from food truck to physical location

Costs of Opening a Physical Location

If your food truck is experiencing high volumes of success and an increased demand, you may want to consider opening a physical restaurant location. A physical location can provide the same special menu year-round to loyal customers. Prior to opening a physical location, it’s important to consider associated costs such as location fees, kitchen equipment, and licensing.

Location Fees

The median cost of opening a restaurant can be anywhere from $275K to $430K. The actual fees are mostly determined by leasing vs. purchasing property for your restaurant. Construction costs associated with personalizing your venue could be one of your greatest expenses. Be sure you have enough funds set aside for getting your location ready to serve customers and maintain the facilities for as long as it takes to get your physical location up, running, and making a profit.

Kitchen Equipment

Outfitting your new kitchen can be quite expensive. Unlike your food truck, you can invest in full size kitchen appliances and equipment for added efficiency and ease. Cooking equipment to purchase includes ranges, flat top grills, char broilers, refrigerators, freezers, stoves, and dish washers. You will also need all the pots, pans, utensils, and serving dishes necessary to make your menu items. While these items quickly add up, you might consider leasing your restaurant equipment. Initially this will make room in your startup budget. Used equipment from authorized dealers can also help save on equipment costs.


While a food truck requires proper licensing and health certifications, restaurants often require even more types of licenses. Licensing you will likely need to obtain include business license, liquor license, certificate of occupancy, foodservice license, health permit, and insurance. Obtaining the proper licensing can be a lengthy and expensive process, just as it was with your food truck. Get a head start to make sure you obtain all necessary documentation by opening day.

As a food truck owner, the initial costs of opening a physical location may seem daunting. However, if you have the audience for it, the financial return can be significant. An additional savings benefit is that you can likely use your physical location as your commissary for your truck. Many food truck owners are following the trend and opting to open a physical location. Be sure to run a risk analysis and obtain the proper financing to ensure you have the means to achieve success.

If you are interested in starting a food truck before you open a physical restaurant, check out Equipment Needed to Get Your Food Truck Business Running for additional information.

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