How Much Do Coffee Trucks Make?

If you’ve always been passionate about coffee, with its rich aroma and energizing benefits, starting a coffee truck business could be an exciting venture. A coffee truck isn’t just a fun food truck idea. It’s a chance to turn your passion into profits.

While 51% of people grab coffee weekly, not every truck owner cashes in. Some battle empty parking spots, pricey permits, or menus that just don’t click. Others lose sleep over quiet days or lose foot traffic to the café down the street.

So, let’s find out how much coffee trucks really make, what factors boost earnings, and how you can build a business that turns heads and turns a profit.

How much do coffee trucks make?

A well-managed coffee truck can enjoy a 15% to 20% net profit margin, which is higher than what traditional coffee shops make at 10%. The figure varies based on factors such as location, events, and operating hours.

Seasonal changes can also impact coffee truck sales. Colder weather may reduce foot traffic, leading to decreased sales. However, offering hot beverages like specialty coffees and hot chocolate can help mitigate this decline. Additionally, some regions have fewer events during winter, which can further impact revenue.

On the plus side, warmer weather often brings an increase in outdoor events such as markets, festivals, and weddings. Making the most of these events can help you save up for the slower months.

You can also introduce seasonal options, like iced coffees in summer and hot, flavored lattes in winter. This way, you can attract customers all year round.

Factors that affect coffee truck profitability

Factors like location, operating costs, and even menu design affect profitability for this type of restaurant. Knowing how you can leverage these for your coffee truck is key to succeeding in this niche.

1. Location

High-traffic areas such as business districts, farmers’ markets, college campuses, and events can boost your sales by providing a steady stream of potential customers. For instance, you can have your coffee truck near a busy downtown business district during morning rush hours to attract commuters seeking a quick caffeine fix.

To find the most profitable spots, scout different areas and observe foot traffic patterns at different times of the day and week. Testing locations during peak hours, such as early mornings and lunch breaks, can help determine where your coffee truck is likely to draw the most customers.

Additionally, participating in local events and festivals can help you reach larger crowds and increase sales. The trick is to build relationships with event organizers and local business networks so you can secure consistent event opportunities.

2. Operating costs

Managing operating costs is important if you want to keep your coffee truck profitable. These expenses typically include the cost of goods sold (COGS), labor, fuel, maintenance, permits, and insurance.

Restaurant cost of goods sold for a pizza place and coffee truck is usually lower than a full-service one because you have fewer menu items and simpler ingredient requirements. If it takes 25% to 35% of your revenue, you can expect to spend around $2,500 to $3,500 for revenue of $10,000 a month.

Meanwhile, quick service restaurant labor cost percentage, like for coffee trucks, typically falls below 30%. In the same example of $10,000 monthly revenue, expenses for wages, salaries, and benefits might range from $2,500 to $3,000.

Look for restaurant payroll software that lets you automatically track employee hours and distribute wages and tips. This tool reduces administrative overhead while ensuring accurate payroll processing. 

Regular vehicle maintenance and fuel are other ongoing expenses. Fuel costs can vary based on routes and distances traveled, while maintenance helps prevent costly repairs. You may need to allocate around $300 to $500 weekly for these expenses.

The costs for permits and licenses vary by location. Operating a food truck in Minneapolis can set you back $590, while it’ll cost around $2,439 and $17,066 in Los Angeles and Boston. You also need insurance to protect your business.

To put it into perspective, if your coffee truck earns $10,000 a month, account for these estimates:

• COGS (30%): $3,000
• Labor (20%): $2,000
• Fuel and Maintenance: $400
• Permits and Insurance (monthly): $150
• Total Expenses: $5,550
• Net Profit: $4,450

Improve your coffee truck’s profitability by tracking expenses and revenue. Check daily sales, know your peak hours, and adjust your strategy accordingly.

3. Menu design

Because coffee trucks have limited space to market to customers, menu design becomes crucial. A well-thought-out menu attracts customers and encourages higher spending per visit.

