If you have been flirting with the idea of starting a food cart, it would bring you some encouragement to know that starting a food cart is much more affordable than going for a food truck (for example), and it is definitely a more practical way of testing out your business model and fine-tuning it before investing heavily in equipment and more.
However, starting a food cart is not as simple as just pulling the cart onto the street and putting up a sign. Since you are going into the food business, there are very strict laws to follow, and you have to choose just the right commercial kitchen equipment you need.
The process generally differs depending on which state you are in, but there are some underlying factors to consider before putting even a dime down on your food cart.
So, how do you start a food cart? What must you do first?
Main Points
- Start by having a clear idea of what kind of food items you want to make and serve at your food cart.
- Then, thoroughly research food cart licenses and legal requirements for your state.
- Focus on tax requirements and understand what safety routines your food cart would have to comply with.
- If you decide to move forward after that (many people get overwhelmed by all the legal requirements), proceed to purchase prep and storage equipment.
- Then, get your mind in the right mood for managing your business daily.
Step #1. Start by Planning Your Menu
The first step to starting a food cart is to determine what your menu will be. Knowing what your menu will be is an important starting point: the items on your menu determine the type and number of kitchen equipment and appliances you will need, and what your budget estimate should look like.
Food Cart Categories by Menu
- Category 1: Street snacks and fast foods (hot dogs, pretzels, fries, tacos, kebabs)
- Category 2: Breakfast items (coffee, bagels, pastries, breakfast sandwiches)
- Category 3: Ethnic or speciality foods (ramen bowls, dumplings, Thai street dishes, birria, shawarma)
- Category 4: Desserts and treats (ice cream, shaved ice, churros, crepes)
- Category 5: Beverages (smoothies, fresh juices, lemonade, bubble tea)
Again, whichever of these categories your menu falls under determines what your budget should be and the kind of equipment you need to start your food cart.
A food cart serving hot dogs and kebabs, for example, would need a small-sized commercial grill or griddle, while a food cart serving beverages would mostly need a juicer or mixer, and maybe a commercial refrigerator.
Step #2: Research Licences and Legal Requirements
The legal requirements for setting up a food cart differ from state to state. So, when you are done establishing what you want to serve at your food cart, the next step is researching permits, licenses, and legal requirements for food carts in your state, and specifically within your county.
Food Cart Licences and Requirements Differ State by State
Generally, you can expect the requirements to be less stringent in states where it is generally easier to start a food business.
- Texas and Utah, for example, are generally considered to be among the best states to start a restaurant in the U.S.
- In states like California (specifically Los Angeles), the legal requirements are much more numerous and stringent.
In Oregon, for example, a food cart must be a vehicle that does not require special permission from the Department of Transportation to be moved, be on wheels, not have any permanent connection to any utility, including water, sewer, or electricity, and have built-in equipment like tanks for both fresh and grey water.
Starting a Food Cart: Legal Requirements to Pay Attention To
So, legal requirements to start a food cart vary between states, and can be really specific in some counties. How do you conduct your research? A good strategy is to focus on the basics: the fundamental requirements that generally apply when it comes to starting a food cart, which are:
- What business licences are required
- What additional facilities may need to be provided
- What tax requirements (usually monthly) apply to your food cart
1. Obtaining a Food Business Licence and Registration
A business licence is required to start a food cart in every state. Almost in every state and county in the United States, you need a Food Handler Certification.
Most states and jurisdictions that mandate training require the course to be accredited by an organisation like the ANSI National Accreditation Board (ANAB) under the Conference for Food Protection (CFP) standards.
2. Other Legal Requirements That May Apply to Food Carts
In addition to the Food Handling certification, it is always important to find out whether your state requires the following conditions or facilities for food carts:
- A Commissary Kitchen. In states like Washington, you cannot cook the food in your home kitchen. You need a separate space for cooking. The good news is that most cities have shared commissary kitchen spaces for rent. Those are more affordable.
- Zoning Approval: Zoning approval is the process of confirming that your food cart is allowed to operate in a specific area, on a specific type of property, and sometimes during specific hours or under certain conditions.
- Waste Disposal Facility: Your food cart is likely to have a sink, so you need to have access to an approved disposal site. Dispose of wastewater on the street, and you will end up with crippling fines!
- A Warehouse: It must not be a large space, just enough to store your equipment and the cart itself. Usually, you are not legally permitted to store the food in your house.
- A Restroom: There must be a restroom with a proper handwashing sink to serve your food cart.
These specifications are why it is important to know what the law says in your state and county.
Step #3: Verify Tax and Tax/Safety Requirements
Food businesses are generally required to comply with a lot of monthly inspections and are subject to different monthly taxes. Before setting up your food cart, it is important to verify with your state laws to see if any of the following apply in your case:
- Monthly sales tax
- Monthly meals tax
- Health Department and Fire Inspection Routine Checks
Having a prior understanding of the tax demands will help you stay organised and manage your bookkeeping as your business grows.
A lot of people actually give up on their food cart dream after gaining a thorough understanding of the legal requirements involved, as well as the taxes and safety routines required in running the business.
Steps #2 and #3 are to be taken very seriously. Make phone calls and speak to someone currently operating a food cart for clarity on these.
Step#4: Get the Necessary Food Cart Equipment
The equipment you get for your food cart largely depends on the items you intend to serve on your menu.
Here’s a concise starter equipment checklist for three common food‑cart types. I’ve focused on essentials you’ll likely need to operate efficiently, safely, and in compliance with health regulations.
