How to Start a Coffee Trailer Successfully

How to Start a Coffee Trailer Business

How to Start a Coffee Trailer Successfully

Starting a coffee trailer is a fun and exciting way to enter the retail coffee business. If you like coffee but can't find the capital required to start a full-blown coffee shop, then a coffee trailer might be the right fit.

A coffee trailer is a low-cost coffee shop concept that can generate healthy profits while providing you with some flexibility in your location, schedule, and service.

Indeed, having a small mobile coffee business like a coffee trailer costs less than a traditional brick-and-mortar coffee shop or a drive-thru coffee stand. However, though it might cost, it doesn't mean it's not profitable!

In today's article, we will talk about how to start a coffee trailer business successfully.

Coffee Trailer Definition: A coffee trailer is defined as a motorless pull vehicle that can store cargo. It can be outfitted for several different functions, including sleeping quarters, storage, and business functions. The business function includes a transportable office, place of business, and food service.

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How to Start a Coffee Trailer Successfully

Choose Your Coffee Trailer Concept

Your coffee trailer business is a concept in itself. However, you want to dive deeper and understand if your coffee trailer will focus on some unique idea that will excite your clients. This can include an exceptionally unique product, drink, or dish you serve. This may be a particular location you operate at. Or you may choose to serve coffee from a specific region and decorate your coffee trailer appropriately. Or you may have a focus on health and eco-friendliness and serve only organic in reusable coffee cups.

Answer these questions:

• What kind of coffee business do you want to have?
• Do you want to sell coffee and food at a local park?
• Would you like to serve espresso beverages at private events, weddings, or company meetings?
• What kind of products do you want to serve?

Determine your concept, and then start your research, planning, and implementing your action plan.

Your Pull Vehicle

Unlike a coffee truck, a coffee trailer needs to be pulled by another larger vehicle. Therefore, you will need to make sure that you budget for the appropriate car, truck, or van.

With your coffee equipment, water, inventory, and plumbing, your coffee trailer can end up pretty heavy.

My recommendation for your pull vehicle: Nothing less than a 6-cylinder vehicle with a tow package should be considered. I prefer eight cylinders myself for those steep passes, hilly cities, and general safety.

Further Reading: How to Start a Coffee Shop Successfully

Develop Your Coffee Menu

Your coffee trailer menu will significantly affect your trailer's “build-out.” For example, your coffee menu will define your need to install various sinks, fridges, ice-makers, counter space, storage, plumbing, electrical outlets, and power. Additionally, your chosen menu will significantly influence who you serve, your price points, your messaging, and your marketing.

Settle on what you want to serve – or, most importantly, what your future customers want. Over time, your menu will change, so consider the growth you need – space, equipment, and branding to adapt to changing market conditions.

Your menu is what is going to make you your money. Therefore, it has to resonate with your customers, or you will be stuck with a bunch of inventory you don't want or need.

Explore Vendors

As you work to refine your coffee shop budget, consider the vendors you will be working with. For example, will you decide on using a local wholesale coffee roaster, or will you choose to roast your beans?

Choosing your coffee is a big decision. Consider taking your time and meeting with several wholesale coffee roasters in your area.

In addition to your coffee, you may decide to work with different bakeries or food suppliers. Start exploring local bakeries that could provide muffins, donuts, croissants, or other items you'd like to serve.

As a coffee trailer, you might be limited in how you serve your food. For example, depending on your health department's requirements, you may only be able to serve pre-packaged goods. So, your vendor will need to be able to provide their packages pre-wrapped.

You may shop at COSTCO or Cash & Carry for paper supplies, condiments, and syrups.

Determine Your Target Market

As you develop and refine your coffee trailer concept and decide your menu, you need to focus on your target market. Regarding your mobile coffee business, your target market can change from location to location – and event to event. Therefore, take some time to understand your customers or target market at each location. For example, your target market can change in the morning, afternoon, and weekend.

Therefore, you need to define your target customer at each location differently from stationary coffee businesses like traditional coffee shops and drive-thru coffee stands. This will help you to coordinate your menu items and pricing accordingly.

Write Your Coffee Business Plan

To develop a successful business, you need to have a plan. This is true for mobile coffee businesses. Take the time to write your coffee trailer business plan thoroughly. Your plan will ensure that you adequately address the elements of your trailer business before launching.

