Food Empire Pro Podcast

Brett Lindenberg

Interview with food business entrepreneurs of all kinds: restauranteurs, food truck owners, caterers, and food innovators. New episodes published weekly. Learn how to start your own profitable food business at FoodTruckEmpire.com.

  • 33 minutes 56 seconds
    How To Create a Unique & Profitable Menu for a Food Truck

    In the second installment of our food truck case study series, we continue to follow Anthony Salvagno, the mastermind behind S’wich It Up, as he navigates the challenging process of building a food truck business from scratch. This time, Salvagno shares how he developed a one-of-a-kind menu for his sandwich truck—one that has roots in childhood favorites but is refined for today’s customer. We also dive into the complexities of sourcing ingredients, a process that Salvagno admits can make or break a food truck operation.

    For many food truck owners, creating a unique menu is no easy feat. The food you serve can make or break your business, especially as tastes evolve and trends come and go. Salvagno, however, has always had a clear vision of the kind of food he wanted to serve. “Peanut butter and jelly sandwiches were my go-to as a kid,” Salvagno recalls. “It made sense to build a menu around something I love and knew well.”

    But as any food entrepreneur knows, creating a menu isn’t just about passion—it’s about practicality. While Salvagno was guided by his love of spreads and jellies, the real challenge came in turning that inspiration into a profitable, sustainable menu.

    food truck menu

    What will your menu look like?

    Building a Menu—And Profitable

    Salvagno’s approach to building his menu was surprisingly grounded. He began by hosting a tasting party with friends and family, gathering feedback on various sandwich combinations he had been experimenting with. “It was the easiest way to see what worked and what didn’t,” he said. “Sometimes you need honest feedback from people who aren’t afraid to tell you when something’s just not hitting the mark.”

    The feedback helped Salvagno focus his offerings. One standout creation? A s’more-inspired sandwich that has the potential to become S’wich It Up’s signature item. But creativity alone wasn’t enough. Salvagno also kept an eye on execution time. “The more items you can serve quickly, the more sales you can make in a short period of time,” Salvagno explains. “It’s all about balancing creativity with efficiency.” Here are the steps to build a unique food truck menu.

    menu example food truck

    S’witch It Up keeps things fresh by updating their menu every couple weeks.

    Step 1: Define Your Concept

    Start by defining a clear, focused concept. Salvagno’s idea was straightforward: sandwiches inspired by peanut butter and jellies. “PB&J was my go-to as a kid, so I built my menu around it,” he says. A strong theme attracts customers and makes your menu easier to build.

    Step 2: Keep It Simple

    Salvagno initially planned a large menu but soon realized smaller was better. “We focused on a few core sandwiches, like the s’more-inspired PB&J, that we could execute well,” he explains. A small, focused menu is easier to manage and more profitable.

    Step 3: Think About Speed

    Customers don’t want to wait forever for food. Salvagno designed his menu with speed in mind. “Every sandwich needed to be made in under five minutes,” he says. Simplicity keeps the line moving and increases your sales.

    Step 4: Test Your Menu

    Salvagno tested his menu by hosting a tasting party with friends. “It was the easiest way to see what worked,” he notes. Testing helps you refine recipes and weed out unpopular items before opening day.

    Step 5: Streamline Your Sourcing

    In the beginning, Salvagno tried to source from local suppliers, but it quickly became overwhelming. “I was running around too much,” he admits. He simplified by finding a few reliable suppliers, saving time and reducing stress.

    Step 6: Price Wisely

    Pricing is key to profitability. Salvagno balanced quality ingredients with reasonable pricing. “We wanted to offer something better than your average PB&J without scaring customers off,” he says. Finding that sweet spot is crucial.

    The Sourcing Dilemma: Quality vs. Practicality

    After fine-tuning the menu, the next challenge was sourcing ingredients—specifically, balancing the desire for high-quality, local products with the practical realities of running a food truck. Early on, Salvagno made a common rookie mistake: trying to source everything from different local suppliers. “I thought I was doing the right thing by getting bread from a local bakery, meat from small farms, and produce from nearby markets,” Salvagno admits. “But it became too much work. I was spending more time running around than actually working on the truck.”

    The logistics of sourcing from multiple vendors quickly turned into unpaid work and added stress. Salvagno realized that while sourcing local and organic can be great in theory, it doesn’t always align with the realities of running a small, mobile business. “You have to weigh the cost and effort against what your customers are willing to pay,” he said. “Sure, people love the idea of local and organic, but not everyone’s going to pay $15 for a sandwich at lunch.”

    This doesn’t mean Salvagno abandoned quality. Instead, he found ways to compromise—sourcing certain high-quality staple ingredients, like peanut butter and spreads, in bulk, while cutting down on the number of suppliers to streamline the process. “It’s all about striking the right balance,” he says. “You can have high-quality ingredients without overcomplicating your sourcing.”

    Salvagno’s Advice for New Food Truck Owners

    During our conversation, Salvagno offered valuable advice for food truck owners who are in the early stages of menu development and sourcing. One of the key lessons? Keep your supply chain simple. “Don’t spread yourself too thin by sourcing from too many places,” he warns. “It’s tempting, but it’ll eat into your time and your profits.”

    Sid Gauby, owner of Slow River Coffee in Boise, echoes this sentiment, adding: “Unoccupied time feels longer than occupied time. If you’re spending too much time sourcing, you’re not focusing on the things that grow your business.” Gauby’s advice ties into another crucial point—making sure your customers feel engaged while they wait. “Distractions, like menu boards or even a bit of interaction, help customers pass the time and make the experience better,” Gauby notes.

    daily food prep on truck

    Daily food prep on the food truck.

    Salvagno also stressed the importance of knowing where your food comes from—without letting that pursuit overwhelm you. “You want to be educated about the food you’re serving, but you also need to stay practical,” he says. “The goal is to keep costs down and make sure your customers are getting a great product without feeling like they’re being overcharged.”

    Final Thoughts

    As S’wich It Up gets closer to launch, Salvagno is refining not only his menu but also his sourcing strategy to ensure both quality and efficiency. His journey serves as a real-world case study for aspiring food truck owners, offering insights into the careful balance required to build a successful business.

    For anyone serious about starting a food truck, Salvagno’s experiences are invaluable. From testing menu items at home to making tough decisions about sourcing, his story highlights the importance of both creativity and practicality in this highly competitive industry.

    Serious about Starting a Food Truck? Click Here To Learn How Anthony Salvagno’s Journey Can Help You Start a Food Truck Faster. 

    Key Takeaways from the Podcast:

    • Test your menu: Gather feedback from trusted sources before finalizing your offerings.
    • Focus on efficiency: The faster you can serve, the more potential for profit.
    • Simplify sourcing: Don’t overcomplicate your supply chain by trying to work with too many vendors.
    • Balance quality and cost: Offer high-quality ingredients without scaring off customers with high prices.
    • Engage your customers: Keep them occupied while they wait with menu boards or personal interaction.
    • Know your break-even point: Understand how many customers you need to serve each day to cover your costs.

    In this interview, we reference a previous podcast where we discussed writing a business plan. If you’re interesting in reading Salvagno’s business plan, check out our first interview.

    Want to be featured on an upcoming show and all the fame and notoriety that comes with it? Leave us an iTunes review. It’s just that simple.

    The post How To Create a Unique & Profitable Menu for a Food Truck appeared first on Food Truck Empire.

    1 October 2024, 1:02 am
  • 19 minutes 50 seconds
    4 Unique Ways This Food Truck Owner Funded His Business

    In the third installment of our series, we sit down with Anthony Salvagno, the entrepreneurial mind behind S’wich It Up, to discuss the creative mix of funding sources he used to bring his food truck dream to life. Like many food truck owners, Salvagno didn’t have a one-size-fits-all solution to financing. Instead, he pieced together funds from personal savings, a business plan competition, crowdfunding, family contributions, and a loan. This cocktail of resources gave him the capital he needed to roll out his business.

    “Crowdfunding is like a whole different beast when it comes to raising money,” Salvagno reflects. “You’re basically marketing your business full-time. It’s an 8-hour-a-day job, and you’re trying to do everything you can to raise awareness.” For Salvagno, this was just one slice of the larger funding pie.

    The Reality of Traditional Loans

    Getting a traditional business loan for a new food truck is tough. Banks typically want a track record, something new businesses rarely have. For Salvagno, the concept of S’wich It Up was still unproven, and with no revenue history, traditional banks were off the table.

    “Like any new business, it’s an untested idea at this point and has no history of revenue generation,” Salvagno explained during our interview. “Getting a traditional business loan from a bank is not going to be an option for most entrepreneurs.”

    Fortunately, Salvagno found alternatives in his hometown of Albuquerque, New Mexico. He tapped into Wesst and The Loan Fund, nonprofit organizations designed to help local entrepreneurs secure funding. Through The Loan Fund, Salvagno secured $25,000. “This loan made all the difference in helping us get started,” he says.

    If you’re launching your own business, Salvagno’s advice is clear: research the local nonprofit organizations in your area. Many cities across the U.S. offer similar programs to support small businesses and stimulate the local economy.

    anthony salvagno

    Anthony Salvagno

    The Breakdown: How to Fund a Food Truck 

    Salvagno’s total target for his food truck was $40,000. But as most entrepreneurs will tell you, costs quickly grow, and that number inflated to $55,000 when factoring in additional fees and unexpected expenses. Here’s how he pieced together the funding:

    Personal Savings: $15,000
    Salvagno, like many entrepreneurs, had to dip into his personal savings to jump-start his business. This initial seed capital gave him the flexibility to begin serious planning.

    Business Plan Winnings: $5,000
    Salvagno entered a business plan competition and walked away with a $5,000 prize. It wasn’t just the money that helped—it was the validation. Winning a competition built credibility and gave him momentum.

