What Are the Initial Startup Costs for a Food Truck?

How Much Does It Cost to Start a Food Truck?

A food truck can seem like an easy way to start a food business without the high costs of a traditional restaurant. Although it’s usually more affordable than renting a storefront, getting started still requires a pretty penny. Of course, it’s 2025 and with global inflation on the rise, the actual amount will depend on the truck, equipment, permits, and location.

Let’s break down the major expenses so you know what to expect.

1. Finding a Parking Spot

Where you set up shop has a big impact on costs. Renting a space in a high-traffic area could run as low as $500 or climb up to $5,000 per month. Some cities require special parking permits, which increase the cost. If you plan to operate in different locations, factor in parking fees for multiple spots.

2. Buying or Renting a Truck

Getting a brand-new food truck will set you back anywhere from $75,000 to $200,000, based on where you’re located and what features you choose. It’s the biggest upfront expense and takes a few months to get ready, but you’ll have brand-new equipment with fewer maintenance issues. If you go for extras like custom wrapping or high-end kitchen gear, the cost goes up, but everything will be built exactly the way you want.

If you're looking to save, a used food truck can bring that cost down to $50,000–$100,000. Another option is buying a used truck chassis and installing a new kitchen, which lands between $85,000 and $115,000. You might need to handle some mechanical fixes, but you’ll be able to start serving customers much sooner and keep more cash in your pocket.

For an even lower upfront cost, renting could be the way to go. A six-month lease runs around $2,000–$3,000 a month, though shorter leases tend to cost more. This lets you get your business rolling and test your concept before going all in.

3. Customizing and Equipping the Kitchen

Most trucks need some upgrades to meet health and safety rules. Expect to pay as little as $10,000 or as much as $50,000, depending on what’s needed. Equipping the kitchen is another major expense.

Below, we list the general price range for essential tools and appliances:

• Grills, fryers, ovens: $5,000 to $20,000

• Refrigerators and freezers: $2,000 to $10,000

• Food prep tools (mixers, slicers, blenders): $2,000 to $5,000

• Ventilation system: $2,000 to $5,000

• Food warmers and serving stations: $1,000 to $5,000

• Utensils, cookware, small tools: $1,000 to $3,000

• Fire suppression system and safety gear: $1,000 to $3,000

These are just ballpark figures. Most food truck owners spend about $45,000 on kitchen equipment alone.

4. Labor Costs

You’ll have to hire at least one or two employees to help run the truck. Labor costs are tied to your location, but here’s what you might pay annually:

• Head cook: $25,000 to $50,000

• Additional kitchen staff: $20,000 to $40,000 per employee

• Driver (if needed): $20,000 to $40,000
  
  

5. Technology and Software

You would need some tech tools to keep your food truck running smoothly. These are the must-haves:

• Online ordering system: $49 to $250 per month

• POS (point-of-sale) system: $1,000 to $3,000 for hardware, plus $50 to $200 per month for software

• Mobile app (if you want a custom one): $5,000 to $20,000

• Accounting software: $20 to $60 per month
  
  

6. Buying Ingredients and Supplies

Stocking up on food and supplies is a recurring expense. Yes, what’s on your menu changes the numbers, but these are the usual costs you’ll see each month.

• Ingredients: Depends on menu prices and food costs.

• Disposable packaging (containers, napkins, utensils): $1,000 to $3,000

• Cleaning products: $100 to $300

• Fuel: Based on travel distance and truck efficiency

• Propane (if used for cooking): $200 to $500

• Beverages: Costs fluctuate based on sales volume.
  
  

7. Branding and Marketing

You can’t run a food truck without customers, and getting their attention means investing in branding. Here’s a rough idea of what that might cost:

• Website: $500 to $5,000

• Advertising (social media, flyers, promotions): $100 to $1,000 per month

• Branded materials (menus, signage, business cards): $500 to $1,000

• Truck wrap (custom design and branding): $2,000 to $5,000
  
  

8. Licenses and Permits

To stay on the right side of the law, your food truck needs the proper permits. Costs aren’t fixed and depend on location, but these figures provide a useful reference.

• Food service license: $100 to $1,000

• Mobile food vendor permit: $100 to $1,000

• Health department approval: $100 to $500

• Fire department inspection: $50 to $200

• Parking permit: $50 to $500 per month

• Business license: $50 to $500

• Sales tax permit: Usually free or a small fee

• Commissary agreement (if required): $200 to $500 per month
  
  

9. Utilities and Operating Costs

A food truck is a mobile business, and that mobility comes with recurring expenses. Below are some of the important monthly costs you’ll need to cover.

• Electricity: $100 to $300

• Water: $50 to $100

• Propane: $100 to $300

• Waste disposal: $50 to $200

• Internet/communication: $50 to $100

• Phone line: $20 to $50

• Generator fuel: $100 to $300
  
  

10. Insurance

Insurance protects your business from potential risks. According to Restaurant HQ, most food truck owners spend between $2,500 and $5,500 per year on insurance.

11. Miscellaneous Costs

Unexpected costs always pop up. Here are some extra expenses that come with the business:

• Disposable serveware (platters, bowls, trays, cups, lids, straws, utensils): $100 to $300 per month

• Cleaning products: $50 to $100 per month

• First aid kit: $20 to $50

• Menu boards or digital displays: $100 to $500

• Uniforms or branded clothing: $20 to $100 per employee

• Business cards: $50 to $200

• Receipt paper, ink, and POS supplies: $50 to $100 per month
  
  

FAQs

How do you start a food truck with no money?

