Start a Coffee Cart Business: Pros and Cons

Pros and Cons of a Coffee Cart

Start a Coffee Cart Business: Pros and Cons

Starting a coffee cart business is a great low-cost coffee business option that can generate ample revenue. If you are thinking about a side hustle that you can work during special events, weekends, or parties, a coffee cart business might be just what the barista ordered!

In this post, we will discuss a few essential elements needed to start a coffee cart business, including the cost of a coffee cart, how to choose the right coffee cart for you, and the advantages and disadvantages of starting a coffee cart business.

While a coffee cart business is a simpler coffee business concept when compared to a coffee shop, you'll still need to take some essential steps similar to starting a coffee shop. Such actions include setting up your business structure, writing a coffee shop business plan, and selecting your menu.

Let's get started below:

Further Reading: How to Start a Coffee Cart on Wheels

Coffee Carts Come in all Shapes and Sizes

Coffee carts are pretty much like coffee business owners: diverse and unique.

Choosing a coffee cart business is the fun part. Take your time to explore different options and choose one that appeals to your customer and satisfies your local permitting agencies. Don’t forget that a coffee cart should be pretty easy to work with, so don’t overcomplicate things.

Here are a few examples of coffee carts:

The Cost of a Coffee Cart Business

A coffee cart business can cost between $5,000 and $20,000. There are so many different types of coffee carts.

Ultimately, the costs of a coffee cart depend on:

• Type of coffee cart
• Its size
• Buildout
• Capabilities
• Coffee equipment
• Your menu

A coffee cart can be as complex or simple as you want it to be. For example, you can have a full-plumbing system with sinks and a pitcher rinser. Or you can have a simple cart that allows you to serve pour-over coffees. Whichever direction will alter your coffee cart budget.

New vs. Used Coffee Equipment: A used coffee cart and used coffee equipment will likely be cheaper. Likewise, a new coffee cart and equipment will substantially increase costs. This variability in size, quality, equipment, and location can create a broad spectrum of costs.

Example coffee cart cost breakdown:

Physical cart: $300-$2500

Electrical & plumbing: $1000 – $2000

Espresso machine: $2000 – $8,000

Coffee grinder: $1000 – $1500

Measuring Scale: $100 – 250

Steel pitchers & utensils $100 – $400

Ice-box or refrigeration $100 – $1000

NSF Water containers $150

Other miscellaneous supplies: $200 – $300

The total coffee cart can cost:  $4,900 – $16,100

Since I was notating your startup costs, I intentionally omitted operational costs, such as inventory, rental fees, insurance, payroll, and taxes.

Buying “new” will increase your coffee cart costs. However, there are advantages to having new coffee equipment. These include equipment warranties, having a clean and cohesive look, and a better fitting setup.

Before buying any coffee equipment, you should have a design and layout plan for your cart.

If you want to save money, you may consider having a mix of new and used equipment for your coffee cart to reduce startup costs while not sacrificing the quality of your coffee cart setup.

Further Reading: How to Start a Coffee Cart on Wheels

Choosing the Right Coffee Cart Business

The first step in choosing the right coffee cart for you is to know what county and city you plan on operating your coffee cart in so you can better understand the region's health department regulations (or other departments required to sign off on your permits).

Before you spend any money, review your local health department regulations and understand what type of coffee carts are acceptable to them and any other requirements they might have. The last thing you want to do is invest in a beautiful coffee cart and realize it won't meet your health department's basic requirements.

Start a Coffee Pull Cart Business

Pros and Cons of a Coffee Cart Business

Advantages of a Coffee Cart Business

There are several major advantages to setting up an independent coffee cart business. They include the following:

• Low-cost coffee shop business concept
• Easy to get started
• Less Risky
• Opportunity for growth
• Opportunity for profit

It is a low-cost coffee business concept

Starting a coffee pull-cart business has a lower financial barrier to entry. A coffee cart is often less expensive than other coffee business concepts, such as a drive-thru coffee stand or a coffee truck. It is certainly less expensive than opening a coffee shop or bakery. This lower cost can appeal to aspiring coffee shop owners who want to take the first step into retail coffee but don't have funds for a full-blown café.

Easy to get started

Since setting up a coffee cart costs less, considerably fewer elements may impede your startup. While your coffee cart must satisfy many of the exact requirements (i.e., health department), the setup is often easier.

Among the least riskiest coffee business options

Since the investment in a coffee cart is much less than other options, the risk is much less for a sole entrepreneur. In addition, if your coffee business should fail, you can always take a break and start again later or sell your coffee cart and equipment.

Opportunity for growth

A successful coffee cart business provides various growth opportunities. For example, if you run a successful coffee cart, you may consider adding another cart to your business. You might also consider setting up a coffee truck or taking additional steps to start a coffee shop or drive-thru coffee stand.

Additionally, starting a low-cost coffee business with little risk can allow you to improve your coffee shop management skills, build your coffee brand, and establish relationships with vendors such as wholesale coffee roasters. Therefore, starting a successful coffee cart puts you in an advantageous position to grow if you choose to do that.

Opportunity for profit

Operating a successful coffee cart opens the potential for healthy profits. You can generate significant revenues and earnings by placing your coffee cart in the right location, offering what your customers want at a healthy price point. Ultimately, your profits depend on several important factors, including sales volume, price points, and overhead costs. You certainly want to focus on developing healthy financials. However, you can have a successful and profitable coffee business by steering your coffee cart business to improve sales and revenues.

