152 Contemporary Trends

Sophia Junginger
BA4 H2

Dr. Milson

UoD #100344533

Submission due: 06.11.2015

Student #702798 / JUSO060393

Word count: 2588

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THE EMERGENCE OF FOOD TRUCKS
Coursework 2 by Sophia Junginger

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1.0 INTRODUCTION
For the past couple of years, it became very popular to get lunch from a food truck. A food
truck is a large vehicle equipped with facilities for cooking a selling food." (Oxford dictionary,
2015)
Since the emergence of food trucks seems to be a threat to traditional restaurants,
government is making restrictions to the food truck business. On the other hand food trucks offer
opportunities for growth within the hospitality industry.
This paper will present the emerging trend of food trucks, including their history and how
they are finding their way to Switzerland. Moreover, their impact on the hospitality industry will
be discussed including how restaurants are threatened by that trend leading to governmental
restrictions for food truck businesses, and how hotels take advantage from the popularity of food
trucks. Finally, I will explain how it effects us as hospitality students in our future career.

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2.0 THE EMERGENCE OF FOOD TRUCKS

2.0.1 From Past to Present
Mobile dining itself is not new there is a surprisingly long history behind it as it is part of
American's dining habits since the late 17th century in many larger cities on the east coast.
(Myrick, 2012) It even started before the invention of automobiles: Our modern food trucks
developed from chuck wagons and pushcarts, which served simple, reasonable lunches to
cowboys and urban workers. (Butler, 2014)
After the invention of the automobile the first food trucks similar to those we know today
appeared in the 1950's: ice cream trucks. Some of them might still be on the road. In the 1960's
the trucks became larger, selling take away fast food such as tacos and burgers. These trucks
were also called roach coaches due to their often substandard health practices. (Butler, 2014)
Nowadays, new gourmet trucks take the street food game to a higher level. (Oxford
dictionary, 2015) The roach coach perception of mobile cuisine is being replaced with that of
gourmet gastronomy on the go. They combine different types of cuisines to create a highbrow
dining experience for foodies without any frills. (Swanbrow, 2014) The choice of food is wideranging and representing "virtually all trendy food preferences" from vegan to gluten-free to raw
and organic. (Jackson, 2014)
According to Schiefeling and Demetry, who studied the food truck industry, "the growth of
food trucks is a prime example of what they call the new authenticity economy - a trend
toward favoring unique, eclectic, local, and artisanal products." (Swanbrow, 2014)
From 2011 to 2013 there has been a 197% in number of food truck in the US. (Willett,
2014) In 2014 more than 4,000 food trucks were operating in U.S. Cities with more than 100,000
people, and the number keeps increasing rapidly all over the world. (Swanbrow, 2014)
2.0.2 Food trucks finding their way to Switzerland
Eating freshly cooked food from stalls or mobile trucks on the streets is a hugely popular
trend from London to Berlin to Cape Town, but until recently quality street food was rare in
Switzerland. (Bishop, 2015) This is changing rapidly.

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Since May 2014 you can find a "burgeoning street food scene" in Lausanne at the Place de
la Riponne at any given weekday, apart from Wednesday, the market day. It was initially
launched for six months as part of a summer project to revitalize the Place. In the beginning
Swiss people seemed to be reserved towards the new trend. However, as the market kept growing,
the success exceeded expectations, even in winter: Stalls and food trucks attract around 50 to 60
customers each on an average day's trade. According to Emma Schwab, one of the street food
vendors, most stalls price dishes at not more than 15 francs, cheaper than a restaurant - but the
range of food on offer goes beyond standard takeaway fare.
Swiss authorities became more open minded towards this trend, allowing carefully selected
food trucks to operate in designated areas. The stalls are selected carefully, "for their originality
and the variety of products offered", Florence Nicollier, head of commercial policy for the city of
Lausanne says. Since September 2014 the city of Geneva allows food trucks in six locations. The
street food festival in Zurich was launched in August 2014 with 40 stalls. Less than a year later it's
third edition with 150 stalls was held at the Dolder Sports complex, part of the luxury hotel The
Dolder Grand. In April 2015 Bern hosted its first Street Food Festival as well. "The trend may
have been slow to arrive in Switzerland but it's certainly gathering speed now." (Bishop, 2015)

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2.1 THE IMPACT ON THE HOSPITALITY INDUSTRY

