How to Start a Taco Truck Catering Business

Taco trucks have become a beloved staple at events, weddings, festivals, and corporate gatherings, offering guests a delicious and convenient dining experience. According to Restaurant Hospitality, there are 2.4 million weddings held in the U.S. each year, averaging 180 guests apiece. The average tab is $29,858. With such a high number of weddings and substantial budgets, taco truck catering presents an enormous opportunity to tap into this lucrative market by offering a unique, customizable, and crowd-pleasing alternative to traditional catering services.

While starting a taco truck catering business can be a lucrative and exciting venture, like any business, it requires careful planning and execution. In this guide, we’ll walk you through the steps to get your taco truck catering business up and running.

Why a taco truck catering business is a great idea

Starting a taco truck catering business has several advantages. First and foremost, tacos are universally loved. Whether it's street tacos, gourmet options, or authentic regional variations, tacos have a wide appeal. Moreover, food trucks have lower startup costs compared to brick-and-mortar restaurants, and the mobility of the truck allows you to cater to a wide range of events and locations.

The Lime Truck, a celebrated food truck known for its fusion of bold Mexican, Asian, and Mediterranean flavors, gained nationwide recognition after winning the Food Network’s food truck competition, The Great Food Truck Race: All Stars. Chef and owner, Daniel Shemtob, brought his innovative culinary vision to life through this dynamic and flavorful menu, which impressed both fans and critics alike. When it comes to starting a food truck, Shemtob’s advice is straightforward. “… dial in your brand and menu to be cohesive and unique to the marketplace. It doesn’t necessarily have to be something new, but you have to do it so well you start building a cult following … My technical advice is that you’ve gotta figure out how to get catering clients. If you don’t have that, you’re going to have to redo your business plan. In fact, The Lime Truck is now almost only focused on catering.”

Catering, in particular, is a growing segment of the food service industry. Many clients are opting for food trucks for their events due to their flexibility and the unique experience they offer. A taco truck can capitalize on both casual gatherings and upscale events, depending on how you position your menu and brand.

How to start your taco truck catering business

1. Plan your business

The first step to starting any successful business is careful planning. A comprehensive business plan helps clarify your business goals, budget, and marketing strategy. Below are the key components of a business plan specifically for a taco truck catering business:

Define your niche

Though tacos are popular, there’s still a lot of room for differentiation. Clarify your niche to stand out from the competition, allowing you to cater to specific tastes or dietary preferences (e.g., vegan, gluten-free, etc.). Some popular taco truck niches include:

• Traditional Mexican street tacos: Carne asada, al pastor, carnitas, and barbacoa.

• Vegetarian and vegan tacos: Grilled veggies, tofu, jackfruit, and plant-based proteins

• Fish and seafood tacos: Fish, shrimp, or Baja-style tacos

• Breakfast tacos: Eggs, bacon, potatoes, and cheese

• Fusion tacos: Mexican flavors with Korean, American, BBQ, or sushi

Understand your target market

Identify your customer base. Your clientele will dictate your budget and determine how you approach your menu, marketing efforts, and services to meet their specific preferences. For example, corporate clients may prefer a more polished, gourmet menu, while festival-goers may look for quick, affordable, and fun taco options. Some target catering markets include:

• Corporate events: Companies hosting lunches, team-building events, or celebrations 

• Private parties: Individuals celebrating birthdays, anniversaries, or special milestones

• Weddings: Couples looking for a fun, casual dining experience for their guests

• Festivals: Event organizers for local festivals, fairs, or community gatherings

Analyze your competitors

Research other taco truck catering businesses in your area. Understanding your competitors will help you position your taco truck business effectively in the market. Some insight to gain:

• Menu options: What are they offering? 

• Pricing: How do they price their services? 

• Niche: How can you differentiate yourself in terms of menu, customer service, and overall experience? 

Create a budget

Starting a taco truck catering business requires an initial investment, including the cost of the truck, kitchen equipment, permits, and initial inventory. You’ll also need to budget for marketing, website development, and operational costs, such as fuel, staff wages, and food supplies.

Here’s a rough breakdown of startup costs:

• Taco truck: $50,000 to $100,000 (depending on if you buy new or used)

• Equipment and kitchen supplies: $10,000–$30,000

• Permits and licenses: $500 to $3,000 (varies by location)

• Initial inventory: $2,000 to $5,000

• Marketing: $1,000 to $5,000

By creating a detailed budget, you’ll have a clear understanding of how much capital you need to start your business and how long it will take for your business to become profitable.

