Article
Where does QSR fit in the food truck craze?
Led by young, independent chefs, the trend is worth watching — and possibly jumping on board.
November 17, 2009
Food trucks are nothing new, with mobile restaurants having served tacos and sandwiches streetside for years, mainly in large metropolitan areas.
What is new is their sudden popularity with Generation Y, prompted by Los Angeles' Kogi Korean BBQ-To-Go food truck and the company's use of Twitter to announce its trucks' locations.
As a result, mobile restaurants are quickly becoming a national trend, not only on the coasts but in the Midwest, too. For example, at least two casual dining restaurants in Cincinnati have launched food trucks this month, according to a blog post on Cincinnati.com.
Some quick-service brands — including Taco Bell and regional chains Carl's Jr., In-N-Out and Gold Star Chili — have had mobile food trucks for years, using them as promotional tools and catering opportunities rather than mobile restaurants.
Still, limited-service chains are seeing the trucks rising popularity as an opportunity. Vancouver, Wash.-based fast casual Burgerville recently launched its Nomad truck. And fast casual Baja Fresh Mexican Grill recently purchased the Calbi BBQ Truck with plans to franchise it.
Nancy Luna focuses on the restaurant industry for the Orange County (Calif.) Register and has closely followed the food truck trend. While most of the chains in the greater Los Angeles region that have launched trucks have been casual dining brands, she sees the Baja Fresh purchase of Calgi as a good sign for QSRs.
"With this big, fresh Mex chain seeing this as an opportunity to grow a different part of their business with a (food truck) company, it clearly almost legitimizes it," she said. "They see it as a lasting trend that they need to get on board."
Luna said that fans of Orange County and Los Angeles food trucks enjoy the experience, from reading tweets on the latest locale to standing in line for an hour or more talking with friends. They like taking part in something trendy, and they have high expectations about the quality of the food.
Although plenty of her readers have said they can't fathom waiting that long for food no matter how unique it is, Luna said, the growth in the number of mobile restaurants is noteworthy. Food trucks offering fare from grilled cheese to cupcakes have launched in recent weeks, all relying on word of mouth and Twitter to gather crowds at a moment's notice.
"There's something fun about that, if you like that kind of synergy," she said.
| ||||||||||||||||||||||
Josh Hiller, co-owner of food truck outfitters Road Stoves, said most of the new mobile restaurants in the Los Angeles area have been started by young, entrepreneurial, often out-of-work chefs hoping to cash in on the trend.
His company started leasing fully outfitted food trucks last year after helping Kogi get its start. Offering a leasing program and on-call maintenance helps such independents by cutting the cost. A new truck can cost $130,000 — not including permits and unforeseen expenses. Road Stoves offers turnkey mobile restaurants, allowing operators "to hit the road for four figures," he said.
Although most mobile restaurants are one-truck operations, Hiller said chains are watching the trend closely. Casual dining chains are more likely to see the trucks as potential threat to market share. On the other hand, QSRs, especially the large chains, probably don't have much to worry about.
"For large chains in quick-service, it's not a big enough issue to them," he said. "It's not taking a big enough bite."
Some QSRs even seem ready to embrace the concept, and at least one has approached Road Stoves about leasing options for the Los Angeles area.
The right approach
But for QSRs looking to jump on board the food truck trend, they need to approach it right.
Restaurant industry consulting group Technomic's October ConcepTrac focused on food trucks. The report said that while the mobile units offer cost savings and agility, their customers are more likely to be value seekers and those interested in trying something new.
So, QSRs may have to do more than just take their menu mobile. The most popular food trucks offer a unique menu opportunity, said Darren Tristano, Technomic executive vice president. He foresees smaller chains having more success.
"McDonald's may not be successful, but In-N-Out may," he said. "They've got a cult following. And they've got 200 restaurants instead of 14,000. So there's a big difference."
McDonald's fans, for example, wouldn't likely see the need to learn a food truck's location when they can find a drive-thru easily enough. But if the chain were to take a truck to a concert or sporting event and sell their wares, customers might appreciate being able to order cheaper food outside the venue rather than having to rely on the higher priced items once inside.
Still, if done right, the trucks can offer chains the chance "to expand their reach at a very low cost," Tristano said.
Chains could use the trucks to service locations undergoing a remodel, and also as an opportunity to seed a new market without the expense of building costs. The trucks could also be used as a money maker at corporate-sponsored events.
Burgerville CEO Jeff Harvey said the company began thinking about the Nomad this spring as a way to expand the company footprint during a tight economy.
"I began to get curious based on the success of the model and the loyalty it was creating," he said. "Research told me (it) was and is creating very deep relationships with guests in local markets."
Whether or not QSRs see a mobile restaurant as viable, it's certainly wise to keep an eye on them. There might not be enough trucks to be considered a threat to the segment, but any competition in today's tight environment is worth noting, Tristano said.
"We're pretty early in the mobile truck trend, and I think that it's going to continue to grow and blossom," he said. "It's something all (chains) should look at and evaluate."
*Cary Stemle contributed to this article.
Related Media
Subscribe
Get the latest news and resources from QSR Web.
