food truck startup costs

Just as with all vehicles, different types of food trucks are going to command different prices. Your first decision is whether you want to purchase a roadworthy vehicle or a food "trailer" that you can tow to various locations. While a trailer will save you cash in the short term, don't forget you're still going to need a car capable of towing it and account for the related auto costs.

 If you are buying a "true" food truck, the price will depend on a variety of factors. The overall costs will largely rest upon whether you buy new or used, how many alterations or improvements to the kitchen setup you need to make, and how much you're going to need to spend on wrapping or adding decals to your truck for branding purposes.

Estimated Costs: $50,000 to $200,000

Wouldn't it be just great if you could load up your food truck full of supplies, find a busy street corner, and start selling? Unfortunately, it's not that simple. You need to make sure your food truck business is legal and compliant before you even think about starting to sell food. Business insurance, food service permits, code inspections, and food truck licenses are all necessary expenditures. What's more many of those are ongoing annual costs, not one-time fees.

 Here's what you can expect to pay for each element of meeting legal and regulatory requirements:

 Business registration - $75 to $150

Vehicle registration - $75 to $150

Foodservice permit - $250 to $1,000 per year

Fire safety permit - $125 to $150 per year

Food truck license/permit - $250 to $500 per year

Food truck parking/storage - $200 to $1000 per month

Event pitches - $500 per event

Insurance covering at least basic liability - $1500 to $4000 per year

Estimated Costs: $5,000 to $10,000

Now it's time to factor in perhaps the most crucial element, the food itself. Firstly, you'll need to base your first month's (30 days) inventory costings upon market research. Look at the areas that you want to serve and try to find out how many orders other food trucks are taking. When your business is well established, inventory costs alone will run into the tens of thousands each month.

 On top of the food inventory costs, you'll have to think about food preparation and storage costs. Many make use of a commissary kitchen, which is a shared commercial kitchen space used by multiple mobile food vendors for the preparation of food orders and storage of critical ingredients.

 This service will likely cost you in excess of $1,000 per month in most cities in California. Finally, there are associated supplies such as smallware (pots, pans, spatulas) and serveware (plates, bowls, eating utensils, napkins, etc.) that you'll need to acquire before opening day.

Estimated Costs: $4,000 to $8,000

While cash registers used to suffice in the early days of food trucks, not having a mobile POS system can sink your business before it even has a chance to get off the ground. Card payments in the US have exceeded cash payments for almost a decade, and with mobile wallets increasing in popularity, we are moving toward a cashless society faster than ever before. 

But a food truck POS system does far more than take several modern forms of payment. It organizes the orders through the truck's kitchen, allows for orders to be made online, and is capable of building out customer loyalty programs. Servers can even leave the truck and reduce wait times by taking orders from within the line via a handheld POS device during busy periods.

 Next, you'll have to make investments into other technological solutions such as accounting software, a professional website, an app with ordering capabilities, as well as investing in a business mobile phone, Wi-Fi network access, and payments hardware.

Estimated Costs: $2,000-$4,000

Of course, you're going to need help with the running of your food truck business, particularly if you start to build a reputation within your neighborhood of operations. While many food truck operators rely on themselves in the first instance, others invest in two or three staff members from the outset, before scaling as and when necessary later on down the line.

 For that reason, it's challenging to give an accurate estimate of labor costs, as each food truck business will have its respective aims and goals. But you should, at the very least, factor in paying yourself a wage. For those businesses with several employees slated to join from opening day, these costs will account for a significant proportion of your first month's expenses.

Estimated Costs: $2,000 to $10,000

After food prep and service are done for the day, where do trucks go at night? To a secure, city-approved location, that’s where. Many cities strictly regulate where food trucks can park, not only when they’re serving, but when they’re closed as well. 

If you have the space to store at home on private property, that’s certainly an option. But if not, many commissaries offer overnight parking for an additional fee. Be sure to consider this when shopping for your commercial kitchen space.

Estimated Costs: $500 to $1,000/ month

Serving meals on wheels is one thing. Prepping meals on wheels is another, and for the most part, it’s simply not feasible. 

Most food truck operators rent space at a commercial kitchen – a commissary – to prep and store food. In fact, commissary space is so essential to a food truck’s operations that many cities require proof of a commissary arrangement as part of their food truck application process.

Renting commissary space can run up to $1,500 month, usually incorporating both annual and hourly fees. Commissary kitchens serve many types of small food businesses, not just food truck operators, meaning they are popular places. In high demand markets, it’s not uncommon for commissaries to have a wait list.

If you find yourself competing for space, consider brokering an arrangement with other certified owners of commercial kitchen space. Restaurants, community centers, and even churches may have a certified kitchen that could be rented for food prep.

Estimated Costs: $1,500/ month

So you’re thinking of starting a food truck business but are not sure where to start. 

Well just like setting up a ‘regular’ restaurant, starting a food truck business requires planning and execution. With food trucks popping up all over, there is a definite upward trend in their number and popularity and to capitalize on that the best way possible, you will need a solid road map. 

Looking to start your own food truck business? Well, you're not the only one. The food truck business has been booming for years. After all, a food truck food business is a perfect stepping stone for food entrepreneurs who don't have the funds for a storefront yet and those who want a bit more of a flexible opportunity. But when it comes to opening a food truck, there are several things you need to know that is unique to this business model, like the zoning rules, licenses, and mindset. Cause remember, you're a food truck, not a restaurant! 

After moving to Tennessee, Jada and Nic Jones had a hard time finding wholesome, organic food options—so they decided to solve that problem by starting a food truck business. A year later, Hen House is one of the best food trucks in the Nashville area, bringing in an average revenue of around $30,000 a month.  A food truck business was a natural choice for Jada and Nic. Jada’s background is in wellness and nutrition, while Nic has more than 20 years of experience in the food industry.