Everything you need to launch a food truck business, from permits and health inspections to menu planning, truck outfitting, and finding your first locations.
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Business Planning
Define your food concept and target customer
The most profitable food trucks specialize in one cuisine type with a menu of 8-12 items. A focused menu reduces food waste, speeds up service, and makes your truck memorable. Study what existing trucks in your area offer and find the gaps.
Research what food types are underserved in your area
Test 3-5 signature dishes with friends and family
Create a startup budget and financial projections
A used food truck costs $50,000-$100,000. A new custom build runs $100,000-$200,000+. Add $10,000-$20,000 for permits, insurance, initial inventory, and marketing. Most food trucks need 12-18 months to break even.
Form your business entity and get your EIN
An LLC is the most common structure for food trucks, providing personal liability protection for $100-$500 in formation fees. Apply for your EIN immediately — you need it for bank accounts, permits, and tax filings.
Write a business plan for financing
SBA microloans ($10,000-$50,000) and food truck-specific lenders are common funding sources. Include your concept, target market, projected revenue ($250,000-$500,000 per year for successful trucks), and a 12-month cash flow projection.
Permits and Licensing
Get a food handler's certificate for yourself and all staff
Food handler certification costs $10-$25 per person and takes 2-4 hours online. Most states require all food service employees to have current certification. Certificates are valid for 2-3 years depending on your state.
Obtain a mobile food vendor permit from your city
Mobile food vendor permits cost $100-$1,000 per year depending on the city. Some cities limit the number of permits issued, so apply early. Processing takes 2-8 weeks. Check if you need separate permits for each city you plan to operate in.
Pass a health department inspection
The health inspector will check food storage temperatures (cold: below 41F, hot: above 135F), handwashing stations, waste disposal, and equipment condition. Schedule a pre-inspection walkthrough if your health department offers one — most will point out issues before the official inspection.
Get a fire department permit for cooking equipment
Propane-fueled trucks need fire suppression systems and annual fire department inspections. A commercial hood suppression system costs $3,000-$5,000 installed. Keep a fire extinguisher (Class K for kitchen grease) within reach of every cooking station.
Obtain a sales tax permit and business license
You must collect sales tax on food sold from a truck in most states (although some exempt prepared food). Register with your state's Department of Revenue before your first sale. Some cities require a separate business license on top of the mobile vendor permit.
Truck Purchase and Outfitting
Decide between buying new, used, or leasing a food truck
Used trucks ($50,000-$100,000) get you started faster. New custom builds ($100,000-$200,000+) take 3-6 months but match your exact needs. Leasing ($2,000-$4,000/month) preserves capital but costs more long-term. Inspect any used truck with a certified mechanic before purchasing.
Install required kitchen equipment
Your menu determines your equipment. At minimum you need: a commercial cooking surface, refrigeration, a prep area, a 3-compartment sink, a handwashing sink, and adequate ventilation. Budget $15,000-$40,000 for equipment if outfitting a bare truck.
List all cooking equipment required for your menu
Verify equipment meets health department standards
Install a point-of-sale system that works offline
Choose a POS that processes credit cards offline and syncs when reconnected. Cash-only trucks lose 30-40% of potential customers. Mobile POS systems cost $0-$50 per month plus 2.6-2.75% per transaction.
Design and install your truck's exterior wrap
A professional vinyl wrap costs $2,500-$5,000 and is the most visible marketing you will ever do. Include your truck name, logo, menu highlights, and social media handles. Make it readable from 30 feet away. Bright colors and bold typography attract more foot traffic.
Menu and Operations
Finalize a menu of 8-12 items with food cost analysis
Target food costs of 25-35% of the menu price. For a $12 menu item, ingredient cost should be $3-$4.20. Price your items by calculating ingredient cost, then dividing by your target food cost percentage. The average food truck ticket is $10-$15.
