A Complete Guide to Starting a Food Truck Business

Posted 5 years ago by Jesse Ness, 붚죕쳔 Team

The food truck business is혻booming.

This industry is혻poised to혻grow to혻$2.17혻billion in혻the혻US혻by혻2017혻�� 껸桂꾈깎껸곶깜꿎 four-fold increase from $650혻million in혻2012.

For many entrepreneurs, a혻food truck business represents a혻great way to혻make money while doing something they love혻�� creating fresh flavors 껸꾈삣桂bringing them to혻a혻hungry audience.

In혻order to혻start a혻modern food truck business, you will need a혻few more things than the혻truck itself혻�� a혻website to혻inform visitors about your location 껸꾈삣桂daily menu, 껸꾈삣桂a혻convenient way to혻collect payments.

In혻this post, we�셪l show you everything you need to혻start a혻food truck business.

How to혻Start Your Food Truck Business with 붚죕쳔

As혻an혻entrepreneur, starting a혻food truck business is혻an혻exciting idea indeed. But you can�셳 just buy a혻truck, find a혻parking spot 껸꾈삣桂start dishing out the혻delicious fare. There are a혻number of혻legal issues you have to혻take care of혻�� licenses, permits, insurance, etc.혻�� before you can hit the혻road.

We�셶e broken this guide into four sections:

Deciding on혻a혻concept for혻your food truck
Getting permits, licenses 껸꾈삣桂meeting regulatory requirements
Buying 껸꾈삣桂equipping the혻food truck, hiring employees, etc.
Operating 껸꾈삣桂promoting your food truck

Let�셲 look at혻each of혻these in혻detail.

Deciding on혻a혻Food Truck Concept

Food trucks are very different from full-fledged restaurants. You are limited by혻space, equipment 껸꾈삣桂customer expectations. Most food entrepreneurs find that this business is혻all about striking a혻balance between what you can provide vs. what you want to혻provide.

There are three things you must consider before you start:

Space: Space constraints mean that you can�셳 fit all the혻equipment you want inside the혻truck. It혻also means that you can serve a혻limited number of혻customers each day.
Time: Most cities allow trucks to혻operate only 2-4혻hours in혻a혻day, usually around lunch time. If혻the혻food you want to혻serve takes too much time to혻cook, you�셪l struggle to혻make a혻profit.
Customer demands: Since food trucks usually serve lunch, customers prefer dishes that are relatively light 껸꾈삣桂affordable. Given that there is혻no혻dining area or혻proper cutlery, they also prefer foods that are easier to혻eat.

The food truck business attracts a혻lot of혻adventurous people혻�� both as혻chefs/business owners 껸꾈삣桂customers. As혻such, there is혻a혻trend to혻offer more adventurous dining options. Think fusion foods, ethnic cuisine, 껸꾈삣桂fresh takes on혻old classics.

Start by혻identifying a혻clear, underserved niche. Then evaluate your cooking skills 껸꾈삣桂passions. What kind of혻cuisines excite you? What foods do혻you enjoy cooking (and serving)? Can you find a혻way to혻make these foods different 껸꾈삣桂easier to혻eat?

Do혻a혻survey of혻popular food trucks in혻your city. Evaluate what dishes they are selling, what price they are selling for, 껸꾈삣桂what kind of혻equipment they are using.

Doing this homework will make a혻long way towards making your food truck a혻success.

Getting Permits 껸꾈삣桂Licenses

Most cities treat food trucks like conventional restaurants. This means that they have to혻fulfill several regulatory requirements, comply with health 껸꾈삣桂fire safety codes, 껸꾈삣桂have all the혻necessary permits 껸꾈삣桂licenses.

For many food truck owners, this is혻the혻hardest, 껸꾈삣桂the혻most time-consuming part of혻the혻business.

Let�셲 look at혻everything you�셪l need to혻start your food truck:

1.혻Figure Out Local Requirements

The first step in혻starting a혻food truck is혻to혻understand (and meet) local city requirements.

While most cities have well-defined guidelines for혻brick 껸꾈삣桂mortar restaurants, food trucks usually operate in혻a혻gray zone. Smaller cities sometimes don�셳 even have any혻fixed guidelines for혻their operation.

Start by혻searching your city�셲 local requirements. Use a혻query like this:

[city name] +혻food truck guidelines

For example, New York City has a혻 (what NYC calls food trucks).