Highlighting high-margin items like brewed coffee, espresso, and hot chocolate can significantly enhance your profit margins. These drinks have relatively low production costs but can be sold at competitive prices because of their popularity.

A standard cup of brewed coffee might cost you around $0.50 to produce but can be sold for $3 or more, resulting in a gross profit margin of approximately 83%.

You can also offer add-ons such as flavored syrups, alternative milk options, and pastries to increase the average transaction value. Customers are often willing to pay extra for beverages and snacks they can customize to suit their specific tastes.

For example, adding a shot of flavored syrup or offering almond, soy, or oat milk can justify an additional charge of $0.50 to $1 per cup.

Implementing combo pricing, such as bundling a coffee with a snack at a slightly reduced price, can also encourage customers to spend more. You can create a “Coffee and Muffin Combo” for $5, when individually priced at $3 and $2.50, which makes customers feel they’re getting a good deal.

Lastly, use creative names for drinks or offer unique flavor combinations to make your menu more appealing. Additionally, create a visually attractive menu board with clear sections and readable fonts to enhance the customer experience and make ordering quicker.

4. Equipment and setup

Starting a coffee truck business requires a significant investment, which affects profitability, especially if you plan to pay for it monthly. A vehicle that has the necessary equipment will cost around $110,000.

Installing high-end equipment can bring the cost to $160,000 or more. Espresso machines can reach as much as $20,000 each, while high-end grinders are at $2,000. Drip coffee makers and cold brew systems can range between $1,000 and $5,000.

You also need refrigerators and freezers for milk, ice, and pastries. These can range from $1,000 to $3,000.

Coffee truck startup costs affect how long you can reach profitability. A more expensive equipment and setup means you need to earn more to break even. Consider opting for used machinery to reduce initial costs. Look for energy-efficient appliances as well to help lower ongoing utility expenses.

5. Time commitment

Running any business, including a coffee truck, takes up a huge chunk of your time, especially when you’re still starting out. Owners who personally manage their trucks and dedicate 30 to 40 hours per week often achieve better financial results compared to those who hire staff early on.

A hands-on approach allows for direct control over operations, customer service, and quality assurance, which can lead to increased customer satisfaction and repeat business.

Investing personal time into the business also helps reduce labor costs during the initial stages. By handling multiple roles such as barista, driver, marketer, and manager, you can minimize expenses while learning every aspect of the business.

A well-managed coffee truck operating five to six days a week with strong customer traffic could generate annual revenues between $150,000 and $250,000, which yield net profits of $50,000 to $100,000 after expenses.

6. Weather and seasonality

The weather can affect how many people visit your coffee truck because of its outdoor location. Heavy rain, snow, or extreme heat can deter customers from visiting outdoor vendors.

Seasonal changes also affect customer demand and revenue. Typically, coffee trucks see peak sales during spring and summer due to high traffic at outdoor events, festivals, and tourist locations. On the other hand, sales can dip by 30% during unfavorable conditions.

Look for opportunities to serve at indoor markets, conventions, or covered events during rainy or snowy seasons. You can also work with local delivery services to reach customers who prefer to stay indoors during bad weather.

As mentioned, you can tailor your menu offerings to suit seasonal preferences. Introduce iced beverages and light snacks during summer and offer hot drinks like specialty coffees and hot chocolate during winter.

Keep your customers informed about your location and any weather-related changes to your schedule through social media and your website. This way, they can still find your truck when cravings hit.

7. Marketing

Speaking of keeping customers updated, you need to invest in marketing to reach your target audience. Platforms like Instagram, Facebook, and Twitter let you showcase your coffee, share real-time location updates, and interact directly with customers. In fact, 75% of buyers find new coffee brands through social media.

Posting high-quality photos of your drinks and behind-the-scenes content regularly can create a loyal following. You can use these platforms to share daily specials or your truck’s current location so that customers can seek you out.

