obtaining permits and licenses
• Cost of foods and supplies
• Insurance 

Overall, the total cost of starting a food cart business can range from $10,000 to $50,000 or more, depending on the above factors. It’s important to carefully research the costs and requirements applicable to the local area before starting a food cart business.

Advantages and Challenges of Starting A Food Cart

Some of the advantages of starting a food cart business are:

• Lower Startup Costs: One of the main advantages of starting a food cart business is the lower startup costs compared to opening a brick-and-mortar restaurant. The prices of renting a commercial space, furnishing, and decorating are significantly higher than setting up a food cart.
• Flexibility: Food carts are highly flexible, as they can be moved to different locations based on demand. You can take your food cart to food festivals, fairs, or other events where potential customers are.
• Better Profit Margins: As the operating costs of food carts are low, the profit margins are much better compared to traditional restaurants.

A food cart vendor may be faced with different challenges, which include:

• Limited Menu Options: Food carts generally have a limited menu as they have limited space. This can be a challenge for customers who prefer a more extensive menu.
• Limited Storage Space: Storage space is also limited, so there may be a need to restock supplies frequently. This can be difficult when you are working in a crowded or busy area.
• Weather: Weather can impact food cart operations, especially during extreme weather conditions. Rain or wind can make setting up and operating the food cart difficult.

How To Start A Food Stand Business? 

Food cart business does not start with basic knowledge of how to open a food stand. It starts with well-thought out steps, as discussed below.

Step 1: Market Research for Food Cart Business

Market research is a crucial step to ensure the success of any business, including a food cart business. A well-conducted market research is needed to answer the question of how to start a food cart business. It helps to identify the best marketing channels to promote the food cart business. And also help to create effective marketing strategies and determine the best location for the business.

Who are the potential customers? Are they office workers, students, tourists, or local residents? What are their demographics, such as age, gender, income, and education? Knowing the target market will help understand their preferences and needs and help make an informed decision on how to start a mobile food business.

Step 2: Get Permits for Your Food Cart Business

Getting the necessary permits for a food cart business can be a complex and time-consuming process. Still, ensuring that the food cart vendor operates legally and safely is essential. Therefore, make sure to research all requirements in the proposed area and stay up to date on any changes or updates to regulations.

Permits for the food cart business are applied for with the local authority or the agencies assigned to issue the permit. The requirements may vary by location, so check with your local health department for specific requirements.

Getting a permit will require completing a business license application and paying a fee.

Step 3: Buying A Street Food Cart 

Street food carts come in a variety of sizes and designs. Consider the type of food you plan to sell and how much space you’ll need to prepare and store your ingredients. When choosing cart to buy, as much as it is important to focus on functionality, the aesthetics of the food cart is equally essential. 

Motrike cargo trikes are best suited for food cart businesses. Motrike offers different types of bikes with visually appealing designs that can be customized to fit your need. Some of the products are:

• Motrike Ice cream bikes
• Motrike Trade bike
• Motrike coffee bikes
• Motrike cargo delivery trike
• Luxury cargo trike
• Velo cargo trike 

To ensure stability, all Motrike’s cargo tricycles are built with top-notch components and strong frame materials like high carbon steel and aluminum alloy. The cargo tricycles also offer plenty of storage space, allowing enough space for a food cart business.

In addition, Motrike cargo tricycles are designed to be safe for humans and the goods transported. These cargo tricycles feature a spacious aluminum container that is both waterproof and resistant to UV rays, keeping the transported goods dry and safe from the damaging effects of rain and sunlight while traveling through the city.

All these features makes Motrike bikes an excellent choice as street food carts.

Step 4: Choosing Your Concept, Menu & Suppliers

Choosing a concept, menu, and suppliers is critical in starting a food cart business. Make sure to thoroughly research, test the menu, and choose a reliable supplier to set the food cart business up for success.

Based on the initial business research, a clear concept should be decided to create a roadmap for the business. The concept should reflect the target market, the location of the business, and personal preferences. Consider the type of food you want to serve, the atmosphere you want to create, the impression you want to leave on your customers, and other unique features that will set your business apart from competitors. Choose a suitable supplier to deliver the best quality products within a reasonable price range.

Step 5: Creating Your Food Cart Business Plan

Creating a food cart business plan is very crucial to business operations. A proper business plan should be tailored to suit the food cart business in line with the concept and mode of operation.

The food cart business plan should contain the following:

• A detailed business description that shows the mission statement, concept, and competitive advantage.
• A well-conducted market analysis that shows data on demographics, customer preferences, and industry trends.
• A marketing strategy that puts the targeted audience to account and how to reach them effectively.
• An operations plan covers the business’s day-to-day operations, including your hours of operation, staffing, and equipment.

Step 6: Get Funding For Your Food Stand

Depending on the scale of the business and mode of operation, a street food cart business requires funding to execute the plan. A small scale business can be funded with personal savings, depending on how much the owner has saved. It can also be funded by friends and family members. 

Personal savings might not be enough to fund a large scaled food cart business. When this is the case, consider sourcing for funds through microloans, small business administration loans with low interest, and flexible repayment plans. Fundings can also be sourced through angel investors in exchange for a percentage of ownership.

Step 7: Start Your Food Cart Business

All the processes mentioned earlier are part of the planning stage. starting a food cart business comes at the last stage. Before you start, it is expected that the necessary planning has been put in place. A popular adage says, “he who fails to plan, plans to fail” This statement is particularly relevant in business and entrepreneurship, where careful planning is often the key to success.

Once there is adequate planning, and the necessary licenses have been gotten, It’s time to Start!! Set out to carry out everything you have planned and achieve your goals.

How Motrike Power Up Your Food Cart Business

Motrike specializes in manufacturing high-quality cargo and food carts . They have over 15 years of experience producing suitable food carts for food vendors . Motrike offers you the best by using high-end durable components in the manufacture of different parts of the food cart.

The high-performing electric assistance of the Shimano 6 gears save the rider the stress of pedalling through a long ride. 

Overall, Motrike power up your food cart business by providing effective and efficient mobility, durability, and safety. By partnering with Motrike, you can take your food cart business to the next level and reach new heights of success.

Starting a food cart business can be an exciting and rewarding venture for those passionate about food and entrepreneurship. While it requires hard work and careful planning, following the steps outlined in this blog can help you get started on the right foot. 

From identifying your target market to sourcing ingredients, choosing a location, and marketing your business, each step is critical to the success of your business. 

You can create a thriving mobile food cart business that delights customers and generates profits by staying focused, motivated, and committed to your goals. So why wait? Start planning your food cart business today, and take the first step towards achieving your dreams by contacting us !

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How to Start a Food Truck Business

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1. Plan your costs and find a truck

2. get approved by the board of health, 3. get permits and licenses, 4. decide how you’re going to prepare your food, 5. hire employees and get mobile food vendor badges, 6. figure out where to park, 7. start marketing and promoting your food truck, 8. consider using a point-of-sale system, 9. perfect your day-to-day plan, the bottom line.

Lining the streets and sidewalks of every corner with cheap, tasty eats, food trucks — once thought to be just a fad — have proven they’re here to stay. In the past several years, the multi-billion-dollar food truck industry has become increasingly popular as sidewalk chefs reinvent street food, launching the gourmet food truck craze. From 2016 to 2021, the industry saw a 7.5% growth rate, according to Los Angeles-based industry-research firm IBISWorld — and it doesn’t seem to be slowing down anytime soon.

However, starting a food truck business is not as simple as buying a truck and cooking up some food. With any new entrepreneurial endeavor, and particularly food businesses , there is a lot of planning and preparation required even before you get into the details of the actual operation.

In this guide, we’ll walk you through, step by step, how to start a food truck. Plus, we’ll include tips from Debbie and Derek Kaye — who run the booming tri-state food truck business, Eddies Pizza Truck & Cart.

Before we break down our steps on how to start a food truck business specifically, let’s briefly discuss some of the actions you’ll want to take first — when you start a food truck, or any other business:

Write a business plan: Although you may want to get your food truck up and running as soon as possible, a well-thought-out business plan will certainly help you in the long run. By thinking out your long-term plan ahead of time, you’ll have a guide to follow as you continue through the process of starting your food truck.

Choose your business legal structure: Before you start thinking about trucks, cooking and where to park, you’ll need to decide how your business will legally be structured. Will you operate as a sole proprietorship or maybe a partnership? A business attorney or online legal service may be useful in helping you make this decision.

Register your business: Once you’ve determined your legal structure, you’ll want to register your business name, if necessary, as well as register for federal, state and local taxes. You’ll more than likely need to get an employee identification number, or EIN, from the IRS.

Open a business bank account: After you’ve registered for your taxes, you’ll want to open a business bank account as the first crucial step in separating your business and personal finances. This account will be the base for you to manage and organize your funds as you go through the process of starting a food truck.

At this point, you’ll be in good shape to actually get your business off the ground. Let’s break down how to start a food truck:

First, you’ll need to think about costs.

How much does it cost to start a food truck? It’s hard to give an accurate estimate for startup costs because there are so many possibilities in what you’ll need to get started. First, you’ll have to find the right truck for your business and you’ll likely have to get it custom made to fit your needs, which can cost anywhere from $20,000 and $40,000. You’ll also want to consider costs such as:

Ingredients and food.

Salary and benefits for employees.

Technology to operate your truck.

Marketing, advertising and more.

Your actual truck will be the largest and most pressing expense you’ll need to pay for. Before settling on a truck, you’ll want to have a few layout options, keeping in mind what specifically you’ll need for your food truck business.

You might consult various food truck vendors or other business owners to get a sense of what different layouts look like and which one might work best for you. It’s important to also keep in mind that things tend to break a lot more on a truck, cautioned Debbie Kaye, so you’ll want to make sure you consider this in your planning process and have enough finances on hand in case the inevitable happens.

“Appliances weren’t meant to be on wheels, so they frequently need repairing,” she tells us.

With this in mind, you might also think about your various food truck financing options — such as different loans and business credit cards — to cover many of your startup costs.

How much do you need?

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Next, you’ll have to sort through the rules and regulations you’ll need to abide by. As a food-based business, there will definitely be more considerations to take within this regard.

Therefore, you’ll likely want to first determine what Board of Health regulations you need to follow. It probably isn’t surprising to learn that just like health department inspectors check food at restaurants, the same goes for food trucks. Most inspections are conducted to at least verify the following:

Proof of ownership, identification and license of the vehicle.

Proof of District-issued Food Manager Identification Card.

Food is stored and kept at proper temperature.

Records of food purchase.

Health and fire codes are met.

After figuring out your health requirements, the next step involved in how to start a food truck is getting the necessary permits and business licenses. Once again, because starting a food truck business means handling food and serving it to customers, there will likely be a variety of regulations and permit requirements to sort through. Additionally, the specific licenses and permits you need will depend largely on your state and city.

In fact, some cities, including New York City, have limits on the number of truck permits issued at a time. You’ll want to visit your city’s website to find out exactly what you need to do to get the proper documentation. Keep in mind that this process may take time and will also likely include fees and proof of a Health Department permit, tax certification and liability coverage.

Once you’ve figured out the behind-the-scenes details and decided on your truck, it’s time to think about your product.

After all, a crucial part of learning how to start a food truck business is deciding what kind of food you’re going to make and sell, how that process will work, what you’ll need and what your menu will look like. As you think about these things and start making decisions, you’ll want to remember that unlike starting a restaurant with a brick-and-mortar location, a food truck has limited space — so it can be difficult to prepare food inside.

Therefore, you’ll want to decide whether it’s best for your business to prepare food ahead of time before heading out for the day’s work or if you can feasibly prepare everything on-site. Additionally, when perfecting your recipes, you’ll want to make sure the food on your menu can be repeated in large quantities, taste consistently good, is easy to serve, is easy to eat and can travel well.

With a food plan in mind, the next thing you’ll need to do when starting a food truck is think about hiring staff. In a small environment like a food truck, you obviously won’t be able to have too many employees, but depending on your food, process and the demand you may face, you’ll want to consider hiring help.

When you first start out, you may be able to work with friends, family or a partner, but if your food truck grows quickly, some part-time or full-time employees will likely be helpful. Plus, when it comes to food truck employees, you’ll need to go beyond the typical process of hiring and onboarding a team member.

To explain, aside from all the licenses and permits you need to get as a business owner, each of your employees needs to have a mobile food vendor badge in order to legally work and serve food in your truck. And, unfortunately, it takes about four months to get this badge.

“It is really frustrating to hire someone and tell them they can’t begin working for four months,” says Kaye. “It is quite the backward system that the food truck association has been trying to work on getting fixed, but no luck so far. If [you’re] caught without the badge, it is a $1,000 fine.”

If you anticipate you’ll need staff for your food truck, you’ll want to get this process out of the way and hire your first employee from the get-go. “It’s even more frustrating,” says Kaye, “because if your business loses an employee, you have to wait four months for a new employee to obtain their badge, which means that you might not have enough employees to work lunch and dinner services.”

One of the benefits (and also challenges) of starting a food truck business is the mobile element. While you have the ability to go (to a certain extent) where your customers are, you’ll also need to figure out where the best places are to attract customers, and perhaps just as importantly where you can and cannot park your truck.

Just as is the case with licenses and permits, the restrictions around parking for your food truck are going to be specific to your city; therefore, you’ll want to consult your local regulations to determine what your options are.

It’s very likely that if you’re in a larger location, like New York City, this process will be all the more difficult.

“Technically there is a book that lists where you can and can’t park,” says Kaye. “However, there is a loophole in the system and trucks can be moved by the police at any time from any spot. It is quite frustrating.”

These strict rules and regulations on New York City’s streets had the Kayes paying fines up to $1,000 a month at one time. According to Kaye, finding parking has only become more complicated as more gourmet food trucks are appearing around the city.

With this in mind, you’ll want to take extra care to determine the rules (and any possible loopholes) for your particular location.

First, you’ll need to plan and execute some marketing tactics to inform the local community of your food truck’s existence.

You might plan a “grand opening,” or see if you can take part in a local event to draw up attention and customers. You’ll also want to consider starting a website and social media presence, as well as advertising around town.

Moreover, as a mobile business, whose location can change on a daily basis, it’s important to keep your customers aware of where you’ll be. Whether this means making an established schedule on a weekly basis or simply keeping your customers up to date on your website or social media accounts, you’ll need to keep this in mind.

Although you may very well be able to run your food truck with a paper-based order system and a cash drawer, you might consider investing in a point-of-sale system to automate the process. With your food truck POS system , you’ll be able to manage orders, accept payments (including credit cards), as well as track inventory, create loyalty programs and more.

In fact, there are a variety of POS systems on the market designed specifically for food trucks.

By using one of these systems, you’ll be able to manage everything in one place, speed up and simplify your processes, and therefore, better serve your customers. This is especially important for food trucks, which often experience a rush of customers for a few short hours a day — meaning customers can end up waiting in long lines. In this case, you might consider using a pre-order system to help your food truck handle this kind of rush in business.

According to Kaye, running a food truck business is much more difficult than people think because most people see food trucks only operating during lunch hours.

“What people don’t think about is that to get our spot, we arrive at 6 a.m.,” she explains. “That means we get to our kitchen by 4 a.m. to prep and drive to the spot. After lunch, we drive back to our kitchen and have to clean the truck and the dishes. So for just a few hours of service, we work a 12- to 15-hour day.”

Therefore, like the Kayes, you’ll want to think about how your day-to-day will look: how you’ll work with your employees, where you’ll be on a daily basis, which days will require more time or investment than others. By planning ahead of time, even if just at the beginning of every week, you’ll be able to maximize your time and hopefully, your business as well.

Along these lines, you might also want to think about if your strategy will simply consist of parking around town or if you’ll consider taking part in local events, or even start catering .

Start Your Dream Business

Ultimately, learning how to start a food truck is going to take significant time, effort and investment.

