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Over the past five years, Canada’s street food industry has grown at a steady rate of 6.2% per year, reaching an estimated $418.5 million in 2025, according to IBISWorld. The same data reveals that there are only 3,138 food trucks in the country, suggesting that, despite challenges such as operating restrictions and tariffs, there are still opportunities to enter the market.
Why? Consumers are eager for access to unique, high-quality food at affordable prices, something that food trucks are uniquely suited to provide. For example, 61% of Canadians are more likely to visit a quick-service restaurant with healthier menu options, according to the Square Spring Restaurant report. If it’s been your dream to start a lower-overhead food service business, here’s everything you need to know about how to start a food truck.
Checklist: How to start a food truck in 11 steps
- Explore your local food truck scene
- Create a unique food truck concept
- Write a food truck business plan
- Calculate your costs and secure funding
- Obtain the licenses and permits needed
- Find a location
- Follow food safety and health regulations
- Purchase food truck equipment
- Choose the right food truck POS system
- Create a marketing strategy
- Soft-launch your food truck business
1. Explore your local food truck scene
If you’re looking at how to start a food truck business, begin by researching your local food truck scene to identify market gaps and discover customer preferences. Market research will help you craft a unique and profitable concept:
- Visit local food truck events and festivals to observe trending cuisines, underserved food types, pricing and crowd engagement.
- Follow local food trucks on social media to track their locations, menu changes and customer interactions.
- Use review platforms (Yelp, Google Reviews, etc.) to analyze what customers like or dislike about existing food trucks.
- Network with local food truck owners or join industry groups to gain insights into operational challenges and success tips.
- Research city regulations, permitsand zoning laws to ensure your concept complies with all local requirements.
- Identify underserved locations or busy streets by mapping out existing offerings and finding gaps you could fill.
- Conduct a SWOT analysis to fully understand where the best opportunities exist for your food truck business.
2. Create a unique food truck concept
Most successful food trucks choose concepts that are either very niche, like a unique take on a common cuisine, or something completely new. Keep in mind that the whole food truck revolution began with Roy Choi’s Kogi, which invented a new food: Korean tacos.
Creating a unique food truck concept requires a blend of market research, niche selection and personal alignment with your skills and passions. Here’s how to develop a standout idea:
- Research the market by experiencing local food trucks, analyzing competitor reviews and monitoring social media trends to identify potential industry gaps and popular demands.
- Analyze your target market. The biggest customers at food trucks tend to be young adults and parents with children at home. See what else you can learn about food truck customers, generally as well as those in your area.
- Choose a niche that excites you and has market potential. Here are some ideas:
- Regional BBQ (e.g., Texas-style brisket, Carolina pulled pork)
- Taco variations (e.g., Korean BBQ tacos, vegan jackfruit tacos)
- Plant-based comfort food (e.g., vegan mac and cheese, jackfruit burgers)
- Global street food (e.g., Filipino sisig, Lebanese shawarma, Japanese takoyaki)
- Breakfast-on-the-go (e.g., breakfast burritos, gourmet waffles)
- Loaded fries or nachos (e.g., birria nachos, truffle parmesan fries)
- Specialty grilled cheese (e.g., lobster grilled cheese, caprese melt)
- Align with customer preferences by testing concepts through pop-ups or surveys to ensure demand.
- Leverage your strengths. If you’re skilled at smoking meats, focus on BBQ; if you love baking, consider artisanal pastries or dessert hybrids.
- Add a twist to stand out, like fusion flavours (e.g., sushi burritos), premium ingredients (e.g., wagyu sliders) or a signature sauce.
By combining research, passion and creativity, your food truck can carve out a distinct space in a competitive market.
3. Write a food truck business plan
Once you’ve done your research and decided on your final concept, you’re ready to write a food truck business plan. Your business plan is the North Star for your food truck. Writing down your key goals and objectives, as well as the strategies you plan to use to get there, helps you stay focused when launching your new business (and for years after). Here’s what to include:
Mission
Known as an executive summary, this portion of your business plan essentially outlines how you will start your food truck, briefly describing your vision and unique value proposition, which might be something like “serving authentic Thai street food using locally sourced ingredients”.