    Family Contributions: $5,000
    “Thanks, Mom!” Salvagno chuckled during the interview, acknowledging the $5,000 loan he received from family. It’s not uncommon for food truck owners to rely on family for financial support when starting out. In Salvagno’s case, it helped bridge the gap in his funding.

    Crowdfunding Campaign: $5,000
    Salvagno ran a crowdfunding campaign that raised $5,000, but it wasn’t as easy as it sounds. “Crowdfunding is a whole job by itself,” Salvagno says. The process of promoting his campaign felt like full-time work, requiring constant outreach and updates to backers. Crowdfunding, he explained, is often misunderstood. People tend to think it’s free money, but you have to provide value—whether through rewards, updates, or simply by keeping your backers engaged.

    Business Loan: $25,000
    Through The Loan Fund, a nonprofit that supports local businesses, Salvagno secured a $25,000 loan. “It wasn’t everything I needed, but it was what I could get, and it helped me move forward.” The Loan Fund specializes in working with entrepreneurs who can’t get traditional financing, a common hurdle for first-time business owners.

    s'wich it up

    The S’wich It Up Food Truck in all her glory.

    The Realities of Crowdfunding

    Crowdfunding, at first glance, seems like the golden ticket for many aspiring entrepreneurs. Platforms like Kickstarter and Indiegogo promise a way to raise money from supporters without needing a loan or giving away equity. But for food truck owners like Salvagno, the reality is a little more complicated.

    “People think it’s free money, but you really have to work for it,” Salvagno explained during our conversation. That’s because crowdfunding isn’t just about collecting donations—it’s about delivering on promises made to backers. In Salvagno’s case, that meant offering rewards to those who contributed to his campaign. One of those rewards? Handcrafted jars of jellies and butters made by the S’wich It Up team.

    “We wanted to give people something special in return,” Salvagno said. It was a great way to connect with supporters, but it also introduced a whole new set of challenges. Not only did they have to produce the jellies and butters—which required time and effort—but they also had to cover shipping costs to get these items into the hands of their backers. And, of course, the more successful the campaign, the more rewards they had to produce and ship.

    Just another day on the S’wich It Up food truck.

    Crowdfunding platforms themselves also take a cut of the money raised, often between 5-8%, depending on the platform. Then, there’s the cost of creating and fulfilling rewards like Salvagno’s jellies and butters. These costs quickly add up, eating into the total funds raised and, in some cases, leaving far less to invest in the actual business than originally expected.

    “It’s easy to forget that when you’re raising $5,000, you’re not keeping all of it,” Salvagno said. “You’ve got platform fees, reward costs, shipping costs—it all adds up. And then there’s the time commitment. You’re spending hours every day updating backers, promoting your campaign, and making sure everything runs smoothly.”

    For Salvagno, this meant dedicating several hours a day, often more, to managing the campaign. It was essentially a second full-time job, and it wasn’t over when the funding goal was reached. After the campaign ended, Salvagno and his team still had to fulfill all the rewards they had promised, which extended the workload for weeks. “Crowdfunding is like marketing your business full-time,” Salvagno reflected. “It’s an 8-hour-a-day job.”

    This experience sheds light on one of the biggest misconceptions about crowdfunding: it’s not just about raising money, it’s about delivering value in return. For entrepreneurs thinking about crowdfunding, Salvagno’s story serves as both a warning and a lesson in perseverance.

    Turning a Dream into Reality

    For others looking to start a food truck, Salvagno’s advice is simple: “Do your homework.” Research local organizations that can help you, like Wesst and The Loan Fund, which specialize in lending to small businesses. He also stresses the importance of tapping into your network for support. “Don’t be afraid to ask friends or family for help,” Salvagno says. “Every little bit helps when you’re turning a dream into reality.”

    While Salvagno’s journey wasn’t without its challenges, the combination of personal savings, business competition winnings, crowdfunding, and a loan allowed him to pull together the $55,000 needed to launch S’wich It Up. His story is a reminder that building a business takes creativity, hustle, and sometimes a little help from those closest to you.

    What You’ll Learn in the Episode

    • How a real food truck has successfully acquired funding.
    • What Salvagno would do differently with his next crowd funding campaign.
    • Some of the misconceptions of crowd funding: Primarily people think that they are giving your “free” money with no value exchange.
    • How to find organizations in your area that offer small business loans.
    • Why supportive friends and family members can be an important way to help start a business.

    Leave us a review on iTunes. You could get featured on the show!

    The post 4 Unique Ways This Food Truck Owner Funded His Business appeared first on Food Truck Empire.

    1 October 2024, 1:00 am
  • 34 minutes 48 seconds
    How to Transform Your Menu Into a Grocery Store Product

    Turning a popular food truck or restaurant menu item into a grocery store product can be an exciting way to expand your business and increase revenue. Stephanie Ganz, who has helped brands like Pizza Tonight do just that, shared her process and insights for successfully launching a packaged food product in grocery stores. Here are the key steps and expert tips she provided during our podcast interview. Here’s the step-by-step plan needed to get a food product from idea to store shelves.

    stephanie ganz

    Today’s guest is Stephanie Ganz.

    1. Develop a Star Product

    The first step in transforming your menu into a grocery product is identifying your “star” product. This is the one item that your customers rave about and keep coming back for—the dish that they can’t get anywhere else.

    “You want to focus on the product that stands out, something you’re known for,” Ganz said. “It needs to be something that customers are willing to buy repeatedly and that can be efficiently packaged and distributed.”

    She recommends conducting some informal customer research. What do your customers talk about the most? Is there an item that consistently sells out? This is where you should start when deciding which product to package.

    launch a food product

    You can transform your menu into a product.

    2. Attain Department of Agriculture Approval

    Once you’ve selected your star product, the next critical step is to obtain approval from the Department of Agriculture (USDA). This step ensures that your product is safe for consumption and meets all regulatory standards for wholesale distribution.

    “Every municipality has slightly different requirements, but generally, you’ll need to submit a packet that includes your recipe, method of preparation, and a hazard analysis,” Ganz explained. “You’ll also need a map or sketch of your kitchen space to show where the product will be prepared.”

    Ganz emphasizes the importance of attention to detail in this stage. “It’s not just about having a great product—it’s about showing that you can produce it safely and consistently at scale.”

    3. Pursue and Maintain Wholesale Accounts

    One of the most challenging but rewarding parts of launching a packaged product is building relationships with retailers. Ganz recommends following these steps:

    1. Identify Your Target Market: “Start by determining which type of stores and customers you want to target,” Ganz advises. This could be anything from local grocery stores and specialty markets to large chains, depending on your product and capacity.
    2. Create a Wholesale Menu: Before approaching retailers, create a professional-looking wholesale menu that outlines pricing, packaging sizes, and key product details. Ganz suggests keeping it simple but informative.
    3. Build a Contact List: Make a list of stores you want to approach. “This is where creativity comes in—sometimes you’ll need to think outside the box and target stores that align with your brand,” Ganz said.
    4. Start Pounding the Pavement: “Building relationships is key,” Ganz emphasized. “It’s not enough to just have a great product. You have to get out there, meet store buyers, and establish connections. Persistence is really important.”

    Once you’ve secured wholesale accounts, it’s essential to maintain them by delivering on time and ensuring consistent quality. These relationships can also open doors for future collaborations or referrals, especially if you run a catering business or have a mobile food operation.

    joys candy bars

    Chocolate covered jelle bars.

    4. Get Your Product Online and Start Selling

    Beyond grocery stores, selling your product online is an essential step in growing your business. Ganz, who was instrumental in launching Pizza Tonight both in stores and online, explains that e-commerce platforms can open doors to a much wider audience.

    “Having your product available online gives customers another way to access it, especially if they’re not local to your food truck or restaurant,” Ganz said. “Platforms like Amazon, Shopify, or even your own website allow you to reach customers nationwide.”

    She advises starting by creating a dedicated e-commerce site or partnering with online food retailers. “Make sure you have a solid packaging and shipping process in place—customers expect the same quality they’d get from a store,” Ganz noted. With online sales, you can also offer special promotions or subscription models, providing a steady stream of revenue while building a loyal customer base.

    5. The Business Benefits of Launching a Grocery Product

    The advantages of expanding into retail go beyond just additional revenue. Ganz highlighted two major benefits: increased cash flow consistency and enhanced brand visibility.

    “Selling your product in stores helps smooth out the cash flow since you’re not relying solely on food truck or restaurant sales, which can be impacted by things like weather or seasonality,” Ganz noted.

    Additionally, retail placement serves as free marketing for your main business. “When someone discovers your product in a grocery store, they might love it so much that they decide to visit your food truck or restaurant,” Ganz explained. “It’s another way to get your name out there and create brand loyalty.”

    Final Thoughts: Take the Leap

    For those thinking about taking their restaurant or food truck business to the next level by launching a packaged product, Ganz encourages taking the leap. “It’s a big step, but if you’ve got that star product and the drive to make connections, it can open up whole new avenues of growth for your business,” she said.

    StephanieGanz.com – The official Instagram of this week’s guest Stephanie Ganz. In addition to learning how to create a food product that can be sold in grocery stores, farmers markets and other local stores you’ll also gain insight into Ganz’s culinary background and how she’s developed her food business acumen over time.

    The post How to Transform Your Menu Into a Grocery Store Product appeared first on Food Truck Empire.

    25 September 2024, 1:13 am
  • 32 minutes 55 seconds
    How Sameer Siddiqui Started a Pakistani Food Truck

    When Sameer Siddiqui decided to launch RickShaw Stop, a Pakistani food truck in San Antonio, he didn’t rush into the venture on a whim. He made sure every detail was thought out, every stone turned over, and every possible mistake had a contingency plan. “If you don’t do your homework, you’re setting yourself up for failure,” Siddiqui says with a calm intensity, the kind of conviction you only get after spending nearly a year developing your business plan.

