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The popularity of food trucks has exploded in the past decade. What began as a fad has transformed into the mainstream as Canadians have embraced these mobile restaurants. As a result, aspiring chefs and restaurant-industry entrepreneurs have turned to food trucks as a lower-cost, lower-risk alternative to opening traditional restaurants.
However, aspiring entrepreneurs must know about their potential food truck costs before trying one out. And, of course, one of the most important questions is simple: How much does it cost to start a food truck?
How much does it cost to start a food truck? Consider these essentials
How much does a food truck cost? The answer is that it depends. To start a food truck and operate for one year, an entrepreneur can expect to spend an average of $90,000 for the truck itself, according to Venture Food Trucks, plus another $5,000 to $10,000 for startup costs. Let’s take a look at some cost factors that determine start-up and operating expenses.
Average food truck start-up costs in Canada
| Food truck | $90,000 |
| Licences and permits | Usually $1,000 + but varies based on municipality. For example, in Toronto, the total licence fee (application + licence fee) is $1,407.83 and a six-month mobile vending permit will cost you $3,746.71. |
| Startup inventory | $1,000 – $5,000 |
| Serveware | $400 – $450 |
| Fuel and maintenance | $800 – $1,500 |
| Insurance | Policy prices vary, but packages can start around $1,000 to $1,200. |
Licence, permit and legal compliance costs for a food truck
The types of permits and licences required to operate a food truck vary according to which province, territory or municipality you live in, but a licence and a food service permit are mandatory everywhere in Canada. You should also think about:
- Parking permit
- GST/HST account
- Reporting gratuities
- Commercial auto insurance
- General liability insurance
- A Safe Food for Canadians (SFC) licence if you cross provincial or territorial borders
- Health and safety inspections
- Employee food safety training
The cost of meeting these requirements vary by location. For example, Toronto is one of the most expensive cities to operate a food truck in Canada. A one-year permit will set you back $7,493.41 on top of a $1,407.83 licence and application fee. In comparison, you only need to pay a $1,478.51 food permit fee and a $66.84 application fee in Vancouver.
So if you’re trying to decide where to start your food truck, think critically about whether your city’s permit and licensing fees — on top of all the other costs associated with your business — are cost-prohibitive and whether you need to look for a business loan.
Location of your food truck
In food trucks, as in real estate, location is everything. In addition to costs, the location of your food truck can also impact your ability to serve customers. According to the Competition Bureau, mobile food regulations vary significantly across Canada. There are restricted zones, proximity requirements (the minimum distance required between a food truck and a restaurant), maximum parking durations and limits on the number of food trucks allowed in a given location.
For example, Calgary prohibits food trucks on multiple downtown streets and, in Montreal, several boroughs don’t allow food trucks at all; there are a handful of designated spaces for vendors across the city. In Vancouver, food trucks must stay at least 100 metres away from restaurants that sell similar products, whereas in Toronto the minimum distance is 30 metres.
Before committing to a city, make sure to understand the local regulations, as they may determine when and where you can operate and affect your earning potential.
The cost of renting vs. buying a food truck
Perhaps the biggest (and priciest) question new food truck entrepreneurs face is whether to rent or buy their vehicle. And this will deeply affect food truck costs.
Buying a new food truck
New food trucks can start around $75,000 and can continue into the hundreds of thousands for sophisticated, high-capacity mobile kitchens.
Buying a used food truck
Unsurprisingly, used trucks can be cheaper. You can expect to pay anywhere between $40,000 and upwards of $300,000 for a used truck, and you should be able to start using them almost immediately.
Renting a food truck
The cost of renting a food truck depends on the length of the lease, but if it’s longer than, say, six months or more, it should be around $2,000 to $5,000 per month.
Additional food truck startup costs that can add up quickly
Obtaining a truck itself is the most expensive item in your food truck start-up costs, followed by fees and permits. However, there are a number of additional costs to consider before you can serve your first customer.
Necessary kitchen equipment
The type of equipment you need depends on the type of food you serve, but common appliances are ovens, fryers, grills and refrigerators. Other equipment may include pots and pans, storage containers and knives, serving implements, and utensils. Appliances can cost well into the thousands and supplies like pots, pans, and other tools can cost a few thousand dollars.
When you’re launching your business and dealing with lots of other food truck costs, it might make more sense for you to lease appliances while you figure out what you need and build up the capital to reinvest in your food truck.
Inventory needed to get off the ground
The basic materials you need to launch your food truck include ingredients for your menu items and serveware like plates, cups, lids, utensils, and napkins. The startup costs for ingredients depend on your menu, but expect to spend a few thousand on your inventory when you take into account items like cooking oil, spices, and more. Serveware startup costs for food trucks are likely to be a few hundred.
Operational costs of a food truck
The greatest food truck costs associated with running your business have nothing to do with the food. Gas, insurance (auto liability, general liability, workers’ compensation, etc.), permits, licences, maintenance, equipment and supplies are all major considerations when creating a budget and figuring out how you’ll turn a profit.
