how to make a business plan for food cart

How to Start a Food Cart Business

Starting a food cart business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful food cart business.

Importantly, a critical step in starting a food cart business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

14 Steps To Start a Food Cart Business :

• Choose the Name for Your Food Cart Business
• Develop Your Food Cart Business Plan
• Choose the Legal Structure for Your Food Cart Business
• Secure Startup Funding for Your Food Cart Business (If Needed)
• Secure a Location for Your Business
• Register Your Food Cart Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Food Cart Business
• Buy or Lease the Right Food Cart Business Equipment
• Develop Your Food Cart Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Food Cart Business
• Open for Business

1. Choose the Name for Your Food Cart Business

The first step to starting a food cart business is to choose your business’ name.  

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your food cart business:

• Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing . Come up with a name that reflects the desired brand and/or focus of your food cart business.

2. Develop Your Food Cart Business Plan

One of the most important steps in starting a food truck business is to develop your business plan . The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your food cart business.
• Company Overview – this section tells the reader about the history of your food cart business and what type of food cart business you operate. For example, are you a traditional food cart, mobile food truck, or a concession stand?
• Industry Analysis – here you will document key information about the food truck industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing products like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer 
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your food cart business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day food truck operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your food cart business make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

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3. choose the legal structure for your food cart business.

Next you need to choose a legal structure for your food cart business and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the food truck owner and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a food cart business together. The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a food cart business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a food cart business is that it offers limited liability to its owners. This means that the food truck owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your food cart business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

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4. Secure Startup Funding for Your Food Cart Business (If Needed)

In developing your food cart business plan, you might have determined that you need to raise funding to launch your business. 

If so, the main sources of funding for a food cart business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a food cart business that they believe has high potential for growth.

5. Secure a Location for Your Business

To find a location for your food cart business, start by looking for areas with a lot of foot traffic. You’ll also want to consider whether there are enough people in the area that will be interested in your type of food. Additionally, make sure the location has space for your food cart and is in a safe area. Finally, check with your local government to see if there are any restrictions on food trucks in the area. 

6. Register Your Food Cart Business with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your food cart business’ name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your food cart business to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

There are a few licenses and permits you will need to start a mobile food business. You will need a food handler’s permit, a business license, and a zoning permit. You may also need a health permit depending on your state and local laws. Check with your local authorities to find out what you will need.

10. Get Business Insurance for Your Food Cart Business

The type of insurance you need to operate a food cart business depends on the size of your business and the risks involved.

Some business insurance policies you should consider for your food cart business include:

• General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
• Auto insurance : If a vehicle is used in your business, this type of insurance will cover if a vehicle is damaged or stolen.
• Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
• Commercial property insurance : This covers damage to your property caused by fire, theft, or vandalism.
• Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
• Professional liability insurance : This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs. 

11. Buy or Lease the Right Food Cart Business Equipment

To start a food cart business, you will need a few pieces of equipment. First, you will need a cart or stand. You will also need cooking equipment, such as a stove or grill, and serving utensils. Finally, you may need a refrigerator or freezer to store food.

12. Develop Your Food Cart Business Marketing Materials

Marketing materials will be required to attract and retain food truck customers to your business.

The key marketing materials you will need are as follows:

• Logo : Spend some time developing a good logo for your food cart business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website : Likewise, a professional food cart business website provides potential customers with information about the products you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you..
• Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your food cart business.

13. Purchase and Setup the Software Needed to Run Your Food Cart Business

You will need software to manage your food cart business, including a point of sale (POS) system, financial software, and inventory management software. You may also need software to track your business expenses and create invoices. Choose software that is compatible with your computer system and that will meet your specific needs.

14. Open for Business

You are now ready to open your food cart business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

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How to Start a Food Cart Business FAQs

Is it hard to start a food cart business.

No, it is easy to start a food truck business. You just need to know what you're doing and have a good business plan. There are many resources available to help you get started, including books, websites, and even food carts for sale.

How can I start a food cart business with no experience?

The best way for aspiring food truck owners to start a food cart business with no experience is to do some research and get organized. Plan out your food truck concept , create a budget, and learn everything you can about the industry. Networking with other food cart businesses can also be helpful in learning the ropes.

What type of food cart business is most profitable?

There is no definitive answer to this question because profitability depends on many factors including location, target market, and competition. However, in general, a profitable type of food cart business is a mobile hot dog stand. This type of food cart business can offer a variety of hot dogs, sausages, and hamburgers that are affordable and are enjoyed by a wide range of customers. In addition, a mobile hot dog stand is perfect for catering events and providing food for large groups. Finally, hot dogs typically do not cost too much, and can therefore be sold at a healthy margin. 

How much does it cost to start a food cart business?

Food truck startup costs can vary depending on a number of factors, including the type of food and the size of the business. However, in general, you can expect to spend between $2,000 and $10,000 to start a food cart business. This includes the price of the food, cart, and marketing expenses. 

What are the ongoing expenses for a food cart business?

The most significant ongoing expense for a food cart business is the cost of the food itself. Other ongoing expenses may include the cost of repairs or maintenance for the cart or truck, and marketing and advertising expenses. 

How does a food cart business make money?

There are a few different ways a successful food truck business can make money. The simplest way is to sell food items. Another way is to offer catering services, which can be more profitable since the business can charge a higher price for the food.

Is owning a food cart business profitable?

Owning a food cart business can be profitable because it offers a low-cost way to start a business. There is a growing demand for food carts, and you can customize your food cart to meet your customers' needs.

Why do food cart businesses fail?

One of the most common reasons food cart businesses fail is that they don't have a solid food truck business plan. To be successful, you need to have a plan for marketing your cart, attracting customers, and growing your business. You also need to understand the costs associated with running your cart, from the food and supplies you need to the rent or lease for your space. If you're not prepared to handle the financial side of things, your business will fail. In addition, become familiar with the regulations governing food carts in your area, as there may be specific requirements you need to meet. Failing to comply with these regulations can shut your business down.

Other Helpful Business Plan Articles & Templates

Restaurants Starting a Business | How To

How to Start a Food Truck Business in 9 Steps

Published March 6, 2023

Published Mar 6, 2023

WRITTEN BY: Mary King

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This article is part of a larger series on Starting a Business .

Starting A Business?

• Step 1: Research Local Food Trucks & Laws
• Step 2: Choose a Menu, Name & Logo
• Step 3: Register Your Business & Open a Bank Account
• Step 4. Raise Funds
• Step 5: Get Licenses, Permits & Insurance
• Step 6: Procure Your Food Truck
• Step 7: Purchase Equipment & Supplies
• Step 8: Hire & Train Staff

Step 9: Market Your Food Truck

• Pros & Cons

Bottom Line

There has never been a better time to start a food truck business; in fact, the number of food trucks grew by almost 10% from 2022 to 2023. If you’re looking for a money-making business idea , a food truck is a great one. Successful food trucks can bring in more than $500,000 per year, with startup costs from $40,000–$200,000.

Starting a food truck typically takes three to 12 months and requires the nine steps below. Download our checklist to help you stay on track.

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Starting a Food Truck Checklist

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Step 1: research local food trucks & laws.

When starting your food truck business, it’s essential to make sure you are filling a hole in the market, supplying a demand, and operating within the law. So, you should evaluate the food truck scene in your area and research local food truck laws and regulations. This information will help you decide if a food truck is the best-fitting business for you to start .

Evaluating the Local Food Truck Scene

Before you sketch out your menu and business plan, you should find out what trucks are most successful in your area. A quick internet search for “food trucks” and your city or county name will generally yield plenty of results to start.

When evaluating other trucks, take note of their:

• Cuisine: You want to pick a food concept that isn’t being done by other food trucks in your area; you don’t want to be the third falafel food truck in a small town. But you also want to pick a cuisine that has widespread appeal.
• Prices: If most of the trucks in your area serve food in the $5 to $8 range, you probably won’t want to stray too far from that price point. On the other hand, if your town has a lot of higher-priced, gourmet-style trucks, you know you can let your imagination run wild.
• Parking Location: This will give you an idea of which neighborhoods are truck-friendly and not.
• Serving hours: If many people commute to your town for work, breakfast or lunch hours might be a busy time for trucks, so developing a breakfast or lunch concept is a good idea. If you are in a tourist or college town, nights and weekends may be busier, so you might be better off opting for a dinner or late-night snack menu.

Introduce yourself to truck owners and ask them about their biggest operational challenges. You’ll find that most are eager to share their knowledge with an up-and-coming food trucker. One of the best aspects of food truck communities is the camaraderie and support of other truck operators.

Researching Local Food Truck Laws

Food truck regulations fall into three major categories: health, zoning, and vehicle requirements. Health regulations govern what equipment your truck must have, what permits you and your employees need, and whether you need a commissary kitchen. Zoning regulations determine where you are permitted to park your truck and what types of neighborhoods are not permitted.

There will also be laws governing what type of vehicle you can use, what emissions regulations your truck must meet, where you need to register your vehicle, and if your truck driver needs to have a commercial driver’s license (CDL). Every state, county, and major city has its own laws regulating food trucks and street vending.

New York City, for example, requires every person working on a food truck to have a mobile food vending license . Los Angeles requires that all food trucks post No Smoking signage on their trucks. Many major cities and counties also require all food trucks to have a current contract with a commissary kitchen.

Commissary Kitchen: Sometimes called a “support kitchen,” this is a commercial kitchen, rentable by the hour or day, that supports mobile food operations. Commissaries are equipped with cooking equipment, refrigeration equipment, ice machines, and storage areas that meet local health department requirements. Many also provide areas to dispose of grease and greywater, truck maintenance areas, and a secure place to park overnight.

Food trucks are regulated mostly by city or county authorities. In rural locations, you’re mostly dealing with county offices. In densely populated areas, the city has jurisdiction. You can learn your local regulations by checking your local health department website. However, you’ll get faster and more accurate information if you put in a couple of phone calls—one to your city or county health department and one to your city or county clerk’s department. When you get a person on the line, you’ll want to ask:

• What permits and licenses do I need for a new food truck, and what do they cost?
• Do I need separate food safety certificates for each employee, or is one food manager’s safety license enough?
• What on-truck cooking, refrigeration, and sanitation equipment does the health department require?
• Does all equipment need to be professionally installed?
• Must I use a registered commissary kitchen?
• Do I need separate vending licenses for each employee or only for the business?
• Are there limitations to vehicle size?
• What zoning regulations must my truck adhere to when street vending?
• Does driving a food truck require a commercial driver’s license?

The answers to these questions will have a considerable impact on how expensive it is to start a food truck in your location and how long the process takes.

Step 2: Choose a Menu, Name & Logo

Food trucks are known for their clever remixes and personal flair. The most successful food truck concepts reflect their owner’s interests and personal experiences. Consider popular Las Vegas truck Buldogis , which serves Korean-inflected gourmet hot dogs that reflect the owners’ American and Korean backgrounds. Start with your menu, then your name and logo should naturally follow.

Food Truck Menu Tips

Keep your final menu simple and streamlined. Most food trucks get by with a rotating list of three to five signature items and a couple sides. You can change items seasonally to keep customers interested, but a food truck is not the place for a 30-item menu; you simply don’t have the space to store that much food.

Consider these ideas to start brainstorming your ideal food truck menu:

• Fusion dishes: This concept combines two distinct cuisines to create dishes that appeal to a broader audience, such as Tex-Mex or sushi burritos.
• Regional cuisine: Local specialties like breakfast tacos in Texas or lobster rolls in New England are always a hit, especially in tourist destinations.
• Organic and health foods: Acai bowls, cold-pressed juice, and interesting salad combinations are all examples of trendy health foods.
• Comfort foods: From fried chicken to mac and cheese, grilled cheese, tacos, and burgers, comfort foods usually equal big food truck business.
• Gourmet sandwiches: Who doesn’t love a good sandwich? To stand out, use nontraditional ingredients or have a theme.
• Pizza: A wood-fired pizza truck has widespread appeal (though it may also require a fire department inspection and permit, so check that first).

The primary customers for food trucks are 18 to 34 years old, so food truck foods tend to be very trend-driven. Alternative everything will be the name of the food truck game in 2023; alternative flours, alternative sweeteners, and plant-based meat alternatives all sell well to this age group.

Name Your Food Truck

With a general idea of your concept, you need a name that fits your food. Your truck name will become your social media handle and logo and will be emblazoned on the side of a truck, so it’s important to get it right. Our restaurant name generator can get your creative juices flowing.

But here are some general tips for choosing a good name for your food truck:

• Choose a unique name: You risk violating a trademark if there’s another restaurant or food truck with the same name. You can use the free United States Patent and Trademark Office (USPTO) online search tool to check if your name is taken already.
• Make your name descriptive: Your name should describe your food, theme, and concept so your potential customers will immediately know what to expect.
• Make the name memorable and easy to pronounce: This is especially important for food trucks because they rely on word-of-mouth for much of their business. Avoid long, confusing names―four words or less is a good rule of thumb for your food truck’s name.
• Choose a name that can grow: Your business name should be fun and catchy and grow with your business if you add more trucks, new menu items, or open a traditional restaurant.

Design Your Food Truck Logo

The last piece that completes your food truck concept puzzle is a business logo . You’ll need something that evokes quality food and is exciting enough to compete with other food trucks. You will also use your logo on menus, business cards, social media, and all of your advertising efforts. It will provide the basis for your truck design and uniforms (if you have them).

A captivating logo can make a huge difference in whether people step up to your truck or pass right by, so you want this important marketing element to be in the hands of a talented designer. You don’t need to break the bank to do this. Freelancer sites like Fiverr let you browse portfolios from freelance graphic artists who’ve designed both simple food truck logos and full vehicle wraps, with prices starting at just $5.

Step 3: Register Your Business & Open a Bank Account

When starting a food truck, you’ll need to create a business entity and register with your state. For most food truck operations, an LLC makes the most sense. It protects your personal assets in the event of a lawsuit or business bankruptcy and shows vendors, insurers, and permitting agencies that your business is legitimate.

Filing fees vary from state to state, but forming an LLC isn’t necessarily expensive. Costs range from $40 to $500, and you can find the forms you need on your state’s business office website. Filing LLC paperwork can be tedious and a little complicated. If you need guided assistance, we recommend working with a legal website like Incfile or one of our other recommended online legal services . Incfile doesn’t charge fees beyond your state filing fee to file your LLC and can usually process LLC paperwork by the next business day.

Open a Business Bank Account

You’ll need to separate your personal finances from your business finances by opening a business bank account . This account will hold funds invested in your food truck and be used to pay permitting, licensing, and vendor fees. When your truck is up and running, your credit card deposits will run to this account, and you will pay employees and suppliers from it. You can inquire about business banking options at the bank that handles your personal banking, or see our list of the best small business checking accounts .

Step 4. Raise Funds for Your Food Truck

Starting a food truck business can cost anywhere from $40,000 to $200,000, depending on your location, the cooking appliances you need, and the type of truck you purchase. The table below gives you a rough estimate of the itemized costs involved in starting a food truck business. We break down the costs in the charts below.

Food Truck Business Estimated Startup Costs

• One-time costs
• Recurring Costs

The first step to raising the funds you need is writing a business plan.

Write a Food Truck Business Plan

Like any other business, your food truck will need a well-prepared business plan if you want it to succeed. Your business plan puts your concept on paper so potential investors and loan officers can see that your food truck is a good investment. Having a plan for becoming profitable gives you a better understanding of how long it will take for your food truck to turn a profit and what funds you need to sustain your business until that point. Your food truck business plan serves as a basis for how you envision your business to start , run, and grow.

Your food truck business plan should include the following sections:

• Executive summary: Briefly describe the food truck industry in your region, the present outlook and future possibilities, your concept, theme, and other markets and industries that can directly impact your business. This should be no more than a page.
• Competitive analysis: Identify market trends in the food truck industry, your target market, and analyze competitors. For example, are there food trucks in your area selling the same kinds of food or traditional restaurants with the same target customer base? Describe how your truck will uniquely appeal to this audience by offering a distinctive take on a beloved dish or spicing things up with a secret sauce or spice blend.
• Organization and management: Explain how you plan to run your business, including standard operating procedures, staffing, and responsibilities of each key partner and employee. Will your truck operate solely street-side, or will you also cater private events? Where will you prepare and store the majority of your food? Describe the layout of your truck. How many customers can you serve in an hour?
• Product line: Detail your menu and ingredients, as well as the cost of preparing the food and how much you plan to sell it for. If you are sourcing ingredients from a local farm or notable vendor, note it here. This section should show that you have a firm grasp of food cost and profitability.
• Marketing plan: Describe how you plan to market your food truck business. Important marketing channels for food trucks include word-of-mouth, influencer marketing, and social media marketing . Participating in well-attended annual food truck festivals can also boost your marketing efforts.
• Financial projections: Break down your projected expenses, profits, and losses for at least your first three to five years. If you live in a place with lots of seasonal weather changes, you should include a month-by-month breakdown for busy and slow months.
• Financial requirements: State how much funding you need to start your food truck and exactly how you plan to have it funded. If you’re applying for a business loan , specify how much money you need to borrow.

When preparing your business plan, make sure that you include all the details. For example, itemize your marketing strategy, explain how each line item will reach your target consumers, how much it will cost, and how many customers it will likely bring in. List your product line to include all food items, how they will appear on your menu, the ingredients, and at what price you plan on selling each item. Include your logos and branded menus. If you have sourced a truck, include photos of the truck and possibly an artist’s rendering with your logo and branding.

Food Truck Funding Options

Most people don’t have immediate access to the kind of capital required to start a food truck. Financing your business will be an essential step. Most lenders require a business plan before issuing a loan, so be sure to have your thorough plan ready, along with the amount you need and your credit history.

Here are some financing options available for aspiring food truck owners:

• Equipment loan/financing program: Some truck sellers or equipment financiers will loan to you to purchase the truck.
• Rollover for business startups (ROBS): If you have more than $50,000 in a retirement account, you can set up a ROBS , which will allow you to use the funds in your retirement account to fund your business without paying early withdrawal penalties.
• Business credit cards: If you are good at paying off debt, a business credit card may be a good option.
• Personal loan: This is a good option if you have a good credit score and need less than $50,000.
• Microloan from Small Business Administration (SBA): Microloans are considerably smaller in size than conventional business loans but may be sufficient to cover food truck startup costs. Check out SBA’s Microloan Program for loans of less than $50,000.
• Find investors: Whether it’s a friend or family member, finding investors for your food truck business requires strategy. Prepare your concept and a solid business plan to help convince investors to fund your venture.

Not all funding comes from banks and big investors. If you have an active fanbase of friends and family who support your food truck concept, crowdfunding can provide some or all of your opening budget. Your business plan will give you a great jumping-off point to create a compelling crowdfunding page. A bonus of crowdfunding for a food truck is that you’ll already have a fanbase excited to see your truck come to life.

For a detailed look at crowdfunding, see our guide on how to crowdfund a small business .

Step 5: Get Licenses, Permits & Insurance

FoodTrucks need at least three types of licenses and permits: general business licenses, food service licenses, and vehicle licenses. Depending on your location, most food truck licenses and permits will cost between $100 to $500 each. Your total permit and license fees can range from $1,500 to $20,000.