Starting a food truck with no money is tough, but not impossible. First, look into financing options like small business loans, grants, or crowdfunding. Some food truck builders also offer leasing programs, letting you pay in installments instead of upfront. You can also partner with an investor who believes in your concept and is willing to fund your startup in exchange for a share of the profits. Renting a truck instead of buying one can also lower costs significantly. Another approach is to start small. Consider running a pop-up, selling at markets, or using a shared commercial kitchen before committing to a full truck. Be resourceful and find creative ways to fund your dream.

How much does it cost to rent a food truck?

The cost of renting a food truck varies based on location, lease length, and the type of truck you need. On average, you can expect to pay between $2,000 and $3,000 per month for a six-month lease. Shorter rental periods tend to be more expensive, sometimes reaching up to $4,000 per month. Some rental companies also require a security deposit, which can add a few thousand dollars to your initial costs. If you need a truck for a single event, daily rentals usually range from $500 to $1,500. Renting is a great way to test your business idea before making a bigger investment, but be sure to budget for additional costs like permits, insurance, and food supplies.

How much money does a food truck make?

A food truck’s earnings depend on factors like location, menu pricing, and operating costs. On average, a successful food truck can make anywhere from $250,000 to $500,000 in annual revenue. However, profit margins vary. After accounting for expenses like food, fuel, permits, and labor, net profit usually falls between 10% and 20% of revenue. Busy locations, high-traffic events, and an efficient operation can significantly boost earnings. Some food trucks also increase their income by catering private events or partnering with businesses. Like any business, success takes time, and earnings may be lower at first. A solid business plan, smart marketing, and great food can help you maximize profits.

How do you get a food truck license?

Getting a food truck license involves a few steps, and the requirements vary by city and state. First, you’ll need to register your business and apply for a general business license. Most areas require a food service permit, which means passing a health inspection to ensure your truck meets safety and sanitation standards. You might also need a mobile vendor license, which allows you to sell food in public spaces. Some locations require fire safety inspections, particularly when you have gas-powered equipment. The process can take weeks or even months, so it’s best to check with your local government early and gather all the necessary paperwork.

What permits are needed for a food truck?

The permits you need depend on where you plan to operate, but most food trucks require a business license, food service permit, and health department approval. Many cities also require a mobile vending permit, which allows you to park and sell food in designated areas. If your truck uses propane or has cooking equipment, a fire safety inspection might be required. Some locations have additional requirements, like parking permits, zoning approvals, or special event permits if you plan to operate at festivals. It’s always a good idea to contact your local health and business departments to make sure you have everything in order before launching.

How much are food truck permits?

The cost of food truck permits varies widely based on location and specific requirements. On average, you can expect to pay between $500 and $3,000 for permits and licenses, though some cities charge much more. A business license usually costs around $50 to $500; health permits can range from $100 to $1,000. Mobile vending permits and fire safety inspections may add another $200 to $1,500. If you plan to operate in multiple locations, you might need permits from different cities. Since fees can change, it’s best to check with your local government to get an accurate estimate for your area.

Where can you park a food truck?

Parking rules for food trucks depend on local laws, but there are several common options. Many trucks operate in designated food truck zones, which are pre-approved by the city. Some businesses allow food trucks to park on their property in exchange for a portion of sales or a rental fee. Private events, catering gigs, and festivals are also great places to set up. If you plan to park on the street, you’ll need to check if there are time restrictions or permit requirements. Overnight parking is another factor to consider. Some cities allow food trucks to park in commissary kitchens, whereas others require trucks to be stored in specific locations when not in use.

How do you find the best locations for a food truck?

Finding the best spot for your food truck takes research and testing. High-foot-traffic areas, like business districts, college campuses, and busy parks, are great for attracting customers. Events, festivals, and farmers’ markets can bring in large crowds, though some require vendor fees. Partnering with breweries, office buildings, or community centers can provide steady business, especially if you have an exclusive spot. Check local regulations to see where food trucks are allowed, and consider rotating locations to reach different audiences. Social media and customer feedback can help you determine which spots generate the most sales, allowing you to refine your schedule over time.

What type of cuisine is best for a food truck?

The best cuisine for a food truck depends on your location, target audience, and competition. However, street food-style dishes that are easy to prepare, quick to serve, and travel well tend to perform the best. Mexican food (tacos, burritos, quesadillas) is a top choice due to its popularity and affordability. Barbecue, Asian fusion, and Mediterranean cuisine also do well because they offer bold flavors and customizable options. Comfort foods, like grilled cheese, mac and cheese, or loaded fries, attract a broad customer base. Healthy options, such as smoothie bowls and poke, are growing in demand. The key is to choose a cuisine you’re passionate about and ensure it fits the market you’re serving.

What are the most profitable food truck items to sell?

The most profitable food truck items are those with low ingredient costs, high demand, and good markup potential. Tacos, burgers, grilled cheese sandwiches, and gourmet hot dogs are popular because they’re affordable to make but can be sold at a premium price. Ethnic street food, like falafel, dumplings, or birria tacos, also tends to do well, especially in areas with a foodie crowd. Breakfast foods like waffles or egg sandwiches can be highly profitable since eggs, bread, and batter are inexpensive. Vegetarian and vegan dishes are growing in popularity, often priced higher than traditional fast food. Keeping your menu razor-sharp focused helps maximize profit and reduces waste and labor costs.