How to Start a Food Truck

To start a food truck, you nail down your concept and menu, budget for the truck and equipment (usually $50,000 to $175,000 depending on new vs. used), form a legal business and get an EIN, then secure the mobile-food permits your city requires — a health permit, a mobile food vendor license, and almost always a commissary or commercial kitchen agreement. Learning how to start a food truck is mostly about sequencing: get the legal and permit pieces right before you spend big on the truck, because your local health department often dictates how the truck must be built. From there it's insurance, smart pricing, booking locations and events, and winning your first customers.

This is general information, not legal or tax advice; requirements vary widely by city and state.

How do you define your concept and menu?

Before anything else, decide what you sell and who you sell it to. A tight concept is your biggest advantage — a truck known for one thing done well beats a truck with a scattered menu. Pick a cuisine or niche you can execute consistently from a small kitchen, then build a menu of six to ten items that share ingredients and equipment.

Keep these constraints in mind as you design the menu:

• Speed: Food trucks live and die by line speed. Favor items you can prep ahead and finish fast.
• Equipment fit: Every dish should be cookable with the gear you can realistically fit and power.
• Food cost: Aim to keep ingredient cost around 28 to 35 percent of an item's price.
• Signature item: Have one dish worth driving across town for. That's your marketing.

How much does it cost to start a food truck?

Total startup costs typically run from about $50,000 on the low end to $175,000 or more. The truck itself is the biggest line item, and buying used versus new changes the math dramatically.

• Used truck (already outfitted): $40,000 to $80,000. Faster to launch, but inspect the kitchen and mechanicals carefully — a cheap truck with failing equipment is expensive.
• New custom build: $75,000 to $175,000+. Built to your menu and to local code, but expect a wait of several months.
• Equipment and buildout: grills, fryers, refrigeration, a generator, a three-compartment sink, fire suppression, and a serving window. If you buy a bare truck, budget $20,000 to $50,000 here.
• Permits, licenses, and insurance: often $2,000 to $6,000 in year one, depending on your city.
• Working capital: keep several months of ingredients, fuel, commissary fees, and payroll in reserve.

Tip: Start with a used truck if you can find one that already passed a health inspection in your county. Passing inspection once is proof the build can pass again — that's worth real money and weeks of your time.

How do you set up the business legally?

Handle the legal foundation before you buy the truck. Most first-time owners form an LLC, which separates personal assets from business liability and is straightforward to set up. Some owners choose an S-corp election later for tax reasons, but that's a conversation for your accountant once revenue is flowing.

The core steps are the same as any business:

1. Choose a structure — an LLC is the common default for a single food truck.
2. Register your business with your state and register your trade name if you're operating under a "doing business as" name.
3. Get an EIN from the IRS. It's free, takes minutes online, and you'll need it to open a business bank account and hire staff.
4. Open a business bank account so your food-truck money never mixes with personal money.

If you want the full sequence for a new business, our general startup checklist walks through each step in order.

What permits and licenses does a food truck need?

This is where food trucks differ most from other small businesses, and where new owners get tripped up. Mobile food is regulated by your local health department and often by the fire and zoning departments too. Requirements vary by city, so confirm every item with your county before spending money. Expect most or all of the following:

• Health permit (mobile food facility permit): Issued by your county health department after they inspect the truck. This inspection drives how your truck must be built — sinks, refrigeration, water tanks, and surfaces all have to meet code.
• Mobile food vendor license: A business license specific to selling food from a vehicle. Some cities cap how many they issue.
• Commissary or commercial kitchen agreement: Many jurisdictions require you to operate out of a licensed commissary — a commercial kitchen where you prep, store food, fill water, and dump waste. You'll typically need a signed commissary agreement before they'll issue your health permit.
• Parking and zoning rules: Cities restrict where and how long you can park, how close to restaurants you can operate, and which streets are off-limits. Learn the local rules before you count on a location.
• Fire inspection: If you cook with an open flame or fryer, the fire marshal inspects your suppression system and propane setup and issues a permit.
• Food handler / manager certification: You and often your staff need a food safety certificate.
• Seller's permit: Required in most states to collect and remit sales tax.

For a broader look at how business licensing works, see our guide to licenses and permits.

What insurance does a food truck need?

Insurance protects the business you're about to pour your savings into. At minimum, most owners carry:

• General liability for customer injuries and property damage.
• Commercial auto because a personal policy won't cover a business vehicle.
• Property or equipment coverage for the expensive gear inside the truck.
• Workers' compensation once you hire employees — required in most states.

Many events and property owners also require you to name them as additional insured before you can vend on their site, so ask your agent about certificates of insurance early.

How should you price your menu?

Price for profit, not just to match the truck next to you. Start from food cost: if an item costs you $3 in ingredients and you want a 30 percent food cost, price it around $10. Then sanity-check against your market and your speed. Round to clean numbers that make change fast, and don't be afraid to charge for quality — customers at a food truck expect to pay a bit more than fast food for something better. Combos and add-ons (a drink, a side) are the easiest way to lift your average ticket.

Where do you find locations and events?

Your location strategy is your revenue strategy. A great truck in a dead spot still loses money. Build a rotation of reliable, high-traffic opportunities:

• Lunch spots: office parks, business districts, and campuses with hungry weekday crowds.
• Breweries and bars: many have no kitchen and welcome a rotating truck.
• Events and festivals: fairs, markets, and concerts bring built-in foot traffic — apply early, as spots fill fast.
• Private catering: weddings, corporate lunches, and parties are often your highest-margin bookings.

Track which locations and days actually make money and double down on the winners.

How do you get your first customers?

Social media is a food truck's storefront. Because you move around, people need a way to find you — so post your daily location and menu on Instagram, TikTok, and Facebook, and pin it where fans will look. A few habits that work:

• Post your schedule every day, at the same time, so regulars build a habit.
• Show the food up close — sizzle, steam, and the serving window sell better than logos.
• Encourage tagged photos and reshare them; customer posts are free, trusted marketing.
• Collect emails or a text list for events and catering leads.

For a deeper playbook, read our guide on how to get your first customers.

Frequently asked questions

Do I really need a commissary kitchen for a food truck?

In most US cities, yes. Health departments commonly require a licensed commissary for food prep, storage, water, and waste, and they often ask for a signed commissary agreement before issuing your permit. A few areas are more relaxed, so confirm with your county.

How long does it take to start a food truck?

Plan on three to six months. Buying a used, already-inspected truck can shorten it, while a custom build plus permit approvals can push it longer. Permitting timelines are usually the biggest variable.

Is a food truck cheaper than a restaurant?

Usually yes. Startup costs are a fraction of a brick-and-mortar restaurant, and overhead is lower. But food trucks come with their own costs — the truck, commissary fees, fuel, and repairs — so it's a real business budget, not a hobby budget.

Ready to launch?

Scafflow turns all of this into a personalized, ordered checklist — legal setup, permits, insurance, and marketing — so nothing slips through the cracks while you focus on the food. Build your free food-truck checklist and take the first step today.