A mobile food vending permit is one of the licenses your truck needs. (Image from NYC Dept. of Health)

• General Business Licenses
• Food Service Licenses
• Vehicle Permits

General business licenses include things like:

• Doing Business As (DBA) Registration: If you operate your truck as a sole proprietorship or want to operate your truck under a different from the LLC you registered with the state, you’ll need a DBA to register the fictitious name.
• Employer Identification Number (EIN): This number is assigned by the IRS and acts as your business’s identification for tax purposes. If you hire any employees, you’ll need one. You can register for free on the IRS website .
• Business license: All small businesses need a license to operate in the state in which they are located. Costs for this license vary from state to state and are generally less than $500. Some states lump the business license process in with the business registrations process, but not all. You should check with your state business agencies to find out your local requirements.
• State sales tax permit: This license registers your business with your state’s sales tax authority. All of your food truck sales are subject to state and local sales taxes, and you will need to register with your state so you can log your sales tax payments accurately. This permit is typically free.
• Reseller’s license: This license enables you to purchase wholesale goods that you will resell tax-free.
• Vendor’s permit: Also sometimes called a “Peddler’s Permit,” some locations require mobile businesses like food trucks to acquire this from the city, county, or neighborhood governing body. This license typically shows local authorities that your truck has permission to operate in a certain area. These are common in tourist locations and cities with popular historic cores.

Food service licenses are issued by your state, county, or city health department. You will need various licenses to cover your truck, your prep kitchen, yourself, and sometimes your individual employees. Most food service permits and licenses require you to pass a food safety test or for your facilities to pass a food safety inspection.

Foodservice licenses include:

• Health permit: Requirements vary from state to state . Generally, obtaining your final overall health permit requires obtaining all of the permits and licenses listed below before applying for this general permit. Depending on the size of your operation, prices can vary from a couple of hundred dollars to nearly $1,000.
• Mobile food facility (or unit) permit: In some locations this permit is issued through a local Parks department, rather than the health department, though it still has a food safety component. Many towns offer lower pricing tiers for food carts, kiosks, small trucks, and trucks that only serve pre-packaged foods and non-perishable drinks. Prices typically range from $300 to $500.
• Food Safety Manager’s Certification: This certificate is typically required to obtain a health permit for your business. You’ll need to take a food safety class and pass a food safety test in order to get one. Costs are around $199 through ServSafe.
• Food handler permit for employees: Some states, like California, require all food service workers to have their own food handler’s permit. Your staff can obtain these for $15 to $18 through ServSafe.
• Commercial kitchen lease contract: In most locations, getting your truck’s foodservice permits requires a signed lease with a licensed commercial kitchen. In some cases, health inspectors may ask for a signed affidavit from the kitchen owner, stating that you are a tenant in good standing. Prices will vary based on your lease terms.

Unlike what you see on “The Great Food Truck Race,” most food truck food is not prepared from start to finish on the truck itself. In many locations, local food safety laws require food trucks to prepare and store most of their food in a licensed commercial kitchen. This may sound like a form of red tape, but prepping your food in a brick-and-mortar commercial kitchen ensures that it can be kept at safe temperatures below 41 degrees and above 140 degrees Fahrenheit (which can be hard to maintain on a truck).

You can find commissary kitchens in your area by asking other food truck operators or by checking sites like Commercial Kitchen for Rent . Commissary kitchens are not your only option. In most locations, any commercial kitchen inspected and licensed by the local health department will do. This might be a restaurant kitchen you lease in its off-hours or a school kitchen you rent for evenings, weekends, or summer months. Some social and religious organizations like Elks lodges, VFW halls, and churches also have licensed commercial kitchen facilities that fit the bill.

Your truck itself will require a visit to the department of motor vehicles for commercial license plates. You may need to acquire a commercial driver’s license (CDL) in some states if your truck goes over certain length and weight limits. Other states prohibit vehicles that require a CDL from operating as food trucks.

You may also need to acquire parking permits for your truck. Food trucks can’t just park anywhere that a regular vehicle can. Every city has different regulations limiting parking opportunities. Additionally, neighborhood associations and local health departments might require you to comply with their own guidelines.

Here are some tips to make sure your food truck is parked in the right place:

• Ask your county clerk for a list of places where parking is not allowed or where permits are required.
• Contact your local motor vehicle department for lesser-known parking restrictions.
• Add overnight vehicle parking to your commercial kitchen contract.

Step 6: Procuring Your Food Truck

Several of the permits and licenses you need depend on the type of vehicle you purchase. So this step typically happens simultaneously with your permitting process. Food trucks can cost anywhere from $3,250 for a secondhand trailer to as much as $300,000 for a new, custom-built truck, although $5,000–$125,000 is the general range.

Regardless of your budget, you should invest in the best quality truck you can afford. Investing in a quality food truck from the beginning minimizes your risk of incurring repair expenses down the road, and protects you and your staff from dangerous cooking or vehicle-related accidents.

Make sure your truck is fitted with equipment that’s up to code, including:

• Refrigerators and ovens are working properly
• Hot and cold water are available with adequate pressure
• Fire extinguishers and first aid kits available on board
• Proper storage for food items
• Professional installation of essential equipment

Some locations require proof that your truck’s electric and gas equipment was installed by a licensed professional. If you are considering a used truck, ask for this documentation.

Buying a Food Truck

You have several options for purchasing your food truck. You can purchase a used truck from an individual seller on eBay or Craigslist, or via an online directory site. By purchasing a used truck, you typically can get a fully outfitted truck for around $50,000, although you will have to repaint the outside and possibly renovate the inside of the truck to match your business.

A few good directory sites to find used food trucks are:

• Commercial Truck Trader
• Used Vending
• Road Stoves
• Miami Trailer & Equipment Company

If you purchase a used truck sight unseen online, it is a good idea to use an escrow service. The escrow service holds your funds in trust until the seller delivers your truck and will only release the funds when you accept the truck. For example, eBay offers a built-in option to pay via Escrow.com to protect its buyers and sellers.

You can also purchase a new food truck directly from a manufacturer like 800BuyCart. Prices for its standard trucks start at around $18,000. Major car manufacturers like Ford, Nissan, and Mercedes-Benz also supply food truck compatible vehicles; you’ll need to contact a local dealer for pricing and options. When buying new from a major manufacturer, you should expect prices starting at $40,000, plus equipment.

Building a Food Truck

Custom-built food trucks can set your food truck apart from the competition if you have the budget for one. Companies like Prestige Food Trucks, Cruising Kitchens, and Northwest Mobile Kitchens specialize in custom food trucks built to your exact specifications. New custom food trucks will cost around $100,000 to $200,000. The benefit, of course, is that everything is new, built for purpose, and usually under warranty. You don’t need to worry about how previous owners cared for the truck or if a professional installed the gas lines.

Leasing a Food Truck

If you’re only operating seasonally or your funds are limited, you may want to explore leasing a food truck. Brands like Los Angeles-based Mobi Munch and RoadStoves lease trucks month to month. If there are truck agents in your area, leasing is an attractive option because leases tend to come with lots of included service. RoadStoves customers, for example, get overnight truck parking, a health permit, and access to a commissary kitchen included in their truck lease. It is common for food truck leases to run from $3,000 to $4,500 per month.

The downside to leasing is that the truck won’t be customized to your needs. You’ll also need to get creative with magnetic decals to customize the truck with your logo and menu. When your lease term is up, you may also have to pause your business until you find another truck.

Step 7: Purchase Equipment & Supplies

Even if your truck is fully outfitted with cooking and refrigeration equipment, you’ll still need some extra tools. Generators, condiment tables, registers, and point-of-sale (POS) systems are all standard food truck equipment. Increasingly food truck owners are adding rooftop solar panels to offset fuel costs. You’ll also want to open accounts with food suppliers so you can buy in bulk and avoid paying sales tax.

A portable solar kit, like this one from Bluetti is a popular food truck add-on. (Image from Bluetti)

Truck Wraps & Exterior Decor

Those vibrant trucks with nose-to-tail designs are covered in a “truck wrap.” A truck wrap is basically a giant vinyl decal that adheres to the outside surface of your truck. A full truck wrap lasts from three to five years and should be installed by professionals. The cost for installing a truck wrap ranges from $2,500 to $5,000 (including design and installation). You can have smaller vinyl decals printed at a local sign shop and install them yourself if you are short on funds. But you should leave anything larger than two to three square feet to the pros.

You can source truck wraps from several companies, including:

• Wrap Solutions
• Custom Vehicle Wraps
• Flash Forward Wraps

Painting your truck exterior is also an option. This costs less than vinyl wrap—from $1,000 to $3,000—but is also best done by professionals. Painted decorations are less robust than vinyl wraps and may not last as long.

In addition to showcasing your business logo and contact information, when you drive, your truck exterior needs to display your menu when it is stationary. Food truck menus that change often can be handwritten on chalkboards, or dry erase boards. If your menu remains standard from day to day, you may wish to display a professionally designed, printed menu. You can typically request a menu design from the person that designed your food truck logo. Or use an app-based menu-maker like the one offered by Canva .

Cooking & Serving Equipment

Between your truck and your commercial kitchen, you may have most of your primary equipment needs covered. However, if your menu requires unique cooking elements like wood smoke, rotisseries, or metal skewers, you may need to purchase that yourself. And while commercial kitchens likely have blenders, tongs, and spatulas you can use, supplies in a shared kitchen space can be tight.

You’ll likely want to purchase some of your own small equipment like a food processor, baking sheets, and Cambro containers to store your prepped food and transport it to your truck. Just make sure your commercial kitchen lease comes with secure storage, so you don’t have to lug your food processor back and forth from the commissary every day.

If you offer catering, you’ll also want a couple of sturdy collapsible tables and chafing dishes to keep your food warm outdoors. You’ll be able to find most small equipment at a local restaurant supply or kitchen store. Popular cooking chain Sur La Table even offers a 10% discount to culinary professionals. However, you can also find these items through mainline distributors like Sysco. The one type of equipment that it doesn’t make sense to invest in is table linens. You or your catering clients can rent those to match the events’ color schemes.

POS Equipment

While it is technically possible to operate a cash-only food truck, the inability to accept credit, debit, and mobile wallet payments can seriously undercut your sales. The simplest way to accept card and digital payments is to use a cloud-based, mobile POS system.

These tools are increasingly affordable for small businesses like food trucks. Our top-ranked food truck POS systems can operate via Wi-Fi or cellular networks, and many are free to use. Our favorite food truck POS, Square for Restaurants , operates on iPads, and you can download the software from the Apple App Store and start taking payments in a couple of hours.

A POS goes beyond payments, though. A good food truck POS system will track your supply levels, prompt you when your stock is low, help you count inventory, and track every cash transaction (reducing the likelihood of employee theft). Modern POS systems also come with tools to help you log customer contact information for targeted marketing campaigns, manage social media accounts, and stay on top of internet reviews.

Setting Up Vendor Accounts

If your food truck is even a little bit busy, you’ll want to open accounts with wholesale suppliers. This gives you a price break on food and beverage supplies and saves driving time, as most distributors will deliver directly to your commercial kitchen space.

Also, once your credit application is approved, most vendors operate on a net 30 system, meaning that you’ll have 30 days to pay the supplier invoice.Try to find at least one vendor that supplies most of your food and beverage needs; the fewer suppliers you work with, the fewer invoices you need to process every month.

Pro tip: Speed up your vendor account creation by putting together a single sheet with your credit application information. Include your name, your truck name, business address, EIN, and banking information.

Step 8: Hire & Train Staff

Food truck owners do a lot of work themselves, but you’ll still likely hire some hourly employees. Most trucks operate with a staff of two to four employees. The staff you hire should fill in skills you lack or areas you cannot pay attention to. For example, if you are an expert grill cook, you’ll need to hire cashiers. But if you have a welcoming personality and are great at add-on sales, you might be stronger in a customer-facing role and hire cooks instead. If you get a lot of catering inquiries, it might make sense to hire an event salesperson to send estimates and wrangle catering contracts.

Common Food Truck Staff

Window attendant, catering salesperson, catering servers.

(Image by Kampus Production from Pexels)

Your window attendant takes orders at the truck window, interacts with customers, and processes payments. Someone with a friendly personality and cash-handling experience is good in this position. Window attendants are typically hourly, minimum wage positions and may earn tips.

If you are struggling to find staff, a window attendant can be replaced by a self-service kiosk . This is one of the simplest solutions if you are short-staffed.

(image from RODNAE Productions, Pexels)

A truck cook cooks and serves dishes on the truck itself. Depending on the number of cooktops you have and your menu style, you may need two cooks in the truck all the time. Truck cooks tend to be hourly employees who earn at least minimum wage; however, you should definitely pay more if your truck cook is experienced. They are frequently included in on-truck tip pools.

(image by Mikhail Nilov, Pexels)

If your truck is busy, you may need a hand with off-truck prep cooking. Hiring a prep cook to work in your commercial kitchen while your truck is on the road can significantly reduce your turnaround time between events. Prep cooks are usually part-time staff who earn at least minimum wage. Depending on your local labor laws, prep cooks may or may not be included in tip pools.

(image from Harvest Kitchen)

You don’t want to miss the chance to book private catering events. These can be a massive boost to your truck’s bottom line. A catering salesperson responds to all private event inquiries and works directly with your clients to create a menu, execute an event contract, collect deposits, and hire rental equipment. Catering salespeople typically earn a small hourly base pay or salary, plus a 3% to 10% commission on their booked events. They are typically not tipped, though their commission fee may appear as a service charge on the final invoice.

(Image from cater-waiters.com)

Large events sometimes request tray-passed food or to have some foods served at individual tables. Event coordinators may hire this staff themselves, but it can help to have some staff of your own to call in. Having your own catering servers can give you an edge in landing bigger (and higher budget!) events. You may pay catering servers a flat hourly wage (usually higher than minimum wage) or minimum wage plus tips.

Where to Find Food Truck Staff

The first step to hiring food truck staff is writing a solid job description. Be clear with what tasks the potential employee needs to perform, what experience they need, and what licenses or education are required. If you are operating in New York City, for example, you may give priority to applicants who already have an active Mobile Food Vendor license.

Post your completed job description with salary range on popular jobs sites like Indeed, and share your job opening with friends and family members. Personal referrals can lead to great applicants.

Training Food Truck Staff

You will need to train every staff member on your menu and your truck processes. Depending on your team’s experience level, you’ll need to allow two days to two weeks to get everyone on the same page. You should prepare itemized copies of your menu with ingredient lists and common allergens, along with what items can and cannot be modified. For example, if your housemade chili is cooked with bulgur wheat, it cannot be made gluten-free.

All of your truckers should know how to use fire safety equipment on your truck. Make sure they know where fire extinguishers are located and how to use them. If your truck has a fryer, ensure that everyone knows how to handle a grease fire.

You’ll also want to train your team on the policies and procedures at your commercial kitchen. If there are strict operating hours, designated storage areas, or designated parking areas, you’ll want to cover that explicitly, so your team reflects well on your brand.

If your truck collects tips, you may also run a tip pool to distribute tips to your staff. For tips on managing a tip pool, see our guide to restaurant tip pooling laws and tipping out . A tip pool based on hours is a popular way to distribute food truck tips.

Once you have your truck and your location all set, the final step in starting your food truck business is marketing your truck. A good food truck marketing strategy involves a combination of online and traditional marketing strategies, including social media marketing, vending at local events, building a website, and joining advocacy groups.

Social Media Marketing

Instagram, TikTok, and Facebook are great ways to connect with your local community and help potential customers find your business. Plus, Instagram and TikTok are ideal places to show off pictures of your tasty food. For maximum impact, post regularly, and be sure to use any local hashtags to help your business get discovered. Don’t just stick to food photos; part of the appeal of food trucks is their personal story and camaraderie of their team. Let users see your personality and passion.

Also, be sure to post your locations and hours so that customers can easily find you. If you accept orders online or over the phone, have that information in your social media biography. You can also use stickers and buttons on your Facebook or Instagram accounts to add shoppable links to your online ordering site or to purchase gift cards.

Work With Influencers

It’s no secret that social media—Instagram in particular—is full of food fans. You don’t need to target high-profile Instagrammers with advertising fees. Your ideal influencer is someone near your town who has a lot of followers and posts about food. Send a direct message to a few local food folks offering a free meal and see what organic posts result. To make this strategy work, you should meet them personally and suggest a hashtag that promotes your truck. If your truck has an eye-catching design that pops in photos, even better.

Participate in Festivals & Local Events

Festivals are a great way to get customers and gain some insight from fellow food truck owners. Especially in the spring and summer months, tons of towns and cities have outdoor events, from fairs to farmers markets. Participating in these events is a great way to spread awareness about your business while also getting extra sales.

There are also many festivals dedicated to food trucks. Try to book as many events as you can. You’ll have a captive audience to market your business and are all but guaranteed to make sales. If you participate in several events, fairs, or festivals, create an event calendar that you can hand out to customers so that they know where to find you next.

Join a Street Vending Advocacy Group

Many cities with a vibrant food truck community also have food truck advocacy groups. Joining one will put you in contact with other like-minded business owners who can help you troubleshoot problems and send you business if their truck is not available for an event. The added benefit of joining an advocacy group is, of course, advocacy. These groups work together to encourage local regulations that are food truck friendly, which can’t help but boost everyone’s business.

The National Food Truck Association is an excellent place to start. It currently hosts local chapters in:

• Southern California
• San Antonio
• New York City
• Philadelphia
• ….and many other states and cities

Create a Website

A website is essential for any small business, but especially so for a food truck. A website helps potential customers know who you are, what kind of food you sell, and how to find your truck. Your website is also a great place to post your event calendar or a contact form for catering orders. Our guide on how to make a business website will walk you through the process.

A website can also give your business the polish of offering a business email address that is branded with your truck name. You don’t need to spend thousands of dollars to get a professional-looking food truck website. Hosting services like Bluehost offer plans that let you register a custom domain name, host your website, access a WordPress web builder, and get a business email address for just $3.95 per month.

Pros & Cons of Starting a Food Truck

Like any other business venture, the food truck industry offers both advantages and disadvantages.

Starting a Food Truck Frequently Asked Questions (FAQs)

How much does a food truck cost.

Starting a food truck typically costs between $40,000 and $200,000. The cost varies based on whether you purchase or lease a truck, the truck type, necessary equipment, and the cost of permits in your location.

How profitable is a food truck?

Successful food trucks can be very profitable, bring in around $500,000 in annual sales, and sometimes as much as $50,000 per month. Hitting figures like that requires a targeted menu, excellent marketing, and a full-time commitment to managing your costs and overhead.

Having a highly profitable food truck may also involve expanding your truck operation to include private catering, online ordering , and other revenue streams like selling a shelf-stable signature sauce or retail merchandise. It helps to operate in a food truck-friendly city—like Los Angeles, Philadelphia, or Denver—that has regulations that allow food trucks to thrive.

Is owning a food truck hard?

Owning a food truck takes a lot of work, but can be very rewarding. The days can be long; food prep can start in your commissary kitchen several hours before service, and your day doesn’t finish until the truck is parked, the food unloaded, the greywater drained, and all surfaces scrubbed and sanitized. You’ll interact with excited food fans, but you’ll also be responsible for scheduling staff, processing payroll, and dealing with parking tickets. Marketing is important and all on your shoulders, as are less creative things like paying your sales taxes.

If that sounds manageable to you, then owning a food truck won’t feel hard. But if that description sounds overwhelming, you might want to bulk up your restaurant management or general business skills before taking the step to food truck ownership.

How can I start a food truck with no money?

If you want to start a food truck with no money, crowdfunding is your best bet. Or consider starting with a smaller operation like a cottage food operation or tent vending to build a brand and fan following while you save to start your truck.

