This Coffee Bike Earns $275 Per Hour with 70% Profit Margins - Side Hustle Nation

      Side Hustle Nation aims to enhance your personal profitability. To achieve this, we frequently collaborate with companies that share the same vision. If you sign up or make a purchase through our partners' links, we may receive compensation at no additional cost to you. Learn more here. Are you interested in starting a mobile coffee business without the expenses associated with a physical café? Vlad Priadko was not keen on signing a lease, hiring a team, or incurring the overhead of a coffee shop. He desired the profit margins from coffee without the physical location. Thus, he created a coffee bike — an espresso setup mounted on an electric-assist cargo trike — and began bringing coffee directly to the people. Eight years later, Coffee Bike has sold over 1 million cups of coffee and generated more than $3 million in revenue. Vlad has also built and sold 42 units to aspiring entrepreneurs and pitched his concept on Dragon’s Den.

      Tune into Episode 754 of the Side Hustle Show to discover:

      - How a mobile coffee business earns revenue

      - The most profitable events to target

      - Strategies for acquiring your first paying customers

      Quo (formerly OpenPhone) — Try it for free!

      Shopify — Sign up for a $1 per month trial!

      Gusto — Enjoy 3 months free of the leading payroll, benefits, and HR provider for modern small businesses!

      Indeed — Start hiring NOW with a $75 sponsored job credit to enhance your job posting!

      Monarch — Get an extended 30-day free trial!

      How Vlad's Mobile Coffee Business Began

      When Vlad conceived the idea, he didn't even drink coffee. Instead, he analyzed the numbers. Each cup sold for about $5 and cost around $1 in ingredients. Going mobile eliminated nearly all overhead, giving him a profit margin of 70-80% as a solo operator, compared to the 5-20% typical of retail coffee shops. At the age of 21, he ordered a cart from overseas without checking local regulations. The health department informed him that it wouldn't be approved, leading him to spend a year researching on YouTube and consulting handymen until he finally passed inspection. The cart was functional but not scalable.

      Note: In Vancouver, his requirements for a coffee bike closely resemble those for food trucks. In the U.S., some counties categorize smaller carts differently, with lighter regulations. Regardless, it's crucial to consult your local health department first!

      Transforming the Cart into a Coffee Bike

      The approved cart was cumbersome, with its weight positioned in front of the rider, obstructing his view and making it nearly impossible to tackle hills. The setup alone took him two hours every morning to transport the espresso machine from his car to the cart piece by piece. However, after serving customers in Vancouver for two to three months, Vlad realized that people loved the idea. The concept was sound; the execution just needed improvement. He then observed delivery trikes around the city with large cargo boxes behind the rider, rather than in front. He sketched a design in a notebook, attempting to fit all his coffee equipment into that cargo area. This transformation led to the creation of the coffee bike.

      Initial Costs of Starting

      Vlad mentioned that if you plan to build your own setup, you could do so with a budget of about $10,000. While it wouldn’t be perfect and would likely involve a lower-end espresso machine, you could create something functional. In contrast, the bikes he now produces represent an investment of $20,000 to $25,000 in equipment. This price difference factors into what he charges at events.

      Why Location Matters More than Foot Traffic

      Vlad built his first unit for a location he was confident would be successful, but it turned out to be a failure. The site was situated between a subway and a bus station, with thousands of hurried individuals passing through. No one wanted to stop between transfers. He put up a handwritten sign that read, “slow down, enjoy the cup of coffee,” but it had no effect. Consequently, he relocated two blocks to the next subway station, where people exited and headed to their offices. Sales increased fivefold. “Whatever you plan before making a commitment, real life is often completely different.”

      Creating a Regular Office Route

      Once Vlad identified the right neighborhood, he approached around 10 offices to propose a schedule:

      Office 1 – 10 to 11

      Office 2 – 11 to 12

      Office 3 – 12 to 1

      Only on Mondays, Wednesdays, and Fridays

      This limited availability generated scarcity, and people became excited when he arrived. Gaining entry was straightforward: be friendly to the first person encountered and identify who was in charge, usually the receptionist, who would announce the coffee visit via the office’s Slack or Discord. He also spent his evenings seeking contacts on LinkedIn and Facebook. Additionally, he maintained an updated weekly schedule and daily location