How To Start a Food Truck Business in 2025

How To Start a Food Truck Business in 2025
The U.S. food truck industry is booming, with revenues expected to hit $2.8 billion in 2025 and nearly 80,000 trucks already serving up high-quality, affordable eats. If you've ever dreamed of turning your culinary passion into a thriving business on wheels, this comprehensive guide breaks down exactly how to start a food truck — step by step.
by Square Aug 14, 2025 — 12 min read
How To Start a Food Truck Business in 2025

Over the past five years, the food truck industry has seen an annualized growth rate of just over 13% with industry-wide revenue in the U.S. expected to reach $2.8 billion by 2025. Currently, there are nearly 80,000 food trucks in the U.S., according to IBISWorld, and experts expect that number to keep growing.

Why? Consumers are eager for access to unique, high-quality food at affordable prices, something that food trucks are uniquely suited to provide. 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 10 steps

  1. Explore your local food truck scene
  2. Create a unique food truck concept
  3. Write a food truck business plan
  4. Calculate your costs and secure funding
  5. Obtain the licenses and permits needed
  6. Follow food safety and health regulations
  7. Purchase food truck equipment
  8. Choose the right food truck POS system
  9. Create a marketing strategy
  10. 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:

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:

 

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, labor, 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: 

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, including near-term and long-term. Short-term goals might be to achieve profitability within 6–12 months and 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:

5. Obtain the licenses and permits needed

To legally operate your food truck, you need to acquire the necessary permits and obey regulations at the city, state, and federal levels:

 

You can learn more about food truck permitting here.

6. 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:

how to start a food truck

7. Purchase food truck equipment

Buying a truck and cooking essentials account for a major portion of your food truck startup costs. Here are some tips for what you’ll need and how to reduce the cost to start a food truck:

8. Choose the right food truck POS system

To ensure successful and seamless transactions for customers, invest in a point of sale (POS) that is both fast and reliable, since you’ll likely have rush hours and want to be able to take payments quickly so you can maximize sales. Look for the following key features in your food truck POS system: 

9. 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 the website 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: 78% of restaurant leaders report that online checkout is a main revenue driver for their business, according to Square’s 2025 Future of Restaurants data. Additionally, consumers said they would likely engage with an informative website (72%) or a mobile app (58%).

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://www.google.com/business/.

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 by 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 favorite 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.

10. 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

Gather feedback from your soft-launch

You’ll specifically want to ask about customers’ perceptions of the following:

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:

 

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.

coffee and food truck

How to start a food truck business FAQs

How do you identify and create a food truck concept?

Start by analyzing local food trends and gaps in the market, then blend your culinary passion with a unique twist, whether that’s fusion flavors or a specialty dish, to craft a concept that stands out in your local marketplace. For instance, super successful New York City food tuck owner Antonio Dragonas has made his mobile kitchen a standout with fresh and local ingredients, free-range meats, and wild-caught fish. 

How much does it cost to start a food truck?

Starting a food truck typically costs between $50,000 to $200,000, including the truck, permits, equipment, and initial inventory, but costs can vary based on size, location, and menu complexity. Budget-conscious operators can start a food truck business for under $30,000 with a used truck and minimal upgrades.

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 food truck will likely be your largest startup cost.

What licenses or permits do I need to start a food truck?

Common licenses and permits needed for food trucks include a business license, an employer identification number (EIN), a food handler permit, health permits, parking permits, vehicle insurance, and a driver’s license, if you don’t already have one. Depending on the size and weight of your food truck, some areas may require you to have a commercial driver’s license (CDL).

Note that licenses and permits vary based on where you live, so visit your specific city government website to find out exactly what you need when it comes to licenses and permits for your food truck

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.

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