Why do food trucks fail?

Many food trucks fail within their first three years of operation due to a lack of funds. Difficulties can include unexciting concepts, tough regulations, poor supply choices, truck breakdowns, poor marketing, and more.

Some of the biggest reasons food trucks lose money and ultimately fail are:

• Local regulations designed to protect traditional restaurants
• Poor operating and financial planning
• Unforeseen vehicle repair expenses
• Underestimating the daily number of hours needed
• Ineffective marketing

If you’ve been dreaming of how to start a food truck business, you should know it is a fun—yet time-consuming—process with plenty of opportunities for growth and profit. The food truck business is demanding but, ultimately, rewarding if you take the time to create a careful business plan with market research and a solid marketing strategy. Ensuring you have plenty of startup capital and the right equipment is the best way to encourage success.

About the Author

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Mary King is an expert restaurant and small business contributor at Fit Small Business. With more than a decade of small business experience, Mary has worked with some of the best restaurants in the world, and some of the most forward-thinking hospitality programs in the country. Mary’s firsthand operational experience ranges from independent food trucks to the grand scale of Michelin-starred restaurants, from small trades-based businesses to cutting-edge co-working spaces.

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How to Start a Food Truck Business

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1. Plan your costs and find a truck

2. get approved by the board of health, 3. get permits and licenses, 4. decide how you’re going to prepare your food, 5. hire employees and get mobile food vendor badges, 6. figure out where to park, 7. start marketing and promoting your food truck, 8. consider using a point-of-sale system, 9. perfect your day-to-day plan, the bottom line.

Lining the streets and sidewalks of every corner with cheap, tasty eats, food trucks — once thought to be just a fad — have proven they’re here to stay. In the past several years, the multi-billion-dollar food truck industry has become increasingly popular as sidewalk chefs reinvent street food, launching the gourmet food truck craze. From 2016 to 2021, the industry saw a 7.5% growth rate, according to Los Angeles-based industry-research firm IBISWorld — and it doesn’t seem to be slowing down anytime soon.

However, starting a food truck business is not as simple as buying a truck and cooking up some food. With any new entrepreneurial endeavor, and particularly food businesses , there is a lot of planning and preparation required even before you get into the details of the actual operation.

In this guide, we’ll walk you through, step by step, how to start a food truck. Plus, we’ll include tips from Debbie and Derek Kaye — who run the booming tri-state food truck business, Eddies Pizza Truck & Cart.

Before we break down our steps on how to start a food truck business specifically, let’s briefly discuss some of the actions you’ll want to take first — when you start a food truck, or any other business:

Write a business plan: Although you may want to get your food truck up and running as soon as possible, a well-thought-out business plan will certainly help you in the long run. By thinking out your long-term plan ahead of time, you’ll have a guide to follow as you continue through the process of starting your food truck.

Choose your business legal structure: Before you start thinking about trucks, cooking and where to park, you’ll need to decide how your business will legally be structured. Will you operate as a sole proprietorship or maybe a partnership? A business attorney or online legal service may be useful in helping you make this decision.

Register your business: Once you’ve determined your legal structure, you’ll want to register your business name, if necessary, as well as register for federal, state and local taxes. You’ll more than likely need to get an employee identification number, or EIN, from the IRS.

Open a business bank account: After you’ve registered for your taxes, you’ll want to open a business bank account as the first crucial step in separating your business and personal finances. This account will be the base for you to manage and organize your funds as you go through the process of starting a food truck.

At this point, you’ll be in good shape to actually get your business off the ground. Let’s break down how to start a food truck:

First, you’ll need to think about costs.

How much does it cost to start a food truck? It’s hard to give an accurate estimate for startup costs because there are so many possibilities in what you’ll need to get started. First, you’ll have to find the right truck for your business and you’ll likely have to get it custom made to fit your needs, which can cost anywhere from $20,000 and $40,000. You’ll also want to consider costs such as:

Ingredients and food.

Salary and benefits for employees.

Technology to operate your truck.

Marketing, advertising and more.

Your actual truck will be the largest and most pressing expense you’ll need to pay for. Before settling on a truck, you’ll want to have a few layout options, keeping in mind what specifically you’ll need for your food truck business.

You might consult various food truck vendors or other business owners to get a sense of what different layouts look like and which one might work best for you. It’s important to also keep in mind that things tend to break a lot more on a truck, cautioned Debbie Kaye, so you’ll want to make sure you consider this in your planning process and have enough finances on hand in case the inevitable happens.

“Appliances weren’t meant to be on wheels, so they frequently need repairing,” she tells us.

With this in mind, you might also think about your various food truck financing options — such as different loans and business credit cards — to cover many of your startup costs.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Next, you’ll have to sort through the rules and regulations you’ll need to abide by. As a food-based business, there will definitely be more considerations to take within this regard.

Therefore, you’ll likely want to first determine what Board of Health regulations you need to follow. It probably isn’t surprising to learn that just like health department inspectors check food at restaurants, the same goes for food trucks. Most inspections are conducted to at least verify the following:

Proof of ownership, identification and license of the vehicle.

Proof of District-issued Food Manager Identification Card.

Food is stored and kept at proper temperature.

Records of food purchase.

Health and fire codes are met.

After figuring out your health requirements, the next step involved in how to start a food truck is getting the necessary permits and business licenses. Once again, because starting a food truck business means handling food and serving it to customers, there will likely be a variety of regulations and permit requirements to sort through. Additionally, the specific licenses and permits you need will depend largely on your state and city.

In fact, some cities, including New York City, have limits on the number of truck permits issued at a time. You’ll want to visit your city’s website to find out exactly what you need to do to get the proper documentation. Keep in mind that this process may take time and will also likely include fees and proof of a Health Department permit, tax certification and liability coverage.

Once you’ve figured out the behind-the-scenes details and decided on your truck, it’s time to think about your product.

After all, a crucial part of learning how to start a food truck business is deciding what kind of food you’re going to make and sell, how that process will work, what you’ll need and what your menu will look like. As you think about these things and start making decisions, you’ll want to remember that unlike starting a restaurant with a brick-and-mortar location, a food truck has limited space — so it can be difficult to prepare food inside.

Therefore, you’ll want to decide whether it’s best for your business to prepare food ahead of time before heading out for the day’s work or if you can feasibly prepare everything on-site. Additionally, when perfecting your recipes, you’ll want to make sure the food on your menu can be repeated in large quantities, taste consistently good, is easy to serve, is easy to eat and can travel well.

With a food plan in mind, the next thing you’ll need to do when starting a food truck is think about hiring staff. In a small environment like a food truck, you obviously won’t be able to have too many employees, but depending on your food, process and the demand you may face, you’ll want to consider hiring help.

When you first start out, you may be able to work with friends, family or a partner, but if your food truck grows quickly, some part-time or full-time employees will likely be helpful. Plus, when it comes to food truck employees, you’ll need to go beyond the typical process of hiring and onboarding a team member.

To explain, aside from all the licenses and permits you need to get as a business owner, each of your employees needs to have a mobile food vendor badge in order to legally work and serve food in your truck. And, unfortunately, it takes about four months to get this badge.

“It is really frustrating to hire someone and tell them they can’t begin working for four months,” says Kaye. “It is quite the backward system that the food truck association has been trying to work on getting fixed, but no luck so far. If [you’re] caught without the badge, it is a $1,000 fine.”

If you anticipate you’ll need staff for your food truck, you’ll want to get this process out of the way and hire your first employee from the get-go. “It’s even more frustrating,” says Kaye, “because if your business loses an employee, you have to wait four months for a new employee to obtain their badge, which means that you might not have enough employees to work lunch and dinner services.”

One of the benefits (and also challenges) of starting a food truck business is the mobile element. While you have the ability to go (to a certain extent) where your customers are, you’ll also need to figure out where the best places are to attract customers, and perhaps just as importantly where you can and cannot park your truck.

Just as is the case with licenses and permits, the restrictions around parking for your food truck are going to be specific to your city; therefore, you’ll want to consult your local regulations to determine what your options are.

It’s very likely that if you’re in a larger location, like New York City, this process will be all the more difficult.

“Technically there is a book that lists where you can and can’t park,” says Kaye. “However, there is a loophole in the system and trucks can be moved by the police at any time from any spot. It is quite frustrating.”

These strict rules and regulations on New York City’s streets had the Kayes paying fines up to $1,000 a month at one time. According to Kaye, finding parking has only become more complicated as more gourmet food trucks are appearing around the city.

With this in mind, you’ll want to take extra care to determine the rules (and any possible loopholes) for your particular location.

First, you’ll need to plan and execute some marketing tactics to inform the local community of your food truck’s existence.

You might plan a “grand opening,” or see if you can take part in a local event to draw up attention and customers. You’ll also want to consider starting a website and social media presence, as well as advertising around town.

Moreover, as a mobile business, whose location can change on a daily basis, it’s important to keep your customers aware of where you’ll be. Whether this means making an established schedule on a weekly basis or simply keeping your customers up to date on your website or social media accounts, you’ll need to keep this in mind.

Although you may very well be able to run your food truck with a paper-based order system and a cash drawer, you might consider investing in a point-of-sale system to automate the process. With your food truck POS system , you’ll be able to manage orders, accept payments (including credit cards), as well as track inventory, create loyalty programs and more.

In fact, there are a variety of POS systems on the market designed specifically for food trucks.

By using one of these systems, you’ll be able to manage everything in one place, speed up and simplify your processes, and therefore, better serve your customers. This is especially important for food trucks, which often experience a rush of customers for a few short hours a day — meaning customers can end up waiting in long lines. In this case, you might consider using a pre-order system to help your food truck handle this kind of rush in business.

According to Kaye, running a food truck business is much more difficult than people think because most people see food trucks only operating during lunch hours.

“What people don’t think about is that to get our spot, we arrive at 6 a.m.,” she explains. “That means we get to our kitchen by 4 a.m. to prep and drive to the spot. After lunch, we drive back to our kitchen and have to clean the truck and the dishes. So for just a few hours of service, we work a 12- to 15-hour day.”

Therefore, like the Kayes, you’ll want to think about how your day-to-day will look: how you’ll work with your employees, where you’ll be on a daily basis, which days will require more time or investment than others. By planning ahead of time, even if just at the beginning of every week, you’ll be able to maximize your time and hopefully, your business as well.

Along these lines, you might also want to think about if your strategy will simply consist of parking around town or if you’ll consider taking part in local events, or even start catering .

Start Your Dream Business

Ultimately, learning how to start a food truck is going to take significant time, effort and investment.

Athough the competition has gotten tougher, if you’re able to carve out a niche, you have a great chance of success without the high costs of opening up a restaurant.

Moreover, if your plans are to open a restaurant eventually, a food truck can be a great starting point. For instance, Laura O’Neill and her co-founders, Ben and Pete Van Leeuwen, started the Van Leeuwen Artisan Ice Cream truck in the spring of 2008. Since then, the trio has received so much success, their business now includes over 20 locations, including both storefronts and trucks in New York and LA.

According to O’Neill, the food trucks allowed the co-founders to explore different locations to figure out who the customers were and what kind of food they liked to eat. Therefore, in a way, it allows you to test out your food creations before having to commit to a costly lease and other high overheads.

Plus, as you figure out how to start a food truck and get your business up and running, you might ultimately decide the mobile business life is the way to go and continue to invest in different trucks around your city or state — the possibilities are endless.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

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The Ultimate List of Resources for Starting a Street Food or a Mobile Food Cart Business

If you’re considering starting your own street food or mobile food cart business but don’t have the know-how, then you’ll love this guide.

From how-to articles to podcasts and online communities of like-minded people, the guide lists everything you need in one place, so you’ll spend less time on research and more focusing on your business plan.

Let’s get started:

Table of Contents

• How-to Guides
• Buying Guides
• Legal Requirements
• Business Plan Templates
• Useful Websites
• Useful Articles
• Business Books
• Social Media Communities
• YouTube Videos & Channels
• Business Courses
• Organizations
• Other Resources

1. Street Food & Food Cart Business How-to Guides

When it comes to the how-to guides you can find online, you’ll notice that almost all of them focus on food trucks and very few address the particularities of smaller scale platforms such as food carts, food stalls etc.

For this reason, we created our own series of Street Food How-to Guides using real, actionable information from our customers.

In this list, however, we also included all the articles created by third parties that we considered to be the best in terms of relevance and practicality. 

Street Food / General

With a world-wide presence that’s stronger by the year, street food’s appeal is growing not just with customers but also with entrepreneurs.

Whether you’re considering a side hustle or a full-time commitment, these guides walk you through the fundamentals:

Guide 1: How to Start a Street Food Cart Business

Guide 2: How to Start a Profitable Street Food Business in the UK

Guide 3: How to Start a Street Food or Food Truck Business

Even with so many new street food contenders, these all-time classics continue to rule the popularity game, both in terms of customer preference, as well as profit margins. 

If you’re planning to start a hot dog cart business, take a look at these guides first:

Guide 1: How to Start a Hot Dog Cart Business

The guide is updated regularly to keep up with market trends

Guide 2: How to Start a Hot Dog Cart Business

Guide 3: Total Cost Breakdown For Hot Dog Cart Business Startups

This article runs you through the start-up and the monthly operational costs of a hot dog cart business. Bear in mind it was last updated in 2016; nevertheless, it should at least give you an idea of the outlay involved.

Although a very popular street food menu item – and very lucrative, dare we say – there aren’t too many articles out there detailing the know-how of a successful mobile ice cream business. Here are the best two:

Guide 1: How to Start an Ice Cream Cart Business

Guide 2: How To Start An Ice Cream Truck Business (USA)

We recommend this guide  – even though it’s geared towards ice cream trucks – because it does a very good job of detailing the registration process, most of which apply to ice cream carts as well.

Coffee is an all-season winner providing great profit margins and countless trading opportunities. But how do you turn it into a successful business? The guides below explain the steps:

Guide 1: How to Start a Coffee Cart Business

Guide 2: How To Start A Mobile Coffee Cart (USA)

As with their previous guide, Truic does a great job in outlining the registration steps for a coffee cart business, which is especially useful for first-time entrepreneurs.

2. Food Carts Buying Guide

As food carts manufacturers, we know first hand that finding a cart that fully meets your requirements is the second most time consuming aspect of setting up your business. 

A few fundamental pointers are necessary, especially for first-time buyers who need to make sure that their chosen platform is legally compliant as well as suitable for day to day operations.

And since there’s no other buying guide out there concerning food carts, we challenged ourselves to create the most in-depth one to date:

How to Choose the Right Food Cart for Your Business

3. Street Food & Food Cart Business Legal Requirements

Navigating the complex process of getting licensed and approved as a street food vendor is, hands down, the first most daunting and time consuming step of a street food business.

Since regulations differ not only from country to country but also from county to county and city to city, creating a complete guide would be pretty much impossible.

However, this doesn’t mean we can’t at least point you in the right direction by listing the universal concerns that need to be addressed.

1. Food Cart Business Laws – Europe

Here are the registration and licensing requirements for the following countries:

Belgium, Denmark, France, Italy, Netherlands & UK

2. Food Cart Business Laws – USA

In the USA, there are as many differences in terms of laws and licensing requirements as there are cities. Even more so, while some regions are quite open and permissive in regards to street food – like Portland, for example – others, such as Georgia or NY, are overly regulated and restrictive. 

Generally speaking, the best way to start would be by:

• checking the U.S. Small Business Administration’s website ;
• getting in touch with the local department of health, to find out what specific permits you need;
• contacting the city hall or the county clerk’s office for business registration info;
• consulting the local tax office for tax purposes.

4. Street Food & Food Cart Business Plan Templates

The very first step of starting your mobile food cart business should be writing your business plan. 

This will serve as a roadmap to success as you embark on your entrepreneurial journey as well as help you face any challenges in a constructive, practical way.

As a rule of the thumb, the more detailed your business plan, the better the chance of developing a successful business. 

By the end of it, you should have a pretty clear picture of each of your business’s aspects such as trading location(s), target market, estimated costs, marketing, projected sales etc. 

Important, right? Here are several templates we recommend: Template 1: Food Truck Business Template complete with example

Template 2: Food Truck Business Template 2 complete with step-by-step explanations

Template 3: US SBA’s Business plan template (generic)

5. Street Food & Food Cart Business Websites

While there aren’t many websites out there focusing exclusively on the ins and outs of street food, food cart or food truck businesses, the ones that do exist are treasure troves of knowledge created by experienced industry insiders, such as:

1. Street Food Central (UK)

2. StreetFood.org.uk (UK)

3. LearnHotDogs.com (USA/Global)

When Ben Wilson lost everything, he turned to hot dogs for a living. Shortly after, he became so successful at it that he grew his business into an empire. LearnHotDogs.com documents his years of experience in the trade, providing how-to guides, clever business tips and free resources such as online webinars.

4. FoodTruckr (USA/Global)

5. Food Truck Empire’s Blog (USA/Global)

The Food Truck Empire was initially started with the purpose to document the process of opening a food truck business and build some buzz through the process. Seven years later, the site has developed into a valuable hub that supports all forms of food entrepreneurship, featuring an active blog, a podcast and even a marketplace.

6. Street Food & Food Cart Business Useful Articles

The increasing popularity of mobile catering businesses and street food in general is well-reflected by the media, whose interest towards the subject has been growing steadily in the last few years. 

Mastering the ropes of a street food business has been covered by online publications such as Forbes and Entrepreneur, with the latter dedicating a whole series to it titled the Startup Kit.

The best articles so far are:

1. Entrepreneur’s series The Startup Kit

The Startup Kit covers several fundamental aspects of owning and operating a mobile street food business, from outlay and licensing , to inventory and marketing . While the series itself is quite informative, it’s actually a summary of Entrepreneur’s book on the same topic – Start Your Own Food Truck Business – included further down this guide.

Five Steps To Revving Up Your Mobile Food Business (Even During A Pandemic)

7. Street Food, Food Trucks & Food Cart Business Books

There’s no better way of starting a business than doing it by the book. And, luckily, thanks to a good number of entrepreneurs that turned their experience into written knowledge, there are plenty of good books when it comes to street food know-how.

While this by no means the full list, below you will find the most appreciated ones, based on reader recommendations and reviews:

Book 1: Start Your Own Food Truck Business (Second Edition): Cart, Trailer, Kiosk, Standard and Gourmet Trucks, Mobile Catering, Bustaurant (2015)

The book covers all the details behind starting and running a successful mobile food business, from choosing the right vehicle to franchising, plus gain recipes, shopping lists, favorite equipment buys and more from practicing street food entrepreneurs.

Book 2: Starting a Part-time Food Business: Everything You Need to Know to Turn Your Love for Food Into a Successful Business Without Necessarily Quitting Your Day Job (2011)

Book 3: Food On Wheels: The Complete Guide To Starting A Food Truck, Food Cart, Or Other Mobile Food Business (2011)

Book 4: Delicious Freedom: How to Take Your Street Food Business from Dream to Reality (2021)

Written by David Weber, the founder and president of the NYC Food Truck Association (NYCFTA), The Food Truck Handbook is, to this date, one of the best and most complete guides out there.

The book offers practical, step-by-step guidance to developing a successful food truck business from concept to equipment maintenance, while cutting through the hype and providing an accurate depiction of the street food lifestyle.

