5 Steps for Starting a Food Truck

Food trucks have become one of the most successful “drivers” of the food industry in recent decades. Since 2018, the food truck scene has grown nearly 10% every year and is only expected to rise even more. 

There’s a reason customers go bananas for their favorite food trucks. Food trucks operate with limited menus and the freedom to go where the demand is high, so the potential for small-batch, creative, exciting, and experimental cuisine is nearly limitless.

In this guide, we outline 5 steps to get you started on your dreams of running a food truck. We’ll cover startup expenses, outline some typical permits needed, expected monthly expenses, tips for buying or leasing your truck, and a few size and layout considerations to make before you get rolling.

Why Own a Food Truck?

Wondering if you should start your own food truck business? Let’s begin with an obvious reason: it’s a lot cheaper than starting a brick-and-mortar food service. Depending on specifications, a brand-new custom food truck could run between $50,000 and $150,000; a brick-and-mortar restaurant, on the other hand, could cost upwards of 7-figures before you can open your doors for business.

Here’s one of the best reasons to open your own truck: the flexibility. You get to be your own boss, cook the food you love, and build your own brand and relationship with your fans. Opening when you want, where you want—it’s just about the most freedom a career in food service can offer.

Running a food truck gives you the rare opportunity to develop your service concept with a unique menu and customer experience, which makes for an easily distinguishable brand and business vibe—an incredible advantage in the often-overcrowded foodservice industry. 

But perhaps the best reason of them all? The potential earnings of a good mobile food business are impressive, with the average truck bringing in between $250,000 and $500,000 per year (before expenses) according to The Auguste Escoffier School of Culinary Arts. 

Now that you’re sold on getting your food truck on the road, let’s dive in to your first step.

Step 1: Saving for Startup Costs

In addition to the $50,000 to $150,000 it will cost to buy a food truck or trailer, there’s a number of other startup expenses that you’ll need to cover before you can start bringing your menu to the masses.

Many of the food trucks available at the higher end of that range will have equipment pre-installed, but if not, you’ll want around $40,000 saved to purchase kitchen equipment. Luckily, there’s many options out there to save a few bucks—like buying outlet equipment instead of new. Eleven36 has lots of options when it comes to discount kitchen equipment.

After equipment is sorted, you’ll need to set aside $2,000–$4,000 for your ingredients, $200–$300 for disposable dinnerware to plate all of those dishes, another $1,000 or so to cover your first rounds of fuel.

Once you’ve accounted for all your menu items, the equipment and fuel to make them, and the plates and cutlery they’ll be served on, you’ve got two last startup cost hurdles: the red-tape of insurance, food licenses, and serving permits.

Step 3: Anticipating Monthly Expenses

The cost of ingredients will depend on your menu, of course, so you should take care when planning your dishes and research ahead of time when preparing your budget. As food trucks offer a limited menu and typically prep for a fixed amount of tickets per service, anticipating this cost shouldn’t be too difficult once your menu is decided. Depending on the storage of your commissary, you may be able to bulk order certain ingredients to help bring down food costs.

On top of your food costs, you want to tally up your monthly operating expenses. Your commissary agreement, which we’ll cover in our next post, will determine how much you’ll pay for off-site prep space and storage your truck. You’ll also have to consider all your costs for street parking, employee wages, limited event permits, cleaning products and equipment upkeep, marketing and advertising your business, and truck maintenance.

Like any other vehicle, your food truck will need regular maintenance to keep it on the road. Fuel costs, oil changes, tire rotations are easy enough to anticipate, but you’ll want to have enough set aside that repair costs to your truck or your cooking equipment don’t put you out of commission for an extended period.

All of these costs starting to make your head spin? Consider financing options. Finding a capital investor, applying for a small business loan, and using 0%-interest credit cards are all reasonable options to cover your startup costs and get you through the first year or so. Most restaurants—food trucks included—don’t start making real profits and cutting down their debts until after the first one-and-a-half to two years.

Step 4: Buying a Food Truck

You’ve gotten your savings in order and all the permits needed to run your business have been submitted. The next two steps cover the star of our show: finding the best food truck for your operation. From new or used, pre-equipped or custom built, lease-to-own or auctions, there’s plenty of options available to you.

Remember: Buying a food truck is just like buying any other car—you have the power to negotiate the price. Wheeling and dealing is key to the success of any new business, and a better price on your food truck gets you generating income that much sooner.

Should I Buy, Rent, or Lease My Food Truck? 

• New: If you have enough startup funds, a custom-built truck is the cream of the crop. A custom build is the way to go if you require specialty equipment like pastry ovens, woks, smokers, griddles, freezers, or BBQ grills. They may cost more upfront, but they will ensure you have the right tools to make the best food and the most profit down the line.
• Used: You may not have all the fancy customizable options in a used truck, but they come at a much more accessible price. Plus, you can always deck them out over time with any cooking equipment or special features you want, which means the only thing you have to worry about in the beginning is putting your personal touches on a solid foundation.
• Lease: Leasing a food truck is always a good option as well. Leasing offers you the bells and whistles of a new truck but without the responsibilities. You pay a higher monthly price for a lease agreement than a full loan, but you won’t have to worry about repairs, maintenance, or damages. After your lease agreement is up, you return the truck. It is a great strategy if you plan to upgrade soon or want to try running a food truck business before fully committing. There are also lease-to-own options.
• Franchise: If you are more interested in opening an established food truck operation and skipping the headaches of launching a new brand, purchasing and running your food truck franchise might be the best option. The best part is that it comes with a built-in customer base!

Step 5: Laying Out & Equipping Your New Food Truck

Size: Most food trucks are around 7 feet wide – narrow enough for street parking but wide enough to accommodate most staffing and equipment needs. They can range anywhere from 10 to 34 feet in length, depending on the size of the operation, with most average trucks falling between 14 and 20 feet long. 

Layout: When planning the layout of your truck, there are some must-have spaces you’ll need to incorporate, including stove/fryer space, refrigeration, work/prep space, clean/sink area, other cooking equipment, storage, warming/holding space, security awning, serving space, outside/window, and ventilation.

Safety: You must ensure that your equipment, ventilation, sanitation, and food storage comply with local health codes, so research your state’s codes here. 

Remember: Like with a new or used car, taking the time to test drive and inspect any truck you consider buying is always a great idea. Not all chefs are certified mechanics, so bringing in a specialized mechanic and commercial kitchen equipment repair technician to help you make your choice isn’t a bad bet either. 

The Wrap-Up: Are Food Trucks Profitable?

Salary: On average, the salary of a food truck owner falls between $24,000 and $153,000 per year nationally, with trucks that park in high foot traffic areas or cater for special events/private parties potentially bringing in even more. That’s a big range, but remember that scale, location, and marketing can significantly impact how much money your business brings in. 

Profitability: Your business’s profit margins depend on many factors, but can as we stated earlier, the average truck can bring in between $250,000 and $500,000 per year. The wages you pay your staff, the quality of ingredients you use, the complexity of your menu items, and how much you advertise can all affect your profit margins. However, you don’t want to skimp on any of those items—they are all sound investments for the future of your mobile kitchen.

Success: Here at Eleven36, we believe in ensuring you have the best tools and equipment to make your business successful. We offer everything you need, from disposable food containers to under-counter refrigeration systems, small stovetops, and food preparation equipment. 

• Category: Food Service
• Tag: Food Trucks, Restaurant