Athough the competition has gotten tougher, if you’re able to carve out a niche, you have a great chance of success without the high costs of opening up a restaurant.

Moreover, if your plans are to open a restaurant eventually, a food truck can be a great starting point. For instance, Laura O’Neill and her co-founders, Ben and Pete Van Leeuwen, started the Van Leeuwen Artisan Ice Cream truck in the spring of 2008. Since then, the trio has received so much success, their business now includes over 20 locations, including both storefronts and trucks in New York and LA.

According to O’Neill, the food trucks allowed the co-founders to explore different locations to figure out who the customers were and what kind of food they liked to eat. Therefore, in a way, it allows you to test out your food creations before having to commit to a costly lease and other high overheads.

Plus, as you figure out how to start a food truck and get your business up and running, you might ultimately decide the mobile business life is the way to go and continue to invest in different trucks around your city or state — the possibilities are endless.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

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Food Cart Business: Beginner’s Guide (Top 9 Ideas)

Franchising is “a method for expanding a business and distributing goods and services through a licensing relationship,” a definition provided by the International Franchise Association.

This licensing agreement involves the participation of both franchisor and franchisee. You should know the difference between these two in layman’s terms:

• Franchisor

He is the legal owner of the overall rights, including trademark, method, and products of the company. He grants the license to the franchisee.

• Franchisee

He is the one bound by the licensing agreement granted by the franchisor. The franchisee purchased the right to sell the franchisor’s products.

In this case, planning to start your food cart franchise through already established brands will make you the franchisee.

Advantages of Franchising

1. Established brand and customer base – When you franchise, the brand is already recognized and has proven its profitability. You won’t worry that much about incurring huge losses.

2. Higher chances of success

3. Faster return of investment

4. Growing trend

5. Minimal risk

6. Marketing support – Advertisements are often aired on televisions and radios. Some are even heavily promoted through billboards and other powerful outlets so attracting customers won’t be that burdensome.

Disadvantages of Franchising:

1. Royalty fees – Fees must be remitted to the franchisor for a percentage of your monthly sales; thus, your income is reduced.

2. Limited control and freedom

3. Dependence on franchisor success

4. Limited creativity and flexibility – If you ventured into a milk tea franchise, you can’t innovate the taste of the milk tea. You can’t decide on your own and replace the tapioca pearls with your own preferred version.

As you can notice, the advantages still outweigh the disadvantages. Actually, the franchise has been named as the “business with least tears and fears.”

This boosted your motivation, am I right?

I hope you keep that passion burning!

Food Cart Business Ideas

You already made progress in reading this blog. Probably, this guide already flicked a light on your mind!

So, upon conducting a little research on what Filipinos love today, here are some ideas for your own food cart business that could further spark your interest!

1. Milk tea

Among all the food products on this list, this one takes the crown. Filipinos ranked second highest milk tea drinkers in Southeast Asia. The average milk tea consumption in the Philippines is 5 cups per month!

As a milk tea addict, maybe you have that unique milk tea formula you’d like to explore! Turn those pearls into cash! If this doesn’t convince you, I don’t know what will.

Gilbert Jim, a tea-lover and owner of Bubbatealicious which started in 2008, wanted to advocate tea-drinking which wasn’t prominent in the country at that time. He continued advocating tea-drinking until his hard work only paid off in 2010.

As your own milk tea business reaps its success, expect the blockbuster lines, and the whopping blockbuster sales!

2. Fruit shakes

Filipinos, regardless of age, want something to quench their thirst in this microwave oven we live in.

Whether you built a cart in transport terminals or beside schools won’t matter; people will still be lining up for a refreshing mango shake or buko shake.

The perfect ulam + sinangag + itlog would always be the ultimate favorite combination. Tapa, tocino, hotdog and bangus are some of the classic favorites.

It’s not only ideal for breakfast but satisfies your stomach for any meal of the day.

A perfect example of a successful food cart business would be Ate Rica’s Bacsilog.

The craze started in DLSU, until it branched out its operations in other areas. They stepped up the typical bacon silog by featuring and boasting their most-loved cheese sauce!

4. Chicken wings

Who doesn’t love chicken wings? Chicken wings are a timeless favorite. People continue to indulge in experimenting sauces and new flavors that would be on par with other chicken wings restaurants.

5. Street food

Make those kwek-kwek, isaw, fish ball, siomai or dimsum your own version! You can innovate by producing a delicious coating or even by adding a twist to the usual orange kwek-kwek color.

Be remembered as a modern street food cart business that prides in cleanliness, affordability, and superior taste.

Top 9 Food Cart Franchise Opportunities (Ranked starting from the cheapest)

Before giving you the updated list that would hint your next business franchise venture, here are some terms you should be knowledgeable of:

Payback period – the length of time that would recover your initial investment.

For example, your initial investment for Siomai King amounted to P150,000. For a year, your monthly income amounted to P12, 500.

P12,500 x 12 months = P150,000.

Your investment was recovered in a year. The faster the payback period, the better. However, also consider inflation. The money you initially invested may not have the same value in the future.

For this list, the capital ranges from P50,000 to P250,000!

For your convenience, relevant information such as contact details is provided. Here are the franchise businesses leading the pack in terms of minimal investment:

1. Burger Matsing Franchise

• Minimum initial investment: PHP 50,000
• Package inclusions: Franchise fee, franchisee and crew training, online ordering system, operations and marketing support, etc. (Excluded: Store construction cost, equipment, and initial inventory)
• Contact information : [email protected] / 0945-3456957 / 0939-8775810 / 0943-8700283

Yes, for only P50,000, your goal of a food cart business can be at the palm of your hands. With proper management, this can be as easy as pie.

2. Star Frappe’ Food Cart Franchise

• Minimum initial investment:  PHP 99,000
• Package inclusions:  Trade name use, food cart, equipment, crew uniform, initial products worth PHP 3,000, franchisee and crew training, and after-sales support
• Contract term:  1 year (renewable without a fee)
• Average payback period:  3 to 4 months
• Minimum space requirement:  6.25 sqm
• Contact information:   [email protected]

Your investment is already recovered in a short period! You will then start earning profit in your 5 th month of operations. Be completely aware of your franchisor’s terms regarding royalty and franchise fees.

3. Boy Kanin Food Cart, Kiosk, Dine-in Counter, or In-line Store

• Initial investment: a. Kiosk: PHP 149,000 b. Dine-in counter: PHP 199,000 c. Small in-line store: PHP 249,000 d. Big in-line store: PHP 299,000 e. Food cart: PHP 299,000
• Package inclusions:  Franchise fee, trademark use, initial stocks, franchisee and crew training, marketing support, opening assistance, crew uniform, cart, equipment, etc. (Excluded from the kiosk, dine-in, and in-line store packages: Construction cost, equipment, and marketing materials)
• Contract term:  3 years
• Space requirement:  4 sqm (Kiosk/food cart) / 15 to 20 sqm (Dine-in) / 30 to 50 sqm (Small in-line) / 60 to 100 sqm (Big in-line)
• Contact information:  [email protected] / 352-8130 / 0917-3443472 / 0923-6831409

4. Hong Kong Style Fried Noodles & Dimsum Food Cart Franchise

• Initial investment:  PHP 150,000
• Package inclusions:  Food cart, equipment, utensils, small wares, initial product, training, pre-opening and opening assistance, crew uniform, and marketing materials
• Space requirement:  4 sqm
• Contact information:  343-0536 / 0917-5000772 / 0922-8307611

5. Siomai King Food Cart Franchise

• Initial investment:  PHP 168,888
• Package inclusions:  Security deposit worth PHP 40,000, trade name and logo use, food cart, equipment, utensils, food tasting products worth PHP 1,000, training, operations manual, opening assistance, marketing materials, etc.
• Contact information:  [email protected] / 889-4773 to 76 / 0918-8JCFRAN (523786)

As part of the new normal, Siomai King allows online franchising. Even when on lockdown, you can launch your food cart business.

You can be a franchisee in the comfort of your home. If you’re interested, click for full details .

6. Potato Corner

• Minimum initial investment:
• Food cart: PHP 200,000
• Kiosk: PHP 400,000
• In-line store: PHP 500,000
• Package inclusions: Franchise fee, food cart, franchisee and crew training, equipment, small wares, and initial supplies
• Average payback period: 1.5 years
• Contact information: [email protected] / 534-5845 / 534-5846

7. Mister Donut Food Cart, Take-out Booth, or Dine-in Shop

• Minimum initial investment: a. Food cart: PHP 200,000 b. Take-out booth: PHP 400,000 c. Dine-in shop: PHP 650,000
• Package inclusions:  Food cart, equipment, small wares, POS tablet, and crew uniform (Excluded: PHP 50,000 franchise fee)
• Contract term:  2 years (renewable for another two years at PHP 50,000)
• Average payback period:  8 months (cart) / One to two years (dine-in)
• Minimum space requirement:  1.35m x 2.16m (Cart) / 6 to 9 sqm (Take-out)
• Contact information:  [email protected] / 370-1236 / 0917-8896148

8. Waffle Time Food Cart Franchise

• Initial investment:  PHP 250,000
• Package inclusions:  Franchise fee, food cart, equipment, training, and crew uniform (Excluded: PHP 50,000 refundable security deposit)
• Contract term:  3 years (Renewable for another three years)
• Average payback period:  6 to 12 months
• Minimum space requirement:  4 sqm
• Contact information:  [email protected] / 584-1601 / 584-3704 / 0933-8513968

9. Happy Cup

• Minimum Initial Investment:
• Cart – PHP 250,000.00
• Outlet & Kiosk – PHP 300,000.00 to PHP 350,000.00
• Area Franchise – PHP 750,000.00
• Contact Information: [email protected] / 0917-12345678

Did none of these wake up the entrepreneur in you? To have a full list of food franchises you can venture into, particularly those below P1M of investment, read more

If your budget is specifically below P500,000, here is a compilation under these two categories, click here

Final Note to Aspiring Entrepreneurs

A food cart business can be a root to wonderful opportunities. That cart will be one of your first symbols of success. Hence, acquainting and engaging yourself in the food industry is indeed a wise decision.

However, kickstarting your business can be both intimidating and challenging.

Life isn’t about rainbows and butterflies. Get rid of your “what ifs” and start your business planning process! Be embodied with passion and zeal in the pursuit of your dreams.

There’s a quote that says, “If you have lemons, make a lemonade,” But do you ponder on and reflect on the true meaning of this?  Lemons represent the sourness, the adversities in life, but we shouldn’t settle with its sourness forever but radiate optimism and hope instead.

Let go of the fear that your business will fail. It will only be a failure the moment you didn’t try. Soon, you will reap your big success.

I would like to hear your food cart business journey soon!

Read these next:

• Pisonet Business: Everything You Need to Know!
• 25 Best Franchise Business Opportunities in the Philippines – by Grit PH
• How to Start A Successful Internet Cafe Business
• 14 Things You Need to Start A Sari Sari Store Business

Jerico Saquing

Jerico is the founder of Peso Hacks. He's also a freelance writer who specializes in topics related to finance, travel and games. In his spare time, he likes to watch anime, play mobile games and read books.

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WRITTEN BY: Mary King

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This article is part of a larger series on Starting a Business .

Starting A Business?

• Step 1: Research Local Food Trucks & Laws
• Step 2: Choose a Menu, Name & Logo
• Step 3: Register Your Business & Open a Bank Account
• Step 4. Raise Funds

Step 5: Get Your Food Truck

• Step 6: Get Licenses, Permits & Insurance
• Step 7: Purchase Equipment & Supplies
• Step 8: Hire & Train Staff

Step 9: Market Your Food Truck

• Pros & Cons

Bottom Line

There has never been a better time to start a food truck business; in fact, the number of food trucks grew by almost 10% from 2022 to 2023 1 . If you’re looking for a money-making business idea, a food truck is a great one. Successful food trucks can bring in more than $500,000 per year, with startup costs from $40,000–$200,000.

Starting a food truck typically takes three to 12 months and requires the nine steps below. Download our checklist to help you stay on track.

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Starting a Food Truck Checklist

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Step 1: research local food trucks & laws.

When starting your food truck business, it’s essential to make sure you are filling a hole in the market, supplying a demand, and operating within the law. So, you should evaluate the food truck scene in your area and research local food truck laws and regulations. This information will help you decide if a food truck is the best-fitting business for you to start .

When evaluating your local food truck scene, make sure you do the following:

• Evaluate existing trucks: Note popular cuisines and price points, serving hours, and popular selling locations. This will help you develop a truck that fits your market.
• Research local food truck laws: Some areas have generous food truck regulations, while others are so restrictive that it seems they don’t want trucks at all. Call your local health department and county or city clerk’s office to find out what permits you need and what parking restrictions to comply with.
• Check the availability of commercial kitchens: In most locations, food trucks are required to contract with a commercial kitchen to prepare and store food.
• Look for food truck parks: Truck parks indicate that an area welcomes trucks and helps potential customers locate you.

Introduce yourself to truck owners and ask them about their biggest operational challenges. You‘ll find that most are eager to share their knowledge with an up-and-coming food trucker. One of the best aspects of food truck communities is the camaraderie and support of other truck operators.

Step 2: Choose a Menu, Name & Logo

Food trucks are known for their clever remixes and personal flair. The most successful food truck concepts reflect their owner’s interests and personal experiences. Consider the popular Las Vegas truck Buldogis , which serves Korean-inflected gourmet hot dogs that reflect the owners’ American and Korean backgrounds. Start with your menu, and your name and logo should naturally follow.

• Read our menu development guide for tips on creating your food truck menu.
• Our restaurant name generator will help you find a unique food truck name.
• Read our guide to business logos for details on crafting your food truck logo.

Step 3: Register Your Business & Open a Bank Account

When starting a food truck, you’ll need to create a business entity and register with your state. For most food truck operations, a limited liability company (LLC) makes the most sense. It protects your personal assets in the event of a lawsuit or business bankruptcy and shows vendors, insurers, and permitting agencies that your business is legitimate.

Filing fees vary from state to state, but forming an LLC isn’t necessarily expensive. Costs range from $40 to $500, and you can find the forms you need on your state’s business office website.

Filing LLC paperwork can be tedious and a little complicated. If you need guided assistance, we recommend working with a legal website like Incfile or one of our other recommended online legal services .

Open a Business Bank Account

You’ll need to separate your personal finances from your business finances by opening a business bank account . This account will hold funds invested in your food truck and be used to pay permitting, licensing, and vendor fees. When your truck is up and running, your credit card deposits will run to this account, and you will pay employees and suppliers from it. You can inquire about business banking options at the bank that handles your personal banking.

See our list of the best small business checking accounts for more business banking options.

Step 4. Raise Funds for Your Food Truck

Starting a food truck business can cost anywhere from $40,000 to $200,000, depending on your location, the cooking appliances you need, and the type of truck you purchase. The tables below give you a rough estimate of the itemized costs involved in starting a food truck business. Click the tabs to view one-time and recurring food truck costs.

Food Truck Business Estimated Startup Costs

The first step to raising the funds you need to start a food truck is writing a business plan.

Write a Food Truck Business Plan

Like any other business, your food truck will need a well-prepared business plan if you want it to succeed. Your business plan puts your concept on paper so potential investors and loan officers can see that your food truck is a good investment. Having a food truck business plan gives you a better understanding of how long it will take for your food truck to turn a profit and what funds you need to sustain your business until that point.

Read our guide to writing a business plan for step-by-step instructions.

Food Truck Funding Options

Most people don’t have immediate access to the capital required to start a food truck, so financing your food truck business will be an essential step. Most lenders require a business plan before issuing a loan, so be sure to have your thorough plan ready, along with the amount you need and your credit history.