Alternate Reads

How To Start A Food Truck Business in 2020: How To Turn Your Passion Into A Profitable Business In 2020 Step By Step (2020)

Running a Food Truck For Dummies

Food Truck Business Guide for Beginners: Simple Strategic Plan to Build and Maintain a Successful Mobile Business

Melvin Lee – Hot Dog Cart Business – How to Get Started (2013)

Hot Dogs Saved My Life – The Most Comprehensive Guide On The Market (2011)

Turning Passion for Food into a Thriving Business

Book 1: Cooking Up a Business: Lessons from Food Lovers Who Turned Their Passion into a Career – and How You Can, Too

8. Street Food & Food Cart Business Social Media Communities

Reddit Communities

Known for its wide variety of communities for every topic under the sun, Reddit lives up to its name when it also comes to street food. Here are the two most active street food subreddits:

1. Food Trucks

2. Street Food Artists

Facebook Groups

Part marketplace, part discussion hubs, these street food groups have it all: you can seek and offer advice, buy and sell equipment, offer jobs, check organiser credibility etc.

1. Street food / Food Trucks / Traders / Venders / Equipment U.K

2. Street Food Traders – Mobile Caterers – Staff – STREET FOOD COLLECTIVE

USA / Global

1. Food Carts, Food Trailers, Food Trucks, Food Equipment for Sale

2. Food Truck & Trailer Life

3. All About Food Trucks and Trailers

9. Street Food & Food Cart Business Podcasts

  Podcasts are a fun way of consuming knowledge, especially when it comes from industry insiders and seasoned veterans. 

Fortunately, there are some great podcasts out there when it comes to street food. And even though none of them strictly refer to food carts, they are nonetheless full of know-how, ideas and useful tips that could easily be applied to a mobile food cart business.

Here are our favourites:

1. KERB On the Inside (UK)

The podcast is hosted by Petra Barran, the founder of KERB – an UK street food incubator and accelerator.

3. Food Truck Empire’s podcast

4. The Food Truck Scholar

5. Truck Tales by Food Truck Ventures

From the Archive

FoodTruckr School Podcast

Additional Listen

Chefs Without Restaurants

10. Street Food & Food Cart Business YouTube Videos

1. LearnHotDog’s YouTube Channel

Ben’s channel is dedicated exclusively to starting and developing a successful hot dog cart business. His videos cover pretty much everything there is to know on the subject, such as business planning, legal aspects, cart setup, how to deal with competition, and so on.

2. Business with Dave

Dave is a young entrepreneur from the UK, passionate about business, street food, and these two combined. His videos focus on street food businesses and entrepreneurship, providing a modern, hands-on approach to achieving success.

3. UpFlip’s Food Truck Series Part 1 & Part 2

Coming from UpFlip, an YouTube channel for business owners and entrepreneurs, this two part series features Kyle Gourlie, owner of the Vet Chef, voted the Best Food Truck in Western Washington in 2017. During the interview, he talks about how much his food truck cost, how he’s built a successful food truck business, and his plans for the future.

4. Marketing Food Online

This channel is the brainchild of Damian Roberti, the founder and owner of The Brittle Box Candy Company. It features over 700 hundred videos all about starting, growing, and helping food businesses succeed, including topics such as how to start and grow a mobile street food business, how to sell food at farmers markets and events, and how to market food products online.

11. Street Food & Food Cart Business Courses

The Food Truck Bible – The A-Z On How To Win On The Street!

Food Truck Business Plan – Template, Sample, Example & Excel

Start Your Own Food Truck – Leave the Corporate World Behind

Additional Course (UK only)

Food Safety in Catering (UK)

12. Street Food & Food Cart Business Organizations

3. European Street Food

1. Street Food en Mouvement

2. Food Truck Associations

Belgian Food Truck Association

1. Chicago Street Vendors Association

2. National Food Truck Association

1. L’association Des Restaurateurs De Rue Du Québec

2. StreetFood Vancouver Society

13. Other Resources

Food Truck Pub

This is a free online ordering system for food truck owners and street food enthusiasts. The app is available for iOS as well as Android users.

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How to Start a Food Cart

• Small Business
• Types of Businesses to Start
• Starting a Food Business
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• Starting a Food Vendor Mobile Business at Fairs, Carnivals and Festivals
• What Do I Need to Start an Ice Cream Truck Business?

If you have a passion for food and love being around people, a street food cart business might be right for you. You can succeed even if you're starting a food truck with no experience working in one. Learning how to open a food truck starts with exploring food cart business ideas and then making a solid business plan. From there, you can purchase what you need and start operating your popular new food truck, serving customers delicious food.

Make a Food Cart Business Plan

As much as it would be more fun to start naming your business, designing a logo and crafting your menu, you have to worry about practical matters first. Begin by researching the regulations and statutes governing mobile food businesses in your state, county and city, paying particular attention to the Board of Health's rules. Knowing these rules can help you understand what you can and cannot do and how the laws may restrict your movements and the cart or truck itself. These rules vary widely from place to place, so if you seek advice from other mobile restaurateurs, make sure they registered their business in your municipality.

Now that you understand what's allowed, you can get into more details, but the writers at Webstaurant Store explain that you need financing first. Start-up money is one of the biggest impediments for many aspiring food truck owners. While a mobile enterprise is undoubtedly less expensive than a brick-and-mortar restaurant, learning how to start a food truck with no money is even more challenging.

How to Open a Food Cart

To move forward with your business, you need to write your menu because the kind of food you sell might dictate the type of license you need. According to Square , analyzing your target market and local community's food preferences can help you decide what type of food will sell well. If you prepare prepackaged food in a commercial kitchen and sell it, that's likely different than if you cook the food onsite. The equipment you want to use could also change the type of truck and the licensing you need.

As you design your menu and consider your brand, you should always consider how you will outfit your truck. The cart or truck is likely the priciest piece of equipment you will purchase, so you want to ensure it will not only fit your needs now but also grow with your business in the future.

Once you know the details, you can write up a business proposal and put together a presentation for potential investors or banks.

Food Cart Business Ideas and More

There are many other critical factors when starting a food cart. For one thing, you need business skills. You'll need to incorporate your business and learn how to pay the applicable taxes. If you plan to hire employees, you'll also need to learn how to pay them and learn when they need to take breaks.

When trying to succeed as a small business, it's helpful to be active in your local community. Join your area's chamber of commerce and any other relevant organizations. You may even consider aligning your food cart with a charity or cause, such as an animal shelter or elementary school.

It can also help to get active on social media and try to amass a following with smart marketing techniques. Go where people gather, such as farmer's markets or festivals. If you're concerned about building a reputation and finding customers, you can look for a food cart business for sale. If it's a local business, they probably have a following already.

• Webstaurant Store: How to Start a Food Truck
• Square: How to Start a Food Truck Business

Danielle Smyth is a writer and content marketer from upstate New York. She has been writing on business-related topics for nearly 10 years. She owns her own content marketing agency, Wordsmyth Creative Content Marketing, and she works with a number of small businesses to develop B2B content for their websites, social media accounts, and marketing materials. In addition to this content, she has written business-related articles for sites like Sweet Frivolity, Alliance Worldwide Investigative Group, Bloom Co and Spent.

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Food Cart Business: Beginner’s Guide (Top 9 Ideas)

10. Strategize with your prices

Being faced with intense competition in your own food cart business, you must gain a competitive advantage through pricing strategies. As a customer yourself, you consider food prices that are budget-friendly and suit your preference.

However, make sure to set your selling price higher than the cost. Strike a balance between affordability, competitiveness, and profit.

You should also negotiate with your suppliers well to avail discounts and lower costs

11. Register your business

As a law-abiding citizen, you must secure all the necessary permits from DTI, IPO and BIR. Apply for health and sanitary permits and BFAD approval as well.

Since you are given the privilege to operate and earn a profit, you must comply with legal requirements and pay your tax liabilities.

12. Hire an adequate and competent staff and team

The staff you will assign in your workstation will be shouldering your brand. They must be well-compensated to gain motivation for maximum performance.

Be meticulous in choosing your team members for they will all be playing crucial roles for managing and improving your business.

13. Market your food cart

Technology conveniently makes the marketing process easier. Social media platforms, such as Facebook and Instagram are your havens for the promotion of your food cart and enable you to earn your very first loyal customers.

Marketing requires limitless creativity. Why don’t you make a catchy tagline and a song for your food cart that will be stuck on your customers’ heads?

Ask your friends to share your advertisements to have a wider reach. You can provide promos and gimmicks for your customers when your food cart has just launched!

14. Love the product you sell

You must be a fan of your own product. You can’t engage in a food cart business that sells shawarma if you find it unappetizing.

Loving the product you sell creates a more pleasant and stress-free working environment for you! This could be one of the keys to ensure the longevity of your business.

Food Cart Franchise

Franchising is “a method for expanding a business and distributing goods and services through a licensing relationship,” a definition provided by the International Franchise Association.

This licensing agreement involves the participation of both franchisor and franchisee. You should know the difference between these two in layman’s terms:

• Franchisor

He is the legal owner of the overall rights, including trademark, method, and products of the company. He grants the license to the franchisee.

• Franchisee

He is the one bound by the licensing agreement granted by the franchisor. The franchisee purchased the right to sell the franchisor’s products.

In this case, planning to start your food cart franchise through already established brands will make you the franchisee.

Advantages of Franchising

1. Established brand and customer base – When you franchise, the brand is already recognized and has proven its profitability. You won’t worry that much about incurring huge losses.

2. Higher chances of success

3. Faster return of investment

4. Growing trend

5. Minimal risk

6. Marketing support – Advertisements are often aired on televisions and radios. Some are even heavily promoted through billboards and other powerful outlets so attracting customers won’t be that burdensome.

Disadvantages of Franchising:

1. Royalty fees – Fees must be remitted to the franchisor for a percentage of your monthly sales; thus, your income is reduced.

2. Limited control and freedom

3. Dependence on franchisor success

4. Limited creativity and flexibility – If you ventured into a milk tea franchise, you can’t innovate the taste of the milk tea. You can’t decide on your own and replace the tapioca pearls with your own preferred version.

As you can notice, the advantages still outweigh the disadvantages. Actually, the franchise has been named as the “business with least tears and fears.”

This boosted your motivation, am I right?

I hope you keep that passion burning!

Food Cart Business Ideas

You already made progress in reading this blog. Probably, this guide already flicked a light on your mind!

So, upon conducting a little research on what Filipinos love today, here are some ideas for your own food cart business that could further spark your interest!

1. Milk tea

Among all the food products on this list, this one takes the crown. Filipinos ranked second highest milk tea drinkers in Southeast Asia. The average milk tea consumption in the Philippines is 5 cups per month!

As a milk tea addict, maybe you have that unique milk tea formula you’d like to explore! Turn those pearls into cash! If this doesn’t convince you, I don’t know what will.

Gilbert Jim, a tea-lover and owner of Bubbatealicious which started in 2008, wanted to advocate tea-drinking which wasn’t prominent in the country at that time. He continued advocating tea-drinking until his hard work only paid off in 2010.

As your own milk tea business reaps its success, expect the blockbuster lines, and the whopping blockbuster sales!

2. Fruit shakes

Filipinos, regardless of age, want something to quench their thirst in this microwave oven we live in.

Whether you built a cart in transport terminals or beside schools won’t matter; people will still be lining up for a refreshing mango shake or buko shake.

The perfect ulam + sinangag + itlog would always be the ultimate favorite combination. Tapa, tocino, hotdog and bangus are some of the classic favorites.

It’s not only ideal for breakfast but satisfies your stomach for any meal of the day.

A perfect example of a successful food cart business would be Ate Rica’s Bacsilog.

The craze started in DLSU, until it branched out its operations in other areas. They stepped up the typical bacon silog by featuring and boasting their most-loved cheese sauce!

4. Chicken wings

Who doesn’t love chicken wings? Chicken wings are a timeless favorite. People continue to indulge in experimenting sauces and new flavors that would be on par with other chicken wings restaurants.

5. Street food

Make those kwek-kwek, isaw, fish ball, siomai or dimsum your own version! You can innovate by producing a delicious coating or even by adding a twist to the usual orange kwek-kwek color.

Be remembered as a modern street food cart business that prides in cleanliness, affordability, and superior taste.

Top 9 Food Cart Franchise Opportunities (Ranked starting from the cheapest)

Before giving you the updated list that would hint your next business franchise venture, here are some terms you should be knowledgeable of:

Payback period – the length of time that would recover your initial investment.

For example, your initial investment for Siomai King amounted to P150,000. For a year, your monthly income amounted to P12, 500.

P12,500 x 12 months = P150,000.

Your investment was recovered in a year. The faster the payback period, the better. However, also consider inflation. The money you initially invested may not have the same value in the future.

For this list, the capital ranges from P50,000 to P250,000!

For your convenience, relevant information such as contact details is provided. Here are the franchise businesses leading the pack in terms of minimal investment:

1. Burger Matsing Franchise

• Minimum initial investment: PHP 50,000
• Package inclusions: Franchise fee, franchisee and crew training, online ordering system, operations and marketing support, etc. (Excluded: Store construction cost, equipment, and initial inventory)
• Contact information : [email protected] / 0945-3456957 / 0939-8775810 / 0943-8700283

Yes, for only P50,000, your goal of a food cart business can be at the palm of your hands. With proper management, this can be as easy as pie.

2. Star Frappe’ Food Cart Franchise

• Minimum initial investment:  PHP 99,000
• Package inclusions:  Trade name use, food cart, equipment, crew uniform, initial products worth PHP 3,000, franchisee and crew training, and after-sales support
• Contract term:  1 year (renewable without a fee)
• Average payback period:  3 to 4 months
• Minimum space requirement:  6.25 sqm
• Contact information:   [email protected]

Your investment is already recovered in a short period! You will then start earning profit in your 5 th month of operations. Be completely aware of your franchisor’s terms regarding royalty and franchise fees.

3. Boy Kanin Food Cart, Kiosk, Dine-in Counter, or In-line Store

• Initial investment: a. Kiosk: PHP 149,000 b. Dine-in counter: PHP 199,000 c. Small in-line store: PHP 249,000 d. Big in-line store: PHP 299,000 e. Food cart: PHP 299,000
• Package inclusions:  Franchise fee, trademark use, initial stocks, franchisee and crew training, marketing support, opening assistance, crew uniform, cart, equipment, etc. (Excluded from the kiosk, dine-in, and in-line store packages: Construction cost, equipment, and marketing materials)
• Contract term:  3 years
• Space requirement:  4 sqm (Kiosk/food cart) / 15 to 20 sqm (Dine-in) / 30 to 50 sqm (Small in-line) / 60 to 100 sqm (Big in-line)
• Contact information:  [email protected] / 352-8130 / 0917-3443472 / 0923-6831409

4. Hong Kong Style Fried Noodles & Dimsum Food Cart Franchise

• Initial investment:  PHP 150,000
• Package inclusions:  Food cart, equipment, utensils, small wares, initial product, training, pre-opening and opening assistance, crew uniform, and marketing materials
• Space requirement:  4 sqm
• Contact information:  343-0536 / 0917-5000772 / 0922-8307611

5. Siomai King Food Cart Franchise

• Initial investment:  PHP 168,888
• Package inclusions:  Security deposit worth PHP 40,000, trade name and logo use, food cart, equipment, utensils, food tasting products worth PHP 1,000, training, operations manual, opening assistance, marketing materials, etc.
• Contact information:  [email protected] / 889-4773 to 76 / 0918-8JCFRAN (523786)

As part of the new normal, Siomai King allows online franchising. Even when on lockdown, you can launch your food cart business.

You can be a franchisee in the comfort of your home. If you’re interested, click for full details .

6. Potato Corner

• Minimum initial investment:
• Food cart: PHP 200,000
• Kiosk: PHP 400,000
• In-line store: PHP 500,000
• Package inclusions: Franchise fee, food cart, franchisee and crew training, equipment, small wares, and initial supplies
• Average payback period: 1.5 years
• Contact information: [email protected] / 534-5845 / 534-5846

7. Mister Donut Food Cart, Take-out Booth, or Dine-in Shop

• Minimum initial investment: a. Food cart: PHP 200,000 b. Take-out booth: PHP 400,000 c. Dine-in shop: PHP 650,000
• Package inclusions:  Food cart, equipment, small wares, POS tablet, and crew uniform (Excluded: PHP 50,000 franchise fee)
• Contract term:  2 years (renewable for another two years at PHP 50,000)
• Average payback period:  8 months (cart) / One to two years (dine-in)
• Minimum space requirement:  1.35m x 2.16m (Cart) / 6 to 9 sqm (Take-out)
• Contact information:  [email protected] / 370-1236 / 0917-8896148

8. Waffle Time Food Cart Franchise

• Initial investment:  PHP 250,000
• Package inclusions:  Franchise fee, food cart, equipment, training, and crew uniform (Excluded: PHP 50,000 refundable security deposit)
• Contract term:  3 years (Renewable for another three years)
• Average payback period:  6 to 12 months
• Minimum space requirement:  4 sqm
• Contact information:  [email protected] / 584-1601 / 584-3704 / 0933-8513968

9. Happy Cup

• Minimum Initial Investment:
• Cart – PHP 250,000.00
• Outlet & Kiosk – PHP 300,000.00 to PHP 350,000.00
• Area Franchise – PHP 750,000.00
• Contact Information: [email protected] / 0917-12345678

Did none of these wake up the entrepreneur in you? To have a full list of food franchises you can venture into, particularly those below P1M of investment, read more

If your budget is specifically below P500,000, here is a compilation under these two categories, click here

Final Note to Aspiring Entrepreneurs

A food cart business can be a root to wonderful opportunities. That cart will be one of your first symbols of success. Hence, acquainting and engaging yourself in the food industry is indeed a wise decision.

However, kickstarting your business can be both intimidating and challenging.

Life isn’t about rainbows and butterflies. Get rid of your “what ifs” and start your business planning process! Be embodied with passion and zeal in the pursuit of your dreams.

There’s a quote that says, “If you have lemons, make a lemonade,” But do you ponder on and reflect on the true meaning of this?  Lemons represent the sourness, the adversities in life, but we shouldn’t settle with its sourness forever but radiate optimism and hope instead.

Let go of the fear that your business will fail. It will only be a failure the moment you didn’t try. Soon, you will reap your big success.

I would like to hear your food cart business journey soon!

Read these next:

• Pisonet Business: Everything You Need to Know!
• 25 Best Franchise Business Opportunities in the Philippines – by Grit PH
• How to Start A Successful Internet Cafe Business
• 14 Things You Need to Start A Sari Sari Store Business

Jerico Saquing

Jerico is the founder of Peso Hacks. He's also a freelance writer who specializes in topics related to finance, travel and games. In his spare time, he likes to watch anime, play mobile games and read books.

Fresh Posts

Related Book: Start Your Own Food Truck Business

Goin' Mobile: Your Options

Even before you decide what foods to sell, you'll want to consider how you want to sell them.

Clearly, your decision on how to sell your foods will depend on:

• Your startup money, budget and potential for returns
• Your commitment to the business: part time, full time, etc.
• Your creative ideas and what it will take to fulfill them
• Your experience at running a business
• The size of the business you want to start
• Your ideal demographic

These are a few of the considerations you will consider as you proceed, but for now, let's take a look at the common mobile-food entities.

Food Kiosks

Food kiosks are essentially booths or food stands that are temporary or mobile facilities used to prepare and sell food. Malls and stadiums are popular locations for food kiosks, which sell anything from pretzels and ice cream to more elaborate fare.

Although kiosks may have wheels, they are not mobile under their own power and in most cases need to be assembled. Most kiosks are rectangular and have room for two people to work within or stand behind, preparing and serving the food. They also have counter space and overhead signs.

