Mobile Food Services
Description
Companies in this industry prepare meals and snacks for immediate consumption from motorized vehicles or nonmotorized carts, such as food trucks, ice cream trucks, mobile concession stands, and hot dog carts. No major companies dominate the industry.
Street foods represent a significant part of urban food consumption for millions of low-and-middle-income consumers in urban areas on a daily basis, according to the Food and Agriculture Organization (FAO) of the United Nations. Street food selling provides a regular source of income for millions of people in developing countries.
The US mobile food services industry includes about 5,200 establishments (single-location companies and branches of multi-location companies) with combined annual revenue of about $1.2 billion.
COMPETITIVE LANDSCAPE
Demand is driven by consumer tastes, personal income, and local demographics. The profitability of individual companies depends on location selection, food quality, and effective marketing. Large companies have advantages in name recognition and economies of scale in food and equipment purchasing. Small companies can compete effectively by specializing in unique food products and leveraging relationships with local suppliers. The industry is highly fragmented: the top 50 companies account for about 20% of revenue.
Mobile food service operators compete with traditional brick-and-mortar restaurants and specialty eateries, as well as grocery and convenience stores that sell snacks and other prepared food items.
PRODUCTS, OPERATIONS & TECHNOLOGY
Sales of meals, snacks, and beverages from mobile food outlets account for the bulk of industry revenue. Some companies earn secondary revenue from catering private events.
While hot dog carts and ice cream trucks have been around for decades, food trucks offering a larger variety of cuisines have proliferated in many US cities in recent years. Some of the most common selections include tacos, barbecue, pizza, and grilled cheese sandwiches, while some outlets specialize in niches such as vegan food, cupcakes, and lobster rolls. Food trucks have also contributed to the growing popularity of ethnic fusion cuisines that borrow flavors from Korean, African, Middle Eastern, and Native American culinary traditions. Sales volume for many mobile vendors is highest during lunch, but many sell snacks throughout the day, and some are open for breakfast and dinner.
Because the industry is volume-driven, transaction speed is extremely important, and most mobile food items can be prepared and served quickly. Limited menus require fewer ingredients and make food assembly easier, which can improve quality control.
A majority of mobile food businesses operate seasonally rather than remaining open year-round, as foot traffic in many areas tends to be significantly slower during the winter. Some vendors operate multiple outlets within a particular region, but most only have a single location.
Companies may serve food out of trucks, towable trailers, pushcarts, or bicycle vending carts. Operators of food trucks, also known as mobile food preparation vehicles (MFPVs), prepare meals and snacks inside or near the vehicle while customers wait; larger food trucks may be equipped with full commercial kitchens. Industrial catering vehicles (ICVs) serve food prepared in advance at another location. In addition to the truck, trailer, or cart where food is sold, some operators also lease warehouse facilities (to store ingredients, supplies, and vehicles when not in use); commissary kitchens (to prepare food before transporting and serving it); or office space (to manage business operations and company records).
To ensure steady business, mobile food vendors are typically located in areas with heavy foot traffic, such as transportation hubs, business districts, retail centers, and tourist attractions. Some congregate around entertainment venues and sports arenas during major events. Operators must receive city permits to conduct business in public spaces such as sidewalks and parks. They may also contract with private property owners to operate in parking lots and commercial spaces. Businesses may purchase packaged foods or raw ingredients from wholesalers or smaller local suppliers.
Street foods represent a significant part of urban food consumption for millions of low-and-middle-income consumers in urban areas on a daily basis, according to the Food and Agriculture Organization (FAO) of the United Nations. Street food selling provides a regular source of income for millions of people in developing countries.
The US mobile food services industry includes about 5,200 establishments (single-location companies and branches of multi-location companies) with combined annual revenue of about $1.2 billion.
COMPETITIVE LANDSCAPE
Demand is driven by consumer tastes, personal income, and local demographics. The profitability of individual companies depends on location selection, food quality, and effective marketing. Large companies have advantages in name recognition and economies of scale in food and equipment purchasing. Small companies can compete effectively by specializing in unique food products and leveraging relationships with local suppliers. The industry is highly fragmented: the top 50 companies account for about 20% of revenue.
Mobile food service operators compete with traditional brick-and-mortar restaurants and specialty eateries, as well as grocery and convenience stores that sell snacks and other prepared food items.
PRODUCTS, OPERATIONS & TECHNOLOGY
Sales of meals, snacks, and beverages from mobile food outlets account for the bulk of industry revenue. Some companies earn secondary revenue from catering private events.
While hot dog carts and ice cream trucks have been around for decades, food trucks offering a larger variety of cuisines have proliferated in many US cities in recent years. Some of the most common selections include tacos, barbecue, pizza, and grilled cheese sandwiches, while some outlets specialize in niches such as vegan food, cupcakes, and lobster rolls. Food trucks have also contributed to the growing popularity of ethnic fusion cuisines that borrow flavors from Korean, African, Middle Eastern, and Native American culinary traditions. Sales volume for many mobile vendors is highest during lunch, but many sell snacks throughout the day, and some are open for breakfast and dinner.
Because the industry is volume-driven, transaction speed is extremely important, and most mobile food items can be prepared and served quickly. Limited menus require fewer ingredients and make food assembly easier, which can improve quality control.
A majority of mobile food businesses operate seasonally rather than remaining open year-round, as foot traffic in many areas tends to be significantly slower during the winter. Some vendors operate multiple outlets within a particular region, but most only have a single location.
Companies may serve food out of trucks, towable trailers, pushcarts, or bicycle vending carts. Operators of food trucks, also known as mobile food preparation vehicles (MFPVs), prepare meals and snacks inside or near the vehicle while customers wait; larger food trucks may be equipped with full commercial kitchens. Industrial catering vehicles (ICVs) serve food prepared in advance at another location. In addition to the truck, trailer, or cart where food is sold, some operators also lease warehouse facilities (to store ingredients, supplies, and vehicles when not in use); commissary kitchens (to prepare food before transporting and serving it); or office space (to manage business operations and company records).
To ensure steady business, mobile food vendors are typically located in areas with heavy foot traffic, such as transportation hubs, business districts, retail centers, and tourist attractions. Some congregate around entertainment venues and sports arenas during major events. Operators must receive city permits to conduct business in public spaces such as sidewalks and parks. They may also contract with private property owners to operate in parking lots and commercial spaces. Businesses may purchase packaged foods or raw ingredients from wholesalers or smaller local suppliers.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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