Food Trucks: Another weapon in the food cluster arsenal

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Food Trucks: Another weapon in the food cluster arsenal

 

Move over urban gardens. It’s food truck time.

The latest rage sweeping our cities is the food truck movement. In formerly barren neighborhoods, food trucks are popping up left and right. In downtowns and in neighborhood squares, these trucks serve quick, convenient food for passersby.

So what’s behind the movement?

In some cities, the cost of doing business has grown so high that it prevents new companies from entering the market. By some estimates, it costs an average of $275,000 to open a new restaurant; a food truck can cost as little as $10,000 to get up and running.  Given the tight credit market over the past few years, it takes more up-front capital to start new businesses. This makes the food truck market easier to enter than the traditional restaurant business.

Once in operation, the food trucks are a way to introduce consumers to new foods. From vegetarian-only vendors to Thai-food vendors, the trucks draw people from the traditional fast food joints they might otherwise frequent during lunch. As food truck licenses increase, new options abound. Food trucks serve (pun intended) as vehicles for cultural dissemination.

But food trucks are certainly not without their critics. Some argue that food trucks operate like the Wild West— there is no regulation, food trucks can be unsanitary, food trucks, in some instances, unfairly avoid paying taxes or that food trucks leave premises cluttered and dirty upon their departure. While these claims are certainly valid, each can be solved with the appropriate regulations.

The biggest complaint, one that cannot necessarily be solved at City Hall, is that food trucks take away business from brick and mortar restaurant locations. These critics often fail to point out that food trucks offer different services than sit-down restaurants. First, those who frequent food trucks may not have the time to sit down for a full meal during lunch. Nowadays, who really has the time to take an hour break from lunch? And if you do have an hour or more, perhaps you’re wining and dining a client, you’re certainly not going to take them to a food truck; you’ll do a full sit-down meal.

Second, many of us visit restaurants for the atmosphere or to catch up with old friends. This is an amenity that food trucks cannot provide. Third, because food trucks are regulated to prevent alcohol sales, those looking to unwind with a cocktail will still always head to their favorite local restaurant or bar.

Even if one were to overlook these differences, food trucks are not necessarily bad for local businesses. In a recent Huffington Post article, the author notes that food trucks are a win-win: for small businesses, for retail establishments, for bars and restaurants, for the city, workers and for residents. How does he reach this conclusion? He explains that food trucks are part of a larger small business ecosystem that drives overall economic growth—the more growth, the more everyone benefits. Well-known food trucks with large followings can attract customers from outside the area, and therefore draw attention to surrounding retail and restaurant locations.  

If we look beyond the actual purpose of food trucks (to serve customers quick, easy foods), food trucks have broader implications in our cities.   

Food trucks tend to occupy underutilized lots. In Boston’s South Station area, as many as three food trucks are open daily. The lot would otherwise spend most of the year unoccupied (with the exception of the summer farmers’ market and occasional Occupy protesters). In Washington, D.C., the Franklin Square area has turned into a gather place as a result of food trucks. And in Austin, the number of mobile food vendors has more than doubled in since 2007, turning unused space into a foodie’s heaven. These food trucks active streetscapes; they encourage people to visit parks and promote commercial activity.

Food trucks also promote small business growth. The trucks are a form of entrepreneurial startup. Given that small businesses account for over 99% of all U.S. companies and are the drivers of job growth, it would be irresponsible for cities to inhibit their multiplication. Food trucks in Boston have created over 72 new jobs in the last couple of years, whereas Detroit prohibits food trucks. Almost anyone will tell you: Detroit should be supporting any job growth opportunities possible.

Food trucks are just another tool in the repertoire of the growing food cluster. From production, to distribution, to retail and consumption: the food cluster offers significant opportunities for inner city job growth and economic development.

How is your city proactively leveraging the beneficial impact of mobile food vendors?

Good, succinct article on the benefits of the food truck industry. Boston is still pretty new at this, and still evolving. Besides South Station, trucks have been popular clustered outside City Hall. Generally, having a few trucks together has been beneficial and helps establish that destination attraction for people. Also check out Off the Grid in San Francisco and the SoWa Market in Boston to see how trucks and other vendors come together to create a new urban destination.

By Steven Leibowitz on 02/21/2012

We do know that having grocery options is essential to neighborhood building and that neighborhood building is essential to vibrant, mixed use places (live, work, play). There’s also the business-begets-business factor that would point to the more the merrier for existing businesses concerned about turf and frightened by competition. All leading me to say the regulatory approach should start from a stance of encouragement.

