Industry Analysis & Industry Trends
The Food Trucks industry has experienced a remarkable rise over the past five years, as consumers have increasingly favored unique, gourmet cuisine at budget-conscious prices. Despite strong performance, however, high competition and unfavorable regulatory conditions in some cities have limited the growth of industry vendors. Nevertheless, the industry has outperformed the broader food-service sector over the period in terms of revenue expansion. In the five years to 2020, favorable consumer trends will continue to underpin moderate revenue growth, but the industry will need to work with municipal governments to resolve the remaining legal challenges to food truck operations.... 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 2015, 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