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Food Truck Economics

160 点作者 rohin大约 12 年前

14 条评论

c3大约 12 年前
This article looks fairly accurate (for what I understand of the SF market) Things are a fair bit cheaper/easier in Portland. I do actually own a food truck in Portland (as well as a software company).<p>We made a profit on about three different days last year. The other 300 were not profitable :( It would have helped a lot if we had family members working for chips and hugs; paying staff is a huge cost particularly if you want quality gourmet-style food and hard-working employees (we have mostly 5-star yelp reviews)<p>Before our pod landlord decided to shut down abruptly, combined with our chef/my girlfriend getting diagnosed with brain tumors, it was costing about $3k/month (net loss) however that's the awful wet northwest winters driving people away from outdoor pods. Once the warmer weather starts back up again and we find a new pod, we should be in the black, but the business model I'm working on involves a lot of carts with a central kitchen, in clusters in a few cities. If anyone wants to chat about investing, let me know :)<p>We got started for about $20k total including the 'truck' which is actually a trailer that is stationary.<p>obligatory link, <a href="http://theheartcart.com" rel="nofollow">http://theheartcart.com</a>
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tonyb大约 12 年前
Very interesting article.<p>I just bought a food truck (literally 24 hours ago) and while I am as new as it gets in the industry what I have learned so far is in line with this article.<p>We looked into starting a restaurant or event just a commercial kitchen to do catering out of. After much research and searching for a location we changed direction and went with a food truck.<p>The food truck has several advantages to us. Overall the cost is much cheaper. Also if we were to buy or rent a building and put money into building a kitchen that would be a sunk cost that we could never get back. If we outgrow the truck or decide this isn't the business for us we can sell the truck and get our money back.<p>A lot of the work does go into figuring out the health department stuff. Ohio is a lot more friendly than some other states but is still an area we have to dedicate a significant amount of attention to.
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phreanix大约 12 年前
I used to run my own foodtruck. I manage one now as well as a restaurant, so I have a bit of perspective from both sides of the aisle. Some of the numbers quoted don't really make sense to me, but maybe it's a location thing (I'm in LA, where the food truck industry is plateauing out). 200 orders for lunch is very, very rare here.<p>Our local food truck association actively addresses regulations that are unfair to foodtrucks on a city by city basis. Most have to do with the local business community trying to prevent foodtrucks from competing with b&#38;m restaurants, usually by getting law enforcement to harass trucks with citations, tickets, whatever they can throw at you.<p>Do I see the foodtrucks eventually disrupting b&#38;m's? Not likely, but I do see an impact. B&#38;M's have had to be more nimble and creative to keep up, which ends up being a good thing for customers. I have been presented with business models that involve franchising our truck and concept across the country to different groups (ex-military most recently, from what I hear about the Grilled Cheese Truck) as a way to help develop small businesses. This is where I mostly see the similarity to startups. Foodtrucks are more accessible, financially and creatively. One can literally go from concept to launch in less than a month. Try that with a b&#38;m restaurant. The thing is, I also see a high failure rate. (foodtrucks have been dropping like flies here in L.A., mostly during winter). Other similarities or takeaways, which also apply to most other business:<p>1. Know your market well. Cities have different regulations, population densities, competing restaurants, etc. If you don't have a very very very good awareness of where the bulk of your business will come from, you're doomed. I've seen trucks sprout and die within a month, clueless operators and the inability to pivot.<p>2. Know your product well and how to sell it. I've seen employees stutter through a dish description, with the potential sale walking away to the truck whose operator can spitfire all the ingredients of each of his dishes without looking up from the slider he's working on.<p>3. Streamline your operation to deliver your most important product as fast possible and as perfect as possible. Lunch crowds can be harsh. These are people who have limited time and limited budget and (depending on location) almost unlimited choices. If you're the truck who took 20 minutes to serve a rice bowl, you can trust that person is never going back and would most likely drag all their friends to another truck the next day.<p>Simple 'rules' but you'd be surprised how many operators can't figure this out.
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protomyth大约 12 年前
