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Meatballerz food truck owner Cara DeLalla used to pay $40 for a box of single-use plastic gloves.Now she shells out $130.A pound of sausage that cost $2.50 two years ago is now $4.12.She pays her seven employees starting wages from $10 to $14-16 an hour, with pay increases for the first three to six months.When gas prices peaked in mid-June, she paid more than $110 to fill the 22-gallon tank of her food truck.
All of these massively increased costs have forced DeLalla to rethink how to run her seven-year-old mobile food business, which also owns a brick-and-mortar store, Meatballerz, which opened in January 2020.
She saves pennies by buying off-brand packaging and cleaning supplies.She raised menu prices and minimum reservation fees.She invested more in marketing to entice potential customers looking for restaurant-quality dishes at slightly lower prices.
“The bottom line is we want a future, but if we continue to progress the way we are now, we won’t,” she said.
The entire foodservice industry has been hit hard by soaring labor and commodity costs and supply chain disruptions caused by the pandemic, but operating food trucks faces unique challenges in the current economic climate.As mobile operations, they actually run on gasoline.Most customers expect affordable prices.
Food truck owners have little control over gas prices, which last week averaged $4.23 a gallon in the Atlanta metro area, down 13 cents from a week ago and 30 cents below a month ago.But there are a few tweaks mobile operators can make — from where they travel to what they put on their menus and what they charge — that can affect profits.
At the start of the pandemic, many food trucks lost a core customer overnight: office workers.According to Doug Marranci, COO of kitchen concept PREP, the shift to trucks for sales at apartment complexes and for small private events is doing “remarkably well.”Of the 89 food trucks that PREP leased space in the commissary’s kitchen, only three were closed during the pandemic, Marranci said.
“Especially in a pandemic, people are used to the convenience … they’re used to having food trucks in their communities,” Malanci said.”The upside this year is that the demand for people who want or think they want to eat (in) food trucks has grown exponentially.”
Manny Perez, 29, said he would rather pay for food trucks than big chains to support local businesses.During the pandemic, the Chamblee resident dined on food trucks “often”.He’s willing to pay a few extra dollars on a food truck because “I understand their commute and the cost.”
However, Perez expects to pay a few dollars less at a food truck than at a restaurant.So does Payton Rutledge, 27, who likes to support local suppliers and is willing to pay a dollar or two more for a food truck given inflation.
“I want to spend more money at restaurants because you have to pay more staff, tip waitresses, drink more,” she said.
Determining how much they can raise menu prices to offset food costs has been a balancing act for food truck operators.
Ashley Carlton, president of Not As Famous Cookie Company, Atlanta’s first gourmet cookie truck, said the cost of ingredients, including flour, sugar and eggs, was “absurdly high,” forcing him to raise prices twice in the past six months and There may be a third price hike soon.While some customers are willing to pay the 18 per cent price increase, others have cut back on their biscuits, he said.
“Those who understand our product and have experienced it for a while are still willing to pay based on (that) growth,” Carlton said.”New customers may hold back until they try or overhear other people talking about how they like cookies.”
Throughout the pandemic, Superior Vegan’s Sandy Williams said she’s tried to keep prices low on comfort foods like vegan cheesesteaks.But with the prices of vegetables, grains and seasonings now twice as high as they were before the pandemic, she had little recourse but to raise them a few months ago.
Food trucks are already navigating between a 30-100% increase in food costs, according to Tony Harrison, president of the Food Truck Association of Georgia (FTAG) and owner of food trucks at Baltimore Crab Cakes in Atlanta. Menu costs have not increased as a result.
“If the price of wings goes up by 50%, you can’t increase the price by 50% because people will stop coming,” Harrison said.”Our profits are falling right now, and that does make it very difficult to do business.”
In response to a volatile economy, Antoine Smith of food truck SGC Chicken & Seafood makes weekly tweaks to his Southern and New Orleans-inspired menu.As propane prices rose, he added dishes like grilled shrimp and lamb chops to reduce the amount of food that needed to be soaked in the deep fryer.He replaced expensive french fries ingredients like lobster and chicken with chicken to keep the dish affordable and still profitable.
Jace Whitsey, who runs Let’s Taco Bout It, didn’t raise prices or change the menu, even though a carton of chicken breasts went from $60 to $121.Instead, he increased his income stream by selling homemade sauces to the wider market.Despite the lack of answers about how the economy will shape up, customers have made a significantly greater effort to patronize trucks during this difficult time, Whitsey said.
“When people start to understand that we’re not Taco Bell, or that we’re not putting things together, but we actually put the time and effort into every burrito we make, people seem to really appreciate that now more ,”He says.
One business cost that has long affected the bottom line of food trucks is permitting.Food trucks must obtain a mobile food service unit license from the health board of the county in which they operate.To get a license, food trucks must pass a health inspection, which costs thousands of dollars and hours of labor.Harrison said the license fee is between $200-$600, excluding the plan review fee.
In March, the Georgia legislature passed HB 1443, which would allow food trucks to sell food anywhere in the state with a single permit and a faster inspection verification process.The bill, signed by Governor Kemp in May, will go into effect on January 1, 2023.
“A lot of [food trucks] are just a man, a woman show. They don’t have accountants, they don’t have lawyers, they just want to figure it all out on their own,” said Tony, Georgia Deputy State Director for Prosperous American Affairs, who worked with FTAG’s Harrison Tony West said.Lobbying to pass the bill.”Being able to get them an annual license in one go to complete the process and be honored anywhere else in the state is a really big deal.”
But with inflation still an everyday reality about five months into the future, food truck owners are putting some plans on hold.Carlton plans to “wait and see how everything goes” before opening another Not As Famous Cookie Company store.
Whitsey said: “I have a plan with my accountant and we are working on it and by September if things change then I will have to change my prices…because there is not enough money to maintain if I don’t do that and everything will work.”
For his part, Marranci is optimistic that relief is coming.Based on conversations with distributors, he expects food trucks to be fine if they can hold out through September with slightly higher prices.
“We’re painfully aware of what people have in the bank, but it’s not far off that some of these prices will start to come back down,” Marranci said.
Read more stories like this by liking Atlanta Restaurant Scene on Facebook, following @ATLDiningNews on Twitter and @ajcdining on Instagram.
Noah Sheidlower is an intern on the Living, Food and Dining team.He has written about food, culture, and business for CNN, NBC News, The New York Post, and Columbia Journal audiences, and served as the arts and entertainment editor.He also has one of the largest collections of takeaway menus in the world and loves classical music.
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Post time: Jul-20-2022