Here are some financing options available for aspiring food truck owners:

• Equipment loan/financing program: Some truck sellers or equipment financiers will loan to you to purchase the truck.
• Rollover for business startups (ROBS): If you have more than $50,000 in a retirement account, you can set up a ROBS , which will allow you to use the funds in your retirement account to fund your business without paying early withdrawal penalties.
• Business credit cards: If you are good at paying off debt, a business credit card may be a good option.
• Personal loan: This is a good option if you have a good credit score and need less than $50,000.
• Microloan from Small Business Administration (SBA): Microloans are considerably smaller in size than conventional business loans but may be sufficient to cover food truck startup costs. Check out SBA’s Microloan Program for loans of less than $50,000.
• Find investors: Whether it’s a friend or family member, finding investors for your food truck business requires strategy. Prepare your concept and a solid business plan to help convince investors to fund your venture.

Not all funding comes from banks and big investors. If you have an active fanbase of friends and family who support your food truck concept, crowdfunding can provide some or all of your opening budget. Your business plan will give you a great jumping-off point to create a compelling crowdfunding page. A bonus of crowdfunding for a food truck is that you’ll already have a fanbase excited to see your truck come to life.

For a detailed look at crowdfunding, see our guide on how to crowdfund a small business .

Several of the permits and licenses you need depend on the type of vehicle you purchase. So this step typically happens before– simultaneously with– the next step; getting your permits. You can buy, build, or lease a food truck. Food trucks can cost anywhere from $3,250 for a secondhand trailer to as much as $300,000 for a new, custom-built truck, although $5,000–$125,000 is the general range.

Regardless of your budget, you should invest in the best quality truck you can afford. Investing in a quality food truck from the beginning minimizes your risk of incurring repair expenses down the road, and protects you and your staff from dangerous cooking or vehicle-related accidents.

Expand the sections below to explore your options for getting a food truck.

Buy a Food Truck

You have several options for purchasing a food truck. You can purchase a used truck from an individual seller in person or online. By purchasing a used truck, you can typically get a fully outfitted truck for around $50,000, although you will have to repaint the outside and possibly renovate the inside to match your business.

A few good directory sites to find used food trucks are:

• Commercial Truck Trader
• Used Vending
• Road Stoves
• Miami Trailer & Equipment Company

You can also purchase a new food truck directly from a manufacturer like Ibarras. Prices for its standard trucks start at around $18,000. Major car manufacturers like Ford, Nissan, and Mercedes-Benz also supply food truck-compatible vehicles; you’ll need to contact a local dealer for pricing and options. When buying new from a major manufacturer, you should expect prices starting at $40,000, plus equipment.

Build a Food Truck

Custom-built food trucks can set your food truck apart from the competition if you have the budget for one. Companies like Prestige Food Trucks, Cruising Kitchens, and Northwest Mobile Kitchens specialize in custom food trucks built to your exact specifications. New custom food trucks will cost around $100,000 to $200,000. The benefit, of course, is that everything is new, built for purpose, and usually under warranty. You don’t need to worry about how previous owners cared for the truck or if a professional installed the gas lines.

Lease a Food Truck

If you’re only operating seasonally or your funds are limited, you should explore leasing a food truck. Brands like Mobi Munch, RoadStoves, and Ibarras lease trucks month-to-month. If there are truck agents in your area, leasing is an attractive option because leases tend to come with lots of included services. RoadStoves customers, for example, get overnight truck parking, a health permit, and access to a commissary kitchen included in their truck lease. It is common for food truck leases to run from $3,000 to $4,500 per month.

The downside to leasing is that the truck won’t be customized to your needs. You’ll also need to get creative with magnetic decals to customize the truck with your logo and menu. When your lease term is up, you may also have to pause your business until you find another truck.

Step 6: Get Licenses, Permits & Insurance

Food trucks need at least three types of licenses and permits: general business licenses, food service licenses, and vehicle licenses. Depending on your location, most food truck licenses and permits will cost between $100 to $500 each. Your total permit and license fees can range from $1,500 to $20,000, depending on your location and the type of food you cook.

A mobile food vending permit is one of the licenses your truck needs. (Image from NYC Dept. of Health)

To ensure your food truck is fully licensed and permitted, you’ll need to contact:

• Your local health department: The health department issues licenses for your truck, prep kitchen, and managers. If your location also requires food handler’s permits for your staff, the health department will handle that.
• Your local fire department: The fire department inspects your cooking equipment and the truck’s electrical and fire suppression systems to ensure they operate safely.
• State, county, and city clerk’s offices: These offices issue general business licenses, tax licenses, and other foundational documents for running your business.

Food Truck Insurance

Like any small business, food trucks need general liability insurance. Since food trucks operate as mobile businesses, serve food to the public, and may have employees, you’ll have additional insurance needs like commercial auto coverage and worker’s comp. Contact an insurance provider for a comprehensive quote.

For more details, read our expert-written guides to food truck insurance costs and coverage plus a ranking of the best food truck insurance companies .

Step 7: Purchase Equipment & Supplies

Even if your truck is fully outfitted with cooking and refrigeration equipment, you’ll still need some extra tools. Generators, condiment tables, registers, and point-of-sale (POS) systems are all standard food truck equipment. Increasingly food truck owners are adding rooftop solar panels to offset fuel costs. You’ll also want to open accounts with food suppliers so you can buy in bulk and avoid paying sales tax.

Food truck equipment and supplies you’ll want to budget for include:

• Truck wrap and exterior decor: Those vibrant trucks with nose-to-tail designs are covered in a “truck wrap.” The cost of installing a truck wrap ranges from $2,500 to $5,000 (including design). If you are short on funds, local sign shops can print smaller vinyl decals or magnets.
• Cooking and serving equipment: You’ll likely need small equipment like a food processor, baking sheets, and Cambro containers to store your prepped food and transport it from your prep kitchen to your truck. If you offer catering, you’ll also want a couple of sturdy collapsible tables and chafing dishes to keep your food warm outdoors. You’ll be able to find most small equipment at a local restaurant supply or kitchen store.
• Generator: You’ll need a generator to run your cooking and electrical equipment when your truck is parked.
• Ingredients: You’ll need the ingredients to make your signature dishes before you can cook and serve food. If your food truck is even a little bit busy, you’ll want to open accounts with wholesale suppliers. This gives you a price break on food and beverage supplies and saves driving time, as most distributors will deliver directly to your commercial kitchen space.
• POS and payment equipment: Most customers prefer to pay with cards or apps, so you’ll need a way to process payments on the go. Our top-ranked food truck point-of-sale (POS) systems can operate via Wi-Fi or cellular networks, and many are free to use.

More than half of the food trucks I know use some type of Square POS. Square operates on iPads and smartphones, and you can download the Square POS and start taking payments in a couple of hours. For more information, visit Square .

Step 8: Hire & Train Staff

Food truck owners do a lot of work themselves, but you’ll still likely hire some hourly employees. The staff you hire should fill in skills you lack or areas you cannot pay attention to. For example, if you are an expert grill cook, it makes more sense to hire a cashier than a cook. But if you have a welcoming personality and are great at add-on sales, you’ll be stronger in a customer-facing role and should hire cooks. If you get a lot of catering inquiries, it might make sense to hire an event salesperson to send estimates and wrangle catering contracts.

Expand the sections below to view common food truck employees:

Window Attendant

(Image by Kampus Production from Pexels)

Your window attendant takes orders at the truck window, interacts with customers, and processes payments. Someone with a friendly personality and cash-handling experience is good in this position. Window attendants are typically hourly, minimum wage positions and may earn tips.

If you are struggling to find staff, a window attendant can be replaced by a self-service kiosk . If you are short-staffed, this is one of the simplest solutions.

(Image from RODNAE Productions, Pexels)

A truck cook cooks and serves dishes on the truck itself. Depending on the number of cooktops you have and your menu style, you may need two cooks in the truck all the time. Truck cooks tend to be hourly employees who earn at least minimum wage; however, you should definitely pay more if your truck cook is experienced. They are frequently included in on-truck tip pools.

(Image by Mikhail Nilov, Pexels)

If your truck is busy, you may need a hand with off-truck prep cooking. Hiring a prep cook to work in your commercial kitchen while your truck is on the road can significantly reduce your turnaround time between events. Prep cooks are usually part-time staff who earn at least minimum wage. Depending on your local labor laws, prep cooks may or may not be included in tip pools.

Catering Salesperson

(Image from Harvest Kitchen)

You don’t want to miss the chance to book private catering events. These can be a massive boost to your truck’s bottom line. A catering salesperson responds to all private event inquiries and works directly with your clients to create a menu, execute an event contract, collect deposits, and hire rental equipment. Catering salespeople typically earn a small hourly base pay or salary, plus a 3% to 10% commission on their booked events. They are typically not tipped, though their commission fee may appear as a service charge on the final invoice.

Catering Servers

(Image from cater-waiters.com)

Large events sometimes request tray-passed food or to have some foods served at individual tables. Event coordinators may hire this staff themselves, but it can help to have some staff of your own to call in. Having your own catering servers can give you an edge in landing bigger (and higher budget!) events. You may pay catering servers a flat hourly wage (usually higher than minimum wage) or minimum wage plus tips.

Training Food Truck Staff

Once you’ve hired your truck staff, set aside time to train them. Depending on your team’s experience level, you’ll need to allow two days to two weeks to get your team up to speed. Prepare itemized copies of your menu with ingredient lists and common allergens, along with what items can and cannot be modified. For example, if your housemade chili is cooked with bulgur wheat, it cannot be made gluten-free.

All of your truckers should know how to use fire safety equipment on your truck. You’ll also want to train your team on the policies and procedures at your commercial kitchen. If there are strict operating hours, designated storage areas, or designated parking areas, you’ll want to cover that explicitly, so your team reflects well on your brand.

If your truck collects tips, you may also run a tip pool to distribute tips to your staff. For tips on managing a tip pool, see our guide to restaurant tip pooling laws and tipping out . A tip pool based on hours is a popular way to distribute food truck tips.

Once you have your truck, permits, and staff, the final step in starting your food truck business is marketing your truck. A good food truck marketing strategy involves a combination of online and traditional marketing strategies, including social media marketing, vending at local events, building a website, and joining advocacy groups.

You can take a deep dive by reading our guide to food truck marketing . Expand the accordions below for a quick overview.

Food Truck Social Media Marketing

Instagram and Facebook are great ways to connect with your local community and help potential customers find your business. Plus, Instagram and TikTok are ideal places to show off pictures of your tasty food. For maximum impact, post regularly, and be sure to use any local hashtags to help your business get discovered. Don’t just stick to food photos; part of the appeal of food trucks is their personal story and the camaraderie of their team. Let users see your personality and passion.

Post your locations and hours so that customers can easily find you. If you accept orders online or over the phone, include that information in your social media bio. You can also use stickers and buttons on your Facebook or Instagram accounts to add shoppable links to your online ordering site.

Create a Website

A website is essential for a food truck. It shows potential customers who you are, what kind of food you sell, and how to find your truck. Your website is also a great place to post your event calendar or a contact form for catering orders. Our guide on how to make a business website will walk you through the process.

Participate in Festivals & Local Events

Festivals are a great way to get customers and gain insight from fellow food truck owners. Especially in the spring and summer months, tons of towns and cities have outdoor events, from fairs to farmers’ markets. Participating in these events is a great way to spread awareness about your business while also getting extra sales.

Try to book as many events as you can. You’ll have a captive audience to market your business and are guaranteed to make sales. If you participate in several events, fairs, or festivals, create an event calendar that you can hand out to customers so that they know where to find you next.

Join a Street Vending Advocacy Group

Many cities with a vibrant food truck community also have advocacy groups. Joining one will put you in contact with other like-minded business owners who can help you troubleshoot problems and send you business if their truck is not available for an event. The added benefit of joining an advocacy group is, of course, advocacy. These groups work together to encourage local regulations that are food truck-friendly, which can’t help but boost everyone’s business.

The National Food Truck Association is an excellent place to start. It currently hosts local chapters in California, Texas, and many other locations

With your truck purchased, supplied, permitted, staffed, and marketed, all you need to do now is make your first sale. With this guide as your foundation, you’re well on your way to starting a successful food truck. So go out there and have a great service.

Pros & Cons of Starting a Food Truck

Still on the fence about starting a food truck? Like any other business venture, the food truck industry offers advantages and disadvantages. Read through this list of food truck pros and cons to help you make your final decision.

Starting a Food Truck Frequently Asked Questions (FAQs)

There is much to know about starting a food truck. These are the most common questions I hear from prospective food truck owners. Expand each question section for a detailed answer.

How much does a food truck cost?

Starting a food truck typically costs between $40,000 and $200,000. The cost varies based on whether you purchase or lease a truck, the truck type, the necessary equipment, and the cost of permits in your location.

How profitable is a food truck?

Successful food trucks can be very profitable, bringing in around $500,000 in annual sales, and sometimes as much as $50,000 per month. Hitting figures like that requires a targeted menu, excellent marketing, and a full-time commitment to managing your costs and overhead.

Having a highly profitable food truck may also involve expanding your truck operation to include private catering, online ordering , and other revenue streams like selling a shelf-stable signature sauce or retail merchandise. It helps to operate in a food truck-friendly city—like Los Angeles, Philadelphia, or Denver—that has regulations that allow food trucks to thrive.

Is owning a food truck hard?

Owning a food truck takes a lot of work, but can be very rewarding. The days can be long; food prep can start in your commissary kitchen several hours before service, and your day doesn’t finish until the truck is parked, the food unloaded, the greywater drained, and all surfaces scrubbed and sanitized. You’ll interact with excited food fans, but you’ll also be responsible for scheduling staff, processing payroll, and dealing with parking tickets. Marketing is important and all on your shoulders, as are less creative things like paying your sales taxes.

If that sounds manageable to you, then owning a food truck won’t feel hard. But if that description sounds overwhelming, you might want to bulk up your restaurant management or general business skills before taking the step to food truck ownership.

How can I start a food truck with no money?

If you want to start a food truck with no money, crowdfunding is your best bet. You can also consider starting with a smaller operation, like a cottage food operation or tent vending, to build a brand and fan following while you save to start your truck.

Why do food trucks fail?

Many food trucks fail within their first three years of operation due to a lack of funds. Difficulties can include unexciting concepts, tough regulations, poor supply choices, truck breakdowns, poor marketing, and more. Some of the biggest reasons food trucks lose money and ultimately fail are:

• Local regulations designed to protect traditional restaurants
• Poor operating and financial planning
• Unforeseen vehicle repair expenses
• Underestimating the daily number of hours needed
• Ineffective marketing

Not all food truck closures are failures, though. Many food trucks close when they become so popular the owners are able to open a brick-and-mortar restaurant or catering company. So in a way, some food trucks fail through success.

If you’ve been dreaming of how to start a food truck business, you should know it is a fun—yet time-consuming—process with plenty of opportunities for growth and profit. The food truck business is demanding but, ultimately, rewarding if you take the time to create a careful business plan with market research and a solid marketing strategy. Ensuring you have plenty of startup capital and the right equipment is the best way to encourage success.

• https://www.ibisworld.com/industry-statistics/number-of-businesses/food-trucks-united-states/

About the Author

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Mary King is an expert restaurant and small business contributor at Fit Small Business. With more than a decade of small business experience, Mary has worked with some of the best restaurants in the world, and some of the most forward-thinking hospitality programs in the country. Mary’s firsthand operational experience ranges from independent food trucks to the grand scale of Michelin-starred restaurants, from small trades-based businesses to cutting-edge co-working spaces.

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Food Trucks 101: How to Start a Mobile Food Business Want to take your recipes on the road? Here are the basics.

By The Staff of Entrepreneur Media, Inc. • Jul 25, 2011

Editor's note: This article was excerpted from our Food Truck startup guide, available from the Entrepreneur Bookstore.

Today, a new generation of street-food lovers is lining up at food trucks and food carts like never before. Little do they know that neither food trucks nor food carts are new to the streets of American cities. Like so many other popular trends, they are the latest version of a long-standing part of American and world culture. Yet the street-food industry has never enjoyed so much publicity or notoriety.

