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scratch truck

Take a food truck to Chicago and you may be required to attach a GPS tracking device to it. Maneuver afood truck through New York and be prepared to possibly limit drink sizes to 16 ounces.

Park a food truck in Indianapolis and enjoy being able to do business in an environment of few regulations. The labor laws and health codes that govern restaurants apply to food trucks, but owners do not have to worry about extra requirements like tracking systems and operating only in specific zones.

Indeed, the lack of regulations is credited with helping to foster the growth of the industry in Indiana’s capital city from essentially one truck in 2010 to 47 trucks and counting today. To sustain the comparatively cart blanche atmosphere, a loose coalition of food truck and some brick-and-mortar restaurant owners are trying to work together to avoid the kinds of disputes that could inspire city hall to cook up a new ordinance.

“Restaurateurs are not by nature people who ask for more regulation,” said John Livengood, president of the Indiana Restaurant Association.

Crystal Williams, an associate at Barnes & Thornburg LLP, has become familiar with

the differing regulations as part of her work assisting national restaurant chains that are expanding into the food truck sector. She emphasized these established eateries cannot arrive in a city, flip open their truck, and start serving food. Rather they have to adjust their operations to comply with the unique codes of each community.

For example, Chicago does not allow food trucks to cook on board or park within 200 feet of a restaurant. However, Indianapolis permits food trucks to station themselves in any valid parking space and cook on board but prohibits the sale of food on public property between 10 p.m. and 6 a.m.

The patchwork of requirements can be confusing and frustrating, but Williams does not expect a call for national regulations regarding food trucks. Each city, she said, knows what it needs and fashions its ordinances accordingly.

A business is a business

When he sketched out his business plan for his food truck, Matt Kornmeyer, owner of the Scratchtruck, admitted he planned for failure. He thought he would need at least 40 customers at lunch each day to survive, but he now averages between 70 and 100 customers and is three years ahead of his revenue targets.

“I still don’t get it,” Kornmeyer said of the popularity of food trucks. “I’m right in the middle of it, and sometimes I sit and shake my head and say, ‘Look at all the people.’”

That kind of success is spurring the growth of food trucks across the United States and luring chain restaurants like Chick-fil-A, Subway and Taco Bell to put trucks on the street.

“I think it’s becoming a new way we are consuming food,” Williams said. “I think it is becoming a middle ground between a large, fancy restaurant and fast food.”

However, Williams cautioned against the assumption that success in the food truck industry comes easy. Owners have to be aware of not only the regulations specific to mobile vendors but also of the laws and requirements, like local employment laws and intellectual property safeguards, that apply to any business operation.

Find the entire article by Marilyn Odendahl at theindianalawyer.com <here>

 

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A street fight is brewing between gourmet food-truck vendors and restaurants—not over the grub, but how it’s sold.

fight

Under pressure to protect bricks-and-mortar restaurants from increased competition, several big cities are starting to apply the brakes on a rising tide of food-truck vendors with fully loaded kitchens.

Boston, Chicago, St. Louis and Seattle are among the cities enacting laws that restrict where food trucks can serve customers in proximity to their rivals and for how long. Some food-truck operators argue that they shouldn’t be punished for offering an innovative service, especially since many cities already allow restaurants to open up alongside one another.

“The rules are unfair,” says Amy Le, owner of Duck N Roll, a food truck in Chicago serving Asian-style cuisine that includes short ribs and mango lychee.

Three weeks after she launched the business last fall, she received a ticket from local law enforcement for doing business about 150 feet from a wine bar—50 feet within the city’s limit for how close food trucks can park outside of retail food establishments.

Ms. Le says she later had to spend nearly a full day in court to find out what the violation would cost her—about $300—and that she lost an estimated $600 to $700 in sales as a result.

“The 200-foot buffer prohibits me from competing,” says Ms. Le, 32 years old, who also opposes a new rule requiring food trucks to install global-positioning devices so the city can track their whereabouts. “It is a free market. Let the consumers decide when and where they want to eat.”

Tom Alexander, a spokesman for the city of Chicago, says the new ordinance “is a workable compromise” that includes the addition of 60 free parking spaces in high-traffic areas for food trucks. “[It] reflects everybody’s interests,” he says.

Gourmet food-truck operators say another problem is that in many cities they are still relegated to antiquated rules intended for ice-cream, hot-dog and other traditional mobile vendors with smaller and less complex menus.

New Orleans, for example, requires mobile food vendors to change locations after 45 minutes in one spot, among other restrictions.

“It’s not a feasible amount of time for this business model,” says 31-year-old Rachel Billow, who last year co-founded La Cocinita, a food truck that serves Latin American cuisine such as plantains and arepas. “It takes about a half-hour to set up.”

Ms. Billow says she and her business partner, Venezuelan chef Benoit Angulo, started La Cocinita after several years of working in the restaurant industry. They invested $50,000 in start-up costs, an amount that included $12,000 in modifications to their vehicle to satisfy the city’s fire code, she adds.

Find the entire article by Sarah Needleman at The Wall Street Journal <here>

 

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