Choose your business structure

Decide how you want to structure your business. Many small business owners opt for an LLC because it offers flexibility and protects personal assets from business liabilities. Consult with a legal advisor to determine the best structure for your specific situation. Options include:

• Sole proprietorship: Ideal for small operations but there isn’t any separation between personal and business liabilities.

• Partnership: Might be appropriate if you’re going into business with one or more partners. Doesn’t offer personal liability protection, but it allows for shared responsibility and decision-making.

• Limited liability company (LLC): Provides personal liability protection while allowing profits and losses to pass through to your personal income without facing corporate taxes. This structure combines the benefits of a corporation and a partnership.

• Corporation: An S-Corp or C-Corp offers the highest level of liability protection. Can be beneficial for larger operations or if you plan to seek significant investment. However, corporations are subject to more regulations, and in the case of C-Corps, you may face double taxation on profits. 

2. Obtain the necessary licenses and permits

Running a food truck catering business requires specific licenses and permits. These regulations vary by city and state, so it’s important to research the local requirements for operating a food truck in your area. Common permits you may need include:

• Business license: Allows you to operate legally in your city or state.

• Health department permit: Ensures that your truck meets all health and safety standards.

• Food handler's permit: Certifies that you and your staff understand food safety and hygiene practices.

• Vehicle license: Your truck will need to be registered and insured.

• Parking permit: Some cities require special permits to park and sell food in certain areas.

Additionally, you may need catering-specific licenses if you're catering events, such as serving food at private venues or public spaces.

3. Design and equip your taco truck

The design of your taco truck is critical to your brand image and the efficiency of your operations. Here are some tips on designing and equipping your truck:

Exterior design and branding

Your truck’s exterior is the first thing potential customers and clients will see, so it should be eye-catching and reflect your brand. 

• Brand identity: Work with a graphic designer to create a bold, memorable logo and color scheme that aligns with your business identity. 

• Thematic design: Consider incorporating elements of Mexican culture, street food vibes, or your niche (e.g., fusion tacos).

• Contact information: Include your social media handles, website, and contact information on the truck so potential clients can easily find and book you.

Taco Empire’s eye-catching exterior design not only draws attention but also ensures the name and contact number are prominently displayed, making it easy for customers to identify and reach out for food ordering or catering inquiries.

Kitchen equipment

A well-organized kitchen is essential for running a successful taco truck catering business. Key equipment you’ll need includes:

• Griddle or flat-top grill: Cooking meats and vegetables

• Fryer: Chips, churros, or fried taco shells

• Refrigerator and freezer: Store perishables

• Prep table: Assembling tacos, nachos, tostadas, and cutting vegetables and herbs

• Food warmers: Keep cooked items at a safe temperature

• Storage: Non-perishable items (e.g., tortillas, spices)

Make sure your kitchen layout is optimized for quick service and food safety. Consult with food truck designers or builders to ensure that your truck meets local health and safety regulations.

4. Create your taco truck menu

Your menu will be one of the biggest draws for clients, so it should be well-thought-out and cater to various tastes and dietary needs. Consider offering a mix of traditional and innovative taco options. 

Taco menu Ideas

• Classic Mexican tacos: Carne asada, al pastor, barbacoa, and carnitas

• Fusion tacos: Korean BBQ beef, Thai chicken, or vegetarian options with roasted vegetables

• Gourmet tacos: Grilled shrimp with mango salsa, duck confit with hoisin sauce, or short rib tacos with pickled onions

• Dietary-specific options: Gluten-free tortillas, vegan fillings, or keto-friendly tacos

St. Louis, Missouri’s Seoul Taco food truck combines Korean and Mexican cuisines with dishes like bulgogi tacos and kimchi quesadillas.

Sides

Be sure to offer sides and drinks that complement your taco offerings. Options could include:

• Chips and salsa

• Guacamole

• Beans and rice

• Street corn

• Churros

• Mexican sodas

• Agua frescas

Catering pricing

Since you’re focusing on catering, think about how you’ll structure your menu for large groups. Some examples include: 

• Set packages: Offer pre-set menus with fixed prices based on group size (e.g., $15 per person for three tacos, chips, and a drink).

• Tiered packages: Provide tiered pricing based on different levels of service or food options (e.g., basic, premium, or deluxe taco packages with varying levels of customization).

• Buffet style: Offer a fixed price for an all-you-can-eat buffet, charging based on the number of people attending (e.g., $20 per person for unlimited tacos and sides).