1. Hot‑Dog / Taco / Street-Snack Cart
For a food cart that serves hot dogs, tacos, or street snacks, you need cooking and heating, storage and prep, and sanitation and safety equipment.
Cooking and Heating Equipment
- Commercial Griddle or flat-top grill (for tacos, burgers, sandwiches)
- Deep fryer (for fries, churros, or other fried snacks)
- Hot-holding cabinet or food warmer
Storage and Prep
- Small commercial refrigerator (for meat, cheese, toppings): Go for a single-door commercial refrigerator, preferably a solid door model.
- Prep table/ stainless steel counter:
- Containers and utensils for toppings and ingredients
For some optional equipment, you can also have condiment dispensers and a small canopy or sneeze guard
2. Coffee / Beverage / Breakfast Cart
If you plan to serve mostly breakfast foods like coffee and beverages, you mostly need machine equipment, storage, and some sanitation equipment.
i. Prep Equipment
- Coffee or espresso machine
- Blender or juice dispenser for smoothies / fresh juices
- Refrigerator or cooler (for milk, juices, perishables). A single-door glass door display commercial refrigerator is perfect for displaying items.
- Ice bin or small freezer (if serving iced drinks)
ii. Storage Equipment
- Counter space/prep table: Go for a prep table, which allows you to store ingredients and items for easy storage, access, and use.
- Cups, lids, stirrers, straws
-
Ingredient containers and storage bins
For a coffee or beverage food cart, you may also require some additional equipment, such as a display case for pastries or breakfast sandwiches. A countertop display case takes up little space, is efficient, and less costly. An insulated beverage carrier may also be required in the long run for high-volume service
3. Ice Cream / Dessert / Frozen Treat Cart
For a food cart that serves frozen treats like ice cream or dessert, the most important equipment is cold storage and prep/serving equipment. Here is the primary equipment you will need:
Cold Storage Equipment
- Mobile freezer or refrigerated display case
- Ice cream scoops, containers, and toppings holders
Prep and Serving Equipment
- Countertop or serving table
- Tongs, spoons, and portioning tools
- Containers for toppings (nuts, sprinkles, sauces)
Notes and Tips For Buying Food Cart Equipment
- Health compliance is mandatory: hand-washing sinks, clean prep surfaces, and proper refrigeration are required in most cities.
- Space efficiency matters: choose compact, multi-purpose equipment when possible.
- Menu dictates equipment: don’t over-invest in gear you won’t use, start small, expand as sales grow.
- Power source: some carts need propane (for fryers) or electricity (for coffee machines, refrigerators), so plan accordingly.
Step#4: Mentally Prepare for Running a Food Cart as a Beginner: 10 Valuable Lessons
Running a food cart can be fun and profitable, but it comes with its own set of challenges. Here are valuable lessons to keep in mind:
Lesson #1: Start Small, Test Your Menu
Keep your menu simple: fewer items are easier to prep, serve, and maintain quality. Always test your most popular items first; then you can expand once demand is clear.
Lesson #2: Location Is Everything
High foot-traffic areas, near offices, schools, events, or tourist spots, usually generate the most sales. Remember to research local permits, zoning, and foot-traffic patterns before committing.
Lesson #3: Understand Local Rules and Permits
Food carts are regulated differently in each city, and health inspections, permits, parking restrictions, and sales taxes are critical. Non-compliance can shut you down instantly, so plan ahead.
Lesson#4: Invest in Reliable Equipment
Your cart and equipment must withstand constant use and variable weather. Cheap or makeshift tools often break or fail during peak hours, costing time and money.
Lesson #5: Keep Everything Organised
Space is tight in a food cart, so efficient storage, prep areas, and ingredient organisation are key. Use labelled containers and plan for a smooth workflow from prepping to cooking to serving.
Lesson #6: Hygiene and Safety Come First
Clean surfaces, hand-washing, and proper food storage aren’t optional: they protect customers and your license. In a food truck, even small mistakes can ruin your reputation quickly.
Ideally, you want to have the following sanitation equipment:
- Hand-washing station or sanitiser setup
- Hand-washing or portable sink
- Wastewater and trash bins
- Food thermometer, gloves, sanitiser
Lesson #7: Time and Energy Management are Key
Running a cart is physically demanding and often involves early mornings and long days. Plan prep, setup, service, and teardown efficiently to avoid burnout.
Lesson #8: Engage With Customers
Friendly service, quick interactions, and remembering repeat customers build loyalty. Social media can also help attract local customers and announce locations or special items.
Lesson #9: Adapt and Be Flexible
Weather, events, and customer preferences change constantly. Be ready to tweak your menu, hours, or location based on demand and feedback.
Lesson #10: Track Your Finances Closely
Track sales, inventory, and costs daily. Margins can be thin, so knowing which items are most profitable is crucial.
Final Thoughts on Starting a Food Cart
Proper preparation prevents poor performance, and this saying definitely applies to starting a food cart. Again, the most important thing is to look up laws and regulations that apply in your state or county.
As long as you have the passion and determination, and you are skilled at what you do, you can always fine-tune your strategy and adapt until you find a product or a location that works. A food cart gives you that flexibility.
The only real crippling obstacle would be if you find yourself on the wrong side of the law. As long as you do your research, make some good food, show your genuine care and attention to your customers, and you are flexible in your style/ approach, you will be alright.
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