    Sameer’s commitment to research is impressive. Siddiqui spent months observing food trucks already thriving in the area. “I would go out there and count the number of customers at food trucks on different days,” he says. This kind of groundwork might sound tedious, but for Siddiqui, it was invaluable. “The more research you put in on the front-end, understanding the landscape, the better your chance for success will be.”

    RickShaw Stop

    RickShaw Stop, serving up dishes like samosas and spicy chicken wraps inspired by his Pakistani heritage, was born out of this meticulous preparation. But despite his exhaustive research, Sameer admits that the process doesn’t have to take as long as his own. “I don’t think everyone needs to spend a year on the homework portion,” he concedes. “But trust me when I say, if you don’t create a business plan, you’re going to miss a lot.”

    The execution wasn’t just about the food; it was about building a system that worked—one that wouldn’t burn him out. Siddiqui is the first to admit that a one-man show isn’t sustainable. “You can only work 20-hour days for so long before you’re mentally and physically exhausted,” he explains. That’s why his team became critical to RickShaw Stop’s success, with his mother as the culinary mastermind and his wife playing a pivotal role in PR and social media. “I could never have done this alone,” he emphasizes.

    The first year didn’t come without sacrifices either. Siddiqui took no salary, reinvesting everything back into the business to ensure it had the staying power he envisioned. “If you’re thinking you’ll make money right out the gate, you’re probably in the wrong business,” he says bluntly. “It takes time to build something lasting.”

    Consistency, he believes, is RickShaw Stop’s secret sauce. “You have to be consistent—in your food, in your service, in how you show up online,” Siddiqui stresses. His truck’s ever-updated website and social media presence helped draw in food bloggers and influencers, crucial tastemakers in the modern food scene. “We got on Eat St. by reaching out through social media,” Siddiqui says, underscoring the importance of marketing in today’s culinary world. “Word-of-mouth is still gold, but having a strong online presence is everything.”

    rickshaw stop

    Outside the Rickshaw Stop.

    As RickShaw Stop’s reputation has grown, so has the customer base. Siddiqui made it a point to become friends with his customers, remembering names and orders, fostering community. “You have to build relationships. That’s what keeps people coming back,” he explains.

    He’s wary of handing over control of that connection, however. “Be cautious about hiring a PR person,” he advises. “No one will tell your story better than you.” For Siddiqui, it’s personal. It’s not just about serving up great food; it’s about the connections he’s built, the team he’s assembled, and the hours spent crafting a vision that’s bigger than just a truck.

    Sameer also stresses the importance of building a team to ensure the success of a food truck and your personal sanity. After all one can only work 20 hour days for so long before becoming totally and mentally exhausted. Siddiqui has built a team around his mother, the head chef of RickShaw Stop. His wife is also an active and essential part of operating the business and does a lot of the PR / social media participation.

    Developing the Menu

    The menu development process began long before the truck hit the streets. Siddiqui’s mother, the head chef, became the culinary anchor for RickShaw Stop. “My mom’s cooking is what inspired me,” Sameer explains. “She’s always been the best cook in the family, and I knew her food would stand out.” The challenge was translating those homemade dishes into a street food format—one that could be consistently prepared, quick to serve, and still deliver the bold, comforting flavors of traditional Pakistani cuisine.

    Sameer approached menu development with the same methodical approach he used for the rest of his business. He tested dishes over and over, ensuring they could be executed with the speed and consistency that a food truck demands. “It’s one thing to cook for a few people at home, but it’s another to make the same dish 50 or 100 times a day,” he says. “We had to make sure every item could be replicated under pressure.”

    Samosas and kebabs quickly became menu staples, offering an introduction to the rich spices and textures of Pakistani food without overwhelming first-timers. But Siddiqui was also adamant about keeping things fresh and evolving. “The menu needs to reflect what your audience wants,” he says. “If they’re asking for something or you notice a trend, don’t be afraid to tweak your offerings.”

    Customer feedback played a huge role. “We’d test different recipes with friends and family, then tweak based on what they liked and didn’t like,” Sameer says. “Once we hit the streets, our customers became the ultimate test group.” That open line of communication with the people who ate at RickShaw Stop was key in refining the menu. “It’s not just about what you think works—it’s about what your customers keep coming back for.”

    Sameer also kept the menu intentionally limited. “Too many options can be a logistical nightmare,” he says. “We didn’t want to complicate things in the kitchen or confuse our customers.” Keeping it simple allowed him and his team to focus on quality, ensuring every dish was made right, every time. And while the menu might look small, it packs a punch. “Each item needed to be something we could proudly stand behind,” Siddiqui adds.

    There’s almost too much information in this interview as Siddiqui covers the importance of being consistent, the importance of customer loyalty, along with he and his wife’s inspiration for starting RickShaw Stop. Just listen to the interview already!

    I used to sit in parking lots and count their [food trucks] customers. Things like that.Sameer Siddiqui on doing competitive research for Rickshaw Stop.

    I don’t think I we’d have the success if it wasn’t for my wife and my business background. But it’s one of those things that we’re trying to take the best out of those backgrounds and put them into something brand new.Sameer Siddiqui on taking advantage of his business background.

    What You’ll Learn

    • The importance of doing the homework and writing a business plan to set yourself up for success.
    • How Sameer conducted his competitive research by counting the number of customers eating at other food trucks.
    • Why Sameer invested almost a year writing and researching his business plan.
    • If you don’t create a business plan, you’re going to miss a lot.
    • How the daily operations of a food truck can become a management nightmare: taxes, supplies, and of course working with people.
    • The disadvantages of not coming from a culinary background that lead to mistakes.
    • Why Sameer didn’t take a salary for the first year of his business.
    • Learn Sameer’s “secret to success” and why he believes they are regularly ranked in the top food trucks in the country.
    • How the food, social media, up-to-date web presence,  word-of-mouth advertising, and being consistent have benefited RickShaw Stop.
    • Why it’s critical to become friends with your customers.
    • The importance of catering to bloggers, influencers and other taste makers with influence.
    • How RickShaw Stop reached out to Eat St. on social media and eventually were featured on the show.
    • Why Sameer built a team to operate his food truck.
    • Why you should be cautious about hiring a PR person for your food truck.

    Mentioned in This Episode

    Eat St. Season 4 – Check out RickShaw Stop being featured on an episode of the popular television series broadcast on the Cooking Channel.

    Anthony Bourdain – One of the inspirations behind RickShaw Stop. There’s actually a menu item named the “Tony” in his honor.

    iTunes – Listen to us and leave a review on iTunes. You might even get mentioned on the show.

    The post How Sameer Siddiqui Started a Pakistani Food Truck appeared first on Food Truck Empire.

    17 September 2024, 1:28 am
  • 26 minutes 24 seconds
    Part-time to Full-time on a Food Truck in Only 12 Months

    If Gene Simmons had a school of marketing, Marty Richie would be the star professor. The owner of Motley Crews Heavy Metal Grill knows a thing or two about catching people’s attention. “The secret to success is to offend the greatest number of people,” Richie says with a grin, quoting Simmons. But it’s not just the loud graphics and heavy metal branding that pull customers in—it’s the food that keeps them coming back.

    Not so long ago, Richie was suited up in corporate America, working the typical 9-to-5 grind. But after launching his food truck on weekends, things started to heat up. It wasn’t long before he traded in his tie for a t-shirt and apron full-time. “It was a leap, no doubt. But the momentum was there, and I realized I couldn’t do both. Something had to give,” Richie recalls.

    At first, Motley Crews was just a weekend gig—a passion project parked outside local breweries or festivals like the zombie pub crawl. As business picked up, so did Richie’s realization that food truck life had the potential to be more than just a side hustle. “You don’t want to jump in headfirst,” Richie advises. “Start small, part-time. Feel it out.”

    The secret to success is to offend the greatest number of people. Marty Richie, quoting Gene Simmons, who was quoting someone else.

    motley crews plate

    Motley Crews Custom License Plate.

    This interview covers a lot of ground. Marty shares the first events he parked his truck at, including breweries and a zombie pub crawl. Over the course of the show we get into how he funded, designed, and launched his food truck and why he recommends getting into the mobile food business part-time at the beginning.

    Funding the Dream

    Launching a food truck isn’t cheap, and Richie got creative to fund Motley Crews. “We tapped into everything—401K savings, a tax return, family members helped out, and yeah, I even maxed out a credit card,” Richie admits. He also found that securing a traditional bank loan for a food truck was far harder than expected, even with a solid credit score. “Banks just don’t get it. They see it as risky,” Richie says. “If you want to get this thing rolling, you have to piece it together however you can.”

    That DIY spirit carried through to the design and marketing of the truck. Richie’s love for KISS and heavy metal heavily influenced the truck’s look and branding, proving that inspiration can come from unexpected places. “KISS is the ultimate in marketing—everything they did was about standing out, making people stop and pay attention. That’s what I wanted for Motley Crews,” he says.

    motley crews heavy metal grill

    Motley Crews Heavy Metal Grill ready for service.

    Advice for Aspiring Food Truck Owners

    For anyone looking to follow in his footsteps, Richie has some sage advice: “Don’t quit your day job right away.” Building a food truck business takes time, and jumping in full-time before you have a solid foundation can be risky. “Do it part-time at first. Work weekends, hit local events. Get a feel for the market before you throw everything at it,” he suggests.

    Richie also stresses the importance of reliability: “Never cancel a gig, even if a better opportunity comes along. Word gets around fast, and if you flake on one event, it could hurt your reputation for future ones.”

