I'll be honest - your fixed costs will eat you alive if you don't plan for them. Most new operators obsess over ingredient prices while completely ignoring truck depreciation, insurance, and pitch rentals. These two cost types work differently and understanding them determines if you'll survive your first year.
What are fixed costs for a food truck?
Fixed costs hit your bank account every month regardless of sales volume. You can't escape them by staying parked.
- Truck depreciation: The decrease in value of your vehicle
- Insurance: Third-party, comprehensive and business liability
- MOT and road tax: Mandatory costs for the road
- Phone and internet: For payments and GPS
- Basic insurance: Business liability and legal protection
💡 Example fixed costs per month:
- Truck depreciation: €800
- Insurance: €350
- MOT and road tax: €75
- Phone: €45
- Admin software: €30
Total fixed costs: €1,300 per month
What are variable costs for a food truck?
Variable costs fluctuate with your sales volume. Busy Saturday? Higher costs. Slow Tuesday? Lower costs.
- Ingredients: Food cost of your dishes
- Fuel: Diesel for driving and generator for power
- Pitch costs: Rental of your spot at market or event
- Packaging: Containers, cups, cutlery, napkins
- Gas: For cooking and keeping warm
💡 Example variable costs per day:
At 100 portions sold:
- Ingredients (30% food cost): €240
- Packaging: €35
- Fuel: €25
- Pitch: €50
- Gas: €15
Total variable costs: €365 per day
Why this distinction matters
Understanding fixed vs. variable costs shows you exactly where your break-even point sits. From years of working in professional kitchens, I've seen too many operators focus only on food costs and wonder why they're broke despite busy days.
⚠️ Watch out:
Many food truck entrepreneurs only calculate ingredients and forget fixed costs. Then every sold dish seems profitable, but at month's end there's nothing left.
Break-even calculation for food trucks
Your break-even point equals fixed costs divided by contribution margin per dish. Simple math that saves businesses.
Formula: Break-even = Fixed costs / (Selling price - Variable costs per dish)
💡 Example break-even:
Fixed costs: €1,300/month
Average selling price: €8.50 excl. VAT
Variable costs per dish: €3.65
Contribution margin: €8.50 - €3.65 = €4.85
Break-even: €1,300 / €4.85 = 268 dishes per month
Optimizing cost structure
Variable costs respond to your decisions faster than fixed ones. You can't easily change insurance premiums, but you can definitely improve ingredient purchasing.
- Lower food cost: Better purchasing, less waste
- Efficient routes: Less fuel through smart planning
- Better pitches: Higher sales justify higher rent
- Packaging costs: Buying in larger volumes
Fixed costs need annual reviews. Check insurance rates, consider upgrading to a more fuel-efficient truck, and renegotiate contracts where possible. Software tools help track both cost types automatically.
How do you calculate fixed and variable costs? (step by step)
Make a list of all monthly costs
Write down everything you pay every month: depreciation, insurance, road tax, phone, software. These are your fixed costs.
Calculate costs per sold dish
Add up: ingredients, packaging, fuel and pitch costs per portion. These are your variable costs per dish.
Determine your break-even point
Divide your monthly fixed costs by your contribution margin per dish (selling price minus variable costs). This gives you the minimum number of dishes you need to sell.
✨ Pro tip
Track your break-even point weekly during your first 3 months. With €1,300 monthly fixed costs over 20 working days, you need €65 daily contribution just to cover basics.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
What if I rent my truck instead of buying it?
Then the rent becomes a fixed cost instead of depreciation. The principle stays the same - you pay this amount every month regardless of sales volume.
How often should I update my cost calculation?
Review variable costs quarterly since ingredient and fuel prices fluctuate regularly. Check fixed costs annually when insurance renewals and tax changes occur.
Are pitch costs always variable?
Not always. A permanent market stall with monthly rent is fixed. Daily event fees or commission-based pitches are variable costs.
Should I count my own labor as a cost?
Absolutely. Calculate at least minimum wage for yourself, otherwise you won't know if your truck is profitable or if you're working for free.
What if my variable costs exceed 60% of revenue?
You're in dangerous territory. Either reduce food costs through better purchasing or increase prices. Above 60% leaves too little for fixed costs and profit.
Do fuel costs count differently for generator vs driving?
No, both are variable costs that increase with business activity. Generator fuel varies with service hours, driving fuel with location changes and events.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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