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How much does it cost to open a food truck?

This article was written by our expert who is surveying the industry and constantly updating the business plan for a food truck.

food truck profitability

Starting a food truck business requires substantial upfront investment and careful financial planning to ensure long-term success.

The food truck industry has experienced significant growth, but understanding all associated costs is crucial before launching your mobile food business. From purchasing and outfitting your truck to obtaining permits and managing ongoing operational expenses, every financial aspect needs thorough consideration.

If you want to dig deeper and learn more, you can download our business plan for a food truck. Also, before launching, get all the profit, revenue, and cost breakdowns you need for complete clarity with our food truck financial forecast.

Summary

The total startup cost for a food truck business ranges from $50,000 to $200,000, with most operators investing between $75,000 and $175,000 for a professional launch.

Monthly operating expenses typically range from $10,000 to $20,000, excluding loan payments, depending on staffing levels, menu complexity, and event participation frequency.

Cost Category Startup Investment Monthly Operating Cost
Food Truck Purchase & Equipment $50,000 - $200,000+ $2,000 - $4,000 (lease)
Licenses & Permits $500 - $3,000+ $50 - $300
Commissary Kitchen Access $1,000 - $4,000 $250 - $1,500
Initial Food Inventory $1,000 - $3,000 $4,000 - $8,000
Branding & Marketing Setup $3,000 - $10,000 $500 - $2,000
POS System & Processing $1,000 - $3,000 $60 - $400 + fees
Insurance (All Types) $3,000 - $8,000 (annual) $250 - $700

Who wrote this content?

The Dojo Business Team

A team of financial experts, consultants, and writers
We're a team of finance experts, consultants, market analysts, and specialized writers dedicated to helping new entrepreneurs launch their businesses. We help you avoid costly mistakes by providing detailed business plans, accurate market studies, and reliable financial forecasts to maximize your chances of success from day one—especially in the food truck market.

How we created this content 🔎📝

At Dojo Business, we know the food truck market inside out—we track trends and market dynamics every single day. But we don't just rely on reports and analysis. We talk daily with local experts—entrepreneurs, investors, and key industry players. These direct conversations give us real insights into what's actually happening in the market.
To create this content, we started with our own conversations and observations. But we didn't stop there. To make sure our numbers and data are rock-solid, we also dug into reputable, recognized sources that you'll find listed at the bottom of this article.
You'll also see custom infographics that capture and visualize key trends, making complex information easier to understand and more impactful. We hope you find them helpful! All other illustrations were created in-house and added by hand.
If you think we missed something or could have gone deeper on certain points, let us know—we'll get back to you within 24 hours.

What is the typical all-in startup budget required to launch a food truck business?

The total startup budget for a food truck business typically ranges from $50,000 to $200,000, with most successful operations launching between $75,000 and $175,000.

This comprehensive budget covers truck purchase or lease, kitchen equipment installation, permits and licensing, initial inventory, branding, insurance, and working capital for the first few months. The wide range depends primarily on whether you choose a used or new truck, your location's regulatory requirements, and the complexity of your menu and equipment needs.

New food truck operators should budget approximately 20-30% of their total startup capital as working capital to cover operational expenses during the initial months when revenue may be inconsistent. This buffer ensures you can maintain operations while building your customer base and establishing profitable locations.

You'll find detailed market insights in our food truck business plan, updated every quarter.

How much does a used versus new food truck cost, including outfitting it with kitchen equipment?

Used food trucks range from $30,000 to $100,000, while new custom-built trucks cost between $75,000 and $200,000 or more, depending on size and equipment specifications.

Truck Option Base Cost Range Equipment & Outfitting Total Investment
Used Truck (Basic) $30,000 - $60,000 $15,000 - $40,000 $45,000 - $100,000
Used Truck (Premium) $60,000 - $100,000 $10,000 - $30,000 $70,000 - $130,000
New Custom Build $75,000 - $150,000 $20,000 - $50,000 $95,000 - $200,000
Premium New Build $150,000 - $200,000+ $25,000 - $50,000 $175,000 - $250,000+
Lease Option (New) $2,000 - $4,000/month $15,000 - $35,000 Varies by term
Converted Vehicle $15,000 - $40,000 $25,000 - $60,000 $40,000 - $100,000
Trailer Setup $20,000 - $50,000 $15,000 - $40,000 $35,000 - $90,000

What are the average monthly costs for fuel, vehicle maintenance, and repairs?

