Perhaps the most exciting aspect of opening a food truck rather than a traditional restaurant is the idea that it is a great bargain. However, the actual food truck costs endured mainly depend on where you live.

How much does a food truck cost? The answer is that it depends. Here are a few food truck cost factors that determine startup and running costs.

Food Truck Vehicle Costs

Depending on its age and the bells and whistles it features, food trucks costs will differ. The price of the trucks will depend on:

• The condition (new or old)
• The size
• Appliances included
• The location you make your purchase

A no-frills truck will cost you considerably less than a finished custom food truck. In addition, if you live and plan to run your food truck business in an expensive market, you are likely to pay a premium. Depending on whether you choose a new or used vehicle, the price of a food truck will run anywhere between $50,000 to $175,000.

How much does a food truck cost to rent?

While purchasing a new truck can cost you pretty much money, those costs can drop when you choose to rent your truck instead. For a six-month lease or longer, you can expect to spend $2,000 to $3,000 a month on a vehicle. 

Food Truck Decor and Equipment

Most food trucks are walk-ins that are customized to meet the requirements of cuisine service. When you start with a previously owned food truck already furnished for service, you might only have to make minor changes or updates to fit in with your model.

However, if you are starting from scratch, this can be a more significant task.

Steps to Take Once You Have Your Truck

Here is a breakdown of the basic steps involved once you get a vehicle in place. You need to:

• Install electrical wiring
• Mount the interior
• Make holes for your serving window and ventilation
• Furnish the interior walls with fireproof materials
• Set up gas, hood, cooking equipment, and propane tank
• Install plumbing
• Configure your generator
• Furnish the exterior of your truck and have it covered

These steps require different professionals. You can choose to work as an independent contractor or hire a firm that specializes in customization to handle the task.

Food Truck Kitchen Space

Preparing and serving food on wheels are two different things, and mostly it is not practical.

However, you can rent space in a commercial kitchen to prepare and store food. Commissary space is vital to a food truck’s operations since most cities require commissary arrangement proof as part of their food truck application process. Renting commissary space can cost up to $1,500 per month, often including yearly and hourly fees.

Licenses and Permits

Restaurant licenses and permits pile up quickly for any food business, even when your operation is mobile. 

To open a food truck and run for a year, you can spend an average of $28,276 on licenses, permits, and legal compliance.

What to Expect

Here is a walkthrough of some of the essential licenses and permits food truck operators should expect to have:

• Business certificate and Employer Identification Number (EIN)
• Seller’s permit
• Truck license
• Fire inspection
• Health permits
• The total cost

Taking the First Step

When you add up all these estimates to determine how much a food truck costs, you can expect to spend around $70,000 to $250,000 to start your business. However, this doesn’t include general restaurant startup costs, such as food, equipment, kitchen tools, and labor. Although it is relatively less expensive to start a food truck than to operate a traditional restaurant, it is an investment that needs careful planning. Contact us today with any questions you have about starting your food truck business.

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1. Higher Food Truck Cost and Custom Platforms Go Hand-in-Hand

First of all, let’s be clear: a higher up-front food truck cost does not really mean you are paying more. In fact, when people buy a food truck that’s custom to their needs, the overall cost is significantly less. Last year more than 80 percent of food truck businesses failed within the first two years of operation. The main reason was that they invested in a used food truck that was designed for another business model and its goals. While you may save money on the upfront cost by going used, you run the risk of malfunctions, equipment breakdown, mechanical problems, and you are running a business within a space that wasn’t designed to accommodate your growth goals. Overall, the food truck cost is less when you invest more upfront with a custom truck, as this will save you thousands over the years to come.

2. Demand High-Quality Equipment

When justifying cost, equipment should be front and center. Your range, oven, fryer, freezer, griddle, and other pieces of food truck equipment are core to your business–without these, you would not be able to serve your customers. Some food truck companies will have lower price points on their products by cutting corners, and one of the most common ways food truck builders cut corners is to outfit their design with used, low-quality food truck equipment. Instead, justify food truck costs by working with a builder that uses the latest, new equipment and that uses competitive pricing and manufacturer relations to help their customers gain more savings. 

3. Growth-Driven Design Must be Included

Your business, menu, and goals are unique. This means the food truck cost should include a growth-driven design, as it is the foundation of your ability to be successful. The best food truck companies will look at your business model, short-term and long-term goals, menu, target customers, market, competitors, and use this data to engineer a food truck with the right platform space to make your business highly successful and sustainable. For example, let’s pretend you have seven menu items and you plan to work alone for your first two years of business. In year three you want to add a rotisserie, double the items on your menu, and hire two employees. Your food truck cost should include a growth-driven strategy in which the builder designs a space that will serve you well going out the gate, as well as help you grow and be profitable for years to come.

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Food Truck Companies

The food truck cost from a reputable builder can easily be justified, because the best food truck companies only use the best materials and equipment, and they use growth-driven design in all of their projects. In other words, paying a higher sticker price for a food truck that’s been manufactured from a replicated model that mirrors hundreds of other trucks that rolled off the manufacturer’s floor does not justify a reasonable cost, but working with a company that only builds custom models based on their client’s growth goals and customers most certainly does justify a price that’s right up there with the best of them. 