The low overhead, flexibility and ease by which a kiosk can be opened and closed are among the reasons they're so popular. They are also an excellent choice in areas where your outdoor selling season would be limited by cold or nasty weather. Of course, the size of the kiosk limits the inventory, so it's important for a kiosk owner to carry as much as possible and price accordingly so that she can make money on what is on hand each day. Because they are usually operating indoors, kiosk owners typically sign licensing agreements at malls, stadiums, movie theaters, or other locations. Many major food businesses such as Ben & Jerry's and Baskin-Robbins franchise express kiosks.

Food Carts and Concession Trailers

The food cart and the concession trailer have been around for decades and combined are a multibillion-dollar industry today. The best known have always been hot-dog and ice-cream carts. They are among the most cost-effective ways to start a mobile food business because the carts are typically pulled by your car, truck or van, or pushed by hand. Food is either prepared in advance or purchased ready to sell -- like ice-cream pops or cups of Italian ices -- and stored, and then either heated up or pulled from the freezer. Carts are also fairly easy to maintain, and in many counties and communities, require less licensing than the full-size food trucks. It is also cost-effective if you choose to own several carts and hire friends, family or other employees to help run them for you.

There are two basic types of food carts. One has room for the vendor to sit or stand inside and serve food through a window. The other uses all the space in the cart for food storage and cooking equipment, which is typically a grill. The precise type of cart you'll want should be determined largely by the food being offered.

Modern-day food-cart owners have cleaned up the somewhat greasy reputation of street-food vendors. They have also expanded their menus. Kebobs and gyros came on the cart scene awhile ago, and vegetarian and Mediterranean salads have also caught on, as well as fish and chips. The Euro Trash food cart in Portland, Ore., for example, offers items like a prawn baguette with Portuguese curry prawns. And then there's Portland's Pie Lab, with slices of pie -- extra for ice cream or whipped cream on top.

Trailers, like carts, do not move under their own power, limiting their potential locations. Food trailers are often found at fairs, carnivals, sporting events, or other places where they can be unhitched and sit for awhile. Unlike most carts, trailers allow for cooking and have room for two or three people inside. Skillet Street Food in Seattle operates from an Airstream trailer with a full kitchen within. In short, a trailer can provide more options than a cart but is still less expensive than a truck.

Food Trucks

The food truck can carry any number of foods, and in some cases, more sophisticated equipment for storing, serving, cooking and preparing foods. Traditional food trucks were known for providing lunches, typically stocking sandwiches, kebobs, tacos, burgers and other standard fare for the lunch crowd. Many have expanded to include healthier vegetarian and vegan offerings, as well as not-so-healthy barbeque ribs. They do big business in corporate parks and places that have limited access to restaurants. Most food trucks are stocked from concessionaires, but there is a growing number that are associated with fast-food and midlevel restaurants. Sizzler and California Pizza Kitchen, for example, are putting together their own food trucks, as are other chains.

Larger than carts, trucks can carry more food and handle more business. However, food trucks need more space to park both when doing business and when off-duty. Essentially, there are two types of food trucks. One is the mobile food preparation vehicle (MFPV) where food is prepared as customers wait, hopefully not very long. The other is the industrial catering vehicle (ICV), which sells only prepackaged foods. An MFPV costs more than an ICV, and both cost more than a food cart. For example, a used hotdog cart may cost under $2,500, while a retrofitted used food truck would typically cost $30,000 or more. A newly designed food truck retrofitted MFPV with new all equipment could cost you upward of $100,000.

Complying with health-department rules and regulations can also drive up food-truck costs. Clearly, a smaller truck, a used truck, or a truck with limited equipment costs less. Therefore, it is up to you to determine whether you'll be cooking in the truck, preparing food somewhere else and serving from the vehicle, or selling prepared and prepackaged foods.

Gourmet Food Trucks

Basically the same as a food truck, the gourmet food truck takes food quality to a higher level. They are run by ambitious young chefs who offer cuisine not typically found in food trucks, such as specialty crepes, kimchi pork-fries, osso bucco, velvet cupcakes, or the chicken marsala meatballs with cilantro chutney found in the Great Balls on Tires gourmet food truck. Like Great Balls on Tires, many gourmet trucks have specialties and themes. In addition, they let their clientele know where they'll be parked through their websites and social media sites like Twitter. While food trucks need not have kitchens, gourmet trucks are more likely to have food prepared on the spot -- and high-end food at that. At the start of the new gourmet food-truck craze, Los Angeles was clearly the place to find such high-end dining. Now, however, New York has gained its share of such fancy food vehicles, such as the Rickshaw Dumpling Bar and The Dessert Truck founded by a former Le Cirque pastry chef. And as the concept of serving fine food rolls along, other cities from Portland, Ore., to St Louis and on down to Miami's South Beach are jumping on the foodie bandwagon with their own regional favorites. Food Network chef Ingrid Hoffmann's black and pink Latin Burger and Taco Truck, for example, has become quite the rage in Miami.

The Mobile-Catering Business

Mobile-catering trucks can be defined in a variety of ways and can overlap with mobile food trucks. Here are three differences: First, a catering truck is hired for a specific event such as a picnic, party or fair. Secondly, the person hiring the catering vehicle can select from a catering menu. Third, a catering vehicle can be used to transport the foods, which are then handed out from inside the truck or set up at the event or gathering, typically on trays or buffet style. This can mean providing the food to be served outdoors or parking and serving from the truck as the food trucks do. The differences are primarily in the manner of doing business. Nonetheless, the need for a reliable vehicle, licensing, permits, sanitary conditions, a business plan, and startup money are quite similar to the requirements of a mobile-food business.

One of the advantages of a mobile-catering business is that you are not risking as much in inventory because you are cooking and bringing food as ordered for the party. Therefore, you are covered for your food costs. You also have a specific destination, so you need not worry whether your favorite destinations will be busy. Typically, you are less dependent on good weather because many catered functions will be indoors. As long as you can get there with the food, you are usually OK. Of course, you do need to line up enough work to support your business. The difference between a mobile-catering business and other catering businesses is that you are using the mobility of the truck to show up rather than having a catering hall or venue.

Can You Handle the Heat?

While it may look easy, the food-truck industry takes a lot of hard work. For Scott Baitinger and partner Steve Mai who run the famous Streetza pizza truck in Milwaukee, Wis., a typical day starts three or four hours before taking the truck out on the road. "First we'll stop at Sam's Club or Restaurant Depot and pick up fresh ingredients. Then we go to our off-site commissary kitchen where we do all the prep work, which includes rolling the dough, making sauces, cutting the vegetables, and all of the things you really can't do in a 10-by-10 truck," explains Baitinger, who still works a day job in advertising but handles the truck on nights and weekends. Mai runs the weekday shifts except at times in the winter when no one in Milwaukee wants to trek outside in three feet of snow -- not even for pizza.

Then the Streetza team, which also includes a small staff on various shifts, parks at well-selected locations and prepare and sell food. At the end of a day, which is typically when they run out of food or the crowds have dissipated, comes the cleanup. "It's a lot like a restaurant cleanup with stainless steel cleaners, scrubbing, mopping, and making sure everything is in perfect shape to start again tomorrow," adds Baitinger.

Most mobile food business owners follow a similar set routine, whether it includes running the kiosk, cart or truck themselves or having employees run it. The routine, as is the case with Streetza, may include very early morning food shopping a few days a week, if not every day. Then there is stocking the kiosk or vehicle and heading to your destination(s). There is also a need to take some time during the day for marketing, usually via Twitter or another social media. Most mobile food vendors work roughly 10 hours a day. There are also days in which a business owner needs to sit down in a quiet office space, preferably at home with his feet up, and do all of the bookkeeping: paying taxes and bills, renewing licenses, and handling other fun paperwork responsibilities. The work is tiring and the day is long.

Can you handle such a day on a regular basis?

Planning Your Menu

If you look at the food trucks, trailers, carts and kiosks on the streets and at mobile catering menus, you'll find that almost anything edible can be served up street-side. Of course the big question is: How practical is it? This may account for the lack of baked Alaska carts out there, but rest assured, someone is probably selling it on some street corner.

Determining what to serve can be fun. But there are a lot of factors to consider when it comes to menu planning in the mobile food world. Here are a few:

• What do you know how to cook?
• What foods do you enjoy cooking?
• What foods are popular in your town, county, city or region?
• What ingredients are easy to get from wholesalers, markets or farms in your area?
• What foods are easy to transport to and from an off-site commercial kitchen?
• What can you prepare and/or heat up without much difficulty?
• What food(s) are ideally suited for your culinary expertise or allow you to try creative new recipes?
• What foods can customers easily carry around with them?
• What food(s) are potentially cost effective for you to sell?
• What foods are not being sold at 100 other food trucks, carts, kiosks or mobile caterers in your area?
• What times of day will you be open for business? Breakfast? Lunch? Dinner? Late night? All of the above?
• Are you going to specialize in one or two foods with several variations such as pizza, tacos or ice cream?
• Are you going to have a larger menu? Remember, a larger menu typically requires more space and may move you from a kiosk or cart to a truck or bus.

The Next Step: Perfecting Recipes

Unless you are buying prepared foods or have a chef providing you with foods, you'll want to plan your own recipes, work on them, re-work them, and have some taste tests. Consider your family and friends as your very own guinea pigs. Have parties, make a fun time of it, but get them to taste your foods and give you honest critiques. Don't be afraid of some criticism -- better to receive it from friends and family than from food critics and customers.

Once you've found a few favorites, make sure you can master the recipes. Write them down for future reference. Next, try some variations on a theme. Most mobile food entrepreneurs spend several months, often while waiting for their truck to be retrofitted and their backers to fork over some startup money, experimenting with various menu items.

Test Your Food Don't start out with foods you have not thoroughly tested. This means you need to perfect each recipe to be sure it has the following qualities:

• It is easy to make repeatedly in large quantities.
• It tastes consistently good.
• It is easy to serve.
• It travels well.

Buying Ingredients

Sourcing, as they call it in the food business, is the process of getting your foods and other ingredients. Like a restaurant, you need to determine your potential volume and buy accordingly. You always need to be planning in advance to shop or receive orders so that you are never out of necessities. If you are cooking, make a detailed shopping list of ingredients. If you are buying food from wholesalers, know how much you need, how much you can safely keep fresh, and how much you can sell before any food goes bad. You are better running out of food on a busy day than selling something that isn't fresh. Determining the right quantities to purchase is usually trial and error. Where to source your food, can be a factor in planning your purchases, schedule and offerings. Common sources include wholesale food distributors, food manufacturers, local and regional suppliers, greenmarkets and farmers markets, food cooperatives and shopping clubs like Costco or Restaurant Depot.

Food shopping is a huge endeavor for Adria Shimada, who looks for all organic products to use when making homemade ice cream for her Seattle food truck, the Parfait Ice Cream Truck. "I get everything from a different distributor. Milk and cream come from a local certified organic dairy farm about 80 miles away, and I get eggs in another nearby town from another organic farm. All of my produce is real fresh produce, I don't use flavors or extracts. For my mint ice cream, I use real spearmint from a farm in Carnation, Wash.," explains Shimada who scouted and tasted the food from many farms before finding her sources. Some deliver to her commercial kitchen, and others are found at farmers markets in Seattle where farmers bring the wholesale quantities she needs.

Related Article: Food Trucks 101: Where to Stock Up on Ingredients

Licenses and Permits

Before you finish putting your menu together, building your perfectly retrofitted cart or truck or setting up your kiosk, you need to get your licensing in order. While that's not one of the more exciting aspects of your entrepreneurial pursuit, it's one of the most important. It is, in fact, the overall commitment to more stringent health codes and sanitary regulations that have paved the way for food vehicles to generate such a mass following. The knock against food carts and trucks has long been that they were neither clean nor sanitary. Now, as that widespread perception changes, foodies and nonfoodies alike can enjoy their fare with confidence that those running the business are doing their utmost to meet, and surpass, sanitary requirements.

It would probably take several volumes to list and explain the numerous permits and licensing requirements because each state as well as most cities and even counties have their own. However, there are many universal concerns that need to be addressed. Typically, your local department of health will have the information you need. Therefore, you can get started by looking up the local health department online or in your local Yellow Pages and calling to inquire about the necessary requirements. The state or city will have specific requirements that must be met depending on your mode of operation.

If you are selling prepackaged foods, you are not considered a food handler and may have less stringent requirements than if you are actually preparing foods or even scooping ice cream. As long as food is unwrapped, you are typically considered to be a food handler and must meet specific regulations. While your cart or truck designer will not know the nuances of each city's requirements, he or she can usually help you meet health standards. Before you can hit the road, health inspectors will inspect your vehicle. What are inspectors actually looking for? In Washington, D.C., for example, an inspection is conducted to verify the following:

• Proof of ownership, proper identification and license (of the vehicle)
• Proof of District-issued Food Manager Identification Card
• Food-purchase record storage and record keeping
• That your depot, commissary or service support facility meets your vending unit operation needs
• Copy of license for the service support facility and/or a recent inspection report.

Food vehicles are typically inspected at least once a year by a health department inspector, sometimes randomly. The inspector checks to see how food is stored so that it does not spoil and that it is kept at the proper temperature. All food equipment as well as sinks and water supplies are checked. Commercial kitchens and garages in which food vehicles are kept are also inspected frequently and can be given high fines if they do not meet health and fire codes. Some have been shut down because of too many violations. Likewise, trucks and carts have lost their licenses over repeated violations.

Related Article: Clever Tips for Marketing Your Mobile Food Business

Your locations will play a major factor in your success. Your decisions on where to park for business purposes will depend on several key factors. First, you have to consider where you are allowed to park by law. Next, you want to ask yourself where in those areas can you find the customers who would like your foods and/or beverages. You also want to consider the prime hours for each potential location and, of course, the competition. Keep in mind that even if you've found the perfect lunch location on the map and you are allowed to park there, you may also find 19 other food carts and trucks lining the streets.

As more food trucks appear on the streets of major cities like New York, Los Angeles and San Francisco, it becomes much more difficult to find prime locations. Add in the fact that there will be business owners who do not want you parking near their establishments, and it can be a major challenge coming up with good places to do business.

Some places to consider parking are:

• Office parks . Find out if food trucks are allowed to park and during what hours. If you are lucky enough to find an office park without much competition, stake a claim or get a permit (if necessary) from the renting or leasing company to park there regularly. Breakfast and lunch hours should be your primary time slots.
• Empty lots . If you can find out who owns the property, make an offer to pay to park there on a regular basis. You can propose a flat daily rate, a percentage of your sales or both. Such an agreement can benefit both parties and give you a chance to establish yourself. Of course you need to find a lot where there is enough foot traffic to make it worthwhile.
• Shopping districts or malls . You may or may not be allowed to park on a public street alongside stores. Public streets are governed by local traffic laws. That being said, storeowners have a lot of say. Know your local ordinances. You may, however, be able to park near the parking lots or on an adjacent corner to a mall entrance. Malls will likely require you to have a permit to park on their property -- inquire within the mall. Established shopping areas may have little room for you to park, but newer areas, recently opened for business, may give you an opportunity. You may, however, have some growing pains along with the storeowners.
• Popular tourist locations . The tourist crowd is often a great demographic. However, the competition can be fierce near well-known attractions. Sure, you will find food carts around Central Park in New York City, but many have established themselves in specific locations, making it nearly impossible to break into their territory. In some cases, you may need to pay for the privilege of parking at a prime tourist attraction, and it can be pricey. The CupCakeStop owners pay several thousand dollars a month to park at the popular South Street Seaport in lower Manhattan.

You can also look for the opening of a new museum, gallery, theater, arena, visitor's center or anyplace that has just been added to the list of must-see places in your city.

• Sports venues . You may need permits to get close to an arena or stadium. However, if there is street parking for ticket holders, you can usually try to get on a street or a major roadway leading to or from the facility.
• Festivals and events . "We take the truck to local events like Market Square Day, which brings in like 80,000 people, which is a lot for a town of 25,000," says Michelle Lozuaway of Fresh Local in Portsmouth, N.H.
• Conferences and conventions . As is the case with festivals, if they are annual events, they are planned well in advance. Get to know where they are staged and lease your space well in advance or find a place on a public street that leads to the conference or convention center.
• Parks and beaches . You need permits to park in a park or on beach property. Check with the local parks commission to see if you can get such a permit and at what cost. Carts may have the upper hand here because they take up less space.
• Bus and train stations . If there is room, by all means consider these as busy locations where people may be hungry. Again, you have to know where you can park, so inquire. Also, get an idea of which hours will see the most foot traffic.
• College campuses . Off campus, public streets may be good for parking. However, unless it is a commuter school, you may not have a lot of traffic. To get on campus for a few hours a day, you need to get a permit from the school, and that may be difficult depending on the institution and its policies. If nothing else, you may be able to secure a spot when there are major school events, such as football or basketball games.
• The business district . Serving lunch in the middle of a busy business area can be terrific. However, in some cities, like New York, it's next to impossible to just slip into the mix without angering the competition (and you don't want to do that). Again, look for developing areas. Read about companies moving downtown or uptown or to a part of town that is now being built up or re-zoned for commercial use. Try to stake a claim in an up-and-coming area. You may struggle at first, as do many new businesses, but in time you may be the king of the hill.

Learning all about parking rules and regulations in your city and finding the best potential locations for your business takes due diligence. Even once you have found a few locations to your liking, keep on scouting around. Parking rules and regulations, as well as local ordinances, change often, so a good location one month may be gone the next. Also, note that as the seasons change, some locations become less viable, such as your great spot by the beaches on the Jersey shore, which will not be so great in the fall or winter months. So come up with other plans.

Startup Costs

There's no set formula for determining how much it costs to start a business. The field is broad, and there are too many possibilities. Clearly, a cart will typically cost less than a truck, and a prepackaged product such as ice cream, candy or cans of soda are typically cheaper than making your own foods or beverages.

For your purposes, you want to make a list of each of everything you need from the truck, cart, van, kiosk, bus and retrofitted equipment to marketing and promotion costs and home office equipment.

The range of costs varies greatly. You might spend $3,000 on a food cart, $500 on your initial food bill, $400 on permits and registrations, $200 on marketing, $300 on an attorney, and $300 for the first month to park and clean the cart. Tack on $300 in other miscellaneous costs, and you're off and running for $5,000.

On the other hand, you could spend $60,000 on a retrofitted food truck, $1,000 on initial ingredients, $2,000 on permits and licenses, $2,000 for the first month of a commercial kitchen rental, $300 for the first month of parking and maintaining the truck, $1,700 on kitchen supplies, $3,000 on marketing and promotion, $2,000 on packaging, $1,000 to set up a small home office for bookkeeping, and $500 in miscellaneous costs for a grand total of just under $75,000.

Compared to a restaurant, even $75,000 is not bad for starting a business. The point is, it varies greatly. You need to do the math before spending any money so that you do not run out before you get started.

The numbers will also vary depending on your needs. Do you need an oven? A rotisserie? Coffee pots? A grill? Hot-dog roller? The costs can range dramatically. Then, of course, you need to get and pay for all of the permits for the city or town you operate in and board of health approval. There simply is no exact number, but you can be pretty sure the vehicle is your biggest investment.

Your Concept and Look

Consider your brand or the character of your vehicle or kiosk.