Don’t forget to optimize for local search as well. Create a Google Business profile and make sure you set your location accurately.

Another effective marketing strategy is to create a loyalty program to reward loyal customers and encourage them to continue buying your coffee. You can also collect email addresses and send newsletters, giving subscribers first dibs on your location and special promotions.

8. Events and catering

Being open to events and catering can help you earn more with your coffee truck. By offering specialized services for private parties, corporate functions, and public gatherings, you can secure lucrative deals that bring in money.

When setting rates for event services, consider factors such as event duration, guest count, and service level. On average, coffee catering costs range from $5 to $11 per guest.

Establish clear pricing structures, like hourly rates or per-person charges, to help clients understand the value you offer. Doing so also ensures you get compensated properly for the services rendered.

To tap into the events and catering market, reach out to local event planners and organizers. Present your coffee truck’s offerings by highlighting your unique selling points, such as specialty beverages and customizable packages.

Building relationships with event professionals can lead to recurring bookings and a steady stream of income.

9. Competition

Standing out is crucial to attracting and keeping customers. First, invest in branding. Create a memorable brand through an eye-catching logo and consistent color scheme.

A unique menu can also help you stand out. Develop one-of-a-kind drinks that set you apart from other coffee trucks and coffee shops.

Make ordering fun with witty names, like “The Caffeine Crusader” or “Morning Motivation Mocha.” These can pique customers’ curiosity and make your brand more memorable.

More than branding and a unique menu, exceptional service is still the best way to keep customers coming back. As long as you focus on delivering top-quality coffee and creating a positive customer experience, they’ll even be the ones to bring more people to your coffee truck.

Train your staff to be friendly, efficient, and knowledgeable about your menu offerings. Regular workshops can help employees stay motivated and provide excellent service consistently. 

How to forecast your coffee truck’s revenue

Forecasting your coffee truck’s revenue is important to set realistic sales targets and manage expenses. It can also help you convince investors if you’re looking for additional capital, since you have the numbers to confirm your business’ viability.

To estimate your revenue, use the formula:

Revenue = Average Transaction Value × Number of Transactions

This calculation helps you project potential earnings based on customer spending and sales volume. For example, if you serve 120 customers per day with an average transaction value of $6.50, your daily revenue would be:

120 customers/day × $6.50/customer = $780/day

Assuming you operate 30 days a month, your monthly revenue would be:

$780/day × 30 days = $23,400/month

Factors to consider when forecasting coffee truck revenue

As you forecast your coffee truck’s revenue, start by thinking about the number of operating days you plan to have each month. You should also estimate the number of transactions per hour, depending on where you park and the time of day.

The average ticket price is another aspect to consider, which is realistically between $4 and $8 to balance affordability and profitability. Don’t forget to plan for seasonal changes, too. Busy summer months with lots of events might bring in more sales, while colder or rainy months could slow things down.

Analyze foot traffic at your main location to predict the number of daily customers. Then, multiply the estimated number of customers by your average ticket price.

Make sure to subtract known expenses such as truck lease, labor, and fuel from your projected revenue to assess potential profit. Additionally, experiment with different pricing strategies, like offering coffee-only options versus coffee with food items, to see what maximizes sales.

Factors that help coffee trucks make the most money

Some coffee trucks rake in more cash than others because they’re strategic about their menu, location, and operations. Understanding factors that contribute to higher earnings can help you design a more profitable coffee truck business.

Premium menu

Offering premium beverages like espresso, cold brew, and specialty lattes can boost your coffee truck’s earnings. These high-margin drinks can make your menu more attractive, especially for those willing to pay more for quality.

Nitro cold brew is a great option to add to your menu. Its smooth, creamy texture and unique brewing method can justify a higher price point while offering margins over 55%.

Salted caramel macchiatos and pumpkin spice lattes are also viable additions, costing a little below two dollars to make. Meanwhile, you can set a price that’s around $5 to $6, yielding a margin of around 70%.

