Owning a food trailer in Australia isn’t just about the upfront investment — the ongoing costs of running and maintaining the business play a major role in your long-term success. Understanding these regular expenses helps you plan cashflow, set realistic prices, and ensure profitability.
Daily and Weekly Operating Costs
The most immediate and regular costs come from the day-to-day running of the trailer. Ingredients and food supplies are one of the biggest ongoing expenses, typically consuming around 25–35% of your sales, depending on your menu and sourcing. Fuel is another steady cost, not just for driving the trailer but also for running generators or other equipment if you’re operating off-grid.
You’ll also need to restock packaging materials — napkins, cups, boxes, and cutlery — and maintain a steady supply of cleaning products to meet hygiene standards. These small items add up fast, so smart ordering and waste reduction are key to keeping costs under control.
Staffing and Labour Expenses
Even if you’re a solo operator, consider your own time and what it’s worth. For those hiring staff, you’ll need to account for casual wages, superannuation, workers’ compensation insurance, and potentially staff uniforms or training. Australian labour laws are strict, so ensuring compliance is not optional — and penalties for getting it wrong can be steep.
Licensing, Permits, and Compliance
Operating legally requires holding current food business licences, trading permits, and health certifications, which usually come with annual renewal fees. Depending on your local council and where you trade, you may also need to pay for site fees at markets or festivals. These can range from a few hundred to several thousand dollars per year, depending on how many locations you cover.
Equipment Maintenance and Repairs
A food trailer is a mobile kitchen, and like any kitchen, it needs regular maintenance. Gas and electrical systems must be inspected routinely to stay compliant with Australian safety standards. Equipment breakdowns can happen unexpectedly — whether it’s a faulty fridge, a broken fryer, or a generator failure — so setting aside a maintenance fund helps prevent costly business interruptions.
Insurance and Financial Overheads
Public liability insurance, vehicle insurance, and trailer insurance are essential and come with annual premiums, often totalling AUD 2,000–5,000 depending on coverage. Additionally, you’ll have accounting costs, software subscriptions for point-of-sale systems, and possibly loan repayments if you financed your trailer purchase.
Storage, Parking, and Other Hidden Costs
When you’re not on the road, your trailer needs secure storage or parking, which may involve rental fees. You’ll also need to budget for marketing and advertising, whether that’s social media ads, website hosting, or printed promotional materials, to keep customers engaged and attract new ones.
Balancing Costs and Profitability
Running a food trailer business is more than just selling great food — it’s about balancing all these ongoing expenses to maintain healthy profit margins. Smart planning, regular financial tracking, and working with reliable suppliers can make the difference between breaking even and building a thriving, scalable business.
If you want expert advice on setting up a reliable and cost-efficient mobile kitchen, explore solutions from custom food trailer manufacturers who can help design a trailer that’s efficient, compliant, and built for long-term success.