How Much Does a Food Truck Startup Cost?
Regardless of the industry you want to get into, opening a new business is never easy, especially from the financial side. Plenty of startup costs await, and you will need to have a healthy budget to get your company up and running.
In this article, we will go over the food truck startup cost and will show you:
We will also introduce DoNotPay’s loan request product—a quicker, more convenient way of making sure you secure a small business loan.
The first expenditure you will have to deal with is buying a truck. A food truck’s price ranges from $10,000 to $200,000. Buying the cheapest one is rarely the best option. Similarly, it is doubtful how much profit the pizzazz that comes with an expensive truck will make.
To stay on the safe side, you should buy a truck that costs around $50,000.
Aside from buying the truck, you will also have other initial expenses, as shown in the table below:
|Permit for a food truck||$20,000|
|Equipment and truck refurbishment||$45,000|
|Working capital for the first few months||$10,000|
|Other expenses, such as licenses, legal fees, and insurance||$5,000|
Although not an unavoidable cost, you should also include a 15% contingency to the total amount for any unexpected expenses. Adding the contingency means the total startup costs for a food truck go from $94,300 to $97,750.
Once you get your business going, the first aspect you should consider is the salary of your workers. You can cut down those costs to zero if you decide to be the only one employed.
That is not the best strategy as you will have to put your time and effort into other aspects of running a business instead of running a double shift handing out hot dogs. An average food truck manager earns $12.11 an hour, which translates to $2,018.33 per month.
While food truck businesses do not have to pay rent as restaurants do, there are several other expenses you have to pay on a monthly basis. These include:
- Gasoline—around $600 for both the truck and cooking gas
- Truck and equipment maintenance—$1,000
- Phone and internet—$200
Each month, a food truck startup costs from $3,350 to $4,350, without any potential salaries included.
When you embark on the food truck journey, you will need to shell out over $100,000 for the first month (without paying any employees), knowing that you have zero chances of making as much profit. If you do not have that kind of money, that does not mean you should give up on your idea.
As a food truck business owner, you can look forward to a variety of types of loans. They come with varying terms—some have lower interest rates, while others require less qualification to accept a request. Some of the best loans on offer are as follows:
- Online loans
- Credit lines
- The United States Small Business Administration (SBA) small business loans
- Equipment loans
Many companies fail to secure a loan due to complicated application processes. If you want to avoid this, you can subscribe to DoNotPay and let us guide you through the entire procedure.
Before you can start your food truck business, you need to take out a number of leases and permits, such as:
- Business license
- Seller’s permit
- Employer ID number
- Vehicle license
- Food safety permit
- Fire certificate
- Health department permit
What you need the least is to worry about additional paperwork a bank asks of you for a loan—let DoNotPay deal with that.
Our app will help you create a watertight loan request by making sure you submit all the necessary paperwork and include any detail the lender requires. We will run a checklist to see whether you left out any important documents, such as financial statements, a business plan, budget sheets, credit scores, and so on.
When you sign up for DoNotPay, all you need to do is the following:
- Navigate to the Business Loan Request Letter feature
- Gather your personal and business credit scores
- Prepare paperwork to prove you qualify
- Answer a few questions
- Upload all the necessary paperwork
If you’re still uncertain as to which lender you want to take out a loan from—we can assist you in finding the best one!
You can opt for our Find Online Business Loan Lender feature to get a list of three best lending institutions for the type of loan you need.
Alternatively, you can kill two birds with one stone—fire up our Business Loan Request Letter tool, tell us you don’t have a specific lender in mind, and let us find you one and draft a letter you can send to them right away!
Running a small business can be a challenging endeavor, but you can count on DoNotPay to make the situation easier! We have developed a number of handy features that you can use to deal with your business-related hurdles. With our help, you can:
- Send mail to your customers, investors, or business associates without wasting time going to the post office
- Register your business slogan, logo, or name as a trademark to prevent brand infringement
- Avoid copyright violations on your website by registering a DMCA agent
- Protect the privacy of your clients’ data by filing the Privacy Shield program self-certification request
- Contest unjust chargebacks and keep the revenue
- Deal with clients who breach the contract without wasting money on collection agencies or lawyers
Has one of the angry clients or envious competitors decided to leave a mean online review that could have a negative impact on your business? DoNotPay is here to help you remove it! We will analyze the problematic review and report it until it is taken down.
Don’t know how to protect your trademark and make sure no one else is using it? Our app can monitor the trademark on a monthly basis and send cease and desist letters if necessary.
Let our app take care of many other issues—such as filing 83(b) election forms, registering for an Employer Identification Number (EIN), taking out small business loans, and similar—while you concentrate on the creative side of your business.