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Starting a Mobile Coffee Cart Business

  • By Bernie Rosenstein
Mobile coffee cart businesses are on the rise and more coffee carts are popping up in urban centers, business districts, and event spaces. There are several factors for this growing trend. Many entrepreneurial coffee enthusiasts who want to enter the coffee world of business find a coffee cart offers a low-cost accessible entry point to learn about the industry and the business. And as commercial real estate costs have continued to increase over the past few years, that has pushed more entrepreneurial-minded people to open mobile coffee businesses, including coffee carts, coffee trailers, and coffee trucks. Additionally, investing in a coffee cart provides existing café owners with a cost-effective way to expand their brand and community reach.
This guide will discuss why coffee cart businesses are appealing and explain the key planning, operational, and financial considerations for those interested in starting a coffee cart business. Many of the topics in this guide are covered in further detail in coffee cart business classes and barista training classes at the New Jersey Coffee School in Hoboken, New Jersey.

The Appeal of a Coffee Cart Business

There are many reasons why coffee cart businesses are appealing and continue to increase in popularity. Some of the advantages and benefits they offer include the following:

  • Low Startup Costs

Compared to brick-and-mortar coffee shops or mobile trailers and trucks, a coffee cart business requires significantly less capital to launch

  • Reduced Overhead

Mobile coffee cart businesses do not require significant long-term fixed costs like rent and spend less on staffing costs.

  • Mobility and Flexibility

  • The ability to move to different locations allows business owners to test demand in various markets and reach different customer bases
  • Coffee cart businesses can provide flexibility to sell coffee in many different settings, including outdoor locations, festivals, farmer’s markets, and private events (e.g., weddings, corporate events)

  • Community Engagement

  • A mobile coffee cart business has the potential to build a strong community presence
  • The cart business can provide personalised experience for those in the local community, creating brand loyalty from repeat customers and offers the ability to collaborate with local businesses
However, coffee cart businesses face some unique challenges as well. These challenges include the following:
  • Weather and seasonal challenges for outdoor locations
  • Obtaining licenses and permits and complying with local regulations which may be different for each location 
  • Lead time and physical demand associated with transporting, setting up and tearing down the coffee cart each day

Planning Your Coffee Cart Business

  • Initial Planning Steps

The initial planning for a coffee cart business is in many respects similar to the initial planning of any coffee business – owners need to determine their concept, target market(s), and plan their menu. It is also best to start a business plan early in the process.

  • Design and Obtain Your Coffee Cart

  • Understand the key components and features of the cart and how you would like to display your logo and brand
  • Ensure adequate power supply (e.g., generator) that can handle your equipment needs and determine the best source for your water
  • Decide if you want to build the coffee cart or purchase it from a vendor. Coffee carts (excluding the coffee equipment) generally cost only a few thousand dollars to build or buy although you can spend much more depending on the level of customization

  • Choose Your Coffee Equipment and Suppliers

Invest in a quality espresso machine, grinder and smallware brewing tools, and determine who will supply your coffee beans

  • Licensing and Permits

Research and ensure compliance with state and local regulations needed to operate your business, including various state and local business licenses, health department permits, food handling licenses, street vendor licenses, and location permits (if required). This is an area where you will need to understand the local municipal requirements for each area you plan to locate your coffee cart.

Also Read: Pro Tips For Running a Coffee Business

Operational Considerations

  • Choose Locations for Your Coffee Cart

  • Coffee cart owners typically want to seek locations with high foot or driving traffic that attract their target audience
  • However, there are several other factors to consider, include local zoning rules, demographics, weather and seasonal patterns, and nearby competition
  • As noted above, the business owner needs to understand and ensure compliance with local license and permit requirements and regulations when scouting out each location

  • Create a Marketing and Branding Plan

The initial planning for a coffee cart business is in many respects similar to the initial planning of any coffee business – owners need to determine their concept, target market(s), and plan their menu. It is also best to start a business plan early in the process.

  • Create Effective Business Processes

Business owners need to create effective systems for things such as inventory management, staff hiring and training (if required), and daily setup, cleaning, and tear-down procedures. Also, business owners need to ensure they have a cashless payment option.

Financial Considerations

If you manage to secure a good location and provide a high-quality product and superior customer experience, a coffee cart business can be quite profitable. This is partly due to the following factors:
  • Low startup costs – many coffee cart businesses can be launched with an initial investment of $10,000 – $20,000
  • Typically, there is a high profit margin on coffee beverages, generally 75-85% with the cost of goods sold being 15-25%
  • Reduced overhead costs as there is no fixed long-term rent
  • Event catering with large orders for weddings, festivals, or corporate events can also contribute to profitability

Coffee Business Courses

Business owners can benefit by taking a coffee entrepreneurship class, specialized coffee business courses, or by seeking advanced coffee business and barista training. At the New Jersey Coffee School, located in Hoboken New Jersey, our Mobile Coffee Cart Business Class goes into more detail about the topics mentioned in this guide and provides additional knowledge, strategies, and tools that can further assist a business owner to effectively launch and grow a coffee cart business.

Additionally, our Barista Training Level 1 and Level 2 Classes provide business owners and baristas looking to acquire the essential knowledge and skills to produce consistent high-quality coffee, espresso, and non-espresso-based beverages and would appeal to anyone opening a coffee cart business.

Summary

With the increased demand for high-quality, convenient coffee options, coffee cart businesses are expected to continue to grow. Whether you are an aspiring entrepreneur or a coffee enthusiast, the coffee cart movement is a trend worth considering. If you are passionate about coffee, a coffee cart business can be a rewarding venture.
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