Renting vs buying a used food truck

Renting vs buying a used food truck

Want a truck to run your grocery business?  here is how much it will cost to build, buy or lease a food truck and where to get it  .

More and more consumers are turning to food trucks for breakfast, lunch, dinner and snacks. Food trucks grossed $ 1.2 billion in 2009, according to an industry survey, and the annual growth rate increased 8.4% between 2007 and 2012, as there are more than 15,000 trucks in catering in the United States, of which continue to grow. Those who eat out regularly buy their food from at least one catering van, and it is estimated that young adults who eat out are more likely to spend at least $ 150 per week to purchase food from catering vans.

If you are an entrepreneur looking to get into the food and restaurant industry, you will find that the truck business will make it easier for you to enter the industry because not only will you have an affordable cost compared to a traditional restaurant, but you don’t need to have a solid business base. The food truck industry is becoming more and more competitive as even successful restaurants are now doing so to sell their restaurants.

However, like any business that you are planning to start, you must have a plan in place before you start your business. It will help you understand how to market your business, communicate with and with your customers, and know the value of what you have to offer.

It is also important that you know the size of vehicle you want: once received, you will be able to make an ideal plan of the different equipment you will need depending on the dimensions of the vehicle. It is important that your budget is as realistic as possible.

Just because you are going to be running a truck sales business doesn’t mean you won’t be working in a brick and mortar building anyway, because you will need a commercial kitchen where you can cook, do your shopping. overnight and get cool water.

2 factors to consider before buying a food truck

Food trucks come in a variety of sizes. Either you choose a small food cart or a huge trailer that hooks up to a huge truck. Food trucks have found several creative methods in recent years to serve their creations. To narrow the field down a bit and choose the type of food truck you are considering, you need to make the following three key decisions.

  • Truck size

When you are planning to buy a catering truck, the very first thing that you need to decide is the size of the truck. Keep in mind that many cities have restrictions on truck feed and parking space, so it is very important that any vehicle you purchase complies with these local regulations.

  • Truck equipped or custom assembly

Once you have decided on the look of your truck from the outside, you still need to decide how you want it to be on the inside. Many food trucks available for sale are already equipped with all the kitchen equipment and sanitation systems needed to successfully create a mobile restaurant that complies with local health laws. The initial cost of a basic truck will be less than that of a regular truck, but you will still have to spend more to buy and install all the equipment and tools you need.

The purchase price of a base truck or its configuration can vary widely depending on factors such as the condition of the truck, the equipment you need and where you purchase the vehicle from, so it is very important to compare and cancel prices carefully and take additional considerations into account. love the flexibility you could enjoy choosing your own hardware and cabinetry.

Buying a new food truck vs renting a food truck

After the above considerations, the next step is to decide whether you want to buy a used food truck, buy a new food truck, or rent a food truck. Please note that each option has its own benefits and risks, so you should carefully weigh your funding source, expected costs, and expected profit before you start signing any documents. In all honesty, it will be very difficult to say that one option is more profitable than the other, as the final price will only depend on your particular situation and the truck itself.

However, keep in mind that if you have a lender or investor, their financing may depend on your choice of a particular type of truck, especially if you have specified costs in your business plan based on a specific option. That is why we suggest that you seek advice from your financial sponsors or a trusted business advisor to help you choose the best option, weighing the funding situation and the market.

Is buying a new truck better than leasing a truck?

If you’re more interested in a used truck, new truck, or rented truck, you can choose a trim level or base vehicle of any size in each variant. But you have to understand the pros and cons of each option you choose.

Buy a used truck or van

If your goal is to buy a food truck, used cars are cheaper than new trucks in the short run. We suggest you buy food trucks from business owners who are closing a store or moving to larger and better trucks.

This option is cheaper than buying a new custom truck and the job is often already done for you. Choosing what type of equipment your truck needs can be overwhelming and confusing, especially if you want flexibility in choosing what types of food you’ll cook or in which cities you’ll spend most of your time. When buying a used food truck it is an easy decision as there are fewer options to do since most of the work has already been done for you. Your best bet is to find out which used truck best fits your ideas.

  • Underwater rocks

Indeed, buying a used truck can be very risky. We can all agree that it is good to reduce the cost of pre-purchasing your truck, but remember that you might have higher repair and maintenance costs than someone who has switched to a new truck. We suggest that you have a trusted mechanic inspect any used restoration truck you intend to purchase before you put your money aside and, if you can, request a full report on the truck. ‘vehicle history to make sure you have all the information about the truck. …

Where to buy a used food truck?

We are confident that you can find used food truck listings on some of the popular auction and sale sites including eBay and Craigslist. Your local food truck association may even provide food truck owners with a place to sell their vehicles and equipment. Note that you can also visit sites such as Road Stoves and Commercial Truck Trader or your local car dealership for used food truck listings. for sale. You can also ask your favorite local food truck owners where they got their trucks.

Buy a new food truck

If you have the option of buying a new truck, you can find a new truck that fits your dream, or find someone who can build a truck for you with the exact equipment and layout you need.

When you buy a new catering truck, only costly breakdowns and overhauls will bother you for a very long time. There’s no need to wonder if the last owner actually took care of the truck, and you’ll likely receive an enticing warranty that will protect you in an emergency for years to come. Plus, if you choose to go your own route, you can customize your truck however you want to make cooking as convenient, efficient, and enjoyable as possible.