That means having a consistent theme from the look of the truck to the napkins, menu and other accessories to the way you present the food. You can be pink and playful, dark and mysterious, ethnic, silly, or whatever suits your fancy -- but go with the theme. The Fojol Brothers of Merlindia created an entire world of their own that has generated a lot of media attention with their food truck in Washington, D.C. Their website at fojol.com is unique and entertaining. Foodies today are into the overall ambiance and brand of their favorite mobile food vendors.

The Louisiana Territory truck in San Jose, Calif., is built around the concept of serving Louisiana-style foods, including shrimp and sausage creole over rice and Louisiana smoked sausage. The Grilled Cheese trucks in LA are big and yellow, with a yellow menu featuring the signature Cheesy Mac and Rib and an online gallery of cheesy photos. Meanwhile, Van Leeuwen Artisan Ice Cream trucks in New York City are designed to be an old-fashioned ice cream parlor on wheels with freshly made ice cream and classic sundaes.

The days of the basic food cart or truck have given way to a new brand of vehicles with concepts, or themes, that carry through from exterior design to logos, menus and of course the foods. Your concept should be a means of distinguishing you from your competition and building your niche market. You might even name some of your foods in line with your theme, such as the Yellow Submarine in Miami which also sells the Lady Madonna sandwich, named from another Beatles song, or the Big Gay Ice Cream Truck in New York, which serves the Bea Arthur. Be clever and consistent (never confusing), and you can broaden your appeal and even draw media attention.

Resources Associations

• Convenience Caterers & Food Manufacturers Association
• DC Food Truck Association
• National Association of Concessionaires
• National Restaurant Association
• National Association for the Self Employed
• National Association of Specialty Food Trade
• Southern California Mobile Food Vendors

Mobile Food Industry Information

• Midtown Lunch
• Mobile Catering Business.com
• Mobile Cuisine
• Mobile Food News

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Food Truck Business Plan Template

Written by Dave Lavinsky

Food Truck Business Plan

You’ve come to the right place to create your food truck business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their food trucks.

Food Truck Business Plan Example & Template

Below is a template to help you create each section of your food truck business plan.

Executive Summary

Business overview.

Zesty Zane’s Food Truck is a new food truck located in Portland owned by local critically acclaimed chef, Zane Benedict. The menu will consist of popular food options that consist of burgers, sandwiches, gyros, and tacos uniquely made with the creativity and uniqueness that Chef Zane can offer. Chef Zane’s eclectic style and consistency make him a favorite among Portland foodies and his food truck will garner a loyal following amongst young professionals and college students.

Zesty Zane’s Food Truck will be located in the immensely popular food truck pod known as Cartopia. Chef Zane will receive lots of exposure by being a part of this community as there are plenty of neighboring food trucks, bars, nightlife, and entertainment options nearby. With the popular location of Cartopia and an impressive Instagram social media following, Zesty Zane’s Food Truck is destined to become a local go-to dining destination for anyone craving delicious, interesting fare at an affordable price.

Products Served

The following are the products to be offered by Zesty Zane’s Food Truck:

• Sandwiches & paninis
• Assorted non-alcoholic beverages

Customer Focus

Zesty Zane’s Food Truck will target customers in Portland who live, work, or socialize near Cartopia. This area is frequented by numerous young professionals, college students, and the late-night crowd who regularly eat at food trucks. Anyone seeking trendy dining options are the target customers of Zesty Zane’s Food Truck.

Management Team

Chef Zane has worked in the culinary industry for over ten years and is accustomed to the long, demanding hours of operating a kitchen. He attended culinary school in San Francisco and returned home to Portland to be a part of the world-renowned food scene that Portland has built for itself. After working under three award-winning chefs, Chef Zane is ready to venture out on his own and start his own business as a food truck.

Chef Zane Benedict will be the food truck owner and operator of his food truck. He will operate the food truck Tuesday through Sunday from 11:00 am until 1:00 am. Chef Zane will also employ two part-time cooks to assist him during peak hours of operation.

Success Factors

The following success factors will set Zesty Zane’s Food Truck apart from the competition:

• Exceptional cuisine made fresh with locally sourced ingredients.
• An eclectic menu that is unlike any other in the Portland food scene.
• Convenient location: Zesty Zane’s Food Truck will be located in a highly-trafficked food truck pod that is frequented by college students, young professionals, and night-life regulars.
• Delicious food at a good price. Zesty Zane’s food items will be cheaper than other food truck dishes without sacrificing quality.

Financial Highlights

Zesty Zane’s Food Truck is seeking $40,000 in debt financing to open its food truck. The funding will be dedicated for the purchase of the food truck, cooking supplies and equipment, working capital, three months worth of payroll expenses and opening inventory. The breakout of the funding is below:

• Purchase of food truck – $20,000
• Food truck kitchen supplies and equipment – $10,000
• Opening inventory – $2,000
• Working capital (to include 3 months of overhead expenses) – $3,000
• Marketing (website design and management) – $5,000

The following graph outlines the pro forma financial projections for Zesty Zane’s Food Truck:

Company Overview

Who is zesty zane’s food truck.

Zesty Zane’s Food Truck is a startup food truck business located in Portland, Oregon. The menu offerings are eclectic, made-to-order, bistro-type dishes served fresh and fast in the entertainment district of Portland. The ingredients are locally-sourced from independent food growers and artisans in and around the Portland region. The dishes are incorporated with an ingenious twist to commonly known popular food menu items. The menu options are simple dishes commonly seen at food trucks, but Chef Zane adds his own spin to the typical fare – sandwiches, gyros, burgers, and tacos all made his way unlike any other food establishment.

Zesty Zane’s Food Truck is owned and operated by Zane Benedict, a local Chef classically trained in culinary school and under the most prestigious chefs in Portland. Chef Zane is known for his creativity, consistency, and quickness in the kitchen and his dishes receive multiple positive reviews in the restaurants Zane has been employed. Chef Zane specializes in fine French, Italian, and Mediterranean cuisine with a creative twist not typically found in other restaurant establishments.

Zesty Zane’s Food Truck History

After graduating from culinary school in 2008, Chef Zane Benedict worked as a sous chef in three different restaurants in Portland. All of the chefs Zane worked under were award-winning, locally-acclaimed chefs that frequently trained their apprentices to prepare dishes up to their expectation and standards.

Chef Zane learned a great deal from these chefs and garnered a reputation himself for his creativity and consistency. Now that Zane feels he has learned as much as he can from the senior chefs, he would like to venture out on his own and start his own business. Due to the large amount of capital required to open a full-scale restaurant, Chef Zane decided a food truck business was the most cost-effective option for his operation.

Since incorporation, Zesty Zane’s Food Truck has achieved the following milestones:

• Developed the food truck’s branding image, social media, and website.
• Has a soft hold on a used food truck that recently went out of business.
• Developed and finalized the menu of the dishes Chef Zane will serve.
• Obtained a food permit license to be able to prepare and sell food and drinks in Portland County.
• Obtained a sales and use tax permit for use in Portland County.

Zesty Zane’s Food Truck Products

The following are the types of menu items Zesty Zane’s Food Truck will produce:

Food Truck Industry Analysis

Food truck vendors will continue to perform well over the next five years, benefiting from consumers with deeper pockets who are able to spend on pricier gourmet food options. Revenues are expected to increase to $1.4 billion during this time period.

Food Truck industry operators are expected to continue to experience growth, as generally positive economic conditions and momentum from the gourmet food movement propel growth.

Consumers nowadays demand higher-quality food, a wider variety of styles and tastes, better presentation and, most importantly, more healthy menu options. Therefore, operators that include healthy options on their menus will be best situated for success over the next five years. Vendors that continue to offer unique food options will also be in a strong position by carving out a niche and developing a loyal customer base.

The food truck industry will also benefit from an increase in the urban population, which is expected to comprise the majority of the US population in five years. The food truck industry benefits from agglomeration because it relies on high foot traffic. Additionally, urban dwellers are also more likely to purchase meals rather than cooking at home due to their above-average incomes and limited spare time.

Customer Analysis

Demographic profile of target market.

Zesty Zane’s Food Truck will target the population of Portland that frequently dines in the entertainment district. There is a large food truck area of Portland known as Cartopia, where Chef Zane will set up his business. This area is home to numerous dining establishments, nightlife, bars, clubs, and food trucks. The target market of this area are usually young professionals and college students who have disposable income.

The precise demographics for Portland, Oregon are:

Customer Segmentation

Zesty Zane’s Food Truck will primarily target the following customer profile:

• Local residents of Portland who partake in late-night activities such as socializing with friends or bar-hopping
• Business professionals that work and reside in the Portland Cartopia area – law offices, hospitals, clinics, insurance agencies, retail, and schools
• College students who are in search of fast, cheap, and trendy eats

Competitive Analysis

Direct and indirect competitors.

Zesty Zane’s Food Truck will be competing with other food trucks in the Portland community. A profile of each competitor is below.

Potato Champion

Potato Champion is a local favorite of Portland foodies that is also located in Cartopia. Started in 2008, Potato Champion quickly established itself as a fan favorite for late night food. Potato Champion serves a limited menu of hand cut, twice fried Belgian style fries, a variety of dipping sauces, and their own version of the Canadian classic Poutine, as well as other fry related dishes. They pride themselves in using the highest quality ingredients and focus on an inventive menu that combines tastes from all over the world with one of the most popular foods found on the globe, the french fry.

Potato Champion is open for lunch, dinner, and late-night. They are available for catering and delivery through Postmates. Followers of Potato Champion are also able to purchase swag from their store that includes music, bags, pins, and hoodies.

Started by John Eads in 2009, Pyro Pizza was built out of a 8’x16’ food cart that he custom-built with a cast iron wood fire oven. Aside from wood fired pizza, John also makes his own sodas using all real ingredients and natural cane sugar. John’s belief is that good ingredients make good food. His crew makes many components in-house and sources regional flour, pepperoni, sausage, blue cheese, soda ingredients, and seasonal produce all from Portland businesses and farms. In 2015, Pyro’s expanded to a new sandwich cart, Pyro’s Wicked Wiches – a scratch-made sandwich, soup, chips and cookie food cart.

Pyro’s serves an assortment of wood fire pizzas made from scratch. Their choices are margherita, marinara, arugula and mushroom, pepperoni, quattro formaggi, fennel sausage, veggie bianca, breadsticks, salads, and sodas.

Chicken and Guns

Chicken and Guns is another local favorite among Portland foodies. Also found in Cartopia, Chicken and Guns serves up Latin American chicken, wings, tacos, salad, soup, and their “guns” are crispy seasoned potatoes. The chicken is served by the quarter, half, or whole bird. Another item they are acclaimed for is their peruvian aji sauce, habanero carrot sauce and chimichurri sauce. They have been named the best fried chicken in Portland by the PDX Eater.

Chicken and Guns is open everyday from 11:00 am to 10:00 pm for takeout and delivery options. With a large Instagram and social media following, there is always destined to be a line at the Chicken and Guns food truck.

Competitive Advantage

Zesty Zane’s Food Truck offers several advantages over its competition. Those advantages are:

Food Truck Marketing Plan

Zesty Zane’s Food Truck will offer a unique value proposition to its clientele:

• Delicious food made fresh with locally sourced ingredients using exquisite techniques.
• Located in the ultra-hip food truck area known as Cartopia.
• Great food at a great price. The menu offerings of Zesty Zane’s Food Truck will be accessible to customers of all walks of life.

Promotions Strategy

The promotions strategy for Zesty Zane’s Food Truck are as follows:

Social Media

Zesty Zane’s Food Truck’s main source of marketing will be through social media, primarily their Instagram page. Chef Zane has become adept at taking appealing photographs of his dishes. He will post pictures of his menu and add details on the location and hours of operation. His food truck account already has over 3,000 followers and he posts daily “Coming Soon” teaser photos.

Zesty Zane’s Food Truck will be parked in the immensely popular food truck hub known as Cartopia of Portland. There are dozens of food trucks located in this pod and there is always a crowd of people. Cartopia hosts bands, art shows, shopping events, and other social gatherings to enhance the entertainment vibe of the pod. By being part of Cartopia, Zesty Zane’s Food Truck will receive lots of exposure and traffic.

SEO Website Marketing

Zesty Zane’s Food Truck plans to invest funds into maintaining a strong SEO presence on search engines like Google and Bing. When a person types in “local food truck” or “top food trucks in Portland”, Zesty Zane’s Food Truck will appear in the top three choices. Zesty Zane’s will also invest in their website also to ensure that it is user friendly, always up to date, and displays professional photographs of its menu items and location.

Third Party Delivery Sites

Zesty Zane’s Food Truck will maintain a presence on sites like GrubHub, Uber Eats, Doordash, and Postmates so that people looking for local food with the option of delivery will see Zesty Zane’s listed.

The pricing of Zesty Zane’s Food Truck will be moderate and on par with other food trucks so customers feel they receive value when purchasing their menu items.

Operations Plan

The operations plan for Zesty Zane’s Food Truck is relatively simple as its overhead and cost is small. The functional roles for its employees are as follows:

Operation Functions:

• Chef Zane will run the food truck operation. He will be in charge of inventory, menu creation, food truck marketing, customer service, and bookkeeping. Chef Zane will work every day that he chooses to open the food truck. Chef Zane plans on operating the food truck Tuesday through Sunday 11:00 am to 1:00 am.
• Two part-time cooks that will alternate helping Chef Zane during the hours of operation. As business picks up, there will be two cooks at the same time assisting Chef Zane during peak hours.

Milestones:

Zesty Zane’s Food Truck aims to open in the next 3 months. The following are the milestones needed in order to obtain this goal.

4/15/202X – Purchase food truck

5/1/202X – Finalize menu

5/15/202X – Social media and advertising campaign begins

6/1/202X – Finish cleaning up the food truck and prepare it for operation

6/10/202X – Purchase food and drink inventory, stock truck, and park it at Cartopia

6/11/202X – Grand Opening of Zesty Zane’s Food Truck

Zesty Zane’s Food Truck will be owned and operated by Chef Zane Benedict.

Chef Zane Benedict, Food Truck Owner

Chef Zane Benedict is a Portland native who attended culinary school in San Francisco and returned to Portland to become a part of the world-renowned food scene Portland is uniquely known for. Zane was trained under three different chefs at fine dining establishments in downtown Portland and was awarded Best Sous Chef of Portland in 2017. Chef Zane has won two local culinary competitions, placed runner-up in a statewide competition, and participated in a cooking competition show on the Food Network.

Chef Zane has received numerous awards for his creativity and consistency of his food while being able to prepare dishes in a short amount of time. His ability to prepare food under pressure allows him the unique skill of serving numerous customers without having them undergo long wait times. This will keep customers happy and coming back for more.

Financial Plan

Key revenue & costs.

The revenue drivers for Zesty Zane’s Food Truck will come from the menu items being offered daily.

The cost drivers will be the ingredients and products needed to make the menu items (oil, bread, meat, chicken, produce, drinks) as well as the cooking materials (pots, pans, bowls, plates, utensils, etc.). Other cost drivers will be the overhead expenses of payroll for the part-time employees and propane for the food truck.

Funding Requirements and Use of Funds

• Food Truck Marketing (website design and management) – $5,000

Key Assumptions

The following table outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the business loan.

Initial Number of Customers Per Day: 50

Average Menu Item Cost: $9.00

Average Order per Customer: $15.00

Annual Cost for Maintenance of Truck: $10,000

Financial Projections

Income statement, balance sheet, cash flow statement, food truck business plan faqs, what is a food truck business plan.

A food truck business plan is a plan to start and/or grow your food truck business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your food truck business plan using our Food Truck Business Plan Template here .

What Are the Main Types of Food Truck Companies?

There are a variety of types of food trucks, each specializing in a specific type of cuisine or food item. There are food trucks that sell burgers, cookies, ice cream, tacos, pizza, sandwiches, salads and more.  

What Are the Main Sources of Revenues and Expenses for a Food Truck Business?

The primary source of revenue for food truck businesses is its food and beverage sales. 

The key expenses for a food truck business are food costs, salaries, and transportation expenses. 

How Do You Get Funding for Your Food Truck Business?

Food truck businesses are typically funded through small business loans, personal savings, crowdfunding and credit card financing.  A well-crafted food truck business plan is essential to securing funding.

What are the Steps To Start a Food Truck Business?

Starting a food truck business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Food Truck Business Plan - The first step in starting a business is to create a detailed business plan for your food truck that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your food truck business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your food truck business is in compliance with local laws.

3. Register Your Food Truck Business - Once you have chosen a legal structure, the next step is to register your food truck business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your food truck business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Food Truck Equipment & Supplies - In order to start your food truck business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your food truck business. Food truck marketing includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful food truck business:

• How to Start a Food Truck Business

Where Can I Get a Food Truck Business Plan PDF?

You can download our free food truck business plan template PDF here . This is a sample food truck business plan template you can use in PDF format.

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How to start a profitable food cart business

January 7, 2022

Agata Kaczmarek

Street food is all the rage right now, appealing to the consumer and the business owner. Today’s world sees consumers in a hurry from one place to another, who hope to grab a quick, yet delicious bite to eat. Food carts with their lower cost and delightful meals fill the gap perfectly.

To an entrepreneur, the idea of a food cart means having autonomy of owning a business without the overhead costs. In this business, there is no need for the expenses associated with owning a brick-and-mortar restaurant, with four walls that keep the company rooted to one spot. In addition, the simplicity of a food cart and the meals it offers fills the gap to potential consumers that a restaurant cannot.

Whatever the reason for wanting to start a food cart business, whether it’s the ultimate dream of an aspiring chef or an entrepreneur getting the chance at being their boss, there is the question of profitability.

Not only is profitability possible, but it can exceed expectations if you can find a prime location, build up a good customer base, and keep costs as low as possible. Food cart owners can expect to generate between $500 to $3,000 in sales each day.

Food Cart Start-Up Costs and Other Considerations

Launching a successful business is an involved process that requires research and forward-thinking. Simply purchasing the food cart is not enough to ensure the business thrives and turns a profit. A couple of questions will help start the process of crossing the t’s and dotting the I’s.

Is a food cart the right business for me?

The decision to get into the foodservice industry is made, but the next question is usually what kind of business—food truck, food cart, or restaurant. Of course, there are pros and cons to all of these types of businesses, but it comes down to personal preference and answering some questions:

• What kind of food will the business serve?
• What type of clientele is the business looking to serve?
• What food has a good profit margin?
• What food is the most popular in the area?
• What type of food business will attract the most clients?

Food carts come with some advantages, such as serving fresh food fast to their clients in an area where a restaurant or truck isn’t feasible. However, despite the quick turnaround of food at a food cart, they are hardly fast food, which makes them so desirable to people who find themselves in need of a quick meal.

How much does it cost to start a profitable food cart business?

Businesses come with a wide variety of start-up expenses, some of which continue once the business is operational. Though the capital needed to start up a profitable food cart business is much lower than others, there is a list of potential expenses.

• An equipped food cart will run anywhere from $2,000 to $5,000, depending on the size and the type of food it will serve.
• The ingredients and first food stock necessary to start the business will run anywhere between $500 and $1000 depending on the food type.
• Cities require permits to operate a business that may run upwards of $600.
• Marketing a business is a must to start, and though the expense is based on personal preference, it’s important to set aside at least $500 to start.
• Parking and cleaning the cart will run around $500 for the first month.
• Always expect miscellaneous expenses for a first-time business of around $500.

The total for starting a food cart business will run anywhere between $5,100 and $8,100. Costs to start a profitable food cart business are significantly smaller than they are for any other foodservice business such as a restaurant or food truck. Still, they must be considered in the decision.

