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Comment by jsmcallister | Hacker News Reader

Surprising numbers in this write-up. Still does not fully explain why most food trucks are charging restaurant-level prices for their dishes. Yes, the overhead is still expensive but at some point, the consumer has to see the reduced overhead filtered down into their prices.

If it's not faster, cheaper or more convenient than the to-go menu at a traditional restaurant, it sounds like "menu buzz" is the only thing keeping most of these trucks in business. How long can that last?

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"the consumer has to see the reduced overhead filtered down into their prices."

I think lack of competition (as described in the article) causes these hyper-inflated prices. If these gourmet organic locavore so-and-so food trucks had to compete in, say, Portland[1], they would have to contend with 30-40 other single-dish trucks in the same pod/lot that provide a heaping, often exotic lunch for 5 bucks.

"If it's not faster, cheaper or more convenient than the to-go menu at a traditional restaurant"

But often it is more convenient. Hypothetically (since I work from home), I would find the food truck at the end of the block of my building to be way more convenient than getting in my car and schlepping to a restaurant (as I would do when I worked at an office).

Or, if you get it delivered, you gotta know what you want in advance, phone them up, make sure you get a drink, wait awhile, tip the driver, etc.

It's a mess. Food truck? Pop down, walk to the corner, buy Korean taco and sugar water. Lunch done.

[1] http://www.foodcartsportland.com/

Maybe I can explain.

It's been mentioned already how trucks are most likely more convenient. I mean, you're eating at that truck because it was closer to you or that you saw it and decided to eat there. I believe the reduced overhead thing is a bit misleading. The startup costs may be different, but the overhead is more than likely the same as a b&m. Apples to apples that is.

At most chef driven trucks, you will get food prepared by the chef himself/herself. Some customers perceive a value in this, hence the willingness to pay the higher prices of some trucks.

However, I do agree that the truck and its food will have to eventually provide a value that will keep a customer coming back. $9 sliders are insane. I've seen this play out time and time again at other trucks because the 'fad' and popularity gets to their heads. Some operators of trucks that have become popular really quickly become shortsighted and cater only to the yelpers who are excited about the latest new thing. They fail to realize that their long term viability is dependent on how well they are able to keep a line outside their truck once these early adopters run for another new thing. Good prices, good food, and fast service is key.

You're likely right, or at least mostly right, about the overheads. I think people who don't have first-hand knowledge of a particular business have a tendency to think that more of the cost is tied up in whatever's most visible than is actually the case. In this case, it's the physical restaurant. In the case of books, it's the physical copy (which is actually pretty cheap in most cases).

> but the overhead is more than likely the same as a b&m

You can't be serious. A food truck costs as much to operate as a B&M? One of the main points of the article is pointing out that's not the case:

As a service that strips all the overhead costs of a restaurant down to the minimum requirements for selling food to customers, food trucks are also an irresistible metaphor for lean startups...

Of course it depends on what b&m you're comparing it to. Some run really lean as well. If you add up the costs (some of which werent covered in that article), it gets pretty close.

Agreed. Every food truck I've visited, from Austin to NYC, had comparable, and often higher prices than a sit-down restaurant or a takeaway place. It's a big let down, because I imagined the food truck movement to be about making good food more accessible (affordable), but now I take it to be more hype and a fad. Once the novelty dies down, I don't think people will keep paying these premium prices and many won't last.

So from your position food has no intrinsic value?

I'm trying to understand the argument. I see it that food has a number of attributes, flavor, dietary compatibility, accessibility, and quantity. And it has a cost. There is an internal 'value' evaluation that is done when the cost is compared to the other attributes which results in a buy/no-buy decision. Sometimes those things are artificially manipulated (like having to buy a $1.50 hot dog at AT&T part for $5 if you want to eat it).

But in all cases the 'cost to produce' doesn't enter into it until you aren't making enough sales to make ends meet. If the food is equivalent between a truck and a restaurant why wouldn't the truck charge a bit more to capitalize on the fact that they are here and if you want it eat it from the restaurant you have to go drive off somewhere to get it?

> If the food is equivalent between a truck and a restaurant

Is it?

Well the only truck/restaurant near me that you could make a pretty direct comparison is CurryUpNow but I have not made such a comparison.

It isn't, but usually not in the way you'd think: in my experience food truck food beats most restaurant food in the same price range.

I don't find (most) food truck food overpriced at all - the food truck "revolution" seems to be almost exclusively centered around gourmet-on-wheels, rather than street-meat.

If you're slinging around stereotypical burgers and fries you will get no business - the successful food trucks around here seem to have struck a balance between eclectic taste and broad appeal, and the quality of the fare is always on par, if not better than, B&M restaurants.

I see your point and I agree. That's fine and well if they want to match their prices to restaurants. It's their business and I'll probably still eat it. My point was that they have the option to lower their prices and attract more customers so I'm not sure why more aren't doing that. If the food truck craze wears off and they are having to compete on an even playing field with full-service restaurants that also offer quick and more consistent to-go food, can they survive?

Granted, my experience with food trucks have been in locations where they are parked in a block with multiple other food options and the convenience factor has been removed.

A lot of B&M restaurants, even nice ones, don't make a lot of money on the actual food. It's the wine and beverage where all the profits happen.

I don't do food trucks a lot, but when I do I don't have a problem with the price, because. . . my favorites are truly better than the middle-of-the-road traditional restaurants in their (less traditional) niche. . .they are still cheaper than the above-average traditional restaurants in their niche. . .and they are more convenient to my office than their traditional counterparts.

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