Which permit costs do you factor into food truck prices?

You factor permit costs for your food truck into your prices by spreading them over your revenue or your selling days. That way you don't miss any costs in your calculation, and you work with food truck prices that add up.

The exact food truck permit costs differ per situation. That depends partly on your pitch, how you sell and which permits you need. Think of a pitch permit or other local permits for selling food.

By factoring in your food truck permit costs every time, you avoid working under your cost price and keep a grip on your margin.

Which permits do you need for a food truck?

For a food truck you often need several permits. Which ones exactly depends on your location and how you sell. In practice, you usually deal with an operating permit, rules from the APV (the local council bylaw), a pitch permit and food safety requirements.

The operating permit is needed in some councils to be allowed to run a hospitality business. You apply for it at the council where you're based. Whether it's compulsory differs per council.

The APV (the Algemene Plaatselijke Verordening, the Dutch general local bylaw) determines where and when you're allowed to park your food truck in public places. These are local rules, and they differ per council.

For a specific location, such as a fixed spot or a market, you usually need a pitch permit. According to Utrecht council, for example, you need a permit if you sell products from a vending vehicle on a pitch.

If you work at events, that usually goes through the organiser and an event permit. When signing your contract, ask who arranges the permit and who pays for it.

If you work with food, you need to meet hygiene requirements and work according to a food safety plan (HACCP). That's mandatory for anyone who regularly sells food, and it's checked by the NVWA, the Dutch food safety authority.

How much do food truck permits cost on average?

The cost of a food truck permit differs a lot per council and per situation. There's no fixed national rate: councils set their own fees and conditions. As a result, total food truck permit costs vary widely.

For a pitch permit you usually pay a fee per application or per period. In practice, this can vary from around €45 for a short temporary pitch to well over €500 for a permanent permit, depending on the council. For example, Ede council charges €44.90 for a temporary pitch and €533 for a season or a permanent pitch.

Other councils charge comparable amounts too. In Utrecht you pay, for example, €576.45 for processing a new permanent pitch permit, excluding the usage fee for the location.

For smaller or shorter applications, the costs are often lower. For example, at some councils you pay around €50 to €150 in application costs, depending on the duration and the type of permit.

Other permits, such as an operating permit or an event permit, don't have a fixed national price and differ per council. The costs for APV rules are usually built into these permits.

If you work with food, you need to meet HACCP guidelines. That's not a permit but a mandatory way of working. Any costs lie in training or systems and differ per provider.

In short: your food truck permit costs usually sit, in practice, between a few tens of euros per application and a few hundred euros per permit, depending on where and how you sell. Always factor these costs into your food truck prices, so you don't work under your cost price. They're shaped by several factors, such as your location and the type of event (also read: Which factors determine the price of catering?).

How do you work out permit costs in your food truck prices?

Work out your permit costs by dividing your total annual food truck permit costs by the number of selling days you expect. You include that cost as a fixed cost in your price, just like your insurance and the rent for where you park overnight. That belongs in your total cost price (also read: How do you work out prices for a catering quote?).

Say you have €800 in annual permit costs and you work 200 days a year. Then your daily cost is €4. At an average daily revenue of €400, that works out to roughly 1% of your revenue.

For seasonal food trucks that works differently. If you only operate from April to October, you spread your annual costs over fewer selling days. Your cost per day is then higher, and that needs to show up in your food truck prices.

For on-site catering or private parties, you usually build permit costs into your hourly rate or your total price. If you pay €800 a year in permits and work 400 hours, that comes to €2 an hour in permit costs.

Also account for costs tied to a single spot. If you pay €100 for a pitch at a festival, you need to earn that amount back from your revenue that day.

Finally, make a distinction between fixed and variable costs. You spread fixed permit costs over all your selling days, while variable costs, such as a pitch for a single event, you put straight into the price for that location. Especially for larger jobs, that helps you avoid calculation mistakes (also read: What challenges come up with complex catering quotes?).

What are the hidden costs of food truck permits?

The hidden costs of food truck permits mainly lie in admin fees, renewals, extra charges and your own time. They differ per council and can significantly increase your total food truck permit costs.

