How do I work out what I would earn from owning a food truck?

Online answers about what owners make vary widely, and none of them describes the truck in front of you. A better method is to work from that truck’s own records and adjust them for how you would operate it. This is a way to organize your numbers, not a forecast, and an accountant should check the result. The steps below suit a truck that sells on the street and at events.

Replace the seller’s unpaid hours

Many owners work long days without paying themselves a wage, so profit on paper looks better than the job really is. Ask how many hours the seller works each week on prep, driving, serving, ordering and bookkeeping. Then decide what you would pay someone, or yourself, for that work. Subtract it from the seller’s reported profit before you judge the business.

Count the days you cannot trade

Rain, cold, a mechanical fault or a cancelled event all mean a lost day. Ask for a calendar of trading days over a full year, not just the busy season, and see how many were missed and why. Ask whether the seller has a reliable backup arrangement for repairs. Your estimate should rest on days the truck actually opens.

Costs that follow the truck around

List the recurring costs of operating: commissary or prep kitchen fees, event and market fees, fuel, insurance, repairs, propane and supplies. Check them against the seller’s statements and receipts. Ask which costs are paid in cash or not recorded. A missing cost makes the results look stronger than they will be for you.

Loan payments and what is left

If you are financing the purchase, add the payments on the vehicle and any other loan. Your take-home is the wage you set for your own hours plus what remains after wages, costs and payments. If it does not support your household, that is useful to learn before you commit. A lender or accountant can help you test it.