Starting a Food Cart in Chicago: Laws and Regulations

The overall value of the US fast food market reached 188 billion in 2024, while Illinois’ share was only 8-9 billion, which is two or even three times less than that of other states (e.g., New York or California). The point is that local authorities impose stringent restrictions on street food vendors, discouraging many aspiring entrepreneurs. However, this does not mean you cannot break into the market – we will tell you how to open a food cart in Chicago so that you can implement all your business plans successfully.

Do You Need a Food Cart License in Chicago?

Are food carts legal in Chicago? The short answer is yes. However, an owner of a non-motorized cart must get a Mobile Prepared Food Vendor license to serve dishes and beverages legally. Unlike other US states, Illinois jurisdiction prohibits cooking food on-site, so vendors must prepare all their dishes and beverages in licensed brick-and-mortar kitchens and then sell them on the streets enclosed in containers or wrappers. The cart’s owner is also required to get a Shared Kitchen User license to cook their food in such establishments without breaking the law.

How to Get a Chicago Food Cart License

The Mobile Prepared Food Cart Vendor license Chicago is given for two years, and the application fee is $100. There are two options to apply for it:

In person by visiting the Small Business Center located in City Hall, 121 N. LaSalle Street, Room 800.

Here’s how you can get the license:

Submit your business information using one of the options stated above.
Complete and submit a license form.
Consult with the CDPH Food Protection Division on sanitation requirements, equipment, and paperwork needed to operate a street food business in Chicago.
Pay for the license.
Complete the City of Chicago Debt Check to prove your business has no outstanding debts.
If needed, get a fire safety permit from the CFD.
Receive your license.

Food Cart Vendor License: What’s Required to Apply for It?

Your personal and business information (your name, address, phone number, SSN or IRS ITIN, Illinois Department of Revenue account number, and State Sales Tax number).
A list of all dishes and beverages you will serve using a food cart.
Photos of your vending unit (including cargo compartments and add-ons).
Information about the equipment that will be used on your cart.
CFPM Food Manager certificate.
Agreement with the licensed facility where you will service and store your cart, as well as where you will cook the food.
Shared Kitchen User license.

Chicago Food Cart Laws and Regulations

Since food cart rules in Chicago are tough, you should know and carefully follow them so as not to get fined when operating your business. Consider these laws and regulations:

It’s not allowed to cook food at your vending spot and store the dishes at home.
It’s prohibited to use gasoline or propane generators.
All equipment for heating, cooling, or freezing dishes must have a thermometer.
A cart must be made from durable and easy-to-clean materials.
You are fully responsible for the cleanliness and sanitation of your vending stand.

Why Are Food Carts in Chicago Restricted?

Chicago food cart laws and restrictions aim to protect local brick-and-mortar restaurants from extensive competition, assuming that street vendors typically offer more affordable and diverse dishes, drawing a lot of customers.

But why is it illegal to sell freshly prepared food from a cart in Chicago? Such restrictions refer to the health and safety concerns caused by incorrect food preparation techniques, cross-contamination risks, and lack of proper waste disposal systems. All this can result in foodborne illnesses, affecting public health and well-being. Since it’s hard to monitor the operation of every street vending spot, the state authorities decided to restrict them.

Are Coffee Carts Allowed in Chicago?

Coffee carts are allowed in Chicago and are subject to the same laws as food carts. That is, it’s illegal to brew coffee or steam milk on-site – all the beverages must be pre-made in a brick-and-mortar kitchen. Such stringent requirements pose significant financial and logistical difficulties for street coffee vendors, so their number in Chicago is much smaller than in New York, Los Angeles, Philadelphia, and other big US cities.

The Challenges of Starting a Food Cart Business

Regulatory and licensing compliance are not the only challenges aspiring entrepreneurs face when starting a food cart business. There are a few other things you should know about:

Choice of location: food cart laws Chicago prohibit placing food carts in certain city areas. In addition, it’s important to open a vending spot in a high-traffic location to get a consistent customer flaw. The good news is that many carts can be attached to a bicycle, which enhances your mobility.
Weather conditions: Chicago’s unpredictable weather may affect your sales, as customers are less likely to purchase food on the streets in the rain or snow. To get more profits, consider relocating your cart to a more inviting space when the weather turns bad.
Budget limitations: even though food carts are considered a low-budget venture, the initial investment may be pretty high. However, you can still significantly reduce costs if you purchase a used vending unit, rent, or finance a cart.

Opening a Food Cart in Chicago: What Do I Need?

Like with any business, starting a food cart is a lengthy process. Nevertheless, it’s still easier and cheaper than opening a brick-and-mortar restaurant. These are the steps to follow:

Decide on your food cart concept and menu.
Purchase a cart and equipment that meets your vending needs.
Find a licensed commissary kitchen to partner with.
Register your business.
Get the required city of Chicago food cart licenses.
If needed, receive a food cart permit Chicago from the CFD.
Start serving your dishes and invest in marketing to attract more customers.

Consider the Business Plan

Business plan is a crucial resource that will help you turn your startup idea into an appealing and profitable vending spot. It serves as a detailed guide tailored to your goals and operational milestones and contains all the information you need to manage your business successfully. Its key elements are:

Executive summary (the mission of your business, target market, etc.)
Company description (the concept, history, and unique selling point of your business)
Market analysis
Cart menu
Team and management information
Financial calculations (operating expenses, projected revenue, cash flow analysis, etc.)
Marketing strategies

The Future of Food Carts in Chicago

The US fast food industry is predicted to reach 261 billion by 2033, with mobile carts, vending bikes, and motorized trucks having a significant market share. The situation in Chicago is also expected to improve, providing the local food market the diversity it has long deserved.

The most awaited law amendment will probably allow cart owners to cook food on-site, saving them from unnecessary headaches associated with preparing dishes in brick-and-mortar kitchens. Additionally, Chicago food cart laws may allow vendors to sell their goodies in a wider range of locations, as well as use gasoline or propane for cooking.

Conclusion

Starting a food cart in Chicago is not so easy, but it’s worth all the time and effort. Since the competition is not as tough as in other big US cities, you have a chance to attract more customers and grow your business quickly. The future is promising, but do not put your dreams off until a better time! Take the first step towards your success with Ferla – we offer high-quality vending units that meet all Chicago food cart requirements.

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