    The rock-n-roll attitude, combined with smart business moves, is what’s allowed Motley Crews to grow from a weekend experiment to a full-time operation. And Richie’s final piece of advice for anyone dreaming of starting their own food truck? “Be loud, be bold, and most importantly, keep showing up.”

    food truck rally

    On tour at the food truck rally.

    What You’ll Learn in This Episode

    • How Marty funded his food truck through a combination of 401K savings, a tax return, family members, and a credit card.
    • The difficulty of securing a bank loan for a food truck, even with great credit.
    • The business and marketing principles you can learn from the rock band KISS.
    • Why you should never cancel a gig, even when something better comes along.
    • The pros and cons of working with event planners to book events.
    • Why you shouldn’t quit your day job (right away) to start a food truck.

    Mentions During the Show

    Motley Crews Heavy Metal Grill This is the official website of the Motley Crews Heavy Metal Grill food truck. Check out tour dates, the unique story behind the truck, and just like any legit touring band they’ve got t-shirts for sale!

    high school photo

    Martie Richie in high school.

    @MotleyCrews Follow Motley Crews on X.

    8 Michigan Food Trucks Win State Grants This is the article I referenced during the podcast. There are opportunities for grants.

    What’s on Tap for Next Week

    Next week, we’ll be covering a topic that many mobile restaurant owners would rather not think about… insurance. Regardless of whether or not you enjoy it, you still need insurance to protect your business and legally operate. Next Friday, I’ll speak to an expert about specific ways to lower your rate and why you should never need to pay for a certificate of insurance.

    I hope to see you again next Friday morning!

    The post Part-time to Full-time on a Food Truck in Only 12 Months appeared first on Food Truck Empire.

    16 September 2024, 1:26 am
  • 19 minutes 41 seconds
    Food Trucks vs Food Carts: Which One Is Better for You?

    When it comes to mobile food businesses, Scott Ross has seen it all. As the owner of Ross RV’s and Food Carts, he’s spent years building both food trucks and food carts, giving him a unique perspective on the pros and cons of each. “It’s not a one-size-fits-all decision,” Ross says, “What’s right for one operator might be a nightmare for another.”

    The Case for Food Trucks

    If you’re looking for mobility and versatility, food trucks might be the way to go. “The biggest advantage with a food truck is that it’s self-contained,” Ross explains. “You’ve got everything in one unit—kitchen, storage, prep space, and the ability to drive to any location at a moment’s notice.” Food trucks are often ideal for operators who want to participate in various events or festivals, where mobility is key. You simply drive to the spot, set up, and start serving.

    scott ross

    Our guest Scott Ross (right) with his son.

    A truck also tends to offer more protection against the elements, which Ross says is crucial if you plan to work year-round. “When you’re inside a truck, you’ve got shelter from the weather, better temperature control, and overall a more comfortable working environment.”

    However, food trucks can be costly. “You’re looking at a much higher upfront investment,” Ross notes. The build-out of a truck can run anywhere from $50,000 to $150,000, depending on the size and equipment you want installed. And then there’s the maintenance. “Trucks have engines, and that means more things that can break down,” he adds. If the truck’s engine needs repair, the whole business grinds to a halt until it’s fixed.

    Here are the key takeaways from the section on food trucks:

    1. Mobility: Food trucks have the advantage of being fully mobile due to their engine, making it easier to relocate to better spots when needed or follow a regular route.
    2. Mechanical Risks: While food trucks offer flexibility, they are also prone to breakdowns. With engines, brakes, and tires to worry about, they have more potential mechanical failures than food carts.
    3. Used Truck Caution: When buying a used food truck, it’s essential to carefully inspect the engine, brakes, and tires. Overlooking these can lead to expensive repairs soon after the purchase, adding stress to a new business.
    4. Urban Advantage: Food trucks are easier to maneuver in tight downtown spaces, making them ideal for operators in urban environments.
    5. Cost: A no-frills food truck can be found for $40,000 to $50,000, but potential maintenance costs should be considered before purchase.

    The Case for Food Carts

    On the other hand, food carts offer a different set of benefits, especially when it comes to cost and simplicity. “Carts are much more affordable,” says Ross. “You can get a really good food cart built for between $30,000 and $45,000.” For entrepreneurs with smaller budgets or those just starting out, a food cart can be a more accessible entry point into the food business.

    Another advantage of food carts is the ease of operation. “You’re not dealing with an engine or transmission,” Ross explains. “If something breaks on a cart, it’s usually something simple like a wheel or burner. You can fix it yourself for a lot less money and hassle.” This lower complexity can also mean fewer regulatory hurdles—depending on where you operate, food carts often face fewer permitting requirements than trucks.

    Ross RV and Food Carts

    Ross RV and Food Carts location.

    However, the downside of a food cart is its reliance on external factors. “With a cart, you’re dependent on the elements,” Ross warns. “If it’s cold, hot, or raining, you’re stuck outside.” Additionally, carts are usually smaller, offering less space for food prep and storage, which can limit the menu options.

    Here are the unique advantages of running a food cart:

    1. Lower Cost: Food carts are generally more affordable than food trucks, making them a lower-barrier option for entrepreneurs just starting out.
    2. Flexibility in Equipment: It’s easier to add equipment to a food cart or trailer due to the extra space. This allows for more cooking equipment and customization options.
    3. Stationary Use: Food carts are better suited for longer-term, stationary setups, like the popular food pods in Portland. They’re not ideal for quick stops or constant relocation, but they work well for catering and fairs.
    4. Space Requirements: While food carts take up more space than a truck, they are often a good fit for locations where space isn’t as limited.
    5. Towing: A reliable vehicle with sufficient horsepower is necessary to tow a food cart, adding to logistical considerations.
    6. Lower Taxes: Food carts may have lower taxes than food trucks because they aren’t self-propelled vehicles. However, it’s important to check local tax codes to confirm this advantage in your area.

    In summary, food carts offer a more cost-effective, stationary-friendly option with flexibility in equipment but require a reliable towing vehicle and potentially take up more space than food trucks.

    Which One Is Right for You?

    The decision between a food truck and a food cart ultimately comes down to your business model, budget, and goals. “If you’re planning to do high-volume, big events, or need to move around a lot, a food truck is probably the better choice,” says Ross. On the flip side, “if you’re looking to start small, save money, or operate in a more confined space, like a farmer’s market or a downtown sidewalk, a food cart can be perfect.”

    food cart trailer

    A food trailer build by Scott Ross.

    Ross emphasizes that neither option is inherently better than the other—it’s about finding the right fit for your business. “At the end of the day, both food trucks and carts can be successful. It’s all about how you run them.”

    Whether you’re opting for the mobility of a truck or the simplicity of a cart, one thing is clear: both have their place in the booming world of mobile food.

    In this podcast you’ll learn the answer to the most frequently asked question Ross gets about building custom food carts. He also shares a list of items you should be thinking about before approaching a manufacturer to build your vehicle, including type of kitchen you want, the pots, pans, shelving that you want on the truck, local health codes, and of course their budget. After all of this information is compiled a floor plan is finalized so that it can be submitted to the local health department. Going through this process helps ensure the inspection process goes fast so that the owner can get up and running as fast as possible.

    Ross has helped launch a variety of mobile food businesses and provides some really helpful advice on the importance of location and having a unique food concept that helps draw customers to you. If you want a different perspective on this subject, our previous guest Laney Strange selected a trailer for her smoothie business. Learn why she decided to get a food trailer listening to this episode.

    The post Food Trucks vs Food Carts: Which One Is Better for You? appeared first on Food Truck Empire.

    13 September 2024, 2:15 am
  • 20 minutes 32 seconds
    How a Hot Dog Stand Saved My Life with Ben Wilson

    Ben Wilson, the man behind LearnHotDogs.com, is known for his no-nonsense approach to entrepreneurship through street food vending. His hot dog cart story isn’t just about slinging dogs—it’s about survival. “It saved my life, literally,” Wilson says. His book, How Hot Dog Carts Saved My Life, details his personal rise from financial hardship to entrepreneurial success, showing that the humble hot dog cart can be a lifeline as much as a business venture.

    The book is equal parts memoir and how-to guide, offering readers practical advice from someone who’s been there and done that. Wilson didn’t stumble into vending with a roadmap. His early mistakes—misunderstanding local codes, using the wrong equipment—taught him lessons that he now shares with others. “I want you to succeed,” he writes, “and I’m going to watch you succeed.” His philosophy? If you’re willing to learn, a hot dog cart can turn into more than just a paycheck; it can change your life.

    ben wilson

    Ben Wilson

    Eventually, Ben decided to get into the hot dog concession business and purchased his first cart. Fast forward two months and Ben’s business had expanded to three carts and he was well on his way toward operating his second successful business. In addition to learning Ben’s story, you’ll also learn what to expect in the hot dog business on the podcast.

    Breaking Down the Profit Potential

    Wilson’s LearnHotDogs.com emphasizes that street food vending, especially with a hot dog cart, can be surprisingly lucrative if you know the game. According to Wilson, a basic hot dog cart can sell anywhere from 100 to 200 hot dogs on a busy day. Let’s break that down.

    • Cost of goods: A hot dog (including bun, condiments, etc.) might cost you around $3.
    • Sale price: On average, vendors charge $7 to $8 per hot dog.
    • Daily profit potential: If you sell 150 hot dogs at $8.00, that’s $1,200 in revenue. Subtracting $450 for your cost of goods, you’re left with $750 in gross profit for one day of work.

    Of course, vending comes with its challenges—location scouting, permits, and weather fluctuations. But Wilson stresses that the business can scale. Add catering gigs or special events, and those numbers can climb fast. Vendors who invest in more elaborate carts or offer specialized menus (like gourmet sausages) can see even higher margins. Wilson has also seen successful vendors who branch into additional streams, such as private events or seasonal festivals, boosting their overall take.

    how hot dogs saved my life!

