Economics of food trucks

BY: Denamarie Ercolani

These tough economic times have spurred the popularity of food trucks for low-end entrepreneurs. Opening a food truck costs less than opening a restaurant, but is the risk any less?

It turns out that food truck costs are harder to predict -- gas and food prices are extremely volatile. Basic staples such as rice, corn and sugar are at all-time highs. Meanwhile, the increased worldwide demand and lack of production could cause domestic gas prices to reach $5 per gallon by 2012, according to the United States Energy Information Administration.

The major advantage of food trucks is mobility. The owner has the freedom to find hotspots throughout the city, and move when things cool.

Along with low capital expense – less electricity usage, smaller staffs, less insurance costs, the upside seems huge. But that freedom comes with the cost of transience, most notably the unstable fuel markets that can befoul a bottom line. This volatility could possibly cripple food truck profits.

Denamarie can be reached at tud11959@temple.edu