Food Trucks

Kogi Barbecue, a pioneer in the food truck space, gained notoriety because it was one of the first and most successful cases of restaurants using Twitter. It was a very fast turnaround from its inception in 2008 until food trucks were being listed as one of the most influential restaurant trends noted in industry trade publications. While its growth has ebbed and flowed over the years, the unit economic model remains attractive.

  •  In the U.S., food truck sales are expected to reach $996m by 2020 (an increase of 16% since 2015), and much of the growth in the category is making up for losses from stalls and kiosks in malls
  • Traditional brick and mortar chains such as Taco Bell, Olive Garden, and Chick-fil-A have used food trucks to sell their products or test new items
  • Startup hard costs (relative to buildout, equipment, etc.) for food trucks can be as low as one-third of a traditional location buildout, and operating expenses (with fewer permits, no property tax, lower maintenance costs, etc.) can reduce costs as much as 25% compared to standard restaurants

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