How Much Does It Cost to Start a Food Vending Business?

Nate Jones, CPCU, ARM, CLCS, AU
Nov 17
2 min read

Updated: 1 day ago

Starting a food vending business is an exciting opportunity to enter the food service industry with lower overhead than a traditional restaurant. Whether you plan to operate a food cart, concession stand, or trailer, understanding the costs involved is essential for success. From equipment and permits to insurance and marketing, here’s what you need to know about startup expenses.

At Wexford Insurance, we help food vendors protect their investment with tailored insurance coverage.

Why Knowing Your Startup Costs Matters

A clear budget helps you:

Avoid unexpected expenses.
Secure financing or investors.
Plan for profitability from day one.

Typical Startup Costs for Food Vending Businesses

1. Equipment Costs

Your biggest expense will likely be equipment. Depending on your setup:

Food Cart: $2,000–$5,000
Food Trailer: $10,000–$20,000
Cooking Appliances: $500–$3,000
Refrigeration Units: $500–$2,000
POS System: $200–$1,000

2. Licensing and Permits

Costs vary by location but typically include:

Vendor License: $50–$500
Food Handler’s Permit: $100–$300
Health Department Inspection: $100–$500

3. Initial Inventory

Expect to spend $500–$2,000 on food supplies and packaging materials.

4. Insurance Coverage

Insurance is essential for protecting your business. At Wexford Insurance, we offer specialized coverage for food vendors, including:

General Liability Insurance: $300–$600 annually
Commercial Auto Insurance: $600–$1,200 annually
Commercial Property Insurance: $500–$1,000 annually
Workers’ Compensation: Varies by state and payroll
Equipment Insurance: $100–$300 annually

5. Marketing and Branding

Budget $200–$1,000 for:

Social media ads
Logo and signage
Website development

Struggling to market your business? Visit Contractor Back Office for website SEO and marketing support.

Total Estimated Cost

Starting a food vending business typically costs $5,000–$25,000, depending on your setup and location.

Final Thoughts

Understanding your startup costs is the first step toward building a successful food vending business. Protect your investment with the right insurance coverage.

Contact Wexford Insurance today to safeguard your business.