Topics of your coffee trailer business plan include:

• Concept
• Management & Ownership
• Coffee Menu
• Branding
• Target Market Analysis
• Competitor Analysis
• Budget Analysis
• Financial Projections
• Marketing Promotion
• Exit Strategy

 For more on your business plan, consider reading How to Start and Write Your Coffee Shop Business Plan.

Develop Your Budget

Now that you've developed a good picture of what type of coffee trailer you want to have and your menu, you will want to build your budget.

Your “total budget” can be broken down into two distinct budgets. The first is your coffee trailer startup budget and your operational budget.

Your startup budget consists of the cost elements that need to be paid to get your business running. Things that fall into the startup budget include your coffee trailer, coffee equipment, legal and administrative work, trailer build-out, etc.

The operational budget constitutes things needed to keep your coffee business operating. For example, this budget may include your monthly rent, insurance premiums, inventory costs, labor costs, utilities, etc.

Understand The Regulations

While planning your coffee trailer business, you will want to understand the specific regulations impacting your industry. This includes the regulations for the type of trailer you need, the plumbing and electrical requirements, and the type of food you can serve.

Each of these elements is important to research before you set out to buy your coffee trailer. This is because not every coffee trailer may be compatible to satisfy the requirements of your local buildings department and health department.

Note: A coffee trailer that may pass inspection in one jurisdiction may not satisfy the requirements in another jurisdiction. So you need to get up to speed on the regs of the area (county and city) that you will be working in.

How to Start a Coffee Trailer Successfully

Find Your Coffee Trailer

Since you have established your menu, target market, and coffee business budget, you can now go out and find a suitable coffee trailer. Again, you have a variety of different options when it comes to buying your trailer.

Let's discuss them below:

How to Start a Coffee Trailer Successfully

Build Out Your Trailer

If you are not buying a fully functional coffee trailer, you must revamp or build it to specific specs. This means you must research the established requirements for your coffee trailer in the county or counties you plan to operate.

The build-out may include installing appropriate flooring, counter space, sinks, water and plumbing systems, electrical grid and outlets, lighting, and more. Ideally, you will want to find a licensed contractor to help you with installation.

Keep in mind the power draw or wattage required for your coffee equipment to function properly, as you will need to ensure that you can provide enough power for your trailer to run.

Get Your Coffee Equipment

Purchasing the appropriate coffee equipment and other equipment is exciting. However, you will want to consider elements like the power draw, size, weight, and functionality for your specific needs when it comes to equipment.

Typical pieces of coffee trailer equipment include:

• Espresso machine
• Coffee grinder
• Refrigerator
• Ice-makers
• Blender
• Toaster
• Microwave
• Food warmers
• Scale and small wares
• Power generator

For more information, read our post, Coffee Shop Equipment You Need To Open a Coffee Shop.

Get Your Coffee Trailer Permits

Once your installation is complete, you will then want to apply for your various licenses and permits.

First, consider creating your business structure, such as a coffee shop LLC, corporation, or non-profit. Second, you want to apply for your business license and health department permits. Finally, depending on your menu, you may also need the fire department's approval.

List of licenses you need to operate a coffee trailer:

• Business license
• Reseller license
• Health department permit
• Fire department permit
• Trailer and truck license
• Food handlers permit
• Special event permit
• Zoning permit

Start a Coffee Trailer Successfully

Coffee Trailer Commissary

Depending on your menu and health county regulations, you may need to utilize a commercial commissary. A commercial commissary will be a county-approved location where you can store, prepare, and cook food. A variety of commissaries exist – from commissary-only locations to county-approved restaurant locations.

In the city of Seattle, you must have a signed commissary agreement before you can get approved for your health permit. Therefore, I recommend searching around for a convenient location that will work for you.

Find Your Best Location

As a coffee trailer, you will have a variety of places where you can serve your coffee, food, and snacks. The mobility of a trailer allows you to find the perfect coffee shop location.

Additionally, because you can detach your coffee trailer from your pull vehicle, you can save additional space, which can be beneficial when space is limited in specific scenarios.

Still, it would help if you considered all of your options with your added mobility. While you can move from place to place, it can also be very inconvenient. Having a routine will be even better for your customers as they can anticipate visiting you.  