Financial Planning
Your financial plan will include startup costs, like equipment, permits, licenses, truck purchase or lease, branding and initial inventory, as well as your operating costs, which will include things like fuel, maintenance, ingredients, labour, insurance and marketing.
You’ll also want to share your pricing strategy, which will detail your plan for competitive yet profitable pricing based on food costs and local demand. And you’ll need to make some revenue projections that describe your estimated daily or weekly sales, break-even analysis and profit margins.
Marketing Strategy
Your business plan should also include your plan for marketing your food truck. Some potential strategies might include:
- Social media: Instagram, TikTok and Facebook for promotions, behind-the-scenes content, and location updates.
- Participation in events and festivals: Local food truck rallies, farmers’ markets, and private events.
- Local SEO and online presence: Google My Business Profile, Yelp, and food truck apps for visibility.
- Partnerships: Collaborations with breweries, offices, and influencers for pop-ups.
Target Audience
You’ll also want your food truck business plan to define your primary customer segments, whether that’s young professionals and families or students and late-night crowds. Also, be sure to identify peak times and locations for your business, like a downtown business district lunch rush or weekend events.
Market Research
Describe your process for market research, showing that you’ve performed due diligence through things like surveys, competitor analysis, and local food trends, and demonstrate you’ve selected a high-traffic location based on data like footfall, competition, and local regulations.
Competitive Analysis
Be sure your business plan also identifies direct competitors, which might include other food trucks, nearby restaurants, or fast-food chains. Highlight what differentiates you from these competitors. Is it a unique menu, faster service, premium ingredients, or something else?
Business Goals
Don’t forget to identify your business goals, both near-term and long-term. Short-term goals might be to achieve profitability within 6–12 months or build a loyal customer base, for example, while long-term goals might describe how you hope to expand to multiple trucks, offer catering, or open a brick-and-mortar location.
Purpose
Finally, your food truck business plan should clearly state its purpose, whether that’s to help you secure a business loan, attract investors or provide you with a roadmap for growth and adaptability in a competitive market.
4. Calculate your costs and secure funding
Now comes the big question: How much does it cost to start a food truck? For a food truck business, startup costs will vary by location, cuisine, and other localized factors, but, at minimum, your food truck startup costs will include a truck, cooking equipment, and custom truck wrapping. Here are the key things to consider when determining how much you need to start a food truck:
- Startup costs: Estimate expenses for the truck, which can cost anywhere from $75,000 to $90,000 and up, as well as any updates or alterations that might be needed to adhere to your kitchen requirements. You’ll also want to consider equipment costs, how much for a food truck permit, inventory costs and branding.
- Ongoing expenses: Account for regular, recurring costs like food supplies, staff, fuel and marketing.
- Budget planning: Set a realistic budget for launch and at least six to 12 months of operations, anticipating that it will take time before you turn a profit.
- Funding sources: Make a plan for funding your food truck business. You can’t start a food truck without money. So you’ll likely need to access funds through loans, savings, investors, grants or crowdfunding.
- Financial forecasts: Prepare revenue and profit projections to support funding requests you’ll need to make, as well as to help you plan for the future of your food truck enterprise.
5. Obtain the licenses and permits needed
To legally operate your food truck in Canada, you need to register your business and acquire the necessary licences and permits.
Choose a business structure
First, you need to choose a business structure. The three most common ones are a sole proprietorship, partnership or incorporation. Each option comes with different tax and liability implications.
Register your business name
You’ll need to register your business provincially — and federally too if you choose to create a federal corporation, which allows you to operate across Canada and protects your brand name nationally. You’ll also need a Business Number (BN) from the Canada Revenue Agency (CRA), which is required for payroll and GST/HST. You can register your business name online and get a BN on the CRA’s website.