    Ben Wilson’s book “How Hot Dogs Saved My Life” is available on Amazon.

    For many, a hot dog cart isn’t just an entry-level gig. Wilson believes it’s a stepping stone toward full financial freedom, especially for those who’ve felt shut out from traditional business paths. As Ben explains, “There’s nothing between you and success except air and opportunity.”

    I apologize, but there are few minor technical blips within the podcast. Hopefully there’s nothing major that would prevent anyone from listening. In the future, I’ll be continually improving the audio quality and format of the show. 

    Why Hot Dog Carts Are Low-Risk

    Ben Wilson’s rise in the world of street food vending through his platform LearnHotDogs.com shows just how accessible the hot dog cart business can be for budding entrepreneurs. One of the key reasons behind its success is that hot dog vending is a low-risk business model with several built-in advantages.

    First, the initial investment is relatively modest compared to other food ventures. Wilson himself talks about starting with a basic cart, which typically costs anywhere between $2,000 to $5,000. “The upfront cost is low, and the risks are manageable,” he says. This is a far cry from the six-figure investment required for a brick-and-mortar restaurant or even a fully equipped food truck. The low cost of entry makes it an attractive option for anyone looking to dip their toes into the food business without taking on massive debt.

    ben wilson cart

    Ben Wilson showing off his cart.

    Another reason hot dog carts are low risk? They’re mobile. If you pick a bad location, you’re not stuck. “You can roll your business to where the customers are,” Wilson explains, and this mobility gives you the flexibility to test different markets without the long-term commitment of a lease or mortgage.

    Advantages of Hot Dog Vending

    Wilson highlights several key advantages of vending. First, you don’t need to be a gourmet chef to succeed. The product is simple, the preparation is easy, and the customer demand is steady. Hot dogs are a universally loved food with low preparation costs and high profit margins, especially when paired with sides like chips or drinks.

    Another advantage is that hot dog carts allow for direct customer interaction. This personal touch builds regulars. “People come back for more than the hot dog—they come back for the experience,” Wilson says. Being at the cart, engaging with customers, and providing a memorable interaction turns you into a local fixture, which helps boost both your sales and your reputation.

    Hot dog carts also offer flexibility in scheduling. Vendors can set their own hours, work events on weekends, or cater private parties. This flexibility, combined with the low operational costs, makes hot dog vending an ideal side hustle or full-time gig.

    Growing and Expanding a Hot Dog Business

    Once you’ve mastered the basics, Wilson believes there’s plenty of room for expansion. One method is to diversify your menu. While the core of the business is the classic hot dog, you can add gourmet sausages, specialty toppings, or even vegan options to cater to a broader audience. This not only attracts new customers but also boosts your average sale price.

    Another expansion strategy is to take on larger events or catering gigs, which can drastically increase your revenue. “Catering gigs are where the money’s at,” Wilson says. At weddings, private parties, or corporate events, you can charge premium prices—often $10 or more per hot dog—while serving a captive audience. With these kinds of events, it’s possible to make $1,000 in a single day.

    For those ready to take it a step further, Wilson suggests buying more carts and hiring staff to operate them in different locations. “It’s not unheard of for vendors to expand to multiple carts and turn it into a real operation,” Wilson notes. By scaling up, you can go from a one-cart owner to running a small fleet, turning the business into a significant income stream.

    In the end, Wilson’s philosophy is simple: “Start small, think big, and always be ready to pivot.” With the right hustle and strategy, the hot dog cart business can be more than just a way to make a living—it can be the beginning of something much bigger.

    What You’ll Learn in this Episode:

    • Why hot dog carts are a low-risk business model.
    • Advantages of  hot dog vending.
    • How to grow and expand a hot dog business.
    • How much money you could potentially make with a hot dog cart.

    Mentioned During the Show

    LearnHotDogs.com – Ben’s hot dog vending training site. All the blog posts, videos, and podcasts you would ever need to build this type of concession business.

    Hot Dogs Saved My Life Book – Ben’s book referenced during the podcast.

    If you enjoyed this episode, please share this post with your friends on Facebook and X. I truly appreciate any help you can provide in spreading the word about the Food Truck Empire Podcast. I plan to publish a new podcast episode each Friday and hope you’ll make this podcast a weekly tradition. You can also check us out on iTunes.

    The post How a Hot Dog Stand Saved My Life with Ben Wilson appeared first on Food Truck Empire.

    13 September 2024, 12:34 am
  • 36 minutes 53 seconds
    Serve Faster, Sell More: Speed Tips for Food Truck Owners

    In this exclusive interview, Mark Hamilton breaks down the key to running a profitable food truck: speed. “Serving food faster isn’t just about efficiency—it’s about making more money and keeping customers happy,” says Hamilton. He knows firsthand that the faster you can get food in customers’ hands, the more orders you can serve, and the more likely they’ll come back. Hamilton also shares his “more the merrier” philosophy for avoiding customer burnout, explaining that parking alongside other trucks can help draw bigger crowds and keep things fresh.

    If you’re looking for ways to increase your revenue, improve your workflow, and keep lines moving, Hamilton’s got you covered with specific, actionable tips to serve food faster and grow your food truck business.

    mark's grill

    The guys that are making money are doing it very fast. The people that aren’t are very slow. Mark Hamilton on food truck operations.

    Mark Hamilton knows that in the world of food trucks, speed is more than just a competitive edge—it’s survival. “Serving food faster isn’t just about efficiency—it’s about making more money and keeping customers happy,” he says. And he’s right. In a business where customers expect fast meals, slow service can quickly put you out of business.

    The math is simple. Every extra minute someone waits in line is another potential customer who walks away. If you’re slow, you’re not just losing one sale—you’re losing dozens of sales every week. Mark learned this lesson the hard way.

    Early on, he saw how bottlenecks in his kitchen or hesitation at the order window cut into profits. He refined his operation, streamlining processes and simplifying his menu until his team could serve at lightning speed. Hamilton’s point is clear: speed is key to long-term success in the food business.

    Ways Cut Service Times and Increase Profit on a Food Truck

    Build a Team: Mark Hamilton doesn’t leave anything to chance when it comes to speed. His truck, Mark’s Grill, runs like a well-oiled machine, and that’s thanks to a tight-knit, four-person team he’s trained to deliver fast service without sacrificing quality. The secret? Every team member has a specific role, and each of them is trained to master it with precision.

    Hamilton starts by breaking down the truck’s operation into simple, repeatable tasks. “Everyone knows exactly what they’re responsible for, and they stick to it,” he explains. One person handles the grill, another the prep station, a third person manages the finishing and plating, and the fourth takes orders and runs customer service. This way, no one’s stepping on each other’s toes, and the line keeps moving.

    His training process is hands-on and detail-oriented. Every new team member spends time with Hamilton learning not just how to cook, but how to cook efficiently. They practice prepping ingredients, assembling dishes, and moving through the small space quickly. “It’s all about muscle memory,” Hamilton says. Repetition creates speed, and speed creates more orders. There’s no room for hesitation, so Hamilton drills his team until the process feels natural.

    Marks Grill Menu

    Mark’s Grill keeps things simple so they can serve customers faster.

    Food Truck Kitchen Design: The kitchen of Mark’s Grill was designed with one thing in mind: speed. Every inch of space serves a purpose, and there’s no room for wasted motion. “It’s tight, but everything’s within arm’s reach,” Mark Hamilton says. From the placement of the grill to the prep station, it’s all laid out to keep his team moving efficiently.

    Hamilton studied fast food giants like McDonald’s, mimicking their use of vertical space and streamlined workflows. Ingredients are prepped and stored within easy reach, with sauces, toppings, and buns all organized for quick grabs. The grill’s positioned right next to the assembly line, so food moves from cook to prep in a matter of seconds. “It’s intense,” Hamilton admits, but the setup keeps the team working fast, allowing them to churn out more orders in less time without missing a beat.

    never park alone

    Mark suggests never parking alone as a food truck.

    Efficient Packaging: Mark Hamilton understands that packaging can make or break a food truck’s speed. “It has to be simple, sturdy, and fast to use,” he says. His packaging is designed for efficiency—no complex folds, no extra steps. Burgers go into easy-to-close clamshells, fries into durable paper bags, and everything fits snugly together, minimizing time spent fiddling with lids or wrapping.

    Hamilton avoids containers that require extra assembly or double-bagging, opting for materials that can handle heat and grease without compromising speed. “The goal is to get it packed and out the window in under 30 seconds,” he explains. Even the placement of packaging is intentional—stored within arm’s reach of the team, so there’s no time lost searching for the right size or item. With everything streamlined, Hamilton’s team can focus on getting food to customers fast, without sacrificing quality or presentation.

    Keep the Menu Simple: Keeping a simple menu is central to Mark Hamilton’s approach, and it’s not just about limiting choices—it’s about making everything easier to serve. “The fewer items you have, the faster you can prep and cook,” he explains. By focusing on a handful of core dishes, Hamilton’s team can master them, ensuring consistent quality and quick turnaround.

    Each menu item is built around ingredients that can be prepped in bulk and used across several dishes. “It cuts down on both time and confusion in the kitchen,” says Hamilton. With fewer ingredients to juggle, there’s less risk of mistakes or delays. This simplicity also means his team doesn’t get bogged down by complex orders, and the streamlined process lets them serve more customers in less time.