Monthly vehicle operating costs for food trucks typically range from $1,000 to $2,200, including fuel, routine maintenance, and repair reserves.

Fuel costs average $500 to $800 per month, depending on your route density, driving distance between locations, and local gas prices. Food trucks that operate within a concentrated urban area generally spend less on fuel than those covering multiple cities or rural areas.

Routine maintenance costs run $500 to $1,000 monthly, covering oil changes, tire rotations, brake inspections, and preventive care. Setting aside an additional $200 to $400 monthly for unexpected repairs is essential, as food truck equipment experiences heavy daily use and component failures can occur without warning.

Regular maintenance schedules become critical for food truck operations since vehicle downtime directly impacts revenue generation. Establishing relationships with reliable mechanics familiar with commercial kitchen equipment can help minimize both costs and downtime.

How much does it cost to lease or buy a commissary kitchen or prep facility if required?

Commissary kitchen costs range from $250 to $3,000 monthly, depending on access level, location, and included services.

Hourly rental rates typically cost $15 to $50 per hour for basic prep space, making this option suitable for food trucks with minimal preparation needs. Monthly membership plans range from $250 to $1,500 and usually include storage space, basic utilities, and shared equipment access.

Full-service commissary packages cost $1,000 to $3,000 monthly and often include overnight parking, equipment maintenance, storage facilities, and sometimes even administrative support. Many food truck operators find these comprehensive packages cost-effective when factoring in the convenience and reduced liability.

Location significantly impacts pricing, with urban commissaries commanding premium rates due to real estate costs and demand. Some operators negotiate better rates by committing to longer-term contracts or off-peak hour usage.

business plan mobile kitchen

What are the licensing, health permit, and inspection fees for operating a food truck in the target city?

Licensing and permit costs typically range from $500 to $3,000 annually, with significant variation based on city regulations and business complexity.

Business licenses generally cost $50 to $500 annually, while mobile food vendor permits range from $100 to $1,000 per year. Health department permits and required inspections add another $100 to $1,000 annually, depending on local health department fee structures.

Fire safety certificates typically cost $25 to $500 annually, and some cities require additional permits for specific locations or events. Major metropolitan areas often have the highest permit costs, with some cities charging over $2,000 just for basic operating permits.

This is one of the strategies explained in our food truck business plan.

How much should be allocated for initial inventory of food, packaging, and cleaning supplies?

Initial inventory investment should range from $1,000 to $3,000 to stock your food truck for the first month of operations.

Food ingredients typically represent the largest portion, requiring $600 to $2,000 depending on your menu complexity and sourcing strategy. Fresh ingredients for gourmet concepts require higher initial investment compared to shelf-stable items for simpler menus.

Packaging materials including takeout containers, utensils, napkins, and bags typically cost $200 to $600 for initial stock. Cleaning and sanitation supplies, which are mandatory for health compliance, require another $200 to $400 initial investment.

Smart inventory management involves starting with smaller quantities of perishable items and building up stock levels as you understand customer demand patterns and establish reliable supplier relationships.

What are the expected monthly costs for food ingredients and restocking inventory?

Monthly food and inventory costs typically range from $4,000 to $8,000, representing approximately 25-35% of gross sales for most food truck operations.

Ingredient costs vary significantly based on menu type, with gourmet concepts using premium ingredients often reaching the higher end of this range. Simple menu concepts focusing on popular items like burgers or tacos can maintain food costs closer to 25% of sales.

Effective inventory management includes establishing relationships with multiple suppliers to ensure competitive pricing and reliable delivery schedules. Many successful food truck operators negotiate volume discounts and payment terms that improve cash flow management.