Apply for a municipal business licence
Cities require their own licences for mobile food vending. Rules differ depending on where you’re located:
- Toronto: Food trucks need a motorized refreshment vehicle business licence ($1,407.83 including HST and application fee) and a mobile vending permit. The cost of the permit is $3,746.71 for six months, $5,620.08 for nine months or $7,493.41 for a full year. You also need proof of $2 million in liability insurance.
- Vancouver: Vendors in Vancouver need a permit to sell on the street. A stationary street food permit costs roughly $1,478.51 plus GST (with a $66.84 application fee), while a roaming permit is $398.89 plus GST. Liability insurance for $2 million is required.
- Calgary: To run a mobile food vending business, you need a licence from the city, $2 million in liability insurance and a commercial licence plate. The cost of a full-service food truck’s municipal business license in 2025 was $761.
- Montreal: Trucks must apply to be part of the city’s controlled street food program, which gives them access to certain vending spots. Most restaurants in Quebec need a business licence from the Ministry of Agriculture, Fisheries and Food. Costs can vary.
Get a food premises permit
Before you can serve customers, you’ll need a food premises permit, which you can get through your local public health unit. This permit shows that your truck is equipped to meet food preparation standards.
Make sure staff have food handler certification
Most provinces require at least one person with food handler certification on duty when food is being prepared. This certification demonstrates that you can handle food safely to prevent foodborne illnesses.
Secure a mobile vending permit
Some cities require mobile vending permits to operate a food truck. You will usually need to show proof of insurance, information about your vehicle, a fire safety inspection, and your food premises permit, as well as pay municipal fees.
Pass a fire safety inspection
Most cities in Canada require food trucks to undergo an annual inspection by the local fire department before they can get a licence or vending permit. This is especially important if you operate propane equipment, as inspectors check things like propane tanks.
Register for GST/HST
Once your business generates more than $30,000 in a single quarter, or over four consecutive quarters, you are no longer considered a small supplier and you’ll need to register for GST/HST. Learn more about the small supplier threshold on the CRA website.
6. Find a location
Finding a location for your food truck isn’t as simple as it seems, but don’t get discouraged. Getting familiar with your city’s regulations to understand where you can park, how long you can stay and what you need to operate will help you pick the right spots for your business.
- You can park on private property, but not near food courts or their entrances.
- You can park on public roads and Green P parking lots with a permit.
- Restrictions: Maximum of two trucks per block, must be at least 30 metres from restaurants, five-hour time limit, and parking fees apply.
Vancouver:
- Trucks can only operate in approved areas like the Olympic Village or Spanish Banks. Vending is not allowed downtown on streets west of Main Street and north of False Creek. Find out more about location restrictions.
- You must stay at least 100 metres from restaurants serving similar food and at least one block away from grade schools from 8 a.m. to 5 p.m. on school days.
- Trucks must be less than 10 metres long, have prep facilities on board and have a business licence plate.
- Wastewater must be thrown away at designated places.
- Customers can’t eat inside the truck, and food trucks can’t put up tables or chairs on public grounds. You can put temporary seating on private land with the owner’s consent, but you have to take it down when the truck leaves.
Montreal:
- Food trucks are selected by a committee after applying for a permit through the city’s street food program.
- You must have a production kitchen.
- Your truck can only operate in city-designated spots between 6 a.m. and 11 p.m., and each location can host a maximum of three trucks.
- The rules of the street food program don’t apply to cultural events like Piknic Électronik and other festivals, which have event-specific permits. Read more about Montreal’s street food by-law.
As you can see, the rules can get quite specific depending on your location. Always check local zoning bylaws and operating hour restrictions before you set up.
Yes, you might need to get creative to target high-traffic areas like campuses or business districts. But building relationships with private property owners can help you secure appealing spots. It’s all about balancing foot traffic with compliance.
7. Follow food safety and health regulations
Many of the same requirements for restaurant food safety apply to food trucks, so make sure you perform the following due diligence tasks:
- Understand local public health requirements for mobile food vendors.