The average cost of permits and licences can reach over $1,000. Fuel and maintenance costs could be in the region of $800 to $1,500. There’s also the cost of implementing a food truck POS, although if you get your POS system right, you can save money thanks to efficiency.
There are some operational costs that you can’t control, like permits and licences, but there are ways that you can lower your bills. For example, if you buy used equipment instead of new, or if you limit your menu items, you can save money on ingredients.
10 ways to minimize food truck startup costs for your business
1. Build your menu around versatile, seasonal ingredients
Instead of having lots of different menu items that all require different ingredients, opt for a smaller number of dishes that use some of the same produce, proteins, and spices. Doing that, along with sticking to seasonal produce, cuts your food truck costs and reduces waste. By keeping close track of your inventory, you will also get a sense of what items are most or least popular.
2. Don’t go overboard at the grocery store
Before you have a strong sense of the number of ingredients you should buy, err on the side of under buying. It’s better to sell out on a given day than be stuck with ingredients that spoil and go to waste. Even better, selling out builds buzz.
3. Staff your loved ones
When you’re starting off, ask for help from family and friends. This isn’t meant to be a permanent situation, but it can help you work out the kinks and figure out how many staff members you need at different times. But even if you do employ loved ones, you’ll still need to manage your employees.
4. Rent or buy used equipment
The startup costs of a food truck business can quickly get out of control, so refrain from buying all-new, top-of-the-line tools and devices. Get by with used or rented equipment until you figure out what you really need (and you might find that you never need the most expensive stuff).
5. Launch your business in a market with reasonable costs
The cost of licences and permits varies by city. So, if you aren’t constrained by location, consider launching your venture in a city with lower regulatory fees and a market that isn’t already saturated. If you’d like to consider taking on outside funding through a bank or an investor, put together a business plan, so you can account for how that money will be used to grow the business. A business model canvas can also be a good way to sketch out how everything works together.
6. Explore new revenue streams
Instead of restricting your business to, say, weekday lunch crowds, look into other potentially lucrative opportunities like weddings, graduation parties, and late-night crowds outside bars or concert venues.
7. Buy in bulk with other food trucks
Bring down costs by purchasing certain ingredients or supplies in larger quantities with your fellow mobile restaurateurs.
8. Embrace social media and email marketing
Traditional advertising can be a budget-buster for small businesses, so build an audience on social media platforms by, for example, tweeting information like your location and hours each day and posting photos of your menu items (particularly daily specials) on Instagram and Facebook. Email marketing is very effective at customer reach.
9. Take care of your truck
It sounds simple, but taking the time to get regular maintenance checks reduces the likelihood that you’ll have to deal with larger, more expensive issues in the future.
10. Compare vendor prices
If you shop around for airline tickets or mobile phone service, why wouldn’t you do the same with your business’s vendors? Look around, and if you find better offers, either switch providers or allow them to match or beat that price.
The final breakdown: How much does it cost to start a food truck in 2025?
There are a lot of factors to consider when starting up your mobile restaurant business. But at the end of the day, how much does it cost to start a food truck? If you’re renting your truck, you can expect to spend between $2,000 to $4,000 per month on top of other startup costs like permits and licences, which vary based on location but typically exceed $1,000. If you want to own your truck, expect to spend anywhere between $30,000 and over $200,000.
However, your costs may be much higher depending on the city where you’re operating your business, your menu offerings, and the cost of upkeep in your area.
But no matter where you are, you can save a lot of money with some simple tips and reinvestments to make your business stronger. Square Point of Sale can help you take payments, manage cash flow and propel your growth.
Food truck cost FAQs
How much should I save to start a food truck?
It depends on your business type (specialized kitchen equipment costs more), whether you buy new or used food trucks, and the permits required in your municipality. Aim to save at least $75,000 for the truck itself, since the average cost of a new food truck in Canada is $90,000. A used truck can start at $40,000. Alternatively, you can lease a truck for $2,000 to $5,000 a month.
In addition to food truck costs, you should also put aside $5,000 –$10,000 for expenses like inventory ($1,000 – $5,000), serveware ($400 – $450), fuel and maintenance ($800 – $1,500), insurance (around $1,000+), and licences and permits, which can cost at least $1,000 depending on the city.
How much do food trucks make?
Earnings can vary widely based on your location and business model. A successful food truck can bring in six figures in yearly revenue. But in Canada, turning a profit can be more challenging. According to the Food Trucks Association of Canada, operators face hurdles like restrictive local regulations, with some areas banning food trucks completely, and limited access to financing since they’re considered higher-risk by lenders.
What type of food truck is most profitable?
The recipe for success tends to involve a simple menu, quick and easy prep, and a strong brand identity, according to Small Business Ontario. Putting your own spin on food truck favourites like burgers, poutine or grilled cheese allows you to keep costs reasonable while charging enough to boost margins. A POS like Square for Restaurants can speed up ordering and payments so you serve more customers in less time, while giving you valuable insights about top-performing items.
What is the best location for a food truck?
The best location depends on your ideal customers. But whether you want to serve professionals or late-night partygoers, foot traffic is a crucial factor. Look for strategic spots that will attract a high number of people, from festival grounds to parks near office buildings.
