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?
"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.
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.
> 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.
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).
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?
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.
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 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.
I agree. I don't think there's any comparison between TurnTable and other Internet radio. It is a full-on experience - more closely resembling a video game than a music radio.
1) DJ Wooooo's House/Dance/Electro
2) Indie While You Work
3) Ambient Chillout & Trip Hop
4) mashup.fm
5) Dubstep
6) Trance Out!
7) Coding Soundtrack Lounge
8) #AnonFM
9) Indie Discotheque
10) Chillout Mixer, Ambient & TripHop
11) ThePhish
12) Hip Hop official
13) Hot Hitz
14) Chill or Be Chilled
15) WeHaveRobotEars.com Trance
16) Hater Free R&B and HipHop
17) Alt Nation
18) The Trap Train
19) Electronic Dance Music
20) club meem
Skrillex is more like a ghost that hangs around keeping the corpse shambling.
That said, serving well a pop music base is probably what drove away the cultured, eclectic sound seekers. There ain't much for nuance in the top channel listings.
That that said, the long tail still sometimes has some amazing yet small rooms, for those who don't mind the exploratory deep diving.
This is actually the first I've heard of turntable.fm (admittedly I live under a rock sometimes). All of these comments made me want to check it out until I got to this one. Literally none of these stations appeal to me based on their titles. I'll still probably check it out when I get home to see if there are any active rooms or djs with a similar taste to me.
How easy/difficult is it to find rooms/djs who might fit your taste? Every internet radio service I've ever used got very stale from replay within a month or two of heavy use.
When TurnTable first launched, I was on there as a DJ almost every day. That feeling was flat-out amazing the first time I was "on the stage" in front of a large audience and everyone enjoyed my song selections. A+ experience.
However, the amount of time needed to curate your playlist and tailor songs for each crowd was extremely tiresome. It is literally a full-time job to be on the stage for a few hours. The "in-room" listening experience was not always great either. Songs were rarely "nexted" and I would find myself changing rooms more often than not.
Honestly the most enjoyable time I had on TurnTable was in a private room with 5 friends. Just casually listening to the same music while all in different offices was a great function. Other music services need that.
I just went back to check out TurnTable... and it looks like the "power-users" killed TurnTable. There is a link in the majority of the rooms like the below telling people what to play and what not to play. Freedom was the essential ingredient in TurnTable.
If you want an anything goes room you can always create your own. The Indie While You Work room has those rules because certain songs were becoming overplayed, and Nexting doesn't work there since most people are passive listeners (because they are working).
It does look like most rooms have several rules. As I remember, it became a norm. Mostly as a reaction from random users getting on the decks and playing absurd stuff to kill the room's vibe. We could call them trolls.
Edit: I clicked on the spreadsheet. Having a music black list is pretty extreme. I thought you were referring to room rules; like, only playing five songs then stepping down or having a list of who is up next.
Re: Trolls - on a meta/tangential note it does seem like "troll management" (aka moderation) could alternatively be called governance - it's essentially what keeps libertarian ideas in the fantasy realm - anything involving large numbers of people undoubtedly requires extensive rules in order to keep things stable (whether they're explicit rules as in managed systems, or implicit rules where avoidance of external authorities is what keeps people in line - ie, torrent culture).
Since it looks like InstaCart people are posting ITT, what are your plans to spread this business model into other cities. Is it viable in a place like Atlanta, GA where residential areas are less-concentrated?
Off-topic, but I don't think Whole Foods really qualifies as a "yuppie chain" anymore. I feel like they've successfully transitioned to a full-blown grocery store for people who want to live an organic lifestyle, which is no longer a small-market trend.
I don't think it has anything to do with size really, it's more about the variety of people who shop there. I don't shop there often, but the times I have, I have noticed the people shopping there weren't exactly representative of the general population.
No matter how much you make, going to Starbucks for a latte every single day seems innocuous. I get a grande vanilla or a grande gingerbread (during the holidays). I think it's about $3.75. It becomes a habit, I get one 25 out of 30 days. That's $100 a month, which translates to $1,200 a year which translates to $7,200 over 5 years - which is more than most people will even put away into savings over that same time.
THE most important thing to securing your financial health is getting control of a monthly budget for variable expenses like groceries, lunch, dinner, Starbucks, drinks, gas, shopping, entertainment, etc. The more-specific the better. Then work on whittling that budget down or trying to be under as much as possible.
Absolutely agree with this. In fact, something worth trying out that's worked for me is getting a no thrills prepaid debit card with minimal to no fees.
I fund my card from my main checking account with a pre-allocated amount of allowance money that I've budgeted. Whatever I don't use that month rolls over to the following month.
I find that when I have 'my money' (vs the money I need for bills and such...) I end up saving much more. Especially so when the money on the card is low and more comparable to my daily low cost expenses such as the ones you've listed.
I just did this two weeks ago in mint. It's crazy to see how packing your own lunch and skipping coffee every morning can add up to hundreds of extra dollars saved every month.
Instead of skipping coffee, buy a nice travel mug (that keeps your coffee hot) and brew from home before heading out. My travel mug keeps coffee made at 7.45 warm until around 9 before becoming undrinkable. In addition, you'll be able to explore more expensive brands/roasts at low costs and find some new favorites!
You could just invest in a coffee maker / french press. You could still have you coffee in the morning without the much expense (just the capital investment in the equipment).
