How to Start a Food Truck Business in Melbourne 2025
Are you fascinated by food trucks that drive around in key streets of Melbourne feeding hungry patrons? Well, if you also want to start a food truck business in this beautiful city, you’re in the right place.
We will be discussing how you can start strolling around the city and share your unique food menu. In fact, running a food truck is easier and more fun than a stagnant restaurant on the street. So, let’s skip the wait and get into the nitty gritty of food trucks right away.
Steps to Open a Food Truck Business in Melbourne: A Complete Checklist
Here are 7 steps that you can follow to open a food truck business in Melbourne:
- Dig deep into market research
- Devise a business plan
- Analyse the costs of running a food truck
- Register your business & get licences
- Purchase a food truck
- Get a solution for your business
- Be active on social media
7 Steps to Start a Food Truck Business in Melbourne Explained
Step 1: Dig Deep into Market Research
Before you start exploring options to buy a food truck, you need to first understand whether or not the market is feasible. Find out what the people in Melbourne expect from a food truck. This is what’s called market research. By conducting thorough market research, you can identify your target audience, recognise the trends and devise a business plan accordingly.
Step 2: Devise a Business Plan
Once your research data is ready it’s time to start constructing a complete business plan for your food truck venture. Based on your target market, you need to outline the following:
- Business Name
- Business Goals
- Marketing Strategies
- Menu Offering
- Pricing Strategy
- Financial Projection
- Target Street/Location
You also need to come up with your USP (Unique Selling Proposition) to set yourself apart from your competitors. This plan will not only guide your actions but also assist in attracting potential investors or securing funding opportunities.
Step 3: Analyse the Costs of Running a Food Truck
To start any business, you need a lot of money. That includes purchasing the truck, equipment, ingredients, permits, licences, staff salaries, marketing expenses, and maintenance. Analyse the cost of running a food truck beforehand. Otherwise, you might end up exhausting all your capital before your business even starts to earn.
That is why you need to meticulously calculate all the costs and determine how much capital you'll need. This financial analysis will help you set appropriate pricing for your menu items and ensure that you're adequately prepared for the challenges ahead.
Step 4: Register Your Business & Get Licences
Once all your data and business plan are ready, time to deal with the legal stuff. Melbourne has its own Food Truck Program that allows you to run food trucks in designated areas. Here’s everything you need to know about this program:
| Section | Summary |
| Food Truck Program Overview | The City of Melbourne operates a Food Truck program, allowing operators to trade in designated areas. The program aims to enhance areas with low café/restaurant numbers. |
| Available Sites | There are 3 permanent and 6 rotational sites for food trucks across the city. Applications are handled through an Expression of Interest (EOI) process. |
| Fees | Monthly permit fees:
|
| Designated Locations | Food trucks must trade only in specific locations authorised by the City of Melbourne permit. |
| Other Opportunities | Food trucks can't operate at markets, events, festivals, or privately managed spaces (e.g., Queen Victoria Market, Federation Square). |
| Application Requirements | Food truck operators need Food Act registration via Foodtrader. Expression of Interest considers factors like design, menu, sustainability, history, and pricing. |
Source: Melbourne Food Truck Program
Make sure you have all the necessary permits as per the Food Truck Program before you start.
Step 5: Purchase a Food Truck and Required Equipment
Time to shop for a food truck. Whether you want to buy a used one or a new one, make sure that the truck is in good condition. Also, this food truck should be able to fit all your equipment such as cooking appliances, storage units, refrigerators, etc.
A food truck can cost you anywhere from $20,000 to $120,000, depending on its size, design and equipment. Make sure to separate the price for the food truck in your financial plan.
Step 6: Get a Solution for Your Business
Software solutions are always needed for any type of business. This is because they streamline the business operations making it easier for the owners. One solution that we recommend you should have is a point-of-sale system.
A Food Truck POS system enables you to efficiently manage orders, track sales, process payments, and generate receipts. This is especially handy when you start gaining traction and you want to cater to your customers as quickly as possible. You wouldn’t want your customers to wait in long lines under the bright sun for too long. Look for a POS system in Melbourne so that you have customer support all the time.
Step 7: Be Active on Social Media
Social media platforms like Instagram and TikTok are powerful tools for marketing your food truck. People love to watch photos and videos of how a food truck works, how people interact with you, how tasty your food is, etc. You can also share your menu items, behind-the-scenes moments, and updates about your locations. This increases interest and engagement with your food truck.
4 Biggest Mistakes to Avoid When Opening a Food Truck Business
These are the 4 biggest mistakes you need to avoid when starting a food truck business in Melbourne.
No USP
Unique Selling Propositions or USPs in short are what differentiates your food truck from others. Without it, you’re just another food truck on the corner of the street. There’s no compelling reason to choose your truck over others.
Unskilled & Rude Staff
How you or your staff treat the customers is key. Neglecting proper staff training in crucial parts such as customer service or food handling can result in unhappy customers and negative reviews.
Poor Time and Inventory Management
Managing inventory and time effectively is essential in the fast-paced environment of a food truck. Not investing in a POS system with proper inventory management can lead to wastage or shortages of ingredients. Moreover, POS systems like POSApt can help you take orders quicker and process transactions faster.
Overlooking Legal and Regulatory Compliance
The city of Melbourne is pretty strict when it comes to tax compliance and other legal requirements. So, neglecting any requirements that you are obliged to can result in serious fines or even closure of your food truck.
FAQs
How much does a food truck licence cost?
In Melbourne, Food Truck licences are charged on a monthly basis as follows:
- Permanent site: $1053
- Rotational site: $207
- Inspection fee $207
How much to hire a food truck in Melbourne?
Normally, you can expect to pay anywhere from $800 to $2,000 or more for a few hours of food truck service. However, the cost to hire a food truck depends on the size of the truck, the facilities it comes with and the duration of the hire.
How much does a food truck cost?
Food trucks can cost anywhere from $50,000 to $150,000. It all depends on the size, design, and power of the truck. You can also get used ones which would cost you below $50,000.
Where can I park my food truck in Melbourne?
As per the Food Truck Program of the City of Melbourne, Food trucks must trade only in specific locations authorised by the City of Melbourne permit. Moreover, they cannot operate at markets, events, festivals, or privately managed spaces (e.g., Queen Victoria Market, Federation Square).
*DISCLAIMER: This article is for general information only. POSApt does not guarantee accuracy, completeness, or specific results from following this advice. Consider consulting business professionals for tailored guidance.