Regulations
How to Start a Food Truck Business: Permits, Commissaries, and Costs
A food truck is a permit problem before it is a cooking problem. Here is the order to do things in, and why the health department call comes before buying a truck.
Key takeaway
Call your local health department and find out what a mobile food unit needs, including plan review and a commissary, before you buy or build a truck. The truck has to be built to their rules, not the other way around.
To start a food truck business, you research your city and county rules, write a plan and register the business, buy or build a truck that passes plan review, sign a commissary agreement, get a mobile food establishment permit from the health department, and pass fire and health inspections. Most areas also expect a certified food protection manager on the truck.
Most food truck guides start with the concept and the menu. That order causes expensive mistakes. A food truck is a kitchen the health department has to approve, parked in places the city has to allow. The truck you buy, the equipment inside it and where you park it overnight all depend on local rules you should know before you spend a dollar on the vehicle. Get those answers first and the rest of the plan is straightforward.
What licenses are needed to start a food truck?
Food trucks are regulated by several agencies at once, and the exact list depends on your state, county and city. The typical set looks like this.
| Permit or registration | Who usually issues it | What it covers |
|---|---|---|
| Business registration and EIN | State and IRS | The legal business and your tax identity |
| Mobile food establishment permit | County or city health department | The truck as a food establishment |
| Plan review approval | Health department | The truck's layout and equipment, before or after you build |
| Commissary or servicing agreement | Health department, on your application | Where you prep, fill water, dump waste and clean |
| Fire inspection | Local fire marshal | Cooking equipment, propane, suppression and extinguishers |
| Vending or street-use permit | City | Where and when you can park and sell |
| Sales tax permit | State revenue department | Collecting tax on prepared food |
| Vehicle registration and commercial insurance | State DMV and insurer | The truck as a vehicle on the road |
| Food manager and food handler certification | Accredited program, per local rule | The people handling food |
Two points catch new owners. First, the health permit is usually tied to the county where you operate, so working in a second county can mean a second permit. Second, some cities limit how many street vending permits they issue, which can mean waiting lists. Ask about both early.
The U.S. Small Business Administration has a general guide to registering a business and applying for licenses. For the health side, our guide to restaurant licenses and permits explains how food establishment permits work in general.
How do I start a food truck business, step by step?
Order matters because later steps depend on earlier answers. A sensible sequence:
- Call your local health department. Ask what a mobile food unit needs, whether plan review happens before you build, and whether you need a commissary.
- Check city vending rules. Find out where trucks can park, time limits, distance rules from restaurants and whether permits are capped.
- Pick your concept and a short menu. The menu decides your equipment, and your equipment decides the truck.
- Write a business plan with your startup budget and how many service days you need to break even.
- Register the business and get your tax IDs and insurance quotes.
- Buy, lease or build the truck to the health department's specifications, and submit plans for review.
- Sign a commissary agreement.
- Get certified. Earn your food manager certification and make sure staff have any food handler cards your area requires.
- Apply for the mobile food permit and pass the health and fire inspections.
- Book your first locations and test your service flow on a short shift.
Step 1 is first because the answers change step 6. A used truck that looks ready to go may lack the sinks, water capacity or equipment your county requires. Retrofitting after you buy is where budgets fall apart.
Why do food trucks need a commissary?
A truck has limited space, limited water and no permanent plumbing. Many health departments require it to operate from a fixed, approved base where the operator can prep food, store supplies, fill potable water, empty wastewater and clean equipment. That base is usually called a commissary or servicing area.
The FDA Food Code, which most states adopt in some version, treats a mobile unit's servicing area as part of how the operation is approved. The idea is simple: the truck is only as safe as the place it resets each day. Our guide to what a commissary kitchen is covers the options and what to check before signing a lease.
Some jurisdictions let a truck that is fully self-contained skip daily commissary visits, and some do not. This is one of the questions to ask on your first call.
What happens at a food truck inspection?
Before you can open, most areas require a pre-operational inspection of the truck. Inspectors look at the handwashing sink, the warewashing sinks, water and wastewater tanks, refrigeration, cooking equipment and how the truck connects to its commissary. After you open, routine inspections check how you actually operate.
Those rules are specific to mobile units, so they get their own article. Read our guide to food truck health inspections before your truck is built, not after. It covers tank sizing, the servicing area and the most common reasons trucks fail.
Food safety rules that matter most on a truck
A truck is a small kitchen with big swings in temperature and a line out the window. The risks concentrate in a few places.
Holding temperatures. Under the FDA Food Code, hot TCS food is held at 135°F or above and cold TCS food at 41°F or below. Refrigeration on a truck works harder than in a building, especially in summer with the service window open. The hot and cold holding hub explains the rules and why they matter.