This temptation of government to limit the number of X (be it food trucks or cabs) is one of those things I wish would get addressed. It seems more and more we need a small addition to the US Constitution dealing with economic freedom.<p>[edit for autocorrect of addition to edition]
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eksith大约 12 年前
Every time I see a story like this, I'm reminded of that scene in the Fifth Element with the flying car/boat Chinese delivery and (I'm guessing) mobile restaurant.<p><a href="http://www.commons-sense.net/blog-04/files/2011/05/Picture-33.jpg" rel="nofollow">http://www.commons-sense.net/blog-04/files/2011/05/Picture-3...</a><p>Still bitter about not having flying cars yet, but I don't necessarily see the mobile service as anything bad. It's just the natural progression of the food cart, some of which, are exceptionally good. In New York, there's a Halal cart on 53rd and 6th and everyone from construction workers to Wall Street types wait in line... and it's all worth it!
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jsmcallister大约 12 年前
Surprising numbers in this write-up. Still does not fully explain why most food trucks are charging restaurant-level prices for their dishes. Yes, the overhead is still expensive but at some point, the consumer has to see the reduced overhead filtered down into their prices.<p>If it's not faster, cheaper or more convenient than the to-go menu at a traditional restaurant, it sounds like "menu buzz" is the only thing keeping most of these trucks in business. How long can that last?
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Retric大约 12 年前
Adding things up it does not look like food trucks are really cheaper day to day. "The rent of their restaurant was $4,500 a month."<p><i>Bobby’s family borrows kitchen space in a friend’s restaurant, but commissaries complete with a kitchen, waste disposal, and a parking space run up to $1,000 a month.</i> plus <i>Another expense, for trucks that sell at places like Off The Grid, is the cut they owe to the organizers. Off The Grid charges 10% - something of an industry standard. They also expect vendors to sell a minimum of $1,000 of product over the course of a lunch or dinner period. So if a truck sells with them for lunch and dinner, 5 days a week, they will pay the organizer a minimum of $1,000 per week.</i> which could easily be 6+k in a month.<p>However, I suspect the available locations are far better.
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rootedbox大约 12 年前
A couple years ago I was privy to a conversation Danny Bowien (mission chinese) was having with a journalist at his restaurant. Danny had already had been getting buzz; and Mission Chinese was about to blow up.. The conversation led to food trucks. What Bowien had to say about the economics of them is that.. They really aren't worth it. You have to purchase a vehicle.. out fit it.. and then you still have to rent at a commissary for food prep + clean up. Plus if you really care about food.. You aren't able to make the best product in a van. Paying rent on a space that has already been outfitted as a restaurant will come out cheaper(depending on decore), and allow you to make a better product.
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rektide大约 12 年前
<p><pre><code> The cost of starting a high quality food truck ranges from approximately $50,000 to $150,000 or more, and the process takes several months. The biggest cost is the truck itself. Bobby’s family bought their truck used for $37,000. </code></pre> As the first wave is joined by a second, and now third wave of food trucks in my area- a fast two year growth- I am now <i>super</i> excited to see many of these businesses go under- with hopes that those trucks can then be picked up by the next crew who think they have a good idea. There's a lot of +100k$ trucks around, I'm looking to see a lot of them again- just, reincarnated as new businesses.
hayksaakian大约 12 年前
One of the best articles on the topic I've read. I really love all the numbers included. I feel like I actually learned something by reading this, vs having some emotion evoked.
lifeisstillgood大约 12 年前
This still seems insanely high priced for a suck it and see means to find if there is demand for a food and brand in your area.<p>I would like to ask if one of the (surprisingly many - gotta love HN) food truck experts could comment on<p>1. Stick to simple one dish in a huge wok approach as I have seen at many festivals - warm, usually tasty and easy to dole out fast.<p>2. Start on private Market / land with a marquee or painted shed that came in transit van.<p>It just seems an enormous start up cost for cooking rice and peas.
whather大约 12 年前
I wish we had better food trucks up here in Seattle. Mostly greasy Mexican food and hotdogs. Portland is the King of food trucks in the NW and I wish they would come up here more often. Fresh oysters, mean pork sandwiches, etc.
Domenic_S大约 12 年前
&#62; <i>$120 to fill up the truck’s enormous tank</i><p>That's like, 30 gallons. Not that big.
babesh大约 12 年前
The landlords sound like the social and app platform owners and the restaurants like app makers.