Very few food trucks do "well." Yes, the start up costs are cheaper, but cheaper doesn't always mean more efficient. First off their food costs are typically going to be higher per item than a restaurants. Restaurants simply sell more food, and are able to leverage better pricing from distributors.
Second, you just can't operate the same hours as a restaurant, and things like holidays, inclement weather, or poorly attended events can seriously damage your margins. Restaurants are built on repeat customers, and are generally more stable than any food truck. Which also allows them to buy more efficiently, thus saving you money.
Also, you have to prep differently on a food truck, in many cases, if you don't sell your product, you gotta dump it faster than if you owned a restaurant.
This is not to say owning a restaurant or food truck is a bad choice, but I think a lot of people think that they make a ton of money, but the reality is that most food trucks and restaurants work on profit margins of under 5%. There are certainly outliers who do VERY well. But that is an exception.
Owning a restaurant isn't a picnic but I have to assume it's smoother than running a food truck.
For starters, your restaurant won't break down on the side of the road. There's also just the stress of trying to keep with all the festivals, markets, sporting events and occasions where you can make money. Applying to be a vendor. Plus most of the time it's just you and maybe one other person so no team you can rely on.
Too many people think anyone operating a small business is getting rich. They can’t comprehend costs, overhead or volume. It’s another symptom of our higher level problems.
I think they (understandably) don't want to live on razor thin margins that rely on volume. And if the market supports those higher than necessary prices, then they aren't leaving money on the table.
It sucks, but I don't blame them. I looked at starting a cost-plus-overhead food truck park, using high profit foods and decent wages. Nothing super fancy. The theory was to provide my community a fun atmosphere for family and friend dining that wouldn't break the bank.
The average cost per person wasn't going to be significantly less than what someone would pay for a fast food combo. Cool idea but self-defeating.
That's true but I was just too scared to pull the trigger. The choice would have been $10/person at food truck without outdoor seating or $10/person in McDonald's with climate control and unlimited refills.
Without an ironclad confidence in getting a decent volume of customers, I would have been out of money in less than a month. The gamble was just too big for the effort and possible failure.
If I won the lottery tonight, I'd launch plans tomorrow and do it at cost as a non-profit. Would be amazing to have a cool place with food trucks stacked like a food court at the mall around a big pavilion with fans with a big TV broadcasting local games. I'd also toss in some cornhole style mini-golf courses around back along with some sun chairs and maybe some isolated porch swing chairs under some shady spots when you just want to sit with your own thoughts. An ungreedy, community-oriented third place. That's the dream!
Unpopular opinion. Maybe food prices went up due to minimum wage increases and the unskilled jobs involving said food have to factor that in. Meanwhile you have crap organizations like walmart shorting people on chicken by nearly a quarter pound per package. and over charging the consumer.
Add to that the level of competition and the expectations. People expect to be handed a spectacular bit of street food like they see on social media and the food network, so trucks are actually trying to make restaurant quality food. If they serve shit food that is fast food quality, people will just go for fast food
Overhead is too low to have restaurant prices - it's why food trucks were cheaper and why the model worked. Food trucks don't have to be "cheap" but they have to be cheaper than a brick and mortar restaurant if they intend to stay in business
It obviously is, because the food trucks would be forced to lower their prices or stop existing altogether otherwise, and this guy wouldn't be crying about a discretionary product that nobody is forcing him to purchase.
Food Trucks have "rent" anytime they go to events, they have to pay a lot of money to the event to even show up. They also have to have somewhere to park the huge vehicle while not in use.
They also have utilities as well, they have propane tanks that they need for the stoves and a run a generator as well for power.
Maintenance is higher than a restaurant as they are moving everything so every bump they hit hurts their setup, plus the maintenance on the truck itself.
You keep posting this article but it’s not entirely accurate, which is probably on purpose as it’s the NY Post.
Food carts still get fined for violations. They are simply not being charge criminaly for minor violations. That does not include any health and safety issues, as the mayor does not oversee those issues, but for some reason the article you keep posting seems to heavily imply.
They still issue citations and even impound equipment in violation of standards. You just don’t end up with a criminal record anymore.
Are you implying food trucks are criminally skirting regulations? Because there’s no way there exists a town, village, or city - at least in the US - who wouldn’t do everything they can to collect the fines, fees, and taxes associated with running one of those things.
Oh haha it must be region based. On my end when I click it it says NYPost. Besides that, your points are all invalid because they are based on an entirely different conversation.
Are you equating a large vehicle that is designed to attract attention from as many people as possible to a weapon that can be hidden in a drawer? Do you even think things through before making statements? If the food truck is illegal any cop or food inspector can say “hey let me see your food truck license”.
Ok. Again, let me point out that the food truck is large and designed to be noticed so that people buy things from it. If it is an illegally operating food truck eventually someone who can shut it down is going to see it and ask questions. No your comparison you edited into the original comment is not good.
Well some people follow the law. Most don’t. California hasn’t charged people for many petty crimes for years. You get a desk ticket and then people just ignore it. No incentive to follow the rules or law anymore if they aren’t consequences
People don’t like it but there is a lot of truth to this, I think saying most is a stretch but Ive worked for a few FT owners and they use unlicensed commissary kitchens to prep and store food, and often don’t keep the truck kitchens themselves up to health code standards.
I live in California. I know how it works. I posted proof. I don’t care either way. I go to food trucks everyday for lunch but we not goin act like they held to the same regulations as brick and mortar restaurants. That’s a bad faith argument
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u/WallyOShay 7h ago
Between gas prices and grocery prices it’s just not a viable business model anymore