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Choking the competition: Food trucks vs. restaurants

Choking the competition: Food trucks vs. restaurants

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The food truck craze shows no sign of slowing down as the economy and technology alter the way Americans live and do business.
The food truck craze shows no sign of slowing down as the economy and technology alter the way Americans live and do business.

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Categories:Types, Research
Published by: American Enterprise Institute on Mar 04, 2013
Copyright:Attribution Non-commercial

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01/07/2015

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choking the competiton

Food trucks vs. restaurants
The food truck craze shows no sign of slowing down as the economy and technology alter the way Americans live and do business. The food truck industry has been growing at 8.4 percent per year since 2007, and analysts predict the industry will expand at a rate more than three times greater than GDP growth. Nonetheless, while it still costs less to get into the business, food truckers represent a fraction of the restaurant industry.

yum!
$ 1.4 billion $660.5 billion

2012 revenue
15,523 13.1 million

No. of employees
$70,000-$80,000 $100,000-$300,000

start-up costs
With food trucks expected to increase their market share from 1 percent to 3-4 percent of restaurant sales of the next five years, food truck vendors are going to have to compete with established storefronts now making their way into the mobile business.

street traffic

In a 2012 survey,

26%

of restaurant chains expressed interest in rolling out food trucks of their own.

median cost of food and beverage

27%

32%

CAFE

yum!
median cost of salaries

18%

34%

As the industry grows, so do myriad regulations. An estimated 2,000 state and local agencies are now responsible for food truck inspections. Primary operating costs, including insurance, licenses, fuel, repair and maintenance, among other expenses, make up 26 percent of food vendors’ costs. Cities have also favored traditional restaurants over food vendors in applying new regulations on the industry.

washington dC

food truck fights
Seattle

Las VEGAS

Vendors are supposed to vacate their spot once their line of clients clears.

Food trucks are not allowed to park near sports stadiums or primary schools.

baltimore

Food trucks must park at least150 feet from a retail food establishment and can’t park for more than four hours a day on a public street.

los angeles Vendors must park
their trucks within 200 feet of a bathroom where workers can wash hands.

Mobile food vendors must change locations after 45 minutes in one spot.

new orleans

Portland

Portland Minneapolis

Jackson
Milwaukee Chicago Sacramento San Francisco Salt Lake City Denver Indianapolis St. Louis Las Vegas Los Angeles Memphis San Diego Phoenix Birmingham Nashville Columbus Cincinnati Richmond

Boston Providence New Haven New York Cleveland Pittsburgh Baltimore Washington DC

Raleigh Charlotte

Atlanta

El Paso

Dallas Austin San Antonio Houston Baton Rouge New Orleans Miami

Sources: National Restaurant Association, Smartmoney.com, SBCD.net, The Wall Street Journal, FoxNews.com, Foodtrucklaws.com

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