  • Underwater rocks

We can all agree that new food trucks are very expensive, so you need to make sure you have what it takes to make an expensive decision like this. You will also have to wait longer to craft and ship a special food truck than if you had chosen a used truck.

Buy a food truck How much does it cost?

Each state has specific requirements which may differ depending on what the standard should be in the design of the food truck. If you are going to buy a food truck or build one, it is best to know the standard required by your state’s fire, safety and health department so that you don’t waste money on something that won’t be. not acceptable.

The cost of a food truck varies as it can cost thousands of dollars depending on whether the entrepreneur intends to start with just the essentials or add a few frills before starting.

Therefore, if you want to start your own truck business, where the quality and reliability of your transportation will not be affected, you should count on  $ 80,000  . You can buy a multi-year food truck for  $ 60,000  and then customize it to suit your needs, along with additional costs like business license, fuel, maintenance, food, insurance, kitchen equipment or rental, personal or advertisements.

Buying a used catering truck, especially with all the necessary equipment already installed, instead of buying a new one, will reduce your chances of losing too much money if your business fails, but you should also be aware that you may need to work on a truck which will require additional investment, be sure to perform a truck inspection and receive a full vehicle history report.

Buying a new food truck will give the entrepreneur more peace of mind, because not only are you buying a new truck that looks like a used truck without a hitch, but you can customize the new truck by according to your needs. However, new trucks can be expensive and you should be prepared to pay between  75,000 US dollars  and  160,000 US dollars  to install a new truck to meet your needs. This amount is not included in other expenses that you will need to successfully start and run your business.

If you are, therefore, an entrepreneur who has never been involved in this business before, you may need to limit your investment risk by renting a catering truck rather than buying it rightly in order to get a feel for what will work for you and what it’s like to work with a truck.

Rent a food truck How much does it cost?

Buying a food truck can be considered a very good investment compared to opening a traditional brick and mortar restaurant; However, renting a food truck rather than buying it gives the entrepreneur more flexibility, allowing him to decide whether the business should be short term or long term. Another benefit of renting a food truck, rather than buying one, is that if you fail in business you can just flip the truck and if it is successful you can buy a new truck.

When renting a catering truck it is important to carefully consider your options as you need to know and agree on things like who will be in charge of insurance, truck maintenance, permits, cleaning and utilities before renting food. a truck. Also make sure that there is an option to extend your purchase or rental during negotiations so that the money you have already invested is used efficiently, especially if you have made a name for yourself.

The cost of renting a Food Truck will vary depending on the length of the rental offered. If you are looking to rent a food truck for 6 months or more, you can expect gunshots between  2,000   and  $ 3,000  each month; and therefore a shorter lease will probably cost you more. It should be noted that the cost of renting a catering truck is different from commission fees that you must pay each month, which can be between  1000  $  and  1 $ 500  .

Other costs associated with buying a food truck

Even though the food truck will eat up a significant portion of your start-up capital, there are other expenses that you will also need to allocate funds for, including;

I. Health permit. In general, in the United States, any business that intends to serve food is supposed to have a health care license. Therefore, depending on where you are going to run your business and any other specific requirements you may have, you should set aside between $ 900 and $ 5,000.

ii. Steward. Some food truck operators prepare the food in the truck locally, while others prepare the food in commercial kitchens at commissioners who have been approved by the local health department. Safe parking spaces and other services may be provided according to the commissioner. Therefore, the costs will depend on the services offered and the location of the commissioner, and therefore can range from $ 500 to $ 1,500.

iii. Staff. A food business can be run by one person, especially if the menu is not extensive. However, if you offer a variety of meals, you may need to hire a person or two to help you out, and depending on the location, you may need to shell out at least $ 20 an hour.

IV. Website and advertising. Nowadays, businesses are realizing the benefits of advertising their business as well as gaining a prominent online presence by creating a website. To keep costs down, you can get a free website on some platforms or use your social media to build buzz in your business. Make sure you research the most effective advertising media to reach your target audience and let you see the results. You must be between $ 100 and $ 50,000.

v. Inventory. It is important that you stock up on certain foods that you will use in your cooking. Depending on what you intend to serve and where the products are from; Your inventory costs may go up or down. You need to budget for $ 1,500 or more.

vi. Other operating costs. There are other costs that you need to consider, like repairing your truck or refueling. You should set aside at least $ 1,500 per month for these expenses.

Finally,

The catering truck industry is becoming very popular due to the congestion of passengers and workers in inland cities, and therefore, the start-up cost will increase with competition, and hence the price used in this article should serve as a guide and give you a general idea. You will also need to take into account the city in which you will be working, as this can result in a cost varying by several or at most a thousand dollars.

There are a number of reasons why and against which option – buy or lease – would be best, but it all depends on the entrepreneur and what you want to achieve. You can stay as a tenant until you get tired of the business, or you can buy a new truck and sell it if you’re no longer interested in the business.

What Should Help You When making your decision, you decide what kind of competition you are likely to face, your budget, how to handle the mechanical aspects of a food truck, and how much income you expect to generate. every month or every year.

Finally, whether you intend to purchase or lease a food truck, you have to make a budget of  50 000 USD  to  250 000  USD  .

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