Food Trucks

A food truck can be a fun cash flow business for a culinary-minded entrepreneur... but margins can be a challenge

The food truck industry has exploded in popularity over the past decade, merging the demand for unique, gourmet food options with the convenience and mobility of fast food. However, as with any business, launching and operating a successful food truck involves significant planning, investment, and ongoing management.

The typical startup costs for a food truck business can range from $50,000 to upwards of $200,000 depending on a variety of factors such as the cost of the truck itself, kitchen equipment, initial inventory, licenses, permits, and marketing. Used trucks can be cheaper but may require more maintenance, while new, custom-designed trucks can be quite expensive.

Food trucks generally operate with high gross profit margins—around 60-70%—but much lower net profit margins of 10% to 20% once labor is taken into account. Much of the profitability depends on controlling food costs, optimizing operations, and managing overhead, such as commissary and parking fees, maintenance, and fuel costs. Here’s a typical P&L for a single food truck: