Is Starting a Coffee Truck a Good Business?

Starting a Mobile Coffee Business Series

Is Starting a Coffee Truck a Good Business?

Starting a mobile coffee business is an exciting opportunity if you want to try out a retail coffee business's waters. It is one of our favorite coffee business concepts because of its versatility, flexibility, and potential for profitability.

The U.S. is among the largest specialty coffee consumers globally, where people average about 3 cups of specialty coffee daily. This is about 400 million cups of coffee every day!

Specialty coffee consumption has been growing steadily in recent years, and this trend is sure to continue in the future.

Considering these numbers, any coffee business – including the mobile coffee business – has an excellent chance of success in the modern market.

Compared to a regular brick-and-mortar coffee business, where you are tied to a specific location, property lease, customer base, and unpredictable circumstances, a mobile coffee business gives you freedom and mobility.

With a coffee truck, you choose what customer base you will cater to or which event you will work on tomorrow. These may include sporting events, farmers' markets, weddings, or music festivals – all great venues to serve delicious coffee and make money.

So, let's discuss whether starting a coffee truck is a good business.

Is Starting a Coffee Truck a Good Business?

Pros of Starting a Coffee Truck

Starting a mobile coffee business is a great idea in today's economic environment, which requires fast decision-making, greater flexibility, and adaptability to the ever-changing work environment.

Lower startup costs 

A coffee truck startup costs can vary from $25,000 to over $100,000 depending on the mobile concept, buildout, and menu size.

You also don't need a brand-new sparkling coffee truck or a coffee trailer. With some patience and luck, you can get a good deal with a used coffee truck or trailer, lowering your startup costs.

Growth potential

Opening a traditional coffee shop requires significant capital that is often hard to develop. On the other hand, with relatively low startup costs, a mobile coffee business has excellent potential for growth and developing your coffee brand. As people recognize and trust your brand, your sales and profits will likely improve.

Once this happens, you can invest in more coffee trucks or a brick-and-mortar coffee shop when you accumulate enough money.

Lower operational costs

With a coffee trailer, you can save lots of money on a property lease that can be very high in some areas. You will still need to pay rent to operate your trailer at a specific location, or you may have to pay an event fee, but it will be smaller. Besides, a coffee trailer doesn't require a whole team of baristas hoping for a salary and taxes to be paid.

Usually, you will be working yourself and occasionally invite baristas during busy events for hourly pay. Moreover, since your menu won't be so extensive, you will have less equipment and inventory.

Lifestyle change

Are you tired of your current job? Do you have obligations that don't allow you to work full-time? Or do you feel like there's time to change your life? Create a career that suits your lifestyle goals, schedule, and values. Start doing something you are genuinely passionate about – coffee!

Flexibility

Flexible working hours are one of the biggest pros of a mobile coffee business. You can do it part-time while keeping your regular job until you get your business off the ground.

The location can be flexible, too, because you negotiate the venue or the events you work at. As a mobile coffee business, you can try different locations and serve various types of customers to decide what you like best.

The mobile coffee business is very convenient because it allows you to experiment with your branding, marketing, location, and menu. Be in charge of your shifts, days off, and holidays. Be your own boss. 

Pros of Starting a Coffee Trailer:

• Lower startups cost
• Growth potential
• Lower operational costs
• Lifestyle change
• Flexibility

Is Starting a Coffee Truck a Good Business?

Are There Coffee Truck Drawbacks?

With every concept come certain advantages and disadvantages. While we've listed serval advantages, a coffee trailer or coffee truck may have drawbacks.

We find one issue hampering the annual business of coffee truck owners:

Seasonality

Depending on when you live and work, having a mobile coffee business may not be ideal during extreme weather conditions. This may include extreme heat or cold. Serving coffee in the snow at a park or tourist spot probably wouldn't work. You'll have to decide whether you work during those times of the year or choose a location that better protects you and your customers.

Is Starting a Coffee Truck a Good Business?

Mobile Coffee Truck Equipment

Espresso machine

In the heart of any coffee business, there's an espresso machine. Depending on your space and power requirements, we often recommend buying a one-group or two-group espresso machine because they consume less energy and add less weight to your vehicle. It can be a new or used one depending on your budget, but most importantly, it has to be a quality one to sustain your sales volume. Read our post, How to Choose an Espresso Machine

Power generator

Not all venues or events will have power outlets to plug into, so you must ensure a steady power supply to your coffee business. Choosing a power generator won't be easy because you want to find the perfect balance between power, fuel consumption, size, noise, and exhaust gasses. You don't want it to be too loud because many locations won't let you serve unless you have a quieter generator.

Extension cord

Whether you use a generator or plug it into an outlet, you must have a special high-quality 220V extension cord. It should be long enough to reach from your coffee trailer to the power outlet. These unique extension cords will have a heavier gauge and be significantly more expensive.

Coffee grinders

You usually want two grinders – a commercial coffee grinder for your espresso and decaf. However, if you have limited space, one grinder should be fine.

Refrigerator

A commercial-grade refrigerator is essential for storing your milk, water, juices, and food items. You might also want to purchase a freezer to store ice if you sell cold brew in the summer.

POS-system

No retail coffee business can operate without a POS system. You need to be able to print receipts, process cash, credit cards, and mobile payments. Since you will be working outside where a mobile internet connection is not 100% reliable, your POS system needs to be cloud-based, which means it can process payments offline and later upload them when the connection is restored.

Consider that a mobile coffee truck's needs differ from a traditional coffee shop.

For mobile coffee businesses, we recommend Square POS.

Other Coffee Truck Equipment

You must equip your business with a 3-compartment sink, clean water tank, greywater tank, water pump, water heater – and be thoroughly equipped for plumbing. When building your coffee truck, you should use fireproof materials to meet the building department's requirements. You will also need to have a contract with a commissary (if needed).

Is Starting a Coffee Truck a Good Business?

How Profitable Are Coffee Trucks?

Whether you buy an already equipped mobile coffee business or build a coffee truck with your own hands, you have similar chances to reach your break-even point and make a profit.

Coffee prices in a mobile coffee business are the same as in a regular coffee shop. You can have decent sales volumes and generate high revenues at busy locations or events. With lower costs and average market prices, you can reach profitability faster than a coffee shop business. If you can be innovative and trendy and make unique product offerings, you can boost your sales to reach even higher profitability.

Before you start your mobile coffee business, writing a coffee truck business plan to calculate your costs and estimate potential revenue is highly recommended.

A coffee truck business plan will help you to:

• Organize your ideas
• Choose the concept that fits
• Think everything through
• Develop a smart budget
• Shop for coffee truck equipment
• Find the right location
• Research all health and building departments' requirements
• Plan out your marketing and branding
• Manage your coffee truck to make profits
• Save money and avoid mistakes

If you decide to start a coffee truck or coffee trailer, CONGRATULATIONS!

As you start your exciting journey in the retail coffee world, try to get the help you need to avoid costly mistakes.

Do your due diligence, and research your area, local coffee market, and legal requirements. Use the knowledge and experience of coffee experts, and stay tuned for more information and new mobile coffee blog posts.

Your Coffee Business Management Matters

For all the benefits a coffee truck offers and its excellent revenue potential, your success comes down to your preparation and focus on being a great coffee business manager. In addition to planning your mobile coffee business, consider learning the essentials of good coffee business management. For starters, consider reading our post, Traits You'll Need To Be a Great Coffee Shop Owner.

Your determination, your pursuit of knowledge, and getting the right help you need will help you move forward with creating a successful mobile business and save you money, time, and headaches.

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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.