When we think of coffee businesses, traditional cafés are often the first that come to mind. These establishments have a fixed location, serving customers from the same spot. However, the rise of mobile coffee ventures, particularly coffee trucks, is changing the landscape. Coffee trucks offer operators the flexibility to reach a diverse clientele by moving to various locations and events. This model not only broadens their customer base but also allows entrepreneurs to enter the coffee market with a lower initial investment.
So, what does it take to launch a coffee truck business? And can these mobile operations achieve full profitability?
To gain insights, I spoke with Howard Gill, Head of Sales at Grind, and Anthony Duckworth, the owner of Dear Coco Street Coffee. Keep reading to discover their perspectives on coffee trucks and their potential for success.
Understanding Coffee Trucks
The food and beverage sector has long been familiar with mobile enterprises. In the United States and Europe, food and catering trucks gained popularity in the early 2010s, particularly after the 2008 economic downturn.
In reality, the concept of “street food”—where vendors sell meals and drinks in public spaces—has thrived for years in regions like Asia, Africa, Latin America, and the Caribbean.
Coffee trucks, however, represent a relatively newer business model. While they share characteristics with food trucks, coffee trucks are generally smaller, designed to house an espresso machine, grinder, and other compact equipment instead of a full commercial kitchen.
Similar to other mobile food businesses, coffee trucks come in various forms, including trailers, vans, kiosks, and even bicycles. Owners can either customize their own setups or purchase pre-equipped mobile coffee units.
To enhance operational efficiency, most coffee trucks are equipped with built-in boiler systems and waste storage, as well as electrical outlets for necessary appliances.
Over the years, several major coffee brands, including Intelligentsia, Starbucks, Costa Coffee, and Dunkin’, have introduced their own coffee trucks. While some of these trucks operate year-round, others were launched for specific marketing campaigns or seasonal events.
Additionally, it’s worth mentioning that not all coffee trucks are designed to be mobile. For some operators, establishing a fixed location may be more advantageous for cultivating a loyal customer base.
Why You Should Invest In A Coffee Truck Business?
One of the most compelling reasons to start a mobile coffee business is the significantly lower initial investment compared to launching a traditional café.
Howard, the Head of Coffee at UK roaster Grind, highlights this point. Since its founding in 2011, Grind has established eleven coffee shops and three coffee trucks in London. Initially, the company introduced its coffee trucks to serve events like the Soho House Festival, but due to high demand, they soon expanded to more permanent locations.
“It’s essentially a mini café,” he explains. “The mobility makes it easier to adapt to different venues, while still maintaining a strong focus on customer service, beverage quality, and efficiency.”
He also notes that setup costs are reduced, allowing operators to avoid the lengthy process of paying rent while decorating a physical space. “I’ve been genuinely surprised by how long we’ve been able to sustain this,” he shares. “It was thrilling to see our coffee truck at Spitalfields Market, and the support from customers has been incredible.”
Establishing a sense of community is vital for the success of mobile businesses like coffee trucks, as building a loyal customer base is crucial for their operation.
Anthony co-owns Dear Coco Street Coffee, a London-based coffee truck named after his youngest daughter. Although he always aspired to run a street coffee business, the pandemic prompted him to launch sooner than he had anticipated.
“One of the greatest benefits is the intimacy of the setup—it’s just a barista and a customer side by side on the street,” he explains. “There’s no barrier between us; we’re in this together, no matter the weather.”
He emphasizes that providing a specialty coffee experience on the street leads to unexpected moments of joy for customers.
Unlike traditional cafés, the weather significantly influences the experience with coffee trucks. “On sunny days, the truck is always busy,” Anthony notes. “However, when it’s gloomy, only the locals are willing to brave the elements to support us. If customers are unsure whether we’ll be there, they’re more likely to opt for their neighborhood café instead.”
Operators of coffee trucks frequently leverage social media to effectively share important updates with their clientele, such as operating hours and new menu offerings, which helps them establish a stronger presence in their local communities.
“After two years in business, we’ve become an integral part of the community, even though we drive away each day,” Anthony reflects. “We’ve turned into a gathering place—I had no idea how significant a role we would play in the community.”
Embarking On Your Coffee Truck Adventure
While the costs associated with starting a coffee truck are generally lower than those for opening a traditional coffee shop, they can still vary widely based on several factors:
- Whether you choose to buy or rent a vehicle
- The size and scale of your setup
- The level of customization you desire for your mobile coffee business
- The amount of equipment you need to purchase
- Whether you’re operating independently or as part of a franchise
For individuals interested in starting a coffee truck franchise, the initial investment is often significantly reduced, as franchises typically provide all necessary equipment, training, and ongoing support. This option is particularly appealing for those with limited experience in the coffee industry.
Anthony shares that he invested around £40,000 (approximately US $49,900) to launch his coffee truck business, noting that the process was relatively swift in his case. “It took about five months from the initial concept to the launch,” he explains. During this time, he acquired an Italian Piaggio Apè truck, equipped it with a La Marzocco Linea Mini espresso machine, obtained the necessary planning permission and street trading license from his local council, and established relationships with coffee suppliers.
Accounting for ongoing operational costs is crucial for both coffee trucks and traditional cafés to maintain profitability, but there are notable differences between the two.
“Our net profit margin is around 40%, compared to a typical net profit of just 5% to 10% for a coffee shop,” Anthony shares. “To ensure we provide the best coffee experience and attract top baristas, our payroll expenses are approximately 18%.”
He emphasizes the importance of compensating all team members with head barista wages, recognizing the challenges they face working alone or with limited assistance on weekends.
Howard adds that Grind’s operational costs for their coffee trucks are comparable, but successfully managing these mobile businesses requires a specific skill set. “The locations we operate in have generally been supportive in terms of licensing,” he explains. “However, running a coffee truck demands technical knowledge, as espresso machines need a significant amount of electricity and must be properly set up to function efficiently.”
Essential Considerations For Running A Mobile Coffee Business
While launching a coffee truck may appear simpler than opening a traditional coffee shop, the process comes with its own set of challenges. One significant limitation is that most mobile coffee businesses primarily provide takeaway beverages, which can restrict what operators can offer.
Baristas also need to adjust to a unique working environment. For instance, using taring scales can be difficult if the vehicle isn’t stable or lacks level surfaces.
Above all, weather plays a critical role in operations.
“Coffee is quite sensitive, so changes in temperature or humidity can impact the grind settings, requiring us to recalibrate multiple times throughout the day,” Anthony explains.
Due to the limited space in coffee trucks, owners must be particularly mindful of the beverages and products they choose to offer.
“We need to be selective in how we cater to our customers,” Anthony notes. “We can’t provide every option or the typical indoor comforts of a café. Our focus is on convenience and the overall experience, and we aim to deliver the latter. Being intentional about the experience we want to create is key.”
Starting a coffee truck typically requires less time than opening a traditional café, but Anthony emphasizes the importance of not rushing through the process or overlooking essential steps. This includes developing a solid business plan, consulting with local councils, evaluating the competitive landscape, and projecting sales figures.
“We all aspire to provide a remarkable, memorable, and unique specialty coffee experience, supported by excellent customer service that is both consistent and sustainable,” he explains. “Although coffee trucks present their own set of challenges, it’s crucial to concentrate on the key factors that drive success.”
While coffee trucks may never rival the popularity of traditional coffee shops, they certainly have a vital role in the market and fulfill an important need.
With adequate planning and preparation, operators can effectively launch and manage their own mobile coffee business.
“Ensure your coffee quality is top-notch, and then concentrate on everything else,” Howard advises. “Pay attention to your customer service and brand identity, and the rest will often fall into place.”