food truck costs overview
Overview
With fewer overhead costs, minimal staff, and the flexibility to move (almost) anywhere, food trucks are often touted as a more affordable way to serve food. But while starting a food truck might cost less than opening a restaurant, you’re still looking at a sizable price tag if you want a long-lasting business asset.
Every truck is different, but on average, you can expect to spend at least $100,000 to start a food truck, and probably more like $150,000 or more if you’re planning to work with a reputable builder. After the initial start-up costs, where you operate, what you serve, and how you run your business will all impact your total bill.
Of course, as any restaurateur knows, the cost of doing business goes well beyond the initial startup fund. That’s why we’ve put together this all-encompassing guide. From buying and outfitting the truck to your typical day-to-day expenses, we’re covering the total cost of running a successful food truck business.
HOW MUCH DOES IT COST TO BUY A FOOD TRUCK?
First things first: How much does a food truck cost? Well, it depends.
The truck part of your food truck business is obviously the heart and soul of your operation. As such, you’ll want to invest a decent portion of your budget into the truck itself.
But not all food trucks are created equal. You essentially have two options (and two price points) when looking to secure a food truck:
Buying a new custom food truck
Buying a used food truck
1. BUYING A NEW FOOD TRUCK
For top-quality results, you can buy a brand-new, fully custom food truck from a specialty builder for $125,000 to $250,000. Although a new truck isn’t cheap, you can rest assured that every piece of equipment will work seamlessly. Many new trucks and appliances even come with warranties. If you’re in the market for a custom food truck, connect with us! Sapphire Specialty offers an industry-leading 5-year warranty. We build a premium product and stand behind our craftsmanship. When you design and build a custom food truck, you ensure that every aspect—from the layout to the equipment—meets your exact specifications.
2. BUYING A USED FOOD TRUCK
How much is a food truck on the used market? You can often score a pre-owned food truck for between $30,000 to $100,000. A used trailer or cart can be even cheaper, but you’ll need a vehicle to tow it (and that’s a different can of worms).
While you’ll save money on a used truck, you’ll likely have to put some work into it. Depending on the vehicle’s condition, it could need anything from a fresh coat of paint to a total overhaul. With that in mind, be sure to inspect any used truck before committing to a purchase.
With 16 years of experience, we've seen a lot of heartache in this industry. So be cautious when choosing a builder or buying a step van—remember, “you get what you pay for” holds true, especially if you opt for a cheap solution from an inexperienced builder.
HOW MUCH DOES IT COST TO START A FOOD TRUCK BUSINESS?
Beyond the truck itself, there are numerous other expenses tied to opening a food truck. Before you can start serving, you’ll need to account for these costs.
EQUIPMENT
Even if your food truck comes fully stocked, you’ll likely need to invest in some renovations—unless you’ve opted for a custom build, of course. If you’re starting from scratch, your equipment could cost upwards of $45,000.
Depending on your concept, you may require one or more of the following:
Flat tops or griddles
Fryers
Ranges
Warmers
Salamanders
Char broilers
Refrigerators
Freezers
Microwaves
Toasters
Soup kettles
There are also smaller purchases, such as food prep equipment, janitorial supplies, and cookware. Additionally, if you plan to take card payments, you’ll need a point-of-sale (POS) terminal and an onboard Wi-Fi router.
PERMITS AND LICENSES
According to Food Truck Nation—a study by the U.S. Chamber of Commerce Foundation—the average food truck owner pays $28,276 on regulatory requirements in their first year. These licenses and permits may include:
A food service license
A food truck permit
A “hawkers and peddlers” license
A health permit
A parking permit
A seller’s permit
An employee health permit
Costs for these permits vary from state to state, so check with your local authorities for accurate pricing.
HOW MUCH DOES IT COST TO RUN A FOOD TRUCK?
Prepping your food truck for opening day is only half the battle. To stay in business and turn a profit, you’ll need to consider your operational costs.
Since the price of food, labor, and other necessities varies wildly between locations, we’ll provide only ballpark figures for these expenses. As you build your budget, be sure to do more detailed research specific to your area.
CONSUMABLES
Your customers come to enjoy your food, and you consume various products to serve them. Here’s what you’ll likely go through during regular operations:
Ingredients: What will you need to serve that crowd of hungry customers?
Gasoline and propane: Moving your mobile kitchen—and cooking in it—requires gas and propane.
Supplies: Takeout containers, napkins, and utensils aren’t too pricey, but they add up.
STAFF
You’ll likely benefit from having help to run your food truck. If you plan to work the truck full-time, you may only need one or two employees. Otherwise, you might hire as many as five or six.
Your staffing expenses will depend on minimum wage, labor laws, and the cost of living in your area.
INSURANCE AND MAINTENANCE
Your food truck is a vehicle, a food service establishment, and a business. As you can imagine, this combination can make finding the right insurance challenging.
Fortunately, specific food truck insurance options are now available. Expect to spend a minimum of $1,000 per year, and more if you want add-ons like:
Comprehensive coverage
Contents insurance
Worker’s compensation insurance
Unfortunately, no insurance policy will cover routine maintenance—that’s on you. Maintenance costs will range from inexpensive oil changes to appliance repairs; be sure to set aside part of your income for these inevitable expenses.
PARKING AND STORAGE
Contrary to popular belief, food trucks aren’t entirely exempt from paying rent. In some states and cities, food trucks can’t park just anywhere overnight. Instead, they must stay in commissary parking lots.
Your city may have both outdoor and indoor commissary parking facilities available for rent. While outdoor options are usually cheaper, they won’t protect your truck from the elements, making a covered space ideal.
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Whether you’ve just started your journey and are browsing or you have a full baked idea, we’d love to be a resource for you! Connect with us if you have questions or want to get started!