How to Start a Food Truck Business in [X] 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. That’s one of the reasons why 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 from around the world 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. And 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. 

So, if you’re a “food connoisseur,” ready to try out innovative chefs’ unique creations, and eager to know how to start a food truck business, you’ve landed in the right place. This blog will cover the nuts and bolts you need to know about starting your business, from food truck startup costs to the proper permits and licenses, to how to market your food truck business. 

How to Start a Food Truck

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

How to Open a Food Truck: 11 Steps

1. Food Truck Concept

• Determine the food type suited to your area.
• Choose a specific concept, unique cuisine, or innovative idea.
• Consider consumer demand and personal interests.
• Example: Las Vegas-based Buldogis offers Korean-inspired hot dogs.
• Popular food truck concepts:
  • Comfort food
  • Regional cuisine
  • Organic and healthy foods
  • Gourmet sandwiches
  • Fusion dishes
  • Pizza
  • Healthy drinks
  • Street tacos and burritos
  • Indian food
  • Hawaiian food
  • Sushi
  • Lobster rolls
  • Mediterranean menus / Gyros
• Ask: What food do you prefer? What can you easily produce?
• Conduct a market test to validate your concept

The bottom line is that a market study is essential before launching a food truck. It enables you to validate or invalidate your concept.

2. Food Truck License and Permits

Licenses and permits for starting a food truck business vary from one state to another. However, no matter which state you are in, you will need at least three types of licenses and permits: general business licenses, food service licenses, and vehicle licenses.

General commercial licenses

Wholesale license

Also known as a reseller’s license, you’ll need to get a wholesale license, as it allows you to purchase goods or products in bulk from your suppliers at discounted prices that you will resell without paying tax. 

State sales tax permit

This license enables you to report your business to your state sales tax authority. Any sales from your food truck are subject to state and local sales taxes, and you will need to register with your state to accurately record your sales tax payments.

Employer Identification Number (EIN)

The EIN is a number issued by the IRS that serves to identify your business for tax purposes. The EIN will be required when you need to hire employees, register your business, or apply for a loan from a bank or other financial institution. 

Doing Business As (DBA) Registration

If you run your food truck as a sole proprietorship or plan to operate it under a different business structure than the LLC you have registered with the state, you will need a DBA to register the fictitious name.

Foodservice licenses

The state or county health department generally issues foodservice licenses. You will need different licenses to cover your truck, your kitchen, yourself, and sometimes your personal staff. Foodservice permits and licenses mostly require you to take a food safety test or have your facility pass a food safety inspection.

Health permit

A health permit allows the sale of food and beverages cooked or served to the public, which needs to be regulated for public safety. Health permits are typically under the purview of a county health department. Regulations governing the requirements for the types of food businesses that need a health permit differ considerably from state to state. Depending on the size of your business, the cost of obtaining such a permit can run from a few hundred dollars to nearly $1,000.

Mobile food facility (or unit) permit

The mobile food facility permit is a permit issued in some areas by the local parks department rather than the health department, although it still has a food safety aspect. Many cities offer lower rates for food carts, kiosks, small trucks, and trucks that serve only prepackaged food and non-perishable beverages. Prices generally range from $300 to $500.

Food safety manager’s certification

This certification assures the restaurant and retail industry that a manager has the knowledge, skills, and abilities to supervise the safe storage, preparation, and serving of food in the workplace. Your food truck manager must take a food safety class and pass a food safety test to get one.

Employee food handling permit

In certain states, food handler cards are required for any employee who touches, prepares, or serves food. Generally, food handlers are expected to undergo brief food safety training and examine food safety topics to obtain their cards. Some states, like California, mandate that all food service employees have their own food handling license. 

Commercial kitchen lease contract

A lease with a licensed commercial kitchen is a prerequisite for obtaining your truck’s foodservice permits for most locations. In some cases, health inspectors may require an affidavit signed by the kitchen owner, certifying that you are a tenant in good standing. Prices differ depending on the terms of your lease.

Vehicles Licenses 

You must go to the Department of Motor Vehicles to obtain commercial license plates for your truck. Some states require a commercial driver’s license (CDL) if your truck exceeds certain length and weight limits. However, some states do not allow vehicles requiring a CDL to be used as a food truck. 

You may also need to obtain a parking permit for your truck. Unlike a regular vehicle, a food truck can’t park anywhere. Each town has different regulations that limit parking. In addition, neighborhood associations and local health departments may also require you to comply with their own guidelines.

Use this checklist to avoid any issues:

• Check with your county clerk for a list of areas where parking is banned or for which a permit is required.
• Contact your local motor vehicle department for lesser-known parking restrictions.
• Include overnight vehicle parking in your commercial kitchen contract.

4. Where To Buy a Food Truck And What To Consider Before Buying One?

There are several options available to you for purchasing your food truck. If you consider buying a second-hand truck, you can approach an individual seller on eBay, Craigslist, or another online directory site. By purchasing a used truck, you can usually get a fully equipped truck for around $50,000. However, you will need to repaint the exterior and possibly renovate the truck’s interior to fit your business.