You might also have to혻meet some state requirements. Your city�셲 website should tell you what these requirements are 껸꾈삣桂how to혻meet them.

Lastly, search 껸꾈삣桂see if혻your city has a혻local association of혻food truck owners. Most large cities have at혻least one such association. , for혻example.

These local associations can be혻a혻massive source of혻help in혻understanding 껸꾈삣桂meeting local requirements. These requirements can be혻very detailed for혻some cities; not meeting them can jeopardize your license/permit.

For example, :

Always face the혻sidewalk
Have a혻clearly marked trash can next to혻the혻truck
Have the혻hatch at혻least 7혻feet above the혻sidewalk
Have a혻bathroom letter from an혻acceptable bathroom nearby

Your local food truck association can help you meet these often complex requirements.

2.혻Incorporate Your Business

Most cities require some form of혻proof of혻business before they�셪l give you a혻permit. This proof can be혻in혻the혻form of:

A혻business certificate (for a혻food truck owned by혻an혻individual)
A혻partnership certificate (for a혻partnership involving two or혻more persons)
Proof of혻incorporation (as an혻LLC or혻corporation)

Although you can start off without incorporating (i.e. run the혻business as혻a혻sole proprietorship), we혻highly recommend starting an혻LLC. It혻limits your liabilities 껸꾈삣桂makes accounting, taxation, etc. easier. In혻a혻venture like food trucks, this is혻a혻must.

Check out this article to혻know the혻difference between an혻LLC 껸꾈삣桂a혻corporation 껸꾈삣桂how to혻start one.

You might also need to혻file a혻혫Doing Business As혻(DBA혬 form in혻some states. This form identifies what name your food truck operates as, 껸꾈삣桂if혻it혻is혻different from your legal entity (individual or혻corporation).

3.혻Get Basic Licenses 껸꾈삣桂Permits

Almost every city has two basic legal requirements for혻food trucks:

A혻license that legally authorizes a혻person to혻operate a혻food truck
A혻permit that gives a혻food truck license owner permission to혻run the혻food truck

You need to혻get a혻license before you can get a혻permit. There is혻no혻waiting list to혻get a혻license, though there are several requirements you must fulfill before applying.

In혻NYC, for혻instance, you need the혻following before applying for혻a혻license:

Apply for혻껸꾈삣桂clear the혻

Besides these, you�셪l also need ID혻껸꾈삣桂address proof.

Once you get your license, you can apply for혻a혻permit. Unfortunately, permits are limited in혻most large cities. There is혻usually a혻waitlist of혻several weeks 껸꾈삣桂even months in혻cities like NYC.

The documentary requirements for혻a혻permit are also extensive. In혻:

A혻list of혻everyone working in혻the혻food truck (i.e. employees)
Workers compensation 껸꾈삣桂disability insurance coverage
Business certificate/proof of혻incorporation

There is혻certainly quite a혻bit of혻planning that goes into getting a혻permit. You�셪l at혻least want to혻incorporate 껸꾈삣桂get insurance before you apply for혻the혻permit.

4.혻Get Additional Licenses 껸꾈삣桂Permits

A혻basic food truck permit gives you the혻legal authorization to혻operate a혻food truck. But before you can hit the혻streets, you need to혻get a혻number of혻other local 껸꾈삣桂state permits.

We혻recommend getting these only once your food truck permit is혻approved.

Here are a혻few local permits you�셪l need:

Alarm permit
Health permit
Zoning permit

You might also need a혻business license. This can be혻at혻the혻state or혻city level. Consult your to혻figure this out.

5.혻Buy Insurance

Broadly speaking, you need insurance for혻three things when starting a혻food truck:

Your employees: Most cities require food truck owners to혻buy appropriate insurance before they can apply for혻a혻permit. NYC, for혻instance, requires food truck owners to혻buy workers compensation 껸꾈삣桂disability insurance.

Getting this insurance is혻critical since a혻food truck is혻a혻혫dangerous혬 work environment a혻with significant risk of혻injury or혻accidents. Insurance will severely limit your liabilities in혻case of혻an혻accident.

Your business: What happens if혻a혻customer slips 껸꾈삣桂gets injured when buying something from you? Or혻what if혻a혻competitor sues you for혻infringing a혻trademark?

To혻protect yourself in혻such situations, you�셪l need business insurance in혻the혻form of혻general commercial liability insurance.

Additionally, you can also purchase property insurance to혻cover equipment inside your truck such as혻kitchen appliances or혻computers.

