Are Coffee Trucks Profitable?
Excited to start a food truck business but not sure what kind to start? Let us recommend that you consider a Coffee Truck for your entrepreneurial dreams.
Why a Coffee Truck?
Besides the fact that the coffee industry is worth over $100 billion across the globe and it is the second highest commodity in the world, coffee consumptions statistics show that Americans on average drink 3.5 cups a day. Annually, Americans will spend over $1,000 on this delicious beverage.
Coffee for All Ages
Statista 2019 report “Coffee drinking U.S. consumers by age group in 2018” shows that U.S. adults of all ages are enjoying coffee.
From their reporting, the percentage of coffee drinks in the various age groups are:
- 48% for 18-24 years. Locating your coffee truck near or on a college campus* would target this age group.
- 63% for 25-39 years.
- 66% for 40-59 years. Both this group and the previous group can be targeted by having your coffee truck near busy commerce parks*, downtown areas* and business centers*. Be the ‘easy-to-grab’ coffee vender on their way into work.
- 72% for 60 years and older. Research local senior events, centers, and adult communities to be the vendor at their next social to target this group.
*with proper permitting and permissions
More than an Average Cup of Joe
If you’re thinking, “I don’t want to just change the coffee filters and pour a cup of coffee every day.” Don’t worry. Coffee has expanded beyond your grandparent’s ‘best part of waking up’ cup. In “The Top Coffee Trends of 2019” WebstaurantStore.com shows that coffee is not boring.
Some of the trends this year include:
- Coffee Shakes & Flavored Coffee
- Ready to Drink (pre-made coffee in bottles)
- Social Conscience coffee drinkers prefer “Fair Trade” & “Sustainably Grown” coffee
- Cold Brew Coffee
- Nitro Coffee is part of the “craft brewing” trend using nitrogen gas
- Butter Coffee is inline with new diet trends
- Coffee Cocktails are great for the evening crowd (liquor license required)
Profitability for Coffee Trucks
Joffrey’s Coffee has their Orlando, Florida coffee truck positioned at Epcot Center. They average around 6,000 to 8,000 sales per day. As nice as that is, what about the coffee trucks that cannot land such an energized spot for high traffic sales? Well the average coffee truck that is out five days a week averages 800 to 1,000 sales per day of coffee sales alone. If they add on bagels, danish pastries, panini sandwiches, cookies or other upsell items like other coffee shops do, they can potentially double their sales.
Don’t forget there are cost saving benefits, too, when it comes to running a coffee truck as a business. Coffee has a longer shelf life than most food. This means that you save on bulk purchases and incur less waste. Additionally, you’re saving prep time with a beverage business if you purchase your upsell food items prepackaged. Time saved is money saved and more time to sell is more money in your till.
After you have proven your concept as a success, you can add your mobile coffee business to the food truck franchise world. Adding your brand across the nation and even the world.
Coffee is an integral part of the global culture. Starting a business with a sustainable product is just smart for creating a sustainable business.
Concession Nation has expertly designed food trucks and
concession trailers for a variety of businesses. Let us design your food truck.
Call us at 888-390-4479