Establish relationships with 2-3 food suppliers
Always have a backup supplier for your core ingredients. Restaurant supply companies deliver 2-3 times per week and offer 15-20% lower prices than retail grocery. Negotiate net-30 payment terms once you establish a track record.
Secure a commissary kitchen for food prep and storage
Most cities require food trucks to operate from a licensed commissary kitchen for prep, storage, and waste disposal. Commissary rentals run $500-$2,000 per month. Some commissaries include cold storage and dry storage in the monthly fee.
Practice your service workflow with a timed test run
Time how long each menu item takes from order to handoff. Your target should be under 5 minutes per order during peak service. Practice the entire flow: order taking, cooking, assembly, and payment. Identify bottlenecks and adjust before opening day.
Insurance and First Service
Get commercial auto insurance for the truck
Personal auto insurance will not cover a commercial food truck. Commercial auto policies for food trucks cost $2,000-$4,000 per year. Make sure the policy covers both driving and stationary operation.
Get general liability insurance ($1M minimum)
General liability for food trucks costs $2,000-$4,000 per year for $1 million in coverage. Most event organizers and private lot owners require proof of $1-$2 million in liability coverage before allowing you to operate on their property.
Identify and book your first 10 operating locations
Start with high-foot-traffic spots: office parks at lunch (11 AM-2 PM), brewery taprooms in evenings, farmers markets on weekends, and local events. Aim to book 3-5 regular spots per week. Private lot agreements cost $0-$200 per day or 10-15% of sales.
Announce your launch on social media and local food groups
Post your locations and hours 2-3 days in advance. Food trucks live and die by social media — 70% of food truck customers discover trucks through social posts. Share behind-the-scenes content, daily specials, and your location schedule every week.
Frequently Asked Questions
How much does it cost to start a food truck business?
Total startup costs range from $50,000 to $200,000. A used food truck in good condition costs $40,000-$80,000, while a new custom-built truck runs $100,000-$175,000. Add $5,000-$15,000 for permits and licenses, $2,000-$5,000 for initial food inventory, $3,000-$8,000 for a POS system and generator, and $5,000-$10,000 for branding and signage. Leasing a truck ($2,000-$5,000/month) reduces the upfront investment but costs more over 3-5 years.
What permits do I need to operate a food truck?
At minimum: a business license ($50-$500), food handler's permit for each employee ($10-$35 per person), mobile food vendor permit from the city ($100-$1,000/year), health department permit with inspection ($200-$500), fire department inspection and permit ($100-$300), and a commissary agreement (required in most cities — your truck must operate out of a licensed commercial kitchen for prep and cleaning). Permit requirements and costs vary dramatically by city.
How much revenue does the average food truck make?
The average food truck generates $250,000-$500,000 in annual gross revenue, with a net profit margin of 6-9% (roughly $20,000-$45,000). Top-performing trucks in high-traffic cities can exceed $1 million annually. Revenue depends heavily on location, operating days (most trucks operate 4-6 days per week), and average ticket size ($10-$15). A truck serving 100-150 customers per day at $12 average ticket generates $1,200-$1,800 daily.
Where is the best place to park a food truck?
The highest-revenue spots are near office complexes (11 a.m. to 2 p.m. lunch rush), brewery and taproom patios (evening and weekend events), farmers markets and festivals (permit fees of $50-$500 per event), and university campuses. Many cities restrict where food trucks can park — some require you to be 200-500 feet from brick-and-mortar restaurants. Research your city's zoning laws and apply for parking permits before choosing locations.
Do I need a commissary for my food truck?
In most major cities, yes. A commissary is a licensed commercial kitchen where you prep food, store ingredients, clean equipment, and dispose of wastewater. Health departments require a commissary agreement as a condition of your mobile food vendor permit. Commissary rentals cost $500-$1,500 per month depending on the city and hours of access. Some commissaries also provide shared cold storage, dry storage, and parking for your truck overnight.