Loss Prevention Considerations: The Growing Business of Food Trucks
Looking to Expand into a New Market?
The multi-billion-dollar U.S. restaurant industry is enjoying a growth period. Soaring restaurant sales marked 2015 as the fifth year in a row for increased growth. Statistics reported that nearly a quarter of all U.S. consumers ate out at least once a month and more than 10 percent of these diners frequented a restaurant every week. Of course, no one wants to rest on their laurels and leaders, innovators, and progressive thinkers are trying to identify the next greatest trend in the restaurant business.
Serving Consumers on the Move
Consumers are always on the go. They travel more often and use their mobile devices to get them to places near and far as quickly as possible. Today’s consumers are not tied to brick and mortar establishments anymore. They are comfortable with shopping online, having personal services (teeth cleaning, massages, haircuts, etc.) performed in their home, and dealing with internet companies headquartered halfway around the world.
One of the latest trends for this “on-the-move” society is the emergence of mobile food units, food trucks, and food trailers that offer a variety of menu items from simple (and not so simple) hot dogs with all the trimmings to vegetarian gourmet pasta dishes in various temporary locations. Some might say this is a “Moveable Feast” trend.
But food trucks are more than just a hot trend. They’re quickly becoming one of the fastest-growing and most flexible business opportunities around the country. The National League of Cities report shows that the food truck business reached $650 million in 2012 and that amount is predicted to rise to $2.7 billion by 2017.
Loss Prevention: Thoughts on Protecting Food Trucks
For those thinking about investing in food trucks or kiosks, there are, of course lots of red tape to wade through and numerous challenges to overcome along the way. These can involve government restrictions and regulations, menu mandates, staffing needs, equipment maintenance, and security needs. Security must be assessed and planned effectively to include CCTV camera surveillance, lighting systems, auto-lock doors, and regular cash pick-ups.
Just because many are willing to jump on the bandwagon of a new trend, doesn’t mean there aren’t risks involved, but the results seem to outweigh the risks. The 2015 QSR state-of-the-industry survey given to hundreds of restaurant operators reported that 15% of respondents said their brand had a food truck of some kind with another 16% saying they were thinking about expanding their business with a food truck(s). Some restaurant owners are considering opening/operating additional sites, separate from their restaurant location, in “new” places. The survey posed the question: “What types of nontraditional locations are you considering?” Topping the list was food courts/shopping malls with 34% of respondents saying they were considering this option. Next was sports stadiums cited by 27% of respondents as potential new sites and trailers, kiosks and food trucks were being considered by 20% of the respondents.
Driving into the Future
The restaurant industry is quickly adapting to the new changes and challenges ahead. In Charlotte, NC, Chow Down Uptown, a showcase of local food trucks, is celebrated on the last Thursday of the month. Hundreds of people grab street food while enjoying live music. In Charlotte’s historic Southend, Food Truck Friday features Wingzaa trucks and a Chrome Toaster school bus. The future of the restaurant industry is on overdrive.