Why Food Trucks Are Becoming More Popular Than Restaurants For Business Startups - Lioness Magazine
Business Development

Why Food Trucks Are Becoming More Popular Than Restaurants For Business Startups

Whether you’re traveling or exploring your local city, food trucks are a great way to taste some of the best street food around the world. With thousands of people flocking to street food markets and festivals, comparethemarket.com takes a look into the business behind food trucks and some of the costs involved in running a food truck compared to a restaurant.

Flavors From Around The World

If you’re a foodie, you’ll know that street food is a popular choice for many across the world. With some food trucks even getting their own Michelin star, it seems no Instagram page isn’t complete without a tasty snapshot of these delicious delights – but how much does it take to run your own food truck?

Food Trucks Versus Restaurants: The Real Cost

To serve food on the go, you’re going to need a van and that costs around $17,600. That’s almost $140,000 less than the cost of a restaurant in the U.S.

Since you eliminate the need for seating and layout that’s needed in a restaurant, you’ll save around $14,080. You can inject that spare cash into other upfront costs such as stock, van insurance or a point of sale system.

Overall, you can expect to spend around $20,600 on upfront costs for a food truck. If you decide to open a restaurant — assuming that you won’t be buying the building and will instead be renting — you can expect around $67,318 in upfront costs. The great thing about owning a van is that you can customize it however you like. Unlike many business owners who rent restaurant spaces and cannot decorate or customize as freely.

Starting the business may seem like the hardest part, but sustaining the business is definitely one of the most challenging aspects of the journey. Public liability insurance costs around $673 annually, food truck parking costs approximately $625 per month, and with the constant need to be on the move, fuel can cost around $500 per month.

Recurring costs will be around $12,921 per month for a food truck, with recurring costs for a restaurant coming in slightly higher at $13,292. However, vastly cheaper upfront costs still make a food truck the cheaper choice for startups.

Interestingly, along with upfront costs, most of your money will be spent on licensing your business. This includes business registration, permits, food service license and a liquor license if you’re planning to serve alcohol. For a restaurant, this will set you back around $8,662, whilst a food truck will cost you $9,049 because you’ll need to cover a few extra things such as food truck application and vehicle registration.

The Total Cost Of A Food Truct Versus A Restaurant

This includes upfront costs, recurring costs for the first month and licensing:

Cost of a Food Truck OverallCost of a Restaurant Overall
$42,572$89,272

For more information on the cost of running a food truck or to see the full analysis, please visit comparethemarket.com.

comparethemarket.com was launched in 2006 and has grown rapidly over the past twelve years to become one of the UK’s leading price comparison websites.