There are also various ways of financing opening a food truck. Entrepreneurs can go the traditional route of a bank loan, ask friends and family for investments, or leverage existing assets. One popular option is to utilize a home equity line of credit loan (HELOC) to create some funding to kickstart your food truck business. A home equity line of credit allows you to borrow money that has been built up against the equity you already have in your home. A HELOC allows you to borrow as much money as you need, and it can be used for anything, so it could be the perfect option to help fund your food truck.

A few good directory sites for finding used food trucks include the following:

• Commercial Truck Trader
• Used Vending Machines
• Road Stoves

Note: If you are buying a used truck online and haven’t seen it, it is advisable to use an escrow service. The escrow service keeps your funds in trust until the seller ships your truck and only releases the funds when you accept the truck. For instance, eBay has a built-in payment option through Escrow.com to protect its buyers and sellers.

It is crucial to invest in the best quality truck you can afford. By investing in a quality food truck upfront, you minimize the risk of running into repair costs down the road. You should try to find a local food truck builder so that you can easily assure yourself that all your specifications are met.

Make sure your truck is equipped with equipment that meets basic standards:

• Refrigerators and ovens that work properly
• Fire extinguishers and first aid supplies are available onboard
• Professional installation of essential equipment
• Proper storage of food
• Hot and cold water are available with appropriate pressure

5. Cooking and Serving Equipment You Need to Start a Food Truck Business

Starting a food truck business is also about knowing the equipment you need to prepare your menus. With your truck and commercial kitchen, you can meet most of your primary equipment needs. On the other hand, if your menu calls for unique cooking items like wood smoke, roasting pans, or metal skewers, you may have to buy them yourself. And while commercial kitchens likely have mixers, tongs, and spatulas you can use, supplies in a shared kitchen may be limited.

You’ll probably have to buy your small equipment, such as a food processor, baking sheets, and Cambro containers, to preserve your prepared food and transport it in your truck. Ensure your commercial kitchen rental agreement includes secure storage space so you don’t have to lug your food processor every day.

You’ll also need a few sturdy folding tables and reheating dishes to keep your food hot outside if you offer catering services. You can find most small equipment at a local restaurant or kitchen supply store. The very popular Sur La Table kitchen chain even discounts cooking professionals by 10%. However, you can also find these items at large distributors like Sysco. Table linens are the only type of equipment that is not worth investing in. You or your catering’s clients can rent them to match the event’s colors.

6. Invest In The Best Food Truck POS System

Recent studies have reported that 80 percent of consumers have used contacless payment methods in the past year, and up to 70 percent of millennials use smartphone payments. Using a cloud-based mobile POS system is the easiest way to accept card and digital payments. 

But a POS system is more than just payments. A good food truck POS system will monitor your supply levels, alert you when your inventory is low, help you count inventory, and keep track of every cash transaction (thus reducing the likelihood of employee theft). Modern POS systems also feature tools that allow you to store customer contact information for targeted marketing campaigns, manage social media accounts, and stay on top of internet reviews. 

KORONA POS is a cloud-based POS system specially built for retail businesses and quick-service businesses like food trucks. In addition to being ideally suited for food truck businesses, KORONA POS offers leasing options for businesses that want to finance their POS hardware through a lease. Feel free to reach out for a free product demo when you’re ready to launch your business. 

7. How To Market Your Food Truck Business?

Food trucks are one of the most profitable businesses you can open. Nevertheless, marketing is crucial to their success.

There are several ways to market your food truck business. Here are some ways to make your brand better known:

Social Media Marketing

Facebook, Instagram, and TikTok are great ways to connect with your local community and help potential customers find your business. Plus, Instagram is the perfect place to show off photos of your tasty dishes. As for TikTok, this platform will allow you to post videos of some of the dishes you prepare to better showcase your skills. 

For maximum impact, post regularly, and be sure to use all the local hashtags to help your business get discovered. Also, don’t forget to indicate your location and hours so customers can easily find you. If you accept online or phone orders, include this information in your social media bio as well.

Join a street vending advocacy group

There are also food truck advocacy groups in many cities where the food truck community is thriving. By joining one, you’ll be in contact with other like-minded business owners who can help you solve problems and send customers your way if their truck isn’t available for an event. The additional benefit of joining an advocacy group is, of course, advocacy. These groups work together to encourage local regulations favorable to food trucks, which can only spur business for everyone. The National Food Truck Association is a great starting point.

Participate in local festivals and events

Festivals are a perfect opportunity to find customers, learn from other food truck owners, and gain information. Many cities organize outdoor events in the spring and summer, from fairs to farmers’ markets. These events are an excellent way to promote your business and increase sales.

There are also many festivals dedicated to food trucks. Try to register for as many events as possible. You’ll have a captive audience to market your business to, and you’re almost guaranteed to make sales. If you attend several events, fairs, or festivals, build a calendar of events to hand out to customers so they know where to find you next time.

Pros and Cons of Starting a Food Truck

Starting a food truck business can be an appealing venture for small business owners due to its flexibility and lower entry costs compared to traditional restaurants. However, it comes with unique challenges. Below is a concise breakdown of the pros and cons, followed by profitability insights and relevant case studies, tailored for clarity and practicality.

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

FAQs: How To Start a Food Truck Business