How to Start a Coffee Cart Business

How to Start a Coffee Cart Business

Are you thinking about starting a coffee cart on wheels?

A small coffee cart can be an excellent low-cost coffee business opportunity for some coffee entrepreneurs. Highly mobile and versatile, a pushcart coffee business lowers various entry barriers compared to a traditional coffee shop.

Staring a coffee cart on wheels allows you to dip your toes in retail coffee, develop your coffee brand, and establish relationships with vendors and wholesale coffee roasters – all with less risk and money.

In today's post, we'll talk about a few essential elements of this mobile coffee concept that you'll want to consider as you start planning your coffee business.

Additionally, we will focus on the coffee cart unit itself. Finally, we will end the article with a few critical coffee business steps.

How to Start a Coffee Cart Business

Highly Mobile, Lower Startup Cost Makes This Concept Appealing

When it comes to deciding on your coffee-cart-on-wheels concept, the sky's the limit.

There are various really excellent coffee cart options you can choose from. Each offers a variety of benefits, cost considerations, and styles. However, because of the size and general restrictions of the concept, it's important to note that each will have its own needs, limitations, and costs.

Before you get started, I would highly recommend that you first understand all of the code regulations of your county's health department, building department, and other city agencies. In the United States, each county might have slightly different requirements, impacting your coffee cart design and business planning.

Let's discuss a few options of them below:

Various Coffee Cart Business Concepts

Coffee-Bike or Coffee Trike:

Having a coffee cart retrofitted on a bike or trike is common. This coffee cart concept allows for extreme mobility and various location options. Usually, a coffee bike or coffee trike can offer extreme maneuverability on two, three, or even four wheels.

Coffee Pull Cart or Coffee Pushcart

A coffee pull cart and coffee pushcart are just as mobile as a coffee cart but often provide a larger space to work with. Typically, this cart type is done by pulling or pushing the cart into place. Depending on the design, they may offer more carrying capacity – for water, inventory, and brewing devices.

Typically, a brewing device is placed on the top or inside the cart, along with a water supply.

Portable Coffee Kiosk

The name “portable coffee kiosk” can be misleading. While many coffee kiosks can be moved, they are often not very portable. They can certainly be moved from location to location, but typically, they are big enough to warrant a semi-permanent placement. Perhaps they can be situated in a city park during the summer or in an outdoor mall during Christmas.

Getting Started With Your Coffee Cart Business

Settle on your coffee cart concept.

There are a lot of different types of coffee carts out there. Some have wheels to push, while others are on trikes. Decide on what makes sense for you and your ambitions.

Determine your coffee cart serving location.

Having a general idea of where you will be serving coffee is essential. This will help you develop your entire plan of action.

A coffee cart differs from starting a coffee truck or coffee shop because your location matters more than your menu. Therefore, it should be decided before most other decisions.

While no location is guaranteed, understand who your target customer is and what they will be seeking. For example, will they be customers at a business or workers in an office building who will visit you during your break?

Develop your coffee cart menu.

Develop a sensible coffee menu around your customers after understanding where you will be and who you plan to serve. A coffee cart can often be limited with what you serve, yet you can satisfy most customers by understanding what they want and listening to feedback.

If you aren’t sure what your menu items will be, I recommend starting with just the basics: Espresso, lattes, teas, and light snacks. As you get more information, you can slowly add to your menu in a manner that feels right.

Choose your coffee cart equipment.

Now that you know your coffee customer and your menu, you can acquire the necessary coffee equipment to make it work. You may get a commercial espresso machine or manually serve only pour-overs and cold brew.

Determine your budget and secure your funding.

After you settle on your concept, menu, and the coffee equipment you’ll need, you’ll want to determine your cost and secure your funding. We encourage you to consider your budget’s funding mix before spending money.

Create a coffee cart brand.

Having a coffee brand will help your coffee cart business stand out, appeal to new locations, and generate more sales. Your brand can launch you into new income streams with merchandise, coffee bag purchases, and online sales.

