How To Start a Coffee Truck Business

How Do You Start a Coffee Truck Business?

The Ultimate Guide to Starting Your Coffee Truck

How To Start a Coffee Truck Business

Let's face it; food trucks are really cool. 

Coffee trucks are just as awesome too! 

Now there are plenty of great reasons to start a coffee truck business in today's business environment. The growing trend for street vending in cities and towns everywhere makes it appealing for coffee entrepreneurs to consider opening a mobile coffee business – yesterday.

Additionally, local and state leaders are re-discovering the need to re-invigorate public spaces, parks, and streets to pedestrian traffic. Coffee trucks and coffee trailers make an excellent addition to many cities' overall goals to spur local business activity, safety, and commerce.

You can probably see this transformation in your town. But, have no doubt, what's suitable for cities and towns of all sizes is also good for coffee truck owners!

Mobility, flexibility, and lower costs can make owning a coffee truck more appealing when compared to opening up a traditional brick-and-mortar coffee shop.

There are many different ways to start a coffee shop business. Starting a mobile coffee business is an excellent low-cost coffee business concept that offers potentially significant profits and other benefits. The mobile coffee business is a great low-cost alternative to a brick-and-mortar coffee shop startup.

While we have written about the essential steps to start a coffee shop, today, we're going to discuss the steps to start a coffee truck, which comes with its own unique challenges.

But before we get into the steps to starting a coffee truck, let's talk a little about the costs of launching a coffee truck business.

How to Start a Mobile Coffee Shop

How Much Does It Cost to Start a Coffee Truck?

How much does it cost to set up a coffee truck business?

The costs of starting a coffee truck depend on several factors that can add up quickly. For example, the cost of the coffee truck or coffee trailer structure, building it out to serve coffee, providing power, and installing equipment – all depends on your available space, your chosen menu, and the type of service you wish to provide.

Because of all these factors, you can easily have a wide spectrum of startup costs.

As you probably know, everything adds up. However, you can estimate that a typical coffee truck can cost anywhere from $10,000 to $100,000. From our observations, the average used coffee truck (no equipment) is often skewed slightly towards the $35,000-$60,000 range. Setting up a coffee trailer business can be less expensive.

But again, this all depends!

For example, if you order a custom-made coffee truck with all the “bells and whistles,” you could be spending upwards of $100,000 to $155,000. 

On the other hand, you could buy a used coffee truck (or food truck) from someone who is retiring, moving, or changing businesses and get a steal of a deal.

Be Prepared Before You Spend Money

Being prepared can save you money… lots and lots of money.

Developing your coffee truck startup budget depends on you writing everything down in a coffee shop business plan. A business plan will help you flesh out your ideas and concepts into a practical and implementable plan.

But to write a good business plan, you need some preparation. First, you need to have background knowledge and some idea of what it takes to start a coffee business. The good news is that you have the option to get our very affordable Complete Coffee Shop Startup Kit.

How to Start a Mobile Coffee Shop

Additional Reading:  How to Start a Coffee Trailer Successfully

How To Start a Coffee Truck Business Guide

Is a Coffee Truck Profitable?

Yes! A coffee truck business can be profitable. It can generate ample income and provide you with the financial life you may be looking for. In addition to lower startup costs and operational costs, there are tremendous amounts of non-financial benefits to owning and operating your own coffee business as well. Lifestyle and flexibility are just two common personal benefits.

But it will take work to get started.

As mentioned, a coffee truck or coffee trailer has lower financial barriers than a traditional coffee shop, but it still will require money to have it ready to serve your first coffee.

The danger with the “money factor” is that you may see significant overruns in costs without the appropriate planning and thoughtful budgeting.

The best way to save money on your coffee truck startup business is by researching and planning your way throughout the entire process.

The revenue range depends on several different factors. These include how many days of the week you sell coffee, your sales numbers, and your average receipt price. For more information, please read our article, How Much Do Coffee Shop Owners Make?

How Do You Start a Coffee Truck Business?

Below is a list of key steps you will want to take to start your coffee truck business. Consider each of them as you set out to plan and launch your mobile coffee business.  

