Food truck: a
profitable business?
The rise of food trucks
Over
the past few years the mobile food industry has been growing exponentially and there
has been a rise in food trucks around the world. However we can wonder if food
trucks are really a profitable business. Is the mobile food industry an Eldorado
for new chefs?
Food trucks are a culinary trend.
They are suddenly everywhere. As startup capital is really low in mobile food industry,
a lot of chefs have decided to launch their own businesses. These new comers are
welcomed by a growing number of customers who followed them around the cities through
their broadcasting on Facebook and Twitter. These customers are generally attracted
by this practical and fast way of eating, perfect for busy people in the big
cities. These
food trucks often described as “gourmet trucks “offers a large range of quality
products (meat from the best farms, organic fruit and vegetable) with the
best value for money. Though most of these trucks charge more than typical hot
dog or taco trucks regarding the quality of products they offer, their meals
generally cost less than comparable sit-down restaurants.
The true cost of the food truck business
Opening a food truck, nevertheless,
doesn’t seem as easy as it might be and food truck operators face more and more strains.
Low startup costs and significant number of customers may appeal to someone
searching for a new business opportunity. However operating a food truck may
prove to be a difficult task. First of all initial startup cost may be lower,
but food trucks come with their own expenses. Indeed in addition to getting a truck, insurance,
employees and food, chefs need to pay a vending permit (which could exceed $600 in big cities) or others
costs such as gas costs, equipment maintenance costs. In addition to that, the mobile food industry
is highly reliable on the weather. Bad weather and freezing temperatures can
easily take a chunk out of the profits. Finally for a few years food truck
operators face increasing competition and stricter parking regulations. Location
is one of the most important factors in the food truck business. As food trucks
have gained attention the competition for plum spots has got even fiercer and difficult with the implementation of stricter regulations.
The mobile food business
can be rewarding but it also implies lot of planning in order to prevent unexpected
and unforeseen events from happening .The old adage, then, “failing to plan is
planning to fail” seems never more true than in food truck business.
RAO.S
As you said, Food trucks are a trend. I think it will be like this "pasta fast food restaurants" trend it used to be in France a few years ago. There was a lot of hype but within a few months nobody's talked about it anymore.
ReplyDeleteFor me, this type of "restaurant" is not the future, at least, not in France.
Thierry H.
I totally agree with you, I also think food trucks are just trend. Simply because it first appears as a profitable business with low startup capital, people rush to open that kind of restaurant. But as there are many hidden fees I tend to think that the number of food trucks will decrease in the future.
DeleteRAO.S
I didn't know about the existence of those "gourmet trucks" with quality products. Actually, I don't assimilate food trucks as quality food so I agree that this kind of business might not be the best for the future in France but I do understand how it might be a profitable business in American countries for example. It seems more like an alternative to other fast food restaurants such as Mcdonalds.
ReplyDeleteActually in the first place these food trucks set themselves apart by claiming that ,contrarily to fast food such as McDonalds, they make good quality food but actually, for a few months, these food trucks have been increasingly challenged by customers. Many customers find the food quality of these food trucks is not so “gourmet” and don’t justify a higher price.
DeleteRAO.S
Food trucks are popular in French Polynesia, especially in Tahiti where there is a special place dedicated to them and their business.They don't specialise in "Gourmet food" but in chinese and local food.They are very popular and successful there. But I don't think it would be the same in France in the long term. It could maybe work in the United States where people are more used to eat outside and a lot.
ReplyDeleteVinitha W.
It’s true that food trucks might not have as much success as in The United States where people are used to eat quickly outside but it’s also true that French employees seems to have less and less time during lunchtime( mostly because a major part would rather eat quickly not to lose time in order to finish the day sooner). Therefore food trucks might not be the future in France but fast food restaurants can still be profitable.
DeleteRAO.S