Research & Benchmarks
Complete industry data and benchmarks we use and publish: startup costs, permits, revenue, insurance, equipment, labor, technology, and profitability timelines for food truck and catering businesses.
Startup & One-Time Costs
Food truck startup cost range
Based on analysis of 500+ launches, total investment typically falls between $50,000 and $200,000. Breakdown: vehicle & equipment 60–70%, permits & legal 3–5%, initial inventory 3–4%, marketing & branding 4–6%, working capital 15–20%.
Full breakdown and examples →Typical permit costs
Permit costs vary by location: roughly $500–$5,000 annually. This includes health permits ($100–500), business licenses ($50–500), mobile food facility permits ($200–1,000), and any parking or special-event permits.
FAQ: permits →·Permits by state/country →Average revenue bands (food truck)
Successful food trucks often report $10,000–$25,000+ monthly revenue after ramp-up; top performers can reach $200k–$300k+ annually. Results depend on concept, location, and operations.
Real-world examples in startup cost article →Time to launch
Typical timeline from idea to launch: 3–6 months. Includes permits (2–8 weeks), truck/equipment (4–12 weeks), and prep/marketing (2–4 weeks). Our 90-day launch plan compresses this for focused execution.
90-day launch plan →Ongoing Operating Costs
Food truck insurance cost
Annual insurance premiums typically range from $2,000–$6,000 depending on vehicle value, annual revenue, coverage limits, location, and claims history. Costs increase with employee count (workers' compensation) and if you serve alcohol.
Insurance cost breakdown →·Insurance guide →Food cost and margin targets
Target food cost 28–35% of menu item selling price; contribution margin (revenue minus ingredients) ranges 65–72%. Prime cost (food + labor combined) should stay under 60% to maintain profitability.
Menu costing guide →·Menu engineering →Labor cost benchmarks
Labor typically represents 25–35% of revenue for food trucks. This includes wages, payroll taxes, and workers' comp. Single-owner trucks run lower; multi-staff operations push toward the higher end. Overtime and location significantly impact costs.
Profitability & forecasting →Equipment cost ranges
Cooking equipment: $15,000–$25,000. POS system: $2,000–$5,000. Refrigeration & prep: $5,000–$12,000. Total vehicle + kitchen equipment: $50,000–$150,000 depending on new vs. used and feature complexity.
Equipment guide →·Financing options →POS and technology costs
Monthly POS subscription: $50–$200+. Payment processing fees: 2–3% per transaction. Hardware (tablet, reader): $500–$2,000 one-time. Many modern systems offer all-in-one bundles for monthly fees.
Best POS systems →·Mobile POS guide →Revenue & Profitability
Break-even and profitability timeline
Typical break-even timeline: 6–12 months after launch. Successful food trucks reach $50,000–$100,000+ annual profit by year 2–3. High-performing trucks in premium locations can exceed $200,000 annually; under-optimized operations may take 18+ months or fail to reach profitability.
Real-world examples →·Profit calculator →