How Much Do Taco Trucks Make?

Running a taco truck means more than heating tortillas. You need to manage food costs, find the best locations, and build a brand that customers remember. If you’ve been thinking of starting this kind of business, knowing your profit potential is crucial.

While food trucks are generally profitable regardless of the cuisine, tacos have huge appeal because they’re fast, flexible, and affordable. Finding the right spot with the right menu can lead to serious sales.

So, how much do taco trucks make? Let’s explore what you can expect to earn and how you can forecast your own revenue.

How much profit do most taco food trucks make?

On average, food trucks make around $346,000 per year. It’s safe to say that taco trucks can expect similar earnings, especially with their popularity and low overhead costs.

They also have a higher profit margin compared to traditional restaurants at 6.2%. As such, taco trucks are a viable business concept to consider, especially if you have a passion for authentic Mexican cuisine and entrepreneurship.

Factors that affect taco food truck profits

Factors like location, operating cost, seasonality, and competition affect how much your taco truck earns. Understanding how these variables impact your revenue can help you find strategies to maximize profitability.

1. Location and foot traffic

Choosing the right location is important if you want your taco food truck to succeed. Areas with high foot traffic, such as urban centers, college campuses, and business districts, can significantly boost your daily sales.

Food trucks in New York, California, Arizona, and Texas generate the most revenue, reaching as high as $492,545 per year. These states have diverse food scenes and significant Hispanic influence, which is why people appreciate authentic taco cuisine.

Even if you don’t live in these states, there’s still potential for success. Focus on understanding local food culture and finding prime locations with steady customer flow. Then, you can create a unique taco offering that stands out.

2. Operating cost

Ingredients and supplies are one of the biggest expenses for taco trucks, taking up around 25% to 35% of revenue. To reduce these costs, consider sourcing seasonal ingredients and partnering with local suppliers.

Labor also adds to your operating costs, which is why you should use restaurant management software to avoid unnecessary overtime. Plus, the costs for licenses and permits can reach $28,276, depending on your city and state regulations.

For instance, a food truck license in California can reach $20,000, which varies based on the specific city, number of employees, and whether you’ll be serving liquor.

Another operating expense to consider is the monthly payments for your vehicle and kitchen equipment. Your food truck cost can range from $50,000 to $175,000, depending on whether you buy new or used.

Consider financing options that minimize monthly expenses while making sure you have a reliable, well-equipped mobile kitchen.

3. Seasonality

During warmer months, such as spring and summer, people spend more time outdoors. As a result, your taco truck may enjoy increased foot traffic and higher sales.

However, sales might dip during colder months. To keep your taco truck thriving even during these months, consider catering weddings, parties, and office events.

For example, you can serve delicious carne asadas to wedding guests and be part of your client’s special day. You’re actually helping them cut food costs from about $70 per guest to around $25 to $50 while providing a unique experience.

You could also adapt your menu to include heartier, warmer dishes that appeal during cooler weather. You can develop seasonal specials, like spicy soups or warm breakfast tacos, to maintain customer interest and revenue during slower periods.

4. Competition

Multiple food trucks operating in the same area, especially those offering similar cuisines, can divide customers. This oversupply often forces vendors to lower prices to attract diners, which can reduce profit margins.

For instance, if you’re the fifth taco truck on a particular street, you might find it challenging to stand out and maintain your sales target.

Before choosing a location for your taco truck, conduct a thorough analysis of the existing competition. Find how many food trucks are already operating in the area, what types of food they offer, and how they price their menu items.

Knowing this information will help you assess whether the market can support another food truck and guide you in choosing a location with less direct competition. Tools like local business directories, social media platforms, and food truck association websites can provide valuable insights into your competitors.

Develop a distinctive feature or specialty that sets your food truck apart from others. This could be a signature dish, a unique fusion of cuisines, or a focus on locally sourced ingredients. For example, offering a taco with a unique twist or using organic, locally sourced produce can attract customers seeking something different.

5. Menu pricing and offerings

While serving tacos is a unique and fun food truck idea, you need to plan your menu strategically to be successful. Setting the right menu prices and offerings covers your costs and also attracts customers to maximize profits.

