Between 2018 and 2023, the food truck business in the U.S. will grow by nearly 16%One reason is that they offer consumers a way to eat unique foods at a low price. The thriving food truck industry also offers food truck operators benefits such as geographic flexibility and lower overhead costs than brick-and-mortar restaurants. However, starting a food truck requires a lot of considerations, including start-up and operating costs.
Learn more about the costs associated with starting and operating 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 your location and the features you want to add. The typical cost breakdown is as follows:
new
Prices for new trucks with kitchens range from $75,000 to $200,000. Wrapping, fancy kitchen equipment, and other custom changes can drive up costs. This is the most expensive option and may take several months to be ready. However, because it’s newer, there may be fewer maintenance issues.
Already used
A used food truck can be purchased for around $50,000 to $100,000. You could also start with a used truck chassis and add a new kitchen for around $85,000 to $115,000. Either option can result in mechanical issues, but you should be able to start using your truck without too much delay.
rental
Renting a food truck can be a more cost-effective option since it doesn’t require as much of an initial investment. If you commit to a six-month lease, you can rent a food truck for about $2,000 to $3,000 per month. Shorter lease terms typically cost more. If you want to test whether your food truck concept will work without a large initial investment, this method is perfect for you.
Food truck startup costs
Food trucks have start-up costs similar to other businesses in the restaurant industry, but costs will vary depending on where you start your food truck business. Besides the truck itself, initial costs include:
Permits and licenses
To work in the regulated food industry, you must obtain the appropriate food truck permits and licenses. American Chamber of Commerce FoundationPermits and licenses can range from less than $1,000 to tens of thousands of dollars.
This number changes from city to city. For example, food truck operators pay $590 in Minneapolis, $2,439 in Los Angeles, and $17,066 in Boston.
kitchen equipment
Food truck equipment costs may only include tools such as knives, cutting boards, pots and pans, food processors, blenders, and storage containers. If you buy a used kitchen truck, you’ll also need to replace or upgrade your oven, microwave, and cooktop before you can start serving customers. These costs can range from approximately $25,000 to $100,000, depending on your needs and the condition of your used truck.
generator
You can use a generator to power your food truck. Costs vary depending on size, features, and amount of power they produce, with prices ranging from $500 to $3,000.
initial stock
Initial inventory includes ingredients and serveware products such as napkins, plates, and utensils. This will vary greatly depending on the type of food you serve, but a good starting point is to budget a few thousand dollars for initial inventory.
food truck operating costs
Regulatory operating costs
These annual expenses, including insurance, taxes, and permits, keep food trucks legally compliant. Costs vary by city. The cheapest is his $5,410 in Portland, Oregon, and the most expensive is his $37,907 in Boston.
POS system
a POS system There may be a fixed or monthly fee. Hardware or software installation can cost up to $2,000. For software-based systems, you might pay an additional $500 to $1,000 per year in subscription fees. POS systems also charge a flat fee or a percentage of sales for payment processing.
staff
Because food trucks have less space, they may also have fewer staff members than restaurants. by US Bureau of Labor StatisticsIn 2023, the average salary for food and beverage service and related jobs was $29,710 per year, or $14.29 per hour. earned $34,320 per year or $16.50 per hour.
maintenance
Maintenance costs are difficult to factor in because the condition of your truck determines what you need. Having money set aside for emergencies will help you in case your engine breaks down or you need to replace your tires.
fuel
This cost, which includes gas or propane, varies from month to month depending on fuel prices. Unless you have an all-electric food truck, this is the cost required to power the equipment and drive the truck.
marketing
Your marketing budget will depend on your goals, the types of professionals you’ll hire, and whether you’ll use in-house staff full-time or part-time or hire contractors. For example, advertising, promotion and marketing managers. earned The median hourly wage in 2023 is $75.28, Public Relations Specialist earned $32.09 per hour.
insurance
Not all food trucks are the same and therefore require different insurance. However, insurance typically includes vehicle coverage and business owner insurance, which includes medical and personal injury liability. There are also specialized insurance options that can cover spoiled food and damage to cookware in the event of a power outage. For general liability insurance and commercial auto insurance, a food truck operator on average pays about $2,500 to $4,500 a year.
Storage and parking
Food truck parking fees are another cost to consider. Your location will determine your monthly expenses. For example, in California, food trucks must be parked at designated food facilities when not in use. Facilities in Los Angeles may offer parking for a few hundred dollars a month, and an additional several hundred dollars in freezer space or other food storage space if needed.
food
Food costs vary, but profitable restaurants typically spend 28% to 40% of their revenue on this expense. This number will vary depending on the type of business, such as an ice cream truck or a fast-casual restaurant, and the type of ingredients needed.
Tips to reduce food truck costs
Here are some ways you can save money as a food truck operator.
Buy gently used equipment
New food equipment can be expensive. Look for tools that don’t need to be replaced quickly, are inexpensive, and are gently used.
Treat your truck with care
Repairs can be costly, but taking care of your truck with regular maintenance and safe driving habits can help you catch problems before they become serious issues.
Plan your menu carefully
You can save money by buying seasonal produce and finding uses for food scraps (like making stock from carrot peels or potato peels). Strategically planning your menu allows you to carefully consider what you buy and how you use it.
find the most efficient route
Repeatedly stopping and starting a truck can consume more fuel. Find the most efficient route and best time to travel to reduce gas usage.
How much does a food truck cost Frequently Asked Questions
How much does it cost to start a food truck?
Food truck startup costs include permits and licenses, kitchen equipment, generators, and initial inventory. These costs can total from tens to hundreds of thousands of dollars.
Are food trucks a good investment?
A food truck can be a good investment, but it depends on a variety of factors, including local competition, permit fees, and the cost of the food you plan to serve. Food truck owners can increase the profitability of their business by purchasing frequently used equipment and maintaining their trucks to avoid expensive repairs.
What are the risks of opening a food truck?
Opening and operating a food truck comes with several risks, including collisions and food contamination (both of which can be covered by insurance). There is a risk that your business plan will not work out, but there are ways to reduce the impact. For example, you can rent a truck for a few months to test whether your concept works.
