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Benefits and drawbacks of food trucks as investments

A food truck might be a good first-time commercial real estate investment for people in Maryland who have experience in the industry, but potential investors who are not interested in participating in the day-to-day aspects of running the business might want to look elsewhere. Running them can be time-consuming and may require an understanding of the food and restaurant business.

Food trucks can generate anywhere from $50,000 to upwards of $200,000 yearly, and around half of them make more than $200,000. Furthermore, their startup costs are low relative to a restaurant. It costs around $250,000 to $500,000 to start a restaurant. Starting up a food truck requires purchasing the truck itself, hiring staff, and paying for insurance and licensing fees along with a commissary and initial inventory. This all adds up to about $25,000 to $115,000.

A food truck owner who knows how to cook saves money on hiring a chef, but there are other reasons this is valuable. Running a food truck means keeping the right quantity of supplies on hand and knowing where best to get those ingredients. Planning a menu means understanding what foods can be kept hot or can reheat well and how they can be carried away by customers. A person with a background in the industry will also want to know what types of food will be popular locally.

An individual who is interested in commercial real estate might be looking for a lower-cost investment. Whatever investment decision they make, they might want to work with a lawyer throughout the process. Even an experienced investor may benefit from an attorney's guidance, and a legal professional might be able to deal with any issues that arise during the purchasing and ownership process.

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