VANCOUVER, CANADA – Although 44 per cent of Metro Vancouver and Victoria residents have eaten at a food truck in the last year, the local industry is struggling and has nearly reached an estimated 80-per-cent turnover of vendors, says a new report by Vancity credit union.
The report, Keep on Food Trucking: Supporting the mobile food service industry in Metro Vancouver and Victoria, found that while consumers enjoy the growing food truck phenomenon and most municipalities see the benefits of the industry, food trucks face many challenges with regulations, licensing and cost structure that hinder their profitability and success.
The report found:
- There are an estimated 305 food trucks in Metro Vancouver and Victoria with annual revenue of roughly $50 million.
- The three health regions in Metro Vancouver and Victoria have seen a 40-per-cent increase in health permits to all types of mobile food vendors during the last five years.
- Food trucks are growing the overall market value of the food service industry – almost 40 per cent of food truck customers would have either eaten at home (28.7 per cent) or skipped the meal completely (10.7 per cent) had they not eaten at a food truck.
- The average profit for B.C. mobile food service businesses is only $31,300 and 29 per cent are not profitable.
Along with providing recommendations for food truck entrepreneurs and customers, the report stresses the need for municipalities to take action. To foster a thriving food truck industry, municipalities need to reasonably address the competitive threat to local restaurants, extend mobile business licensing to mobile food vendors, be fair and reasonable about locations, and address the need for commissary kitchen space.
Find the entire report at vancity.com