There has never been a better time to start a food truck business; in fact, the number of food trucks grew by almost 10% from 2022 to 20231. If you’re looking for a money-making business idea, a food truck is a great one. Successful food trucks can bring in more than $500,000 per year, with startup costs from $40,000–$200,000.
Starting a food truck typically takes three to 12 months and requires the nine steps below. Download our checklist to help you stay on track.
Step 1: Research Local Food Trucks & Laws
When starting your food truck business, it’s essential to make sure you are filling a hole in the market, supplying a demand, and operating within the law. So, you should evaluate the food truck scene in your area and research local food truck laws and regulations. This information will help you decide if a food truck is the best-fitting business for you to start.
When evaluating your local food truck scene, make sure you do the following:
- Evaluate existing trucks: Note popular cuisines and price points, serving hours, and popular selling locations. This will help you develop a truck that fits your market.
- Research local food truck laws: Some areas have generous food truck regulations, while others are so restrictive that it seems they don’t want trucks at all. Call your local health department and county or city clerk’s office to find out what permits you need and what parking restrictions to comply with.
- Check the availability of commercial kitchens: In most locations, food trucks are required to contract with a commercial kitchen to prepare and store food.
- Look for food truck parks: Truck parks indicate that an area welcomes trucks and helps potential customers locate you.
Introduce yourself to truck owners and ask them about their biggest operational challenges. You‘ll find that most are eager to share their knowledge with an up-and-coming food trucker. One of the best aspects of food truck communities is the camaraderie and support of other truck operators.
Step 2: Choose a Menu, Name & Logo
Food trucks are known for their clever remixes and personal flair. The most successful food truck concepts reflect their owner’s interests and personal experiences. Consider the popular Las Vegas truck Buldogis, which serves Korean-inflected gourmet hot dogs that reflect the owners’ American and Korean backgrounds. Start with your menu, and your name and logo should naturally follow.
- Read our menu development guide for tips on creating your food truck menu.
Step 3: Register Your Business & Open a Bank Account
When starting a food truck, you’ll need to create a business entity and register with your state. For most food truck operations, a limited liability company (LLC) makes the most sense. It protects your personal assets in the event of a lawsuit or business bankruptcy and shows vendors, insurers, and permitting agencies that your business is legitimate.
Filing fees vary from state to state, but forming an LLC isn’t necessarily expensive. Costs range from $40 to $500, and you can find the forms you need on your state’s business office website.
Open a Business Bank Account
You’ll need to separate your personal finances from your business finances by opening a business bank account. This account will hold funds invested in your food truck and be used to pay permitting, licensing, and vendor fees. When your truck is up and running, your credit card deposits will run to this account, and you will pay employees and suppliers from it. You can inquire about business banking options at the bank that handles your personal banking.
Step 4: Raise Funds for Your Food Truck
Starting a food truck business can cost anywhere from $40,000 to $200,000, depending on your location, the cooking appliances you need, and the type of truck you purchase. The tables below give you a rough estimate of the itemized costs involved in starting a food truck business. Click the tabs to view one-time and recurring food truck costs.
Food Truck Business Estimated Startup Costs
ITEM | APPROXIMATE COST |
---|---|
Purchasing a Food Truck | $5,000–$125,000 |
Vehicle Inspection | $100–$500 |
Retrofitting and Repairs | $25,000–$50,000 |
Generator | $1,500–$10,000 |
POS Hardware | $500–$1,500 |
Paint or Truck Wrap | $1,000–$5,000 |
Initial Food Purchases | $500–$2,000 |
Utensils and Paper Goods | $500–$2,000 |
Website Design | $500–$3,500 |
Initial Office Equipment and Supplies | $200–$1,000 |
Advertising | $500–$2,000 |
Professional, Legal, and Consulting Fees | $500–$2,000 |
The first step to raising the funds you need to start a food truck is writing a business plan.
Write a Food Truck Business Plan
Like any other business, your food truck will need a well-prepared business plan if you want it to succeed. Your business plan puts your concept on paper so potential investors and loan officers can see that your food truck is a good investment. Having a food truck business plan gives you a better understanding of how long it will take for your food truck to turn a profit and what funds you need to sustain your business until that point.