1. Decide on a Coffee Truck Concept.

There are a variety of mobile coffee concepts to choose from. Take time to discover what your options are. Start by visiting a  few existing coffee trucks or food trucks in your area. Even if you already have an idea in mind, a real-world visit can help you determine what direction you would like to move towards.

Visit with them and figure out what you like and don't like. If you don't have any available coffee trucks or coffee trailers available to visit in your area, check out a few online.

Your concept is essentially the practical representation of your vision. In essence, it is recommended that you properly develop your mobile coffee vision before moving forward.

While your concept will be your ideal goal for your coffee business, it may evolve due to your practical necessities, budget issues, or competition. So, understand that you'll need to be flexible as you move forward.

2. Assess Your Resources to Fund Your Mobile Coffee Truck.

Your coffee truck will require startup funds. Ultimately, how much money your coffee truck will cost will depend on the concept you have decided to pursue. 

Consider exactly how much money you will have access to acquire your coffee truck and build it out. This funding mix may be from your savings, a business account, investments, etc. 

If you have some money set aside for your coffee truck business but may need to borrow the rest (investors or loans), you will want to know approximately how much you'll need.

As you start developing your plan and budget, you will want to look at how you will fund your mobile coffee business. First, consider all of your financial resources. Those resources are solidly in your possession, as well as other resources that you may have to borrow from. 

3. Consider Who Your Customers Are.

When starting any coffee business, you want to stay focused on your customers throughout your entire process. For mobile coffee businesses, staying laser-focused on your target customers will be your biggest goal.

Who do you imagine serving your coffee to? Will you be working at private events, ticketed festivals, community farmers markets, or other special dates like weddings and anniversary parties? Will you be serving tourists or locals? Or any combination of these?

The customers you plan to serve will have a significant impact on your menu. Likewise, your coffee menu will impact your need for coffee equipment. In turn, your coffee equipment will determine your need for physical space, and so on.

Indeed, your coffee business costs are never really independent of one another. They are all connected. Knowing who your ideal customer is will help you make some pretty important decisions.

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4. Develop Your Budget Around Your Coffee Truck Concept.

Now that you know your concept and customers, it's time to focus on your budget. The amount of money you have to put towards your coffee truck will either determine your coffee truck concept or alter it in some fundamental way.

Concepts are all wonderful until they quickly hit the wall of reality – usually the financial reality.

So, keep in mind your entire coffee truck budget from the very beginning because it will ultimately dictate how far you will go. Thinking and assuming that “The money will come to me somehow” may not be the best approach. 

5. Consider Which Coffee Trailer Equipment You Will Need.

Once you've determined your concept, your customer, your budget, and your coffee truck menu, you will be able to focus on your coffee equipment. 

Your coffee equipment is the bread and butter of your mobile coffee business. Without it, you will be hard-pressed to provide any coffee to your customers.

Additional Reading:  How to Start a Coffee Trailer Successfully

How To Start a Coffee Truck Business

6. Consider Your Mobile Coffee Truck Power Needs.

When you are in a coffee truck or coffee trailer, you'll have to figure out how you will power your coffee operation.

Indeed, it will take power to run your equipment. Will you use an extension cord and power up to an available power outlet? Will you hook up to a generator instead?

The power and wattage you'll need is an essential consideration for any mobile coffee business. Each piece of equipment will draw power. Hopefully, you'll know what kind of power you'll require before building out your coffee bar and buying your coffee equipment.

7. Write Your Mobile Coffee Business Plan.

Having a well-written mobile coffee business plan will make life easier for you as you move forward with your mobile coffee business. Now that you got the information from our tips above, you should be ready to write your coffee business plan down. 

The investment you make in time and effort to write your business plan will certainly pay off. However, if you don't know where to start, start with our Coffee Shop Business Plan Guide and Template, which you can find in our Complete Coffee Shop Startups Kit.

8. Understand Local Health Department Regulations.

Knowing the requirements mandated by your local health department is something you need to determine long before you decide which coffee truck to buy and certainly before you build it out.

Our strong recommendation is that before you buy your new or used coffee truck, you should also review the regulations of your local health department in the jurisdiction you plan to do business in. Unfortunately, it's quite common to invest a lot of money in your setup only to have it unable to pass inspection.

