Have you ever been at a festival with food trucks and wondered, “How on earth is my burger, fries and a drink over $20?” Answer: it is not the food truck. Event organizers are now charging up to 40% of a food truck’s gross sales to participate in their event. Participation fees for food trucks used to be 10%.
Food trucks, like many restaurants, operate on very small margins. After a food truck owner pays for food, employees, food truck and commissary rent, propane, gas, insurance and incidentals they’re typically left with about 10-15% profit. Well attended events with big sales numbers will increase the margins a bit, but not enough to justify a 40% fee. So what happens? Food trucks must pass along a portion of the participation fee to the customer so they don’t lose money on every order. The public, understandably, sees these higher prices and mistakenly assumes the food truck is taking advantage of the customer’s attendance. We’ve seen terrible Yelp reviews that start off with: “I used to like this truck, but then they overcharged me at an event and now I won’t go back…”
Customers who are already paying the high costs for a ticket shouldn’t have to pay exorbitant prices to get a meal while enjoying an event. Food trucks provide a great service to outdoor festivals. The eclectic food options and the ability to serve anywhere makes them the perfect choice for large scale events. But the food truck industry is successful because food trucks bring great meals to the public at reasonable prices. Unfortunately, when food truck owners are forced to pay 40% to be part of an event they have to raise their prices to a level that most food truck owners find unacceptable. The question I hear most often is, “why don’t food truck owners just skip the high fee events?” Food trucks have to get out and do business. They can’t pass up events, especially in the areas that have a short season. Food truck owners have to get while the getting is good. They would most definitely prefer to do the events and charge their normal prices.
So what can the public do? If you see an awesome food truck event, why not try asking the organizers via social media how much they’re charging food trucks to attend? Currently, organizers aren’t blamed for the high cost of food because it’s not clear how much they’re charging the trucks. Instead, the blame for high prices falls directly on the food truck owners. If the public joined with food truck owners and demanded that organizers lower their fees, food trucks could charge their normal (or close to normal) prices. Let’s bring down the price for food this upcoming event season. #driveforfairness
By Matt Geller
SoCal Mobile Food Vendors Association / National Food Truck Association
Keep Reading
All Stories →How Food Truck Operators Are Building Steady Income Through the BFT Home Depot Program
Best Food Trucks has completed nearly 4,000 shifts at Home Depot locations nationwide. Here is how the program works and what operators need to join.
What Good Food Truck Regulation Looks Like, and Why Kansas City Got It Wrong
Kansas City's new 300-foot restaurant proximity rule is the wrong approach. Here is what sensible food truck regulation actually looks like for municipalities.
Corporate Catering Is Back. Is Your Food Truck Ready?
The return to office is real, and it has created one of the biggest opportunities for food trucks that the industry has seen in years. Here is how to land corporate clients, build recurring revenue, and compete for office catering bookings.