One pricing strategy to consider is using food cost percentages. Calculate the cost of ingredients for each item and set a price that achieves your desired food cost percentage. For instance, if a taco’s ingredients cost $1.50 and you aim for a 30% food cost, you’d price it at $5.00.

Another strategy is to use gross profit margin pricing. Determine the selling price by making sure the revenue after covering the cost of goods sold (COGS) leaves a healthy profit margin. For example, if your taco’s COGS is $2.00 and you desire a 65% profit margin, you’d set the price at approximately $5.71.

Beyond setting base prices, you can increase the average transaction value through upselling. Train your staff to recommend additional items that complement a customer’s order, such as pairing tacos with a side of guacamole or a specialty beverage.

Consider offering combo meals or daily specials to increase average customer spend. Remember that customers value quality and uniqueness, so focus on creating memorable dishes that justify your restaurant menu pricing strategy and keep diners coming back for more.

6. Marketing and branding

Because your taco truck is mobile, it’s important to have a marketing and branding strategy to attract and retain customers. Create a compelling brand that reflects your food truck’s personality and values. This includes designing a memorable logo, choosing a distinctive color scheme, and crafting a consistent message that resonates with your target audience.

Leverage platforms like Instagram, Facebook, and Twitter to share your location, showcase menu items, and engage with customers. Posting high-quality photos and updates about specials or events can build a loyal following.

Additionally, geo-targeted ads allow you to reach potential customers in specific locations. Through platforms like Facebook and Google, you can reach people near your operating area to get more foot traffic. For example, you can run location-based ads during lunch hours in business districts to draw in nearby office workers.

Joining festivals, markets, and events provides opportunities to showcase your menu to large crowds and build relationships with other local businesses. These collaborations can get your brand out there and let you reach new diners.

Lastly, consistent food quality and excellent customer service are fundamental to building a positive reputation. Satisfied customers are more likely to recommend your food truck to others, which can expand your customer base through word-of-mouth marketing.

7. Licensing, permits, and compliance

Licenses, permits, and penalties for non-compliance can affect your taco truck profits because you have to include them in calculating your overall business expenses. The expenses for obtaining necessary licenses and permits can vary widely based on your location.

On average, food truck operators might spend between $1,864 and $28,276 on permits and licenses in their first year. These costs typically include business licenses, health department permits, vehicle registration, driver’s licenses, and fire department permits.

Develop a comprehensive checklist tailored to your city or state’s specific requirements. This proactive approach helps ensure all necessary permits are obtained and remain current, preventing costly fees due to non-compliance.

Adhering to local regulations isn’t just about avoiding fines. It’s about maintaining your business’s reputation and ensuring its long-term success.

How taco food truck owners can forecast sales

It’s important to know how much you can expect to earn so that you can make the best decisions for your taco truck business. Sales forecasting helps you see your profitability and enables you to plan for growth.

First, you should estimate your daily capacity. Determine how many tacos you can serve per hour and multiply by your operating hours. For instance, if you can serve 20 tacos per hour and operate for 5 hours, your daily capacity is 100 tacos.

Set a realistic price per taco based on ingredient costs and competitor pricing. If you charge $5 per taco and sell 100 tacos daily, that’s $500 in daily revenue.

Then, decide how many days you’ll operate monthly. Operating 25 days would result in $12,500 monthly revenue (25 days × $500/day). Consider how weather, holidays, and local events affect sales. For example, summer festivals might boost sales, while rainy seasons could reduce foot traffic.

Make sure to plan for local events that can increase sales. Participating in a popular food festival might double your daily sales during the event.

Taco truck KPIs to track

• Daily sales volume: Monitor the number of sales each day to identify trends and peak periods.
• Customer traffic by location: Track which locations yield more customers to optimize your route and schedule.
• Average order value: Calculate the average spend per customer to assess pricing strategies and upselling opportunities.
• COGS and waste: Keep tabs on the cost of goods sold and waste to maintain healthy profit margins.

To track these KPIs, you need to use POS systems to monitor sales as they happen. These also give you insights into popular items and customer behavior. On the other hand, inventory management tools let you track stock levels to avoid waste and make sure you always have ingredients.