This is혻optional혻�� you likely won�셳 need this insurance to혻get a혻food truck permit혻�� but it혻is혻highly recommended.

Your truck: Your truck is혻your business�� lifeline, so혻of혻course, you�셪l want to혻keep it혻protected.

As혻a혻motor vehicle, you are required by혻law to혻purchase insurance. Larger trucks might fall under the혻혫commercial vehicle혬 category 껸꾈삣桂thus, require commercial vehicle insurance.

Keep in혻mind that most auto insurance policies don�셳 cover any혻equipment inside the혻truck, just the혻truck itself. You�셪l want to혻purchase property insurance if혻you want to혻cover the혻equipment.

We혻recommend talking to혻an혻insurance agent to혻figure out your requirements 껸꾈삣桂get a혻custom policy.

Buying the혻Truck, Hiring Employees 껸꾈삣桂Getting Health Permits

Once you�셶e got the혻basic permits, you can go혻ahead 껸꾈삣桂buy your truck.

We혻recommend doing this after you get permits because there is혻often a혻waiting period for혻permits.

You don�셳 want to혻sink money into a혻truck while you wait for혻a혻permit to혻get approved.

Let�셲 look at혻these steps in혻further detail.

1.혻Buy a혻Food Truck

This is혻the혻part food entrepreneurs enjoy a혻lot혻�� finding, equipping 껸꾈삣桂designing the혻food truck.
A혻new food truck with most necessary equipment will cost upwards of혻$75,000. A혻used truck can be혻purchased for혻$20,000혻to혻$40,000. Check out websites like 껸꾈삣桂 to혻find used trucks.

How you equip the혻truck will, of혻course, depend on혻your requirements. It�셲 a혻good idea to혻have a혻detailed list of혻all the혻equipment you will need based on혻what kind of혻food you want to혻make.

Keep in혻mind that you will also need to혻buy mandatory equipment to혻comply with your city�셲 health 껸꾈삣桂safety guidelines. These vary from city to혻city. Large cities like .

If혻you�셱e selling sandwiches, for혻instance, you will need:

Potable water
Hand wash sink
Wastewater sink
Hot holding area
Cold holding area

If혻you don�셳 have this equipment, you will fail health inspections.

In혻case you have a혻lower budget, you can opt to혻get a혻pushcart or혻kiosk instead. Most cities don�셳 treat pushcarts as혻restaurants 껸꾈삣桂thus, they have lower regulatory requirements.

2.혻Get Health 껸꾈삣桂Fire Permits

Before you can start operations, you need to혻get health 껸꾈삣桂fire permits. The former is혻particularly important since you are essentially running a혻restaurant.

Different cities have different requirements for혻getting the혻health permit. Boston, for혻instance, requires you to혻:

You also have to혻ensure that your truck meets health codes at혻both the혻state 껸꾈삣桂.

Failure to혻meet health requirements can wreck your plans, so혻make sure that you comply with all local guidelines before you apply for혻a혻permit.

The same applies to혻getting a혻fire permit.

3.혻Hire Employees (if Necessary)

You might or혻might not need employees when you�셱e starting out.

In혻case you do혻need employees, you will have to혻buy appropriate insurance, get an혻Employer Identification Number (EIN) 껸꾈삣桂file taxes.

If혻you�셱e in혻the혻US, here�셲 some help to혻figure this out:

Article on혻how to혻work with employees 껸꾈삣桂contractors

Running the혻Business

Once you�셶e bought a혻truck 껸꾈삣桂acquired all the혻right permits, you can focus on혻the혻operational aspects of혻your business.

For your food truck to혻thrive, you need to혻have a혻way to혻collect payments 껸꾈삣桂a혻way to혻notify people where you are parked for혻the혻day 껸꾈삣桂your day�셲 menu.

Let�셲 look at혻how you can do혻this below.

1.혻Setup a혻Website

Your website is혻the혻digital home of혻your truck. This is혻where you�셪l direct social media followers 껸꾈삣桂customers to혻learn more about your food truck 껸꾈삣桂what kind of혻food you sell.

A혻website is혻more important for혻a혻food truck than for혻a혻regular restaurant since the혻menu changes on혻a혻daily basis. You�셪l want a혻central hub where customers can find your latest menu 껸꾈삣桂see your location for혻the혻day.

