Food Truck Facts:
Food Trucks Are Growing Into Brick-And-Mortar Businesses
Food trucks are small business incubators and are increasingly growing into brick-and-mortar restaurants. Many talented chefs with great concepts, but without enough money to open their own restaurant, opened a food truck to bring their cuisine to their communities. In our area, dozens of food trucks have grown into brick-and-mortars — and many brick-and-mortar businesses have opened food trucks to expand into new markets.
Food Trucks Are Creating Jobs
In addition to working with other small businesses such as commissary kitchen owners, fire service providers, mechanics, bookkeepers, and local food purveyors, these food truck small businesses create new full-time jobs right here in our community.
Food Trucks Are a Great Use of Public Space
Food trucks are one of the most efficient uses of public space. The same parking space that can be used by just a few people in an afternoon can be used by more than 100 people having lunch from a food truck. And by bringing food directly to the people, food trucks help reduce congestion.
City Governments Sometimes Make Bad Laws
As the popularity of food trucks continues to grow in Washington, city governments all around the state have been updating and/or creating new codes specifically for mobile food vendors. Some cities have done a fantastic job, and some have not. A frequent concern expressed by some city council members is that food trucks will be competition for existing brick-and-mortar restaurants in their city. Additionally, it’s not unusual to have a couple of local restaurant owners testify before the city council to express concerns about having to compete with food trucks. (A few other completely unwarranted concerns by restaurant owners are discussed below in the “Food Truck Myths” section including: food trucks not paying their fair share of local taxes, business licenses, fire permits, or undergoing the same level of scrutiny by the health department).
The role of city government is to serve the interest of the citizens of that city, not create laws specifically to protect one type of business from having to compete with another type of business. Protecting businesses from free market competition is inappropriate and arguably illegal, and has triggered lawsuits all around the country. Limiting the food options in the city, in order to protect brick-and-mortar restaurants, is a betrayal of the will of the citizens. Obviously everyone agrees that the food trucks would be very popular, or there wouldn’t be any concerns about competition with restaurants.
At some point, city councils must decide if they want to obstruct perfectly legal businesses just to calm the unwarranted and overly-hyped concerns from restaurant owners, or bring their city into alignment with most every other city in the state and offer their constituents a wide range of creative and delicious dinning options.
Food Truck Myths:
#1. Food trucks hurt the local restaurant industry: FALSE
Food trucks help draw people to restaurant and shopping areas and increase the amount of foot traffic for all surrounding businesses.
For example, Houston restaurants have seen an increase in sales because nearby food trucks attract people to the area, prompting restaurant owners to ask for laws to make it easier for food trucks to operate. In Washington, DC, four new brick-and-mortar restaurants have opened across the street from one of the city’s most popular food truck destinations, Farragut Square, showing that all the area’s businesses are benefiting from the increased foot traffic that food trucks draw.
#2. Food trucks are unsanitary: FALSE
Food trucks are inspected by the Department of Health several times a year and must follow all the same rules that a brick-and-mortar restaurant do. Food trucks are miniature, health department-approved commercial kitchens on wheels complete with a three-compartment sink, hand sink and fire-suppression system. In addition, most food trucks operate from commercial brick-and-mortar kitchens that are also regularly inspected by the health department.
#3. Food Trucks Are Unregulated: FALSE
Food trucks are heavily regulated. In Washington for example, food trucks are first approved by the Factory Assembled Structures Department of Labor & Industry, licensed by the state and each city, and must be inspected by the Department of Health regularly. Food truck employees must also study and pass an exam to learn the best food safety practices. Food trucks must also pass an inspection by the fire marshal.
#4. Food trucks don’t pay taxes: FALSE
Food trucks pay all the same business and payroll taxes that brick-and-mortar restaurants pay and generate sales tax revenue for cities.
#5. Food trucks are a threat to public safety: FALSE
Well-used streets are safe streets, and food trucks help draw people to restaurant and shopping centers and contribute to an area’s vibrancy. And because food truck owners are outside they become familiar with an area’s routines and regular residents and workers, becoming another set of eyes on the street to recognize unusual activity.
#6. Food trucks leave their trash behind: FALSE
Food trucks take their trash with them. Most food trucks operate out of health department-approved commercial brick-and-mortar kitchens where they prepare recipes, receive deliveries and clean and dispose of trash and wastewater.
#7. Food trucks create harmful sidewalk congestion: FALSE
People instinctively form single file lines at food trucks alongside the edge or a sidewalk to allow others to pass by. There is no evidence that food trucks prevent pedestrians from walking down a sidewalk.
#8. Food trucks have an unfair advantage over brick-and-mortar restaurants: FALSE
Food trucks can have lower costs than brick-and-mortar restaurants, but they also have a fraction of the amount of sales, and need to buy a business license in each city they service. Because food trucks operate just a few hours a day they serve a fraction of the amount of customers of a brick-and-mortar restaurant, which is open all day. Brick-and-mortar restaurants also have larger menus, tempurature-controlled dining rooms, more storage space, and can stay open in most all weather conditions.
#9. Running a food truck is an easy way to get rich quick: FALSE
Just like running a brick-and-mortar restaurant, running a food truck is extremely hard work with narrow profit margins. Food trucks must purchase a license in each city they service, a health permit in each county, a fire permit, public parking permits, commissary kitchen rent, special event fees, and more. But for food truck owners, just like brick-and-mortar restaurant owners, the reward of creating a business and sharing the food you love with people makes it all worth it!
Benefits of a Street Use Program
• Economic vitality — Street-food vendors help “brand” a neighborhood by attracting foot traffic to commercial districts that increases sales and creates a more vibrant retail business climate. By offering low-cost, culturally-diverse foods, street-food typically complements rather than competes with sit-down restaurants, and gives people more reasons to frequent local shopping districts.
• Festive, pedestrian-friendly streets — Food vendors bring positive activity to the street and add a festive, people-oriented feel that can improve public safety.
• Expanding the diversity of foods — In many cities, street food vendors provide a window into diverse cultures, introducing people to new foods and to the pleasure of spending time in the city’s public spaces.
• An entry point to owning your own business — Food vending can be an ideal first business. For a modest investment, it helps an entrepreneur develop a track- record and build loyal clientele. For many immigrant and refugee communities, food vending offers a point-of-entry into the economy and a way to learn the food-service industry.
• Increase access to healthy, local food — Street-food can provide readily accessible outlets for locally-sourced, healthy foods providing additional points of sale for local farmers.
Other Information & City Guidance on Food Trucks
Municipalities can contact us for industry “Guidance on Private & Public Land Use”
Cities That Push Out Food Trucks Are Only Hurting Themselves - Institute for Justice: https://ij.org/cities-that-push-out-food-trucks-are-only-hurting-themselves/
Study Shows Food Trucks Not a Threat to Restaurants - https://mobile-cuisine.com/off-the-wire/study-shows-food-trucks-not-a-threat-to-restaurants/
Seven Myths and Realities about Food Trucks.
Harvard's Ash Center, wrote about the challenge cities face in” On the Go - Insights into Food Truck Regulations in US Cities.”
Food trucks typically are found to complement brick and mortar restaurants by creating more dining options at more times, transforming a place into a dining destination. In addition, the line between food truck and brick and mortar operators is blurring. Find the “Food Truck Truth” report here.
Food Truck Freedom - How to Build Better Food Truck Laws in Your City