Create a marketing plan.

Marketing should be a big part of your promotional efforts. This can include branded signage on your cart, A-frame signs, and menu displays. Having social media accounts that allow your loyal customers to follow you will be essential to establish early.

Summary. All these steps take thoughtfulness and a methodical plan of action. I recommend getting this all down in a coffee shop business plan.

How to Start a Coffee Cart Business

Starting Your Coffee Pull Cart Business

Considerations for Your Coffee Cart

Whichever coffee cart you decide to go with, there are some considerations that you'll need to think through. Let me outline some of the main elements to consider when choosing your coffee cart.

Your Coffee Cart Menu

Your coffee cart menu will need to be highly focused. Every inch of your cart will likely be used. Therefore, your menu will need to be both limited and highly efficient and generate sales and profits.

Of course, you'll serve coffee, but you will need to decide what kind of coffee you'll do and how you'll serve it. 

While you may be focused on beverages, will you also offer food or snacks? If so, how will you transport them?

Power

Power will be key in how you intend to brew your coffee. Will you offer cold brew, nitro coffee, or hot coffee? Depending on your menu, your power requirements will need to be ironed out. You may need a small generator or be connected to an outlet to shore up power.

Water

Water is essential for your coffee business. However, at eight pounds a gallon, water is also heavy. Carrying or biking with 5 gallons of water can be a chore, if not highly impractical.

Nevertheless, whether it's drip coffee or nitro coffee, you'll need to plan on carrying sufficient weight to make enough sales to be profitable. Additionally, depending on your menu, you must consider any health department regulations on keeping your hands and utensils washed and sanitized.

License and Permitting

Before you decide to move forward with your coffee cart concept, consider reading the requirements in your specific county. Typically, every county has health regulations you'll need to follow.

Before you are legally allowed to serve coffee, you may need to pass the inspection of your local health department and buildings department. Their approval and issuance of permits and licenses and obtaining a state and local business license will satisfy most – if not all – of your area's regulations. 

Commercial Commissary

Because your business is on wheels, you may need to satisfy having a commercial commissary. In addition, a commissary is often used to prepare, cook, and store food for many mobile businesses.

In the case of your coffee cart on wheels, you may need to have a place to clean your utensils and legally dispose of any gray water.

If you live in medium-to-large cities with coffee trucks and food trucks, you will probably have various commissary choices. I want to encourage you to shop around for the one that offers you the amenities you need, the ability to dispose of gray water and storage space – all at a reasonable cost. Of course, you will want your commissary to be located conveniently near your home and your business areas.

Support Vehicle

While a coffee cart is very mobile, it may also have to be loaded onto a truck, trailer, or van to be moved to various places throughout the city. The “support vehicle” may also be used to store additional supplies, such as coffee, water, filters, cups, and other items.

Coffee Cart Business on Wheels

 Finding the perfect location

The inherent benefit of having a coffee cart on wheels – is by being extremely mobile, you can pretty much do business anywhere you are allowed to serve coffee.

You will want to consider that you will need to be around people who are interested in buying coffee “on the go.”

Additionally, you don't want too much competition around. For example, you don't want to set up at a close distance from a competitor unless there are many potential customers.

Remember that you may want to be in several locations throughout the week and day. For example, you might want to sell coffee at the beach on Saturdays, a park on Sundays, and bus stops on the weekdays.

Getting Permission (Licenses, Permits, and Use Permits)

Even though your coffee business is small and mobile, you will still need the necessary coffee business licenses and permits before selling your first coffee.

Specifically, you will need:

• City business license
• A health department permit
• A buildings department permit (may depend on whether your equipment is gas or electric-powered)

Weather Considerations

Unlike other coffee shop concepts, the weather will significantly impact your coffee cart on wheels. The fluctuations between extreme heat and cold will limit your customer base and decrease the desirability of your products.

