In recent years, the food truck market has expanded considerably, especially with the rise in popularity of street food. That’s why so many people want to get into the business. The problem is that opening a food truck requires a relatively large investment.
Are you looking to get into mobile catering or itinerant commerce , but don’t know where to start? What’s the budget for buying a food truck? ? Any pitfalls to avoid? Here’s everything you need to know before buying a new or used food truck.
Buying a food truck: how much does it cost?
The truck, the basic component of a food truck, is the most expensive element in a project to set up a mobile restaurant. Its choice will determine the development potential of your business. In street food, the truck is more than just a work tool. It’s your first communication tool. It’s what your customers will see before they taste your products.
There are trucks on the market in a variety of configurations and sizes, from small vans to large trucks equipped with a rear van or trailers. For a new truck, expect to pay between €50,000 and €80,000. If you opt for a used truck, you’ll need to prepare at least 25,000 euros. There is no ideal choice, since each type of truck has its own advantages.
Buying a new food truck: advantages and disadvantages
Buying a new truck offers many advantages:
- It’s a guarantee of compliance with the health and safety standards required in the food truck world;
- It’s also the guarantee of a customized food truck fitted out according to your needs, with all the equipment you need to run your business smoothly;
- Finally, with a new food truck, the risk of breakdown is minimal. What’s more, with some suppliers, you benefit from a warranty in the event of breakdown, as well as more comprehensive assistance.
A second-hand food truck: good or bad idea?
The majority of entrepreneurs wishing to set up a food truck opt for the purchase of a used food truck. Admittedly, this is far more economical than buying a new food truck, but there are a number of risks involved:
- Non-compliance with health risks ;
- Repairs to the vehicle too extensive to be fully operational.
That’s why, if you opt for a second-hand food truck, make sure that the model you choose has the following features: a VASP label, a water point, gas and electricity installations up to standard, washable and watertight materials used for the fittings, and a hood.
All this to say that before buying a used food truck, take the time to evaluate the product carefully. In some cases, the savings you’ve made on the purchase may be outweighed by the maintenance and repairs needed to bring the truck up to standard.
Factors influencing the price of a food truck
Truck price
When setting up a mobile restaurant, the main investment you’ll need to make is undoubtedly thepurchase of the food truck itself. However, the price of a vehicle can vary considerably depending on its condition (new or used), its size, its fittings…
For example, it’s possible to buy a light truck, second-hand and without equipment, for around €20,000. However, you’ll need to add the cost of converting the truck into a food truck, which can range from €10,000 to €20,000, depending on the size of the vehicle, the fittings to be fitted, the equipment to be installed, etc.
You can also find used food trucks already fitted out and ready to use, for a slightly higher price. Expect to pay at least €30,000 for a light vehicle and up to €50,000 for a heavy-duty store truck.
Finally, if you’re looking to buy a new custom-built food truck, the price will largely depend on the options you choose: paintwork, decoration and general design; kitchen appliances and equipment; storage space; electrical and/or gas installations…. The cost of a new vehicle therefore ranges from around €50,000 to €100,000.
Build your own truck
If you decide to buy a trailer or an unfinished truck, you’ll need to budget for other expenses to get your food truck up and running:
- Fitting out the truck: this includes the purchase of equipment (generator, hob, fryer, worktop, hand-washer, freezer, etc.) and professional fees for fitting out the truck. Also included under this heading are the costs of finishing and design. All in all, fitting out your truck can cost up to 35,000 euros;
- Small equipment : this includes small kitchen equipment such as pans, spatulas, whisks and knives;
- Setting up payment methods: if you want to keep up with the competition and make life easier for your customers, you need to offer modern payment methods. Installing electronic payment terminals to accept bankcards and contactless payments can cost between 200 and 500 euros;
Estimated ancillary and operating costs
Investing in a food truck means more than just buying a functional truck: you also have to take into account various additional costs.
Raw materials
It’s impossible to produce dishes worthy of the name without quality raw materials. So, to run a food truck, you need to buy raw materials that include :
- The basic ingredients needed to prepare dishes: vegetables, fruit, meat, flour, sugar, cooking oils, etc. … ;
- Beverages ;
- Packaging and containers: burger boxes, pizza boxes, etc. ;
- Paper napkins;
- Disposable cups.
It’s difficult to give a price range for this category of expenditure, since the price of the products listed above varies greatly from one merchant to another, and according to the quantity to be purchased. Nevertheless, to save money, we advise you to buy these products in bulk. Design a good inventory management system to avoid loss of perishables and waste.
The fuel
Over time, this expense item can quickly become significant. The cost of fuel depends essentially on the fuel consumption of your vehicle and the number of trips you make. The further you travel from your garage, the higher the costs. So, set aside at least 200 euros per month to avoid unpleasant surprises and to help you set realistic sales targets so you can break even.
Start-up costs
This fee depends on the nature of your activity and the legal form of your company. If you choose to operate as a sole trader, the fee will be around 45 euros. If you opt for a commercial company, the fee will be higher:
- 52.45 euros for a trading company carrying on a craft activity ;
- 21.4 euros for the declaration of beneficial owners ;
- between 118 and 226 euros for publication costs with a legal advertiser (depending on the legal form of your company).
On the other hand, if you opt for the legal status of microenterprise, the formalities involved in setting up are free of charge.
How do you draw up a business plan for a food truck?
In order to identify your various expenses and compare them with your sales forecasts, it’s essential to create a business plan before buying a food truck. This document will also help you to convince your banker or potential investors: hence the importance of backing it up as much as possible by detailing your costs precisely and justifying them.
Authorizations for temporary occupation of the public domain
Any business carrying out all or part of its activity in the public space must obtain authorization for temporary occupation of the public domain. There are 2 possible solutions for a food truck.
