How Much Does a Food Truck Cost?
Cassandra Conklin / Food Trucks & Pop-Up Restaurants, Foodservice Tips / January 4
Food trucks are great alternatives to opening a single-location restaurant. Plus there is more flexibility with these small sized food stops. They allow you to go to the customers and stay in populated locations, and you can open and close quickly. We’ve gone over how to start a food truck to help you with the first steps, but the next question is how much does a food truck cost? The final number can change depending on your local, county and state permits and regulations needs. Below we have broken down the average cost on each portion of what you need for a food truck.
Truck Cost
The biggest purchase will be the physical truck that you use for your food truck business. Do you want to rent a truck or prefer to buy? If you are buying you have to ask yourself, should I get a used truck or do a new custom built truck? Here we break down the average cost and weigh the pros and cons.
- Renting – The average cost of renting a food truck can be anywhere from $2000-$3000 a month. Renting is great for those who need more flexibility, especially if you are only serving food seasonally. The downside to renting is that long-term it can be more costly since you will not own the vehicle after your lease is up.
- Buying Used – This is a very budget friendly option for those who don’t mind used vehicles. There are also a wide variety of price ranges, from small push carts at $5000 to traditional large food trucks that cost between $25,000 and $80,000. Used car sites like Roaming Hunger or Used Food Trucks allow you to search according to your area and price.
- New Custom Built – If you require a truck that has specific equipment needs, buying a new food truck might be your best option. Buying new means it will last longer than used trucks and you can get the right refrigerators, grills or other equipment according to your cuisine. New trucks are the most costly option, ranging anywhere from $75,000 to $150,000.
Commercial Appliances & Equipment
Appliance costs can add up the more equipment you need. Refrigeration units can start at $2,000. Grills can start at $850 and go up in price depending on brand and size. Add in the price for pots, pans, cookware and serving ware as well and you are looking at starting costs of $5,000 and up. You can opt to start off small and get the minimal amount of equipment required for you and always add more as your business gets popular.
Another cost you might need to factor in is the price of a commissary space. These are essential to help you prep and store food, especially if you do not have a larger food truck. In big cities, like New York City, this can cost from $1,000 to $1,500 a month. There is also the option to lease appliances for your food truck. Just like renting a truck, this option might be more affordable monthly for those who need to slowly buy their appliances individually.
Permits & Licenses
So you have a truck and some appliances, but now you need to focus on the most important part, licenses and permits. The type of permits and licenses you need will depend on where you are located. Bigger cities like Los Angeles, New York City or Miami will cost more than smaller cities and more suburban areas. Plus if you have employees working for your food business that will add on extra permits and fees.
See below the list of some permits and licenses you might need. It is very important to have the right documentation for your business, so always be sure to check your local city and state websites to get accurate pricing and forms.
- Business permit – This is the start to getting your food truck business on its feet. Some states like Illinois cost $150 to file for an LLC and then $75 a year to file an annual report. Other states like New York have the cost of an LLC at $200 to file, plus a $50 Certificate of Publication fee.
- Food vendor license – The price of a food vendor license has a large range depending on where you are located. Cities like Chicago can cost $700-$1000 and other cities like Milwaukee or Boston could cost $300 and up. Check your local city’s website to learn how to apply and how much it will cost.
- Health Permit – Many cities require you to get a health permit, similar to established buildings. Just like restaurants need these, food trucks too might require them depending on your area. Inspections are usually a part of getting this permit, so that they can assess if your food truck is handling food safely and properly. This cost could be as low as $50 but could go up in price to $500 or more for larger cities.
Overall, the cost of a food truck will really vary depending on where you are and how much you are willing to spend first. If you have a smaller budget, start with all the permits and licenses needed and then decide the amount you can spend on a truck. Renting the truck and appliances after might be your cheapest option until you can make enough to start buying.