Additionally, restaurant scheduling software can help you assign the right number of staff, especially during peak sales periods. This way, your taco truck operations stay efficient without overspending on labor.

What taco food trucks make more money?

Traditional Mexican tacos are the most popular, but fusion and vegan taco trucks are gaining significant market share. If you’re still deciding on your taco truck’s concept, make sure to balance creativity with practicality so that you can consistently deliver high-quality, appealing dishes that exceed customer expectations.

1. Traditional Mexican tacos

Mexican cuisine is a popular choice for both restaurants and food trucks. 85% of U.S. counties have at least one Mexican restaurant, so the demand for authentic Mexican tacos is consistently high.

These tacos typically feature simple, high-quality ingredients like slow-cooked meats, fresh cilantro, and handmade tortillas. Once you master the traditional techniques, you can create a unique flavor profile that sets your taco truck apart.

Focus on using authentic Mexican spices and marinades, like adobo, al pastor, and mole. Experiment with regional variations from different states like Jalisco, Oaxaca, and Puebla. Each region has unique taco styles that can intrigue customers.

2. Fusion tacos (Korean, Thai, Indian-Mex)

Fusion taco food trucks blend different cuisines, such as Korean, Thai, or Indian flavors, with Mexican cuisine to create unique and appealing dishes. These offer new taste experiences, allowing customers to enjoy the best of two culinary worlds.

A prime example is Seoul Taco, a Korean-Mexican fusion food truck that originated in St. Louis and expanded to multiple locations, including Chicago. Known for its innovative menu items like burritos and nachos with kimchi and sesame seeds, Seoul Taco has garnered a substantial social media following, with nearly 19,000 Instagram followers as of early 2025.

Fusion tacos typically have higher price points, ranging from $5 to $8 per taco, due to their gourmet ingredients and unique flavor profiles. This premium pricing, along with the growing popularity of fusion cuisine, can lead to increased profitability for food truck operators.

3. Vegan tacos

Around 4% of American customers follow a vegan diet, while around 6% are vegetarians. Offering vegan tacos can help you tap into a growing market segment.

Plant-based protein alternatives like jackfruit, tempeh, and seitan offer rich, satisfying textures that mimic traditional meat fillings. Creative vegan taco trucks can develop innovative recipes that appeal not just to vegans but to health-conscious and adventurous eaters.

Tacotarian, a plant-based Mexican eatery in Las Vegas, found success in this niche. With tacos made from braised jackfruit and seitan, they’ve successfully carved out a unique market position.

The good news is that you can apply the concept to your taco truck business. You just need to experiment and find the right balance of flavor, texture, and presentation.

Start by testing different plant-based proteins and marinades. While vegan ingredients can be cost-effective, you must manage sourcing to maintain profitability.

4. Late-night and event-based taco trucks

Late-night and event-based taco trucks capitalize on increased demand during nightlife and special events. Positioning your food truck near bars, concerts, or festivals can lead to higher sales due to the influx of hungry patrons seeking quick, flavorful options.

Tacos El Guero in Arizona operates near nightclubs and has become a popular spot for late-night diners. Their strategic location and hours cater to the post-bar crowd, contributing to their success.

To maximize profits, check local event calendars and nightlife hotspots to schedule your operations during peak times. Reaching out to event organizers for partnerships can also provide exclusive vending opportunities.

Keep in mind that late-night operations may involve additional considerations, such as increased staffing and specific permits. Make sure you comply with local regulations and maintain a safe environment for your customers and staff.

Reach more customers with a taco truck

A taco truck gives you the chance to serve up fresh, flavorful food straight to where people are. Reach more customers by finding the right locations and making it easy for people to find you through social media. The more you show up and deliver quality food and service, the more customers will keep coming back.

Running a business isn’t just about serving great food. There’s the operations side to consider.

7shifts helps you stay on top of it all by automating scheduling and time tracking. Our restaurant management software also lets you assign tasks with ease so that team members know exactly what they need to do. Start your free trial today and make your taco truck more efficient and profitable.