Food trucks do not pay traditional storefront rent. That does not mean they are cheap to run. The cost burden just moves into permits, route cost, commissary, and variable service-day overhead.
This guide gives a U.S. operator model for turning those moving parts into a stable price floor.
Quick Summary
- Price from full service-day cost, not ingredient cost alone.
- Allocate fixed daily operating cost into each expected order.
- Use IRS mileage as a baseline input, then reconcile to real books monthly.
- Build city-specific playbooks because permit and operating structures differ.
2026 Baseline Inputs to Lock First
Before pricing menu items, lock these assumptions:
- Vehicle operating baseline: IRS standard mileage rate for 2026 is 72.5 cents per mile.
- Local permit structure and renewal cycle.
- Commissary and overnight parking requirements.
- Realistic orders-per-service-window by location.
If one of these inputs changes, your old menu price can become unprofitable fast.
Core Formula for Food Truck Price Floors
Daily fixed allocation per order =
(permit allocation + commissary + parking + route mileage cost + other daily fixed costs) / expected orders
Minimum price =
(food cost + packaging + daily fixed allocation per order) / (1 - target contribution margin)This gives a defensible floor before competitive positioning and psychological price-point rounding.
Worked Example: Taco Combo at a Weekday Office Stop
Assumptions:
- Food cost per combo: $4.30
- Packaging + condiments: $0.70
- Service-day fixed costs:
- Venue/space fee: $150
- Commissary + parking allocation: $65
- Route mileage: 42 miles x $0.725 = $30.45
- Expected orders: 70
- Target contribution margin: 35%
Step 1: Fixed allocation per order
(150 + 65 + 30.45) / 70 = $3.51Step 2: Minimum price
(4.30 + 0.70 + 3.51) / (1 - 0.35)
= 8.51 / 0.65
= $13.09Operationally you would usually post around $13.50 to $13.95, then test conversion and ticket mix.
Local Operating Reality: NYC, Austin, Portland Metro
| Market context | What the rules signal | Practical operating move |
|---|---|---|
| NYC | Mobile food vending license is valid for two years and requires separate permit compliance to operate legally | Keep a compliance calendar with license/permit milestones and budget renewal cash flow ahead of expiration |
| Austin | City process requires Permit to Operate completion, fire requirements, and a published FY2026 fee schedule (effective 2025-10-01) | Price each route using the current permit framework and avoid copying assumptions from prior-year fee schedules |
| Portland metro (Multnomah County) | Annual licensing, plan review, and commissary/warehouse requirements can materially affect fixed cost per service day | Split route P&L by county process and include compliance overhead in your per-order fixed allocation |
One truck can run different margins by city even with the same menu and same posted prices.
Monthly 30-Minute Control Routine
- Recompute route mileage and update daily operating allocation.
- Verify permit and license dates for each jurisdiction on your route calendar.
- Reprice top 10 sellers with current food and packaging costs.
- Compare planned vs actual contribution by service window.
- Retire low-margin items that consume prep time but do not cover fixed allocation.
Common Mistakes
- Using ingredient-only cost to set menu price.
- Treating permits as annual admin expense instead of per-order cost.
- Ignoring route changes when fuel and mileage expand.
- Running one national price ladder across very different local permit systems.
Related Guides
- US Food Truck Cost Guide
- US Taco Truck Cost Guide
- Food Cost Ratio Guide
- Prime Cost Guide
- US Restaurant Menu Pricing Guide
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