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Are Food Trucks the Future for Entrepreneurial Immigrants?

If you stroll down any block in a major city, chances are high that you’ll encounter a food truck. These mobile food options sell almost any kind of cuisine you can think of—from old standbys like hot dogs and ice cream to upscale eats like Mexican birria tacos, Peruvian ceviche or authentic halal chicken over rice with the works.

But you might also find that that food truck is owned or operated by an immigrant. Now more than ever, food trucks have become an attainable way for hard-working immigrants to achieve financial independence.

According to a Bush Institute-SMU Economic Growth Initiative report, the food truck industry is “substantial and growing, with 35,000 active businesses in America’s cities and growth of more than 20% since 2019, due partly to pandemic-related restrictions on indoor dining.” The organization also notes that immigrants—who play a key role in the fast-growing mobile food segment—own about 30% of the country’s food truck businesses. More and more immigrants are finding success and financial freedom by serving dishes from their home countries on the road.

One such immigrant success story is that of Giuseppe Lanzone, cofounder and CEO of Peruvian Brothers Food Trucks and Catering. Lanzone originally came to the U.S. from Peru in 1997. In 2013, he and his brother Mario opened their first food truck. Peruvian Brothers offers authentic cuisine that ranges from ceviche and rotisserie chicken to empanadas and pan con chicharrón, a salted pork sandwich that is popular in Peru. 

Before starting his business, Giuseppe was an Olympic rower who represented the U.S. in the 2008 and 2012 games, while Mario had worked as a chef. 

“We wanted to start something together [but] didn’t know what to start. We thought… a little bar, a little restaurant,” Lanzone says. “And my mother goes, ‘Why don’t you start something smaller, like a food truck?’ So we decided to start a food truck.” He adds that one of the main reasons he and his brother got into the business was because they are “passionate about sharing [their food] with the culture in the U.S.”   

Based in Alexandria, Virginia, the nearly 12-year-old company has grown into an operation that now boasts four food trucks, as well as two restaurants: one inside La Cosecha Latin market in Washington D.C. and a recently opened restaurant at Amazon’s HQ2 in Arlington, Virginia. In addition, the company also makes its own rocoto pepper hot sauce.

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Practical tips for food truck owners

No matter what a food truck sells, there’s universally applicable advice that can keep sales humming along.

Lanzone says to be sure to do market research first. “You have to… [decide] what kind of cuisine you want to [serve]” and determine whether that cuisine will sell in your area, he says. 

One of the reasons he and his brother decided to start their food truck was that there weren’t many trucks serving Peruvian food in the D.C. area in 2013. Since 2020, he says, there are close to 1,000 trucks serving the area. Many of these trucks specialize in Peruvian food as well. 

Ben Goldberg, president and cofounder of the New York Food Truck Association, a trade organization that helps vendors sell year-round and maximize profits, says that some of the first things to think about as a new food truck vendor are the budget you’re working with, who you are selling to—either tourists or workers—and what food you plan to sell. 

Deciding on a cuisine—whether that’s high-end Mexican or halal or anything in between—is key, according to Goldberg. He also emphasizes the importance of choosing a cuisine that you can perfect. “The [food trucks] that I’ve seen that are the most successful in general are the ones that are very passionate about a very small subset, and they’re able to do that really well,” he says. “If you want to go for a great cheesesteak, you’re going to go to the guy or girl [who] makes the best cheesesteak.”

Mel Boganes, a retired NYC transit worker who sells ice cream, desserts and coffee in Westbury, New York, agrees that in order to be successful, “you have to know the area [and] what people like.” Echoing Lanzone, he adds that it’s important to do your research on the community you sell in and what cuisine sells best. Otherwise, “you’re not going to make a dime.”

As an example, he points to the area in Westbury where he currently sells desserts. Latin American and Muslim American people live there, so both tacos and halal food sell well. But his sweets “appeal to everyone,” he adds, which makes them something of an easy sale.

Boganes also says that the mobile food business is good for people who already have some business sense and know what it takes to run a business. He notes that many immigrants already have business knowledge from their country of origin, which makes the business a perfect fit.

What are the average startup costs for a food truck?

So what exactly does it cost to start a food truck business? As with any business, startup costs depend on several factors, such as the type of truck you’ll buy, the equipment you’ll need and the food you’ll sell.

Lanzone says that his and Mario’s initial investment was about $60,000 for the truck. But he also warns that costs can run as high as $100,000 because equipment determines individual costs. More sophisticated equipment, such as double ovens or fryers, results in higher costs. 

Goldberg says that $60,000–$120,000 is an accurate range for current food truck startups. He also notes that while costs have risen in recent years, they’re still much more reasonable than those for a brick-and-mortar restaurant in a big city like New York. Those costs could reach as high as $500,000, he says. 

Boganes’ initial investment was only around $3,000 for his truck, but that was back in 1975. Today, he says that same truck would be at least $30,000, in addition to the cost of products.

How much can I make from a food truck business?

According to food truck owners and experts, the specific numbers for food truck earnings can vary greatly. 

While Lanzone couldn’t share detailed profit margins, he says that individual profits will vary depending on how much you work and what products you sell. For example, if you work seven days per week, you’ll make more. Work less time, and you’ll make less.

Also reluctant to get into specifics, Boganes says that most food truck owners can make between $35,000 and $40,000 after taking overhead into consideration. “If you’re in the right spot, you can make over $100,000 easily,” he says. “Right product at the right time in the right place.”

Goldberg estimates that trucks can make profits that range anywhere from $50,000 per year to more than $100,000, depending on what foods they sell, how many locations they have and how much time they spend selling at events and street sales.

He adds that relying solely on street sales can be limiting, but catering for events like music festivals, concerts and comic book conventions provides more reliable streams of income for many vendors.  

The state you operate in also has an impact on how much you’ll make. According to foodtruckprofit.com, the top three states for food truck revenue in 2024 are New York ($492,545), California ($482,751) and Arizona ($443,130).

Where do food truck vendors buy their products?

Sourcing food can be tricky because it’s important to buy high-quality food at wholesale prices.

Lanzone explains that his business gets much of its food from wholesalers in New Jersey. “We have other suppliers as well that bring anything from the fish to the sausages,” he says. “The bread that we use is actually our own recipe that we have [a] bread factory make for us every day, fresh,” he adds.

Boganes gets most of his desserts and ice cream from specialized wholesalers as well.

What kind of permits do food truck vendors need?

Mobile food vending licenses are required in most municipalities across the country, and they are by no means uniform across America. Annual compliance costs can range from around $5,000 in cities with lax regulations to nearly $38,000 in cities with tougher rules, according to a 2018 U.S. Chamber of Commerce Foundation study.

Boganes says that in Nassau County, where he operates, vendors need to hold various types of licenses to sell food, including a certificate that enables them to buy wholesale food.

Goldberg also notes that the permitting process in New York City in particular is “pretty complex.”

What does it take to succeed as a food truck owner?

Boganes warns that most people who fail in business do so because they haven’t done the right research and don’t know what products to sell where and to whom. He adds that many food truck owners want to stay in the mobile food business—they’re not just looking to eventually move into a brick-and-mortar establishment.

Lanzone says that overall, people shouldn’t fall into the trap of thinking that owning a food truck is easier than running a traditional restaurant. “If you want to go into a food truck and actually make money and make it last,” he says, “you have to be ready to put in the work.”

Owning a food truck is still “not cheap,” Goldberg adds, but it is attainable and much more manageable than opening a restaurant. “The American dream is still very much there,” he says.

Photo courtesy of Peruvian Brothers

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