Reading guide
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.
So what’s the budget for setting up a food tuck? What factors influence the price? Ecomag, your specialist in custom-built food trucks, takes a closer look at these questions.
Cost of buying a new or used food truck
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.
Advantages and disadvantages of buying new
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
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 a number of 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. You should also set up a good inventory management system to prevent perishables from being lost or wasted.
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 that 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.
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.
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.
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 that issued it.
Communication expenses
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.
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.
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.
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