Industry Analysis & Industry Trends
The Food Trucks industry has only grown in strength over the past five years, and is one of the best performing segments in the broader food-services sector. The industry's remarkable rise began in 2008, just as the recession hit, as hundreds of new vendors recognized changing consumer preferences favoring unique, gourmet cuisine. Cities such as Portland, Oregon, Los Angeles and Austin sought to differentiate themselves by crafting laws and creating areas specially designed for mobile food trucks. While the recession put the brakes on the broader food-services sector in 2008-09, it was in fact a boon for the Food Trucks industry as consumers sought to maximize their disposable income by indulging in small conveniences such the affordable gourmet food.... purchase to read more
Industry Report - Industry Investment Chapter
The Food Trucks industry has a low level of capital intensity. While a food truck with a fully functional kitchen can be very expensive, the industry also heavily relies on human labor. In 2014, IBISWorld estimates that for every dollar an operator spends on wages and associated labor costs, it will spend $0.04 on the use and replacement of capital.
The main capital costs incurred by operators include the purchase of vehicles and cooking equipment. These assets depreciate over time, but given their high resale value, depreciation rates are typically low. Launching a new food truck venture costs into the tens of thousands of dollars. However, operators can reduce their capital outlays by renting or leasing vehicles or equipment... purchase to read more