• Custom menu: Allow custom menus and pricing by selecting specific taco options, sides, and add-ons, creating a fully personalized catering experience.

5. Market your business

Marketing is key to getting your taco truck catering business off the ground. Below are some strategies to build awareness and attract clients:

Build a website

Your website is your digital storefront. Invest in professional photos of your tacos and truck to make your site visually appealing. Include key information like your:

• Menu

• Catering services

• Pricing

• Booking and availability form

• Contact information

Be sure to optimize your website for search engines by using relevant keywords like "taco truck catering," "taco truck for events," and "mobile taco catering" to attract organic traffic. 

Señor Sisig's website bursts with vibrant colors and bold visuals, capturing the lively energy of Filipino street food culture while showcasing their innovative fusion menu with flair.

Use social media

Social media is a powerful tool for promoting your taco truck catering business. In fact, 84% of food truck businesses use social media to promote their offerings. Platforms like Instagram and Facebook are ideal for sharing mouth-watering food photos, behind-the-scenes content, and updates on where your truck will be parked. You can also use social media to:

• Run promotions

• Offer discounts for events

• Engage with your community

• Partner with local influencers or food bloggers to generate buzz

Network with event planners and venues

Building relationships with event planners and venues can lead to more catering gigs. Some ways to connect:

• Attend local networking events

• Join catering associations

• Connect with wedding venues, corporate event planners, and party rental companies

• Provide sample tacos at networking events 

• Collaborate with wedding and party photographers on styled shoots

Collect testimonials and reviews

Customer testimonials and reviews are powerful tools for building credibility and trust. Some ways to acquire reviews: 

• Review platforms: Encourage clients to leave a review on Google, Yelp, or your social media pages.

• Email follow-ups: Send an automated email after a purchase or event asking for feedback and encouraging clients to leave a review. 

• Incentivized reviews: Offer discounts or small rewards, like a free item, in exchange for leaving a review or testimonial online.

• Video testimonials: Ask satisfied customers if they’d be willing to share a quick video testimonial about their experience, which you can post on your website or social media.

Positive feedback will not only help you attract new clients but also improve your SEO rankings.

After a successful catering event, Tacos El Gueraso received a glowing text message from a satisfied customer, which they repurposed into a 5-star review for a social media post. 

6. Scale your business

Once your taco truck catering business is up and running, you’ll want to think about scaling. Here are some strategies for growing your business:

Add more trucks

If you find that demand for your services exceeds what your current truck can handle, consider investing in additional trucks. This will allow you to:

• Increased revenue: Cater multiple events simultaneously 

• Wider geographic reach: Expand to different cities and regions

• Improved customer service: Handle larger events or multiple bookings

• Reduced downtime: Continue operating if one truck is down for maintenance or repairs

Offer additional services

As you build relationships with clients, consider offering complimentary services such as: 

• Dessert catering: Serve churros, flan, tres leches cake, or other Mexican-inspired desserts.

• Beverage catering: Offer horchata, aguas frescas, Mexican sodas, or even margaritas and cocktails for events with alcohol permits.

• Breakfast taco catering: Offer breakfast options like tacos with eggs, chorizo, bacon, and potatoes for morning or brunch events.

• Party favor catering: Offer Mexican-themed party favors, such as mini bottles of hot sauce, branded napkins, or souvenir cups.

Diversifying your offerings can increase your revenue and make your business more attractive to event planners.

Franchise your business

If your taco truck catering business becomes highly successful, you might consider franchising. Franchising can help you: 

• Rapid expansion: Grow your business quickly without the need for large capital investments, as franchisees cover the cost of new locations.

• Increased brand visibility: Gain wider recognition, increasing customer awareness and market presence.

• Steady revenue stream: Earn revenue through franchise fees and royalties, providing a consistent and scalable income source as the franchise network grows.

• Economies of scale: Negotiate better deals with suppliers as more franchise units open, reducing costs for both the franchisor and franchisees.

Chronic Tacos started as a single, humble spot serving authentic, customizable tacos, and has since expanded into a thriving franchise with locations across the U.S., including both sit-down restaurants and food trucks, all while staying true to its commitment to fresh, bold flavors.

Final Thoughts

Starting a taco truck catering business can be a rewarding and profitable endeavor, especially with the growing popularity of food trucks and catered events. By carefully planning your business, obtaining the right permits, creating a mouth-watering menu, and effectively marketing your services, you can succeed in the food truck industry.