Hmm, did you read the article? The priconomics guys went into that where they said:
"The costs of running a food truck are relatively modest compared to a restaurent. Phat Thai is mostly a family affair, with only one employee from outside the family. The main expenses outside of labor are $1,000 a week for food and supplies, $200 of insurance, and $120 to fill up the truck’s enormous tank. Its engine is the same one that powered Camaros in the seventies, but even at its terrible gas mileage, a tanks suffices for the week. Bobby’s family borrows kitchen space in a friend’s restaurant, but commissaries complete with a kitchen, waste disposal, and a parking space run up to $1,000 a month. "
Not only does it cost less to start from 0 to operating food truck than it does a restaurant, there is also the fact that you (probably) own the truck so rent doesn't go up. On a tax basis you can actually depreciate the truck which you can't do for the restaurant.
The food isn't prepared "in the truck" it is actually prepared in a certified kitchen. And then moved to the truck. Granted not all meals work well like this, but a number of them do.
So I suspect Danny wasn't thinking things through.
Given the surge perhaps a good investment would be a commercial kitchen tailored to support food trucks more efficiently. Sort of a food warehouse kind of deal.
Number 1 reason for restaurant failure in the first year.. undercapitalization. Initial capital investment in a food truck is higher than renting a location which already has a kitchen. You are basically setting yourself up for failure.
Plus lets get down to the real money.. Profit margins in restaurants suck for the food items (unless you are high end); You make all your money on drinks + booze + deserts. But with food trucks a large percent of the people aren't purchasing drinks, booze, or deserts; as they are getting the items to go.
The fact that employees are family is completely irrelevant and ignoring it as a cost is pure fallacy. You still have to count their labor at the prevailing wage when evaluating the economics.
"The costs of running a food truck are relatively modest compared to a restaurent. Phat Thai is mostly a family affair, with only one employee from outside the family. The main expenses outside of labor are $1,000 a week for food and supplies, $200 of insurance, and $120 to fill up the truck’s enormous tank. Its engine is the same one that powered Camaros in the seventies, but even at its terrible gas mileage, a tanks suffices for the week. Bobby’s family borrows kitchen space in a friend’s restaurant, but commissaries complete with a kitchen, waste disposal, and a parking space run up to $1,000 a month. "
Not only does it cost less to start from 0 to operating food truck than it does a restaurant, there is also the fact that you (probably) own the truck so rent doesn't go up. On a tax basis you can actually depreciate the truck which you can't do for the restaurant.
The food isn't prepared "in the truck" it is actually prepared in a certified kitchen. And then moved to the truck. Granted not all meals work well like this, but a number of them do.
So I suspect Danny wasn't thinking things through.
Given the surge perhaps a good investment would be a commercial kitchen tailored to support food trucks more efficiently. Sort of a food warehouse kind of deal.