How Food Trucks are Saving Restaurants and in Danger
The COVID-19 pandemic has hit different industries differently. The food industry, in general, has been hit especially hard and food trucks are no exception. Some restaurants have reported up to a 90% loss in revenue due to shutting down on-premises dining. Similarly, food trucks have had business slow to a crawl.
The usual diners that frequent food trucks such as local workers and foodies have either been relegated to working at home or being stuck inside. Other major sources of revenue for food trucks like festivals, sporting events, night markets and food truck gatherings have dried up as well. Even the most well-known food trucks have reported revenue losses up to 95% due to the pandemic.
The losses felt in the food truck industry are even more devastating as most are small family-owned businesses. “Food trucks rely on people to gather. That model went away pretty quickly,” Ross Resnick, founder of food-truck-booking company Roaming Hunger.
According to the Orange County Register, almost 80% of gourmet food trucks stopped operating when the pandemic hit. Gourmet food trucks are classified as food trucks that generally stay in one area to build up a large following as opposed to other food trucks that go where there are crowds to capitalize on.
The owner of Asadero Chikali, Jose Pérez, decided to close his food truck for the duration of the pandemic rather than try and rely on third-party delivery apps like Uber Eats and Doordash.
“The problem with the delivery apps is that they are limited in their range, and my customers come from all over, plus, I can’t trust them to deliver my food the way I want, plus they take 30%,” Pérez told Eater.
Food trucks are allowed to still operate in most states as long as follow social distancing and all other health and safety guidelines
But the biggest strike against food trucks is that many of them do not qualify for federal relief aid.
“I would not be surprised if more than half go out of business permanently,” sighs John Ou, owner of LA’s The Fix on Wheels.
Business Picking Up
Some food trucks have found that business is actually better during the pandemic. Food truck So-Cal Tomal has seen a bump in sales due to other restaurants being shut down.
“At the beginning, we were a little scared not knowing how it was going to go when they first did the first shutdown,” owner Favien Alex Ruiz said. “After the shutdown of the full-service restaurants, our sales went up a little bit. People want to just pass by, pick up and go.
The pick-up model that many restaurants had to adapt to is a built-in perk of food trucks. While many set up outdoor seating for diners to eat, most rely on diners picking up their food and leaving.
Additionally, many believe food trucks are more hygienic than brick and mortar restaurants due to the generally contactless exchange and transparency of being able to see workers cook and serve the food in front of diners.
“There’s no contact. There’s no, like, you know worrying about. They’re safe in there and I know my food is safe so that’s how I feel about it,” said a Bakersfield resident.
“To the community, you know, they’ve been really good supporters already of us, but if they can support any of the food truck vendors that would be great because it’s not easy being a food truck vendor,” said Ruiz.
Ruiz also recommends restaurants to invest in food trucks if they can. He plans to open a second food truck to capitalize on his momentum.
Other food trucks have pivoted to find their success.
LA’s Coolhaus ice cream truck launched a “Bodega on Wheels,” where people can pick up pantry staples, produce, ice cream or alcohol.
Other food trucks have worked out deals with essential businesses to use empty parking lots to feed hungry essential workers.
The California Department of Transportation also started to allow food trucks to apply for permits that would allow them to set up shop at rest stops.
The trucking industry continues to be an essential part of the supply chain. With online ordering way up and retail locations like supermarkets in dire need of stock, truck drivers have been working beyond capacity to get goods where they need to go. But, with restaurants shut down across the US it is getting harder for truck drivers to get a decent meal as they drive across state lines.
A representative of the California Department of Transportation says the move is meant to provide hungry travelers and truck drivers with a hot meal and creates new revenue for food trucks.
The executive order, N-52–20, signed by governor Gavin Newsom, states that “Caltrans is authorized to develop and implement a process to issue and administer temporary permits allowing commercially licensed food truck vendors… to operate and sell food in designated safety roadside rest areas.”
The original order was set to expire on June 16th but its success makes advocates confident that once COVID-19 cases begin to decline the program will be renewed.
Restaurants and Food Trucks
While food trucks have had their share of issues during the pandemic, they are relatively successful compared to their brick and mortar counterparts. Many restaurants have begun to branch out to food trucks.
On The Go LA is a company that lets restaurants easily rent food trucks at low cost. The company also handles logistics such as planning routes and marketing initiatives. On The Go LA doesn’t own any trucks themselves but simply matches food truck owners that are currently not using their vehicle and restaurants that need another revenue stream.
One of the biggest positives restaurant owners cite is that they get to expose a whole new area and population to their food. When restaurants’ reach is limited due to people staying in and small delivery app radii.
“It just gives us an opportunity to somewhat stay afloat, keep on meeting new people, letting more people know that we’re out there, so it just helps us significantly, especially because we’re a small business,” said Tirsa Farah, owner of Tirsa’s Mexican Cafe.
According to Gabriel Gamez, CEO of On The Go LA, theirs is the “ice cream truck model,” where customers can flag down a passing food truck as they would an ice cream truck.
“I think it’s awesome because it’s like a childhood dream — chasing an ice cream truck. But instead, it’s with tacos,” said customer Amber Robles.
While food trucks are also struggling, they have pivoted into creative solutions as they always do.
“Pivoting is part of food truck life,” says B.J. Lofback, owner of Nashville’s Funk Seoul Brother.
It is important to support local businesses, whether they be family-owned restaurants, corner stores, or your local food truck.
