Food trucks as first-time commercial investments

Some people in Illinois might wonder whether a food truck represents a good first-time investment opportunity due to their lower costs compared to a restaurant. The sector is also growing rapidly. A food truck can be a sound commercial investment, but it is probably best for someone who is already passionate and knowledgeable about cooking and the food business.

While initial costs for opening a restaurant might range from $250,000 to $500,000, a food truck can be opened for as little as $25,000 to $115,000. This estimate includes the cost of the truck, staff salaries, licensing fees, insurance, commissary and initial inventory. Around 50 percent of food trucks make at least $200,000 annually.

An investor who intends to do the cooking eliminates the cost of hiring a chef. Furthermore, a food truck entrepreneur who has a background in the food business will have a better understanding of the market and thus a better chance of success. This includes understanding how to plan a menu, knowing what foods are best ordered from various suppliers and knowing what types of food are popular in a given locale. The bottom line is that a food truck may represent an excellent first commercial real estate investment for someone already experienced in the business but perhaps less so for a person uninterested in being hands-on.

A first-time investor in commercial real estate might be casting about for an option that is not too costly and presents a relatively low financial risk. The investor might also want to work with an attorney throughout the process to ensure that aspects ranging from contracts to zoning and development issues are dealt with appropriately. An attorney might also be able to advise on any disputes that may arise during the purchasing process.

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