This website doesn�셳 need to혻be혻complex. A혻simple page listing your menu, location 껸꾈삣桂a혻bit of혻background information will do혻fine.

The MeSoHungry food truck website, for혻instance, shows the혻truck�셲 schedule for혻the혻coming weeks.

An혻easy (and free) way to혻create this website is혻through 붚죕쳔�셲 Instant Site.

These are simple websites where you can share your location, your list of혻products, 껸꾈삣桂add custom content such as혻menus. The site plugs in혻with 붚죕쳔�셲 shopping cart so혻you can even use it혻as혻a혻digital POS.

As혻an혻example, here�셲 one 붚죕쳔 Instant site혻�� :

The best part is혻that you don�셳 even need your own domain to혻build this site. Moreover, the혻site is혻mobile-optimized, so혻your customers can access it혻on혻the혻go.

You can learn more about 붚죕쳔 Instant Sites here.

2.혻Setup Social Media

Social media serves two roles for혻food trucks:

Inform customers about your location/menu
Build 껸꾈삣桂market your food truck brand

Twitter is혻the혻go-to platform for혻informing customers about your location 껸꾈삣桂menu. For example, here�셲 how the혻 food truck in혻NYC uses Twitter:

But social media is혻more than just a혻broadcast tool. It�셲 also one of혻the혻most powerful ways to혻get the혻word out about your brand.

Most successful food trucks have a혻strong presence on혻at혻least one major social network, usually either Instagram or혻Facebook (and sometimes, both).

Food is혻a혻great 혫product혬 to혻promote on혻social media since it혻is혻very visual. Top food trucks such as혻Free Range LA혻have racked up혻thousands of혻followers by혻sharing multiple pictures every day.

If혻you�셱e going to혻use Instagram (or social media in혻general), here are a혻few must-read articles:

If혻you�셱e using 붚죕쳔, you can also automate some of혻your Instagram work by혻using this . 붚죕쳔 also has a혻. You can also get customers to혻share your products with .

3.혻Find a혻Way to혻Accept Payments

You will obviously need a혻way to혻accept payments. Unfortunately, a혻conventional POS with a혻merchant account can be혻both ridiculously expensive 껸꾈삣桂time-consuming 넨늡桂김곶늡낌넵곶깎.

A혻cheaper (and faster) alternative is혻to혻get a혻digital POS (Point of혻Sale) like 붚죕쳔.

붚죕쳔 connects with Square, Clover 껸꾈삣桂Paypal to혻offer you a혻way to혻collect payments offline. Usually, this involves connecting a혻card reader (such as혻Square) 껸꾈삣桂integrating with 붚죕쳔. Once integrated, you can 혫order혬 products through 붚죕쳔 껸꾈삣桂accept payments via the혻card reader.

This essentially gives an혻online store an혻offline presence.
You can learn more about 붚죕쳔�셲 POS here. You can also read more about Square.

4.혻Find a혻Spot 껸꾈삣桂Start Cooking

Finally, you can start cooking 껸꾈삣桂selling your delicious food.

But before you can do혻that, you need to혻find an혻approved parking spot.

Every city has restricted zones where food trucks cannot ply. You�셪l have to혻ask your city for혻approved streets. Most cities allow food trucks to혻operate for혻2-4혻hours at혻a혻stretch.

Once you find a혻spot on혻one of혻these streets, make sure to혻park as혻close to혻the혻curb as혻possible. Ideally, your spot should have enough space for혻people to혻grab a혻seat nearby.

Experiment with different locations 껸꾈삣桂timings. You�셪l find that the혻old 혫location, location, location!혬 maxim applies to혻food trucks as혻well.

Conclusion

Starting a혻food truck business seems like a혻daunting task. There are tons of혻permits to혻procure, hundreds of혻requirements to혻meet 껸꾈삣桂thousands of혻dollars to혻invest.

Try breaking down the혻entire process into smaller steps. Tackle each step one at혻a혻time 껸꾈삣桂make sure that you get your basics right. Building the혻food truck might be혻the혻most 혫fun혬 part of혻the혻business, but you also need to혻ensure that you have the혻permits 껸꾈삣桂licenses necessary for혻operation.

Happy cooking!

Do혻you want to혻learn more about selling food online?

About The Author

Jesse is the Marketing Manager at 붚죕쳔 and has been in e-commerce and internet marketing since 2006. He has experience with PPC, SEO, conversion optimization and loves to work with entrepreneurs to make their dreams a reality.

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