Food Truck Funding Options
Most people don’t have immediate access to the capital required to start a food truck, so financing your food truck business will be an essential step. Most lenders require a business plan before issuing a loan, so be sure to have your thorough plan ready, along with the amount you need and your credit history.
Here are some financing options available for aspiring food truck owners:
- Equipment loan/financing program: Some truck sellers or equipment financiers will loan to you to purchase the truck.
- Rollover for business startups (ROBS): If you have more than $50,000 in a retirement account, you can set up a ROBS, which will allow you to use the funds in your retirement account to fund your business without paying early withdrawal penalties.
- Business credit cards: If you are good at paying off debt, a business credit card may be a good option.
- Personal loan: This is a good option if you have a good credit score and need less than $50,000.
- Microloan from Small Business Administration (SBA): Microloans are considerably smaller in size than conventional business loans but may be sufficient to cover food truck startup costs. Check out SBA’s Microloan Program for loans of less than $50,000.
- Find investors: Whether it’s a friend or family member, finding investors for your food truck business requires strategy. Prepare your concept and a solid business plan to help convince investors to fund your venture.
Not all funding comes from banks and big investors. If you have an active fanbase of friends and family who support your food truck concept, crowdfunding can provide some or all of your opening budget. Your business plan will give you a great jumping-off point to create a compelling crowdfunding page. A bonus of crowdfunding for a food truck is that you’ll already have a fanbase excited to see your truck come to life.
Step 5: Get Your Food Truck
Several of the permits and licenses you need depend on the type of vehicle you purchase. So this step typically happens before– simultaneously with– the next step; getting your permits. You can buy, build, or lease a food truck. Food trucks can cost anywhere from $3,250 for a secondhand trailer to as much as $300,000 for a new, custom-built truck, although $5,000–$125,000 is the general range.
Regardless of your budget, you should invest in the best quality truck you can afford. Investing in a quality food truck from the beginning minimizes your risk of incurring repair expenses down the road, and protects you and your staff from dangerous cooking or vehicle-related accidents.
Expand the sections below to explore your options for getting a food truck.
Step 6: Get Licenses, Permits & Insurance
Food trucks need at least three types of licenses and permits: general business licenses, food service licenses, and vehicle licenses. Depending on your location, most food truck licenses and permits will cost between $100 to $500 each. Your total permit and license fees can range from $1,500 to $20,000, depending on your location and the type of food you cook.

To ensure your food truck is fully licensed and permitted, you’ll need to contact:
- Your local health department: The health department issues licenses for your truck, prep kitchen, and managers. If your location also requires food handler’s permits for your staff, the health department will handle that.
- Your local fire department: The fire department inspects your cooking equipment and the truck’s electrical and fire suppression systems to ensure they operate safely.
- State, county, and city clerk’s offices: These offices issue general business licenses, tax licenses, and other foundational documents for running your business.
Food Truck Insurance
Like any small business, food trucks need general liability insurance. Since food trucks operate as mobile businesses, serve food to the public, and may have employees, you’ll have additional insurance needs like commercial auto coverage and worker’s comp. Contact an insurance provider for a comprehensive quote.
Step 7: Purchase Equipment & Supplies
Even if your truck is fully outfitted with cooking and refrigeration equipment, you’ll still need some extra tools. Generators, condiment tables, registers, and point-of-sale (POS) systems are all standard food truck equipment. Increasingly food truck owners are adding rooftop solar panels to offset fuel costs. You’ll also want to open accounts with food suppliers so you can buy in bulk and avoid paying sales tax.
Food truck equipment and supplies you’ll want to budget for include:
- Truck wrap and exterior decor: Those vibrant trucks with nose-to-tail designs are covered in a “truck wrap.” The cost of installing a truck wrap ranges from $2,500 to $5,000 (including design). If you are short on funds, local sign shops can print smaller vinyl decals or magnets.
- Cooking and serving equipment: You’ll likely need small equipment like a food processor, baking sheets, and Cambro containers to store your prepped food and transport it from your prep kitchen to your truck. If you offer catering, you’ll also want a couple of sturdy collapsible tables and chafing dishes to keep your food warm outdoors. You’ll be able to find most small equipment at a local restaurant supply or kitchen store.
- Generator: You’ll need a generator to run your cooking and electrical equipment when your truck is parked.
