How to Start a Food Truck Business in Texas

If you’ve been meaning to sell your food in the Lone Star State, you may be wondering how to start a food truck business in Texas. But like with any business, taking that first step can be daunting.

You'll need to create a business plan, comply with local regulations to ensure your food truck operates legally, and obtain and brand your truck. Let's break down the necessary licenses and permits to make this process easier. Here’s what you need to know to get started with your food truck business in Texas.

What is required to have a food truck in Texas?

Unlike some states, a general business license is not needed in Texas. But in order to open a food truck, you still need to obtain different permits and certificates. Luckily, the state government provides a handy list of licenses and permits you may need. Here are the important ones. 

Mobile food unit permit

As your business will qualify as a retail food establishment, the mobile food unit permit ensures your food preparation space meets safety standards. Without this permit, you cannot legally operate a food truck. Approval for your food truck license  depends on the types of food you prepare, your preparation methods, and how you manage waste disposal. The cost for this permit varies by city and county.

Texas sales and use tax permit

Before you can get a mobile food unit permit, you must obtain a Texas sales and use tax permit. This permit is necessary for tax purposes. You can register and apply for this permit through the Texas Comptroller's office.

Local health department permit

Any small business serving food needs to factor in the importance of health and safety, including food safety. Make sure you consult with your local health department so that you’re meeting all public health requirements, whether you’re wondering how to start a food truck business in Houston, Austin, or elsewhere in Texas. 

Alcohol licenses and permits

Typically alcohol is licensed separately from food, so if you’re planning to sell alcohol alongside your meals, make sure you’ve consulted the Texas Alcoholic Beverage Commission for any required permits. 

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How to start a food truck business in Texas

Now you know about the licenses required to start a food truck in Texas, but do you know what else you’ll need? Here’s a step-by-step guide to help you take your meals to wheels.  

Step 1: Do research

It’s never wise to leap without looking. To create a good business plan, you need to start with market research. Find answers to important questions like “how much does it cost to start a food truck in Texas”, and research existing food trucks to understand their strengths and weaknesses. 

Make sure to learn about:

• Audience: Who’s buying from food trucks? What do they like to eat, and what are they willing to pay?
• Location: What are the best places to set up your food truck for success? Are there events or particular areas in town that are popular? Are there areas where you’ll be competing with restaurants or other trucks?
• Competition: What’s the food truck scene like where you’re based? How saturated is the food truck market you’re looking to operate in, and how can you stand out?

Step 2: Create a strong business plan

Business plans are the blueprint for any small business. Your business plan should explain what your business does, who your customers are, your financial plan, and long-term goals. 

Start by describing your food truck concept, what kind of cuisine you’ll offer, and share the results of your market research. Outline your costs, including initial investments and ongoing expenses. Then include your financial projections to understand your profitability.

Step 3: Obtain funding

Business ideas often stay a dream until they can be funded, and your food truck business is no different. Once you have a detailed budget to cover startup costs, including the purchase of the truck, equipment, initial inventory, and marketing, you can start searching for funds. Make sure to factor plan for ongoing expenses such as fuel, maintenance, and employee wages.

Be creative and resourceful when considering funding sources, including the following: 

• Business loans (term loans, SBA loans, equipment financing, short-term loans, or a line of credit)
• Grant funding through a non-profit or local government 
• Partnering with a private investor for a share of profits
• Crowdfunding through GoFundMe or Kickstarter
• Personal savings and the support of friends or family

Step 4: Choose a food truck vehicle

Decide whether to buy or rent your food truck. Buying gives you ownership but requires a larger upfront investment. Renting can be more affordable initially but may have long-term costs. 

Once you have your vehicle, gather the necessary details for permits. This includes the license plate number, VIN, make, model, year, and color. Register your vehicle with the Texas DMV to ensure it meets all legal requirements. 

Step 5: Obtain required licenses and permits

Your business will be short-lived if you don’t get all the legally required permits and licenses. Luckily, the Texas Business Licenses & Permits Guide outlines everything you need to make sure your business is compliant. Follow the steps outlined for food trucks, and skip the permits that don’t apply to you. For example, if you don’t plan on serving alcohol, you may not need that license.

Step 6: Establish your menu and brand

Creating a menu and setting up your brand  is where you can let your individuality shine. You’ll want to make a menu that’s appealing to your target audience, and takes into consideration the cost of ingredients, prep time, and storage needs. 

Plus, keep your competition in mind! Try to balance popular items customers will expect from your truck alongside unique specials that nobody else offers. Then, make sure your branding aligns with your menu and theme. 

You can use free marketing tools to help with building your brand. Ensure it’s both eye-catching and memorable so that your food truck can stand out, and advertise across social media, your website, and local advertising. 

Step 7: Hire and train staff

To really get your show on the road, you’ll need a capable team. That’s why you need to hire and train enough staff to support your launch while staying within budget. Make sure your employees receive comprehensive training about food safety practices, customer service, and daily operations. 

Step 8: Launch and grow your business 

Hosting a grand opening is a great way to launch a small business, but you may need to adapt for the food truck market. Consider participating in local food truck events and festivals to introduce your business to the community, and make sure to engage with customers and promote your specials on social media. 

After launch, make a practice of evaluating your business strategy and customer feedback so that you can adjust and improve your operations. Your food truck will only be more successful if you create a memorable experience for customers. 

Homebase can help your Texas food truck hit the road

Launching a business comes with a lot of extra administrative work that you may not have thought of beforehand. Soon, you’ll have your hands full with managing a team, setting up payroll runs, and staying compliant, all while serving your customers. It can be a lot to handle for just one person!

That’s why Homebase was designed with small business owners in mind. Our all-in-one team management app has tools for everything from scheduling and time tracking to hiring and HR and compliance. You can even communicate with your team on the go and run payroll from the road. Let's make work easier—get started today.