Chapter

5

The Right Location

In This Chapter

When it comes to food trucks and the restaurant business, similarities abound. The basics are the same: you must consistently put out a high-quality product with attentive service, with a side of aspirational marketing. It sounds simple, but trust me, doing this well day after day is no walk in the park.

Then comes the curve ball: in the truck business your real estate isn’t fixed. Like everything in life, that’s a blessing and a curse. But one thing’s for sure: not having a fixed location makes things a lot more complicated. In this chapter we discuss finding the best locations to park your truck, as well as identifying locations to avoid. Then we help you figure out how to make the most of the locations you do choose.

Being Mobile: The Pros and Cons

Let’s start with the blessings. You’re the food equivalent of a guerrilla army. You can use your mobility to rake in the profits in ways that larger and less mobile food operations can’t. If you open up in a spot that’s busy for lunch but not for dinner, you can just start the engine and move somewhere else for the second half of the day. If you take a risk on a new spot and it doesn’t work, not to worry; just park somewhere else tomorrow. Someone wants you to cater a party an hour away in the middle of a field? Just hop behind the wheel, and the gig and the profits are yours. Your mobility provides you with endless opportunities to generate more income.

On the flip side, being mobile creates other issues, and it’s your job to minimize them. Let’s start with storage: as a mobile food business, your storage is off-site, at your commissary. If you run out of buns for hamburgers, then burgers are 86’d for the rest of the day. You have to pay extra attention to planning and creating a support system with other trucks, as well as local food businesses, making running out of food less likely, and providing you with options when and if you do.

Truck Tales

Eighty-six, or 86, is restaurant lingo for taking an item off the menu. Generally it refers to taking something off temporarily because you ran out of that particular item, but it can also refer to removing it permanently.

Your mobility can also create issues with the stability of your business. You may have a great parking spot one day, but what ensures that you’ll have it again the next? And what if a competing pizza truck or shop opens in your spot? Do you surrender it, or do you stay and fight? You aren’t paying rent, so other than the goodwill of the food truck community you really have no claim to that space. That’s another reason why being part of the community is so important. When you’re part of a group of trucks, you work together to protect each other’s interests and share a code of ethics.

When you find good spots, you have to protect and build them through hard work and fostering great relationships with the local community. Locating and cultivating the right locations for your truck is critical to your success. On that note, let’s start identifying prime parking spots for your food truck.

Identifying Where You Should Park

Generally, you want to park in high-traffic and under-serviced locations, as well as places that will be in existence temporarily. The following sections identify some of the best places to park your food truck.

Office Buildings and Office Parks

High-traffic office buildings and office parks are ideal locations for the food truck business, especially at breakfast and lunch. Huge volumes of people pour into these locations during the morning and afternoon, and they’re always looking for new and better options to quickly satisfy their cravings. Additionally, such places typically follow a set time schedule, which allows you to hit the breakfast and/or lunch rush of that area and then leave when the rush is over. You can maximize revenue and minimize staffing costs because you know exactly when you’re going to be busy.

Office locations also offer great potential for delivery business and catering jobs.

Tip

Areas that are specifically for offices, like the Financial District of Manhattan, are more viable than ones with a lot of offices but multiple functions, like Midtown Manhattan. That’s because areas that service several functions have higher rents, and the local food businesses will give you problems if you steal their piece of the customers’ spend. If you can get into a spot, make sure you do everything you can to ensure that local food merchants aren’t hostile.

Residential Buildings

Large residential developments, especially in budding neighborhoods, are ideal for food trucks. These areas are better for breakfast and dinner, because you can catch the traffic of people leaving for and returning from work. During the middle of the day they’ll generally be slow; I don’t advise targeting them for lunch.

Developing neighborhoods are often underserved by food businesses, and residents are looking for more food options. If you gain a following in a developing neighborhood, you’ll become a staple and, eventually, be a prime candidate for expansion into a bricks-and-mortar location in the district. Delivery is also a prime opportunity in these up-and-coming locations.

Large Events

Concerts, sporting events, carnivals, festivals, and other events that draw large crowds are perfect for food trucks. These happenings bring tremendous volumes of people to a particular location for a set period of time. With the right location and product, they can spell massive profits for a food truck operator. Depending on the event, you may have to be invited by the organizers or pay a fee for access, but sometimes you can just park around the corner and ride the hype.

Recently food truck operators and local organizations have begun creating large events focused on bringing together groups of food trucks in a particular place and marketing it as a festival. Usually they’re advertised in the food press and on food blogs and include additional live entertainment. Such events often sell group tickets that allow customers to sample items from all the trucks for one price. Although you are required to pay a fee to participate in these events, they can lead to big revenues outside of your usual spots.