For non-caffeinated drinks, you can offer golden turmeric lattes and hibiscus berry iced teas. Highlight their health benefits and unique flavor profiles to justify premium pricing.

High-traffic locations and smart routing

Make sure to find high-traffic areas to improve coffee truck sales. Locations such as morning commuter routes, college campuses, and business parks are ideal, as they offer a steady stream of potential customers no matter the time.

For instance, coffee trucks parked in busy urban centers or near office parks can see up to 30% higher revenue compared to other areas.

Your coffee truck’s ability to move around is a significant advantage over traditional cafés. You can relocate to meet demand, attend events, and explore new markets with ease. This way, you can test different locations to find the ones that have the most customers.

Check how well your truck performs in each location so that you can implement a strategic route. If you find that staying near campuses and offices during weekday mornings works but not during afternoons, you may want to find a different spot later in the day.

Catering and event bookings

Catering and events provide you with additional income streams. You can charge between $250 and $500 per hour for private events, depending on factors like location, duration, and services offered.

For example, a two-hour event at a rate of $400 per hour can yield $800, which adds to your sales for the day. The best thing about events is that sales are a sure thing since clients often pre-book and pre-pay for services.

Corporate gatherings, weddings, and local festivals are prime opportunities. Make sure you establish good relationships with event planners and promote your unique coffee offerings to secure regular bookings.

Consider creating special event packages that include custom menu items or branded cups to make your service more attractive to potential clients.

Branding that draws a crowd

Every memorable coffee truck has clean signage, a consistent color scheme, and an eye-catching menu board. Your branding hinges largely on the type of coffee truck you have.

For example, a coffee truck with a vintage aesthetic can attract customers seeking a nostalgic experience. On the other hand, a modern, sleek design might appeal to tech-savvy professionals and younger demographics.

Consider your target market when designing your truck’s exterior. Use high-quality vinyl wraps, professional graphics, and a cohesive color palette that reflects your brand’s personality.

Invest in clear, readable menu boards and attractive display signage. Your visual identity should communicate professionalism, creativity, and the unique experience customers can expect from your mobile coffee business.

You should also be meticulous about your online presence. Maintaining consistency in branding across your truck, social media, and promotional materials reinforces your brand identity.

Active marketing and social media

Active marketing and a strong social media presence can boost revenue and build a loyal customer base. Post your truck’s location and special promotions on platforms like Instagram and Facebook to keep your customers informed and engaged.

You can share your schedule for the week ahead or announce surprise deals to create excitement and drive foot traffic.

Make sure to leverage user-generated content by encouraging customers to tag your truck on social media. Create unique hashtags that represent your brand and offer small incentives like a free drink for customers who share their experience online.

Owner-operated (at least at first)

Being hands-on with your coffee truck at the start helps you manage expenses by reducing the number of employees you need at first. Some owners choose a percentage-based salary, which is usually around 10% to 15% of net profits.

More than cost savings, this approach also offers direct interaction with customers, so you can provide personalized service. You can get first-hand insights into customer preferences, feedback, and potential improvements for your coffee truck business.

Coffee trucks should operate for around six hours daily to maximize efficiency and profitability. You can split these hours to focus on peak periods, such as morning commuter rush and lunchtime. This strategic scheduling allows you to capture the highest-demand periods while minimizing operational costs.

As your business grows and you become more familiar with its rhythms, you can consider hiring additional staff. By that time, you’ll have a clear understanding of your peak hours and customer expectations, allowing you to train employees effectively and maintain the quality of service that your customers have come to appreciate.

Simple, optimized operations

Offering a limited selection of high-demand items simplifies operations and reduces waste. You can focus on popular drinks like espressos and lattes for faster preparation and consistent quality. By doing so, you minimize inventory costs while providing fast and efficient service.

Organize equipment for easy access and pre-measuring ingredients to speed up coffee prep. Quick service increases customer satisfaction and allows you to serve more people during peak hours, boosting revenue.