9. Get Your Mobile Coffee Truck. 

Getting your mobile coffee truck is the exciting part! Now that you have written your plan develop your budget and consider your funding. Then, it's time to procure your coffee truck. You have a few options to set up your coffee truck for your business. You can either refurbish or retrofit an existing truck, or you can buy a coffee truck or coffee trailer. There is plenty of options to find used trucks on sites like Craigslist, where you can buy a used truck. There are also food truck manufacturers that can produce a coffee truck to your specifications. 

10. Get Barista Training.

Serving great coffee to your customers is a must. If you have not been a barista, it might be helpful to get barista training. Most likely, you will be the primary person serving coffee. That is until you hire someone. In which case, your responsibility for training your employee will be an essential part of your job.

Even if you have had experience as a barista, refreshing your barista skills will improve your overall coffee business. It will enhance customer experience, as well as eliminate waste.

Depending on where you live, you might be able to find a local coffee educator to train with you or your employees. Fortunately, some good online barista training programs will help get your coffee skills up to speed.

11. Develop Your Mobile Coffee Marketing Plan.

Coffee can be a competitive business. You need to stand out. So as you start your coffee truck business, you'll want to have a marketing plan in place to help generate buzz.

The basics of a marketing plan require you to develop a brand, logo, and position in your niche. You want to support your brand with a coffee business website, business cards, and social media accounts. Face-to-face networking and community outreach are also important.

Tips on How to Start a Coffee Truck Business

As you can see, there are a few essential elements to your mobile coffee business startup to keep in mind. My recommendation is that you start to conceptualize your concept and start working on your menu offerings.

Remember:

• Start researching your coffee truck or coffee trailer type.
• Consider what coffee trucks already exist in your neighborhood. 
• Start coming up with a funding mix plan to launch your coffee business.

There are many great mobile coffee business options for you – any of which can work to be a profitable business. Let's summarize how to start a coffee truck business in the list below:

• First, decide on a coffee truck concept.
• Next, assess your current financial resources.
• Consider who your customers are.
• Develop your budget around your coffee truck concept.
• Consider which coffee trailer equipment you will need.
• Consider your power needs.
• Write your mobile coffee business plan.
• Understand local health department regulations.
• Get your mobile coffee truck.
• Get barista training.
• Develop your mobile marketing plan.

Mobile Coffee Truck Business 

The Ultimate Guide to Starting Your Coffee Truck Business

How Do You Start a Coffee Truck Business?

Before we get into our questions and answers of how you would start your coffee truck, we want to bring up three essential topics you will want to consider right off the bat. These topics will be cornerstones in your planning. 

Your Mobile Coffee Business Permits

Working with the Buildings Department and Health Department

Before your mobile coffee business can serve any coffee, you will need to get a permit through your local or county agencies.

Depending on where you are located, this process could be more cumbersome in some locations than in others.

For starters, I would recommend working with agencies in the locale you are planning to do business in – and not necessarily the city where you live (unless, of course, you are also planning to do business there).

If you plan on working in several cities or counties, you should decide where exactly you will be early on in the process of planning your coffee truck business. Once you determine where you operate your mobile coffee business, you'll need to determine all the requirements you'll need to satisfy before you are issued a permit.

For example, if you live in Riverside County in Southern California but plan on doing business in Los Angeles and Orange Counties, consider visiting with LA County and O.C. County agencies and reviewing their materials. Often, they will have this material available online. Read everything you can find online. Then, contact the agencies and get paper leaflets and instructions. Follow-up and see how they are the same and differ from each other.

Each local agency has its objectives in determining your permit status and may slightly vary as they see fit. Ultimately, however, their goal is to keep you and your customers safe.  

Before starting your mobile coffee business, decisions you make will come into play before you actually work with the health department or buildings department.  

Your mobile coffee menu may likely play a key role in:

1. Which agencies do you work with
2. How agencies determine your risk level
3. What additional requirements or equipment do you need to maintain a safe coffee truck.

Working With The Buildings' Department

Your building's department plays a vital role in your safety, the safety of your employees, and your customers.

The rules vary from place to place, but ultimately some agencies will have jurisdiction to determine the safety of your mobile coffee vehicle as it pertains to the structure of your mobile business.

It can be assumed that, in general, your local buildings' department is slightly more relaxed about street-legal vehicles than about brick-and-mortar structures for the apparent reason that trucks or trailers are not considered buildings.  

