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by c3 4839 days ago
This article looks fairly accurate (for what I understand of the SF market) Things are a fair bit cheaper/easier in Portland. I do actually own a food truck in Portland (as well as a software company).

We made a profit on about three different days last year. The other 300 were not profitable :( It would have helped a lot if we had family members working for chips and hugs; paying staff is a huge cost particularly if you want quality gourmet-style food and hard-working employees (we have mostly 5-star yelp reviews)

Before our pod landlord decided to shut down abruptly, combined with our chef/my girlfriend getting diagnosed with brain tumors, it was costing about $3k/month (net loss) however that's the awful wet northwest winters driving people away from outdoor pods. Once the warmer weather starts back up again and we find a new pod, we should be in the black, but the business model I'm working on involves a lot of carts with a central kitchen, in clusters in a few cities. If anyone wants to chat about investing, let me know :)

We got started for about $20k total including the 'truck' which is actually a trailer that is stationary.

obligatory link, http://theheartcart.com

3 comments

but the business model I'm working on involves a lot of carts with a central kitchen, in clusters in a few cities.

As someone who knows an awful lot about the food truck industry in multiple cities across the US, please, please do not proceed with this idea. Food trucks are not an economy of scale. They are boutique mom & pop businesses.

I am sorry to hear about the troubles with your truck, but I am sure that you can optimize operations to become profitable on most days.

Hmmm do I know you?
Nope.. I got into the LA scene a bit late (closer to your food truck's retirement date).
I commented on the article to explain that Portland is pretty different due to the differences between 'trucks' and 'carts.' Obviously a cheaper trailer without high fuel costs makes getting started a little easier, and I suspect our permits are a bit cheaper as well. All that equals more carts out there competing for business.

The interesting thing that I've heard about here in Portland is that at the bigger pods, landlord tenant contracts include agreements not to allow potential competitors to lease, include restrictions on style of food, i.e. landlord not allowed to lease to a second Thai cart on the same lot.

The food in the article and your food seem quite involved and niche (Thai, vegan, Nordic). Does a cart like Potato Champion do better because the food is easier to produce and everybody likes French fries?
Even Potato Champion serves some niche foods though, with Poutine and their fancy ketchups/aiolis. I think you're probably right, though, in that Potato Champion seems to have hit the sweet spot between niche/broad appeal in their market.

It also probably helps that potatoes are cheap.

I don't know much about the business, but it seems like all the food trucks in my area in Colorado are niche foods. Occasionally there are events when food trucks show up at local parks, and there is a wide variety. There is usually several types of ethnic food, a truck or two with food sourced from a local organic farm, and a truck from a local brewery. It seems like food trucks appeal to the type of person who shops at Whole Foods or Trader Joes. In fact I think I remember seeing a truck serving food from peru or brazil, when Mexican food would be less niche. Because Colorado has a bunch of immigrants from Central America and has a number of Mexican restaurants.
Thai is pretty mainstream in Portland, from what I remember.