According to Los Angeles-based industry-research firm IBISWorld, the street-food business -- including mobile food trucks and nonmechanized carts -- is a $1 billion industry that has seen an 8.4 percent growth rate from 2007 to 2012. It's very entrepreneurial: 78 percent of operators have four or fewer employees. The true number of these businesses is difficult to count, since the mobile food industry is comprised of food trucks, food carts and kiosks, which have appeared in malls as well as at train and bus stations, airports, stadiums, conference centers, resorts, and other locations in recent years.

Food-industry observers claim that the food-truck business is increasing largely in response to the slow-growing economy. People are seeking inexpensive breakfasts and lunches. Also, employees today are often pressed for time, with more work and shorter lunch hours. These factors make the mobile-food concept more appealing than ever.

From an entrepreneurial standpoint, kiosks, carts, trailers, and food trucks have a lower overhead than restaurants and can be moved if one location does not generate enough business. Rather than having to determine where to open a restaurant and worry about the old real-estate adage "location, location, location," the owner can actually drive to a new location, location, location if business is poor.For customers, you add the convenience of having food favorites right outside a particular location -- or inside with a kiosk -- and meet several needs by serving mobile food. First, you offer food that is cost friendly because you need not pay wait staff or bussers. You also offer the convenience of quick service. In many cases you provide food choices that can save those on a busy schedule from the need to sit down. Typically customers can eat street foods while en route to their next destination. Finally, mobile food is often fun to eat and (if it's good) great to talk about.

Related Book: Start Your Own Food Truck Business

Goin' Mobile: Your Options

Even before you decide what foods to sell, you'll want to consider how you want to sell them.

Clearly, your decision on how to sell your foods will depend on:

• Your startup money, budget and potential for returns
• Your commitment to the business: part time, full time, etc.
• Your creative ideas and what it will take to fulfill them
• Your experience at running a business
• The size of the business you want to start
• Your ideal demographic

These are a few of the considerations you will consider as you proceed, but for now, let's take a look at the common mobile-food entities.

Food Kiosks

Food kiosks are essentially booths or food stands that are temporary or mobile facilities used to prepare and sell food. Malls and stadiums are popular locations for food kiosks, which sell anything from pretzels and ice cream to more elaborate fare.

Although kiosks may have wheels, they are not mobile under their own power and in most cases need to be assembled. Most kiosks are rectangular and have room for two people to work within or stand behind, preparing and serving the food. They also have counter space and overhead signs.

The low overhead, flexibility and ease by which a kiosk can be opened and closed are among the reasons they're so popular. They are also an excellent choice in areas where your outdoor selling season would be limited by cold or nasty weather. Of course, the size of the kiosk limits the inventory, so it's important for a kiosk owner to carry as much as possible and price accordingly so that she can make money on what is on hand each day. Because they are usually operating indoors, kiosk owners typically sign licensing agreements at malls, stadiums, movie theaters, or other locations. Many major food businesses such as Ben & Jerry's and Baskin-Robbins franchise express kiosks.

Food Carts and Concession Trailers

The food cart and the concession trailer have been around for decades and combined are a multibillion-dollar industry today. The best known have always been hot-dog and ice-cream carts. They are among the most cost-effective ways to start a mobile food business because the carts are typically pulled by your car, truck or van, or pushed by hand. Food is either prepared in advance or purchased ready to sell -- like ice-cream pops or cups of Italian ices -- and stored, and then either heated up or pulled from the freezer. Carts are also fairly easy to maintain, and in many counties and communities, require less licensing than the full-size food trucks. It is also cost-effective if you choose to own several carts and hire friends, family or other employees to help run them for you.

There are two basic types of food carts. One has room for the vendor to sit or stand inside and serve food through a window. The other uses all the space in the cart for food storage and cooking equipment, which is typically a grill. The precise type of cart you'll want should be determined largely by the food being offered.

Modern-day food-cart owners have cleaned up the somewhat greasy reputation of street-food vendors. They have also expanded their menus. Kebobs and gyros came on the cart scene awhile ago, and vegetarian and Mediterranean salads have also caught on, as well as fish and chips. The Euro Trash food cart in Portland, Ore., for example, offers items like a prawn baguette with Portuguese curry prawns. And then there's Portland's Pie Lab, with slices of pie -- extra for ice cream or whipped cream on top.

Trailers, like carts, do not move under their own power, limiting their potential locations. Food trailers are often found at fairs, carnivals, sporting events, or other places where they can be unhitched and sit for awhile. Unlike most carts, trailers allow for cooking and have room for two or three people inside. Skillet Street Food in Seattle operates from an Airstream trailer with a full kitchen within. In short, a trailer can provide more options than a cart but is still less expensive than a truck.

Food Trucks

The food truck can carry any number of foods, and in some cases, more sophisticated equipment for storing, serving, cooking and preparing foods. Traditional food trucks were known for providing lunches, typically stocking sandwiches, kebobs, tacos, burgers and other standard fare for the lunch crowd. Many have expanded to include healthier vegetarian and vegan offerings, as well as not-so-healthy barbeque ribs. They do big business in corporate parks and places that have limited access to restaurants. Most food trucks are stocked from concessionaires, but there is a growing number that are associated with fast-food and midlevel restaurants. Sizzler and California Pizza Kitchen, for example, are putting together their own food trucks, as are other chains.

Larger than carts, trucks can carry more food and handle more business. However, food trucks need more space to park both when doing business and when off-duty. Essentially, there are two types of food trucks. One is the mobile food preparation vehicle (MFPV) where food is prepared as customers wait, hopefully not very long. The other is the industrial catering vehicle (ICV), which sells only prepackaged foods. An MFPV costs more than an ICV, and both cost more than a food cart. For example, a used hotdog cart may cost under $2,500, while a retrofitted used food truck would typically cost $30,000 or more. A newly designed food truck retrofitted MFPV with new all equipment could cost you upward of $100,000.

Complying with health-department rules and regulations can also drive up food-truck costs. Clearly, a smaller truck, a used truck, or a truck with limited equipment costs less. Therefore, it is up to you to determine whether you'll be cooking in the truck, preparing food somewhere else and serving from the vehicle, or selling prepared and prepackaged foods.

Gourmet Food Trucks

Basically the same as a food truck, the gourmet food truck takes food quality to a higher level. They are run by ambitious young chefs who offer cuisine not typically found in food trucks, such as specialty crepes, kimchi pork-fries, osso bucco, velvet cupcakes, or the chicken marsala meatballs with cilantro chutney found in the Great Balls on Tires gourmet food truck. Like Great Balls on Tires, many gourmet trucks have specialties and themes. In addition, they let their clientele know where they'll be parked through their websites and social media sites like Twitter. While food trucks need not have kitchens, gourmet trucks are more likely to have food prepared on the spot -- and high-end food at that. At the start of the new gourmet food-truck craze, Los Angeles was clearly the place to find such high-end dining. Now, however, New York has gained its share of such fancy food vehicles, such as the Rickshaw Dumpling Bar and The Dessert Truck founded by a former Le Cirque pastry chef. And as the concept of serving fine food rolls along, other cities from Portland, Ore., to St Louis and on down to Miami's South Beach are jumping on the foodie bandwagon with their own regional favorites. Food Network chef Ingrid Hoffmann's black and pink Latin Burger and Taco Truck, for example, has become quite the rage in Miami.

The Mobile-Catering Business

Mobile-catering trucks can be defined in a variety of ways and can overlap with mobile food trucks. Here are three differences: First, a catering truck is hired for a specific event such as a picnic, party or fair. Secondly, the person hiring the catering vehicle can select from a catering menu. Third, a catering vehicle can be used to transport the foods, which are then handed out from inside the truck or set up at the event or gathering, typically on trays or buffet style. This can mean providing the food to be served outdoors or parking and serving from the truck as the food trucks do. The differences are primarily in the manner of doing business. Nonetheless, the need for a reliable vehicle, licensing, permits, sanitary conditions, a business plan, and startup money are quite similar to the requirements of a mobile-food business.

One of the advantages of a mobile-catering business is that you are not risking as much in inventory because you are cooking and bringing food as ordered for the party. Therefore, you are covered for your food costs. You also have a specific destination, so you need not worry whether your favorite destinations will be busy. Typically, you are less dependent on good weather because many catered functions will be indoors. As long as you can get there with the food, you are usually OK. Of course, you do need to line up enough work to support your business. The difference between a mobile-catering business and other catering businesses is that you are using the mobility of the truck to show up rather than having a catering hall or venue.

Can You Handle the Heat?

While it may look easy, the food-truck industry takes a lot of hard work. For Scott Baitinger and partner Steve Mai who run the famous Streetza pizza truck in Milwaukee, Wis., a typical day starts three or four hours before taking the truck out on the road. "First we'll stop at Sam's Club or Restaurant Depot and pick up fresh ingredients. Then we go to our off-site commissary kitchen where we do all the prep work, which includes rolling the dough, making sauces, cutting the vegetables, and all of the things you really can't do in a 10-by-10 truck," explains Baitinger, who still works a day job in advertising but handles the truck on nights and weekends. Mai runs the weekday shifts except at times in the winter when no one in Milwaukee wants to trek outside in three feet of snow -- not even for pizza.

Then the Streetza team, which also includes a small staff on various shifts, parks at well-selected locations and prepare and sell food. At the end of a day, which is typically when they run out of food or the crowds have dissipated, comes the cleanup. "It's a lot like a restaurant cleanup with stainless steel cleaners, scrubbing, mopping, and making sure everything is in perfect shape to start again tomorrow," adds Baitinger.

Most mobile food business owners follow a similar set routine, whether it includes running the kiosk, cart or truck themselves or having employees run it. The routine, as is the case with Streetza, may include very early morning food shopping a few days a week, if not every day. Then there is stocking the kiosk or vehicle and heading to your destination(s). There is also a need to take some time during the day for marketing, usually via Twitter or another social media. Most mobile food vendors work roughly 10 hours a day. There are also days in which a business owner needs to sit down in a quiet office space, preferably at home with his feet up, and do all of the bookkeeping: paying taxes and bills, renewing licenses, and handling other fun paperwork responsibilities. The work is tiring and the day is long.

Can you handle such a day on a regular basis?

Planning Your Menu

If you look at the food trucks, trailers, carts and kiosks on the streets and at mobile catering menus, you'll find that almost anything edible can be served up street-side. Of course the big question is: How practical is it? This may account for the lack of baked Alaska carts out there, but rest assured, someone is probably selling it on some street corner.

Determining what to serve can be fun. But there are a lot of factors to consider when it comes to menu planning in the mobile food world. Here are a few:

• What do you know how to cook?
• What foods do you enjoy cooking?
• What foods are popular in your town, county, city or region?
• What ingredients are easy to get from wholesalers, markets or farms in your area?
• What foods are easy to transport to and from an off-site commercial kitchen?
• What can you prepare and/or heat up without much difficulty?
• What food(s) are ideally suited for your culinary expertise or allow you to try creative new recipes?
• What foods can customers easily carry around with them?
• What food(s) are potentially cost effective for you to sell?
• What foods are not being sold at 100 other food trucks, carts, kiosks or mobile caterers in your area?
• What times of day will you be open for business? Breakfast? Lunch? Dinner? Late night? All of the above?
• Are you going to specialize in one or two foods with several variations such as pizza, tacos or ice cream?
• Are you going to have a larger menu? Remember, a larger menu typically requires more space and may move you from a kiosk or cart to a truck or bus.

The Next Step: Perfecting Recipes

Unless you are buying prepared foods or have a chef providing you with foods, you'll want to plan your own recipes, work on them, re-work them, and have some taste tests. Consider your family and friends as your very own guinea pigs. Have parties, make a fun time of it, but get them to taste your foods and give you honest critiques. Don't be afraid of some criticism -- better to receive it from friends and family than from food critics and customers.

Once you've found a few favorites, make sure you can master the recipes. Write them down for future reference. Next, try some variations on a theme. Most mobile food entrepreneurs spend several months, often while waiting for their truck to be retrofitted and their backers to fork over some startup money, experimenting with various menu items.

Test Your Food Don't start out with foods you have not thoroughly tested. This means you need to perfect each recipe to be sure it has the following qualities:

• It is easy to make repeatedly in large quantities.
• It tastes consistently good.
• It is easy to serve.
• It travels well.

Buying Ingredients

Sourcing, as they call it in the food business, is the process of getting your foods and other ingredients. Like a restaurant, you need to determine your potential volume and buy accordingly. You always need to be planning in advance to shop or receive orders so that you are never out of necessities. If you are cooking, make a detailed shopping list of ingredients. If you are buying food from wholesalers, know how much you need, how much you can safely keep fresh, and how much you can sell before any food goes bad. You are better running out of food on a busy day than selling something that isn't fresh. Determining the right quantities to purchase is usually trial and error. Where to source your food, can be a factor in planning your purchases, schedule and offerings. Common sources include wholesale food distributors, food manufacturers, local and regional suppliers, greenmarkets and farmers markets, food cooperatives and shopping clubs like Costco or Restaurant Depot.

Food shopping is a huge endeavor for Adria Shimada, who looks for all organic products to use when making homemade ice cream for her Seattle food truck, the Parfait Ice Cream Truck. "I get everything from a different distributor. Milk and cream come from a local certified organic dairy farm about 80 miles away, and I get eggs in another nearby town from another organic farm. All of my produce is real fresh produce, I don't use flavors or extracts. For my mint ice cream, I use real spearmint from a farm in Carnation, Wash.," explains Shimada who scouted and tasted the food from many farms before finding her sources. Some deliver to her commercial kitchen, and others are found at farmers markets in Seattle where farmers bring the wholesale quantities she needs.

Related Article: Food Trucks 101: Where to Stock Up on Ingredients

Licenses and Permits

Before you finish putting your menu together, building your perfectly retrofitted cart or truck or setting up your kiosk, you need to get your licensing in order. While that's not one of the more exciting aspects of your entrepreneurial pursuit, it's one of the most important. It is, in fact, the overall commitment to more stringent health codes and sanitary regulations that have paved the way for food vehicles to generate such a mass following. The knock against food carts and trucks has long been that they were neither clean nor sanitary. Now, as that widespread perception changes, foodies and nonfoodies alike can enjoy their fare with confidence that those running the business are doing their utmost to meet, and surpass, sanitary requirements.

It would probably take several volumes to list and explain the numerous permits and licensing requirements because each state as well as most cities and even counties have their own. However, there are many universal concerns that need to be addressed. Typically, your local department of health will have the information you need. Therefore, you can get started by looking up the local health department online or in your local Yellow Pages and calling to inquire about the necessary requirements. The state or city will have specific requirements that must be met depending on your mode of operation.

If you are selling prepackaged foods, you are not considered a food handler and may have less stringent requirements than if you are actually preparing foods or even scooping ice cream. As long as food is unwrapped, you are typically considered to be a food handler and must meet specific regulations. While your cart or truck designer will not know the nuances of each city's requirements, he or she can usually help you meet health standards. Before you can hit the road, health inspectors will inspect your vehicle. What are inspectors actually looking for? In Washington, D.C., for example, an inspection is conducted to verify the following:

• Proof of ownership, proper identification and license (of the vehicle)
• Proof of District-issued Food Manager Identification Card
• Food-purchase record storage and record keeping
• That your depot, commissary or service support facility meets your vending unit operation needs
• Copy of license for the service support facility and/or a recent inspection report.

Food vehicles are typically inspected at least once a year by a health department inspector, sometimes randomly. The inspector checks to see how food is stored so that it does not spoil and that it is kept at the proper temperature. All food equipment as well as sinks and water supplies are checked. Commercial kitchens and garages in which food vehicles are kept are also inspected frequently and can be given high fines if they do not meet health and fire codes. Some have been shut down because of too many violations. Likewise, trucks and carts have lost their licenses over repeated violations.