- Ensure proper refrigeration, food storage and cleaning protocols.
- Train staff on hygiene, food handling, allergen awareness and sanitation.
- Schedule regular inspections as required in your locality or state, and maintain compliance and operational documentation.
- Assess food temperature control.
- Evaluate expiration dates on inventory, and be aware of potential contamination.
- Store waste correctly.
8. Purchase food truck equipment
Buying a truck and cooking essentials account for a major portion of your food truck startup costs.
In Canada, you can find food trucks through specialty dealers like Venture Food Trucks and Apollo Custom Manufacturing, on used marketplaces such as Kijiji and Facebook Marketplace or by leasing from providers like Rent-A-Food-Truck.
Here are some tips for what you’ll need and how to reduce costs:
- Consider renting a vehicle to reduce upfront expenses and test the viability of your business. Another option is to purchase a trailer. While it’s less mobile, it’s a less costly way to start a food truck business.
- Buying a vehicle offers more control and long-term value, but it’s not the best option for everyone, especially if you’re trying to start up on a budget.
- Leasing a vehicle allows you to test your food truck concept without fully committing. It’s cheaper upfront, but you’ll have less flexibility in terms of customizing your truck.
- Plan for the purchase of key food truck equipment like a fridge, grill, fryer, sinks, generator, food truck point-of-sale (POS) system and ventilation. Look for gently used kitchen equipment to save money.
- Invest in branding, putting a custom wrap and/or signage on your food truck.
9. Choose the right food truck POS system
To ensure successful and seamless transactions for customers, invest in POS that is both fast and reliable, since you’ll likely have rush hours and want to be able to take payments quickly to maximize sales. Look for the following key features in your food truck POS system:
- Mobile-friendly: Select a food truck POS system specifically designed for food trucks’ small spaces and on-the-go operations.
- Offline capability: Ensure the POS works without the internet to avoid service interruptions.
- Inventory management: Look for an option that allows you to track ingredients and menu items in real-time.
- Integrated payments: Make sure your POS system can accept multiple payment types, like credit cards, contactless payments and mobile wallets.
- Reporting: Evaluate the system’s capability to access and report on sales data, peak hours and customer trends to help you improve operations. Square POS system, for example, has inventory management and reporting capabilities that can help you run and grow your business.
- Ease of use: Ensure the system is intuitive and quick to learn for fast-paced environments.
- Order customization: Confirm that the POS has the ability to handle modifiers, combos or special requests easily.
- Speed and reliability: Select a POS system that offers fast checkout to keep lines moving during busy hours.
- Multi-location support: Plan for future expansion with a system that will operate at multiple sites or events.
- Loyalty and promotions: Check for built-in tools for discounts and loyalty programs, or email marketing.
- Integration with accounting or inventory tools: Confirm the POS can help you streamline backend operations and tax reporting.
- Cost and fees: Be mindful of upfront hardware costs, monthly fees and transaction charges.
10. Create a marketing strategy
You want to ensure a crowd wherever and whenever you park your truck. Start with a truck design that captures attention on the street and speaks to your concept. Then, create a restaurant marketing plan and lay out a budget. Here are some ideas to get you started.
Build user-generated content (UGC) into your menu
One of your best marketing tools is already at the heart of your business: your food. Having a visual feast of items on your menu helps your business generate buzz online. The goal is for people to share photos of your food on social media and go viral — that drives business to your truck.
Make social media a priority
Social media is also a good way to keep your followers informed of your location and stay in touch with fans. An Instagram account, for example, can help you showcase your menu offerings (as well as any specials you’d like to share with customers).
Build a website
You also want to create a website that mirrors the vibe of your business. You can build it yourself with an online tool or outsource it for a more professional feel. Be sure to include your phone number so people can call and find out where you are.
Also, consider a plan for online orders: 83% of Canadian restaurant leaders report that online checkout is a main revenue driver for their business, according to the Square 2025 Future of Restaurants report. Additionally, consumers said they would likely engage with an informative website (71%) or a mobile app (53%).
