Business

Food Trucks: Profitable or Not?

Food trucks are a good business for some, but not all, who choose to sell their fare on four wheels.

Take Big Gay Ice Cream, for example. In September 2011, that eatery swapped its leased trucks for a brick-and-mortar storefront in the East Village.

“We wanted more control,” said Patty Devery, office manager for Big Gay, which had rolled out its food trucks in 2009.

On the other hand, Isaac Joseph decided that Crif Dogs, which has three brick-and-mortar shops, would do well by putting three food trucks on the street, too.

“[The truck] is a tool for the business. It helps us branch out and test model locations for possible new stores,” said Joseph, part owner of Crif Dogs, whose storefronts are in Manhattan’s East Village and West Village neighborhoods and Brooklyn’s Williamsburg neighborhood.

Even though Crif Dogs also sells it food from trucks, Isaac shares Devery’s view that food trucks have to contend with a lot to stay on the road.

For one thing, license, permit and other fees can be as high as $20,000.

The New York City Department of Health and Mental Hygiene’s maintains eight separate waiting lists for applying for a mobile food-vending permit, separating them by borough, term during which the permit is valid, whether the applicant was a military veteran or has a disability.

Given those and other factors, Crif Dogs’ Joseph said, “I don’t see this trend growing as much in the future as it did in the last few years. Four to five years ago, food trucks were the hottest things in the restaurant business. But it is extremely expensive and elusive to get a food vendor license.”

To help keep his company’s food truck fees lower than they would otherwise be, Crif Dogs uses its truck solely for catering and events. That also helps the business maintain a captive audience, Joseph said.

Events such as Governor’s Ball NYC Music Festival allow Crif Dogs to avoid competition from other hot dog vendors because two trucks selling the same cuisine are never booked for the same event.

“Most food trucks randomly go out, but it is important to know your target audience,” Joseph said. “A food truck in the middle of Times Square wouldn’t be good.”

A “miniscule” percentage of Crif Dogs’ profit comes from the food trucks, Joseph said.

When people ask him advice on opening a food truck, he tells  them to “be cautious.”

Food trucks may look like a craze, he added, but they can be tricky business.