Seasonal menu adjustments and supplier flexibility become crucial for maintaining consistent profit margins as ingredient prices fluctuate throughout the year.

How much is required for branding, truck design, signage, and initial marketing efforts?

Branding and marketing startup costs typically range from $3,000 to $10,000 for professional food truck launch campaigns.

Truck wraps and exterior branding represent the largest expense, costing $2,000 to $10,000 depending on design complexity and vinyl quality. Professional logo development and menu board design add another $500 to $2,500 to the total investment.

Initial marketing materials including website development, social media setup, business cards, and promotional materials typically require $1,000 to $5,000. Many food truck operators invest in grand opening events and promotional campaigns to build initial customer awareness.

We cover this exact topic in the food truck business plan.

business plan food truck

What are the projected payroll costs, including wages, taxes, and insurance, for any staff?

Monthly payroll costs for food truck operations range from $2,500 to $8,000, depending on staffing levels and local wage rates.

Most food trucks operate with 2-4 staff members during peak hours, including the owner-operator. Entry-level food service positions typically start at $12-18 per hour, while experienced cooks or managers command $18-25 per hour in most markets.

Payroll taxes and worker's compensation insurance add approximately 10-15% to gross wages, so budgeting $2,800 to $9,200 monthly covers total labor costs including tax obligations. Many operators start with minimal staff and add team members as revenue grows.

Cross-training employees for multiple positions helps manage labor costs while ensuring operational flexibility during busy periods or staff absences.

What are the costs for setting up a point-of-sale system and managing credit card processing?

POS system setup costs range from $1,000 to $3,000 upfront, with monthly fees of $60 to $400 plus credit card processing charges.

Modern food truck POS systems include tablet-based interfaces, inventory tracking, and integrated payment processing. Monthly subscription fees vary based on features, with basic systems starting around $60 monthly and comprehensive restaurant management platforms reaching $400 monthly.

Credit card processing fees typically range from 2.5% to 3.5% of each transaction, representing a significant ongoing operational cost. Many POS providers offer competitive processing rates as part of integrated service packages.

Mobile connectivity and offline capability become essential features for food truck POS systems, as internet reliability can vary significantly between operating locations.

How much should be budgeted for business insurance, including liability, vehicle, and worker's comp?

Annual business insurance costs for food trucks typically range from $3,000 to $8,000, covering general liability, commercial auto, and worker's compensation insurance.

Insurance Type Annual Cost Range Coverage Details
General Liability $1,000 - $1,500 Customer injury claims, property damage, product liability
Commercial Auto $2,000 - $4,000 Vehicle damage, collision coverage, comprehensive protection
Worker's Compensation $1,000 - $2,000 Employee injury coverage, required in most states
Equipment Coverage $500 - $1,200 Kitchen equipment, POS systems, specialized tools
Business Interruption $300 - $800 Lost income during equipment failures or repairs
Product Recall $200 - $500 Costs associated with food safety incidents
Cyber Liability $200 - $600 Payment processing security, customer data protection

What are the expected costs for attending festivals, street events, or applying for vending spots?

Event participation costs range from $500 to $2,500 monthly, depending on event frequency and venue requirements.

Individual event fees vary from $100 for small local gatherings to $1,000 or more for major festivals and premium locations. Many events require advance booking and deposits, requiring careful cash flow planning throughout the year.

Annual festival permits and market participation can cost $200 to $1,200 yearly for regular spots at farmers markets or recurring events. Prime locations during peak seasons command premium pricing but often generate proportionally higher revenue.

It's a key part of what we outline in the food truck business plan.

business plan food truck

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.

Sources

  1. Square - Food Truck Cost
  2. Shopify - How Much Does a Food Truck Cost
  3. Upmetrics - Food Truck Startup Costs
  4. Sage - Food Truck Startup Costs
  5. Toast - How Much Do Food Trucks Make
  6. Foodship - Food Truck Cost
  7. Escoffier - How Much Does a Food Truck Cost
  8. Toast - Food Truck Monthly Expenses
  9. Square Canada - Food Truck Cost
  10. MenuTiger - Food Truck Equipment
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