If you've been dreaming of operating your own food truck business, there are a number of finance options. There are also a number of costs you need to consider, and licences to apply for before you can get started. And just as importantly, you'll have to get the right types of insurance.
As with any business, you'll need to start with a plan. Before applying for a loan and buying that food truck, you'll need to iron out a solid business plan and figure out who your customers are and the market you'll be catering to. Consider your competition and what sets you apart from them.
Then work on a budget. You'll have to take into account who will run your food truck, if you need to hire people, as well as your own business experience and qualifications. Also consider other costs like the truck itself, and inventory. You need to figure out the type of food you want to sell, whether there's a customer base for it, where and when you can sell it and the type of vehicle you can sell it from. Once you have a plan, you can work on funding and licences.
| Response | WA | VIC | SA | QLD | NSW |
|---|---|---|---|---|---|
| No | 83.76% | 74.74% | 86.08% | 79.37% | 72.75% |
| Yes | 16.24% | 25.26% | 13.92% | 20.63% | 27.25% |
There are a number of loans you can apply for to finance your food truck business. Not all types of funding will suit your business. Comparing business loans can help you find a loan that suits your needs and matches your circumstances. Your options include:
When you're comparing loans and lenders, there are a number of factors you'll need to take into account. These include:
There are a number of vehicles you can use for your mobile catering business. These include:
You can buy the truck either new or second hand. While your finances will play a role in the type of truck you choose, you also need to factor in insurance costs. Another thing to consider is the visual presentation of your food truck, as it is your primary business premise and will help customers recognise and choose to buy from your truck. So, you'll also need to factor in the cost of customising your truck and making it stand out.
This will vary depending on the truck itself, and other business costs. Much of the cost is upfront, in acquiring the truck and equipping it. The cost of the truck will vary depending on whether it's new or used. A new truck could cost up to $100,000, while a used food truck may cost over $15,000. You could also buy a standard vehicle and convert it. You may also have equipment costs if you have to buy, for instance, a griddle, deep fryer or sandwich press. Apart from the cost of the vehicle and cooking equipment, you may also have to pay to customise your truck and make it unique.
You should also consider labour and inventory costs. Your staff may have to meet certain food industry requirements, including training in food handling and food safety. In some states, you may also have to have a nominated Food Safety Supervisor on site. This person will have to be trained and registered. Then there are wages for the staff, as well as other operating costs like the cost of inventory.
The licence to operate itself will cost a fee, and you may have to pay to renew your licence annually. There will also be insurance costs. An insurance broker with experience in the mobile food industry may be able to point you in the right direction.
To operate a food truck, you'll have to apply for a number of licences. This will vary from state to state, so make sure you do your research. Licensing requirements may also vary depending on the type of food being served. For example, cooked meat, seafood and dairy products are considered potentially hazardous foods. These foods are made to order and need to be maintained at a certain temperature.
You'll need to register your business and apply for a licence from your local council. The truck itself may need to be registered, and you may need a valid driver's licence. If you wish to operate in other local government areas, you'll need to obtain the appropriate licences.
There may also be other regulations you'll have to comply with. These can include restrictions on where you can operate from and exclusion zones. There may also be limited hours of operation and restrictions regarding proximity to other businesses.
Apart from getting the right licence to operate, you'll also need insurance coverage. It's not the same as car insurance, as you'll need the same protection as other hospitality businesses. Insurance can cover you for fire, theft and liabilities that come with selling food (for example, someone getting sick). You may need more than one type of insurance, so it's best to speak to an experienced insurance broker. You may require insurance for:
When it comes to public liability, make sure the cover is comprehensive. This is because a lawsuit could threaten the continuation of your business if you don't have appropriate cover.
All this can sound daunting, but operating a food truck can still be the fun, independent venture you thought it would be. Here's what you should keep in mind before starting your food truck business:
A food truck business can be rewarding and a vital part of your community. With the right amount of planning and research, you could get started in no time.
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