Survey Results: What is the Average Income for a Food Truck Vendor?

food truck earnings

A truck owner usually takes home less than 50% of the entire business profit, with the rest going toward reinvesting in labor, food costs, marketing, utilities, and ongoing fees. Food truck owners in the US earn between $24,000 and $153,000 per year, depending on the size, location, and popularity of the business. Put another way, that’s $20,000–$42,000 monthly, according to Toast. Note that this is revenue and not profit, so this isn’t taking expenses into account just yet. You can calculate total monthly profit for your food truck by multiplying monthly sales with profit margin percentage.

  • The more realistic view of what food truck owners are making isn’t quite as lucrative, but it’s certainly enticing for anybody who wants to be their own boss.
  • You should get the local health department website at the top of the results page.
  • For example, Gourlie invested $41,200 in his business before serving his first meal.
  • It is important to track COGS because it is typically one of the largest expenses for a food truck.
  • Your break-even point is one of the first numbers you should calculate.
  • Although body work can be on the less expensive side in the overall picture of things, it is still an expense you will want to keep in mind.
  • First, if a particular food truck vendor wasn’t generating much in terms of revenue they could be embarrassed and not want to share the real sales figures.

Check out our food truck case study to learn more about what operating this type of business will really be like. The food truck industry is also playing its part in creating jobs, as the average annual employment growth rate from 2016 to 2021 food truck accounting was 8.6%. In total, the industry employs about 38,000 people who earn an average annual wage of $38,064. Let’s assume your fixed costs for the month were $5,000 total and your food truck is open two 3 hour shifts a day in a 31 day month.

You have to seek out customers

While customer tastes won’t always be easy to predict, what’s worth remembering is that the cuisine you choose to serve can affect your profits significantly. This could be due to a number of reasons, such as each generation’s preferences, income levels, and desire for convenience. Knowing more about your largest customer demographic will help you design marketing and products that suit them best. If you’re looking for the secret ingredient for growing your business, learn more about how CloudKitchens can help put your restaurant on the map. Even purpose-built food truck designers must overcome the fact that at their core, trucks aren’t designed to be kitchens.

We hope these statistics have provided you with some valuable insights into the food truck industry and its future. The food truck market is growing and is expected to continue this trend in the years to come. This makes starting a food truck business in 2022 a wise investment. With careful planning and execution, your food truck can be a success. Cousin’s Maine Lobster started out with just a single food truck in Southern California and today has a successful franchise, e-commerce store, and restaurant locations.

What is the break-even point for a food truck?

As with other types of hardware and equipment besides food trucks, the upside of buying new is that you’ll be paying less in maintenance and repair costs in the future. Market concentration for the industry is quite low due to the sheer number and variety of food truck offerings in the country. New food truck entrepreneurs can do well if they have a solid business plan, accurate knowledge of the industry and its customers, and creative marketing strategies. Reaching profitability in any new business venture takes time, and the same is true for food truck owners. But unless you go into debt to start your food truck, you can survive for a while even if you only meet the second criterion above.

However, it does show you a rough idea of the type of income you can expect as a food truck owner. Now, this data is not scientific since the respondents were only from California, Florida, New York, Texas, and Oregon. Likewise, the sample size is too small given that there are 23,873 food truck businesses in the US. See how much revenue you can expect to generate and learn ways to maximize your earning potential.

Must-Know Food Truck Trends and Statistics

How much money an average food truck can make depends on the price of the menu, the market, and how busy the truck gets. This could be attributed to various factors, including income levels, generational preferences, and a desire for ease and convenience when it comes to ordering food to go. Knowing more about customer demographics and age ranges will allow you to develop targeted marketing strategies and tailored products.

food truck earnings

With the food truck ready, the next item to think about should be the kitchen equipment. If you decide to purchase a new food truck, all the essential equipment will be there (and included in the truck costs above). Expect to spend anywhere from $80,000 to $150,000 on a new made-to-order food truck.

Leave a Reply

Your email address will not be published. Required fields are marked *

WhatsApp WhatsApp us