Invest in modern POS systems to track sales and inventory in real-time. This way, you prevent over-ordering and reduce spoilage. It also shows you slow-moving items, so you can adjust your menu strategy.

It’s time to grind

If you’ve got a solid game plan and the drive to show up every day, a coffee truck can be one of the best ways to break into the food business. You’re not stuck paying rent like a brick-and-mortar shop, and you can move where the customers are.

The key is to treat your coffee truck like a real business and forecast your sales goals. Make sure to monitor your busiest hours and keep a close eye on expenses, like fuel, food, and labor.

Use cafe scheduling software to help you reduce unnecessary staffing costs. 7shifts prevents overstaffing during slow periods and makes sure you have enough people during busy times.

FAQ

Is a coffee truck business profitable?

Yes, a coffee truck can be a very profitable business if you run it the right way. Many coffee trucks earn between $6,000 and $20,000 or more each month.

After covering costs like supplies, labor, and gas, most truck owners take home around 15% to 25% of their sales as profit. Some make even more by keeping expenses low and focusing on high-margin drinks like cold brew or specialty lattes.

The key is choosing high-traffic locations, building a menu that makes sense, and managing your time and money carefully.

How much does it cost to start a coffee truck?

Starting a coffee truck can cost anywhere from $20,000 to $100,000 or more, depending on how big you go and what kind of equipment you use.

If you buy a used truck and basic tools, your startup costs might be closer to $30,000. But if you want a brand-new, fully equipped vehicle with commercial espresso machines and a high-end setup, the price can easily reach $100,000 to $160,000.

You’ll also need to pay for insurance, gas, and ongoing maintenance. If that sounds like a lot, remember that many truck owners start small with tents or carts to keep costs lower and grow over time.

Can you start a coffee shop with 100k?

Yes, you can start a coffee shop with $100,000, but it depends on what kind of shop you want.

If you’re going for a full-sized café in a high-rent area, $100,000 might not be enough once you factor in rent, buildout, permits, and staffing. A small, simple shop in a lower-cost location might be more doable.

But if you’re open to starting with a coffee truck, $100,000 is more than enough. In fact, many successful truck owners launch with less.

A coffee truck costs less than a brick-and-mortar café because you’re not paying for expensive real estate or extensive renovations. The lower overhead means more of your budget goes directly into quality equipment, marketing, and initial inventory.

Plus, a truck offers flexibility to test different locations and target specific markets without the long-term commitment of a fixed storefront. This mobility allows you to adapt quickly to customer preferences and optimize your revenue potential.

How to start a coffee truck?

The first step to starting a coffee truck is to make a business plan. Write down your goals, what drinks you’ll sell, your pricing, and where you plan to operate. Think about your target customers and how you’ll reach them.

Then, decide how much you can spend. Include your truck, equipment, permits, inventory, and some extra money for surprises. You can start with a used truck, a trailer, or even a coffee cart to save money. Just make sure it meets your city’s health and safety rules.

Get your licenses and permits, including a food truck license, health permit, business license, and maybe a commissary agreement (a kitchen where you clean and store supplies).

Create a simple menu before you buy equipment, so you know exactly what you’ll need to serve delicious drinks. Afterward, design your brand by choosing a name, logo, and investing in your truck’s exterior so it stands out.

Once you’ve planned and prepared, start promoting your coffee truck’s opening on social media. Post your location and operating hours to spread the word.

What equipment do I need for a coffee truck?

You need an espresso machine, coffee grinder, and a coffee brewer or pour-over setup to start your coffee truck. If you’re planning to serve cold brew, you also need to invest in one.

A refrigerator and freezer are crucial for keeping milk, cream, syrups, and food items fresh. You’ll also need at least a 3-compartment sink and a handwashing sink to pass health inspections. Don’t forget a generator or battery system to run your equipment if you don’t have access to electricity.

Lastly, invest in a POS system and restaurant scheduling software that integrates with your chosen POS tool. This way, you can track sales, manage inventory, and schedule staff easily.