From 2018 to 2023, food truck businesses in the United States grew nearly 16%—in part because they offer consumers a way to eat unique foods at lower prices. The thriving food truck industry also provides food truck operators advantages like geographic flexibility and lower overhead than a brick-and-mortar restaurant. However, starting a food truck comes with many considerations, including startup and operational costs.
Learn more about the costs associated with starting and running a food truck business.
How much does a food truck cost?
The cost of buying or renting a food truck depends on several factors, including location and what features you want to add on. Here’s a general breakdown of the costs:
New
A new truck with a kitchen can range between $75,000 to $200,000. Wrapping, high-end kitchen equipment, and other custom alterations can drive up the cost. This is the priciest option and it can take months for it to be ready—but because it is new, you may run into fewer maintenance issues.
Used
You can buy a used food truck for about $50,000 to $100,000. You can also start with a used truck chassis and add a new kitchen for about $85,000 to $115,000. Both options may come with some mechanical issues, but you should still be able to start using your truck without much delay.
Rental
Renting a food truck can be a more cost-effective option since you don’t have to spend as much money upfront. You can rent a food truck for about $2,000 to $3,000 a month if you commit to a six-month lease. Shorter leases are typically more expensive. This is a good option if you want to test whether your food truck concept works without a large initial investment.
Food truck startup costs
Food trucks have similar startup costs as other businesses in the restaurant industry, with the costs fluctuating based on where you decide to start a food truck business. Not counting the truck itself, startup costs include the following:
Permits and licenses
Working in the regulated food industry means you need to acquire the proper food truck permit and licenses. According to the US Chamber of Commerce Foundation, permits and licenses can range from just under $1,000 to tens of thousands of dollars.
This figure changes from one city to the next. For example, a food truck operator will pay $590 in Minneapolis, $2,439 in Los Angeles, and $17,066 in Boston.
Kitchen equipment
Your food truck equipment costs might just include tools such as knives, cutting boards, pots and pans, food processors, blenders, and storage containers. If you are buying a used food truck, you’ll also need to replace or upgrade ovens, microwaves, and food prep surfaces to start serving customers. These costs can range from about $25,000 to $100,000 based on your needs and the condition of the used truck.
Generator
A generator can power your food truck. The size, features, and how much power it generates will affect the cost, which can range between $500 and $3,000.
Initial inventory
Initial inventory includes ingredients and serveware products like napkins, plates, and utensils. This will largely depend on the kind of food you are serving, but budgeting a few thousand dollars for initial inventory can be a good starting point.
Food truck operational costs
- Regulatory operating costs
- POS system
- Staff
- Maintenance
- Fuel
- Marketing
- Insurance
- Storage and parking
- Food
Regulatory operating costs
These annual expenses—which include insurance, taxes, and permits—keep food trucks legally compliant. The costs differ across cities. Portland, Oregon, comes in at the lowest, at $5,410, and Boston is the highest, at $37,907.
POS system
A point-of-sale system can have a fixed or monthly expense. It can cost up to $2,000 to install the hardware or software. For a software-based system, you might pay an additional $500 to $1,000 a year in subscription fees. POS systems also charge a flat fee or a percentage of sales to process payments.
Staff
Because of a food truck’s small space, you likely will have a smaller staff compared to a restaurant. According to the US Bureau of Labor Statistics, in 2023, the median pay for food and beverage serving and related workers was $29,710 per year, or $14.29 per hour. Cooks earned $34,320 per year, or $16.50 per hour.
Maintenance
Maintenance costs are harder to factor in because the state of your truck will dictate what you need. Putting money aside in case of an emergency can keep you prepared if the engine gives out or you need to replace the tires.
Fuel
This cost, which includes gas or propane, can vary from month to month depending on fuel prices. Unless you have an all-electric food truck, this is a necessary expense to power your equipment and drive your truck.
Marketing
Your marketing budget hinges on your goals, what sort of professionals you hire, and whether you hire a full-time or part-time in-house staff member or a contractor. For example, advertising, promotions, and marketing managers earned a median pay of $75.28 an hour in 2023, and public relations specialists earned $32.09 per hour.
Insurance
Since not all food trucks are the same, their insurance needs differ. However, insurance typically will include coverage for the vehicle and a business owner’s policy, which includes medical payments and bodily injury liability. There are also specialty insurance options that can cover spoiled food or damage to cooking equipment in the case of a power outage. For general liability and commercial auto insurance, a food truck operator will, on average, pay around $2,500 to $4,500 a year.
Storage and parking
Parking your food truck is another expense to take into consideration. Your location will determine how much you will spend each month. In California, for example, you must park your food truck at a designated food facility when it isn’t in use. A facility in Los Angeles might offer parking for a few hundred dollars per month, plus an additional few hundred dollars for freezer space and other food storage, if required.
Food
Food costs vary, but profitable restaurants usually spend anywhere from 28% to 40% of their revenue on this expense. The type of establishment—whether it’s an ice cream truck or a fast-casual restaurant—and the variety of ingredients you need will affect this number.
Tips for cutting down food truck costs
- Buy gently used equipment
- Take good care of your truck
- Plan your menu carefully
- Find the most efficient routes
Here are a few ways you can save money as a food truck operator:
Buy gently used equipment
New food equipment can be costly. Look for gently used tools that come at a lower price point that you won’t have to replace as quickly.
Take good care of your truck
Repairs can add up, but taking care of your truck with regular maintenance and safe driving habits can help you catch issues before they become a serious problem.
Plan your menu carefully
Buying seasonal produce or finding uses for food scraps (like making stock out of carrot peels and potato skins) can help you save money. By planning your menu strategically, you can ensure you are being thoughtful about what you buy and how you use it.
Find the most efficient routes
Stopping and starting your truck over and over again can expend more fuel. Find the most efficient routes and the best times to travel to use less gas.
How much does a food truck cost FAQ
What are the startup costs for a food truck?
The startup costs for a food truck include permits and licenses, kitchen equipment, a generator, and initial inventory. In total, these costs can range from tens to hundreds of thousands of dollars.
Is a food truck a good investment?
A food truck can be a good investment, but this depends on a variety of factors, such as local competition, permitting fees, and the cost of the food you plan on serving. Food truck owners can make their businesses more profitable by buying gently used equipment and maintaining their trucks to avoid expensive repairs.
What are the risks of opening a food truck?
There are several risks of opening and operating a food truck, such as collisions and food contamination (both of which insurance can help cover). There’s also the risk of the business plan not working out, but there are ways to mitigate the effects of this. For example, you can rent a truck for a few months to test whether your concept works.
