How to Start a Coffee Truck

How to Start a Coffee Truck
7 min read

The rise of coffee trucks and trailers is astounding! What was once considered to be a risk is now an opportunity for a business investment. If you are interested in how to open a coffee truck or coffee trailer, lets give you some tips to get you trucking! 

How Much Does It Cost to Start a Coffee Truck? 

The average cost to open a coffee truck is between $20,000-$50,000.  Coffee trailers can be started for less, ranging from $10,000-$50,000. Espresso carts cost even less, ranging from $2,000-$5,000. The cost of a coffee truck, trailer or cart is greatly dependent on the equipment installed. 

Coffee Truck Start Up Cost 

The truck or trailer $2,000-$25,000

Health Inspection, Fire Inspection and Insurance $700-$7000

Professional Fees, Consultant Fees and Legal Fees $500-$3000

Truck Logo, Paint or Wrap $1000-$5000

Point of Sale System $100-$1,500

Advertising, Facebook Ads and Website $500-$2,000

Initial Supplies $500-$1,500

Equipment $2,000-$20,000

Recurring Coffee Truck Cost

Fuel $5-10 dollars per day

Insurance- Monthly and Yearly

Permits- Yearly

Staff Payroll

Commissary Kitchen Rent

Website Fees

Advertising Fees

Cost of Goods Sold

How to Open a Coffee Truck

To open a coffee truck, you will need to do plenty of research. The main focus of your research should be on start up cost, competition, cost of goods (profit percentage or net profit) and profit prediction. 

1. Research Your Competition

2. Choose a Coffee Concept that stands out

3. Know your Customer

4. Write a Coffee Truck Business Plan

5. Obtain Funding 

6. Obtain the Proper Licenses and Permits

7. Purchase a Coffee Truck or Coffee Trailer

8. Purchase Equipment and Supplies

9. Choose a POS System 

10. Build a Website and Obtain Social Media Accounts

Research your Competition

Having a good understanding of your market can help you create a profitable coffee truck business. It's important to understand just because there is another coffee truck, or two, in your city, doesn't mean you cannot be successful. When I started my coffee truck, there were 4 others on the scene already. Competition can often be a good sign of a healthy market. However, there is such a thing as an oversaturated market. A coffee truck on every street corner will make it hard to enter you market. Seek the Goldilocks zone: Somewhere in the middle.

Choose a Coffee Truck Concept

While it is important to meet the demands of the market, it is also important to share your own passion through your business. Find a concept that resonates with you and is able to project your unique style. Your name, logo and business colors should reflect this. 

Know Your Customer

Are you doing large festivals and fairs? Are you catering intimate weddings or business events? Your business plan should reflect you ideal customer. Take the time to write out who your target demographic is. 

Write A Coffee Truck Business Plan

Whether you are attempting to get financing or if you just need to get your thoughts out on paper, a business plan is a great way to work through your concepts. If you need help on writing a business plan for a coffee truck, see The Ultimate Coffee Truck Business Plan. 

Get Funding for Your Coffee Truck

If you are obtaining funding from the SBA or a bank, you will definitely need a business plan. Other ways to obtain funding: 

Community Sponsors

SBA Micro Loans

Rollover of a Business Start up from a retirement account

Business Credit Card

Angel Investors

Equipment Loans

Home Refinancing

Get Permits and Licenses for your Coffee Truck

Permits and licenses vary from state to state but often coffee trucks will need to obtain a health permit, a fire permit and a sellers permit. They will also need to open a business license and register for a tax identification number (EIN). Some municipalities require a coffee truck to have a food handler certificate and/or a food manager certificate. 

Although not a permit, you may also be required to have a commissary kitchen, which is a refuel depot for food and coffee trucks. 

Buy A Coffee Truck or Trailer

The coffee trailer or truck will be the largest purchase of your investment. Here are some considerations when deciding what to purchase. See Blog post on How to Pick a Truck or Trailer.

1. Coffee Truck vs Trailer vs Van vs Cart

2. Purchasing used or new

3. Choosing a reputable builder of coffee trucks

4. Deciding customizations of your coffee truck

Purchasing Your Food Truck Equipment and Supplies

Once you have the coffee truck or trailer picked out, your next large purchase will be your equipment and supplies. 

 For a full list of equipment needed for a coffee truck see our Free Starter Guide which includes sample floor plan, equipment list and cold brew recipes: Free Starter Guide.

To See Equipment I use, visit my Resource Page. 

Coffee Equipment: 

Espresso Machine

Espresso Grinder

Coffee Grinder 

Commercial Coffee Maker

Hot Water Urn

Water Filter

Water Pump

Bartender Rinser

Blender

Cooking Equipment

Panini Grill

Toaster

Microwave

Toaster Oven

Food Prep Equipment

Work Tables

Espresso Tamper

Steam Pitchers

Long Spoons

Thermometers

Cutting Boards

Serving Equipment

To-Go Coffee Cups

To-Go Coffee Lids

Coffee Sleeves

Coffee Totes

Coffee Trays

Creamer Dispensers

Refrigeration Equipment

Under-counter Refrigeration

Janitorial Equipment

Sinks

Triple Sink

Handwashing Sink

Sponges

Sanitization Chemicals

Test Strips

Brooms and Mops

Rags

Choose A POS System

Not everyone carries cash. It's important to chose a POS system that will work for you. Some POS systems will require internet, while other may not. Some POS systems will track inventory, others won't. Some POS systems allow for separate employee log ins, others just have one account. 

Square

Shopkeep

Clover

Lightspeed 

Build a Website, Obtain Social Media Accounts, Other Marketing 

Advertising and marketing are going to be key components to a profitable coffee truck. Here are some methods to help increase your awareness. 

Start a website Shopify, Wix, Square and Squarespace make it easy and intuitive to build your own.

Design an eye-catching menu board Pictures are worth a thousand words.

Create Social Media Accounts Customers will need to be able to find you. Each customer uses a different media account on a daily basis. Start the accounts you can stay consistent with. 

Merchandise with your Logo Coffee cups, coffee t-shirts and stickers are all good ways to get your brand out. 

Advantages and Challenges of Opening a Coffee Truck

Coffee Trucks certainly have their ups and downs. Here are some of the pros and cons...

Pros

Mobility Not making enough? Try another place. See an opportunity? Seize it.

Flexibility Adjust your schedule. Adjust your hours. Adjust your location. Adjust your menu. How you run your business is in the palm of your hands. 

Tax Deductions Home office space, the truck itself, rental fees. 

Responsiveness Need more money? Just pull the coffee truck out. 

Cons

Competition Markets can become oversaturated, making it hard to make a living. 

Long Hours Maintenance, Sourcing, Cleaning all take time and effort.

Zoning Laws Some municipalities will limit how food trucks operate.

Final Thoughts

Opening a coffee truck can have as much rewards as setbacks. The key to creating a successful coffee truck is research and passion. 

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Matthew Erickson 2
Joined: 10 months ago
Comments (1)
  1. Anna Key

    I agree, a coffee truck is a good business solution. And I can share with you a website with parts for mobile coffee carts, which will help you quickly and easily buy everything you need to start a business. Such a business can be most profitable if you think about various snacks for coffee in the form of cookies and croissants. Overall, I wish you good luck in starting a coffee truck business.

    4 months ago ·
    0
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