Related Article: Clever Tips for Marketing Your Mobile Food Business

Your locations will play a major factor in your success. Your decisions on where to park for business purposes will depend on several key factors. First, you have to consider where you are allowed to park by law. Next, you want to ask yourself where in those areas can you find the customers who would like your foods and/or beverages. You also want to consider the prime hours for each potential location and, of course, the competition. Keep in mind that even if you've found the perfect lunch location on the map and you are allowed to park there, you may also find 19 other food carts and trucks lining the streets.

As more food trucks appear on the streets of major cities like New York, Los Angeles and San Francisco, it becomes much more difficult to find prime locations. Add in the fact that there will be business owners who do not want you parking near their establishments, and it can be a major challenge coming up with good places to do business.

Some places to consider parking are:

• Office parks . Find out if food trucks are allowed to park and during what hours. If you are lucky enough to find an office park without much competition, stake a claim or get a permit (if necessary) from the renting or leasing company to park there regularly. Breakfast and lunch hours should be your primary time slots.
• Empty lots . If you can find out who owns the property, make an offer to pay to park there on a regular basis. You can propose a flat daily rate, a percentage of your sales or both. Such an agreement can benefit both parties and give you a chance to establish yourself. Of course you need to find a lot where there is enough foot traffic to make it worthwhile.
• Shopping districts or malls . You may or may not be allowed to park on a public street alongside stores. Public streets are governed by local traffic laws. That being said, storeowners have a lot of say. Know your local ordinances. You may, however, be able to park near the parking lots or on an adjacent corner to a mall entrance. Malls will likely require you to have a permit to park on their property -- inquire within the mall. Established shopping areas may have little room for you to park, but newer areas, recently opened for business, may give you an opportunity. You may, however, have some growing pains along with the storeowners.
• Popular tourist locations . The tourist crowd is often a great demographic. However, the competition can be fierce near well-known attractions. Sure, you will find food carts around Central Park in New York City, but many have established themselves in specific locations, making it nearly impossible to break into their territory. In some cases, you may need to pay for the privilege of parking at a prime tourist attraction, and it can be pricey. The CupCakeStop owners pay several thousand dollars a month to park at the popular South Street Seaport in lower Manhattan.

You can also look for the opening of a new museum, gallery, theater, arena, visitor's center or anyplace that has just been added to the list of must-see places in your city.

• Sports venues . You may need permits to get close to an arena or stadium. However, if there is street parking for ticket holders, you can usually try to get on a street or a major roadway leading to or from the facility.
• Festivals and events . "We take the truck to local events like Market Square Day, which brings in like 80,000 people, which is a lot for a town of 25,000," says Michelle Lozuaway of Fresh Local in Portsmouth, N.H.
• Conferences and conventions . As is the case with festivals, if they are annual events, they are planned well in advance. Get to know where they are staged and lease your space well in advance or find a place on a public street that leads to the conference or convention center.
• Parks and beaches . You need permits to park in a park or on beach property. Check with the local parks commission to see if you can get such a permit and at what cost. Carts may have the upper hand here because they take up less space.
• Bus and train stations . If there is room, by all means consider these as busy locations where people may be hungry. Again, you have to know where you can park, so inquire. Also, get an idea of which hours will see the most foot traffic.
• College campuses . Off campus, public streets may be good for parking. However, unless it is a commuter school, you may not have a lot of traffic. To get on campus for a few hours a day, you need to get a permit from the school, and that may be difficult depending on the institution and its policies. If nothing else, you may be able to secure a spot when there are major school events, such as football or basketball games.
• The business district . Serving lunch in the middle of a busy business area can be terrific. However, in some cities, like New York, it's next to impossible to just slip into the mix without angering the competition (and you don't want to do that). Again, look for developing areas. Read about companies moving downtown or uptown or to a part of town that is now being built up or re-zoned for commercial use. Try to stake a claim in an up-and-coming area. You may struggle at first, as do many new businesses, but in time you may be the king of the hill.

Learning all about parking rules and regulations in your city and finding the best potential locations for your business takes due diligence. Even once you have found a few locations to your liking, keep on scouting around. Parking rules and regulations, as well as local ordinances, change often, so a good location one month may be gone the next. Also, note that as the seasons change, some locations become less viable, such as your great spot by the beaches on the Jersey shore, which will not be so great in the fall or winter months. So come up with other plans.

Startup Costs

There's no set formula for determining how much it costs to start a business. The field is broad, and there are too many possibilities. Clearly, a cart will typically cost less than a truck, and a prepackaged product such as ice cream, candy or cans of soda are typically cheaper than making your own foods or beverages.

For your purposes, you want to make a list of each of everything you need from the truck, cart, van, kiosk, bus and retrofitted equipment to marketing and promotion costs and home office equipment.

The range of costs varies greatly. You might spend $3,000 on a food cart, $500 on your initial food bill, $400 on permits and registrations, $200 on marketing, $300 on an attorney, and $300 for the first month to park and clean the cart. Tack on $300 in other miscellaneous costs, and you're off and running for $5,000.

On the other hand, you could spend $60,000 on a retrofitted food truck, $1,000 on initial ingredients, $2,000 on permits and licenses, $2,000 for the first month of a commercial kitchen rental, $300 for the first month of parking and maintaining the truck, $1,700 on kitchen supplies, $3,000 on marketing and promotion, $2,000 on packaging, $1,000 to set up a small home office for bookkeeping, and $500 in miscellaneous costs for a grand total of just under $75,000.

Compared to a restaurant, even $75,000 is not bad for starting a business. The point is, it varies greatly. You need to do the math before spending any money so that you do not run out before you get started.

The numbers will also vary depending on your needs. Do you need an oven? A rotisserie? Coffee pots? A grill? Hot-dog roller? The costs can range dramatically. Then, of course, you need to get and pay for all of the permits for the city or town you operate in and board of health approval. There simply is no exact number, but you can be pretty sure the vehicle is your biggest investment.

Your Concept and Look

Consider your brand or the character of your vehicle or kiosk.

That means having a consistent theme from the look of the truck to the napkins, menu and other accessories to the way you present the food. You can be pink and playful, dark and mysterious, ethnic, silly, or whatever suits your fancy -- but go with the theme. The Fojol Brothers of Merlindia created an entire world of their own that has generated a lot of media attention with their food truck in Washington, D.C. Their website at fojol.com is unique and entertaining. Foodies today are into the overall ambiance and brand of their favorite mobile food vendors.

The Louisiana Territory truck in San Jose, Calif., is built around the concept of serving Louisiana-style foods, including shrimp and sausage creole over rice and Louisiana smoked sausage. The Grilled Cheese trucks in LA are big and yellow, with a yellow menu featuring the signature Cheesy Mac and Rib and an online gallery of cheesy photos. Meanwhile, Van Leeuwen Artisan Ice Cream trucks in New York City are designed to be an old-fashioned ice cream parlor on wheels with freshly made ice cream and classic sundaes.

The days of the basic food cart or truck have given way to a new brand of vehicles with concepts, or themes, that carry through from exterior design to logos, menus and of course the foods. Your concept should be a means of distinguishing you from your competition and building your niche market. You might even name some of your foods in line with your theme, such as the Yellow Submarine in Miami which also sells the Lady Madonna sandwich, named from another Beatles song, or the Big Gay Ice Cream Truck in New York, which serves the Bea Arthur. Be clever and consistent (never confusing), and you can broaden your appeal and even draw media attention.

Resources Associations

• Convenience Caterers & Food Manufacturers Association
• DC Food Truck Association
• National Association of Concessionaires
• National Restaurant Association
• National Association for the Self Employed
• National Association of Specialty Food Trade
• Southern California Mobile Food Vendors

Mobile Food Industry Information

• Midtown Lunch
• Mobile Catering Business.com
• Mobile Cuisine
• Mobile Food News

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Food Truck Business Plan Template

Written by Dave Lavinsky

Food Truck Business Plan

You’ve come to the right place to create your food truck business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their food trucks.

Food Truck Business Plan Example & Template

Below is a template to help you create each section of your food truck business plan.

Executive Summary

Business overview.

Zesty Zane’s Food Truck is a new food truck located in Portland owned by local critically acclaimed chef, Zane Benedict. The menu will consist of popular food options that consist of burgers, sandwiches, gyros, and tacos uniquely made with the creativity and uniqueness that Chef Zane can offer. Chef Zane’s eclectic style and consistency make him a favorite among Portland foodies and his food truck will garner a loyal following amongst young professionals and college students.

Zesty Zane’s Food Truck will be located in the immensely popular food truck pod known as Cartopia. Chef Zane will receive lots of exposure by being a part of this community as there are plenty of neighboring food trucks, bars, nightlife, and entertainment options nearby. With the popular location of Cartopia and an impressive Instagram social media following, Zesty Zane’s Food Truck is destined to become a local go-to dining destination for anyone craving delicious, interesting fare at an affordable price.

Products Served

The following are the products to be offered by Zesty Zane’s Food Truck:

• Sandwiches & paninis
• Assorted non-alcoholic beverages

Customer Focus

Zesty Zane’s Food Truck will target customers in Portland who live, work, or socialize near Cartopia. This area is frequented by numerous young professionals, college students, and the late-night crowd who regularly eat at food trucks. Anyone seeking trendy dining options are the target customers of Zesty Zane’s Food Truck.

Management Team

Chef Zane has worked in the culinary industry for over ten years and is accustomed to the long, demanding hours of operating a kitchen. He attended culinary school in San Francisco and returned home to Portland to be a part of the world-renowned food scene that Portland has built for itself. After working under three award-winning chefs, Chef Zane is ready to venture out on his own and start his own business as a food truck.

Chef Zane Benedict will be the food truck owner and operator of his food truck. He will operate the food truck Tuesday through Sunday from 11:00 am until 1:00 am. Chef Zane will also employ two part-time cooks to assist him during peak hours of operation.

Success Factors

The following success factors will set Zesty Zane’s Food Truck apart from the competition:

• Exceptional cuisine made fresh with locally sourced ingredients.
• An eclectic menu that is unlike any other in the Portland food scene.
• Convenient location: Zesty Zane’s Food Truck will be located in a highly-trafficked food truck pod that is frequented by college students, young professionals, and night-life regulars.
• Delicious food at a good price. Zesty Zane’s food items will be cheaper than other food truck dishes without sacrificing quality.

Financial Highlights

Zesty Zane’s Food Truck is seeking $40,000 in debt financing to open its food truck. The funding will be dedicated for the purchase of the food truck, cooking supplies and equipment, working capital, three months worth of payroll expenses and opening inventory. The breakout of the funding is below:

• Purchase of food truck – $20,000
• Food truck kitchen supplies and equipment – $10,000
• Opening inventory – $2,000
• Working capital (to include 3 months of overhead expenses) – $3,000
• Marketing (website design and management) – $5,000

The following graph outlines the pro forma financial projections for Zesty Zane’s Food Truck:

Company Overview

Who is zesty zane’s food truck.

Zesty Zane’s Food Truck is a startup food truck business located in Portland, Oregon. The menu offerings are eclectic, made-to-order, bistro-type dishes served fresh and fast in the entertainment district of Portland. The ingredients are locally-sourced from independent food growers and artisans in and around the Portland region. The dishes are incorporated with an ingenious twist to commonly known popular food menu items. The menu options are simple dishes commonly seen at food trucks, but Chef Zane adds his own spin to the typical fare – sandwiches, gyros, burgers, and tacos all made his way unlike any other food establishment.

Zesty Zane’s Food Truck is owned and operated by Zane Benedict, a local Chef classically trained in culinary school and under the most prestigious chefs in Portland. Chef Zane is known for his creativity, consistency, and quickness in the kitchen and his dishes receive multiple positive reviews in the restaurants Zane has been employed. Chef Zane specializes in fine French, Italian, and Mediterranean cuisine with a creative twist not typically found in other restaurant establishments.

Zesty Zane’s Food Truck History

After graduating from culinary school in 2008, Chef Zane Benedict worked as a sous chef in three different restaurants in Portland. All of the chefs Zane worked under were award-winning, locally-acclaimed chefs that frequently trained their apprentices to prepare dishes up to their expectation and standards.

Chef Zane learned a great deal from these chefs and garnered a reputation himself for his creativity and consistency. Now that Zane feels he has learned as much as he can from the senior chefs, he would like to venture out on his own and start his own business. Due to the large amount of capital required to open a full-scale restaurant, Chef Zane decided a food truck business was the most cost-effective option for his operation.

Since incorporation, Zesty Zane’s Food Truck has achieved the following milestones:

• Developed the food truck’s branding image, social media, and website.
• Has a soft hold on a used food truck that recently went out of business.
• Developed and finalized the menu of the dishes Chef Zane will serve.
• Obtained a food permit license to be able to prepare and sell food and drinks in Portland County.
• Obtained a sales and use tax permit for use in Portland County.

Zesty Zane’s Food Truck Products

The following are the types of menu items Zesty Zane’s Food Truck will produce:

Food Truck Industry Analysis

Food truck vendors will continue to perform well over the next five years, benefiting from consumers with deeper pockets who are able to spend on pricier gourmet food options. Revenues are expected to increase to $1.4 billion during this time period.

Food Truck industry operators are expected to continue to experience growth, as generally positive economic conditions and momentum from the gourmet food movement propel growth.

Consumers nowadays demand higher-quality food, a wider variety of styles and tastes, better presentation and, most importantly, more healthy menu options. Therefore, operators that include healthy options on their menus will be best situated for success over the next five years. Vendors that continue to offer unique food options will also be in a strong position by carving out a niche and developing a loyal customer base.

The food truck industry will also benefit from an increase in the urban population, which is expected to comprise the majority of the US population in five years. The food truck industry benefits from agglomeration because it relies on high foot traffic. Additionally, urban dwellers are also more likely to purchase meals rather than cooking at home due to their above-average incomes and limited spare time.

Customer Analysis

Demographic profile of target market.

Zesty Zane’s Food Truck will target the population of Portland that frequently dines in the entertainment district. There is a large food truck area of Portland known as Cartopia, where Chef Zane will set up his business. This area is home to numerous dining establishments, nightlife, bars, clubs, and food trucks. The target market of this area are usually young professionals and college students who have disposable income.

The precise demographics for Portland, Oregon are:

Customer Segmentation

Zesty Zane’s Food Truck will primarily target the following customer profile:

• Local residents of Portland who partake in late-night activities such as socializing with friends or bar-hopping
• Business professionals that work and reside in the Portland Cartopia area – law offices, hospitals, clinics, insurance agencies, retail, and schools
• College students who are in search of fast, cheap, and trendy eats

Competitive Analysis

Direct and indirect competitors.

Zesty Zane’s Food Truck will be competing with other food trucks in the Portland community. A profile of each competitor is below.

Potato Champion

Potato Champion is a local favorite of Portland foodies that is also located in Cartopia. Started in 2008, Potato Champion quickly established itself as a fan favorite for late night food. Potato Champion serves a limited menu of hand cut, twice fried Belgian style fries, a variety of dipping sauces, and their own version of the Canadian classic Poutine, as well as other fry related dishes. They pride themselves in using the highest quality ingredients and focus on an inventive menu that combines tastes from all over the world with one of the most popular foods found on the globe, the french fry.

Potato Champion is open for lunch, dinner, and late-night. They are available for catering and delivery through Postmates. Followers of Potato Champion are also able to purchase swag from their store that includes music, bags, pins, and hoodies.

Started by John Eads in 2009, Pyro Pizza was built out of a 8’x16’ food cart that he custom-built with a cast iron wood fire oven. Aside from wood fired pizza, John also makes his own sodas using all real ingredients and natural cane sugar. John’s belief is that good ingredients make good food. His crew makes many components in-house and sources regional flour, pepperoni, sausage, blue cheese, soda ingredients, and seasonal produce all from Portland businesses and farms. In 2015, Pyro’s expanded to a new sandwich cart, Pyro’s Wicked Wiches – a scratch-made sandwich, soup, chips and cookie food cart.