In the Netherlands, admin fees are called leges. These are the costs for processing your application. For example, at councils you pay around €80 to €130 per application for a pitch permit, for example €80 in Amersfoort and €130 in Capelle aan den IJssel.

On top of that, you often also pay to renew or change a permit. In Maastricht renewing a permit costs, for example, €44.10, separate from the original application costs.

Extra costs also come from the fact that councils charge separately for different components. If you apply for a permit covering several activities, those amounts get added together and your total permit costs come out higher.

If you work on a pitch, in some councils you pay not just for your permit but also for using council land (precariobelasting), a Dutch local tax on using public land for commercial purposes. That's sometimes built into the permit, but can also show up separately on the bill.

Don't forget your own time. Applying for and keeping track of permits takes hours, especially if you work several locations. An evening of paperwork a month isn't unusual, and those hours aren't in any rate unless you put them there yourself.

By accounting for these hidden costs, you avoid underestimating your food truck permit costs, and you keep a better grip on your margin.

How do you plan permit costs into your annual budget?

Plan your food truck permit costs by listing, at the start of the year, all the permits you need and spreading them over your selling season. That way you avoid spikes in your costs and keep a grip on your budget.

Make a permit calendar with all the application and renewal dates and put them in your diary well in advance. That way you avoid a permit lapsing or paying extra because you were late.

Work with a fixed amount per month. If you have €1,200 in annual permit costs, you set aside €100 a month. That stops a big bill catching you out in a quiet month.

Bear in mind that rates differ per year. Councils set their fees afresh every year in the legesverordening (the fee schedule), so your costs can change at the places where you work.

Also set aside extra budget for new locations or events. If you work several spots, extra permits or pitch costs can raise your total food truck permit costs.

Each year, check which permits and locations earned enough. That way you avoid keep paying for a pitch where you barely turn over anything, and you can choose more deliberately the year after.

By planning your food truck permit costs in time and factoring them into your food truck prices, you avoid surprises and keep control over your margin.

Building permit costs into your quotes

Most permit costs are small per day, but they add up. So build them into your calculation permanently, so you don't have to think of them every time, and they still make it into a rushed quote.

With Catermonkey you build your fixed costs in once, and after that they show up in every quote. If you want to talk it through before adjusting your prices, get in touch.

Frequently asked questions

What does a pitch permit for a food truck cost?

That differs per council. For a temporary pitch you pay around €45, for a permanent pitch it climbs to well over €500 a year. In Ede a temporary pitch costs €44.90 and a permanent one €533; in Utrecht you pay €576.45 for processing a new permanent application. Always check the legesverordening (the fee schedule) of the council where you want to work.

Should I put permit costs separately on my quote?

For a pitch you apply for specially for that customer, put the amount separately on the quote. That way the customer understands what they're paying for, and you keep the amount out of your normal price per portion. Your fixed annual permits you build into your price per day or per hour, because you'll have those costs anyway.

Which permits do I need if I only work festivals?

If you only work events, the organiser usually arranges the event permit for the whole site. You then don't need a pitch permit yourself, but you do need a food safety plan under HACCP and often a registration with the KVK, the Dutch Chamber of Commerce. If you serve alcohol, separate rules apply. Always ask the organiser in writing what they arrange and what you need to apply for yourself.

How do I work permit costs into the price per portion?

Divide your annual permit costs by the number of selling days, then by the number of portions you sell on an average day. At €800 a year, 200 selling days and 150 portions a day, you land on just over 2 cents per portion. A small amount, but include it anyway, because the same goes for your insurance, your parking and your maintenance.

How long does it take to get a pitch permit sorted?

Allow six to eight weeks at most councils, and longer if your application has several parts or there's room for objections. For a temporary pitch it often goes faster. Apply well before the season, because an application that comes in just too late can cost you whole weeks of revenue.

Can I deduct permit costs from tax?

Fees and pitch costs are business costs and belong in your books as business expenses. Keep the assessment or invoice from the council. If you're unsure about precariobelasting, or about an application that's also used privately, run it past your accountant.

Catermonkey automatically factors your fixed costs, including your permits, into your calculation, so you see the margin on a day or a job before you agree a price.

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