HOW MUCH DOES IT COST TO START A FOOD TRUCK?
FOOD TRUCK COSTS OVERVIEW
With fewer overhead costs, minimal staff, and the flexibility to move (almost) anywhere, food trucks are often touted as the 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 starting around $150,000 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, and that’s why we’ve put together this all-encompassing guide. From buying and filling the truck to your typical day-to-day expenses, we’re looking at 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 the best of the best, 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. Many new trucks and appliances will even come with warranties. If you’re in the market for a Custom Food Truck, Connect with us! Our sister company is a Design + Build Manufacturer that builds custom Food Trucks & Trailers. Sapphire offers an industry leading 5-year warranty. They build a premium product and stand behind that. When you design and build a custom food truck, you guarantee that every aspect—from the layout to the equipment—is exactly to your liking.
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 state, 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 see a lot of heartache in our industry. So be careful when picking a builder or buying a step van - the saying is true “you get what you pay for,” if you choose a cheap option and contact an inexperienced builder.
HOW MUCH DOES IT COST TO START A FOOD TRUCK BUSINESS?
Aside from the truck itself, there are dozens of other expenses tied to opening a food truck. Before you can begin service, you’ll need to cover these costs.
EQUIPMENT
Even if your food truck comes fully stocked, you’ll likely need to shell out for some renovations—unless you sprung for a custom build, of course. If you’re starting from scratch, your equipment could cost upward of $45,000.
First, you’ll need your appliances. Depending on your concept, you may require one or more:
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. And if you hope to take card payments, you’ll want a point of sale (POS) terminal and an onboard WiFi 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; check in 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 have to factor in your operational costs, too.
Because the price of food, labor, and other necessities vary wildly between states and cities, we’ll only provide ballpark figures for these expenses. As you build out your budget, you’ll want to do more detailed research on the exact costs in your area.
CONSUMABLES
Your customers come to consume your food, and you consume all sorts of products to serve them. Here’s what you’ll likely go through during regular operation:
Ingredients: What will you need to serve that crowd of hungry customers?
Gasoline and propane: Moving your portable kitchen—and cooking in it—requires gas and propane.
Supplies: Takeout containers, napkins, and utensils aren’t too pricey, but you’ll need to factor them in.
STAFF
Just as you probably won’t start your food truck business solo, you’ll also benefit from having help to run it. If you plan on working 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 Venn diagram of categories can make it challenging to find the proper insurance.
Luckily, some organizations now offer specific food truck insurance. Expect to spend a minimum of $1,000 per year, and more if you want add-ons, such as:
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 an inexpensive oil change to appliance repairs; be sure to set aside some 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 to rent. While outdoor options are usually cheaper, they won’t protect your truck from the elements, so a covered space is ideal.
LET US BE A RESOURCE FOR YOU!
Whether you’re looking for just a step van to build out yourself or send to your builder, or you’re interested in learning about the food truck customizations we can offer, we’d love to be a resource for you! Connect with us if you have questions!