The debate many food entrepreneurs will have with themselves will be whether or not they should choose to start a food truck versus a restaurant. The debate starts and ends with some key factors: your startup capital, the scope of your menu, the amount of labor you need, and the type of experience you want your guests to have.
If you want low startup costs, a flexible location, and a smaller menu, then a food truck is your best bet. But if you’re looking for higher-earning opportunities and to offer a more classic dining experience for customers, then go with a restaurant. Below, we compare both so that you can make the best decision for your business.
Food Truck vs Restaurant: Pros & Cons
Twenty years ago, it would have been comical to some if you said you wanted to start a food truck. But with the rise of chefs such as Roy Choi and the food truck movement over the past few decades, it can sometimes make more sense to start within the food truck space. Opening a restaurant, on the other hand, can lead to long-term growth and more opportunities to make more income and have higher margins.
Let’s take a look at the pros and cons of each to determine which seems like the better option for you when comparing food trucks vs restaurants.
| pros | cons |
|---|---|
| Easy to expand and scale | Small space dictates a smaller menu and offerings |
| Low startup costs and maintenance costs | Logistics can be tough, especially for newer cooks/owners |
| Ability to meet customers in different locations and popular areas | Weather, poor foot traffic, and overcrowded zones can affect business greatly |
| The limited menu allows for a focus on one concept and core dishes | Local legalities can be a hassle to deal with |
| pros | cons |
|---|---|
| Long-lasting location to build your business around | Large startup costs can be a roadblock for new entrepreneurs |
| Ability to offer more variety in menu offerings and dining experiences | Higher costs associated with labor, overhead, and equipment |
| Higher potential margins on both existing business and expansions of business | Less flexible/tied to a singular location |
| More space to operate in, store food, and have your employees work in | Longer time to see a return on investment |
Food Truck vs Restaurant Costs
The costs we will go over below are estimates so that you can see on paper how the businesses stack up financially against each other. Your situation and the situation of other business operators can vary, but this rough look should give you an idea of what you are walking into and what you can expect with the cost of operating either business.
| Expense type | food truck | restaurant |
|---|---|---|
| Cost to purchase | $3,250–$300,000 | $160–$200/square foot |
| Rent | $500–$1,000/month/lot | $3,000–$6,000/month |
| Permits & Licenses | $1,500–$12,000 | $5,000–$20,000 |
| Food Cost | Low–medium cost | Medium–high cost |
| Labor Cost | Low cost | Medium–high cost |
| Maintenance | Low–medium cost | Medium–high cost |
| Customer Order Value | Low–medium | Medium–high |
| Ability to Acquire Liquor License | Only for certain events | Can be obtained for full-time use |
| Staff Training & Certification Cost | Low–medium Cost | Medium–high cost |
| Average Cost to Start | $50,000–$400,000 | $100,000–$2,000,000 |
On paper, it is pretty apparent that starting and operating a food truck is more cost-efficient. But what you make up for in cost, you can lose in menu diversity, liquor sales, and higher check averages. If you are low on startup funds or want to test a concept, then a food truck is a great business model. But if you have the funds and want to grow your food concept in a restaurant, then the opportunity for higher earnings will lie in that business model in the long run.
Food Truck vs Restaurant Menus
The key considerations for building out a menu for a restaurant vs food truck are how you can maximize your profit while keeping in mind the amount of space and labor you have in each setting. Below is a quick look at how menu creation should be viewed for each business type.
Restaurant Menu Considerations
- A restaurant menu offers different courses or opportunities for more customer add-ons and purchases.
- The menu should reflect the cuisine your business represents and should offer a diverse selection of appetizers, entrees, and desserts.
- Look at including alcohol pairings, cocktail menus, and wine lists to increase the overall customer average.
- Mix high-cost/premium-priced dishes with low-cost/high-selling dishes to even out the menu mix and ensure you are hitting revenue and profit goals.
- The menu can include prix-fixe options, a la carte add-ons, and premium additions (such as truffles). It can also include specials and other flexible menu additions.
Food Truck Menu Considerations
- Your food truck menu should be highly focused on your concept. If you are a gyro truck, then focus on serving gyros and side dishes for them. Do not stray too far, as you do not have the labor or space to accommodate highly complex and diverse menus.
- Your menu items should have as many base or crossover ingredients as possible due to limited space. Think of an avocado toast food breakfast food truck. The toast is the base, and the toppings can be changed.
- Keep additional menu options tight, concise, and limited to a few so your staff can prepare them urgently.
- All food should be easy to make at the moment and easy to prep beforehand so your truck can operate smoothly during service.
- Your main dishes should be profitable, as they will make up most of what your customers are purchasing.
It is important to know the limitations or differences in the menus. You may have a great concept, but if the concept is too large for a truck or too small for a full restaurant, then it is more likely to fail. Your menu determines how you bring in revenue, and your menu is dictated by the space you are working in. Be sure to consider your business plan, the type of food you are serving, and how broad your menu is before deciding on the specific model you will choose to serve food in.
Food Truck vs Restaurant Alternatives
There are many different routes you can take to becoming a food business operator. A restaurant is a great goal, but it can be cumbersome and take a lot of upfront capital and work to see a return on your investment. On the flip side, owning a food truck can come with quick returns financially, but can be limiting or may not serve the needs of the food you are trying to sell.
Below are some other options to consider beyond restaurants and food trucks.
- Ghost Kitchens: A ghost kitchen is a concept in which you manage one or more brands out of your space, ultimately serving your food via takeout only or through a food delivery app. These kitchens became very popular during the COVID-19 pandemic and were a way for food business operators to sell food without having contact with customers via a dining room. They are relatively inexpensive to set up, as you only need a space to produce the food and a way to deliver it. Because you can handle different brands, you can take on the work of bigger food companies that need more help within this type of food business.
- Catering Business: A catering business is another excellent way to flex your cooking skills and build your customer base without a lot of upfront costs or setup. I know so many chefs who left cooking school upon graduation and started a successful catering business. It gives you the tools to prep, plan, and execute for customers while also experimenting with food and getting intimate feedback on what works and what doesn’t. You can use catering as a stepping stone to a larger food business, or these businesses can be scaled to their own great size.
- Private Chef: One of the most underrated professions in the food world is the role of the private chef. Private chefs who work for premium clients can make a very good living for themselves while focusing on the needs of their clients. The life of a private chef can be tough, especially if you are expected to travel with your clients or adhere to their daily schedule. But the pay and experience to make your own food may be well worth it, and if you are required to travel, you can see major parts of the world as part of your job.
These three are great options to look at in the food industry, but there are so many more options the deeper you dig into what is available. For example, whole career paths can be built on restaurant and food business consultation. You can work in food manufacturing, either by making consumer packaged goods (CPG) at scale for your own smaller business or by applying your skills to a larger company. And there should be no surprise in the number of chefs and cooks involved in food media—myself being one of them. The opportunities in the food industry are endless, and you can go far as long as you understand your skillset and how to apply it in different sectors of the food world.
Frequently Asked Questions (FAQs)
Below are some of the most frequently asked questions I hear when discussing food trucks vs restaurants.
Last Bite
There are many positives to both owning a restaurant and managing a food truck. Both business models can yield great results, and both have their own unique challenges. In the debate of restaurant vs food truck, the ultimate winner for your personal needs will come down to the startup capital you have to invest in the business, the style of food and service you desire, your geographic location, and how fast you want to scale your food business. Either way, both are worthwhile businesses for any food professional to enter into.