Pyro’s serves an assortment of wood fire pizzas made from scratch. Their choices are margherita, marinara, arugula and mushroom, pepperoni, quattro formaggi, fennel sausage, veggie bianca, breadsticks, salads, and sodas.

Chicken and Guns

Chicken and Guns is another local favorite among Portland foodies. Also found in Cartopia, Chicken and Guns serves up Latin American chicken, wings, tacos, salad, soup, and their “guns” are crispy seasoned potatoes. The chicken is served by the quarter, half, or whole bird. Another item they are acclaimed for is their peruvian aji sauce, habanero carrot sauce and chimichurri sauce. They have been named the best fried chicken in Portland by the PDX Eater.

Chicken and Guns is open everyday from 11:00 am to 10:00 pm for takeout and delivery options. With a large Instagram and social media following, there is always destined to be a line at the Chicken and Guns food truck.

Competitive Advantage

Zesty Zane’s Food Truck offers several advantages over its competition. Those advantages are:

Food Truck Marketing Plan

Zesty Zane’s Food Truck will offer a unique value proposition to its clientele:

• Delicious food made fresh with locally sourced ingredients using exquisite techniques.
• Located in the ultra-hip food truck area known as Cartopia.
• Great food at a great price. The menu offerings of Zesty Zane’s Food Truck will be accessible to customers of all walks of life.

Promotions Strategy

The promotions strategy for Zesty Zane’s Food Truck are as follows:

Social Media

Zesty Zane’s Food Truck’s main source of marketing will be through social media, primarily their Instagram page. Chef Zane has become adept at taking appealing photographs of his dishes. He will post pictures of his menu and add details on the location and hours of operation. His food truck account already has over 3,000 followers and he posts daily “Coming Soon” teaser photos.

Zesty Zane’s Food Truck will be parked in the immensely popular food truck hub known as Cartopia of Portland. There are dozens of food trucks located in this pod and there is always a crowd of people. Cartopia hosts bands, art shows, shopping events, and other social gatherings to enhance the entertainment vibe of the pod. By being part of Cartopia, Zesty Zane’s Food Truck will receive lots of exposure and traffic.

SEO Website Marketing

Zesty Zane’s Food Truck plans to invest funds into maintaining a strong SEO presence on search engines like Google and Bing. When a person types in “local food truck” or “top food trucks in Portland”, Zesty Zane’s Food Truck will appear in the top three choices. Zesty Zane’s will also invest in their website also to ensure that it is user friendly, always up to date, and displays professional photographs of its menu items and location.

Third Party Delivery Sites

Zesty Zane’s Food Truck will maintain a presence on sites like GrubHub, Uber Eats, Doordash, and Postmates so that people looking for local food with the option of delivery will see Zesty Zane’s listed.

The pricing of Zesty Zane’s Food Truck will be moderate and on par with other food trucks so customers feel they receive value when purchasing their menu items.

Operations Plan

The operations plan for Zesty Zane’s Food Truck is relatively simple as its overhead and cost is small. The functional roles for its employees are as follows:

Operation Functions:

• Chef Zane will run the food truck operation. He will be in charge of inventory, menu creation, food truck marketing, customer service, and bookkeeping. Chef Zane will work every day that he chooses to open the food truck. Chef Zane plans on operating the food truck Tuesday through Sunday 11:00 am to 1:00 am.
• Two part-time cooks that will alternate helping Chef Zane during the hours of operation. As business picks up, there will be two cooks at the same time assisting Chef Zane during peak hours.

Milestones:

Zesty Zane’s Food Truck aims to open in the next 3 months. The following are the milestones needed in order to obtain this goal.

4/15/202X – Purchase food truck

5/1/202X – Finalize menu

5/15/202X – Social media and advertising campaign begins

6/1/202X – Finish cleaning up the food truck and prepare it for operation

6/10/202X – Purchase food and drink inventory, stock truck, and park it at Cartopia

6/11/202X – Grand Opening of Zesty Zane’s Food Truck

Zesty Zane’s Food Truck will be owned and operated by Chef Zane Benedict.

Chef Zane Benedict, Food Truck Owner

Chef Zane Benedict is a Portland native who attended culinary school in San Francisco and returned to Portland to become a part of the world-renowned food scene Portland is uniquely known for. Zane was trained under three different chefs at fine dining establishments in downtown Portland and was awarded Best Sous Chef of Portland in 2017. Chef Zane has won two local culinary competitions, placed runner-up in a statewide competition, and participated in a cooking competition show on the Food Network.

Chef Zane has received numerous awards for his creativity and consistency of his food while being able to prepare dishes in a short amount of time. His ability to prepare food under pressure allows him the unique skill of serving numerous customers without having them undergo long wait times. This will keep customers happy and coming back for more.

Financial Plan

Key revenue & costs.

The revenue drivers for Zesty Zane’s Food Truck will come from the menu items being offered daily.

The cost drivers will be the ingredients and products needed to make the menu items (oil, bread, meat, chicken, produce, drinks) as well as the cooking materials (pots, pans, bowls, plates, utensils, etc.). Other cost drivers will be the overhead expenses of payroll for the part-time employees and propane for the food truck.

Funding Requirements and Use of Funds

• Food Truck Marketing (website design and management) – $5,000

Key Assumptions

The following table outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the business loan.

Initial Number of Customers Per Day: 50

Average Menu Item Cost: $9.00

Average Order per Customer: $15.00

Annual Cost for Maintenance of Truck: $10,000

Financial Projections

Income statement, balance sheet, cash flow statement, food truck business plan faqs, what is a food truck business plan.

A food truck business plan is a plan to start and/or grow your food truck business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your food truck business plan using our Food Truck Business Plan Template here .

What Are the Main Types of Food Truck Companies?

There are a variety of types of food trucks, each specializing in a specific type of cuisine or food item. There are food trucks that sell burgers, cookies, ice cream, tacos, pizza, sandwiches, salads and more.  

What Are the Main Sources of Revenues and Expenses for a Food Truck Business?

The primary source of revenue for food truck businesses is its food and beverage sales. 

The key expenses for a food truck business are food costs, salaries, and transportation expenses. 

How Do You Get Funding for Your Food Truck Business?

Food truck businesses are typically funded through small business loans, personal savings, crowdfunding and credit card financing.  A well-crafted food truck business plan is essential to securing funding.

What are the Steps To Start a Food Truck Business?

Starting a food truck business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Food Truck Business Plan - The first step in starting a business is to create a detailed business plan for your food truck that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your food truck business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your food truck business is in compliance with local laws.

3. Register Your Food Truck Business - Once you have chosen a legal structure, the next step is to register your food truck business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your food truck business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Food Truck Equipment & Supplies - In order to start your food truck business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your food truck business. Food truck marketing includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful food truck business:

• How to Start a Food Truck Business

Where Can I Get a Food Truck Business Plan PDF?

You can download our free food truck business plan template PDF here . This is a sample food truck business plan template you can use in PDF format.

Other Business Plan Templates

Catering Business Plan Template Bakery Business Plan Template Coffee Shop Business Plan Template Event Venue Business Plan Template

How to start a profitable food cart business

January 7, 2022

Agata Kaczmarek

Street food is all the rage right now, appealing to the consumer and the business owner. Today’s world sees consumers in a hurry from one place to another, who hope to grab a quick, yet delicious bite to eat. Food carts with their lower cost and delightful meals fill the gap perfectly.

To an entrepreneur, the idea of a food cart means having autonomy of owning a business without the overhead costs. In this business, there is no need for the expenses associated with owning a brick-and-mortar restaurant, with four walls that keep the company rooted to one spot. In addition, the simplicity of a food cart and the meals it offers fills the gap to potential consumers that a restaurant cannot.

Whatever the reason for wanting to start a food cart business, whether it’s the ultimate dream of an aspiring chef or an entrepreneur getting the chance at being their boss, there is the question of profitability.

Not only is profitability possible, but it can exceed expectations if you can find a prime location, build up a good customer base, and keep costs as low as possible. Food cart owners can expect to generate between $500 to $3,000 in sales each day.

Food Cart Start-Up Costs and Other Considerations

Launching a successful business is an involved process that requires research and forward-thinking. Simply purchasing the food cart is not enough to ensure the business thrives and turns a profit. A couple of questions will help start the process of crossing the t’s and dotting the I’s.

Is a food cart the right business for me?

The decision to get into the foodservice industry is made, but the next question is usually what kind of business—food truck, food cart, or restaurant. Of course, there are pros and cons to all of these types of businesses, but it comes down to personal preference and answering some questions:

• What kind of food will the business serve?
• What type of clientele is the business looking to serve?
• What food has a good profit margin?
• What food is the most popular in the area?
• What type of food business will attract the most clients?

Food carts come with some advantages, such as serving fresh food fast to their clients in an area where a restaurant or truck isn’t feasible. However, despite the quick turnaround of food at a food cart, they are hardly fast food, which makes them so desirable to people who find themselves in need of a quick meal.

How much does it cost to start a profitable food cart business?

Businesses come with a wide variety of start-up expenses, some of which continue once the business is operational. Though the capital needed to start up a profitable food cart business is much lower than others, there is a list of potential expenses.

• An equipped food cart will run anywhere from $2,000 to $5,000, depending on the size and the type of food it will serve.
• The ingredients and first food stock necessary to start the business will run anywhere between $500 and $1000 depending on the food type.
• Cities require permits to operate a business that may run upwards of $600.
• Marketing a business is a must to start, and though the expense is based on personal preference, it’s important to set aside at least $500 to start.
• Parking and cleaning the cart will run around $500 for the first month.
• Always expect miscellaneous expenses for a first-time business of around $500.

The total for starting a food cart business will run anywhere between $5,100 and $8,100. Costs to start a profitable food cart business are significantly smaller than they are for any other foodservice business such as a restaurant or food truck. Still, they must be considered in the decision.

Operating Expenses Associated with a Profitable Food Cart Business

Start-up costs are only the beginning, with other operational costs coming in along the way. Whether the food cart gets a client or not, fixed operational expenses will always come up and need to be understood to make the business a profitable one.

• Food cart insurance for liability reasons
• Permits (depending on the area the food cart operates in) such as business permits and foodservice permits
• Advertising

Fixed operational expenses cannot be avoided as an integral part of running a business. A food cart business may not have as many operational costs as a permanent business such as a restaurant, but the estimated costs can run anywhere between $1000 and $2000 a month.

Other variable expenses are also a part of running a food cart, though these are a little harder to estimate. They are also unavoidable, but necessary for a business to thrive. Some of these variable expenses are listed below.

• Supplies such as replenishing food items, condiments, and other cooking essentials.
• Depending on the food cart, the cost of running a generator (for instance, in the case of cooking hot dogs or other hot food items)
• Tires, for a movable cart
• Transportation costs
• Maintenance

These variable expenses require a little more work to project. This food truck spreadsheet has all the potential costs associated with such a business and will work with you to make the best estimates. Variable operational costs will change from month to month depending on how well the business is going and any unforeseen circumstances such as repairs and maintenance costs, but your primary variable costs are going to be directly tied to your food. According to Restaurantengine , typical COGS for a food truck or food cart range between 25-35% of sales so you’ll want to shoot to stay within that range in order to break even.

A food cart, as a movable business rather than a permanent restaurant, has to get transported to and from the desired business location, running up the costs of variable expenses. Provided business is going well, and the right food niche has been found, these costs will become inherent in doing business without posing undue stress.

Food Cart Potential profit

The spreadsheet mentioned above helps calculate a potential profit, which has a typical range of 6-9% . So, for a quick estimate from our earlier daily sales range of $500 to $3,000 that puts annual profit at a wide range of $11,000 to $98,000 which would be on the very high end and unlikely because you can’t have high traffic every day.  Though most food cart owners take on the job for the passion of selling food rather than the money, it is an important factor in staying afloat.

Potential profit will always depend on the area and how well the food niche was chosen. Before investing in the business, it’s important to answer as many questions as possible concerning the location, the necessary steps for opening the business, and the type of food that would sell best.

The beauty of a food cart business is the ability to change things around as needed. With small adjustments, it’s possible to work toward the best food niche within the location or change the location altogether.

Food Cart Financial Summary

There is money to be made from running a food cart business especially with the help of our food truck projection spreadsheet . Estimating anywhere between $5,100 and $8,100 in upfront costs, it’s entirely possible to work toward the goal that others have set such as almost half a million in a year. Though it’ll take time to get there, the projections spreadsheet will help map the plan toward those numbers. Here is a screenshot from our spreadsheet template:

Should any further questions come up concerning the use of the spreadsheet, this demo video will help walk through the entire process in order to get up to 5 years’ worth of estimates along with income statements, balance sheet, and cash flow forecast. 

BannerPhoto by Seferikalbiye from Pexels Top right Photo by Meruyert Gonullu from Pexels

About the Author

A professional writer for the past couple of years, Agata holds a passion for writing from early childhood. Specializing in writing informative articles and blogs on various topics, Agata's focus is on personal finance.

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How to Start a Food Cart Business: Detailed Steps

There is no better time than the present to start a food cart business. Street food is no longer an option people only grab when they are in a hurry or have limited options. Food carts, food bicycles, and food trucks have become popular, sought-out options for hungry customers around the globe. In the United States,  mobile food businesses represented a 1.4 billion market in 2022 and are projected to continue growing. With all the potential surrounding mobile food markets, it’s easy to see why learning how to start a food cart business has become desirable for entrepreneurs and beginners.

Let’s explore some of the things to consider when starting a food cart with wheels: 

Popular Food Cart Items

Mobile food cart offerings have come a long way over the years. Historically, a street food cart kitchen was associated with menu items like burgers, hot dogs, popcorn, doughnuts, or ice cream. While classic menu items are still popular and offer high-profit margins , there is also a significant market for other types of food like sushi, tacos, empanadas, nachos, french fries, crepes, coffee/tea, and shaved ice, among others. The popularity of food cart offerings largely depends on location, availability of ingredients, and customer type.

Food Cart Business Benefits and Requirements

Starting a food cart business has many benefits, like becoming your own boss with low startup costs, minimum experience, less risk, and location flexibility. Mobile food businesses also have the potential to bring in huge profits and business growth. Although there is unlimited potential for success, a lot of hard work and research are involved in reaching these goals. For motivated people, starting a food cart with wheels can be a true entrepreneur’s dream.

Legal Requirements for Starting Food Cart Business

Local legal requirements are one of the most important areas to research when starting a mobile food business. The principal regulations to research are health, vehicle requirements, and zoning laws. Permits and license requirements will vary depending on the type of street food cart purchased. Every city, state, or county will also have unique rules and laws that mobile food carts must follow to avoid expensive fines or closure.

Food Bike or Street Food Cart?

Both food bikes and carts are desirable options when learning how to sell street food. Deciding between purchasing a bike or a  street food cart will depend on multiple factors such as space requirements, budget, and menu options. A food bike is the most mobile, eco-friendly option, while a food cart offers more storage, equipment, and selling space.

Street Food Stand Budget

Building a budget for a food cart business is another crucial step toward success. Business budgets are updated regularly and include both one-time and recurring costs. A budget plan will include everything from the initial street food stand purchase to recurring food supplies, equipment, insurance costs, permits, payroll, etc.

Building A Food Cart Business Plan

A comprehensive business plan is one of the most vital steps in starting food cart ideas. A business plan is a roadmap to follow from the beginning and throughout. It should include information about a company, including, but not limited to, industry, customer, and competitive analysis, marketing and operations plans, legal structure type, and financial details on startup costs, projected expenses, and returns.

How To Start a Food Cart Business Marketing Plan/Strategy

Marketing is any business’s promotional voice, which means a strong marketing plan can make or break the profit margins. A food cart business marketing plan should be a part of the business plan and will include how to spread the word about the cart and the products offered through channels like word-of-mouth, social media, print, influencer marketing, and paid ads. 

