How Much Will You Spend to Start a Food Truck in Tennessee
Starting a food truck in Tennessee involves careful planning to cover expenses like purchasing a truck, installing equipment, and securing permits. Cities like Nashville, Memphis, and Knoxville are food truck hotspots, offering opportunities at festivals, music venues, and downtown locations. Customizing your truck with the right equipment for menu items like hot chicken or BBQ can significantly impact your budget. Commissary kitchen fees and travel costs between cities are also worth considering. This guide breaks down the financial side of starting a food truck in Tennessee.
Truck or Trailer Costs
Low Estimate:
$30,000
High Estimate
$90,000
Additional Year One Start-up Costs
Low Estimate:
$7,000
High Estimate
$25,000
How Much Should You Budget for Marketing in Tennessee
Making Smart Marketing Investments For Your Truck
• Leverage Regional Publications: Paid spots in local publications like Nashville Scene or Memphis Flyer, starting at $100, can target a niche audience of food enthusiasts.
• Invest in Analytics Tools: Using paid tools like Google Ads or Meta Ad Manager ($50 to $300 per month) helps you track ad performance and refine targeting.
• Create Exclusive Offers: Work with event organizers at music festivals or brewery nights to create exclusive meal deals, offering a share of your revenue as an incentive.
How Much Should You Budget for Marketing in Tennessee
Making Smart Marketing Investments For Your Truck
• Leverage Regional Publications: Paid spots in local publications like Nashville Scene or Memphis Flyer, starting at $100, can target a niche audience of food enthusiasts.
• Invest in Analytics Tools: Using paid tools like Google Ads or Meta Ad Manager ($50 to $300 per month) helps you track ad performance and refine targeting.
• Create Exclusive Offers: Work with event organizers at music festivals or brewery nights to create exclusive meal deals, offering a share of your revenue as an incentive.
Often Forgotten Operational Costs in Tennessee
For the start-up costs for a food truck in Tennessee, propane expenses for cooking equipment average $1,200–$2,500 annually. Commissary kitchen rentals typically cost $400–$1,200 monthly. Event permit fees for Tennessee’s many festivals usually range from $50–$200 per event.


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The True Cost of Food Truck Insurance in Tennessee
Understanding the true cost of food truck insurance in Tennessee starts with knowing what coverage you need to protect your business and comply with state regulations.
General Liability Insurance Purpose: Protects against third-party bodily injury or property damage claims arising from your food truck operations. Requirement: Not legally mandated in Tennessee but highly recommended to safeguard your business. Estimated Cost: Approximately $300 to $700 annually for $1 million in coverage.
Commercial Auto Insurance Purpose: Covers your food truck vehicle in case of accidents, property damage, or bodily injury. Requirement: Mandatory in Tennessee, with minimum liability limits of $25,000 per person, $50,000 per accident for bodily injury, and $15,000 for property damage. Estimated Cost: Between $1,200 and $3,000 per year, depending on factors like vehicle type and driving history.
Workers’ Compensation Insurance Purpose: Provides medical and wage benefits to employees injured on the job. Requirement: Mandatory in Tennessee for businesses with five or more employees. Estimated Cost: Approximately $1,000 to $1,800 annually, varying based on payroll and job risk classifications.
Product Liability Insurance Purpose: Covers claims related to foodborne illnesses or allergic reactions caused by your products. Requirement: Not legally required but essential for food service businesses to mitigate potential lawsuits. Estimated Cost: Often included within general liability policies; additional coverage may cost between $100 and $300 annually.
Equipment Coverage Purpose: Protects your kitchen equipment against theft, damage, or loss. Requirement: Optional but advisable to protect valuable assets. Estimated Cost: Ranges from $200 to $500 annually, depending on the total value of the equipment insured.
How to Budget for Labor Costs When Starting a Food Truck in Tennessee

How to Pay Yourself as a Food Truck Owner in Tennessee
Tennessee’s food truck market, thriving in cities like Nashville and Memphis, is ideal for ambitious entrepreneurs who plan carefully. Most food truck owners form a Tennessee LLC, which is a pass-through entity where business income is reported on their personal tax return. Paying yourself a modest wage—such as $15 an hour for part-time hours—ensures you can cover personal expenses while focusing on business growth. Valuing your time and financial stability during the first year is key to thriving in Tennessee’s competitive food truck scene.

Fair Wages for Food Truck Employees: Tennessee Pay Rate Guidelines
In Tennessee, competitive wages ensure food truck owners attract adaptable employees. Use benchmarks like Whataburger or Raising Cane’s, which typically range from $15–$18 per hour. Unified pay for all roles fosters teamwork, with raises tied to performance or dedication.

Understanding Payroll Taxes for Tennessee Food Truck Owners
In Tennessee, food truck entrepreneurs are responsible for federal payroll taxes, including Social Security, Medicare, and federal unemployment taxes (FUTA). Tennessee does not have a state income tax on wages; however, employers are required to pay State Unemployment Insurance (SUI) taxes. New employers typically start with a SUI tax rate of 2.7% on the first $7,000 of each employee's wages, with rates adjusted annually based on the employer's experience rating. To comply, register with the IRS for an EIN and with the Tennessee Department of Labor and Workforce Development for unemployment accounts. Budgeting for payroll taxes is essential, as they can add approximately 10–15% to wage expenses. Utilizing payroll software or professional services can streamline compliance and ensure timely filings.
Budgeting for a Food Truck or Trailer in Tennessee

Used Food Trucks and Trailers in Tennessee:
Food Trucks: Pre-owned food trucks in Tennessee typically range from $28,000 to $75,000, depending on age, condition, and equipment.
Food Trailers: Used food trailers are generally priced between $22,000 and $50,000, influenced by size and amenities.
New Food Trucks and Trailers in Tennessee:
Food Trucks: A new, fully equipped food truck in Tennessee can cost between $85,000 and $175,000, depending on customization.
Food Trailers: New food trailers typically range from $50,000 to $100,000, influenced by size and specific build requirements.