How Much Does it Cost to Start a Food Truck?

If you love to cook, starting a food truck may be for you. Maybe you’ve always wanted to open a restaurant, but you know it’s just too expensive right now. While a food truck won’t cost as much as a restaurant to start, it does come with expenses. Here’s a breakdown of how much it will cost to start a food truck.

The Actual Truck or Trailer

One of the largest expenses you will have when starting out is the actual truck or trailer you will use. This isn’t just the place you will prepare your food, but also a huge part of your marketing. The estimated range for your truck or trailer starts at about $15K and goes up to about $100K. Most will average around $50K, however.

Remember, you need more than just the physical truck or trailer. You will also need the equipment for the inside and a wrap to show off your brand. While you might be able to find a used food truck with decent equipment, you will still need a new wrap with graphics matching your business.

Initial Inventory

Along with the actual truck or trailer, you will need inventory to start your business. The cost of your inventory will depend on what you plan to serve, how much space you have for storage and where you buy your ingredients. An all-organic food truck may have a higher inventory cost than one serving grilled cheese using conventional ingredients.

The cost for initial inventory ranges from about $1,000 to $2,000. You can save by buying in bulk, but make sure you can store the additional ingredients without spoilage.

Cookware and Utensils

Of course, you will need something to cook your meals in. Pots, pans, kitchen utensils, storage containers and other kitchen items will need to be purchased. Expect to spend $1,000 to $2,000 for your cookware and utensils.

Food Truck Insurance

You don’t want to be out working in your business without the right insurance. You will need commercial vehicle insurance, along with a few other types of coverage, especially if you will hire employees. The cost of food truck insurance ranges from about $1,200 to $3,200 per year, depending on your coverage.

Other expenses involved in the startup of a food truck business include:

  • Permits and Licenses – $100 to $500
  • Website – $5,000
  • Social Media – Free
  • Point of Sale/Cash Register – $200 to $1,000
  • Paper Products – $200 to $300
  • Fire Extinguisher – $50 to $300
  • Uniforms – $0 to $1,000
  • Marketing – $0 to $1,000

All of these expenses are necessary to get started with your food truck. You may also want to factor in an emergency fund and some working capital to ensure you’re not put out of business by a repair to your truck or another small issue.

Total Cost for Starting a Food Truck

The total cost for starting your food truck business will range from about $28,000 on the very low end up to about $115,000 on the very high end. Most businesses will fall in the middle around the $60,000 mark.