The Hidden Costs of Running a Food Truck

Food trucks are often seen as a lower-cost alternative to brick-and-mortar restaurants, and while it’s true that they generally require less startup capital, many new owners underestimate the hidden costs that come with operating one. Beyond the obvious expenses of buying the truck, cooking equipment, and ingredients, there are recurring and unexpected costs that can impact profitability.

Understanding these hidden costs can help you budget more accurately, avoid financial surprises, and run a sustainable business.

1. Permits, Licenses, and Inspections

Operating a food truck legally requires more than just a business license. Costs vary by city, but they can add up quickly.

• Business license fees – Required in almost all municipalities.

• Health department permits – Inspections for food safety compliance.

• Parking permits – Some cities charge daily, weekly, or monthly fees for designated spots.

• Event fees – Participation in festivals and fairs often requires additional vendor fees.

• Fire and safety inspections – Regular checks of propane tanks, fire extinguishers, and ventilation systems.

Hidden challenge: Many permits must be renewed annually, and cities often have overlapping jurisdictions, meaning you may need multiple licenses if you operate in more than one area.

2. Maintenance and Repairs

Food trucks endure heavy wear and tear—both from cooking equipment and constant driving.

• Vehicle maintenance – Oil changes, brakes, tires, suspension, and engine repairs.

• Generator upkeep – Frequent fuel, oil, and part replacements to keep refrigeration and cooking equipment running.

• Kitchen equipment repairs – Fryers, ovens, refrigerators, and griddles break down faster in mobile environments.

• Custom bodywork – Fixing dents, leaks, or rust is often more costly than on regular vehicles.

Hidden challenge: Repairs often take your truck off the road, which means lost revenue in addition to repair costs.

3. Commissary and Storage Costs

Many cities require food trucks to operate out of a licensed commissary kitchen. Even if not mandatory, storage space is usually necessary.

• Commissary kitchen rental – Monthly or hourly fees for prep space, dishwashing, and ingredient storage.

• Cold storage rentals – For bulk ingredients that don’t fit in the truck.

• Waste disposal fees – Commissaries charge for grease disposal and general waste.

Hidden challenge: Commissaries are often located outside city centers, so travel time and fuel costs also add up.

4. Insurance and Legal Expenses

Protecting your truck, staff, and business requires more than basic insurance.

• Vehicle insurance – Higher than personal auto policies due to commercial use.

• General liability insurance – Covers accidents or foodborne illness claims.

• Workers’ compensation – Required if you employ staff.

• Event-specific insurance – Many festivals demand proof of additional coverage.

• Legal fees – Trademarking your brand, reviewing contracts, or handling disputes.

Hidden challenge: Premiums can rise quickly if you operate in high-traffic areas or have a history of claims.

5. Fuel and Power

Energy costs go beyond filling the gas tank.

• Gasoline or diesel – Regularly driving to locations and events adds up.

• Generator fuel – Often requires propane, diesel, or gas.

• Propane for cooking – A recurring expense for grills and fryers.

• Electric hookups – Some commissaries and events charge extra for power access.

Hidden challenge: Fluctuating fuel prices make monthly budgeting unpredictable.

6. Marketing and Technology

To stand out, you’ll need to invest in more than word-of-mouth.

• Website hosting & design – A mobile-friendly site is essential.

• Social media advertising – Paid promotions help reach local audiences.

• Menu boards & signage – Frequent reprinting when menus or prices change.

• POS systems – Credit card processing fees (2–3% per transaction).

• App listings – Some mobile ordering platforms charge commission fees.

Hidden challenge: Customers expect fast, cashless payments, but transaction fees silently eat into profits.

7. Staffing Costs

Labor often costs more than owners anticipate.

• Wages – Must stay competitive to attract reliable staff.

• Overtime pay – Long event days and festivals often push hours beyond standard shifts.

• Training – Teaching food safety, customer service, and equipment use.

• Uniforms – Shirts, hats, aprons, or branded gear.

• Turnover costs – Hiring and training new employees when staff leaves.

Hidden challenge: Because trucks are small, labor inefficiencies (like understaffing or overstaffing) can quickly eat into profits.

8. Seasonal Challenges

Weather and customer demand are not always in your favor.

• Slow seasons – Cold winters or rainy months mean lower foot traffic.

• Event cancellations – Outdoor events can be canceled due to weather with little to no refund.

• Storage during downtime – Trucks not in use may require paid storage facilities.

• Staff retention – Difficult to keep workers during off-seasons.

Hidden challenge: Income is inconsistent, but many expenses (insurance, permits, commissary fees) remain fixed.

Conclusion

The appeal of owning a food truck lies in mobility, lower startup costs, and direct customer interaction. However, hidden expenses can significantly impact profits if not anticipated.

To run a successful food truck business, owners must:

• Budget realistically with extra margin for surprises.

• Maintain strong financial records.

• Expect ongoing costs in permits, repairs, insurance, labor, and downtime.

By planning ahead for these hidden costs, you’ll not only avoid unpleasant surprises but also build a more resilient and profitable food truck operation.