Skill: 1kalin/afrexai-food-truck (version 1.0.0)

# Food Truck Business Operations Complete operational playbook for launching and scaling a food truck business. Covers menu engineering, pricing, permits, commissary kitchens, route planning, event booking, and growth from 1 truck to a fleet. ## Menu Engineering & Pricing ### Food Cost Targets by Concept | Concept | Target Food Cost | Avg Ticket | Items on Menu | |---------|-----------------|------------|---------------| | Tacos / Mexican | 28-32% | $12-15 | 8-12 | | BBQ / Smoked Meat | 30-35% | $14-18 | 6-10 | | Burgers | 28-32% | $13-16 | 6-8 | | Asian Fusion | 25-30% | $13-17 | 8-12 | | Pizza | 22-28% | $12-15 | 6-8 | | Desserts / Ice Cream | 20-28% | $8-12 | 8-15 | | Coffee / Beverage | 15-22% | $6-9 | 10-15 | | Vegan / Health | 28-33% | $14-18 | 8-10 | ### Menu Size Rule Keep it to 8-12 items MAX. Every item you add slows service, increases waste, and complicates prep. The best trucks run 6 items and crush it. ### Pricing Formula ``` Menu Price = (Ingredient Cost / Target Food Cost %) × 1.0 Example: $3.50 ingredients / 0.30 = $11.67 → price at $12 ``` ### High-Margin Adds - Drinks (80%+ margin): bottled water $2-3, canned soda $2-3, fresh lemonade $4-5 - Sides: chips $3, mac & cheese $4-5, coleslaw $3 - Desserts: cookies $3-4, churros $5-6 - Upsell combos: meal + drink + side = $3-5 more per ticket ## Startup Costs ### New Truck Build | Item | Cost Range | |------|-----------| | Used truck (turnkey) | $40,000-80,000 | | New custom build | $80,000-200,000 | | Wrap / branding | $2,500-5,000 | | POS system (Square/Clover) | $500-1,500 | | Initial inventory | $1,000-3,000 | | Permits & licenses | $1,000-5,000 | | Insurance (annual) | $2,000-4,000 | | Commissary deposit | $500-2,000 | | Generator (if needed) | $3,000-8,000 | | Fire suppression system | $3,000-6,000 | | **Total range** | **$53,500-234,500** | ### Trailer Alternative Food trailers run $20,000-60,000 — roughly half a truck. Trade-off: need a tow vehicle, harder to park in tight spots, but way cheaper entry point. ## Permits & Licensing (US) ### Required Everywhere - **Business license** — city/county, $50-500/year - **Food handler's permit** — per person, $10-25, ServSafe or equivalent - **Health department permit** — $200-1,000/year, requires inspection - **Fire department permit** — fire suppression system inspection, $100-300 - **Vehicle registration** — commercial plates - **Sales tax permit** — state-issued ### Varies by City/State - **Mobile food vendor permit** — some cities cap the number issued - **Commissary kitchen requirement** — most cities require you prep/store at a licensed commissary - **Parking permits** — specific zones, meters, or private lot agreements - **Special event permits** — per-event, $25-200 - **Propane use permit** — some jurisdictions require separate approval ### Cities Known for Tough Regulations Portland, OR — lottery system for downtown spots Boston, MA — very limited permits, long waitlists NYC — extremely expensive medallion-style permits Austin, TX — relatively friendly, lots of food truck parks ### Cities Known for Food Truck Friendly Policies Los Angeles, CA | Houston, TX | Denver, CO | Nashville, TN | Miami, FL ## Daily Operations ### Prep Day Timeline ``` 6:00 AM — Arrive at commissary, prep ingredients 8:00 AM — Load truck, check equipment, ice down 9:00 AM — Drive to location, set up 9:30 AM — Systems check: POS, generator, propane, water 10:00 AM — Open for service 2:00 PM — Lunch rush ends, restock if doing dinner 5:00 PM — Dinner service (if applicable) 8:00 PM — Close, clean, drive to commissary 9:00 PM — Unload, deep clean, prep for tomorrow ``` ### Daily Checklist - [ ] Propane tank level (swap at 20%) - [ ] Fresh water tank full - [ ] Grey water tank empty - [ ] Generator fuel and oil - [ ] POS charged and connected - [ ] Menu board clean and visible - [ ] Hand wash station stocked (soap, paper towels) - [ ] Thermometer readings logged (cold hold <41°F, hot hold >135°F) - [ ] Cash drawer counted - [ ] Social media post (location + hours) ## Route Planning & Revenue ### Location Types by Revenue Potential | Location | Avg Daily Revenue | Fee Structure | |----------|------------------|---------------| | Brewery / Taproom | $800-2,000 | Free or $50-100 | | Office Park (lunch) | $600-1,500 | Free-$100/day | | Farmers Market | $500-1,500 | $50-150 booth fee | | Festival / Event | $2,000-8,000+ | 10-20% of sales or flat $200-500 | | Food Truck Park | $400-1,200 | $500-2,000/month rent | | Private Catering | $1,500-5,000+ | Negotiated per-head | | Construction Site | $400-800 | Usually free | | Late Night (bars) | $500-1,500 | Free or $50-100 | ### Weekly Revenue Model (Single Truck) ``` Tuesday: