Food Truck Business Laws

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 What Are Food Trucks?

A food truck is a motorized vehicle, such as a truck, van, or trailer that is equipped to store, transport, cook, prepare, and serve food. Food trucks are basically mobile kitchens that have become an increasingly popular method of selling food to consumers, especially at events. It is important to note that mobile food sales are not new. In fact, the practice of mobile food sales dates all the way back to the 1800s with the creation of food wagons.

However, the popularity and use of food trucks has exploded across the United States, as mobile food sales allows small business owners the opportunity to enter the food sales market at a lower price point than the price point for acquiring a commercial food space. Additionally, with mobile food sales, business owners have more flexibility to operate and connect with their target consumers.

In the United States in 2023, there were over 43,000 food trucks operating, which represented a 10% increase from the previous year. Most studies predict that number is expected to grow even further in 2024. This means that there will continue to be more small business owners and chefs that choose to utilize the mobile food sales model moving forward.

As such, these business owners will have to understand all of the local regulations and licensing requirements necessary to legally operate their food truck.

Do I Need a License to Operate My Food Truck?

In short, yes, if you are operating a food truck or mobile food sales business model, then you will need to have the proper licensing to legally operate. In order to operate a food truck legally, a food truck owner will need to obtain certain licenses and permits. Importantly, the process for obtaining a proper license will vary from state to state and even by locality.

As such, it is important that food truck operators consult with their local government bodies to determine what they need to obtain in order to operate. In general, a food truck operator will need to consider the following licenses and permits:

  • Business Licensing: Food truck operators will need to obtain a business license in order to begin selling food to consumers.
    • The process for obtaining a business license will vary from place to place, but without a business license a food truck operator may receive fines, suspension of their business operator, or even criminal penalties;
  • Employer Identification Number (“EIN”): If the food truck plans to employ anyone other than themselves, then they will need to obtain proper documents from the government for their employees, such as an EIN from the Internal Revenue Service (“IRS”);
  • Driver’s License: Because food trucks are mobile, a valid state driver’s license is necessary to drive the food truck or trailer to the area in which the owner plans on operating their business; and/or
  • Various Permits: Depending on the state in which the food truck operator is working within, they may need to obtain a food handler’s card or certificate that ensures their staff understands safe food handling practices.
    • Other permits that may be necessary are a specific health department permit for their food truck, a seller’s permit, and/or registration for their vehicle or trailer.

Do I Have to Meet Certain Healthy and Safety Standards?

As mentioned above, local government entities require food truck operators to adhere to strict health and safety standards. This includes regular inspections to ensure that the food being served to consumers is being safely and properly prepared, stored, and served.

There are also health and safety regulations concerning certain hygiene practices and proper waste disposal. Further, food truck operators must also generally have a clean water supply. In addition, before a food truck operator can begin to sell food to the public, they must pass all appropriate health inspections for their locality.

The health and safety inspection will generally cover the food truck and the safety and sanitation of the food itself. Then, in order to pass the inspection successfully, a food truck operator will generally need to demonstrate the following to the inspector:

  • The type of food involved in their business;
  • Whether or not the food they use is pre-prepared offsite or cooked on site;
  • Evidence of necessary warning labels and information regarding food allergens; and
  • How the owner handles all of the food.

Once again, state and local laws will determine exactly what the owner and their employees must demonstrate prior to selling their food to the public. Passing a health and safety inspection is important in order to ensure that the public is protected from foodborne illnesses and lessen the risk of harm to the public.

Food Trucks Are Everywhere, So Expect Strict Regulation

Because of the increase in the use of food trucks, many local governmental entities have begun enacting additional regulation in order to ensure health and safety standards are maintained within their locality. As such, food truck operators should expect strict regulation by localities. Most regulations deal with preventing foodborne illnesses.

Foodborne illness, otherwise referred to as foodborne disease, is any type of illness that results from the consumption of contaminated, expired, or otherwise defective food. Typically, foodborne illness results from the improper preparation, handling, or storage of food. As such, foodborne illnesses may result from the operation of a food truck.

If a food truck fails to follow proper health and safety procedures, and a consumer contracts a foodborne illness, then the operator of the food truck may be held liable for the injuries suffered by their patrons.

In order for a person that was harmed by a food truck to recover for their foodborne illness, they would need to prove that the party that harmed them, i.e. the food truck operator, breached their duty of care to properly follow health and safety procedures and that the breach of their duty is what ultimately caused the customer’s injuries.

For example a food truck operator may have undercooked the meat that was consumed by the customer, which resulted in them getting food poisoning. Alternatively, the meat may have been improperly stored or contaminated by other food products contained within the food truck.

Then, if the person that was injured is able to prove their claim against the food truck operator, they can recover a damage award in court. Under the personal injury law, a plaintiff can recover two types of damages:

  • General Damages: These are damages that are awarded for the injury itself and may include:
    • Damages related to pain and suffering;
    • Damages related to mental anguish; and/or
    • Damages related to the trauma of the foodborne illness; or
  • Special Damages: These are damages that compensate an injured customer for a specific consequence of their injury, which may include:
    • Lost wages;
    • Hospital expenses; and/or
    • Any other quantifiable damages, such as loss of earning capacity, pharmacy bills, or in rare cases, damages related to a wrongful death claim.

In addition to customers suing the food truck owner for damages that resulted from their illness, local governmental entities may also fine the food truck owner, suspend their operating license, or even hold them criminally liable. As such, it is important for food truck owners to properly follow all health and safety procedures and operate legally within the locality in which they are operating.

Do I Need to Consult a Lawyer Prior to Starting a Food Truck Business?

If you plan to own, operate, or work in the food truck industry, it may be in your best interests to consult with an experienced small business lawyer.

An experienced small business attorney will ensure that your operation is meeting all of the applicable Federal, State, and local requirements for operating your food truck. Additionally, a lawyer will also be able to represent you in court, should any legal issues arise regarding your food truck business.

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