Operating Expenses Associated with a Profitable Food Cart Business

Start-up costs are only the beginning, with other operational costs coming in along the way. Whether the food cart gets a client or not, fixed operational expenses will always come up and need to be understood to make the business a profitable one.

• Food cart insurance for liability reasons
• Permits (depending on the area the food cart operates in) such as business permits and foodservice permits
• Advertising

Fixed operational expenses cannot be avoided as an integral part of running a business. A food cart business may not have as many operational costs as a permanent business such as a restaurant, but the estimated costs can run anywhere between $1000 and $2000 a month.

Other variable expenses are also a part of running a food cart, though these are a little harder to estimate. They are also unavoidable, but necessary for a business to thrive. Some of these variable expenses are listed below.

• Supplies such as replenishing food items, condiments, and other cooking essentials.
• Depending on the food cart, the cost of running a generator (for instance, in the case of cooking hot dogs or other hot food items)
• Tires, for a movable cart
• Transportation costs
• Maintenance

These variable expenses require a little more work to project. This food truck spreadsheet has all the potential costs associated with such a business and will work with you to make the best estimates. Variable operational costs will change from month to month depending on how well the business is going and any unforeseen circumstances such as repairs and maintenance costs, but your primary variable costs are going to be directly tied to your food. According to Restaurantengine , typical COGS for a food truck or food cart range between 25-35% of sales so you’ll want to shoot to stay within that range in order to break even.

A food cart, as a movable business rather than a permanent restaurant, has to get transported to and from the desired business location, running up the costs of variable expenses. Provided business is going well, and the right food niche has been found, these costs will become inherent in doing business without posing undue stress.

Food Cart Potential profit

The spreadsheet mentioned above helps calculate a potential profit, which has a typical range of 6-9% . So, for a quick estimate from our earlier daily sales range of $500 to $3,000 that puts annual profit at a wide range of $11,000 to $98,000 which would be on the very high end and unlikely because you can’t have high traffic every day.  Though most food cart owners take on the job for the passion of selling food rather than the money, it is an important factor in staying afloat.

Potential profit will always depend on the area and how well the food niche was chosen. Before investing in the business, it’s important to answer as many questions as possible concerning the location, the necessary steps for opening the business, and the type of food that would sell best.

The beauty of a food cart business is the ability to change things around as needed. With small adjustments, it’s possible to work toward the best food niche within the location or change the location altogether.

Food Cart Financial Summary

There is money to be made from running a food cart business especially with the help of our food truck projection spreadsheet . Estimating anywhere between $5,100 and $8,100 in upfront costs, it’s entirely possible to work toward the goal that others have set such as almost half a million in a year. Though it’ll take time to get there, the projections spreadsheet will help map the plan toward those numbers. Here is a screenshot from our spreadsheet template:

Should any further questions come up concerning the use of the spreadsheet, this demo video will help walk through the entire process in order to get up to 5 years’ worth of estimates along with income statements, balance sheet, and cash flow forecast. 

BannerPhoto by Seferikalbiye from Pexels Top right Photo by Meruyert Gonullu from Pexels

About the Author

A professional writer for the past couple of years, Agata holds a passion for writing from early childhood. Specializing in writing informative articles and blogs on various topics, Agata's focus is on personal finance.

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How to Start a Food Cart Business: Detailed Steps

There is no better time than the present to start a food cart business. Street food is no longer an option people only grab when they are in a hurry or have limited options. Food carts, food bicycles, and food trucks have become popular, sought-out options for hungry customers around the globe. In the United States,  mobile food businesses represented a 1.4 billion market in 2022 and are projected to continue growing. With all the potential surrounding mobile food markets, it’s easy to see why learning how to start a food cart business has become desirable for entrepreneurs and beginners.

Let’s explore some of the things to consider when starting a food cart with wheels: 

Popular Food Cart Items

Mobile food cart offerings have come a long way over the years. Historically, a street food cart kitchen was associated with menu items like burgers, hot dogs, popcorn, doughnuts, or ice cream. While classic menu items are still popular and offer high-profit margins , there is also a significant market for other types of food like sushi, tacos, empanadas, nachos, french fries, crepes, coffee/tea, and shaved ice, among others. The popularity of food cart offerings largely depends on location, availability of ingredients, and customer type.

Food Cart Business Benefits and Requirements

Starting a food cart business has many benefits, like becoming your own boss with low startup costs, minimum experience, less risk, and location flexibility. Mobile food businesses also have the potential to bring in huge profits and business growth. Although there is unlimited potential for success, a lot of hard work and research are involved in reaching these goals. For motivated people, starting a food cart with wheels can be a true entrepreneur’s dream.

Legal Requirements for Starting Food Cart Business

Local legal requirements are one of the most important areas to research when starting a mobile food business. The principal regulations to research are health, vehicle requirements, and zoning laws. Permits and license requirements will vary depending on the type of street food cart purchased. Every city, state, or county will also have unique rules and laws that mobile food carts must follow to avoid expensive fines or closure.

Food Bike or Street Food Cart?

Both food bikes and carts are desirable options when learning how to sell street food. Deciding between purchasing a bike or a  street food cart will depend on multiple factors such as space requirements, budget, and menu options. A food bike is the most mobile, eco-friendly option, while a food cart offers more storage, equipment, and selling space.

Street Food Stand Budget

Building a budget for a food cart business is another crucial step toward success. Business budgets are updated regularly and include both one-time and recurring costs. A budget plan will include everything from the initial street food stand purchase to recurring food supplies, equipment, insurance costs, permits, payroll, etc.

Building A Food Cart Business Plan

A comprehensive business plan is one of the most vital steps in starting food cart ideas. A business plan is a roadmap to follow from the beginning and throughout. It should include information about a company, including, but not limited to, industry, customer, and competitive analysis, marketing and operations plans, legal structure type, and financial details on startup costs, projected expenses, and returns.

How To Start a Food Cart Business Marketing Plan/Strategy

Marketing is any business’s promotional voice, which means a strong marketing plan can make or break the profit margins. A food cart business marketing plan should be a part of the business plan and will include how to spread the word about the cart and the products offered through channels like word-of-mouth, social media, print, influencer marketing, and paid ads. 

Finding The Best Food Cart Equipment

The operation’s heart is the equipment that runs a street food stand. No matter the budget, a mobile food vendor should invest in the highest quality cart they can work into the budget. The initial investment in top-quality equipment will save costs over time in repairs or upgrades. It also protects the business from potential income loss from accidents, faulty gear, or functionality not up to code. There are also important factors to consider, like power availability for locations and the size of cold food storage. Newer street food cart models may offer better amenities like solar panels for power and larger storage areas. 

How to Sell Street Food 

After completing all the planning and paperwork, it’s time to find the perfect selling locations. Ideal locations will be available for vendor permits, cost-effective, and offer high traffic of potential customers. There are many ways to find the best spots, by exploring the local scene, researching online, or joining food vendor advocacy groups and social media forums.

New mobile food cart businesses need to get exposure to their brand and products as fast and cost-effective as possible. Joining the vendor list at local events like farmer’s markets, fairs, and festivals is an excellent way to get early exposure and sales. Participating in local events is a great way to get featured on more established social media pages and promotion sites. These events also allow food cart owners to meet and network with fellow street food cart vendors in the area who know their way around the local scene, which is invaluable.

Ferla Bikes Love: User Reviews that Win Hearts

“I was quite impressed with the customer service. I called in just to ask a few questions and Steven handled my call with expertise and in a friendly manner (no rush), this is a company I can trust. The support really gave me relief! The only thing I can suggest is to have extra bike accessories ready to ship. I’ll be glad to continue to with my purchases of my very own Ferla X soon. Can’t wait to launch my business.”

— Prince Awhaitey    ★★★★★

“I am a small business owner and currently own the Ferla Glacier X. We’ve had our bike for over 2 years now and just recently needed a replacement part. Steven at Ferla was efficient in helping get the part to me in time for my next event. Someone from the Ferla team went out of their way to hand deliver it to UPS and ship it over night. I appreciate the great communication and timeliness of this matter. Without their help I would’ve lost out on all of that weekends revenue.”

— Taylor Tinsley    ★★★★★

A few reviews from instagram:

          View this post on Instagram                       A post shared by BRAVO TOAST (@bravo.toast)

          View this post on Instagram                       A post shared by Amy Mucha | Chief Pop Artist at Daisy Pops (@daisypops_cakepops)

          View this post on Instagram                       A post shared by • Tizzy K’s Cereal Ice Cream • (@tizzykscerealicecream)

Benefits of Ferla Food Carts and Bikes

As discussed above, finding top-quality equipment is one of the best investments a new street food stand can make. Ferla carts are not only the most innovative, technologically advanced, sustainable options for sale on the market but are also affordable and offer a variety of benefits, including: 

• Temperature Controlled Battery-Operated Freezers
• Draft Or Ice Cream Dispensers
• Light And Flexible Solar Panel Systems 
• Pedal Assist
• Extendable Counter Spaces
• Customizable Grills
• Customizable Coffee Brew Set Ups
• All Terrain Tires
• Extensive Storage Space Options

At Ferla, we understand what mobile food businesses need and support them with our customizable food carts and bikes. No matter what street food stand is vending, Ferla will work with a company to create a unique cart that will fulfill every need for many years.  

We earn commissions if you shop through the links below.  Read more

Hot Dog Cart

Back to All Business Ideas

How to Start a Hot Dog Cart

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on April 7, 2022 Updated on March 13, 2024

Investment range

$8,000 - $21,000

Revenue potential

$55,000 - $182,000 p.a.

Time to build

1 – 3 months

Profit potential

$38,000 - $127,000 p.a.

Industry trend

Who hasn’t stopped at a street-side hot dog cart and enjoyed their purchase more than they expected? Those dogs are always tasty, whether in New York City or the middle of nowhere. With not much of an investment, you could start your own hot dog cart business and have fun meeting lots of new people while making good money. Best of all, demand is always strong because Americans love their hot dogs — they eat 20 billion of them each year! 

But before you get your grill on, you need to fire up your business knowledge. Luckily, this step-by-step guide has all the business advice and information you need to put you on your way to becoming a successful hot dog cart owner. 

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a hot dog cart has pros and cons to consider before deciding if it’s right for you.

• High Demand – Food trucks and carts, like a hot dog stand, are always popular
• Flexibility – Set up shop wherever you want
• Fun! – Meet people from all walks of life
• Weather – Working outdoors can be tough
• Licensing – You’ll need licenses and permits

Hot dog cart industry trends

Industry size and growth.

There are no specific hot dog cart statistics, but they fall under the food truck industry.

• Industry size and past growth – The US food truck industry was worth $1.2 billion in 2021 after 6.6% annual growth the previous five years.(( https://www.ibisworld.com/united-states/market-research-reports/food-trucks-industry/ ))
• Growth forecast –   The US food truck industry is expected to modestly expand over the next five years. 
• Number of businesses – In 2021, 32,456 food truck businesses were operating in the US. 
• Number of people employed – In 2021, the food truck industry employed 38,064 people.

Trends and challenges

Trends in the hot dog cart industry include:

• Gourmet hot dogs are increasingly popular, with creative toppings like garlic aioli, guacamole, bleu cheese, mango salsa, and pesto.
• Hot dogs with Japanese, Vietnamese, and Korean flavors and toppings are becoming more common. 

Challenges in the hot dog cart industry include:

• The boom in food trucks means more competition for hot dog carts.
• Rising prices for hot dogs and other food items is cutting into the profits of hot dog cart owners. 

How much does it cost to start a hot dog cart business?

Startup costs for a hot dog cart range from $8,000 to $21,000. The largest expenses are for the cart and the trailer. 

You’ll need a handful of items to successfully launch your hot dog cart business, including: 

• Hot dog cart
• Trailer to transport your cart

How much can you earn from a hot dog cart business?

Prices range from $2 to $3 for a standard hot dog to maybe $10 for a gourmet dog. You can also sell beverages and side items like chips. These calculations will assume that your average sale per person will be $5. Your profit margin after food costs should be about 70%. 

In your first year or two, you could have 30 customers a day, bringing in nearly $55,000 in annual revenue. This would mean $38,000 in profit, assuming that 70% margin. As your business gains traction, you could have 100 customers a day. With annual revenue of $182,000, you’d make a tidy profit of $127,000.

What barriers to entry are there?

There are a few barriers to entry for a hot dog cart. Your biggest challenges will be:

• The startup costs of a cart and trailer
• Competing with popular food trucks and food vendors

Related Business Ideas

How to Start a Food Truck Business

How to Start a Vending Machine Business

How to Start a Mobile Bartending Business

Step 2: hone your idea.

Now that you know what’s involved in starting a hot dog cart, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research hot dog carts in your area to examine their products, price points, and what sells best. You’re looking for a market gap to fill. For instance, maybe the local market is missing a gourmet hot dog cart or a cart that offers vegan and vegetarian dogs. 

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as adding sausages or jumbo hot dogs.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products or services

You’ll need to make a menu for your food truck. If you start a gourmet hot dog cart, you’ll need to come up with some unique recipes. You can also offer side dishes and beverages.

How much should you charge for hot dogs?

You should check prices in your area to make sure you’re competitive, but a basic hot dog sells for an average of $2.50 while a gourmet hot dog sells for $8 to $10. You should aim for a profit margin of about 70%.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be broad, so you should spread out your marketing to include TikTok, Instagram, Facebook, and LinkedIn.

Where? Choose your hot dog cart location

The location of your hot dog cart can make or break your business. Look for a spot in a high-traffic area with good foot traffic, such as a busy sidewalk, popular event venue, or commercial district. Consider accessibility and convenience, ensuring that the location is easily reachable by foot or public transportation.

Additionally, assess the competition in the area and aim to differentiate your hot dog cart by offering unique toppings, sauces, or seasonal specials. By strategically choosing the right location, you can establish a profitable and popular hot dog cart that offers delicious and memorable food options and stands out in the competitive street food industry.

Step 3: Brainstorm a Hot Dog Business Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “hot dog cart” or “gourmet hot dogs”, boosts SEO
• Name should allow for expansion, for ex: “The Rolling Wiener” over “Gourmet Dog Cart”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step Business Name Generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Hot Dog Cart Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: A concise summary highlighting the key points of the hot dog cart business plan, including its mission, goals, and potential for success.
• Business Overview: An overview of the hot dog cart business, outlining its purpose, target market, and unique selling points.
• Product and Services: Clearly defined details about the hot dog cart’s menu, pricing, and any additional services offered, emphasizing what sets it apart.
• Market Analysis: A comprehensive analysis of the target market, including demographics, trends, and potential customer needs, to justify the business’s viability.
• Competitive Analysis: An examination of competitors in the local area, evaluating strengths, weaknesses, and opportunities to position the hot dog cart effectively.
• Sales and Marketing: Strategies to promote and sell the hot dog cart’s products, encompassing advertising, promotions, and customer engagement.
• Management Team: An introduction to the individuals responsible for running the hot dog cart business, highlighting their skills and roles.
• Operations Plan: Detailed information on the day-to-day operations of the hot dog cart, covering location, equipment, supply chain, and staffing requirements.
• Financial Plan: A comprehensive overview of the hot dog cart’s financial projections, including startup costs, revenue forecasts, and break-even analysis.
• Appendix: Additional supporting documents or information that reinforces key points in the business plan, such as permits, licenses, or market research data.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to hot dog carts. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your hot dog cart will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a hot dog cart business. You might also try crowdfunding if you have an innovative concept. 

Step 8: Apply for Hot Dog Cart Business Licenses and Permits

Starting a hot dog cart business requires obtaining a number of licenses and permits from local, state, and federal governments.

Your local governments will probably require a food service license and a food handler’s permit. Check with your local governments for requirements.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your hot dog cart business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as Talech , tripleseat , or SpotOn , to manage your locations, inventory, and payments. 

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

For your hot dog cart business, the marketing strategy should focus on showcasing the quality and uniqueness of your hot dogs, the convenience and accessibility of your cart, and any special features or signature styles you offer, such as gourmet toppings, locally sourced ingredients, or unique recipes. Here are some powerful marketing strategies for your future business:

Kickstart Marketing

• Professional Branding : Your branding should convey fun, flavor, and accessibility. This includes a visually appealing cart design, a catchy name, and a memorable logo.
• Direct Outreach : Network with local businesses and community groups. Look for opportunities to set up your cart at local events, festivals, and high-traffic areas.

Digital Presence and Online Marketing

• Social Media Engagement : Utilize platforms like Instagram, Twitter, and Facebook to announce your location, share mouth-watering images of your hot dogs, and promote daily specials. Engaging with customers on these platforms can increase your visibility.
• Google My Business : Register your cart on Google My Business to appear in local searches and on Google Maps, making it easier for customers to find you.

Content Marketing and Engagement

• Food Blogging : Share blog posts or social media content about the art of hot dog preparation, the story behind your business, and your journey as a street food vendor.
• Customer Interaction and Feedback : Engage with customers on social media by responding to their feedback, running polls about new toppings or menu items, and sharing user-generated content.

Experiential and In-Person Engagements

• Participation in Local Events : Regularly participate in local events, food festivals, and markets to increase exposure and attract new customers.
• Collaborations with Local Businesses : Team up with local businesses for mutual promotion, like offering discounts to their employees or customers.

Collaborations and Community

• Partnership with Local Suppliers : Partner with local butchers or bakers for high-quality, fresh ingredients, which can be a selling point for your customers.
• Community Involvement : Engage in local community events or charity functions, offering your hot dog cart services to increase visibility and contribute to local causes.

Customer Relationship and Loyalty Programs

• Loyalty Cards or Discounts : Implement a loyalty program offering discounts or a free hot dog after a certain number of purchases.
• Special Offers for Repeat Customers : Provide special offers or discounts to repeat customers to encourage loyalty.

Promotions and Advertising

• Local Advertising : Use local newspapers, community bulletin boards, and online community groups to advertise your location and any special events or promotions.
• Themed Promotions : Create themed promotions around holidays, local events, or sports games to attract more customers.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your hot dog cart meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your hot dog cart business could be: 

• Quick, tasty lunch at an affordable price!
• Gourmet hot dogs to tempt your tastebuds
• Asian-inspired hot dogs – bite into life!

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a hot dog cart business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in food trucks for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in food carts. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a hot dog cart business include:

• Hot Dog Cart Workers – make hot dogs, customer service
• General Manager – staff management, ordering, accounting
• Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Hot Dog Cart – Start Making Money!

Does a hot dog cart business sound like fun? It can be, and it can also make good money. You just need to make an initial investment in the cart and trailer, and you’re in business. Find good locations for your cart and deliver quality service and a good product, and you’ll soon have customers lining up around the block.  

You’ve done your homework now, so go ahead and find that hot dog cart and start grilling up some profits!

• Hot Dog Cart Business FAQs

Yes, your overhead will be fairly low, so you’ll keep a large percentage of what you bring in. You’ll just need a high-traffic location, quality service and good products, and you can succeed.

It is difficult to determine which city consumes the most hot dogs, as data on hot dog consumption is not regularly tracked. However, some cities that are known for their love of hot dogs include Chicago, New York, and Los Angeles.

The largest hot dog chain in the world is likely 7-Eleven, which operates more than 60,000 convenience stores in 17 countries and sells millions of hot dogs each year. Other large hot dog chains include Sonic, Nathan’s Famous, and Wienerschnitzel.

