Food Truck Business Overview

According to the dictionary, the definition of a food truck is a rather bland affair: “a large wheeled vehicle from which food is sold that typically contains cooking facilities where the food is prepared.” 

We all know food trucks are more than that. The variety of cuisines served by food trucks today is staggering – Korean barbecue, giant cupcakes, Philly cheesesteaks, Vietnamese banh mi, authentic tacos, Chinese stir fry, and much more. Food trucks let entrepreneurs inexpensively test concepts that might be too risky for a restaurant and many chefs and home cooks launch trucks as stepping stones to their own restaurants.

Most food trucks require 2-3 staff members to operate efficiently—one person handles orders and payments while others prepare the food. Some food truck owners start with a single vehicle and expand their operations by adding more trucks or transitioning into brick-and-mortar restaurants. The mobility of these businesses allows owners to test different locations and adjust their schedules based on customer demand.

Related: Checklist To Start A Business

How Do Food Trucks Make Money?

Food trucks earn their main income through direct food sales, with prices typically ranging from $8 to $15 per item. Most trucks focus on a limited menu of 5-10 signature items to maintain quality and speed of service. The average food truck serves 50-100 customers during a lunch rush, with payment collected through point-of-sale systems that accept both cash and cards. Food costs usually account for 25-35% of the menu price, allowing trucks to maintain profitable margins while keeping prices competitive with traditional restaurants.

Industry Statistics

Food trucks are part of NAICS code 722330 – Mobile Food Services. This industry consists of businesses that prepare and serve food from motorized vehicles or non-motorized carts.

Here are some interesting statistics about mobile food services:

Food Truck Industry Size & Growth: The food truck industry generates $2.4 billion in annual revenue. The industry has shown strong performance, with a 10.9% average annual growth over the past five years. Growth projections expect annual growth of 6.5% through 2029 as consumers continue to embrace casual dining options and diverse food choices. The rise in urban office workers and increased acceptance of food trucks in city centers supports this upward trend. (IBISWorld)

Number of Food Trucks: There are 58,064 food truck businesses operating across the country. The industry remains highly fragmented, with no single operator controlling more than 5% of the market. This fragmentation occurs because of the relatively low barriers to entry and the local nature of food truck operations. (IBISWorld)

Food Truck Profit Margin: Food truck businesses typically maintain gross profit margins between 65-75%, with net profit margins ranging from 6.2% after accounting for operating expenses, labor costs, and overhead. (National Restaurant Association)

States with Most Food Trucks: California, Texas, and New York have the highest concentration of food trucks, particularly in major metropolitan areas. Cities like Los Angeles, Austin, and Portland have created designated zones and favorable regulations that have helped increase the number of food trucks in these regions. (U.S. Census Bureau)

Costs To Start a Food Truck

Starting a food truck typically costs between $30,000 and $100,000. The total cost varies based on the size of the truck, equipment needs, and local permits.

There are several expenses when starting a food truck business, but here are some of the more expensive items:

Food Truck Vehicle: A food truck can cost between $15,000 and $50,000. Used trucks generally fall at the lower end of this range, while new, custom-built trucks with professional kitchen layouts are at the higher end. The truck needs to meet health department requirements and have proper ventilation systems installed.

Commercial Kitchen Equipment: Commercial-grade kitchen equipment costs between $10,000 and $25,000. This includes cooking equipment like grills, fryers, ovens, refrigeration units, food prep tables, and storage solutions. The exact equipment needed depends on the menu items being prepared.

Licenses and Permits: Food truck permits and licenses generally cost between $2,000 and $5,000. This includes health department certifications, food handler permits, vehicle licenses, and local operating permits. Some cities require additional permits for specific locations or events.

Generator and Utilities: Power systems for the truck cost between $3,000 and $7,000. This includes a commercial generator, propane tanks, water tanks, and electrical systems to run all the equipment. The generator needs to be powerful enough to handle peak usage during busy service times.

These estimates will vary depending on location, equipment choices, and business requirements.