Are you in the truck business and want to know its profit potential? If YES, here is a detailed breakdown of the monthly income of shopping cart owners.
Lately, many entrepreneurs have decided to start their own food truck business in the hope of making money. profit and be their own boss. Food vans are also much easier to set up and operate than traditional restaurants.
But is the grocery van really that profitable? ? Of course, the food truck business has a much lower start-up cost, but so do menu prices; food companies generally price their food at the same cost-benefit ratio as a restaurant, so the money they make comes back to the same rate over time if done right.
Food vans have the option of going to different places and creating a “ store ”, but where they want, they also have to deal with permissions and restrictions similar to the permissions restaurants work with, on the sole condition that they must manage them. on a regular basis, and they obviously don’t have customers for several hours, that they are not on the street, which can take a few hours at noon and a few more hours if you are having dinner.
So, at the end of the day, a successful grocery van can earn roughly the same annual salary as a similar restaurant; and it will take so many years and hours of hard work to break even and pay off the debts.
How Much Money Food Truck Owners On Average Make Per Month
The amount of money a food truck can earn on a monthly or yearly basis will largely depend on various factors. Unsurprisingly, location, type of truck, in addition to your success in building a following, are some of the main factors that can affect the profitability of food trucks.
Food truck owners who operate in large cities with heavy traffic can earn between $ 20,000 and $ 50,000 per month; however, these are generally more specialized operations in the premium / gourmet truck market.
On the other hand, those that are hosted in some of the smaller but perhaps still densely populated metropolitan areas, or the more stylish markets with hot dogs, gourmet sandwiches, simpler dinners, etc., will eventually end up. attract. much less. The total range for them could be $ 5,000 to $ 16,000 per month.
Of course, there are planners who are unlucky enough not to work or sell their trucks efficiently and miss their sales chance, or trucks from big cities that get really famous and popular and end up spending 1-2 million. dollars per year; but again, these types of stats should be ignored at this point.
A 2017 study by foodtruckempire.com found that 21.52% of food trucks earned more than $ 200,000 per year, 30.04% from $ 150,000 to $ 209,999, 34.08% – from $ 100,000 to 149,999 $, 10.67% – $ 50,000 to $ 99,999, 3.59% – less than $ 50,000. It should be noted that the respondents who participated in the survey were full-time food truck owners and operators.
It should be remembered that a certain percentage of people who work in the food truck business will fail and some will earn an average income. and others will be extremely profitable. However, these numbers show that if you manage to find a decent market and work hard to make great food that people will pick up and come back for more, then you can get yourself a good annual salary once established.
3 Factors Affecting the Profitability of Catering Trucks
1. Seasonal characteristics: The weather conditions in the area where the catering truck is operating can play a very important role in the profitability of a business. RVs located in “warm” regions are more likely to sell their food throughout the year than people who sell their food in states where winter is celebrated.
If you plan to use a food van in an area with a harsh winter, be sure to include a smaller number in your business planning. You may need to rely on things like food concerts instead of the daily food service to boost your income this time of year.
2. Gross and net income: gross and net sales are not the same and should not be confused as the same gross value represents total food sales on a truck. If you sell $ 200 worth of burgers a day, that’s your total, not your real profit. This is because other associated costs can dramatically reduce gross income, such as food, gasoline, regular vehicle maintenance, insurance, and labor.
3. Frequency of service: it is quite obvious that the more you go out and sell your food, the more money you will earn. For example, if you regularly organize lunches and dinners, you will earn more at the end of the year than if you served only breakfast.
Plus, if you work weekends and holidays, you’ll be doing more per year than if you cut that weekend. While you will need to maintain your balance so as not to get too stressed out, the truth remains the same: if you want to make more money, you will have to attend more events.
In conclusion, food trucks have the capacity to make a lot of money for their owners, for example Cousin’s “Maine Lobster” makes over $ 800,000 a year with just one truck. Since then, the company has grown to start a franchise and e-commerce business, and is now valued at several million dollars per year. In the first 12 months of owning a food truck, the company generated $ 300,000 in revenue and only invested $ 60,000 in it. If you want to do a lot of complex and smart work, you will find that using the food truck can be of great benefit.