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Starting a Mobile Coffee Cart Business
- May 10, 2025
- By Bernie Rosenstein
The Appeal of a Coffee Cart Business
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Low Startup Costs
Reduced Overhead
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
- 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
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
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.
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
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
- 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.