2.1.1 Street Fight: Food Truck vs. Restaurant
A s t re e t fi g h t i s b re w i n g b e t we e n g o u r m e t fo o d t r u c k ve n d o r s a n d
restaurants (Needleman, 2014)
Recently, food trucks became a real threat to sit-down establishments and takeout places:
Established restaurants say that the influx of food trucks is eating away at their bottom
lines. (Needleman, 2014) Customers can get the same top quality food in a more casual, relaxed
atmosphere and the price of food is often lower. They enjoy the experience, convenience, variety,
and novelty of buying food from a truck. (Sternberg, 2012)
Food trucks can offer their food for lower prices since their operating cost is not as high.
Purchasing or renting a property for a restaurant for example, usually is very expensive. One of
the biggest advantages of food trucks is their ability to move: They can change locations and can
operate only during peak hours at a certain location of demand and then move on. They come
during our busiest hours and park in front of us, a restaurant owner in Las Vegas complaints.
Moreover, food trucks do not only compete with restaurants for food traffic, they also occupy a
long stretch of parking spots where restaurant customer look to park their vehicle. (Needleman,
2014)
2.1.2 Government is putting the brakes on
Seeing the raise food truck as disruptive innovation, incumbent industries use the political,
legal and regulatory processes to push back against them. (O'Conner, 2014) For not complying
these regulations results in fine punishments (Galland, 2012), and operators vending permit
might be suspensed or revocated. (Benn, 2012) However, Some food truck operators argue that
they should not be punished for offering an innovative service. (Needleman, 2014)
Chicago passed an ordinance at the behest of local restaurants that prevents food truck
from offering food within 200 feet (approximately 61 meters) of brick and mortar restaurants.
Operators can be fined up to $1,000 for not complying. (Galland, 2012)
St. Louis followed and adopted this 200 feet regulation not only for restaurants, but also for
any other type of street vendors. Moreover, some blocks of the city are completely forbidden for

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operating food trucks. While a number of approved areas remain within the vending district,
some food truck owners say their options have become limited. The city of St. Louis created a
special map showing where food trucks are not allowed.. Food truck operators are required to
keep a copy of that map in their vehicle in order to be able to prove to police officers or licencecollector representatives that they are standing in an allowed spot. (Benn, 2012)
In Las Vegas, the city prevents food trucks from operating within 1320 feet (approximately
400 meters) of local restaurants. In 2012 a proposal to decrease the distance to 150 feet was
successfully resisted by local restaurant owners. Moreover, it was discussed whether food tucks
should be allowed to park up to four hours in one place instead of only 30 minutes. It really
made me upset, honestly, Marianne, a food truck operator, said about the declined proposal.
There are all these restaurants that are right next to each other. What's the difference if a food
truck is close to a restaurant? (Spillman, 2012)
In Evanston, only local restaurants are allowed to operate food trucks. (Fisher, 2012)
Although operating food trucks becomes very difficult in many cities, there have been some
positive developments for food trucks as well. The Institute for Justice based in Arlington,
Virginia found that regulations in El Paso, Texas which prevent food trucks of operating within
1,000 feet of restaurants were unconstitutional as it violates vendors' constitutional right to earn a
living. Bert Gall, a senior attorney at the Institute for Justice, reported that the 1,000 foot
separation requirement and the prohibition on waiting for customers curbside did nothing to
protect public health or safety they simply protect brick-and-mortar businesses from
competition. [] Economic protectionism is not a legitimate governmental interest. (O'Conner,
2012)
The Heritage Foundation sees this case as a huge victory for mobile food vendors across
the nation, setting a standard against competition-killing, over-regulatory laws. According to the
Institute for Justice restaurants must compete on the basis of quality, service, and price rather
than using the power of government to shut down mobile vendors. (Anderson, 2011)
2.1.3 Taking Customer service in restaurants to the next level
As there is always competition in the foodservice industry it is necessary to recognize the
need for constant improvement and fresh ideas in order to keep up with the competition. As