    What You’ll Learn

    • How Hamilton worked with his city council in Memphis to negotiate and help educate local government about food trucks.
    • Why Hamilton decided to create his own vehicle, purchased a Morgan Olson 18 foot cargo step van, gutted it, and put in a complete restaurant kitchen.
    • Learn how the kitchen of Mark’s Grill was designed for speed and efficiency. It’s pretty intense.
    • How Hamilton built a workflow for taking orders, gathering items, and getting product out the window as quickly as possible.
    • Why the speed at which you can serve customers can literally make or break a food business.
    • How to identify a food niche in your area.
    • How Hamilton trains a team of four people to operate the truck.
    • Why you should invest a lot of time considering the layout of your mobile kitchen.
    • The importance of having multiple locations to park.
    • Why you should always work in teams of food trucks and never park alone.

    Mentioned in the Episode

    Mark’s Grill – This is the official website of Mark’s Grill. Check out the menu and find out where in Memphis the truck will be located next.

    Morgan Olson – This is the brand of van that Hamilton purchased for his business.

    Shelby Farms – A major park in the city of Memphis where you can often find Mark’s Grill.

    The Food Truck Owners Guide to Dealing with Bad Reviews – This is the post I put together to help you manage the listings people see when they type the name of your food business into Google and other search engines. I explain this in more detail on the show.

    The post Serve Faster, Sell More: Speed Tips for Food Truck Owners appeared first on Food Truck Empire.

    10 September 2024, 1:30 am
  • 15 minutes 44 seconds
    Linda Jo Kushner Raised $20,265 for a Food Truck on KickStarter

    In this Food Truck Empire exclusive, Linda Jo Kushner of Linda’s Luncheonette opens up about how she successfully raised $20,265 on Kickstarter to bring her dream of owning a food truck to life. Linda’s story is a testament to the power of personal connection and grassroots marketing.

    For those unfamiliar with the website, KickStarter is a crowdsourcing website that allows users to vote with their pocket books on creative projects they feel could be worthwhile or personally connect with. Funding for numerous food trucks have already been raised through KickStarter along with thousands of other projects that range from comic books to cookbooks.

    linda-luncheonette

    Linda’s Luncheonette Food Truck.

    The Backstory

    Linda wasn’t your typical food truck entrepreneur. She had spent years working as an interior designer, building a solid network of clients, friends, and family along the way. When she decided it was time for a midlife career change, she turned to this network for support. Linda wrote a heartfelt email detailing her vision of launching a food truck and candidly shared her journey of wanting to change careers to pursue her passion for cooking. “I just put it all out there,” Linda says. “I told them about my dream and how much it would mean to me. I was honest about being scared, but I was even more excited about finally doing something I loved.”

    Linda asked everyone she knew to not only consider donating to her Kickstarter campaign but also to help spread the word by forwarding her email to ten more people. This simple yet effective strategy expanded her reach far beyond her immediate circle. To further connect with potential backers, Linda created a video that showcased her personality and enthusiasm. She offered unique rewards like Linda’s Luncheonette t-shirts, branded lunch boxes, and coupons for a free lunch in the future—small tokens of appreciation that added a personal touch.

    wrap mockup of food truck

    Linda included a mockup of her food truck design on her crowdfunding page.

    The Fundraising Process

    If you’re looking to replicate Linda’s success, here’s a detailed outline based on her approach in the podcast:

    1. Tap into Your Personal Network: Begin by reaching out to friends, family, and colleagues who already know and trust you. These are the people who are most likely to support your vision and be enthusiastic about helping you succeed. Make a comprehensive list of contacts, including those you may not have spoken to in a while. Every connection counts.
    2. Craft a Personal Story: Your story is your most powerful tool. Write an email or create a video that clearly articulates your journey, your passion, and your vision for your food truck. Be authentic and transparent about why this project is important to you and what it means for your future. Share your challenges and your hopes—people are more likely to connect with you emotionally if they understand the stakes.
    3. Encourage Sharing: To expand your reach, ask your contacts to forward your message to others who might be interested in supporting your campaign. Provide them with a simple call to action, like sharing your email or social media posts with ten friends. This word-of-mouth strategy can significantly broaden your audience, tapping into networks you wouldn’t have access to otherwise.
    4. Offer Meaningful Rewards: Think carefully about the rewards you offer to your backers. Choose items that reflect your brand and have personal significance. For instance, branded merchandise, like t-shirts or lunch boxes, can create a sense of community among your supporters. Offering future discounts or coupons for a free lunch can also encourage repeat business and build anticipation for your launch.
    5. Stay Engaged and Communicate Frequently: Throughout your campaign, keep your backers updated on your progress. Share milestones, thank your supporters, and make them feel like they’re part of your journey. Regular communication helps maintain momentum and shows your backers that their contributions are making a real difference. Consider using social media updates, email newsletters, and behind-the-scenes videos to keep your audience engaged and excited.
    6. Leverage Social Media and Online Platforms: Beyond email, use social media platforms to share your story and campaign. Engage with your audience by posting updates, sharing personal anecdotes, and responding to comments. Use these platforms to create a sense of community and build excitement around your food truck journey. The more visible and active you are, the more likely people are to support your campaign.

    By following these steps, you can create a compelling campaign that not only raises funds but also builds a community around your food truck dream. Just like Linda, putting yourself out there can open the door to incredible opportunities.

    What You’ll Learn in this Episode:

    • Why KickStarter is such an incredible opportunity for aspiring food cart entrepreneurs.
    • How Linda Jo Kushner acquired over $20,000 in funding in less than 30 days.
    • How to generate awareness for a campaign.
    • Advice for launching your own crowdfunding initiative.
    • The simple email strategy you can use to gain more supporters.

    Mentioned During the Show

    Linda’s KickStarter Profile – Take a look at Linda Jo Kushner’s submission to KickStarter. This is the campaign that raised $20,265 for Linda’s truck. You can also watch Linda’s video here as well.

    How KickStarter Works – Learn more about this platform for fundraising. Thank you so much for your continued support. See you next time for another new episode!

    The post Linda Jo Kushner Raised $20,265 for a Food Truck on KickStarter appeared first on Food Truck Empire.

    29 August 2024, 1:55 am
  • 16 minutes 54 seconds
    Never Pay for a Certificate of Insurance for a Food Truck & Other Tips

    Odds are insurance isn’t a topic that is top of mind for you as a food truck owner… until you actually need to use it. In episode of the podcast we speak with Jonathan Rausch, an insurance agent in Florida that specializes in insuring food trucks. To date, he’s helped over 50 trucks protect their investments with insurance coverage.

    In this FTE exclusive, Rausch shares his insights into coverage for food trucks along with common-sense advice for lowering your monthly rate. This episode provides insights for food truck owners looking for their first policy or existing vendors, including key questions you should ask your insurance agent.

    jonathan rausch

    Today’s guest is Jonathan Rausch.

    Here are five key questions you should be asking your insurance agent—and why they matter.

    • What Does My Policy Actually Cover?
      This might seem like a no-brainer, but it’s crucial to know exactly what your policy includes—and, more importantly, what it doesn’t. Does your general liability insurance cover accidents involving customers and passersby? What about property damage? Ask your agent to break down the specifics so you’re not left guessing when something unexpected happens.
    • Are There Any Coverage Gaps I Should Be Aware Of?
      Even the best insurance policies can have gaps, areas where you might think you’re covered but aren’t. Ask your agent to review potential gaps that could leave you exposed. For instance, does your property insurance cover theft of equipment outside of operating hours? Knowing these gaps upfront allows you to address them proactively, rather than finding out the hard way when it’s too late.
    • How Can I Lower My Premiums Without Sacrificing Coverage?
      Insurance is a necessary cost, but that doesn’t mean you should pay more than you need to. Inquire about any available discounts, such as bundling policies, taking safety courses, or installing security systems. Your agent should be able to offer suggestions on how to maintain robust coverage while keeping costs in check.
    • What’s the Claims Process Like?
      When disaster strikes, the last thing you want is to be bogged down by a complicated claims process. Ask your agent to walk you through how to file a claim, what documentation you’ll need, and how quickly you can expect to see a resolution. A quick and efficient claims process can make all the difference in getting back on your feet after a loss.
    • Can I Update My Policy as My Business Grows?
      Your food truck business today might not be the same as it is a year from now. You could add another truck, expand your menu, or start attending more events. Ask your agent about the flexibility to adjust your policy as your business evolves. A good insurance policy should be able to grow and change with you, providing the coverage you need at every stage.

    Already have insurance? Here’s are steps you can take to evaluate your food truck insurance policy. 

    1.) So, when was the last time you took a good look at your policy? If it’s been a while, it might be time to shop around. Just like with regular car insurance, rates can change, new discounts can appear, and competitors might offer better deals. It’s a simple step to ensure you’re not dishing out more than necessary. Remember, every dollar saved is a dollar you can reinvest back into your business, your food, and ultimately, your dream.

    2.) When it comes to insurance, some costs are inevitable, but there are others you simply shouldn’t have to pay for—like certificates of insurance. A certificate of insurance (COI) is a crucial document that proves you have the necessary coverage to operate your food truck, often required by event organizers, landlords, or local governments.

    Here’s the kicker: some insurance carriers charge for issuing these certificates, but that shouldn’t be the case. Certificates of insurance are a standard part of doing business, and reputable insurers understand this. They know that food truck owners need these documents frequently, and charging for them is just an unnecessary expense that eats into your profits.

    the rolling stove

    The Rolling Stove was Rausch’s first food truck insurance client.

    If your current insurer is making you pay for every COI, it’s a clear sign that you should start looking elsewhere. Plenty of carriers provide certificates of insurance at no cost, understanding that supporting their clients with hassle-free documentation is part of the service. By choosing a carrier that offers free COIs, you’re not only saving money but also time and frustration. Remember, your insurance provider should work for you, not against you.

    3.) Commercial auto policy. Why is this area ripe for discounts? It’s simple: commercial auto policies cover a lot of ground, literally and figuratively. These policies don’t just insure your food truck; they encompass the vehicle’s use, the drivers, and sometimes even the equipment inside. Because of this broad scope, there are numerous factors that insurers consider when calculating your premium, and plenty of opportunities to adjust those factors in your favor.

