You’re ready to go: Cart’s set, staff’s hired, menu’s planned, ingredients bought. But there’s one big question left: How much to charge?
Many food truck owners just copy what others charge. But that’s not always right. Your prices need to fit your business.
Why Pricing Matters
Pricing decides if your business makes money. Get it wrong, and you could lose profits—or even close.
Prices depend on two things:
- How much it costs to make the food
- How many people want it (e.g., charge more for a popular special dish)
Here are 10 easy ways to set the right prices.
1. List Every Cost
Write down all ingredients in each dish. Like ketchup, oil, spices....everything will be needed on the dishes. This shows how much you will spend on each dish. Keep portions the same for easy math.
2. Count Food Costs
Prices aren’t just about ingredients. Add the time it takes to make each dish.
Track:
- Cost per serving
- Things you can’t control (bad crops, spoiled food, price jumps)
- Your time making the food
3. See What Others Charge
Check other street vendors’ prices. Customers know what’s fair.
- High prices = people think your food is great
- Low prices = attracts deal-hunters
But don’t charge so little you lose money. Find a balance.
4. Break Down Small Costs
A good rule: Ingredients should cost no more than 1/3 of the price.
Example:
-
10 cupcakes cost 10 to make→1 per cupcake
- Charge 3x that → $3 per cupcake
Count tiny costs:
- Delivery fees
- Even a slice of tomato: 1 tomato = 25¢ = 8 slices → 2 slices = 6¢
5. Add Other Expenses
Prices need to cover more than food. Include:
- Staff pay
- Rent (for parking or storage)
- Ads
- Equipment costs
Example: If your cart is in an expensive area, charge a bit more to cover high rent.
6. Track What You Spend
First, guess costs to set prices. Later, check your actual spending (inventory, waste). Adjust prices if you’re losing money.
7. Value Your Time
Your work is worth money. If you undercharge, you’ll need extra jobs—taking time from your truck. Include staff pay in prices too.
8. Add Overhead Costs
Overhead = rent, taxes, marketing, etc. To find how much to add to each meal:
- Add up daily overhead
- Divide by how many customers you’ll serve
- Add that number to each meal’s price
9. Use the Factor Method
Most businesses use 30%: food costs = 30% of the price.
Formula:
- 100 ÷ target food cost % = your "factor"
- Food cost per serving × factor = price
Example:
- Target = 30% → 100 ÷ 30 = 3.33 (factor)
- Dish costs 1.50 to make→1.50 × 3.33 =
10. Try the Percentage Method
This is the most common way.
Formula: Food cost per serving ÷ target food cost % = price
Example:
- Cheeseburger costs $1.50 to make
- Target = 35% →1.50÷0.35=4.30 (charge $4.30)
Note: This doesn’t include labor/other costs. Keep food costs low to have money left!
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