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Guide
Food truck event fees: flat, percentage or both?
The three structures
Event fees almost always take one of these shapes. Ask the organiser which, and whether anything else (power, a deposit, a minimum) is on top.
- Flat fee: a fixed amount to take a pitch, however the day goes.
- Percentage of sales: a share of your takings, usually reported to the organiser afterwards.
- Hybrid: a smaller flat fee plus a smaller percentage.
A worked comparison
Take a day with food at 30% of takings, 2 crew for 8 hours at $36 an hour, and $80 of fuel. That is $656 of fixed cost before any event fee. The three offers are a $300 flat fee, 15% of takings, or $150 plus 8%.
| Day | Takings | Profit before fee | Flat $300 | 15% of takings | $150 + 8% |
|---|---|---|---|---|---|
| Slow day | $1,200 | $184 | −$116 | $4 | −$62 |
| Typical day | $2,400 | $1,024 | $724 | $664 | $682 |
| Strong day | $4,000 | $2,144 | $1,844 | $1,544 | $1,674 |
Example figures, not typical events. Your food cost, crew and takings are different, and the takings in each row are assumptions you should replace with your own history.
What the comparison shows
On the slow day ($1,200) the flat fee takes the day to −$116, while the percentage leaves $4: the percentage protects you when it rains. On the strong day ($4,000) the flat fee leaves $1,844 and the percentage leaves $1,544: the flat fee rewards you for a good day.
So the question is not which structure is cheapest, it is how confident you are in the crowd. If you trust the event to draw, a flat fee is the better deal. If you do not, a percentage shifts the risk to the organiser.
Work out your break-even takings
Break-even takings are the takings at which the day leaves you at exactly zero after every cost including the fee. In this example that is $1,366 for the flat fee, $1,193 for the 15% offer and $1,300 for the hybrid.
Divide by your average spend to see it as customers. At an average sale of $18, $1,366 is 76 customers. If the event has ever drawn you fewer than that, the flat fee is a bet you have already lost once.
Use the break-even calculator with your own fixed costs and your own average sale. The profit calculator does the same for a day that has already happened.
Questions to ask the organiser before you agree
- How many people attended last year, and how many trucks shared them?
- Is the fee flat, a percentage or both, and when is it due?
- How are percentage sales reported and checked?
- Is power, water or a pitch deposit extra?
- Is there a cap on the number of trucks, or an exclusive on what I sell?
- What happens if the event is cancelled or rained out?
Questions
Short answers
- How much do events charge food trucks?
- It varies by event, from a flat fee to a percentage of sales to a mix of both, and we do not publish an average because we have no source we could stand behind. Ask each organiser for the structure and any extras, then compare offers by the takings at which each one breaks even for you.
- Is a flat fee or a percentage of sales better for a food truck?
- A flat fee is better when you expect a strong day, because the organiser does not take a share of the upside. A percentage is better when the crowd is uncertain, because the fee falls on a slow day. Work out your break-even takings under each to decide.
- How do I know if an event is worth doing?
- Compare the takings you need to break even, after the fee and every other cost, with takings you have made at similar events. If the break-even is near the top of what you have achieved, the event is a bet, not a plan.
- What costs should I count before agreeing to an event?
- Food, crew hours (including set up and pack down), fuel and travel, the event fee, power or generator costs and any permit or deposit. Anything you leave at zero is a cost you will meet later.
Next
Do the sum with your own numbers
Use the food truck break-even calculator, or see how food truck event management software does it for every job.
- Also read: how to price food truck catering
- Also read: catering food cost percentage