Food Truck Costs Breakdown: What You Need to Budget For
Starting a food truck business is an exciting way to enter the food industry without the high overhead of a traditional restaurant. However, many aspiring owners underestimate the true costs involved. While food trucks are often marketed as a “lower-cost entry point,” they still require a significant financial investment and careful budgeting.
In this Food Truck Costs Breakdown, we’ll cover every major expense you need to consider—from purchasing the truck itself to ongoing operational costs—so you can plan wisely and avoid financial surprises.
Initial Investment: Purchasing or Building Your Food Truck
The largest upfront cost will always be your food truck. Depending on your choice, the price can vary dramatically.
1. Buying a New Custom Food Truck
Cost Range: $75,000 – $150,000
A new truck designed to your exact specifications gives you reliability and custom kitchen equipment tailored to your menu. While expensive, it often reduces maintenance issues in the early years.
2. Purchasing a Used Food Truck
Cost Range: $40,000 – $80,000
Used trucks are a more affordable entry point. However, they may come with outdated equipment or require significant repairs. It’s crucial to get a full inspection before buying.
3. Converting a Van or Trailer
Cost Range: $30,000 – $50,000
This option is often chosen by smaller operations or specialty vendors. Conversion is cheaper but can limit your cooking capacity and may face more regulatory scrutiny.
Tip: Always budget an extra 10–15% for unforeseen modifications or repairs after purchase.
Licenses, Permits, and Legal Requirements
Operating a food truck requires compliance with local and state laws. These expenses are often overlooked by first-time owners.
Business License: $100 – $500 annually
Health Department Permit: $800 – $5,000 (varies by city and menu type)
Food Handler’s Permit: $100 – $500 per employee
Parking Permits: $50 – $200 per month in some urban areas
Fire Safety Inspection & Certification: $100 – $500
Depending on your city, some permits can take months to process. Always factor in both the cost and time needed before launching.
Insurance Costs
Insurance is not optional—it’s essential for protecting your business. A comprehensive food truck insurance policy can include:
Commercial Auto Insurance: $1,000 – $2,500 annually
General Liability Insurance: $500 – $1,000 annually
Workers’ Compensation (if you have employees): $500 – $1,500 annually
Property & Equipment Coverage: $400 – $800 annually
Total Estimated Insurance Costs: $2,500 – $5,500 per year
Equipment and Kitchen Setup
The equipment you install depends heavily on your menu, but here’s a breakdown of common costs:
Cooking Equipment (grills, fryers, ovens): $5,000 – $20,000
Refrigeration Units: $2,000 – $6,000
Food Prep Tables & Storage: $1,000 – $3,000
Ventilation & Fire Suppression Systems: $2,000 – $5,000
Generator: $1,500 – $10,000 (depending on power needs)
Smallwares (utensils, knives, containers): $500 – $2,000
Total Estimated Equipment Costs: $12,000 – $40,000
Food and Inventory Costs
When budgeting for your launch, you’ll need to stock your truck with food, beverages, and disposables.
Initial Inventory: $1,000 – $2,500
Monthly Food & Supply Restocking: $5,000 – $10,000 (depends on menu and sales volume)
Tip: Always keep 20–30% of your monthly revenue set aside for food inventory purchases.
Technology and Payment Systems
In today’s market, you need reliable tech to handle orders and payments.
Point-of-Sale (POS) System: $1,000 – $3,000 (hardware + software)
Monthly POS Software Fees: $50 – $200
Website & Online Ordering System: $500 – $2,000 setup + hosting fees
This investment not only improves efficiency but also allows you to track sales and manage customer data.
Staffing and Labor Costs
Even small food trucks often require help with prep, cooking, or customer service.
Average Wages: $12 – $20 per hour per employee (varies by state)
Monthly Payroll: $2,000 – $7,000 depending on staff size
Uniforms & Training: $200 – $1,000
If you plan to operate full-time and attend events, staffing is a critical ongoing expense.
Marketing and Branding
Your food truck must stand out to succeed. Marketing should be part of your budget from day one.
Truck Wrap / Exterior Design: $2,500 – $10,000
Logo & Branding Package: $500 – $2,500
Social Media Advertising & Promotions: $200 – $1,000 per month
Event Participation Fees: $100 – $3,000 per event
Marketing is not optional—it directly drives your sales and customer recognition.
Fuel and Maintenance Costs
Your food truck is both a kitchen and a vehicle, so fuel and maintenance can’t be ignored.
Fuel Costs: $300 – $800 per month (depending on mileage)
Routine Maintenance (oil changes, tires, brakes): $1,000 – $3,000 annually
Unexpected Repairs: $2,000 – $5,000 annually
Pro tip: Always maintain a reserve fund of at least $2,000 for emergency repairs.
Commissary or Shared Kitchen Fees
Many cities require food trucks to operate out of a licensed commissary for storage and sanitation purposes.
Monthly Commissary Fees: $500 – $1,500
Optional Shared Kitchen Access: $20 – $50 per hour (if rented part-time)
This is an often-overlooked cost but can be mandatory for compliance.
Total Food Truck Cost Estimate
Here’s a realistic breakdown of average startup costs for a food truck:
Truck Purchase/Conversion: $40,000 – $120,000
Licenses & Permits: $2,000 – $10,000
Insurance: $2,500 – $5,500 annually
Equipment & Kitchen Setup: $12,000 – $40,000
Initial Inventory: $1,000 – $2,500
POS & Technology: $1,500 – $5,000
Branding & Marketing: $3,000 – $12,000
Commissary/Shared Kitchen Fees: $6,000 – $18,000 annually
Fuel & Maintenance: $3,000 – $8,000 annually
Estimated Total Startup Costs: $60,000 – $160,000+
How to Save Money When Starting a Food Truck
While costs can seem intimidating, here are strategies to keep your budget manageable:
Buy a used truck but invest in inspection before purchase.
Start with a limited menu to reduce equipment and inventory costs.
Share commissary space with other vendors to lower monthly fees.
Use social media for free marketing instead of expensive campaigns.
Negotiate event fees when joining festivals or markets.
Smart budgeting doesn’t mean cutting corners—it means making strategic decisions that allow your business to grow sustainably.
Conclusion: Plan Ahead for Success
Launching a food truck is a rewarding path into the food industry, but it requires more financial planning than many entrepreneurs realize. From the upfront purchase of your truck to ongoing costs like insurance, staffing, and fuel, understanding your food truck cost breakdown is essential to long-term success.
By preparing a realistic budget and anticipating both startup and recurring expenses, you’ll position your mobile food business for profitability and growth. Think of budgeting not as a limitation, but as a roadmap to achieving your food truck dreams.
Contact The Fud Trailer Company today and start your project