    So, what should you be looking at when evaluating a commercial auto policy? Let’s start with the basics.

    1. Mileage and Usage: How often and how far is your food truck on the move? Policies are often priced based on your truck’s usage, so if you’re operating locally or seasonally, you could be eligible for a lower rate.
    2. Driver History: Who’s behind the wheel matters. A clean driving record can substantially reduce your premium, while a history of accidents or violations could do the opposite.
    3. Vehicle Safety Features: Does your truck have the latest safety technology? Insurers often provide discounts for vehicles equipped with advanced safety features, such as backup cameras, lane departure warnings, and anti-theft systems.
    4. Bundling Policies: Sometimes, the more you bring to the table, the better. Bundling your commercial auto policy with other types of insurance, like general liability or property insurance, can result in significant discounts.

    As Rausch emphasized in the podcast, the key is to dig into the details of your policy and don’t be afraid to ask for a better deal. The commercial auto policy is not just a necessity; it’s a chance to save big, so make sure you’re not leaving money on the table.

    New truck owner looking for insurance for the first time?

    Here’s a rundown of the essential types of insurance every food truck owner should consider, as shared with me by insurance professional Jonathan Rausch.

    1. General Liability Insurance: This is your first line of defense against the unexpected. General liability insurance covers bodily injury, property damage, and even some types of advertising injury. Whether a customer slips in front of your truck or someone claims your marketing slogan is too close to theirs, this policy has you covered.
    2. Commercial Auto Insurance: We talked about this one already, but it bears repeating. Your truck is more than just a kitchen—it’s a vehicle on the road, subject to all the risks that come with driving. A commercial auto policy protects you against accidents, collisions, and other road mishaps. It’s an absolute must-have for any food truck owner.
    3. Property Insurance: Your food truck is a mobile kitchen, filled with expensive equipment. Property insurance covers your truck, cooking equipment, and other valuables in case of theft, vandalism, or damage. Think of it as a safeguard for your investment, ensuring you can get back on the road if something goes wrong.
    4. Workers’ Compensation Insurance: If you have employees, even just one, you’ll likely need workers’ compensation insurance. This coverage is designed to protect both you and your employees in the event of a work-related injury or illness, covering medical expenses and lost wages.

    Every food truck is unique, so it’s essential to tailor your insurance to fit your specific needs. As Rausch wisely pointed out, the right coverage can mean the difference between a minor hiccup and a business-ending disaster.

    What You’ll Learn

    • How to get a lower rate on food truck insurance.
    • The one thing every policy should contain.
    • The questions you should be asking your truck insurance company.
    • The types of insurance coverage each food truck needs.

    Show Mentions

    The post Never Pay for a Certificate of Insurance for a Food Truck & Other Tips appeared first on Food Truck Empire.

    26 August 2024, 1:25 am
  • 36 minutes 53 seconds
    How to Start a Sustainable Coffee Truck in 6 Steps

    Thinking about starting your own coffee truck? In this blog post we guide you through the steps required start a profitable coffee truck or cart business from someone that’s already done it. My goal is to give you step-by-step instructions on the startup process from market research to business planning, equipment and startup costs. Find out if you really want to open a coffee cart business below. 

    coffee trailer

    Learn how to start a coffee trailer like this one.

     

    Background

    Listen to the full podcast interview where you’ll learn how Drew created a one-of-a-kind brand for the Mo’ Joe A Go-Go coffee business. From sourcing of product to the equipment used on the truck everything is 100% unique. Matt Drew’s story began not unlike other mobile food entrepreneurs I’ve interviewed in the past. Drew was employed as a marketer in a corporate setting and found himself less and less passionate about the work.

    Drew also had a daughter on the way and started to question the point of putting in 12 – 16 hours per day for someone else, and ultimately wondered what his legacy would be if he continued down this path. So Drew made the decision to change the trajectory of his life in a big way by starting a coffee truck.

    Step 1: Market Research & Business Planning 

    The first step you need to take in starting a coffee truck business, before you even start thinking about the equipment, the size of cart to buy or the licenses you’ll need to operate is to take some serious time to consider the brand you want to grow. This means evaluating your competitors in the local market to see where your business can fit in and developing an in-depth business plan. 

    Italian coffee truck

    Outside an Italian style coffee truck.

    Here’s how Drew differentiated his coffee truck from others in Texas: 

    • Organic Products: Drew emphasized that everything sold on the mobile unit would be organic and sustainably grown whenever possible. This requirement applies to every detail of the business from the food to drinks to the dairy served. The tagline of the business even reflects this: The Freshest Coffee Sustainably Grown and Artfully Crafted.  
    • Responsibly Sourced and Fair Trade Beans: One regrettable aspect of the coffee industry as a whole is farmer’s are often located less developed countries have often made the least amount of money from their product. Drew has worked to ensure that the beans purchase with his business are through farms are Fair Trade, meaning they have responsible growing practices and are fairly compensated.
    • A Unique Product: By As you can see from the examples above that by following these brand guidelines, it results in a product you can’t get anywhere else locally as a consumer. If you want a cup of coffee with an impactful story behind it there’s only one place to find it.

    Based on your competitor and market research, come up with a concept that stands out. This could mean specializing in artisanal coffees, offering a broad selection of beverages (like teas, smoothies, etc.), or even focusing on a particular theme or experience (eco-friendly practices, local sourcing, etc.).

    You want to be able to say, “We’re doing something that nobody else is doing. We’ve got something that nobody else has and this is the only place you’re going to be able to find it.” Because if you can’t say that there’s really nothing compelling to be able to talk about with your brand. – Matt Drew on the importance of branding for mobile food owners. 

    Create a detailed business plan that outlines your vision, target market, competitive analysis, financial projections, and marketing strategies. This plan will be essential for guiding your business and securing any needed financing.

    To have any type of successful food business, you need to be able to differentiate the core product in a meaningful way. By establishing the things that are most important to your business this will make the process easier.

    Step 2: Make a Sample Menu 

    For a new coffee truck, it’s wise to start with a streamlined menu of around 8 to 12 items. This approach allows you to focus on quality, manage inventory efficiently, and streamline the training process for your team. And Caleb Goodrum of Refuge Coffee Co. points out, “You’ve got limited space in a coffee truck—every inch counts so you need to maintain a focused menu. ” Here’s what a small coffee truck menu might look like: 

    • 3 to 4 Coffee Classics: Include essential coffee offerings like Espresso, Americano, Latte, and Cappuccino. These cater to the traditional coffee drinker and form the backbone of your menu.

    • 2 to 3 Specialty Drinks: Introduce a few unique or seasonal beverages that can differentiate your truck, such as a signature Mocha, a seasonal Pumpkin Spice Latte, or a unique Iced Coffee blend.

    • 1 to 2 Non-Coffee Options: Not everyone drinks coffee, so having alternatives like Chai Latte, Hot Chocolate, or a selection of teas can broaden your customer base.

    • 2 to 3 Food Items: Depending on your capability to handle food, offering a small selection of grab-and-go items like croissants, muffins, or breakfast sandwiches can complement the drinks and provide a complete breakfast.

    Over time, you can gradually expand your menu based on feedback and sales data, introducing new or seasonal items that your customer base might enjoy.

    Step 3: Coffee Truck Equipment Checklist 

    This is a checklist of basic equipment installed on a coffee truck. Pro Tip: Drew recommends investing in quality equipment versus the lowest priced because it’s the heartbeat of your business. You don’t want to be dealing with repairs, replacements, and a lower quality product. 

    • Espresso Machine: An espresso machine will be the most expensive single piece of equipment you install on a truck. Expect to pay between $2,000 – $10,000 depending on the model and if you anticipate buying new or used. The UNIC Stella Di Cafe  is the exact model of espresso machine used by Drew. This is a high-end Espresso machine from Italy. 
    • Drip Coffee Maker: A significant percentage of your clientele will want a regular drip coffee. A commercial drip coffee maker will run you around $1,500 – $2,000. But you could invest even more if you want top of the line equipment.
    • Grinder: This is required for grinding coffee beans on a daily basis for the freshest tasting coffee. The ballpark cost for a commercial grade grinder is $500 – $1,000. 
    • Blenders: For making blended coffee drinks and smoothies. A good commercial blender for a coffee truck needs to be durable, powerful, and able to handle high volumes of use throughout the day and will cost $1,000 – $2,000. 
    • Commercial Refrigerator: You need this to keep milk, cream, and other products cool. Expect to shell out $2,000 – $5,000 for something reliable. 
    • 3-Compartment Sink: This is a standard requirement anywhere you operate in the United States. This is needed to washing dishes, spoons, and other cutlery. 
    • Plumbing and Water Tanks: You need these to store clean and grey water. This is roughly $2,000 – $3,000 for equipment and installation by a processional. Unless you’re extremely handy, this is not a project you want to take on yourself. 
    • Cash Register or Point of Sale (POS) System: Crucial for processing customer transactions efficiently and managing sales data.
    • Generator: If you plan to operate a coffee truck, don’t cut corners on this piece of equipment. As a coffee truck, you’ll have higher electrical requirements than most food trucks. Espresso machines, drip coffee makers, and blenders all require a lot of energy. You don’t want to lose power when you have a big rush and all your equipment is running. Around $3,000 – $7,000 should be invested on a quiet running generator that won’t scare off customers. 
    • Initial Inventory: Don’t forget about a the little things you need to start a coffee truck. Paper cups, stir straws, lids, napkins, sugar packets, coffee beans, cleaning supplies, a plastic garbage can and other necessities add up quickly. It’s essential that you take the time to itemize every little thing you end need to purchase for the truck. As a rough estimate, expect to pay $2,000 for inventory. 

