Food Truck Costs: Where the Room for a Higher Food Cost Comes From
By Marji · Published · Updated · 4 min read
A food truck can carry a higher food cost than a dining room, but not because occupancy is cheap: once commissary, fuel, permits and event fees are added, the occupancy-equivalent in the sample below is about the same as a small restaurant's. The room comes from labor — a crew of two or three — and in the example that pays for a 35% food cost. Judge each booking by its own break-even.
Where the money goes instead of rent
| Line | Bricks & mortar | Food truck |
|---|---|---|
| Rent / commissary | 10.5% | 4.5% |
| Utilities | 3.0% | 1.0% |
| Fuel & vehicle | 0% | 3.5% |
| Permits, licences, event fees | 0.5% | 4.0% |
| Maintenance | 1.5% | 3.0% |
| Total occupancy-equivalent | 15.5% | 16.0% |
In this sample the truck saves six points on rent and spends them again on fuel, permits, event fees and maintenance, so its occupancy-equivalent is roughly the same as a small restaurant's. What differs is labor: a truck runs on two or three people, and that is where the room for a higher food cost comes from.
Worked example · Hypothetical: why a 35% food cost can work on a truck
- Monthly sales
- $18,000
- Food cost at 35%
- $6,300
- Fully loaded labor at 26%
- $4,680
- Prime cost
- $10,980 · 61.0%
- Occupancy-equivalent at 16%
- $2,880
- Other operating at 8%
- $1,440
- Left before owner pay
- $2,700 · 15.0%
Labor at 26% of sales is about ten points below the 36.5% median for salaries, wages and benefits that the National Restaurant Association reported for full-service restaurants in 2024 (see the labor cost guide). That gap, not rent, is what a 35% food cost spends. Borrowed benchmarks mislead; derive your own ratios from your own structure.
The truck-specific numbers to track
- Revenue per service, not per month. A truck's economics are decided event by event. A pitch that costs $250 and does $900 is a different business from one that costs $75 and does $700.
- Break-even per service. The service's fixed costs ÷ contribution margin ratio. Without it you cannot evaluate a booking; the break-even guide shows the method.
- Waste per service. Prepping for a queue that doesn't come is a risk every service carries, and most of it is a forecasting problem.
- Fuel and generator per service. Small per event, meaningful over a year, and easy to leave out.
Worked example · Hypothetical: evaluating a booking
- Event fee
- $250
- Fuel + generator
- $45
- Labor, 3 staff × 7 hrs at $20 loaded
- $420
- Fixed cost of the service
- $715
- Average ticket
- $14.50
- Contribution margin ratio at 34% food cost
- 66%
- Break-even
- 75 covers
$715 ÷ 0.66 = $1,083 of sales, or 74.7 tickets at $14.50. If the pitch realistically does 60 covers, that booking loses money however busy it feels. Run this before saying yes, not after.
If your menu changes by event or items sell out mid-service, a phone-editable QR code at the window can save reprints; see QR code menus for food trucks.
The three traps
- Menu too long for the space. Every extra item is prep, storage you don't have, and waste. Keep the menu to what the truck can prep, hold and serve at the window.
- Pricing against restaurants. Guests may expect a truck to be cheaper, which is a real constraint. Price against your contribution target, not against the restaurant across the road.
- Not costing the commissary. Prep kitchen rent, storage and cleaning are real occupancy and belong in the number. Leaving them out makes a truck look more profitable than it is.
Why short menus suit a truck
The constraint isn't taste, it's the physics of the box. Every additional item competes for prep time, cold storage and holding space that a truck doesn't have — and the cost shows up as waste rather than as an obvious line item.
Worked example · Hypothetical: the cost of two extra menu items
- Combined weekly sales of the two items
- $620
- Food cost at 35%
- $217
- Waste on the two items, assumed at 18% of their food cost
- $39
- Extra prep: 35 min × $20/hr loaded × 5 services
- $58
- Cold storage displaced
- ≈15% of capacity, not costed here
- Net weekly contribution
- ≈$306, before the displacement cost
$620 − $217 − $39 − $58 = $306. Whether that justifies 15% of the cold storage depends on what the displaced items would have earned: if the space would otherwise carry more of the items that sell out, compare their contribution with this $306.
Forecasting is the truck's real skill
A restaurant with a bad forecast has a slow night. A truck with a bad forecast has prepped food it cannot carry to the next service and cannot store. That asymmetry is the operational risk the format is built around.
- Log every service: date, pitch, weather, hours, covers, revenue. A few weeks of services give you your own pattern to forecast from, and there is no substitute for your own history.
- Prep in tiers. A base batch that always sells, plus a second batch you only start if the queue justifies it. Slower per unit, and less food left over when the queue doesn't come.
- Track waste per service as a percentage of what you prepped, not of what you sold. Prepping for 120 and selling 80 is a 33% overproduction, and it will not be visible in a food cost percentage.
- Weather is an input. Record it, and see how closely your own covers follow it.
Cost the menu you take to every booking.
Marji scans dish names and prices, then uses reviewed recipe quantities, yields and supplier costs to calculate ingredient contribution. Enter your own booking-volume assumptions and account separately for labor, travel and pitch fees.
Start free →Terms this guide uses
Break-even point
The sales volume at which total revenue exactly covers total cost — the number below which you are paying to open.
Fixed vs. variable cost
Fixed costs don't move with sales; variable costs do. Most restaurant labour is neither, and that's where planning goes wrong.
Contribution margin
The dollars a dish contributes to overhead and profit after its ingredient cost — menu price minus plate cost.
Read next
Coffee Shop Drink Cost: Coffee, Milk, Cup and Waste
Calculate two café drink sizes from weighed coffee, measured milk and packaging, then keep pitcher waste and ingredient-price changes visible in the recipe.
Pizzeria Food Cost: Cheese Portions, Dough and the Box
Cost a pizza from dough to packaging and measure what an extra half ounce of cheese costs at your own portion size, supplier price and weekly sales volume.
My Restaurant Isn't Making Money. Where Do I Look?
A structured walk down the restaurant P&L to find where the profit is going: profit versus cash, the line that is out of range, and each fix sized in monthly dollars before you pull it.