Office park lunch $800 Wednesday: Brewery $1,000 Thursday: Office park lunch $900 Friday: Late night bar strip $1,200 Saturday: Farmers market AM $1,000 Saturday: Event/festival PM $2,500 Sunday: Brunch spot $800 -------- Weekly total: $8,200 Monthly (4.3 weeks): $35,260 Annual: $423,000 ``` ### Seasonality Index (% of Peak Revenue) | Month | Index | Notes | |-------|-------|-------| | Jan | 50% | Cold weather, post-holiday | | Feb | 55% | Still slow | | Mar | 65% | Starting to warm up | | Apr | 80% | Spring events begin | | May | 90% | Wedding/graduation season | | Jun | 100% | Peak season starts | | Jul | 100% | Peak | | Aug | 95% | Still strong | | Sep | 85% | Back to school | | Oct | 75% | Fall festivals | | Nov | 60% | Holiday prep | | Dec | 55% | Cold, but holiday events | ## Financial Benchmarks ### P&L Targets (% of Revenue) | Line Item | Target % | |-----------|----------| | Food cost (COGS) | 28-35% | | Labor (including owner) | 25-30% | | Fuel (truck + generator) | 3-5% | | Commissary rent | 3-5% | | Insurance | 1-2% | | Permits & licenses | 1-2% | | POS / payment processing | 3-4% | | Marketing | 2-3% | | Maintenance & repairs | 3-5% | | **Net profit** | **15-25%** | ### Break-Even Calculation ``` Monthly fixed costs: ~$4,000-6,000 (commissary $800, insurance $300, permits $200, truck payment $1,500, phone/POS $200, marketing $200, misc $500) Contribution margin: ~60% (after food cost + payment processing) Break-even monthly revenue: $4,500 / 0.60 = $7,500-10,000 Break-even daily (20 days): $375-500/day ``` Most trucks need $500/day minimum to survive. $1,000/day is comfortable. $2,000/day is thriving. ## Commissary Kitchen ### What You Need From a Commissary - Licensed commercial kitchen for prep - Dry and cold storage - Grease trap access - Overnight truck parking - Waste disposal - Health department approved ### Cost Range - Shared commissary: $500-1,500/month - Dedicated space: $1,500-3,000/month - Ghost kitchen rental: $2,000-5,000/month (overkill for most trucks) ## Growth: 1 Truck → Fleet ### Stage 1: Single Truck ($0-300K/year) - Owner-operated, 1-2 employees - Focus: nail the menu, build following, consistent locations - Reinvest everything ### Stage 2: Optimized Single ($300-500K/year) - 2-3 employees, owner steps back from daily cooking - Add catering revenue stream - Build SOPs so others can run the truck without you ### Stage 3: Second Truck ($500K-1M/year) - Clone the model — same menu, same SOPs - Different territory / different schedule - Hire a truck manager, not just cooks - Shared commissary, shared purchasing = better margins ### Stage 4: Fleet (3+ trucks, $1M+/year) - Central commissary for all trucks - Bulk purchasing (food cost drops 3-5%) - Brand licensing or franchise model - Consider brick-and-mortar as anchor location ### Key Metrics to Track - **Revenue per service hour** — target $150-300/hr - **Tickets per hour** — target 30-60 during rush - **Average ticket** — track weekly, push combos to raise it - **Food cost %** — weigh everything, price monthly - **Waste %** — track and reduce, target <3% of food purchased - **Social followers** — your free marketing channel - **Repeat customer rate** — loyalty cards, apps ## Marketing That Works ### Free / Low-Cost - Instagram + TikTok (post your location DAILY) - Google Business Profile (show up in "food trucks near me") - Yelp listing (free, people search it) - Text/email list — collect at every stop, send weekly schedule - Partner with breweries, offices, event planners ### Paid (When Profitable) - Instagram/Facebook ads ($5-10/day, geo-targeted) - Food truck finder apps (Roaming Hunger, Street Food Finder) - Sponsor local events for visibility ### The #1 Marketing Rule Post your location and hours EVERY SINGLE DAY on social media. The question "where are you today?" should never go unanswered. ## Common Mistakes 1. **Menu too big** — more items = more waste, slower service, confused customers 2. **Ignoring weather** — rain drops revenue 40-60%. Have backup indoor spots. 3. **No commissary plan** — operating without one is illegal in most cities 4. **Underpricing** — you're not competing with McDonald's. Charge what you're worth. 5. **Skipping maintenance** — a broken truck = zero revenue. Budget 3-5% for maintenance. 6. **No social media presence** — if people can't find you, you don't exist 7. **Bad location research** — one bad spot can waste an entire day 8. **No catering** — highest-margin revenue stream, most trucks ignore it --- *Built by [AfrexAI](https://afrexai-cto.github.io/context-packs/) — AI-powered business operations context for agents and founders.* *Need the full AI agent context pack for your industry? 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