Finding The Best Food Cart Equipment

The operation’s heart is the equipment that runs a street food stand. No matter the budget, a mobile food vendor should invest in the highest quality cart they can work into the budget. The initial investment in top-quality equipment will save costs over time in repairs or upgrades. It also protects the business from potential income loss from accidents, faulty gear, or functionality not up to code. There are also important factors to consider, like power availability for locations and the size of cold food storage. Newer street food cart models may offer better amenities like solar panels for power and larger storage areas. 

How to Sell Street Food 

After completing all the planning and paperwork, it’s time to find the perfect selling locations. Ideal locations will be available for vendor permits, cost-effective, and offer high traffic of potential customers. There are many ways to find the best spots, by exploring the local scene, researching online, or joining food vendor advocacy groups and social media forums.

New mobile food cart businesses need to get exposure to their brand and products as fast and cost-effective as possible. Joining the vendor list at local events like farmer’s markets, fairs, and festivals is an excellent way to get early exposure and sales. Participating in local events is a great way to get featured on more established social media pages and promotion sites. These events also allow food cart owners to meet and network with fellow street food cart vendors in the area who know their way around the local scene, which is invaluable.

Ferla Bikes Love: User Reviews that Win Hearts

“I was quite impressed with the customer service. I called in just to ask a few questions and Steven handled my call with expertise and in a friendly manner (no rush), this is a company I can trust. The support really gave me relief! The only thing I can suggest is to have extra bike accessories ready to ship. I’ll be glad to continue to with my purchases of my very own Ferla X soon. Can’t wait to launch my business.”

— Prince Awhaitey    ★★★★★

“I am a small business owner and currently own the Ferla Glacier X. We’ve had our bike for over 2 years now and just recently needed a replacement part. Steven at Ferla was efficient in helping get the part to me in time for my next event. Someone from the Ferla team went out of their way to hand deliver it to UPS and ship it over night. I appreciate the great communication and timeliness of this matter. Without their help I would’ve lost out on all of that weekends revenue.”

— Taylor Tinsley    ★★★★★

A few reviews from instagram:

          View this post on Instagram                       A post shared by BRAVO TOAST (@bravo.toast)

          View this post on Instagram                       A post shared by Amy Mucha | Chief Pop Artist at Daisy Pops (@daisypops_cakepops)

          View this post on Instagram                       A post shared by • Tizzy K’s Cereal Ice Cream • (@tizzykscerealicecream)

Benefits of Ferla Food Carts and Bikes

As discussed above, finding top-quality equipment is one of the best investments a new street food stand can make. Ferla carts are not only the most innovative, technologically advanced, sustainable options for sale on the market but are also affordable and offer a variety of benefits, including: 

• Temperature Controlled Battery-Operated Freezers
• Draft Or Ice Cream Dispensers
• Light And Flexible Solar Panel Systems 
• Pedal Assist
• Extendable Counter Spaces
• Customizable Grills
• Customizable Coffee Brew Set Ups
• All Terrain Tires
• Extensive Storage Space Options

At Ferla, we understand what mobile food businesses need and support them with our customizable food carts and bikes. No matter what street food stand is vending, Ferla will work with a company to create a unique cart that will fulfill every need for many years.  

Sample Food Cart Business Plan

Food cart business plan sample.

If you are a startup entrepreneur, I am sure you must have made adequate preparation towards starting that food cart business, and you are familiar with all the requirements needed to start a food cart business.

Perhaps, you want to write a business plan because you need it to source for a bank loan.

Well, the purpose of this article is not to tell you why you need a business plan.

This article is here to give you a template to help you write a business plan for your food cart business .

BUSINESS NAME: Stevens’ Foods

• Executive Summary
• Vision Statement
• Mission Statement
• Business Structure
• Products and Services
• Market Analysis
• Target Market
• Sales and Marketing Strategy
• Financial Plan
• Exit Strategy

EXECUTIVE SUMMARY

Stevens’ Foods is a fully registered food cart business which will be established in Ann Arbor, Michigan, United States. This food cart business will offer food services to a broad range of clients ranging from corporate clients to the individual clients. We will offer various types of food delicacies with unique taste to nourish our customers.

MORE: Starting a Food Kiosk Business Plan

Stevens’ Foods will be owned by Jones and Catherine Stevens, and it will be situated in a building facility located in a strategic location in Ann Arbor, only a couple minutes bus-drive away from the University of Michigan. In due time, we will be able to execute our plans of offering franchise sales of our food cart business in the United States.

We have ensured we give adequate attention to hygienic practices and packaging of our products. We have made this possible by first obtaining all the relevant and statutory licenses and permits from the health departments in Michigan.

VISION STATEMENT

At Stevens’ Foods, our vision is simple and straightforward: To become among the top 10 leading food cart businesses in the whole of the United States. We will accomplish this vision by employing the right staff; employing the perfect sales and market strategy to our business; and most important, by serving our customers quality and unique food delicacies.

MISSION STATEMENT

Here at Stevens’ Foods, our mission statement is to establish our business to become a renowned brand that especially takes interest in readily fulfilling the needs of our esteemed customers. We will offer our products to our customers whenever and wherever.

We will also establish our business into a successful business franchise and give trainings and support to prospective franchisees to help them successfully establish their own food cart business anywhere in the United States, under our brand name.

BUSINESS STRUCTURE

We will start Stevens’ Foods as a promising food cart business, and overtime, we will grow it big into a renowned business that also offers franchises for sale to prospective franchisees. We will grow big into a leading food cart business in the United States. Because of our vision, we will do well to hire employees that are qualified, competent, and motivated, who are ready to share our vision and take part in something huge.

The following are the key employees we will employ at least for the first few years before we will review our business plan:

– Chef (caterer) – Sales Person – Office Administrators – Drivers – Cashiers

Jones Stevens and his wife Catherine will be the owners.

PRODUCTS AND SERVICES

Stevens’ Foods is committed to nourishing its customers with unique and good quality foods that will keep them happy. Because of our strong desire to be counted among the leading 10 food cart businesses in the United States, we will also offer both full-services restaurants as well as quick-services to ensure we leave no stone unturned when it comes making our customers happy and accomplishing our vision.

We will offer a broad range of pizzas that will include a variety of sizes, as well as several other snacks and assorted meals and drinks (such as fruit juice, wines, and other beverages).

MARKET ANALYSIS

There is an ever growing trend in our today’s society. People are becoming much busier by the day, the 24-hour period is no longer sufficient enough to complete all the daily tasks let alone time allotted for cooking meals.

As a result, the growth of fast foods is on the high. The food cart business richly caters for the needs of all people.

TARGET MARKET

The food cart business is one that allows you to operate anywhere within the area you are doing your business without any sort of restriction, unless any restriction as made known by law. The scope of our target market is vast, and we will not put too much limit on where to take our business.

The following are some key areas or places we will operate our food cart business:

– Tourism sites. – Institution campuses. – Carnival grounds. – Construction sites. – Relaxation areas. – Small and big businesses locations. – Schools of all sorts. – Office complexes. – Industrial areas. – Stadia and other sport facilities. – Hospitals and Clinics.

In fact, the above list only outlines a few of the places we will target. As long as there is a gathering of people anywhere, we will surely stretch our services to that area.

SALES AND MARKETING STRATEGY

Our business vision is again, to become one of the leading food cart businesses in the United States. We will ensure we make this vision a reality by making sure we create good sales and marketing strategies.

First, we will send introductory letters to business corporations, public and private residences and others. We will also write and submit proposals to event management companies, schools, small and big business corporations, and management of public facilities, requesting to be their official number one food vendor.

We will register our business and the products we have to offer on local directories. We will publicize our business on newspapers, magazines, social media platforms, and television and radio stations. FINANCIAL PLAN Pricing Strategy

On a general note, the prices of food sold in food cart are a little less than the price of foods sold in the conventional food restaurant. We will do well to ensure we do not sell our foods at prices above the typical prices of food in the industry. This does not however mean that we will sell our food at very low prices that will not guarantee us profit.

In fact, we will not by any means reduce the quality of our products just to fit within the typical prices in the industry. We will ensure to keep the prices of our products reasonable and affordable by our customers. Payment Option

We will accept payment for purchases in the following payment options.

– By cash – Through the use of Point of Sales (POS) machine. – Through mobile money.

Startup Costs

The total startup investment sum required amounts to $400,000.

Sources of Funds

The startup investment sum will be sourced from the owners, Jones and Catherine Stevens; and from our Bank in the form of a loan. $200,000 out of the $400,000 will be generated from our personal savings and investments, while the other $200,000 will be obtained as loan from our Bank.

EXIT STRATEGY

Of course we do not see our food cart business heading in the exit direction because we have made enormous preparation and plans to grow it from scratch into a renowned business and a leading franchise in the industry.

However, in the event that Stevens’ Foods decide to head the exit door, we will not completely fold up the business, rather, we will sell Stevens’ Foods to any of our top franchisees. This is what a food cart business plan should look like, share.

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Hot Dog Cart Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their hot dog cart businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a hot dog cart business plan template step-by-step so you can create your plan today.

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What is a Hot Dog Cart Business Plan?

A business plan provides a snapshot of your hot dog cart business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Hot Dog Cart

If you’re looking to start a hot dog cart business, or grow your existing hot dog cart business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your hot dog cart business in order to improve your chances of success. Your hot dog cart business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Hot Dog Cart Businesses

With regards to funding, the main sources of funding for a hot dog cart business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for hot dog cart businesses.

Finish Your Business Plan Today!

If you want to start a hot dog cart business or expand your current one, you need a business plan. Below are links to each section of your hot dog cart business plan template:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of hot dog cart business you are operating and the status. For example, are you a startup, do you have a hot dog cart business that you would like to grow, or are you operating a chain of hot dog carts?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the hot dog cart industry. Discuss the type of hot dog cart business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of hot dog cart business you are operating.

For example, you might operate one of the following types of hot dog cart businesses:

• Hot Dog Kiosk Cart: this type of hot dog cart business is operated via kiosk carts, which are gas-powered with low-heat burners and have plastic awnings or umbrellas that the vendor stands under.
• California Hot Dog Cart: due to strict regulations, hot dog carts operating in California must have four sinks (as opposed to the usual two), refrigerators, thermometers and sneeze guards. This makes the carts more expensive than typical kiosk carts.
• Hot Dog Vending Trailer: this type of business operates out of a trailer as opposed to a cart. The trailer is hitched to a car or truck to be relocated, and it is totally enclosed, so it can operate year round. Because there is more space inside, there is room to prepare and store other types of food. Trailers typically come with coolers for beverages as well as propane-fueled grills.
• Hot Dog Food Truck: this type of hot dog cart can hold more food and drink than trailers or kiosk carts. The truck portion cannot be separated from the cart portion.

In addition to explaining the type of hot dog cart business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, total number of hot dogs sold, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the hot dog cart industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the hot dog cart industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your hot dog cart business plan:

• How big is the hot dog cart industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your hot dog cart business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your hot dog cart business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: working professionals, students, tourists and event attendees.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of hot dog cart business you operate. Clearly, working professionals would respond to different marketing promotions than students, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most hot dog carts primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other hot dog cart businesses.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes grocery stores, restaurants and food trucks or other kiosk carts. You need to mention such competition as well.

With regards to direct competition, you want to describe the other hot dog cart businesses with which you compete. Most likely, your direct competitors will be hot dog carts located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What types of hot dogs and other food or beverages do they sell?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide better hot dogs?
• Will you provide types of hot dogs or other food, toppings or beverages that your competitors don’t offer?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a hot dog cart business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of hot dog cart company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to hot dogs, will you provide vegan hot dogs, burgers, sodas or any other products?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your hot dog cart company. Document your location and mention how the location will impact your success. For example, is your hot dog cart business located in a busy retail district, business district, event district, university, park, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your hot dog cart marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your hot dog cart business, including performing inventory and purchasing, preparing hot dogs, selling hot dogs, transporting and maintainancing the hot dog cart.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sell your 1,000th hot dog, or when you hope to reach $X in revenue. It could also be when you expect to expand your hot dog cart business to a new location or city.  

Management Team

To demonstrate your hot dog cart business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing hot dog cart businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing hot dog carts, other food kiosks or restaurants, or successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you sell 1,000 hot dogs per month or per quarter? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your hot dog cart business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a hot dog cart business:

• Cart acquisition and build-out
• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your cart location permit or the menu of food and beverages you will sell.  

Putting together a business plan for your hot dog cart business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the hot dog cart industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful hot dog cart business.  

Hot Dog Cart Business Plan FAQs

What is the easiest way to complete my hot dog cart business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Hot Dog Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of hot dog cart business you are operating and the status; for example, are you a startup, do you have a hot dog cart business that you would like to grow, or are you operating a chain of hot dog cart businesses?

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How To Start A Food Cart Business Philippines

How to start a food cart business in the Philippines? This business concept is very hot in the Philippines currently. When we look at the stock market, the economy, and small businesses, we can see that many industries have started to grow, including the food industry, which is excellent news for the Philippines.

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How To Start A Food Cart Business In The Philippines

You can rent a food truck, buy a new one, renovate a used model, customize it for your business or choose a van, shopping cart, or trailer for the store(if you plan to open one).

You could also find more cost-effective food preparation and storage options, such as renting kitchens at a nearby restaurant, school, church, or other location with health inspections and licenses.     

At the very least, business owners will need a business license and a hospitality permit (more on this later). In addition, most lenders and investors will ask about your business plan before taking out a loan or investing in your food truck business.     

If you need additional funds, it is best to start a crowdfunding campaign asking your family and friends for support. Then, you are more likely to get a loan interest-free from them, but this is best discussed with a financial planner.    It is best to explain your financing plan, why you need the loan, and specify the amount you need.

When you plan to finance your food truck business, it is important to determine how the funds will be used, such as buying a truck, cooking equipment, employee salaries (if needed), and repaying the borrowed funds.

Once you have a business plan in place, your financial forecasts will help you obtain an idea and estimate the amount you will need to get your food trucks off the ground.     

Once you have a complete business plan in hand, you should have a good estimate of the total startup costs of your food truck, your upfront income, your financing needs, your short-term business loan, and the working capital needed to get you operational.

A free PDF business plan can be downloaded on our business plan page.

To start a food truck business in the Philippines, you need a competitive and engaging concept, a viable business plan, a well-stocked food truck, and a solid marketing strategy to build your client base.     

Some venues and companies may host food trucks for private events requiring catering, so when looking for business growth for your food cart business in the Philippines, never be afraid to think outside the box.

Should You Start A Food Cart Business In The Philippines Or A Franchise

Franchising terms when starting a food cart business in the Philippines: Most people start a food cart business via franchising . An initial startup ranges from as low as 15,000 pesos up to 200,000 pesos depending on the food cart type. But one question remains, What about the terms of service?

Some companies will have monthly fees, while other food cart businesses in the Philippines will have a royalty fee. Some even will have a term that means they will receive a small percentage on each item sold.

However, many small food cart businesses in the Philippines have flexible terms, which is excellent news. The more growth and success a franchising business has, typically, the more terms will apply.

Please take a look at 7/11 and Jollibee , these are giants in the franchising field, and they have strict terms which are non-negotiable. These terms are to protect the brand. So, keep this in mind when looking for food cart businesses in the Philippines.

Terms when starting your own food cart business in the Philippines : On the other hand, if you start your own food cart business, then the terms are more towards the suppliers. Suppliers could include the location (i.e., landlord) or suppliers of products.

As an example, let us say that we are looking to start a burger food cart business . You have found a supplier for your meat. Do they have a minimum order which is a term that’s important to know before you start the business?

What Is Your Goal When Starting A Food Truck Business In The Philippines

The next question to ask yourself when looking at food cart businesses in the Philippines is what exactly are the goals ? Thinking about the end goal will help us at the first stage of the business. For example, if you are unsure whether to franchise a food cart business or start your own food cart business, the question is, what are you trying to achieve?