By Patty Cantrell on 02/21/2012

Amanda food trucks are definitely a boon here in Tampa. Food trucks, street vendors and live music along Franklin Street are having positive impacts on shop owners. As an economic development this proving successful.

By Andre Satchell on 02/21/2012

Metro Louisville government (one of your former clients, in fact) is supporting food truck initiatives for these reasons and has passed new regulations. Metro Economic Development would be the subject experts on this.

By Steven Spalding on 02/21/2012

Hi Steven - thanks for the comment! Do you know what some of those regulations were? We would be very interested in learning about them. I wonder if there are any national “best practices” for dealing with the rapid growth in food trucks.

By Amanda Maher on 02/21/2012

I suggest you contact Theresa Zawacki, Executive Administrator for the Metro Louisville Economic Development Department, 502 574-2657 theresa.zawacki@louisvilleky.gov. She oversees the Mayor’s food-related initiatives, is an atty by professional training so should be able to assist you. I am just aware from reading news articles. The new Mayor has put great emphasis on his “Food Policy Council” and inner city focus.

By Steven Spalding on 02/21/2012

love the concept of food trucks and agree with the rationale for how they can contribute to economic development. we used to call them pie carts here in NZ and they were caravan’s and usually stationary and the food was pretty ordinary. We have seen the rapid growth of coffee carts and I am pretty sure that it is only a matter of time before food trucks get a hold here in Wellington. quality ones can only add to the vibe of the area…

By Jason Leung-Wai on 02/22/2012

In Columbus, Ohio, there is a non profit CDFI and Micro-Lender—- ECDI—- that has used the food-cart business as a way of promoting entreprenership, specifically by providing training for vendors, providing micro financing, and technical assistance. ECDI has purchased food carts for lease to ventors and they are now developing a preparation kitchen for use by all of their customers.

By Mark Barbash on 02/22/2012

We unfortunately dont have in our CBD’s [in Cape Town]. They are mainly at fleamarkets near office parks and the likes.We do however have a lot of hawkers selling a wide range of fruit & veg and could even buy a saddle off the street

By Stephen Michael Lillienfeldt on 02/22/2012

Many avid travelers learn to appreciate street food as a true adventure. Perhaps this “movement,” if allowed to continue, will become America’s street food modality. In my opinion, this is one case where our desire to highly regulate land use may not serve the vitality of our cities well.

By Guy Greenlee on 02/22/2012

We’ve had several food trucks pop up in Wilmington, NC this past year… from bar-b-que to grilled cheese sandwiches. They definitely add character and are great alternatives, adding local flavor as opposed to other mass produced quick food.

By Jonnie Sharp, LEED AP on 02/22/2012

The tradeoffs mentioned by Guy and other writers goes to the balance that Louisville tried to strike in its new regulations . . . the protection of public health and the rights of adjacent regular property owners, versus the entrepreneurial innovation and vitality that the truck movement represents. . . interestingly two of our most successful restaurants started as trucks, that then migrated to permanent locations.

By Steven Spalding on 02/22/2012

The argument between food truck operators and storefront restaurant owners is the same as that between pushcarts and kiosk owners and in-line retailers in shopping malls. There are valid points on all sides that are crucial to survival of a business in each case. I prefer to see food trucks in areas where there is foot traffic but food is hard to come by. I also prefer food truck operators that are involved with keeping the crowd of people they attract lined up so as not to block a busy downtown sidewalk.

By Sarah Wenig on 02/27/2012

For an extreme (and slightly humorous) version of the point Sarah makes, go to Venice Beach, CA—and if you can, listen to the NPR story about the fight between the build-in stores that pay property taxes on one side of the street, versus the “street vendors” and such who pay no taxes, on the opposite side toward the beach. Problem is, the sometime unrully and certainly unorthodox “street” people (who compete for premium locations) add the entrainment that draws the tourists. So they appear to have stalemated.

By Steven Spalding on 02/27/2012

Unrelated to food trucks specifically, but Palm Desert CA appears to have worked out an acceptable solution regarding street vendors. They have a thriving “street fair” located on the parking lot of their local community college. It is regulated as to days and hours and vendors have to take down their booths each night of the fair. I have heard that downtown merchants (all located many blocks away from the street fair) still complain about the competition. However, given the nature of the street fair merchandise vs the downtown shops, it doesn’t appear to me that their is competition for the same products types or values. The street fair does include food vendors, but they are very event oriented vendors rather than purveyors of meals.

By Guy Greenlee on 02/27/2012





BY Amanda Maher on February 20th, 2012

TAGS: food | cluster | economic development | jobs | small business | cities | retail

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