How to Start a Food Truck Business in 11 Practical Steps?

You can start a food truck business in eight steps: Firstly, determine your target market and competitors. Secondly, develop a business plan. Thirdly, determine start-up costs, identify financing sources, and obtain the necessary licenses, permits, and insurance. Create your menu, choose the right location for your business, choose the right point of sale system, and last, develop a good marketing strategy.

American families eat at fast-food restaurants at least once a week, which is one reason the food truck industry is booming like never before. Whether it’s tacos, sourdough pizza, or plant-based burgers, modern entrepreneurs are bringing street foods and experimental cuisines worldwide to our doorsteps. 

That may very well sound like a great business idea, especially considering that 36.6 percent of American adults eat fast food every day, meaning the market is clearly there. Unlike brick-and-mortar restaurants that generally cost between $250,000 and upwards of $2 million, food truck start-up costs are a more modest average of $125,000. Starting a food truck can, therefore, quickly become a profitable business. In some cases, an investment of less than $100,000 can result in an average food truck revenue of $250,000 to $500,000. 

This blog will cover the nuts and bolts you need to know about starting a food truck business, from startup costs to the proper permits and licenses, to how to market your food truck business. 

How to Start a Food Truck?

Starting a food truck in 2025 involves several key steps for small business owners. First, research local regulations to secure necessary permits and licenses, which vary by city and can cost $1,000 to $17,000.

Next, create a detailed business plan outlining your concept, menu, and budget. Purchase or lease a food truck, with costs ranging from $30,000 for used to $200,000 for new, ensuring it meets health and safety standards.

Equip the truck with essential kitchen tools, costing $5,000 to $50,000, and source initial inventory. Obtain insurance to cover liability and vehicle needs. Develop a marketing strategy, including social media and local events, with a budget of around $1,500 monthly.

Finally, hire a small team if needed and launch at high-traffic locations. Consistent planning and compliance are key to success.

How Much Does It Cost to Start a Food Truck in 2025?

Starting a food truck in 2025 typically costs between $50,000 and $250,000, depending on location, truck condition, and menu complexity.

A new, fully equipped food truck costs $75,000 to $200,000, while used trucks can cost $30,000 to $80,000 and potentially need repairs. Renting a truck is cheaper at $2,000 to $4,000 monthly, ideal for testing the market.

Additional startup costs include permits and licenses ($1,000 to $17,000, varying by city), kitchen equipment ($5,000 to $50,000), initial inventory (a few thousand dollars), and marketing (around $1,500 monthly). These figures exclude ongoing expenses like fuel, insurance, and labor.

Careful budgeting and researching local regulations are crucial for small business owners to manage this investment effectively.

How to Open a Food Truck: 11 Steps

Want to launch your own food truck? This guide breaks down the essential steps on how to open a food truck from concept development and licensing to equipment and marketing. We’ll cover what you need to know to start a successful food truck business.

Pros and Cons of Starting a Food Truck

Starting a food truck business can appeal to small business owners due to its flexibility and lower entry costs than traditional restaurants. However, it comes with unique challenges. Below is a concise breakdown of the pros and cons.

Pros of Starting a Food Truck

• Lower startup costs: $50,000–$250,000 compared to $100,000–$1 million for a restaurant.
• Mobility and flexibility: Move to high-traffic areas like festivals or offices to meet demand.
• Lower overhead: No lease payments, minimal staff, and reduced operating costs.
• Creative freedom: Control menu, branding, and hours to test unique concepts.
• Community engagement: Direct customer interaction and social media build loyalty.
• Recession resilience: Comfort foods remain popular during economic downturns.

Cons of Starting a Food Truck

• Limited space: Small area (e.g., 10×12 feet) restricts menu, storage, and staff comfort.
• Regulatory hurdles: Complex permits, licenses, and health inspections vary by city.
• High competition: Growing industry (58,064 trucks in 2024, up 15.9% since 2018).
• Maintenance costs: Truck repairs and low fuel efficiency (7 MPG) impact profits.
• Weather dependency: Rain, heat, or cold can reduce customer turnout.
• Long hours and labor: Physically demanding with early mornings, evenings, and weekends.

A Checklist For Starting a Food Truck

It takes more than just buying a truck equipped with a kitchen to start a food truck business. A successful food truck business requires planning and understanding some essential steps. Here’s how to get started: 

Absolutely! Here’s the revised, actionable checklist for opening a food truck, based on the provided document:

Define Your Market & Competition:

• Identify your ideal customer (e.g., middle-class millennials, ages 25-44).
• Research what your target market likes and dislikes.
• Analyze existing food trucks in your area.
• Plan a unique menu to avoid direct competition.

Create a Business Plan:

• Write an executive summary outlining your business concept.
• Describe your business in detail.
• Conduct a market analysis.
• Define your organizational structure and management.
• List your products/services.
• Develop marketing and sales strategies.

Secure Funding:

• Estimate startup costs ($40,000 – $200,000).
• Include truck purchase, equipment, permits, licenses, POS system, and legal fees.
• Factor in ongoing expenses like payroll, insurance, and advertising.
• Explore personal funds and funding options like SBA 7(a) loans or business credit cards.

Obtain Licenses, Permits, and Insurance:

• Research and acquire general business licenses, food service licenses, and vehicle licenses for your area.
• Budget $100-$500 per license/permit.
• Consult the SBA website or your county clerk’s office for application details.
• Secure adequate business insurance.

Design Your Menu:

• Create unique food offerings that cater to your target market.
• Plan a menu that can be prepped ahead or cooked quickly.
• Consider customer wait times and ease of service.

Choose a Location:

• Identify high-traffic areas like food truck parks, street parks, markets, business districts, campuses, or events.
• Understand and comply with local rules and regulations for mobile food vendors.

Select a POS System:

• Choose a POS system for secure transactions and inventory management.
• Prioritize speed for peak hours to maximize sales.
• Select a system with compatible payment processing and affordable rates.
• Consider systems with automated inventory management and reporting features (like KORONA POS).

Develop a Marketing Strategy:

• Design your truck to reflect your concept and attract customers.
• Create a website with your menu and services.
• Implement email marketing and loyalty programs. 

Ready to Simplify Your Food Truck Sales? Try KORONA POS

KORONA POS makes running your food truck smoother with its mobile, cloud-based system, letting you take orders fast on tablets or smartphones. You can process sales offline, syncing data later to keep things moving even with spotty Wi-Fi.

It tracks inventory in real-time to avoid running out of ingredients, and its sales reports show you what’s selling best so you can tweak your menu. You get flexible payment options, tools to manage your staff, and CRM features to keep customers coming back. Check out KORONA POS for more details by clicking on the button below.

FAQs: How To Start a Food Truck Business