To differentiate your hot dog cart business from competitors, you can focus on offering unique and high-quality products that stand out from standard hot dog carts. This can include using high-quality ingredients and locally sourced products, offering a variety of toppings and sauces, or creating signature menu items that reflect your brand and style. 

To ensure the safety and quality of your products, it is important to follow all local health and safety regulations for food handling, preparation, and storage. This may include obtaining any necessary permits or licenses, conducting regular inspections of your equipment and workspace, and ensuring that all food is cooked and stored at safe temperatures.

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Hot Dog Business Name
• Create a Hot Dog Cart Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Hot Dog Cart Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Hot Dog Cart - Start Making Money!

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• Sat. Apr 27th, 2024

Business Diary Philippines

Small business startup ideas and money making guide

How to Start Your Own Food Cart Business

Starting a food cart business is an ideal start up venture for young entrepreneurs because it doesn’t require a big capital. However, in order for your food cart business to be successful you need to have a good product that people will always want, a good location and you have to market it well.

But before starting a food cart business, here are 10 things you should consider according to Richard Sanz, director of the Association of Filipino Franchisers Inc. (Affi).

1. You should have a good concept. Sanz says the concept should always match the product you are selling. So, if the product is Italian, everything should be consistently Italian themed. If the product is Filipino, the concept should match.

2. Focus on the product first. “Even if the concept is good, but the product is bad, people will just avail at the start to try it out but they will not be coming back,” Sanz said. Making sure that you have a consistently good product will ensure the long term viability of the business.

3. Get a good starting location. This is one of the single most important factors of a food cart business. Make sure that the site is very visible with very high foot traffic. “Do your research, try to gauge the amount of people passing through a particular location, and also make sure that these people suit your target market for your product,” Sanz advises.

4. Come up with a good stall design to attract customers. As a marketing tool, having a good storefront is critical for any startup. “Ask yourself, how will I differentiate myself from competitors? To do this, you will probably need to hire a good designer and architect or visit other countries to get a good idea. Trade books and magazines could also help you decide what design will work for your line of business,” Sanz said.

5. Have an efficient operating system. Sanz said it is very important to install a good operating system in your business, especially if you’re a startup with limited resources. “Here is where the stall operation will revolve. This is important because in cart business, there is limited space. You should be able to store your product and prepare them with that limited space,” he said.

6. Don’t bank on credit to bankroll your business. Obtaining the needed capital for your business is a necessary step, but Sanz counsels it would be wise to use your own money, so in case the business doesn’t do well, no creditor will go after you. “The rule is “you only invest what you are prepared to lose,” he said.

7. Be a stickler for service. A food business is very dependent on a good reputation for success, maintaining a good service level, efficient systems, and clean products and workstations will go a long way in helping your longevity and increase help you build credibility.

8. Pay your suppliers, employees, and lessor (rent) on time to ensure continuity of operations. There’s nothing more annoying than having to stop operations for lack of supplies, place of business, or both. To avoid this, Sanz says entrepreneurs should set up an active payment system that is both efficient and timely. “Suppliers are the lifeblood of your company, and if they stop because of non payment, you will lose a lot money. Also, make sure to pay the right wages and give mandatory benefits to your employees, because a happy worker is a productive worker,” he said.

9. Secure all necessary permits before starting operations. Before the first day of operations, make sure to register your business with DTI, IPO, BIR, and get the necessary business permits in the barangay and municipal/city hall (mayor’s permit). Doing so will save you the hassle of processing it while your business is already under way.

10. Choose the right franchise. If you opt to get a franchise instead of starting your own business, make sure that the franchisor is a member of good standing with any (or both) of the two franchise associations in the Philippines, AFFI (Association of Filipino Franchisers, Inc) and PFA (Philippine Franchise Association). Do background checks, talk with franchisees, and consult a lawyer before signing the franchise agreement.

“People should be very careful before getting a franchise for food carts because there are already fly-by-night franchisers that are taking advantage of this to enrich themselves illegally. This is why the membership with the Affi and PFA is important because these two groups screen their members properly,” Sanz said.

Here are 4 things to know if you want to put a food cart business:

1. You can start a food cart business with a capital of P30,000 to P300,000

– With P30,000 starting capital you can have the following: a. Wooden cart with a signage – P10,000 – P12,000 b. Fryers and grillers – P10,000 c. Products (fishballs and squidballs, etc) – P10,000

2. Food carts are manageable and portable

– Food carts are easy to set up, requires low capital and is cheaper than putting up a restaurant.

3. With a simple 4 to 10 product menu, you can start up your own food cart business.

– In putting up a food cart business, the first thing to consider is the product you will be selling. It could be an exceptional product, a family recipe not known to many, an innovation or variation of an existing product, or a simple and affordable product.

– Your choice of product will also determine the equipment you need.

4. If the business does not work out in one location, you can easily move it to a new and better location.

– Best food cart locations are in malls and train stations, schools, terminals, and office areas. – Choose a location depending on your product and income. – Malls and train stations are expensive are expensive locations so make sure that you have enough budget for the space rentals.

Want to own your dream food cart business? Start today with the help of an  authorised money lender .

Click here on How to Get Business Permits and Licenses .

Sources: Sam’s Everything On Stick (453-5239-40), Christine Magno – Owner FoodBiz (09175652113) – Hanep Buhay, gmanews.tv, entrepreneur.com.ph

Related posts:

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Brown rice: a comprehensive guide to healthier eating, bistek tagalog recipe, lechon kawali recipe, 22 thoughts on “how to start your own food cart business”.

Those who wants foodcart, kiosk and in-line fabricator. please visit our fb page Builder’s Choice Concept.

how to apply end how much it cost.

what is the maximum number of employees will we hire in a food cart franchise business? Do you have a basis on this number?

hi im interested, but im 46 yo already

Having small capital should not discourage the entrepreneurial spirit of Filipinos. Food is an essential and food carts attract foot traffic everywhere. Juan just need to look for a good location and a trustworthy franchising company to partner with.

If you are interested on starting your very own Food Cart Franchise business.

We have the most affordable FOODCART FRANCHISE Business Nation Wide

?with NO Royalty Fee ?No Hidden Charges ?No Quota ?Delicious and Fresh Food ?High Quality and award winning Brand and Franchise support ?Depot available on major locations in the Philippines

If your location is in Metro Manila or nearby areas, we do orientation by schedule in our main office in Greenhills, San Juan by texting 0917-909-1116 for interested franchisee.

For OFWs and outside the Metro Manila areas, we do Skype presentation by schedule for interested franchisee.

Please Like our FB Page on this link bit.ly/foodcartforall or visit http://foodcartforall.com for more information and we will be more than happy to assist you.

I am interested,I wanna no how to apply,pls pm me, thanks..

Hello mam pwde magapply?

That was pretty interesting to know. Anyway, for those poeple who are interested, I have a food cart business for more details please visit this url : http://www.foodcartbusiness.net/

thank you for the helpful tips and I have a foodcart bussiness for more detail visit this link http://www.foodcartbusiness.net/

application process please

pano po mag apply?

Pano mag aaply dto? Add me nman or call me 09466976370

te how po to apply? im interested po

Franchise food cart business now. 52,500 lang you can start your business. Just call 093223140269/09358365517

how to apply?

I would recommend starting your online business at home, even while you have your employment. There are tons of ideas out there, which one can capitalize. Everything is actually going online. I am expecting that Philippines will also follow the trend of 1st world countries, wherein most shopping is now done via online. I do have an online e-commerce website myself and leverages through online free classified ads such as www.mybenta.com, OLX and AYOS.

Heirs Salvaña i messaged you on facebook. please check "other folders" in your inbox. 🙂

im interested..how to apply?

Junna Otayde Reyna i messaged you on facebook. please check "other folders" in your inbox. 🙂

food cart business is a good source income of many filipinos here in our country. . .it’s a good business

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How To Start A Food Cart Business Philippines

How to start a food cart business in the Philippines? This business concept is very hot in the Philippines currently. When we look at the stock market, the economy, and small businesses, we can see that many industries have started to grow, including the food industry, which is excellent news for the Philippines.

Table of Contents

How To Start A Food Cart Business In The Philippines

You can rent a food truck, buy a new one, renovate a used model, customize it for your business or choose a van, shopping cart, or trailer for the store(if you plan to open one).

You could also find more cost-effective food preparation and storage options, such as renting kitchens at a nearby restaurant, school, church, or other location with health inspections and licenses.     

At the very least, business owners will need a business license and a hospitality permit (more on this later). In addition, most lenders and investors will ask about your business plan before taking out a loan or investing in your food truck business.     

If you need additional funds, it is best to start a crowdfunding campaign asking your family and friends for support. Then, you are more likely to get a loan interest-free from them, but this is best discussed with a financial planner.    It is best to explain your financing plan, why you need the loan, and specify the amount you need.

When you plan to finance your food truck business, it is important to determine how the funds will be used, such as buying a truck, cooking equipment, employee salaries (if needed), and repaying the borrowed funds.

Once you have a business plan in place, your financial forecasts will help you obtain an idea and estimate the amount you will need to get your food trucks off the ground.     

Once you have a complete business plan in hand, you should have a good estimate of the total startup costs of your food truck, your upfront income, your financing needs, your short-term business loan, and the working capital needed to get you operational.

A free PDF business plan can be downloaded on our business plan page.

To start a food truck business in the Philippines, you need a competitive and engaging concept, a viable business plan, a well-stocked food truck, and a solid marketing strategy to build your client base.     

Some venues and companies may host food trucks for private events requiring catering, so when looking for business growth for your food cart business in the Philippines, never be afraid to think outside the box.

Should You Start A Food Cart Business In The Philippines Or A Franchise

Franchising terms when starting a food cart business in the Philippines: Most people start a food cart business via franchising . An initial startup ranges from as low as 15,000 pesos up to 200,000 pesos depending on the food cart type. But one question remains, What about the terms of service?

Some companies will have monthly fees, while other food cart businesses in the Philippines will have a royalty fee. Some even will have a term that means they will receive a small percentage on each item sold.

However, many small food cart businesses in the Philippines have flexible terms, which is excellent news. The more growth and success a franchising business has, typically, the more terms will apply.

Please take a look at 7/11 and Jollibee , these are giants in the franchising field, and they have strict terms which are non-negotiable. These terms are to protect the brand. So, keep this in mind when looking for food cart businesses in the Philippines.

Terms when starting your own food cart business in the Philippines : On the other hand, if you start your own food cart business, then the terms are more towards the suppliers. Suppliers could include the location (i.e., landlord) or suppliers of products.

As an example, let us say that we are looking to start a burger food cart business . You have found a supplier for your meat. Do they have a minimum order which is a term that’s important to know before you start the business?

What Is Your Goal When Starting A Food Truck Business In The Philippines

The next question to ask yourself when looking at food cart businesses in the Philippines is what exactly are the goals ? Thinking about the end goal will help us at the first stage of the business. For example, if you are unsure whether to franchise a food cart business or start your own food cart business, the question is, what are you trying to achieve?

Indeed, you can make a lot of money from a franchised food cart business that is franchised, and there are many benefits to this. Still, there are also limitations to franchising, which need some careful consideration.  

On the other hand, if you want your food cart business in the Philippines to get you as much money as possible as quickly as possible, you may be better off joining a franchising company. Why? Because they will have a business plan and training available so you can start almost instantly. We will be talking about the pros and cons of different food cart models below.

How Much Does It Cost To Start A Food Cart Business In The Philippines?

The cost is the next area when we look at ‘should you start a food cart business in the Philippines?’. Some franchising advertises a minimal amount of required startup capital . Others require a capital of over 100,000 pesos.

The other option that is available to you is to start your own food cart business. Starting your own food cart business would initially be the most expensive route if you were to start your own food cart business. But when looking at this business model long-term, it could be the most profitable and the most money-saving model compared to franchising.

On average, a franchising food cart business in the Philippines requires a total investment cost of 40-60K pesos and at least 100,000 pesos to open your own food cart business in the Philippines. The total cost needed depends on your sub-niche and the area

What Are The Business Requirements For Starting A Food Cart Business In The Philippines?

When you are looking to open a food cart business in the Philippines, you will need certain things as a business owner. Some of these things will have already been taken care of if you become a franchisee. However, if this is your first business, then check out our list below of basic business needs.  

• Business Plan
• Marketing Strategies
• Financial Plan
• Suitable And Profitable Location
• A Further Understanding Of Your Products
• A Market That You Can Sell Too
• A Strong Brand
• One Or More Unique Selling Points
• A Long-Term Strategy
• Emergence Capital

Above are a few of the main areas that you will need as a business owner. Of course, as I mentioned, you may not need every one of these, and some of these may be covered by the franchising company. Nevertheless, the majority of these will put you ahead of the game.

One last thing I would mention is to spend some time looking at potential threats. In most business plans, we speak about  S.W.O.T. – SWOT stands for; strengths, weaknesses, opportunities, and threats. For example, let’s say you are selling ice creams.

After six months, a new ice-cream restaurant and 7/11 opens in the same location you are in. This example shows us a potential threat to your business. This is, of course, an example for this article, but it is recommended to spend some time looking over your strengths, weaknesses, opportunities, and threats.

What Are The Legal Requirements For A Food Cart Business In The Philippines?

For more information on setting up a food cart business/food truck business in the Philippines, feel free to click on the hyperlinks below to be taken to the relevant pages. 

• Business  Permits
• Food Truck / Food Cart Registration
• Food  Service Permit
• Health Requirement
• Sales Tax Permit

How To Be Different When Starting A Food Truck Business In The Philippines?

What is U.S.P.? If you haven’t come across this term, all it means is a unique selling point. A unique selling point is something that you possess or your business possesses differently from the competition. For example, if you are selling ice creams, your U.S.P. could be a particular flavor. If you are selling milk tea, this could be a special promotion you are running.

A USP is something that keeps customers coming back. Remember the 80/20 law that we have spoken about before. The law states that 80% of your profits will come from 20% of your customers. So, in other words, when we are setting up a food cart business in the Philippines, we want customers to return and make more orders. Therefore, it’s essential to have a U.S.P.

What should your U.S.P. be? This is your choice. If this is your own food cart business, then you have complete freedom. If you are franchising a food cart business, then you may have specific limitations. However, the company that you are with may have already established a U.S.P. in the market. This will be an advantage in the early days.

What Is The Current Food Cart Market In The Philippines

As we all know, The Philippines differs dramatically from island to island and city to city. In order words, what products are popular in one area may not be as popular in another. This is always a hard thing to scale when looking at a business. Therefore, market research is always critical at the initial business stage.

When we look at the current market, what trends are you starting to see? For instance, a few years ago, milk tea first became popular across Asia, China, the Philippines, Thailand, Taiwan, and many other countries. Do you feel the current market is saturated with this business idea, or do you still feel a market gap?

One of the biggest mistakes I’ve seen businesses make time and again is copying another business that’s been succeeding.

Even filipinowealth.com has seen countless blogs set up in recent times that have copied certain parts of our article and added it to their website as their own. The problem that this causes is there is no originality, and there is nothing unique. Filipino Wealth

This may sustain a business for a little bit of time. But, ultimately, businesses that copy other businesses will fail, so never be afraid to be different and be a leader in your industry.

How To Start A Franchising Food Cart Business ?

Starting a food-cut business in the Philippines is very easy. Suppose you have some capital and fundamental knowledge, that is. Then, if you are looking to franchise, all you need to do is contact a franchising company. They would then register your details and invite you down for an information session. Most often, you will find this business advertised on Facebook.

How To Start A Solo Food Cart Business ?

On the other hand, if you are looking to start your own food cart business, then there are certain things you will need to do. The most obvious is registering the company and gaining any permits or licenses required for the products you are selling.

Once you have done this, the rest of the business is something many people enjoy doing. You can start building your plans, finding a location, buying your machinery, and of course, the actual food cart itself.

Tips For Starting A Food Cart Business In The Philippines?

What guide would this be without some tips for a food cart business in the Philippines!

Right Location: The right location can make or break your business. Try to look at potential businesses nearby. For instance, is there a call center or corporation nearby where the staff could benefit from your selling product?

Right Network: Are you able to network with different companies or people? Perhaps you can agree with a company to offer its workers 20% off all drinks on Saturday and Sunday.

Right Products: There are millions of products you could sell! Okay, probably not millions, but you get the point. When you are out and about and see a food cart business, what do you want? In other words, what can you not walk past without buying?

Right Team : You may decide to run this business on your own, or you may decide to hire someone to run this for you. Whatever you choose, make sure you have the right team behind you. This is critical when building the foundations of your business.

Right Plan : At the start of any business, a plan or a strategy will be needed. Unfortunately, some businesses are ‘winged,’ which means they start without any plan. This is not recommended for a food cart business in the Philippines.

Right Vision : Finally, you must have the right vision for your company. Where is your company going? Do you want to make food so good that others will want to franchise your company?

I wouldn’t suggest spending days looking at each of these points but at least a few hours with a pen and paper. Of course, you can always change your plan and strategy as you grow, but having a necessary foundation will help you in the early days of business.

Food Truck Business Philippines: Summary & TakeAway

Is a food cart business a good idea? If you can find the right market, customer, and product, then yes, a food cart business in the Philippines can be very profitable.

It is recommended you thoroughly research this business and assess your strengths, weaknesses, opportunities, and threats.

What I’ve always noticed around the Philippines is that Word of mouth is powerful. In other words, you will have to bring your A-game when serving customers. It’s effortless to set up a business without the correct requirements.

However, this will always catch up to you, so it is best to obtain the correct permits before opening a business.

If you have the capital, a healthy entrepreneur mindset, and a robust product while teaming this together with a solid business plan, my opinion would be to start your own food cart business. Why? Because you will have much more control over the growth of your business, and it’s your brand. You will also have the opportunity to franchise your business in the future too.

If you do not have the resources to fund your own food cart business in the Philippines, another route could be to franchise. When you franchise another company, you are given certain benefits that are very helpful in the early stages of business.

For example, an established food cart business always has its own U.S.P., Idea customer, suppliers, etc. This will help your business run smoother in the early days.

Many believe starting a food cart business in the Philippines is a great way to earn quick money. But, unfortunately, even though this can be true, it’s not always easy.

Food Cart Truck Tips

• It’s often wise to slightly overestimate expenses and underestimate profits if you are not 100% of the outcome and financial matter of business in the early days
• Always investigate the terms and conditions of food cart suppliers in the Philippines. Price, rules, and regulations can differ from business to business
• Start small and build rather than starting big and reducing. It is always possible to add more and grow your business as you scale

Warnings Starting Food Business

• Choose a suitable location. Accessibility is a big factor for the customer. If your business is in the wrong location, then your business could suffer
• Put the customers first. The biggest mistake is forgetting to put your customer first. What do they want, and what would they pay extra money for?
• Don’t open a food cart business in the Philippines without comprehensive research. Research can tell you all the demand, supply, and whether your business idea is a good idea or not

Future Reading & References

• Food carts for sale https://www.carousell.ph/food-cart-for-sale/q/?searchId=DTNi6Z
• Basic business registration https://www.foodcartlink.com/business-registration-steps/
• Food business law https://resourcehub.bakermckenzie.com/en/resources/asia-pacific-food-law-guide/asia-pacific/philippines/topics/food-product-and-safety-regulation#:~:text=The%20Food%20Safety%20Act%20of,or%20reduce%20risks%20to%20consumers
• Philippines food safety act https://www.officialgazette.gov.ph/2015/02/20/implementing-rules-and-regulations-of-republic-act-no-10611/

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