For more information on how much income you can make as a coffee shop owner, read our post, How Much Do Coffee Shop Owners Make?

Disadvantages of a Coffee Cart Business

When you compare it to other coffee concepts, There may be some disadvantages to opening a coffee cart business. These disadvantages include:

• You may need to buy a tow vehicle
• Finding profitable locations can be challenging
• You can have security issues

An additional vehicle may be needed

A coffee cart is a mobile coffee unit, but it can be challenging to move even small distances. Depending on your setup and how often you change locations, you will likely need a tow vehicle readily available to move your coffee cart, equipment, and supplies.

A heavier truck or van with a trailer to pull your coffee cart to your location is needed. If you don't already have a truck or trailer to load your coffee cart, this may increase your startup costs significantly.

Finding a suitable location may be challenging

When you find the perfect location to set up your coffee cart, you'll generate healthy sales. However, finding a great location can be challenging.

There are several practical calculations that you need to consider with your location:

• Is your location ideal for reaching customers?
• Do you have permission and an agreeable lease?
• Do you have access to power and water?
• Is there a restroom nearby?
• Is it safe for you and your employees?

You can have security issues

A coffee cart can be vulnerable to theft or vandalism if left alone. You must work in teams if your cart isn't in a secure spot. Someone is always there to secure the cart if someone needs to use the bathroom, run an errand, or take a break. Ensure that your equipment is stored, locked, or removed at the end of your shift.

Further Reading: How to Start a Coffee Cart Business

The Pros and Cons of a Coffee Cart Business

Where Do You Get Your Coffee Cart?

Buy a New Coffee Cart

There are good manufacturers of coffee carts and food carts that offer beautifully designed coffee carts. From small to larger and more complex carts, you'll likely find one you like.

Ensure that your new coffee cart will satisfy any requirements from all your local agencies before you order it. You may also request certain specifications and modifications beforehand by the manufacturer.

Buy a Used Coffee Cart

Buying a used cart can significantly lower your costs. If your cart is already working in the city or county, you may also have an easier time getting a permit for your coffee business. You can look on Craigslist or Facebook groups to know how much a coffee cart will cost – and if one is available in your region.

Build Your Coffee Cart

Building your coffee cart can be a lot of fun, potentially saving you money if you want a specific look or modifications that would be too expensive to order. Building your cart allows you to design something you love that is specific to your needs and will enable you to pay as you go. It may be the best option in many situations due to a lack of availability or expense.

Starting a Coffee Pull Cart Business

Coffee Cart Business Requirements & Considerations

Before you set out to buy or make your coffee cart, there are a few essential considerations that you need to think through before moving forward.

The first is having a tow vehicle to move the cart around. While your coffee cart will likely have wheels, it will probably be heavy and bulky, especially with coffee equipment. Therefore, having a truck, van, or trailer that can move your coffee cart from place to place will be necessary.

However, if your cart is situated in one location and you can leave it there, you may be able to rent a trailer for a few hours for the initial move. You will want to ensure that your equipment is secure if your cart is left anywhere overnight.

The second consideration is knowing your power needs. Your power is a critical element of your coffee business. Will you power your cart or connect it to an outlet through a power generator? You may need to do both, depending on your location.

Third is your water source. You will sometimes need to carry quite a bit of water – for your hand sink and coffee brewing needs. Be prepared to carry in and carry out your fresh, potable water and gray water.

Fourth is having a commissary. You may need to have a commissary to work your coffee cart business. A commercial kitchen commissary will ensure you have a place to wash your utensils, prepare food or snacks, and properly dispose of your gray water. Often, your health department will not approve your permit without you already having a signed agreement with a commissary.

Start a Coffee Pull Cart Business

Additional Questions:

Is running a coffee cart profitable?

Yes, operating a coffee cart can be profitable. However, your total revenue depends on several important factors. These profitability factors include your sales number, price points for each item you sell, and overhead cost. Additionally, if you operate a cart on the weekends, you may not make as much as someone who operates a coffee cart five days a week.

We dive into this issue further in our post, How Much Do Coffee Shop Owners Make?

Is it hard to run a coffee cart?

Running a coffee business is fun, engaging, and profitable. However, running any coffee business can be challenging. There are often hectic periods – usually in the mornings. This requires you to plan your daily and weekly employee schedules and inventory needs. Whether you intend to operate a coffee cart or a mobile coffee cart, you'll have to prepare ahead of time to increase your efficiency and reduce your chances of failure.

Running any business can be hard, but you can prepare, plan, and train yourself and your staff to improve efficiency.

Is having a coffee trailer or coffee truck better than a coffee cart?

There are so many great ways to sell coffee. Setting up a coffee trailer or opening a coffee truck is also a great way to enter the retail coffee industry. A coffee trailer and cart are similar in that they are mobile coffee business concepts. They often require the same type of coffee equipment and have the exact requirements – such as permits. The decision rests entirely on what kind of business you would like to have and the current opportunities where you are.

We encourage you to explore our coffee business blog for more information.

Further Reading: How to Start a Coffee Cart Business

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Further Reading: How to Start a Coffee Cart Business

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.