Foodies are everywhere these days—including on the street. Food trucks, which once were known for easy-to-prepare fare such as hotdogs or doughnuts, have emerged as strong rivals for savvy customers’ food dollars. In several cities, this rivalry has gotten traditional restaurants up in arms, and governments have responded.
In Chicago for example, a food truck owner, serving Asian short ribs and mango lychee, was ticketed for parking too close (within 150 feet) of a retail food establishment. In New Orleans, food vendors have to move their trucks every 45 minutes or face a ticket—even though for some gourmet vendors, setting up takes nearly that much time.
The truck operators consider these ordinances patently unfair. If they want to locate in a desirable spot, they are likely to be near other restaurants. The legislation barring them from staying in hot locations seems like economic protectionism to them.
But restaurant owners point out that food trucks do not have the same overhead costs. Thus, the trucks can undercut the traditional restaurants on price, even while they are blocking parking spots for restaurant customers. As one Washington, DC, restaurant owner complained: “Businesses pick locations and business models around certain peak times. Food trucks can poach that business and then pick up and leave.”
Businesspeople, with their busy schedules, often hop outside their office buildings just to grab a quick bite to eat before heading back to work. For them, the convenience, price, and excellent quality of food trucks suggests little reason to sit down at a traditional restaurant. The question remains whether city governments will allow them to continue this lunch routine.
Discussion Questions
- What macroenvironmental factors have let to the surge of food trucks?
- What kind of decision making do consumers, such as businesspeople on their lunch breaks, engage in when they choose a spot to have lunch?
Source: Sarah E. Needleman, “Street Fight: Food Trucks vs. Restaurants,” The Wall Street Journal, August 9, 2012
Grewal Levy Marketing News 
1. The change in demographics – Generation Y in particular, have a much higher acceptance of Food Trucks. It is a more trendy, time-sensitive way to purchase fairly quality food. The old perception of a food truck used to be very low quality food, and had nicknames such as a “roach coach”. Now, there are trucks that serve restaurant quality items and are much more widely accepted amongst Generation Y.
The Economic situation also comes into play, because it has become much more expensive to operate a full restaurant. Mobile restaurants can operate at much lower costs in some cases, and can also re-locate when necessary to hopefully increase their revenues.
2. In particular, business people focus on time-sensitivity. This is a very quick way to grab a bite to eat. It can also be a price sensitive decision, because it is cheaper to purchase from a truck rather than sitting down at a restaurant.
Increased publicity of food trucks has really improved the public’s perception of them from questionable to legitimate. For example, TV programs like “Next Food Network Star,” “The Great Food Truck Race,” and “Food Truck Revolution” have all featured the supposed value and uniqueness of food trucks, therefore increasing their social status.
Food trucks also have an appeal for young professionals. First, younger people are more willing to try new ventures, and have grown up in an environment where most food trucks are regulated by public health boards. Moreover, customers typically like to choose retailers whose values seem to match their own. The concept of a food truck revolves around timely service, because a truck itself subconsciously gives the idea of movement and speed. Additionally, food trucks typically have smaller staff, or one owner, meaning that they can get to know customers more easily than larger vendors. Thus, the timeliness and personability of food trucks add to its trendiness.
Alot of it IS about convenience, particularly in large cities. We’re all pressed for time during the week so if we can step outside and within walking distance grab some food – I think that’s pretty great.
However, I don’t condone food trucks parking in restaurant or fast food parking lots/spots, thereby blocking potential patrons from going inside. That’s just not fair business, IMO.