How Much Does It Cost To Run An Indian Food Truck Monthly?

Variable Spend Requirements

• Target Cost of Goods Sold (COGS) for ingredients: Aim for 30% of revenue.
• Variable operating costs (propane, packaging, consumables): Estimate at 5% of sales.
• This means 65% gross margin must cover the $21,000 fixed costs.
• Minimum required variable spend to meet the $26,000 floor: $5,000.

Payroll Control Point

• Fixed monthly payroll stands at $12,750.
• This is a non-negotiable fixed overhead burden.
• Managing staffing efficiency is defintely key here.
• High fixed cost pressures daily sales targets significantly.

Actionable Focus

• Drive daily transaction volume up fast.
• Watch fixed overhead spending closely.
• Secure funding for the full $823k buffer.
• Every day under target increases risk.

Set Revenue Trigger Points

• Set a clear revenue drop threshold, say 10% below monthly target, to activate the cost review process.
• Adjust staffing schedules immediately if average daily covers fall below the level needed to cover fixed overhead.
• Review labor costs weekly instead of bi-weekly when performance is lagging to catch overspending early.
• Focus on optimizing shift coverage based on real transaction data, not historical averages.

Managing Labor Spend

Avoid over-staffing early; the food truck model demands high employee utilization. Misclassifying workers to dodge payroll taxes is a serious compliance risk you must avoid. Cross-train roles to maximize coverage. You must defintely manage scheduling.

• Keep FTE count at four initially.
• Verify all local wage laws compliance.
• Use scheduling software to track labor hours precisely.

Sizing the Space Cost

This $3,500 monthly budget covers the necessary licensed commissary kitchen or dedicated storage lot. You need quotes based on square footage and required utility access. This is a critical fixed overhead, sitting alongside $12,750 in payroll.

• Determine required cold storage volume.
• Verify utility capacity for truck hookups.
• Factor in 30% of total fixed overhead.

Managing Ingredient Spend

Since COGS is 100% here, optimizing ingredient sourcing is critical for margin right away. Negotiate bulk pricing with suppliers early on, especially for high-volume items like rice or staple vegetables. A 5% reduction here directly improves your gross profit margin.

• Lock in supplier contracts now.
• Minimize prep waste daily.
• Use menu engineering wisely.

Estimating Utility Spend

Budgeting $600 per month covers the core power needs of the mobile kitchen. This estimate relies on consistent daily operation of refrigeration units and standard propane usage for the Indian entree line. If you operate 22 days a month, that’s about $27 per day just for power and water.

• Electricity for POS and lighting
• Water for hand washing stations
• Propane or gas for cooking heat

Cutting Commission

You can’t avoid payment processing fees, but delivery commissions are often negotiable or avoidable. Pushing customers to direct ordering channels cuts these high third-party fees significantly. If you shift just 50% of volume to direct pickup, savings could approach $600 monthly.

Required Coverage

This $250 monthly allocation covers three critical insurance types. General liability protects against customer injury claims, commercial auto covers the vehicle, and property insurance protects the truck and its cooking gear. This is a fixed operating cost, not tied directly to your projected $41,463 monthly revenue.

• Get general liability quotes.
• Value the specialized truck assets.
• Confirm coverage for propane use.

Smart Promotion Tactics

Since marketing is 30% of revenue, focus on low-cost, high-impact local efforts. Avoid expensive mass media buys early on. Instead, use targeted digital coupons redeemable only at the truck. If onboarding takes 14+ days, churn risk rises from slow loyalty program adoption.