Taco trucks are a great way to bring fresh, flavorful food to customers on the go. If you’ve been thinking about starting your own business, this type of truck can be a great option.
One of the things to consider when starting a taco truck business is whether it’s better to rent or buy one. For new food entrepreneurs, renting is a more practical choice. It lets you start serving delicious food—from classic carne asada tacos to Gen Z food trends like sushi tacos— while earning a profit without a massive investment.
Let’s take a closer look at how much it costs to rent a taco truck and the factors that affect pricing.
Average cost of a taco food truck rental
The average cost of renting a taco truck is between $2,000 and $3,000 per month, but exact pricing depends on multiple factors, such as location, truck size, rental term, and included equipment.
Some food truck rentals also require security deposits, which cover potential damages, unpaid rent, or lease violations. Others have rental minimums as well, which make sure vendors commit to a specific rental term and prevent last-minute cancellations.
These deposits and minimums are usually equal to one to three months of rent, which can increase initial expenses. So, for a $3,000 per month rental, an entrepreneur may need $3,000 to $9,000 upfront just for the deposit.
Factors that affect taco truck rent costs
The size of your truck, the lease duration and agreement terms, and the equipment you need to serve delicious tacos significantly affect rental costs. Other factors, like the need for a commissary kitchen, licenses, insurance, initial inventory, and maintenance, add to your overall taco truck startup costs.
Truck size and equipment
The size of a taco truck and its included equipment are major factors in rental costs. Average truck sizes range from 14 to 20 feet, with rental costs falling somewhere between the average of $2,000 and $4,000 per month.
If your menu consists of basic tacos with a few fillings, a 10-foot taco truck could be enough. However, if you want to offer multiple protein choices and toppings, you may need a truck that’s around 16 to 24 feet long for grilling meat, prepping toppings, and storing ingredients.
Most food truck rentals include basic kitchen equipment, but some require separate rental fees for specialized appliances, especially for unique food truck ideas like fusion tacos. A flat-top grill or plancha is non-negotiable for making tacos, as well as gas grills.
You also need refrigerators for storing meat, dairy, and fresh produce. If your rental truck doesn’t include a fridge, you can purchase one for around $1,000 to $3,000. If you offer seafood or frozen ingredients, a freezer unit may also be necessary.
Lease duration and terms
The lease duration and agreement terms of your taco truck rental also affect the overall cost. Business owners must choose between short-term or long-term, based on their budget and business goals.
Short-term leases of around one to three months allow vendors to test a location, menu, or market without committing to a long-term contract. However, they come at a higher monthly rental cost, as companies charge a premium for flexibility.
For long-term leases of around six months to a year, you can find rental taco trucks for just over $1,000 per month. Long-term leases are ideal for establishing a steady customer base and reducing rental costs since you can negotiate lower monthly payments.
One thing to remember, though, is that binding yourself to a long-term rental lease requires a longer financial commitment and makes it harder to pivot if the business doesn’t profit as much as you want it to.
Commissary kitchen
Many cities require food trucks to use licensed commissary kitchens for food preparation, ingredient storage, and dishwashing. These kitchens ensure food safety compliance but also add as much as $1,500 to your monthly expenses.
Operating without a commissary agreement can lead to fines or revocation of food truck permits. Some rental companies include commissary kitchen access in their packages, which can help reduce overall expenses.
Licenses and permits
Before launching a taco truck business, make sure to get the necessary licenses and permits to operate legally. The total cost of licenses and permits can range from nearly $2,000 to $28,000 per year, depending on local regulations and your truck’s operating location.
You’ll need many licenses and permits for your taco truck, such as:
- Business license
- Seller’s permit
- Food vendor’s license
- Food truck permit
- Commissary letter of agreement
- Food handler’s permit
- Parking or zoning permit
You’ll also need to pass the fire safety inspection and acquire a liquor license if you plan to sell alcoholic beverages, including mezcals, margaritas, and beers.
Insurance
Even though you’re renting your taco truck, you will still need insurance to protect your business. Get general liability insurance to cover third-party claims of bodily injury or property damage. You must also get commercial auto insurance, which covers accidents, theft, and damages to the rented truck.
Insurance payments usually range between $2,000 and $4,000 per year. Some rental companies may require specific insurance levels, so review their policies carefully.
Initial inventory
Your initial inventory for this type of fast food includes tortillas, meats, vegetables, and spices. Budget around $2,000 to $5,000 for initial food inventory and supplies, like foil containers, napkins, and takeout bags. Consider bulk purchasing to save on food costs, and always audit your inventory to prevent waste and spoilage.
Maintenance
While the responsibility of major repairs falls to the rental company, operators must still budget around $500 to $1,000 monthly for routine upkeep to prevent unexpected issues. This includes oil changes, tire rotations, cleaning, and minor repairs.
Renting vs buying a taco truck
Renting a taco truck offers a low-cost entry into the food business, making it ideal for new vendors who want to test their menu and customer demand before committing to a long-term investment. Unlike buying a truck, renting has low upfront costs and allows you to test different locations and menus.
Moreover, major mechanical repairs, such as engine replacements or transmission work, are typically covered by the rental company. This means you won’t face unexpected high-cost repairs that can derail a new food truck business.
One major downside of renting a taco truck is the ongoing rental fees. Unlike buying a truck, where you eventually pay off the cost and own the asset, renting requires continuous monthly payments that never stop.
Moreover, when you rent a taco truck, you’re often limited in how much you can customize the interior layout and exterior for branding. Nonetheless, some rental companies offer more flexibility in truck customization than others, so you can maintain your brand identity without the hefty investment.
Why renting a taco truck is a smart first step
Starting any food business requires careful market research, but real-world testing is even more important. Renting a taco truck allows vendors to get right into serving real customers and evaluating profit potential.
For first-time entrepreneurs, renting involves fewer financial risks while providing real-world experience and data that can help you refine your menu and operations. Make sure you research local rental companies and compare rates and terms to find the best vehicle.
Aside from securing the right rental truck, invest in the right tools to manage your team and operations. 7shifts helps taco truck owners like you track labor and tasks easily so you can focus on perfecting your menu and growing your business one truck at a time.
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Rebecca Hebert, Sales Development Representative
Rebecca Hebert
Sales Development Representative
Rebecca Hebert is a former restaurant industry professional with nearly 20 years of hands-on experience leading teams in fast-paced hospitality environments. Rebecca brings that firsthand knowledge to the tech side of the industry, helping restaurants streamline their operations with purpose-built workforce management solutions. As an active contributor to expansion efforts, she’s passionate about empowering restaurateurs with tools that genuinely support their day-to-day operations.