Like other coffee shops and drive-thru coffee stands, you must do a competitor analysis of every location you plan to serve coffee. The fact is that your competitors will impact your target market – and your bottom line. Knowing your competitors can help you adapt your menu and marketing.

For a more in-depth discussion, please read How to Choose Your Coffee Shop Location.

Promote Your Coffee Trailer Business

Promoting your coffee trailer is going to be essential for your success. Promoting a coffee trailer is easy because it's a mobile advertising unit in and of itself. However, it will be necessary to develop a loyal following and maintain it with various marketing and promotional efforts. Therefore, you'll need to develop a promotional strategy that works to help you stand out in your region.

Such promotion might include:

Creating a website – keep your website updated with relevant information and your location schedule.

Social media accounts – this will help keep your customers updated in real-time.

Email and text marketing – this can be done through your website or Coffee shop POS system.

Remember old-school marketing like A-frames, flyers, and punch cards. Instead, collaborate with other businesses to promote each other.

For more information, please read our post, Ten Ways to Promote Your Coffee Shop.

Securing Your Coffee Trailer

You will want to design safety and security elements for your trailer, from sturdy locks to secure service windows and hitch locks. Additionally, consider where you will store your trailer after hours.

For more information on securing your coffee trailer, please read, How to Secure and Protect Your Coffee Shop.

Choose Your Staff (Wisely)

The most significant advantage of having a coffee trailer is the flexibility to work where and when you want to. It's okay if you operate your coffee trailer yourself in the beginning. However, as your business grows, you will want to hire a barista to work your coffee trailer.

Start looking for your baristas early on. Focus on the reliability and positive attitude of your future employees. When you hire them, make the investment for continued barista training and emphasize the need for exceptional customer service. For more information, read our article, How to Hire the Best Baristas For Your Coffee Shop.

Conclusion:

Operating a coffee trailer is a unique, profitable, and low-cost way to own a coffee business. We've covered the basics of starting a coffee trailer successfully and what you need to start your mobile coffee business, but if you have any questions, feel free to email me.

Be sure to stay clearly focused on developing your coffee trailer menu, understanding your target market, and acquiring the type of coffee trailer that can suit those needs. Additionally, securing your necessary permits, choosing the right location, and relentlessly marketing your business all play an essential factor in your business.

How to Start a Coffee Trailer Successfully

Additional Questions:

Are coffee trailer businesses profitable?

Yes! Coffee trailers can be profitable. Once your coffee trailer is up and running, you can avoid much of the overhead expenses of a traditional coffee shop or drive-thru coffee business. Ultimately, your revenue and profits will be based on how many days of the week you are working, how many customers you serve per day, and your average ticket price.

For more information on profitability, consider reading How to Increase Your Coffee Shop Sales and Profits.

How much do coffee trailer businesses make?

Coffee trailers can make significant revenue per day. But, of course, your coffee business income will rest on your sales numbers and receipts, and you can forecast your revenue.

Let's say your coffee trailer averages 15 customers per hour. Each customer spends, on average, $6.00. That equals $90 per hour. If you are open 10 hours a day, your revenue would be $900 daily. You must subtract your costs from your revenue to determine your net income.

Your overall revenue and income depend on:

• How often are you working the coffee trailer
• The number of customers you serve per day
• Your average sales ticket
• Operational costs

What's the difference between a coffee trailer and a coffee truck?

The main difference between a coffee trailer and a coffee truck is that another vehicle with a motor must tow a coffee trailer. Therefore, you need an additional towing vehicle – such as a van, truck, or car. For safety reasons, you want a car with a big engine. You will need at least six cylinders, but eight would be necessary if you don't want to damage your vehicle.

Pulling a coffee trailer fully stocked with equipment, water, inventory, generator, gas, and ice can ruin a four-cylinder car and possibly blow out the transmission.

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How to Start Your Mobile Coffee Business

 Starting a coffee trailer is an incredible opportunity to create a profitable business and impact your community.

It can be a fun and challenging life endeavor. However, it can be especially tough if you don't know where to start. That's why we've written a helpful guide to help you get your mobile coffee trailer started.

Our 270+ page coffee trailer guide will help prepare you to launch your business, discuss building out your coffee trailer, and how to position yourself for future success.

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All You Need to Help You Plan and launch Your Coffee Trailer!

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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.