Mobile Food Services
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 10,100 mobile food service operators in the US use food trucks and carts to sell prepared meals, snacks and beverages for immediate consumption to walk-up customers. Mobile food services also contract with individuals and businesses to cater food at events, such as parties, corporate gatherings, and festivals.
Economic Sensitivity
Food trucks that catered to construction sites and industrial parks were hit hard during the Great Recession when construction and manufacturing declined and workers were laid off.
Permit Restrictions
Food trucks are typically permitted and inspected by the city in which they operate, with regulations varying significantly from city to city.
Industry size & Structure
A typical mobile food service firm operates out of a single location, employs 2-3 workers, and generates over $350,000 annually.
- The mobile food service industry comprises about 10,100 companies, which employ about 27,000 workers and generate about $3.5 billion annually.
- The industry is highly fragmented with the 50 largest firms accounting for less than 15% of industry revenue.
- Most companies are small, independent operators - about 83% employ less than 5 workers.
- Immigrants own 30% of America’s food truck businesses, which frequently represent the first step toward launching a restaurant, according to the Bush Institute-SMU Economic Growth Initiative.
- Cities with large numbers of food trucks include Los Angeles, Washington DC, San Francisco, Houston, and Miami.
- Customer industries include individual consumers, event organizers, and businesses seeking mobile catering.
Industry Forecast
Mobile Food Services Industry Growth
Recent Developments
Dec 14, 2024 - Rising Food and Labor Costs
- According to a new Restaurant365 study, food and labor costs continued to be a major pain point for restaurant operators in 2024, with 88% experiencing rising staff expenses compared to 89% in 2023, FoodtruckOperator.com reports. Of operators reporting rising labor costs, 51% reported a 1-5% increase, 41% experienced a 6-14% increase, and 8% saw labor costs rise more than 15%. More than half (59%) of respondents said labor challenges led to operating below their full capacity. As for food, 53% of respondents reported a 1-5% jump in costs, 37% saw a 6%-14% increase, and 10% saw a rise of over 15%. Rising food costs led to menu price increases, with about 61% of respondents saying they hiked prices. Costs are expected to remain a challenge in 2025, with 82% of respondents expecting food costs to increase and 77% predicting rising labor expenses.
- Should a food truck owner trust someone else to drive their truck? “Handing the keys to someone else can be a necessary step for growth. But it’s all about managing the risk,” says Matt Carlson, an insurance broker and VP at Risk Strategies Companies, who insures over 25 food trucks. Before hiring a driver it's essential to check their motor vehicle report, he says. A clean MVR can help secure better auto insurance premiums, while hiring someone with a poor driving record could cause rates to skyrocket or make you uninsurable by some carriers. A rule of thumb, according to Carlson is within the last 36 months, no driver should have more than: 1 violation and two accidents; 2 moving violations and one accident; or 3 moving violations and no accidents. A DUI is a “dealbreaker,” he says. As for insurance, general liability, auto, and workers’ compensation are all must-haves.
- While food truck sales tend to be seasonal with more events and festivals occurring in the summer months, the winter holidays offer opportunity for food truck operators who embrace the holiday spirit, Mobile Cuisine reports. November and December are prime months for retailers with increased foot traffic and consumer spending, according to the National Retail Federation. Ways to boost winter food truck sales include catering holiday parties and corporate events, serving hot seasonal drinks, creating special holiday-themed menus, decorating trucks, and selling at holiday attractions such as Christmas markets, tree lighting ceremonies, and skating rinks. Offering gift cards is another opportunity. While many customers may not think of a food truck as a place to buy gifts, with the right promotion, gift cards can provide a sales boost and bring in new business, according to MC.
- Employment by catering and mobile food services jumped 10.5% in September compared to a year ago, while the average industry wage rose 1.9% over the same period to $23.67 per hour, according to the latest US Bureau of Labor Statistics data. Food trucks' growth in popularity and sustained consumer spending – up 2.6% year over year in June and 0.2% versus May – are driving business and employment growth in the industry. The food-away-from-home index, which measures the price of eating out, rose 3.9% YoY in September, according to the BLS.
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