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discussed before, food trucks seem to be a threat to restaurants. However, competition is good for
business: Restaurants are forced to improve their services provided, creating a better customer
experience and gaining competitive advantage.
Offering Wifi attracts people who need to work while dining, such as business people or
students. Accepting credit cards improves customer experience as customers who don't carry cash
don't have to find an ATM before heading for lunch. Many people don't have the time to sit
down in a restaurant during their lunch break. Offering takeout or even delivery will increase
business targeting those people. Taking reservations offers customers certainty as they can plan
ahead and reserve a table at a specific time. This might be especially important to business people
who are having a meeting. Moreover, communicating the menu online gives certainty to
customers: when choosing a restaurant many people would like to know what the restaurant
offers, whether due to dietary restrictions or personal preferences. For food trucks it is very
common to provide their menu online. A good way to retain customer loyalty is to offer special
discounts or coupons. Offering healthy options became even more important since food trucks
are not greasy roach coaches anymore. (Woods, 2013)
2.1.4 Hotels are taking advantage of food truck popularity
Some hotels are taking advantage of the emerging trend: they are cooperating with food
trucks to enhance customer experience, or in the case of Four Seasons, even have their own truck
to promote their brand.
Starwood's Aloft brand cooperates with local food trucks to add on customer experience
during music events, exceeding hotels own limited food and beverage facilities. Engaging food
trucks on a commission-based agreement enhances guest experience as more variety is offered
and the volume of food required for large crowds can be provided in a unique way. However,
partnerships must be well managed to ensure the proper level of quality and
reliability. (Questex Media Group, 2015)
Four Seasons organized the FS Taste Truck Tour in 2013 and 2014, making stops across
the West and the East Coast in the United States. Chefs from each of the hotels properties along
the way created unique menus, highlighting regional flavors. For us, the popularity of the Four
Seasons food truck was that people were very curious that a luxury hotel brand was operating a

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food truck, offering street food cooked by very well-trained chefs, according to Guy Rigby, VP
of food and beverage for Four Seasons. (Questex Media Group, 2015)

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2.2 HOW THE TREND AFFECTS OUR FUTURE CAREER
Even though food trucks are seen as a threat to restaurants, it forces innovation and
development in the industry. It is an opportunity to bring the service in restaurants to a higher
level. It is our job to make sure the customer experience at our business is an outstanding one. We
as hospitality students should always be aware of upcoming industry trends and recognize
customers needs in order to create competitive advantage. (Woods, 2013)
So far, most food trucks are run by one or two people with some temporary staff. However,
as the food truck business is growing rapidly, single food truck businesses will grow as well. New
job opportunities will come along with that, such as event managers.
2.2.1 Operating a food truck before opening a restaurant
With only a forty percent chance of success in the first year, starting a restaurant [] is a
high-risk venue. There are several reasons for failure. However, most of them are avoidable.
Common mistakes found in the restaurant business are lack of experience, lack of capital, poor
locations, or inventory mismanagement. (Myrick, 2013) Starting small with a food truck before
opening a restaurant should be taken into consideration, as it brings many benefits. Food trucks
are popular due to their convenience, adaptability, and low barrier of entry. (Willett, 2014)
There is not as much cost involved as opening a restaurant: Costs for opening a restaurant
can start at $500,000 and can run into millions, whereas opening a food truck with the same style
can cost as little as $50,000. By starting small, many lessons can be learned, but there is less
investment involved when the idea fails.
If you do not offer the right brand to your target customers, it will take years to build a
successful brand since you will have to rebrand until you get it right. Food trucks can make
modifications to their brand as easily as it is to find a new location to park in.
In order to run business smoothly operations need to be well developed. Operating a food
truck requires to learn and develop all the different processes from taking orders, the preparation

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of food, as well as serving customers. Improving operational processes will eventually translate
into a restaurant.
Finding a way through the local legal system to run a business requires a lot of time and
effort. For food trucks it might be even more difficult. However, getting to know rules and
regulations for the hospitality industry and building a rapport with the permitting office and
health department will be very useful when opening a restaurant.
Moreover, with a food truck you have the opportunity to get to know your target market, as
it is relatively easy to vary the truck's small menu. You can find out what customers want before
adapting it to a full service restaurant menu.
Finding the best location for a restaurant is one of the key ingredients to operating a
successful restaurant. The mobile concept allows you explore different locations before deciding
on one that is suitable for settling down with a restaurant. (Myrick, 2013)

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3.0 CONCLUSION
The history of food trucks began even before automobiles were invented. However, nowadays
they offer street food at high quality for a reasonable price, which is quite a new trend that is
developing rapidly. Food trucks seem to be a threat to traditional restaurants, which encourages
authorities to set up restrictions. On the other hand the trend brings along some opportunities for
growth: Restaurants need to constantly improve their services in order to keep up with the
competition. For relatively unexperienced people in the industry operating a food truck before
opening a restaurant might be very helpful to gain experience at lower risk.

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