Dorms and College Buildings

Students are the ideal food truck customers. They typically embrace the counterculture, love to try new things, and are looking for a quick fix to quench their hunger. Options for food in and around dormitories and school buildings is typically limited to sub-par cafeteria grub, making these ideal locations for creating a spot that could be yours for years to come. The key is to create relationships and become part of the school’s culture.

Truck Tales

The Hot Truck has been serving the Ivy League campus of Cornell University since 1960. Founded by Bob Petrillose, it was named to differentiate it from rivals that sold only cold items. Petrillose decided soon after opening his truck that he could be much more profitable serving only one item: Pizza Subs, made from buttered French bread covered with a variety of toppings, which students affectionately refer to as a poor man’s pizza (PMP). Bob sold PMPs until his passing in 2008. Since then the Shortstop Deli has run the truck.

Seasonal Locations

Boardwalks, beaches, pumpkin patches, and ski resorts are all ideal locations for food trucks. These areas become super busy during a particular time of year and generally have limited infrastructure to support the traffic they get at those times. They’re generally good weekend spots because they receive a lot of leisure business on off days, making them a great balance for spots where you get more weekday traffic. The Ditch Witch in Montauk, New York, has a prime example of this type of spot. She’s been supplying grub such as breakfast burritos, iced coffee, and sesame noodle salad to surfers on the Ditch Plains Beach for over 20 years.

A word to the wise: vendors often pay a lot of money to operate concessions in seasonal locations like beaches. You won’t be popular with them if you cannibalize their business.

Nightspots

When people drink, they love to eat. Parking outside nightclubs and bars is a perfect option for a late-night location. Every city has areas that are packed after 10 P.M., and it’s your job to locate them. I suggest parking for two to three hours before closing time. That’s when people are looking for food, and you’ll be there to serve them.

Food Truck Lots

With the introduction of legislation that regulates and limits locations where food trucks can park (see Chapter 8), food truck lots have begun to spring up. These are typically vacant lots located close to major office complexes. You’re required to pay a rental fee for access, but there’s no average rate, because these businesses are so new.

The lots operate like outdoor food courts, and it is your job to differentiate yourself from the rest of the trucks in the lot. How successful your involvement in a lot will be depends on its location, the rental fee, how many other trucks are involved, and the amount of traffic it attracts.

Determining Where You’re Allowed to Park

Now that you know where you should be parking, it’s time for the next step, finding out where you’re allowed to park. Regulations differ from city to city and state to state. Generally, food trucks can park in metered parking spots, but beyond that each area has its own laws, often antiquated, that govern street vending businesses, and some actually have no regulations at all.

Recall that in Washington, D.C, the rule is that you can only solicit customers who flag you down. Although this law was created 35 years ago to govern ice-cream trucks, it’s still on the books and very much enforced. Once a customer “flags you down” (whatever that means), you can serve customers, but if no one’s waiting you have to leave. If you don’t follow this regulation you’ll be subject to “fines and potential revocation of your license.” You can imagine this makes it very difficult to flourish as a food truck operator in Washington, D.C., but where there’s a will there’s a way, and the D.C. food truck scene is very lively.

Truck Tales

New York City recently had a massive crackdown on food trucks. A judge reinforced an antiquated regulation that states “no vendor, hawker, or huckster shall park a vehicle at a metered parking space to offer merchandise for sale from that vehicle.” The police are enforcing the law, and food trucks now have little or no place to park. This is a prime example of backlash from bricks-and-mortar businesses and neighborhood groups, and only time will tell whether food trucks will be able to once again flourish in New York City.

Laws are constantly changing and being reinterpreted based on the food truck revolution. Regulations haven’t and probably won’t come close to catching up with the boom because politicians and business owners are still deciding whether the industry is good for their interests and those of the surrounding community. In many cities, food truckers have formed associations, such as the New York Food Truck Association (nycfoodtrucks.org) to protect themselves and fight for their rights. The success of the trucking industry has brought attention both good and bad. It’s crucial that the industry work together to be viewed as a legitimate trade.

In order to find out the policies governing locations where mobile food businesses can park in your local area, contact the local department of transportation or similar governing body. (For example, in Miami it’s the Department of Planning and Zoning.) In larger municipalities you might be able to find the information you need online. For example, try typing “food truck parking regulations” and the name of your city in a search engine such as Google.

In some places food truckers are being regulated out of business. Check your local parking regulations prior to jumping into the business. You don’t want to spend your days fighting tickets and regulators rather than sharing your passion with your customers.

Beep! Beep!

When you’re calculating your financials, it’s important that you budget for parking violations. They’re part of doing business, and tickets can run from $15 to $150, depending on where you are, and can add up very quickly. Even worse, if you don’t pay your tickets you can end up with larger fines or even jail time. Be aware of local laws and do whatever you can to keep your fines to a minimum. It would be a shame if you worked all day slinging delicious food just to pay your profits to the state or city.