Indeed, you can make a lot of money from a franchised food cart business that is franchised, and there are many benefits to this. Still, there are also limitations to franchising, which need some careful consideration.  

On the other hand, if you want your food cart business in the Philippines to get you as much money as possible as quickly as possible, you may be better off joining a franchising company. Why? Because they will have a business plan and training available so you can start almost instantly. We will be talking about the pros and cons of different food cart models below.

How Much Does It Cost To Start A Food Cart Business In The Philippines?

The cost is the next area when we look at ‘should you start a food cart business in the Philippines?’. Some franchising advertises a minimal amount of required startup capital . Others require a capital of over 100,000 pesos.

The other option that is available to you is to start your own food cart business. Starting your own food cart business would initially be the most expensive route if you were to start your own food cart business. But when looking at this business model long-term, it could be the most profitable and the most money-saving model compared to franchising.

On average, a franchising food cart business in the Philippines requires a total investment cost of 40-60K pesos and at least 100,000 pesos to open your own food cart business in the Philippines. The total cost needed depends on your sub-niche and the area

What Are The Business Requirements For Starting A Food Cart Business In The Philippines?

When you are looking to open a food cart business in the Philippines, you will need certain things as a business owner. Some of these things will have already been taken care of if you become a franchisee. However, if this is your first business, then check out our list below of basic business needs.  

• Business Plan
• Marketing Strategies
• Financial Plan
• Suitable And Profitable Location
• A Further Understanding Of Your Products
• A Market That You Can Sell Too
• A Strong Brand
• One Or More Unique Selling Points
• A Long-Term Strategy
• Emergence Capital

Above are a few of the main areas that you will need as a business owner. Of course, as I mentioned, you may not need every one of these, and some of these may be covered by the franchising company. Nevertheless, the majority of these will put you ahead of the game.

One last thing I would mention is to spend some time looking at potential threats. In most business plans, we speak about  S.W.O.T. – SWOT stands for; strengths, weaknesses, opportunities, and threats. For example, let’s say you are selling ice creams.

After six months, a new ice-cream restaurant and 7/11 opens in the same location you are in. This example shows us a potential threat to your business. This is, of course, an example for this article, but it is recommended to spend some time looking over your strengths, weaknesses, opportunities, and threats.

What Are The Legal Requirements For A Food Cart Business In The Philippines?

For more information on setting up a food cart business/food truck business in the Philippines, feel free to click on the hyperlinks below to be taken to the relevant pages. 

• Business  Permits
• Food Truck / Food Cart Registration
• Food  Service Permit
• Health Requirement
• Sales Tax Permit

How To Be Different When Starting A Food Truck Business In The Philippines?

What is U.S.P.? If you haven’t come across this term, all it means is a unique selling point. A unique selling point is something that you possess or your business possesses differently from the competition. For example, if you are selling ice creams, your U.S.P. could be a particular flavor. If you are selling milk tea, this could be a special promotion you are running.

A USP is something that keeps customers coming back. Remember the 80/20 law that we have spoken about before. The law states that 80% of your profits will come from 20% of your customers. So, in other words, when we are setting up a food cart business in the Philippines, we want customers to return and make more orders. Therefore, it’s essential to have a U.S.P.

What should your U.S.P. be? This is your choice. If this is your own food cart business, then you have complete freedom. If you are franchising a food cart business, then you may have specific limitations. However, the company that you are with may have already established a U.S.P. in the market. This will be an advantage in the early days.

What Is The Current Food Cart Market In The Philippines

As we all know, The Philippines differs dramatically from island to island and city to city. In order words, what products are popular in one area may not be as popular in another. This is always a hard thing to scale when looking at a business. Therefore, market research is always critical at the initial business stage.

When we look at the current market, what trends are you starting to see? For instance, a few years ago, milk tea first became popular across Asia, China, the Philippines, Thailand, Taiwan, and many other countries. Do you feel the current market is saturated with this business idea, or do you still feel a market gap?

One of the biggest mistakes I’ve seen businesses make time and again is copying another business that’s been succeeding.

Even filipinowealth.com has seen countless blogs set up in recent times that have copied certain parts of our article and added it to their website as their own. The problem that this causes is there is no originality, and there is nothing unique. Filipino Wealth

This may sustain a business for a little bit of time. But, ultimately, businesses that copy other businesses will fail, so never be afraid to be different and be a leader in your industry.

How To Start A Franchising Food Cart Business ?

Starting a food-cut business in the Philippines is very easy. Suppose you have some capital and fundamental knowledge, that is. Then, if you are looking to franchise, all you need to do is contact a franchising company. They would then register your details and invite you down for an information session. Most often, you will find this business advertised on Facebook.

How To Start A Solo Food Cart Business ?

On the other hand, if you are looking to start your own food cart business, then there are certain things you will need to do. The most obvious is registering the company and gaining any permits or licenses required for the products you are selling.

Once you have done this, the rest of the business is something many people enjoy doing. You can start building your plans, finding a location, buying your machinery, and of course, the actual food cart itself.

Tips For Starting A Food Cart Business In The Philippines?

What guide would this be without some tips for a food cart business in the Philippines!

Right Location: The right location can make or break your business. Try to look at potential businesses nearby. For instance, is there a call center or corporation nearby where the staff could benefit from your selling product?

Right Network: Are you able to network with different companies or people? Perhaps you can agree with a company to offer its workers 20% off all drinks on Saturday and Sunday.

Right Products: There are millions of products you could sell! Okay, probably not millions, but you get the point. When you are out and about and see a food cart business, what do you want? In other words, what can you not walk past without buying?

Right Team : You may decide to run this business on your own, or you may decide to hire someone to run this for you. Whatever you choose, make sure you have the right team behind you. This is critical when building the foundations of your business.

Right Plan : At the start of any business, a plan or a strategy will be needed. Unfortunately, some businesses are ‘winged,’ which means they start without any plan. This is not recommended for a food cart business in the Philippines.

Right Vision : Finally, you must have the right vision for your company. Where is your company going? Do you want to make food so good that others will want to franchise your company?

I wouldn’t suggest spending days looking at each of these points but at least a few hours with a pen and paper. Of course, you can always change your plan and strategy as you grow, but having a necessary foundation will help you in the early days of business.

Food Truck Business Philippines: Summary & TakeAway

Is a food cart business a good idea? If you can find the right market, customer, and product, then yes, a food cart business in the Philippines can be very profitable.

It is recommended you thoroughly research this business and assess your strengths, weaknesses, opportunities, and threats.

What I’ve always noticed around the Philippines is that Word of mouth is powerful. In other words, you will have to bring your A-game when serving customers. It’s effortless to set up a business without the correct requirements.

However, this will always catch up to you, so it is best to obtain the correct permits before opening a business.

If you have the capital, a healthy entrepreneur mindset, and a robust product while teaming this together with a solid business plan, my opinion would be to start your own food cart business. Why? Because you will have much more control over the growth of your business, and it’s your brand. You will also have the opportunity to franchise your business in the future too.

If you do not have the resources to fund your own food cart business in the Philippines, another route could be to franchise. When you franchise another company, you are given certain benefits that are very helpful in the early stages of business.

For example, an established food cart business always has its own U.S.P., Idea customer, suppliers, etc. This will help your business run smoother in the early days.

Many believe starting a food cart business in the Philippines is a great way to earn quick money. But, unfortunately, even though this can be true, it’s not always easy.

Food Cart Truck Tips

• It’s often wise to slightly overestimate expenses and underestimate profits if you are not 100% of the outcome and financial matter of business in the early days
• Always investigate the terms and conditions of food cart suppliers in the Philippines. Price, rules, and regulations can differ from business to business
• Start small and build rather than starting big and reducing. It is always possible to add more and grow your business as you scale

Warnings Starting Food Business

• Choose a suitable location. Accessibility is a big factor for the customer. If your business is in the wrong location, then your business could suffer
• Put the customers first. The biggest mistake is forgetting to put your customer first. What do they want, and what would they pay extra money for?
• Don’t open a food cart business in the Philippines without comprehensive research. Research can tell you all the demand, supply, and whether your business idea is a good idea or not

Future Reading & References

• Food carts for sale https://www.carousell.ph/food-cart-for-sale/q/?searchId=DTNi6Z
• Basic business registration https://www.foodcartlink.com/business-registration-steps/
• Food business law https://resourcehub.bakermckenzie.com/en/resources/asia-pacific-food-law-guide/asia-pacific/philippines/topics/food-product-and-safety-regulation#:~:text=The%20Food%20Safety%20Act%20of,or%20reduce%20risks%20to%20consumers
• Philippines food safety act https://www.officialgazette.gov.ph/2015/02/20/implementing-rules-and-regulations-of-republic-act-no-10611/

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How to Start a Food Cart Business in the Philippines

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Food-based businesses are one of the most lucrative ventures that you can undertake.

In the Philippine market specifically, food cart businesses have emerged to be an extremely profitable segment due to increasing demand for on-the go and cheap food. Its popularity is evident. Just go to malls and foodcourts in Manila and you’d see hundreds of food carts lined up in every floor. You’d also see variety of them in LRT or MRT stations, school kiosks and even in the streets! With its popularity as an “evergreen” niche, comes with a fiercely competitive market. It’s definitely not a walk in the park if you do not have prior experience in running a food business or if you’re starting out with a limited capital. Not to scare you off or anything, but the real truth is that it’s an extremely cut-throat business. Becoming a franchisee of a well-established food-cart brand can also be very risky. But while it’s also true that the market is also very saturated, there is still a massive opportunity for entrepreneurs in this category. To help you out, here are some tips on how to start a food cart business in the Philippines.

1. Make a business plan

Every business should have a business plan, and I can’t stress the importance of this enough. Most “wantrepreneurs” just dive in straight ahead without proper planning. Thinking of a product or food offering simply isn’t enough. You’d have to take in consideration the following factors:

• Feasibility of the business plan Feasibility takes into consideration all variables, resources and constraints needed to start your business. These include factors like budget, cash flow, deadlines, suppliers, and ability to scale. List down your costs (which includes initial inventory and equipment). Check your starting capital and liquidity and see if it’s enough to cover your costs. How fast will you be able to recuperate your initial capital? What is the return on investment? What are your deadlines? Will you be able execute all those tasks alone or do you need to hire staff for daily operations of your business? Do you have a capital to pay for the salaries of your team? etc. To take the franchising route? or to build a brand? If you’re planning on becoming a FRANCHISEE of an already established food-cart brand or business, take into account all the possible risks associated with it. Initially, the franchisor will guide you along the way and give you a blueprint of how to run the food cart business. But, it comes with a relatively high cost. Some franchisors take a percentage of your monthly profit. Do a cost-benefit analysis for a one (1) year period, two (2) year period, and so on. Will it be more profitable in the long-term? What is the ROI for the franchising model?
• Scaleability of the business Is your food cart business scaleable? And by scaleability we mean opportunities for expansion. Will your budget, cash flow and liquidity be able to handle an increase in demand? Can you replicate the business to other locations as well?
• Mission and Vision What is the purpose of starting a food cart business? How do see your food cart business in the next 5 years? What will be the steps that you’d have to undertake in order to achieve that vision?

2. Conduct a proper market research

Conducting a proper market research ensures that your product offering is fit for your target demographic. It should be according to their tastes, preference, and budget point. After all, the business is not about you- it’s about your customers. Segment the population according to demographics like age, education, income and mobility. Doing this will help you target your customers more accurately. For example, if you’re planning to set-up your food-cart business along the LRT Recto 2 station. Think of the possible target demographic in that area. This demographic could be ages 18-65, middle income earners, students along the university belt (U.E, CEU, UST, Arellano) going to the Divisoria area to Quiapo Manila. They’re on the go and would like a cheap and quick fix for their hunger. They have limited disposable incomes and probably won’t spend more than 100 pesos in kiosks. Determine how fast they want their food to be served. If your customers are on-the go, they wouldn’t want to stand there in minutes just to wait. Even if your food-cart business is supposedly a miniature fast-food style of business on steroids, you’d still have to take into account the overall ease and experience of your customers.

3. Pick your food offering according to your demographic’s tastes

Once you’ve determined your target demographic’s tastes, preferences and budget. Make a list of potential food offerings that you’d want to include in your food-cart. With the process of elimination, choose the products that are the most feasible, least costly to procure, easiest to make, and the most delicious for your customers. Remember, food-carts have one (1) specialty. You have to be the to-go to place or the “first-in mind” brand for a quick fix. As an example, the most popular food cart businesses out there are siomai kiosks, shawarma food-carts, hong-kong noodle kiosks, etc. They’re known for one specific food. The more products you offer, the more complicated and more time consuming it will be to operate as well. Instead of offering different varieties of food, you can just opt to offer complimentary food and beverages. Think of budget meals, or buy one take one offerings.

4. Choose a high-traffic location

In the food-cart business (and as with most brick and mortar) stores, location is everything! Even if you make the most delicious food offerings out there, still, the primary factor that can make or break your food-cart business is location. You’ll only succeed when your food-cart is located in a highly visible , easily accessibly and high foot traffic area . You are not a restaurant where your customers will opt for a full-dining experience. Instead, your demographic is most likely seeking for a quick-fix for their hunger, so they won’t spend minutes of their waking life looking for your kiosk. Food-cart businesses also leverage on their customer’s impulsivity. And being located in a highly visible and accessible area will help you gain more customers that had just seen your cart in first glance.

5. Get a business permit

Before you’d be allowed to operate your food-cart business, you are required to register your business with the DTI and you’d have to get a permit from the mayor’s office in the city hall where your business will be located. You’ll also need a TIN from the BIR and you’ll have to show a lease contract. Pooling all the necessary requirements and documents aside from the actual application process can take a while. Expect long lines when going to government offices. Bring patience. You’d need it the most.

6. Make sure that your food-cart stands out

If you didn’t choose the franchising route, you’ll have more flexibility when it comes to the design and branding of your food-cart business. It’ll take a more considerable time of planning, however, because you’d have to take into account the “brand image” that you want your customers to perceive. It’s always best to choose bright and colorful logos, slogans and color schemes for your food cart business. Colors like yellow and red conjure up excitement and impulsivity from your customers and I think it’s ideal for a food-cart business.

You want your food-cart to stand out amongst the competition, and your menu should be very visible as well. Placing a huge tarpaulin that lists all your products in front of your food cart also helps because your customers will be able to see it even from meters away.

7. Market your food-cart business

If you’re just starting out, it’s incredibly important to do marketing for your business (or for any business, really). Treat your food-cart business as a brand. A brand that is valuable and grows in popularity in the long-term. You don’t want to be just a “siomai house”, you’d want it to become an identifiable brand that you can scale and replicate in other locations as well. Some marketing strategies to help get the word out about your business are:

• distributing flyers if you’re starting out helps.
• making social media fan pages like facebook fanpage, instagram fan page, or even a youtube account
• join trade fairs and distribute samples of your products
• make your product offerings available in online delivery platforms like Grab and Foodpanda

8. Be a hands-on entrepreneur

The success of your food-cart relies heavily on your personnel. They’d be the main point of contact with your customer and your staff’s work ethic will greatly affect your customer’s experience with your brand. If your staff isn’t motivated, they’d work slowly, causing your customers to wait. I’ve seen in happen to a lot of food-cart businesses. The food is good but the staff isn’t approachable, the waiting time is long, and there’s a ridiculously long line. Yikes. It’s a recipe for disaster. Be a hands-on entrepreneur to solve this problem. And by hands-on, I didn’t mean that you should run your business 24/7. By hands-on, I meant, you should actively train and educate your staff about customer experience, food preparation, proper handling of food, hygiene and sanitation. Always visit your store and monitor the inventory levels yourself. Check for customer reviews in your facebook pages. Incentivize employees that work well in order to motivate them to work harder.

Do you have any questions? Feel free to write a comment down below! Thank you.

thriftyhobbyadmin

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