Business Idea

Start A Catering Truck Business

About

Starting a catering truck business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell catering service, or selling catering service online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$1.3B
starting costs
$25.5K
gross margin
10%
time to build
24 months

About

Starting a catering truck business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell catering service, or selling catering service online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$1.3B
starting costs
$25.5K

 

gross margin
10%
time to build
24 months

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $0 $7,000
Employee & Freelancer Expenses $151 $252
Business Formation Fees $600 $5,400
Equipment & Supply Expenses $63 $700
Vehicle Expenses $2 $10,004
Retail Business Expenses $0 $3,150
Inventory Expenses $0 $5,000
Training & Education Expenses $0 $2,000
Website Costs $13 $215
Advertising & Marketing Costs $75 $2,486
Software Expenses $0 $225

Successful Businesses

Business URL Rank
Redbones redbones.com #3,001,953
Colonial CafeColonial Cafe – Home of the famous Kitchen Sink colonialcafe.com #3,809,315
Boston Burger Company bostonburgercompany.com #4,056,051
Eat Your Heart Out SD: San Diego Food Truck Catering eatyourheartoutsd.com #4,682,274
O.N.E. Hospitality Group onehospitality.group #5,038,203
Cielito Lindo Mexican Street Kitchen cielitolindomsk.com #8,267,968

Pros & Cons

Pros Description
Rewarding work Starting a catering truck business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
Gain exposure and experience This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!
Daily physical activity Catering Truck Business's typically involve a much greater degree of movement than other lines of work. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. This can have a positive impact on energy levels and your overall health.
Face to face interaction If you are the type of individual that thrives on human interaction, then this is the business for you! With a catering truck business, you will be hands-on with customers and or employees every day.
Strong Demand & Relatively Recession Proof The demand for catering truck business is increasing year over year and the business is known to be relatively recession proof.
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Security Issues With any Saas business, data loss and security issues may arise throughout your process of building your product. It's critical that you understand exactly what you're responsible for and how to avoid potential issues down the road.
Low margins The gross margins for your catering truck business are typically around 10%, which can make it more challenging to incur new expenses and maintain profitability.
High employee turnover In the catering truck business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Lack of benefits With a catering truck business, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming.
Isolation Often times, as a catering truck business, you typically work alone and do not have much face-to-face interaction with other team members.