Set up review pages
Make sure your website is included on your online review pages like Yelp and Google Reviews. To ensure customers can leave you a Google review (and that you’re able to respond), you can create a free Google Business Profile. To get started and add or claim your Google Business profile, visit https://business.google.com/ca-en/business-profile.
Your business accounts should also include photos, hours, typical locations and price range. When you serve customers, encourage them to leave you a review on review platforms to help build a positive brand.
Invest time in PR
Another way to generate buzz is reaching out to food bloggers. Find food bloggers with a big following in your area, and ask them to visit your truck. Consider comping the blogger’s meal — that meal will be far less than the free marketing you’ll receive if they post about your food.
Don’t forget about promotions
Offering coupons or discounts for your grand opening, or featuring special days like “Taco Tuesdays”, can also help drive business.
Loyalty programs are another powerful tool that benefits both customers and business owners. They offer customers exclusive deals and discounts on their favourite items, so working toward a unique reward or perk may be just the incentive a customer needs to pick your food truck over any others parked nearby. Plus, Square data shows that customers enrolled in a loyalty program spend 53% more and visit 40% more often.
11. Soft launch your food truck business
Want to test your food truck concept with minimal risk? A strategic soft-launch is the way to go. It can help you iron out any kinks, attract early fans and fine-tune your menu before going all-in on your food truck investment. Here are some ideas to get you going.
How to soft-launch your food truck
- Start with a stand or stall at a local event, farmers’ market or private gathering
- Offer a reduced menu to test operations
- Invite friends and family
- Connect with local influencers for a preview day
Gather feedback from your soft-launch
You’ll specifically want to ask about customers’ perceptions of the following:
- Food quality
- Uniqueness of your offering
- Value for the price
- Wait times
- Customer service
Optimize your menu and operations
Once you’ve conducted your soft-launch and gathered feedback from customers, influencers, family and friends, it’s time to put their suggestions into action:
- Adjust portions, pricing or prep time based on performance.
- Streamline workflows to improve speed and consistency.
- Use early data to refine your marketing plan.
With careful planning, a dash of creativity and a passion for great food, your food truck business can successfully carve out its own niche in the competitive world of mobile cuisine.
How to start a food truck business FAQs
How do I acquire a food truck?
Your options to acquire a food truck are to either buy a new food truck, buy a used food truck or rent a food truck. Acquiring your truck will likely be your largest startup cost.
- Buying a new food truck: A food truck manufacturer can provide a customized food truck designed specifically for your layout, menu and branding needs. These manufacturers are familiar with common codes required for a food truck to operate legally, and will also have examples of existing successful food trucks. This option is the most expensive and can take several months, but your equipment will be brand new, organized around your specific needs.
- Buying a used food truck: Used food trucks can be found on marketplace listings. They will come partially or fully outfitted, but may require repairs or other updates to meet your local health codes. These will be more affordable than a brand-new truck, but make sure to have your potential purchase professionally inspected before making a final decision.
- Renting a food truck: Renting can be the most affordable and quickest option. If startup funds are tight, renting a food truck before you buy can be a useful way to test your concept. However, you won’t own the truck, so customization and branding options can be more limited than renting or buying.
Do food trucks pay for locations?
Yes, food trucks typically pay for their locations through permits, parking fees, or rental agreements at private lots, events or food truck parks. Some cities also require daily or annual fees to operate in public spaces.
Can I rent a food truck?
Yes, you can rent a food truck through commercial kitchen leasing companies, food truck franchises or private owners. Renting is often a lower-cost alternative to buying outright.
Is a food truck profitable in Canada?
Yes, a successful food truck can be profitable in Canada, but it’s important to start your business with a solid plan and realistic expectations. Regulations can affect your ability to turn a profit, but finding a niche can give you an edge. According to Mordor Intelligence, no single food truck company holds more than 5% of the Canadian quick-service restaurant market share, which leaves room for new players to innovate and grow.