Considering Traffic

The key to choosing any spot for your food truck is to observe the traffic in that location. Rather than throwing caution to the wind and randomly choosing spots through trial and error, it’s far better to take a strategic approach.

Pick five neighborhoods and take the time to scout them out. See what days and times they’re busy and when they’re slow. Observe the competition in the area and consider the following factors:

Knowing Locations to Avoid

Just as there are prime locations to park your food truck, there are also locations you should avoid.

Low-Traffic Areas

The most obvious locations to avoid are ones without a lot of traffic. Some people like to buck the trends, believing that they alone can draw the masses with their incredible food and drinks. Please don’t be one of them; if you were to succeed it would be out of blind luck. The reason store owners pay high rents in certain districts is because that’s where the customers are.

All the marketing in the world won’t make your food truck a success in a bad location on a consistent basis, and you need to focus on consistency. Successful food businesses are about moving a lot of product on a regular basis. Weeks of generating a minimal profit daily won’t add up to a substantial profit monthly or yearly.

Restaurant Rows

Even though restaurant rows can be very busy, you should avoid them. Areas where a lot of restaurants are competing for the customers’ food dollars aren’t ideal for food trucks. The average restaurant owner has a bigger budget and larger facilities and will generally be very hostile to someone who isn’t paying rent while trying to steal his or her customers.

The most unethical thing for a food truck is to park in front of a restaurant that serves the same cuisine—a falafel truck parked in front of a Middle Eastern restaurant, for example. I can see the logic in trying to attract those customers, but it’s so incredibly wrong that obstacles are bound to arise. Anything gained through unethical practices generally is lost through the reaction from customers and the restaurant community. As a member of the hospitality community, it’s your responsibility to protect and support your brothers and sisters.

Looking at Other Businesses in the Area

One of the most important considerations when choosing a location for your food truck is what other businesses are in the area. Being accepted into the community is key to your success, so do everything in your power to be seen as a positive addition to the neighborhood.

The worst thing that can happen to you as a truck operator is to be seen as the enemy. It’s very easy for a restaurant owner to get angry because he or she thinks you’re stealing customers during his or her busiest time of the day, especially because you aren’t paying rent.

As a community member, your business must add to the long-term prosperity of your district. Not only must you be friendly, but you must become an active member of the organizations that govern commerce there. You should attend meetings and make your presence felt by becoming involved in the actions taken.

To initiate personal relationships, drop off care packages and introduce yourself to all the area merchants. Make sure that if they have an issue with you or your truck, they come directly to you rather than involving the authorities. This gives you the opportunity to remedy the situation instead of creating larger issues.

Take the time to establish mutually beneficial partnerships with local businesses. Let’s say you park your sweets truck near a local pottery store that hosts children’s birthday parties every Saturday or Sunday. A mutually beneficial partnership could involve your parking in front of their location on weekends and supplying the parties with cupcakes.

If you operate a sandwich truck and there’s a construction site in the area that’s isolated from local restaurants, strike a deal to show up every day at a certain time to sell to the crew. These are the kinds of things that help your business and also show support to the community. By focusing on helping the neighborhood—in addition to generating profits—you will experience greater long-term success.

Tip

You can leverage your Twitter following and e-mail database to build partnerships. You have customers, and other businesses would love access to them. Approach a clothing store with a similar demographic that’s planning a big sale and agree to tell your customers about it if they’ll allow you to sell your food outside for the duration. With the right store you’ll both benefit without cannibalizing each other’s business, because your products are distinctly different. If things work, out you’ll get yourself an awesome parking spot and a boatload of new customers. Wait till the other stores hear about you!

Building Your Spots

After you’ve identified your regular parking places, it’s vital that you build them, cultivating the local clientele to build regular business in that location. Even though you don’t have a store, you must use the same methods as a bricks-and-mortar business to create local awareness. You want to use the cachet of the food truck while creating the perception of a restaurant that’s in the same spot every day. If you do, you’ll have your cake—mobility—and eat it too by being perceived as being just as reliable as competing food businesses.

Here are some methods for cultivating your business in a particular spot:

Beep! Beep!

Although promotions are a good way to generate business, don’t overdo them. Make sure your promotions don’t cheapen your brand with too much discounting; you always want people to think of your product as an object of desire.

Tip

Mass e-mail applications like enflyer.com and ConstantContact.com let you store addresses and send marketing materials to large groups of customers with relative ease. These types of applications generally charge a monthly fee, ranging from $30 to $250 per month, based on how often you send out your e-mails. The software also gives you in-depth information about who is opening your e-mails so you can monitor performance. With proper management these sites are well worth the investment.

Truck Tales

Customer Relationship Management (CRM) is a widely implemented strategy for managing relationships with customers. Create a document explaining how all employees should interact with your customers, and require all of your employees to read it. The goal of CRM is to find and attract new customers, nurture and retain current customers, and entice former customers back.

The Least You Need to Know