- Ingredients: You’ll need the ingredients to make your signature dishes before you can cook and serve food. If your food truck is even a little bit busy, you’ll want to open accounts with wholesale suppliers. This gives you a price break on food and beverage supplies and saves driving time, as most distributors will deliver directly to your commercial kitchen space.
- POS and payment equipment: Most customers prefer to pay with cards or apps, so you’ll need a way to process payments on the go. Our top-ranked food truck point-of-sale (POS) systems can operate via Wi-Fi or cellular networks, and many are free to use.
More than half of the food trucks I know use some type of Square POS. Square operates on iPads and smartphones, and you can download the Square POS and start taking payments in a couple of hours. For more information, visit Square.
Step 8: Hire & Train Staff
Food truck owners do a lot of work themselves, but you’ll still likely hire some hourly employees. The staff you hire should fill in skills you lack or areas you cannot pay attention to. For example, if you are an expert grill cook, it makes more sense to hire a cashier than a cook. But if you have a welcoming personality and are great at add-on sales, you’ll be stronger in a customer-facing role and should hire cooks. If you get a lot of catering inquiries, it might make sense to hire an event salesperson to send estimates and wrangle catering contracts.
Expand the sections below to view common food truck employees:
Training Food Truck Staff
Once you’ve hired your truck staff, set aside time to train them. Depending on your team’s experience level, you’ll need to allow two days to two weeks to get your team up to speed. Prepare itemized copies of your menu with ingredient lists and common allergens, along with what items can and cannot be modified. For example, if your housemade chili is cooked with bulgur wheat, it cannot be made gluten-free.
All of your truckers should know how to use fire safety equipment on your truck. You’ll also want to train your team on the policies and procedures at your commercial kitchen. If there are strict operating hours, designated storage areas, or designated parking areas, you’ll want to cover that explicitly, so your team reflects well on your brand.
If your truck collects tips, you may also run a tip pool to distribute tips to your staff. A tip pool based on hours is a popular way to distribute food truck tips.
Step 9: Market Your Food Truck
Once you have your truck, permits, and staff, the final step in starting your food truck business is marketing your truck. A good food truck marketing strategy involves a combination of online and traditional marketing strategies, including social media marketing, vending at local events, building a website, and joining advocacy groups.
You can take a deep dive by reading our guide to food truck marketing. Expand the accordions below for a quick overview.
With your truck purchased, supplied, permitted, staffed, and marketed, all you need to do now is make your first sale. With this guide as your foundation, you’re well on your way to starting a successful food truck. So go out there and have a great service.
Pros & Cons of Starting a Food Truck
Still on the fence about starting a food truck? Like any other business venture, the food truck industry offers advantages and disadvantages. Read through this list of food truck pros and cons to help you make your final decision.
PROS | CONS |
---|---|
Low startup costs: While a food truck still requires a decent amount of startup capital, it’s generally less than what would be needed to start a restaurant. | Labor intensive: What you save in startup costs, you’ll spend in sweat equity. Most truck owners work full-time (or more) on their trucks. |
Long-term profits: A successful food truck business can have greater profit margins than a traditional restaurant because there are fewer overhead expenses. | Long hours: All small businesses are time-consuming, but this is especially true for the food truck industry. Be prepared to operate nights and weekends to attract the largest crowds. |
Mobility: You can take your truck wherever there are people, whether at a concert, a festival, or a private catering event. | External forces: Food truck owners must battle snow, rain, and other weather conditions that can decrease customer numbers. |
Large customer base: Many regions host food truck festivals and similar events, which offer a steady flow of customers. Food trucks have also exploded in popularity. | Pricing expectations: Food truck customers expect affordable food, so you’re limited in how much you can charge for menu items. |
Starting a Food Truck Frequently Asked Questions (FAQs)
There is much to know about starting a food truck. These are the most common questions I hear from prospective food truck owners. Expand each question section for a detailed answer.
Last Bite
If you’ve been dreaming of how to start a food truck business, you should know it is a fun—yet time-consuming—process with plenty of opportunities for growth and profit. The food truck business is demanding but, ultimately, rewarding if you take the time to create a careful business plan with market research and a solid marketing strategy. Ensuring you have plenty of startup capital and the right equipment is the best way to encourage success.
Sources:
- https://www.ibisworld.com/industry-statistics/number-of-businesses/food-trucks-united-states/