How Much Does a Food Truck Cost To Operate in 2025?

The food truck industry is booming, with 10.3% annual growth from 2019 to 2024 in the US. These mobile businesses serve up unique foods at competitive prices, while giving entrepreneurs some great advantages: You can move where your customers are and keep your costs lower than a traditional restaurant. 

Let’s break down everything you need to know about food truck costs.

Understanding food truck costs

Starting a food truck business gives you three main options to consider:

New food trucks

A new food truck costs between $75,000 and $200,000, depending on your location and chosen features. While this requires the largest investment and takes a few months to prepare, you’ll start with reliable equipment and minimal maintenance needs. Custom features like truck wrapping and premium kitchen equipment can push that investment higher, but you’ll be starting fresh with everything built to your specifications.

Used food trucks

Starting with a used food truck brings your initial investment down to between $50,000 and $100,000. Another solid option is purchasing a used truck chassis and adding a new kitchen, which runs between $85,000 and $115,000 combined. While these options might need some mechanical work, you can typically start serving customers sooner rather than later, potentially leaving you better off in the long run.

Renting a food truck

Renting offers a path to starting your food truck business with lower upfront costs. With a six-month lease, expect to pay $2,000 to $3,000 monthly, though shorter leases typically cost more. This approach lets you get your business running while testing your concept before making a bigger investment.

Food truck startup costs

Food trucks have comparable startup costs to other food business ideas. Beyond the truck itself, you’ll need to account for several essential startup costs:

Permits and licenses

Working in the food industry means getting the right permits and licenses in place. According to the US Chamber of Commerce Foundation, these costs can range from just under $1,000 to tens of thousands of dollars, depending on your city. For example, a food truck operator will pay $590 in Minneapolis, $2,439 in Los Angeles, and $17,066 in Boston.

Kitchen equipment

Your kitchen equipment needs generally include basics like knives, cutting boards, pots and pans, food processors, blenders, and storage containers. If you’re buying a used food truck, you’ll also need to think about replacing or upgrading ovens, microwaves, and food prep surfaces to get ready for customers. These costs typically range from about $25,000 to $100,000 based on your needs and the condition of your truck.

Generator

A generator powers all your food truck’s operations. Expect to pay between $500 and $3,000, with the final cost depending on size, features, and power output.

Initial inventory

Your initial inventory includes all your ingredients plus serving items like napkins, plates, and utensils. While costs vary based on your menu, plan to set aside a few thousand dollars to get started.

Parking and storage

Most cities have specific rules about food truck parking. You’ll need to budget for costs like parking permits, overnight storage fees, and monthly food truck park rental rates. These can add up to anywhere from $30 to $1,500, depending on your facilities and whether you’re operating in a big city or a small town. 

Marketing

Most food businesses invest 3% to 6% of their annual revenue in marketing. If you’re just starting out and don’t have revenue projections yet, set aside around $1,500 monthly to build your customer base.

“We started with a market stall, fairly low financial startup costs—I think somewhere in the region of a few hundred pounds—to buy a griddle to cook the sandwiches on and some Tupperwares and basic kitchen equipment.” —Mathew Carver, Owner of The Cheese Bar

Food truck operational costs

Running your food truck involves several ongoing expenses:

Regulatory costs

Annual expenses like insurance, taxes, and permits keep your business legally compliant. These costs vary significantly by location—from $5,410 in Portland, Oregon, to $37,907 in Boston.

POS system

A point-of-sale system can be a one-time or ongoing expense. Initial hardware and software installation costs up to $2,000, with additional subscription fees running $500 to $1,000 yearly. You’ll also need to factor in payment processing fees, which can be either a flat rate or a percentage of your sales.

Staff

Food trucks typically need fewer staff than restaurants, thanks to their compact size. According to the US Bureau of Labor Statistics in 2023, food and beverage serving workers earned a median pay of $29,710 per year ($14.29 per hour), while cooks earned $34,320 per year ($16.50 per hour).

Maintenance

Maintenance costs can be tricky to estimate since they depend on your truck’s condition. It’s smart to set aside an emergency fund for unexpected repairs like engine problems or tire replacement.

Fuel

Whether you’re cooking with gas or propane, fuel costs will vary month to month based on current prices. Unless you’re running an all-electric food truck, this is an essential expense for powering both your equipment and driving your truck.

Marketing

Your marketing budget will depend on your goals and whether you hire professionals to help. In 2023, advertising, promotions, and marketing managers earned a median pay of $75.28 per hour, while public relations specialists earned $32.09 per hour. You can work with full-time staff, part-time employees, or contractors depending on your needs.

Insurance

Food truck insurance needs vary by business, but typically include vehicle coverage and a business owner’s policy covering medical payments and bodily injury liability. You can also get specialty coverage for situations like spoiled food or equipment damage from power outages. Most food truck operators pay between $2,500 and $4,500 annually for general liability and commercial auto insurance.

Storage and parking

Your monthly parking costs will depend on your location. For example, California requires food trucks to park at designated food facilities when not in use. In Los Angeles, you might pay a few hundred dollars monthly for parking, plus additional fees for freezer space and food storage if needed.

Food

While food costs vary by business type, profitable restaurants typically spend 28% to 40% of their revenue on ingredients. Your costs will depend on your menu—an ice cream truck will have different expenses than a full-service food truck.

Tips for cutting down food truck costs

Here are some practical ways to save money while running your food truck:

Buy gently used equipment

New kitchen equipment can be costly. Look for quality used tools that offer good value and won’t need immediate replacement.

Take good care of your truck

Regular maintenance and safe driving habits help you spot potential issues early, preventing costly repairs down the road.

Plan your menu strategically

Save money by buying seasonal produce and using ingredients creatively. For example, make stock from carrot peels and potato skins. Strategic menu planning helps you make the most of everything you buy.

Find efficient routes

Plan your driving routes carefully to minimize fuel consumption. Avoid frequent stops and starts, and travel during optimal times to reduce gas usage.

Consider financing options

You have several financing paths if you need help with startup costs:

• Equipment financing lets you use the purchased equipment as collateral, with interest rates from 4% to 30%, based on your credit score.
• A business line of credit works like a credit card—you only pay interest on what you use. This option helps build your business credit rating while covering unexpected expenses.
• SBA loans offer flexible repayment terms and lower interest rates. These government-backed loans often work well for first-time entrepreneurs, even without perfect credit.