Food Truck Cost and Materials

A competitive budget should always be associated with trucks made from the highest quality materials. Cheap food trucks tend to be made with plastics and other porous materials that are hard to clean, dry, and that allow mold to grow and thrive. If you are looking at a food truck cost that seems high, there needs to be a good reason to justify it. This means the entire interior should be made from high-quality stainless steel as it is easy to clean, resistance to mold, and is very hygienic. That said, the things to consider when building a food truck that justifies a higher cost are high-quality materials in a custom build for your needs, and for your customer’s wants. 

How Equipment Plays into Food Truck Cost and a Good Investment

Needless to say, used food truck equipment will garner a lower cost. However, in the long run this investment will likely cause you to lose thousands of dollars. Last year more than 80 percent of food trucks failed within their first two years of business. The main reason is that so many bought used food trucks with second-hand equipment. Ongoing breakdowns and the need for expensive repairs not only bled businesses dry, but all that time off the streets caused their customers to go elsewhere and form new loyalties with competing businesses. That said, cost is always justified when you get brand new equipment, on a custom designed platform meant to help you achieve your specific growth goals, rather than fit some universal model that only works for a small fraction of businesses.

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Buy New Custom Food Trucks or Used?

When it comes to trying to lower the food truck cost, a lot of people think going the used route will save them the most money. But in reality, custom food trucks offer better savings. Last year more than 80 percent of all new food truck businesses reported failing within their first two years of business. The number one reason why they failed was truck and equipment malfunction. When you buy a used food truck there is no guarantee you are investing in reliable equipment. In addition, a previously owned food truck was designed for another business with a platform to foster their current needs and future growth goals, and not yours. If you were planning to have kids you probably wouldn’t buy a one-bedroom house because it wouldn’t accomodate healthy growth, and the same ideology applies to a food truck’s platform. Therefore, the cost of a used food truck will likely be a bad investment and certainly a risky one either way you cut it. This is why buying new custom food trucks designed for your needs pay off. 

Work with a Builder that Justifies Food Truck Cost

Be sure you partner with a builder that can justify the food truck cost by showing how it aligns with your plans to hit your growth goals. For example, if you and your partner decide you want to start a food truck business yourself, and have five items on your menu with the goals to double your menu items, invest in a deep fryer and add an extra employee if you can gain a 40 percent profit on your business at the end of the year, then the cost of your food truck should justify the things you need to hit these goals. In cases like this, the best food truck companies will create custom food trucks designed to accomodate your current needs with just enough space to allow you to grow into your target business model. This means the food truck cost must support a build that will promote growth, based on your plans, from start to finish. 

Food Truck Cost and Equipment

One sure way to run into problems with your food truck business is to try to keep the upfront food truck cost down by investing in low-quality equipment and materials. For example, porous materials like heavy duty plastics, tiles, wood and other items can be difficult to clean, trap moisture, collect food debris, and grow mold. The last thing you need is to have sick customers and the health department lowering your grade and fining you. This is why investing in high-quality stainless steel and the best equipment will justify the food truck cost while presenting you with an efficient workspace that’s easy to clean (and keep clean) and that will enable you to run an efficient business with delighted customers lined up around the corner. 

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But let’s explore food truck cost in greater depth, and define the factors that matter most. This article will help people interested in buying a food truck make an educated purchasing decision based around value.

The Cost of Used Food Trucks is Deceiving

All too often, people think they are saving money when buying a previously owned food truck. But when it comes to buying a food truck that’s used, most only focus on the sticker price and therefore fall into the illusion they are saving money.

In reality, used food trucks are more prone to repair-needs, and often these come up fairly regularly. In addition, engine problems and other mechanical issues can surface that throw your food truck out of commission. Not only will you have to pay for repair bills, but the loss of revenue and the dip in traffic you will later experience as a result to customers going to your competitors will cause an overall greater loss.

Food Truck Cost is Relative to Business Goals

If your goal is to expand and grow your business, then you will need a food truck built to accommodate your current and future needs. If you only have your sights set on maintaining a small operation, then you don’t want to overspend on something you will never utilize. The best food truck companies ensure all clients gain real value by investing in a food truck that will help them hit their short and long-term goals. The upfront investment cost will be based on growth goals, and a good food truck builder will be able to offer a competitive price for a custom food truck that will help their clients keep cost down and make wise investment decisions for their business.

Food Truck Equipment Cost

The best custom food truck companies will offer equipment at an affordable price. Ranges, refrigerators, freezers, griddles, friers, stoves and ovens can eat into the food truck cost rather quickly. This is why top food truck builders offer high-quality equipment at lower prices than the competition. Do your research and look for average cost, and look into the various brands. Read consumer reviews, and educate yourself. Even though your food truck builder is already well-versed in the world of food truck equipment, entering a relationship with a builder in which you know enough to be dangerous is always beneficial.

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