While there is a certain latitude given to vehicles, this is generally not the case. Your buildings' department will assess and determine the safety of your coffee truck or trailer before giving you your permit.

The best thing to do is fully understand what requirements are necessary before you shop for your coffee truck or coffee trailer – and before you build it out. This requires you to look specifically at your county's requisites.

Things like making sure your electrical installation is “up to code” will be necessary. Having commercial-grade materials and your electrical wire for commercial use and possibly exterior/wet environments is also essential.

Additionally, your water systems and plumbing need to be up to code and built with specific materials. Finally, efficiently pumping water in and out of your coffee truck will need to comply with specific standards.

Consult with your buildings' department to ensure that your coffee truck will meet the necessary standards before you apply for your health department permit. Even if you have a professional coffee truck manufacturer making the truck, be sure to check with your various departments to ensure your mobile coffee truck is in compliance. 

Working With Your Local Health Department

Your county health department might seem to overlap with the requirements of your buildings' department. In some circumstances, this is true.

While your buildings department is concerned about the structural and electrical components, etc., your health department is squarely focused on preventing food-borne illnesses. Your health department wants to see your plan from food prep, storage, serving, to disposal of waste. As you start planning, determine if you need a commercial kitchen commissary to satisfy any health department requirements.

For example, the health department might determine that your specific coffee menu and your operational plan call for three or four sinks to be installed. However, the buildings' department doesn't call on how many sinks you need to be sanitary and safe. Instead, the role of the buildings' department is to make sure that your sinks are hooked up correctly, regardless of how many there are.

Further Reading: Do Coffee Trailers Make Money?

How To Start a Coffee Truck Business Success

Further Reading:  How to Start a Coffee Trailer Successfully

Additional Coffee Truck Business Questions:

How do you set up vending in public spaces?

Once you get your permits, you might need to go through a secondary vending process in public spaces. For example, if you have a mobile coffee business, there's a high probability that you will be selling coffee on city streets, accessways, and other public spaces.

The good news is that more and more communities are beginning to understand sidewalk vendors, food trucks, coffee trailers, coffee stands, and coffee kiosks can be an integral part of their public spaces.

Being publicly accessible (and visible) on the street can potentially boost your profits as it affords you greater access to potential customers.

Cities are aware that street food vendors make their communities more attractive to outside visitors and investors. However, public safety and taxes also make vending attractive options for cities too. In other words, a mutual benefit often occurs when cities allow vending in public areas and spaces.

Of course, cities and regional agencies aim to achieve some regulations, standards, and best practices. Many agencies play a big role in ensuring consumer and worker safety. These include your county's buildings department, health department, fire department, and others. You must obtain all necessary permits to operate as a business on your city sidewalks or squares.

These public vending regulations may not apply to vending on private property. Private events on private property may require different hoops to jump through. For example, if you want to set up at a special event like a festival or concert, you will need to be approved by the event organizer before the event.

Should I expect to work with the Department of Transportation?

Since many mobile food and beverage vendors operate in public “right of way,” your city's department of transportation may also require certain permits.

Often, a city will require all coffee vendors to get a business license and a “street use” permit before opening in a public right of way in any part of the city.

Give yourself plenty of time to research every department's requirements.

It's not uncommon to have city departments overwhelmed by requests for applications, so give yourself up to 8 weeks for processing your submittal.

When it comes to your public-use permits, keep in mind that your permits are “site-specific” – this means that if and when a permit is issued, it is only allowed for that specific site. Usually, a decal, sticker, or permit must be posted somewhere on the vending vehicle to avoid fines.

While every city or municipality may have its regulations that need to be followed, you can be sure that they are there to protect people's health and safety in your area. 

What zoning requirements should I expect when setting up a street vending business?

Every area of your city has a zone for public use. These include residential zones, commercial zones, mixed zones, etc. Be sure your vending location is the property zoned for your coffee business.

The physical site you wish to work in will likely need to meet specific setback and clearance requirements. This provides adequate space for pedestrians, traffic, etc. The area around your coffee cart or kiosk should be clear at all times.

