Food trucks have become trendy and popular vendors for busy people on city streets, and offer unique alternatives to restaurants. Many food truck operators often have experience in the restaurant industry and cooking, and find that food trucks are less expensive than their brick-and-mortar counterparts. Other food truck operators are just great cooks, and their family and friends encouraged them to get into the business!
Both the food service and transportation industries are regulated, and food trucks meet at the intersection of those regulations. Operating a food truck requires the operator to comply with both with transportation and food safety laws at the same time, while also addressing the rules that govern food truck operation. Not only does the operator need to receive and maintain the appropriate licensing for the city of Baltimore and the state of Maryland, but the operator also needs to comply with the specific operating rules. Please visit the Department of Labor, Licensing and Regulation at http://www.dllr.state.md.us/ for requirements for your business.
Successful operators should consider the political, economic, social, technological, environmental, and legal issues that stem from their industry and should take time to examine the critical success factors and cost-drivers that impact the amount of revenue required to maintain the business.
The tables below depict the common issues and costs associated with operating a food truck.
| Political | Heavily regulated, varies by location | |
| Labor laws – ensuring that customer care rep is eligible to work in the US. Maintaining a safe work environment and compensating legally | ||
| Economic | People spending more or less money on going out for food | |
| Prices of food stock and produce | ||
| Fuel prices | ||
| Social | Food trucks are trendy but trends change by nature | |
| Brick and mortar restaurants can be unfriendly to mobile vendors | ||
| Competing for limited locations with other vendors | ||
| Technological | Food inventory management | |
| Handling money using different software applications | ||
| Advertising online/Using social media | ||
| Environmental | Waste must be disposed of properly, including water | |
| Fuel types for driving and cooking | ||
| Different fuel types for driving and cooking | ||
| The state of Maryland expects a statement from the operator about environmentally sustainable practices | ||
| Legal | Maintaining safe food handling practices | |
| Vehicle up to code | ||
| Baltimore City Street vendor license | ||
| Baltimore City Health Department food permit | ||
| Special events need additional licenses | ||
| Maryland State Motor Truck Peddler’s license | ||
| Operating in designated areas with sufficient distance from restaurants and space for pedestrians | ||
| Compliance with a variety of specific rules, such as parking and business hours | ||
| Parking and storage of vehicle outside of business hours | ||
| Critical Success Factors | Vehicle up to code, including sink for handwashing, waste water tank, refrigerator, adequate cooking space, and safety features | |
| Acquiring and complying multiple licenses and stringent regulatory standards | ||
| Major Activities | Associated Costs | Cost Driver |
| Cooking and preparing food | Wages for labor; cost of ingredients | Number of meals or food items prepared |
| Cleaning and maintaining storage and preparation areas | Wages for labor; cost of cleaning supplies | Number of food items to be stored |
| Storing food | Storage facilities (not on truck) | Number of meals or food items to be prepared |
| Maintaining vehicle(s) | Vehicle repairs (oil changes, etc). Cooking areas | Miles driven |
| Fuel for vehicle | Cost of driving and idling vehicle | Miles driven; gas prices |
| Fuel for cooking if not electric | Cost of other fuels not for driving | Number of meals or food items prepared; fuel prices (propane) |
| Employee Costs including benefits | Year One Cost per month |
| Owner | $ 3,500 |
| Book Keeper – Outsourced | $ 800 |
| Legal – Outsourced | $ 800 |
| Tech Support – Outsourced | $ 250 |
| Assistant | $ 2,400 |
| Wages Subtotal | $ 7,750 |
| Taxes, Fees | $ 1,163 |
| Subtotal | $ 8,913 |
| Supplies/Stock | |
| Food & Beverage | $ 1,500 |
| Cleaning Supplies | $ 100 |
| Napkins/Paper Towels/Straws | $ 100 |
| Subtotal | $ 1,700 |
| Office/Facility | |
| Vehicle Payment/Maintenance | $ 800 |
| Gasoline | $ 500 |
| Gas/Electric (deductible part of home) | $ 200 |
| Water (deductible part of home) | $ 100 |
| Internet/Telephone (deductible part of home | $ 100 |
| Office supplies | $ 50 |
| Automotive and Liability Insurance | $ 250 |
| Computers/Hardware | $ 100 |
| Vehicle Parking/Storage | $ 250 |
| Subtotal | $ 2,350 |
| Marketing Costs | |
| Web site hosting and advertising | $ 200 |
| Web site updates | $ 100 |
| Business Cards, Swag | $ 50 |
| Subtotal | $ 350 |
| Projected Monthly Costs | $ 13,313 |