WIXLIB

Food truck 101

Economics of food trucksFood truck foodFood truck operations

ECONOMICS: BASICSLowHighnotesCost of truck 50,000 125,000Much lower than restaurantSmallwares etc. 1,200 6,000Similar to restaurantLicense fees etc. 1,500 1,500Slightly higher than restaurantInsurance pre-pay 2,500 2,500Higher than restaurantFuel 250 250Higher than restaurantTraining 800 800Similar to restaurantRent pre-pay 7,500 7,500Lower than restaurantOther 7500 25,000Legal fees, logo work, etc.Total 71,250 168,550Much lower than restaurant

ECONOMICS: BASICS % salesnotes5 cust /10 minutes @5.50/ custsales 100,000Cost of food 38,00038%20–30% higher than restaurantCost of packaging 6,0006%Slightly higher than restaurantGross profit 56,00061%Labor 40,00040%10–30% higher than restaurantUtilities 8,0008%50–80% higher than restaurantInsurance 5,0005%30–50% higher than restaurantMaintenance 3,0003%Slightly higher than restaurantRent 26,0008%Can be lower than restaurantOther 3,0002%Administrative stuff, can be higherEBITDA- 29,000Red is not a good color on these charts

ECONOMICS: SALES ESTIMATEHow many people can you feed every10 minutes?- What is your max serve speed?- How popular are your offerings?Example: 1 customer/ 2 minutes 5customers/ 10 minutes 30 customersevery hour

ECONOMICS: BASICSAnnual sales estimates:Kogi 380,000/ year/ truckMomogoose MIT 220,000/ yearSpeeds 100,000/ yearCA taco truck 56,000/ yearGrilled Cheese Nation 40,000/ yearThese are based on Ayr’s estimates. For Kogi I read an article where they gave their annual sales number andnumber of trucks. This number might be high if not all of those trucks were on the road all year. For Momogoosethey state on their website 30,000 meals served since October, estimates are based on that number. For Speedsestimate based on customer counts. CA taco truck average of a half dozen conversations with operators. ForGrilled Cheese Nation estimate based customer counts and assumed weekend catering fees.

ECONOMICS: SALES ESTIMATE PHOTO: Kogi 35 minutes for 22 cust, ave ticket 12.00

ECONOMICS: SALES ESTIMATE PHOTO: Kogi Est. 150 meals/ day (30,000 since Oct.)

ECONOMICS: SALES ESTIMATE1 customer waiting, 2 tourists, 1pm Thur

ECONOMICS: SALES ESTIMATEHow much can you charge?100 meals @ 5.50/ meal 55030 meals @ 12.00/ meal 270Higher prices can make profitabilityeasier as they better cover some costs(e.g., food, labor), but food trucks mayhave difficulty getting manycustomers to pay higher prices.

ECONOMICS: HOW THINGS CANGO WELL- Very low food costs and labor (e.g.,taco truck on W. coast)- High utilization and high prices(e.g., Sweets truck NYC)- Owner/operator, doesn’t need tomake much money (long hours, but lowlabor costs, e.g. falafel cart)- Operate in city that doesn’trequire much (e.g., no GPS, lowlicense fees, low commissary fees, lowercost of truck, etc.)

FOOD: OPPORTUNITY OF TRUCKSBlue Bottle SF

Gordough Austin, TX

OPERATIONS: BASIC SINGLESITE FLOWLoad truck1.5 hrDrive to site45 minSet-up for service1 hrService3 hrTake-down45 minDrive to commissary30 minPut food away1 hrClean truck2.5 hrClean dishes2.5 hr(Prep food)4 hrTotal17 hr

Food truck 101. Economics of food trucks Food truck food Food truck operations. ECONOMICS: BASICS Low High notes Cost of truck 50,000 125,000 Much lower than restaurant Smallware