MEALS ON WHEELS
Trendier than ever
According to Donald Batal, CEO of Ministry of Food, the company which owns Classic Burger Joint and Tomatomatic pizza, food trucks are a convenient alternative to kiosks and mobile carts. They also offer a much better quality food experience. “If this trend has been picking up during the last couple of years in Lebanon and in the region, it is because it is synonymous with public events and fun activities.” He believes it is a good way for brands to benefit from the crowd concentration.
Difficulties and challenges
Despite the trend, newcomers are facing regional challenges. According to Chris Gauci, general manager of Dubai-based Hippops, the industry in the Arab world is poles apart from that in Europe or in the US. Demographics are different, and the hot weather conditions are undesirable. “Elevated temperatures do not make street food very successful. The streets have low footfall during the day, which is not favorable for a business relying on street traffic.”
Truck vs. Restaurant
According to Batal, the cost of a truck varies depending on specifications and quality. “I would not say it is expensive or economical, but it is definitely a considerable investment, which requires a business plan and feasibility study.” Some trucks could cost as low as USD 20,000, however they might not be properly equipped and might not follow the food hygiene and safety standards. "Our trucks cost more than five times that amount." Batal added that the cost of a proper food truck is less than their full-fledged restaurants, but it has its advantages and challenges. “One of the advantages is the wider range of models it gives to our brand. I can say that today we operate in standalone residential areas, business districts, seasonal outdoor locations, shopping centers and mobile truck model; this gives us the agility we need in today’s markets.”
It is difficult to compare budgets dedicated to launch a regular standalone restaurant versus a truck, though the latter is somewhat cheaper. According to Sikander Aziz, the owner of Dubai-based The Mob Truck, trucks are getting more acceptable as a business model. However, customizing these trucks is expensive. “You would be managing and running a kitchen on wheels,” he said. He explained that a truck could cost USD 175,000, which is compared to a 70-seat restaurant. However, they could manage to sell for around AED 25,000 (approx. USD 6,800), which is really impressive. They have also reached 900 orders per day. Their sandwiches range between AED 15 to AED 30 (approx. USD 4 to USD 8). He commented that a truck must be affordable to be able to sell, especially during its first year of operation, when it is building its image. “We don’t have rent for the year, as compared to a regular restaurant. As long as the engine is functioning, your kitchen is operational,” he said, adding that the truck’s engine lives for up to eight years.
Regulations
The food truck industry has been facing a major obstacle, which is the lack of a regulatory licensing system. Many countries used to ban their activities. A regulation is currently in process in Beirut to legislate the activities of food trucks. A source at Beirut’s governorate said that the regulation will include hygiene and health requirements, as well as the truck’s track and mobility status, among other criteria.
Food trucks are growing exponentially, as entrepreneurs and foodies are using them to debut in the industry. Established brands, especially fast casual operations, are rolling their wheels as they tackle new markets, both fashionably and off-the-cuff