How to Start a Food Truck: Real Costs, Permits and Commissary Rules

The startup budget

National ranges. Big-metro permitting (Los Angeles, New York, San Francisco, Chicago) costs more and takes longer; some cities cap permits or run lotteries.

The paperwork, in order

• Business registration and EIN — LLC in most cases, a day online.
• Food handler certification for every employee and a food protection manager certification (ServSafe or equivalent) for at least one person on the truck — required in most states, $15 and $150-200 respectively.
• Commissary agreement — a signed letter from a licensed commercial kitchen where the truck will park overnight, prep, take on water and dump gray water. Health departments won't schedule your inspection without it.
• Plan review with the county or city health department — layout, sinks (three-compartment plus hand sink, almost universally), water tanks, refrigeration. Fix it before the build, not after.
• Health permit / mobile food facility permit — the inspection, then an annual fee of $300-1,500.
• Fire department inspection of the suppression system, annually.
• Mobile vending license from the city — the one that says where you may park and for how long. This is where big cities get restrictive; New York's permit cap created a secondary market that cost operators five figures for years.
• Sales tax permit, and a seller's permit in each city you regularly work, plus event-specific permits for festivals.

The operating math

A working truck grosses $1,000-3,000 on a good day and near zero on a rainy one. Food cost runs 28-35%, labor 25-35% (two to three people on the truck), and then the truck-specific lines: commissary, fuel, generator fuel, maintenance, event commissions of 10-25% of sales at festivals, lot fees at lunch stops, and the annual permit stack. Net margins of 6-10% are typical for a well-run truck; the ones that do better have a catering calendar — private events (see Food Truck Catering Cost) pay a guaranteed minimum with no commission, which is why experienced operators chase weddings and corporate lunches over festivals.

A rough break-even: $150,000 all-in, financed, needs roughly $350,000-450,000 in annual sales to service debt and pay the owner — about 200 working days at $2,000 gross. That's the whole business plan in a sentence, and it's why the menu should be short, the prep should happen at the commissary, and the truck should be booked before it's built.

What the customer never sees

Everything above is why a $14 plate is a $14 plate, and why the guide to food trucks says the truck is a restaurant without rent, not a restaurant without costs. The restaurant guide has the brick-and-mortar comparison for anyone deciding between the two.

Frequently Asked Questions

How much does it cost to start a food truck?

$50,000-200,000 all-in in 2026. A used truck with a kitchen runs $30,000-70,000, a new custom build $80,000-120,000 or more, and then fire suppression, generator, permits, a commissary agreement, insurance, POS and three months of working capital.

What is a commissary kitchen and do I need one?

A licensed commercial kitchen where the truck is based: overnight parking, prep, fresh water, gray-water disposal. Most health departments require a signed commissary agreement before issuing a mobile food permit. Expect $400-1,500 a month.

What permits does a food truck need?

Business registration, food handler and food manager certifications, a health department mobile food permit (after plan review and inspection), fire suppression inspection, a city mobile vending license, a sales tax permit and event permits for festivals. Costs and timelines vary by city; big metros are slower and pricier.

Are food trucks profitable?

Well-run trucks net 6-10% on $300,000-500,000 in annual sales. The profitable ones lean on private catering, which pays a guaranteed minimum with no event commission, and keep the menu short enough to prep at the commissary.