Market location
On the one hand, you can opt for a market, fair ormarket, fair or market hall. This type of site is granted by the commune on a one-off basis or for a fixed period. In the first case, a fee is charged. In the latter case, a “droit de place” or subscription fee must be paid. The price of a site varies from one commune to another, but communes are prohibited from applying a preferential rate. In other words, all pitches are granted at the same price, regardless of the nature of the activity.
Parking permits
Alternatively, you can opt for the parking permit. This authorization allows you to occupy the roadside for a set period of time. The amount of the fee is set by the commune or prefecture. In both cases, several factors are taken into account in setting the price: the surface area occupied by the truck, the duration of use and the commercial value of the street. Applications can be made to the commune for occupation of a municipal roadside, and to the prefecture for occupation of a departmental or national roadside.
Warning: setting up a food truck on a roadside without an occupancy permit carries a fine of over 1,500 euros.
The license to sell alcoholic beverages
If you intend to offer alcoholic beverages (beer, wine, cider, etc.), you need a business license issued by an accredited organization following a 20-hour training course. The cost of obtaining a permit varies from 200 to 500 euros, depending on the organization issuing it.
Communication expenses
To launch your mobile catering business, it’s not enough to buy a truck. You also need to get the word out about your food truck to attract your first customers and build your reputation!
You can’t launch your business and hope to compete without a good communications strategy. These expenses can include :
- Creating a visual identity;
- Logo design ;
- Graphic design ;
- Establishing a presence on social networks;
- Setting up an advertising campaign;
- The creation of pictograms on menus;
- Etc.
To communicate effectively, you can start by using physical media such as flyers or posters, which will help generate word-of-mouth about your restaurant. However, the design of a brochure by a professional graphic artist has a cost that you need to factor into your budget.
The Internet is another essential communication channel
To gain notoriety, it’s essential tobe active on social networks like Facebook or Instagram, but also to create a website. This is an expense not to be overlooked, although the price of a site can vary considerably depending on the number of pages and features required.
Office expenses
Calling on an outside organization can be a great help in carrying out your project. For example, hiring an accounting firm will enable you to manage the accounting aspects of your project. Another example, enlisting the help of a marketing expert will enable you to carry out relevant market research.
These fees can be worth up to 10,000 euros, depending on the number of organizations you use, and on the individual company.
Finally, the ancillary costs involved in setting up a food truck can run to over 20,000 euros. Of course, this cost can be greatly reduced by making a few compromises.
The cost of pitches
The last important point to consider is the cost of renting the sites on which you’re going to set up your food truck. The rent you pay depends largely on the municipality or owner of the site.
How do you turn a truck into a food truck?
Converting a truck into a food truck is a complex process, requiring excellent preparation upstream. That’s why it’s important to work with professional fitters like Ecomag to design your mobile kitchen!
What type of truck for a food truck? Choosing the right vehicle
Before transforming a truck into a food truck, you need to select a vehicle that’s suited to the needs of your business. To make the right choice, you need to assess a number of criteria, such as your budget, the space available, and the truck’s size ( heavyweight, lightweight, etc.).
There’s also the choice between buying a new or used food truck, both of which have their own advantages.
When investing in a food truck, it’s essential to think long-term.
A key step in this planning process is the renewal of your itinerant merchant card.
Find out all the steps you need to take to renew your card, and make sure your new purchase runs smoothly over time.
Where to place your food truck? Choose the right locations!
The success of a mobile restaurant depends to a large extent on the location(s) you choose.
In fact, it’s essential to choose strategic locations that will enable your food truck to be highly visible andattract a large number ofcustomers.
What’s more, each location has its own specificities and formalities, depending on whether it’s a private place, a public space, a market, and so on.
What are the standards for a food truck?
Complying with regulations
Catering is a strictly regulated activity, and your mobile kitchen is no exception.
To carry out this activity in compliance with regulations, you must take a food hygiene and safety training course run by an accredited organization.
Your truck must also have a VASP (Véhicules Automoteurs Spécialement Aménagés) registration certificate.
Mandatory training
To operate a catering business, it is essential to take HACCP training in hygiene and cleanliness standards at an accredited center. The cost can range from €700 to €1,200, depending on the organization chosen.
A business license is also required if you plan to serve alcoholic beverages in your food truck. In which case, you’ll also need to factor in the cost of this license.
Why buy a new food truck?
Buying a new food truck allows you to customize your vehicle as you see fit, by choosing the design, equipment, size and layout of the workspace…
In fact, a food truck manufacturer like Ecomag can tailor-make a store truck to suit your needs and constraints.
You also benefit from the advantages inherent in the purchase of any new vehicle, namely a much lower risk of breakdown or defective parts.
On the other hand, a truck with several thousand kilometers on the odometer can give you some nasty surprises.
Last but not least, buying a new food truck usually means you’ll benefit from a warranty in the event of breakdown, as well as more extensive assistance.
Where can you buy a food truck in France?
Whether you’re looking to buy a new or used food truck, Ecomag can help you every step of the way: vehicle selection, space optimization, electrical installations, bodywork and paintwork… We take care of everything! Don’t hesitate to contact us for a personalized quote.
Things to remember
Launching a food truck is an exciting project, but one that requires real financial preparation. From the choice of vehicle to fittings and operating costs, every item of expenditure must be anticipated to ensure the profitability of your project.
With these budget benchmarks, you now have a clear vision of the investments you need to make to set up your food truck. And to ensure that you have a truck or trailer that’s reliable, compliant and perfectly suited to your business, Ecomag can help you with tailor-made solutions, new or used models, and expert advice to bring your project to fruition with complete confidence.