Best practices indicate that you should leave at least a five ft. wide pedestrian corridor next to your mobile coffee truck. These areas should be free from cords or anything that could restrict pedestrian movement. Also, every city requires a vendor to have a certain setback distance from curbs, entrances, bus stops, parking lots, other vendors, etc.

When you apply for your permit, you may have to show all of these elements in your site plan that you submit together with your application. It's important to remember that your application might be denied if your business prevents access or safety at the park if you apply for a street use permit in a park.

Permitting For Coffee Trucks Before You Can Open

What's the application like for mobile coffee street vending?

Applications may vary from city to city. However, generally, when you apply for the street use permit, you may need to prepare a package of documents.

These permit documents may include:

• Your application
• Detailed site plan (Note: tables and chairs may require a second and separate permit and review procedure)
• Description of use
• Health and Fire Department permit copies
• Business license copy
• Pay required fees
• Neighboring business access permit (if located next to other businesses)

Note: The list of names of documents might vary from one location to another. Make sure you get the relevant information from your local Department of Transportation!

Will I work with my city to get my street vending permit?

In many cases, depending on the backlog of your city, a street use officer will arrive to review the site. That is, if the actual location and your site plan meet all the requirements and setbacks.

Some jurisdictions vary, but you can assume that you will receive an official notice about whether your application was accepted or needs additional review shortly after your application submission.

For example, in cities like Seattle, the city's transportation department may probably send you a notice form. This form may indicate that you are expected to notify a list of adjacent businesses or households within a 100-foot radius of your vending location.

Your neighbors have the right to submit their comments to the Department of Transportation. After the officials review all submitted comments, the final decision will be made to approve, approve (with additional conditions), or deny your street use permit.

When you get the permit, don't forget to pay the administration fee, which will vary depending on your operation time (day or night). Failure to pay your fees might result in the termination of your street use permit.

Are mobile coffee shops profitable?

Yes, mobile coffee shops are profitable. Typically, mobile coffee trucks enjoy lower overhead costs when compared to traditional brick-and-mortar. Usually, this is because you don't have the terribly high rents that coffee shops are forced to pay.

Pound for pound, mobile coffee shops (trucks, trailers, and coffee vans) can bring in considerable amounts of money per day. Of course, this entirely depends on several essential factors. These include how many days you work, how many sales you have, and your average price point.

Because these variables can completely swing across the spectrum, you can make anywhere from $300 a day to $1500 a day. Again, this depends on how many sales you have. And this does not include your operating costs.

Are coffee trucks successful retail coffee options?

Yes, coffee trucks can be a successful retail option for many coffee entrepreneurs. Having a coffee truck or coffee trailer can sometimes provide a better opportunity to get a strong foothold in the local retail coffee industry.

In addition to potentially lower cost barriers, it can move to where the customers are. Due to space and capacity, your menu may be more limited if you were in a coffee shop, but not necessarily so. Your success may be impacted by your ability to find the best locations, rally your loyal customers, and keep operational costs in check.

How To Start a Coffee Truck Business 

Starting a Coffee Truck Summary

There's no limit to a coffee truck business. It's an exciting low-cost coffee business option that makes sense no matter where you're located.

The opportunity for you to build a profitable and sustainable coffee business that you either work full-time or part-time is an excellent way to start your coffee business empire.

Let us help get your coffee business planning started.

We've created a Complete Coffee Shop Startup Kit – a unique and powerful resource for any aspiring coffee business owner. Packed with 15 audio interviews, a coffee shop business plan template, a profitability guide, and much more. It's all here to help get your planning started the right way.

Coffee Shop Startups

Mobile Coffee Business Coaching

Starting a coffee truck is a great option for many would-be coffee entrepreneurs. Yet, starting a coffee truck requires you to consider several important factors before spending significant money.

We offer you an affordable mobile coffee consulting service that can help get your coffee truck off the ground. To get a consultation, contact us at contact@coffeeshopstartups.com.

The best way to start your mobile coffee business is to invest in learning all you can about retail coffee and learning from real-world coffee managers, coffee business owners, and business experts.

Our Complete Coffee Shop Startups Kit provides you with multiple coffee business guides, a business plan template, and 15 hours of audio interviews. Our interviews provide a wide breadth of advice, tips, and recommendations that are helpful for any retail coffee business owner. 

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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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Successfully Plan and Launch Your Coffee Trailer

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.