    These are the basic components of a coffee truck, but keep in mind that your vision may require additional equipment. Do you plan to serve breakfast sandwiches? Consider a commercial panini maker. Take the time to figure out what you plan to serve on the truck and then work backward to determine equipment needs. 

    Determine your startup costs, which include the coffee truck, equipment, initial inventory, permits, and marketing expenses. Then, secure financing if needed, which could be through savings, loans, or investors.

    Step 4: Build a Daily Operations Plan 

    Wondering what it’s like to operate a coffee truck truck on a daily basis? “My mornings typically start at about 3 a.m…. and that sucks.” says the founder of Mo’ Joe a Go Go Matt Drew. 

    Drew’s days usually start at 3 a.m. This has been a challenge at first because Drew used to be a night owl. But in order to get the serving window up between 6:00 a.m. and 6:30 a.m., it requires waking up a few hours early to prep for the day, drive to the vending location, and prepare for service.

    Here’s what a typical day in the life of a coffee truck owner looks like: 

    Prep Work

    • It takes roughly an hour each day to complete prep work. This includes cleaning for the day, grinding coffee beans, getting drip coffee ready, placing breakfast items like muffins out. Much of this work is completed at a commissary before heading out on the road.

    Travel to Vending Location

    • One of disadvantages of operating any type of food or beverage truck is that you need to commute to a different destination each day. Take the distance between your commissary and vending location into consideration before committing to it.
    • Commuting to and from your home base is a non-revenue generating activity. The farther you drive the more gasoline you use too. Try to keep one-way drive times under 30 minutes whenever possible as a best practice for saving time and money. 

    Running the Coffee Truck

    • As you might expect, morning is the busiest time for a coffee truck business. Coffee is a beverage most people enjoy after they wake up. As a result, you can expect more traffic before lunch as a general rule of thumb. Of course, you could always get into serving iced coffees to capture the afternoon crowd. 
    • Drew insists that you should not limit yourself to operating in the AM as a coffee truck. A rush of customers can happen at just about anytime depending on the location. As you get more familiar with your regular vending spots, you’ll get a sense of regular cadence between busy and slow times. 
    wandering coffee

    Opening a coffee trailer?

    You can start to estimate your break even numbers for the business as a whole by determining the cost of your coffee, how many sales you anticipate, and the profit margin of each customer. I advise putting together a formal business plan to come up with a basic sales forecast. 

    As a general rule of thumb, you’ll want to shoot for over $100,000 in sales per year as a full-time owner operator. This will ensure you’re able to pay for licenses, the truck, insurance, inventory and other expenses for the business. 

    Refuge Coffee Co. Food Truck.

    Refuge Coffee Co. Food Truck.

    When you do get the opportunity for downtime, make sure to take advantage of it. Use these breaks as an opportunity to clean the truck, promote the business on social media, or follow up on catering opportunities. 

    As Drew stresses in the interview, every day operating a food truck is a little bit different. Be prepared for anything in the early days and recognize that you will be looking for ways to improve processes and operations overtime. 

    Step 5: License Requirements and Permits

    The permits and license requirements of a coffee truck are different across each city and state in the United States. The bottom line is you will need to figure out the legal requirements to operate the coffee business in your specific area.

    That being said these are the standard licenses and permits in most areas:  

    • Health Permit: This permit allows you to sell food or beverages to the public. Contact the county health department website you plan to operate for more information on what you’ll need to acquire this essential license. 
    • Fire Department: The local fire department will check your HVAC system and fire extinguishers to ensure you meet their requirements. 
    • Business license: Establishing a formal business entity whether that’s a sole proprietorship, LLC, partnership or corporation is required in the United States. This will also get you an EIN number. 
    • Vehicle license: Whether you own a trailer or truck, you’ll need a license within the state you plan to operate just like any other vehicle on the road. 
    • Food Handlers permit: Many cities and counties require that you take a class and pass a test for handling food. This permit is often required for a coffee truck even if you don’t plan to cook any food on the unit. 
    • Special event or temporary permit: If you plan to vend at special events like concerts, you will need to work with the event planner to identify what’s needed and the costs. 

    Related Reading: Why Do Coffee Shops Fail? 232 Owners Share Top Reasons

    • Zoning and Parking Permits: Depending on the city or county, there might be specific regulations about where you can park your coffee truck and for how long. Zoning permits ensure you’re operating in compliance with local laws regarding mobile food vending locations.
    • Liability Insurance: To protect your business from potential lawsuits or claims related to accidents, injuries, or other liabilities, having comprehensive liability insurance is crucial. This insurance can cover everything from customer injuries to employee accidents on the job.
    • Workers’ Compensation Insurance: If you’re planning to hire employees, most states require you to carry workers’ compensation insurance. This insurance provides wage replacement and medical benefits to employees injured in the course of employment.
    • Commissary Agreement (if applicable): Some local health departments require mobile food units to operate out of a licensed commercial kitchen or commissary. This agreement proves your access to such a facility for food prep, storage, and sanitation purposes.

    Step 6: Launch

    Plan a launch strategy for your coffee truck. This could include a soft opening, special promotions, and events to generate interest and attract customers.

    Soft Opening

    First up, you’ve got your soft opening. This is your trial run before the grand opening. Invite friends, family, and maybe a few local influencers or bloggers. The goal here isn’t just to celebrate; it’s to test your operations under real conditions. You’ll figure out the kinks in your workflow, how quickly you can serve up orders, and get some honest feedback on your coffee and menu items. Plus, it’s a great way to start spreading the word through personal networks and social media buzz.

    Community Engagement 

    Don’t forget the power of the local community. Attend farmers markets, local festivals, or charity events where you can serve your coffee and get to know your customers. Engage with people, share your story, and get feedback. Being active in the community can build a loyal customer base that supports you not just for your coffee, but for your involvement and contribution to the area.

    Collaborations can be gold. Partner up with local businesses or events that complement your coffee truck. Think bookstores, art galleries, or even fitness studios (everyone loves a good coffee after yoga or a workout). This not only broadens your exposure but also aligns your brand with other local favorites.

    Collaborations & Events 

    Hosting events can also draw in crowds. Consider a launch event that’s themed—maybe a ‘Coffee and Live Music’ morning, or ‘Coffee Art’ where you showcase some latte art skills. Make it unique, make it memorable, and most importantly, make it Instagrammable. Social media love is free advertising.

    Remember, even after you start your coffee truck continue to gather feedback from customers and adjust your menu, operations, and marketing strategies as necessary. Stay adaptable and look for opportunities to grow your business, such as catering events or expanding your menu. The launch of your business is only the beginning of the adaptations and adjustments you’ll need to build a profitable coffee business. 

    How Much Does It Cost to Start a Coffee Truck?

    Expect to invest $50,000 minimum for a coffee truck that will pass your local health inspections with quality equipment installed and is reliable. You could easily spend as much as $100,000 or more on the truck you select and if the truck is brand new.

    Here’s the estimated cost of a few different mobile coffee businesses:

    • Coffee Push Cart or Bike: $10,000 – $25,000
    • Coffee Trailer: $30,000 – $60,000
    • Coffee Truck: $50,000 – $100,000 (Coffee trucks cost more because they have an engine.)

    You might read something on blogs or forums of folks that have been able to open a coffee trailer for $20,000. It is possible by investing in a coffee cart that’s lower in price by buying used or non-commercial grade coffee equipment. But keep in mind that you’ll still need a vehicle haul a coffee trailer that isn’t included in these costs. If you already own a truck investing in a coffee trailer could be a good option. If you plan to serve in a stationery location, a trailer can also be a smart way to keep startup costs low.  

    Related Reading: How to Start a Coffee Shop on Your Own Terms

    The other thing you want to keep in mind is that the truck is literally the face of your brand. If the truck doesn’t look good on the outside, people will associate the appearance with the quality of your coffee too. You’ll want a vehicle that looks good to give yourself the best chance of success. 

    Keep in mind that the figures mentioned above are broad estimates. Determining the the average cost of a coffee truck is always difficult to answer because it’s a variable cost that will depend on the size, year, equipment installed (this is a big one), business licenses in your area, if you’ll be operating a truck or trailer, and who is building it.

    It’s a lot like asking someone the average price of a car. The price of a car will depend on the model, age, mileage, upgrades and other factors. 

    How Profitable is a Coffee Truck?

    Based on our survey of 223 full-time food truck owners, over 50% report generating at least $150,000 in revenue per year after 2 years or more in business. Coffee truck owners can expect to see similar revenues if you operate the business full-time and establish name recognition locally. Profit margins for coffee trucks and cafes often range from 15% to 25%, but these figures can be higher or lower based on the specifics of the operation. 

    For example, if a coffee truck generates $15,000 in sales per month and has costs of goods sold at 35% ($5,250), labor and additional expenses totaling 50% ($7,500), the profit before taxes would be $2,250, which is a 15% profit margin. Most new coffee truck founders do all the work themselves and eliminate the labor expenses and retain those profits for themselves. 

    Overall, coffee is a high-profit margin business. A cup of coffee that costs you less than 50 cents to produce can be sold at retail for $3.00 – $4.00 a cup on average. 

    wandering coffee

    Opening a coffee trailer?

    You can start to estimate your break even numbers for the business as a whole by determining the cost of your coffee, how many sales you anticipate, and the profit margin of each customer. I advise putting together a formal business plan to come up with a basic sales forecast. 

    As a general rule of thumb, you’ll want to shoot for over $100,000 in sales per year as a full-time owner operator. This will ensure you’re able to pay for licenses, the truck, insurance, inventory and other expenses for the business. 

    The post How to Start a Sustainable Coffee Truck in 6 Steps appeared first on Food Truck Empire.

    11 February 2024, 1:30 am
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