If you live in a rainy climate like the Northwest part of the US – or a chilly environment like the mid-west, you may not find many people at the local park in January to sell your coffee.

Therefore, consider the seasonality of your business concept. This might limit your annual sales estimates.

Of course, you may be able to find an indoor mall or indoor market to set up a coffee business. Or you might find a park or business location with a large awning or overhanging structure during particular times of the year.

Further Reading: How to Start a Coffee Shop Successfully

How to Start a Coffee Cart Business on Wheels

Getting Started

Now that we've reviewed some general options for setting up a coffee cart on wheels, you'll want to also move forward with other essential parts of your business.

It might also be helpful to review some of our other coffee business posts located in our coffee business blog. Specifically, consider checking out our article, Requirements to Start a Coffee Shop and Steps to Starting a Coffee Shop Successfully.

Additional Reading: Low-Cost Coffee Shop Ideas and Concepts

Write Your Coffee Cart Business Plan

Your coffee business may be small, less risky, and less spendy than a traditional brick-and-mortar coffee shop, but you'll still want to do the necessary planning beforehand.

This is where writing your business plan comes in. There are plenty of benefits for writing your coffee business plan, which we have outlined in our article, How to Write a Coffee Shop Business Plan.

Our Complete Coffee Shop Startups Kit comes with an editable coffee shop business plan template.

Develop Your Budget

If you want to start a low-cost coffee business, you'll want to keep it that way by developing your budget early.

Consider all of the available costs you'll be making – including your actual bike, your coffee equipment, branding, and other costs such as marketing, t-shirts, website development, etc.

Create a budget and determine exactly how much money you'll need to get started. Then, include your budget with your business plan.

Choose Your Coffee Cart Equipment

Your coffee business will require some equipment and brewing devices. Depending on your concept, you might consider serving cold brew or hot coffee. Each of these requires different setups, power requirements, and health department hoops you'll need to go through. For more of an in-depth look, please read our article, How to Choose Your Coffee Shop Equipment.

Setup Your Coffee Cart Business Structure

Setting up a coffee business structure, such as an LLC, is also advisable. Doing so may make your business easier to execute on various fronts, including possibly shielding your personal assets from issues originating from your company. For more information, please read our article, Benefits of Starting a Coffee Shop LLC.

How to Start a Coffee Cart on Wheels

Additional Questions:

Where do I purchase a coffee truck on wheels?

Some specific manufacturers make and sell coffee carts on wheels throughout the United States. These manufacturers vary in style, concept, and price. In addition, some ice-cream carts, food truck manufacturers, or other mobile food vending companies may also make coffee pushcarts.

You might also be able to find a used pushcart or bike and refurbish it to fit your concept.

Finally, you may be able to make your own coffee pushcart. Just be sure you follow the regulations and codes of your local jurisdiction.

Should I start a mobile coffee truck instead?

A mobile coffee truck is another excellent way to get into the retail coffee business. A coffee truck can provide the mobility of a coffee cart but offer an easy way to transport your entire coffee business wherever you choose to serve coffee.

For an in-depth look at starting a coffee truck, please read our article, How to Start a Coffee Truck Business.

Would it be more profitable to set up a drive-thru coffee stand?

A drive-thru coffee stand is a semi-permanent retail coffee operation with most of the perks and benefits of a full-fledge coffee shop. A drive-thru coffee shop is a significantly more costly retail operation when compared to a coffee bike or pushcart. However, it also has greater earning potential.

Please read our post, How to Start a Drive-Thru Coffee Stand, for more information.

Are You Ready To Get Started?

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Coffee Shop Startups

Based in Seattle, Washington, USA, Coffee Shop Startups is dedicated to providing you with the most relevant information on how to start a coffee shop business successfully. Over the last 11 years, we've helped thousands of aspiring coffee business owners worldwide. We harness the experience, wisdom, and knowledge of many successful coffee shop owners to help you increase your chances of success and profits. We support business owners who want to start a coffee business by providing them with valuable information on starting their coffee business successfully.