Handwashing. Staff take orders, handle cash or cards, and plate food in a few square feet. A dedicated, stocked handwashing sink is required, and it only protects customers if people use it. The handwashing and personal hygiene hub covers when hands must be washed.
Cross-contamination in a tight space. Raw proteins, ready-to-eat garnishes and allergens all share one small line. Plan storage so raw meat sits below ready-to-eat food and keep separate utensils. See the cross-contamination hub.
Cooling and reheating. Food prepped at the commissary and carried to the truck has to be cooled and reheated correctly. The cooling and reheating hub covers the time limits.
The CDC notes that improper holding temperatures and poor personal hygiene are common factors in foodborne illness outbreaks. On a truck, both are easier to get wrong.
How much does it cost to start a food truck?
There is no reliable national figure, and any single number you see online depends on assumptions you cannot check. The biggest variable is the truck itself. A used truck, a new custom build and a trailer sit in very different price ranges, and a cheap truck that fails plan review is not cheap.
The other costs to budget for are equipment, the commissary lease, permits and plan review fees, insurance, the fire suppression system, your point-of-sale setup, initial inventory, wraps and signage, and certification for you and your staff. Get local quotes for each, and check your health department's fee schedule before setting a total.
Is a food truck profitable?
It can be, but no authoritative source publishes food truck profit margins or failure rates. Figures that circulate online trace back to surveys of unclear size or to vendors selling trucks. Build your own numbers instead: food cost per plate, labor per shift, commissary rent, fuel, event fees, and how many plates you need to sell per service day to cover them.
What helps a truck is low fixed cost compared with a restaurant and the ability to move to where customers are. What hurts is weather, seasonality, event fees and the limited menu a small kitchen can handle.
What this means for you
If you are planning a truck: make the health department your first call and the vending rules your second. Do not buy a vehicle until you know what plan review will require.
If you will run the truck yourself: plan on holding a food protection manager certification. Our guide to the certified food protection manager explains who needs one. Holding, cooling and handwashing all appear on the ServSafe Manager exam, which passes at 70%, at least 56 of the 80 scored questions.
If you will hire staff: check whether your state or county requires food handler cards. The ServSafe Food Handler exam passes at 75%, 30 of 40 questions.
Frequently asked questions
How do I start a food truck business with no money?
Very few trucks start with nothing, but you can lower the upfront cost. Some owners lease a truck or trailer instead of buying, rent commissary time instead of building a kitchen, and start with weekend events before quitting a job. Whatever the budget, the truck must still pass plan review, so do not cut corners on required equipment.
Are food trucks really profitable?
Some are and some are not, and no authoritative source publishes industry profit margins. Profit depends on food cost, labor, commissary rent, fuel, event fees and how many plates you sell per service day. Build a break-even estimate from your own local costs rather than trusting a margin figure quoted online without a source.
Can I run a food truck out of my yard?
Usually not as your approved base. Many health departments require a truck to operate from a commissary or approved servicing area for prep, water, waste and cleaning, and a home driveway does not qualify. Residential zoning may also restrict parking a commercial vehicle or selling from it. Check with both your health department and your city.
What is the failure rate of food trucks?
No official failure rate for food trucks exists. Numbers quoted online come from informal surveys or industry marketing and cannot be verified. The reasons trucks close are easier to name: underestimated startup costs, permit and parking limits, seasonality and thin margins. Researching local rules first avoids the most expensive of those mistakes.
Do you need ServSafe to run a food truck?
Many jurisdictions require a certified food protection manager in food establishments, and mobile units are usually included. ServSafe Manager is one accredited option. Staff may also need food handler cards depending on your state or county. Your health department will tell you which certificates it accepts and who on the truck must hold one.
Do I need a separate permit for each county?
Often, yes. Health permits for mobile units are usually issued by the county or city where you operate, so selling in a neighboring county may require its own permit or a reciprocity arrangement. Some states have statewide mobile permits. Ask each health department where you plan to sell before booking events there.
Running the truck yourself? The ServSafe Manager track covers holding, cooling and every other topic on the certification exam.
Sources
- FDA Food Code 2022, including mobile food establishment provisions and hot and cold holding requirements
- FDA: FDA Food Code overview, how states and localities adopt the Food Code
- FDA: Retail Food Protection
- CDC: Food Safety, foodborne illness and its common causes
- ServSafe Manager, the food protection manager certification
- ServSafe Food Handler, the food handler program
- U.S. Small Business Administration: Apply for licenses and permits
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