AUSTIN Texas —Entrepreneurs in this laid-back Texas capital are hitching their dreams not just to stars but to gourmet-food trailers.
While trailers offering gourmet foods are found in isolated numbers around the nation, the number of food-toting Airstream, Wells Cargo and repurposed horse trailers in Austin has exploded in the recent past, as operators look to capitalize on such advantages as lower overhead, ability to follow the crowds and the perception of value for menu items. —Entrepreneurs in this laid-back Texas capital are hitching their dreams not just to stars but to gourmet-food trailers.
Within the past few months, Austin has seen a half dozen new gourmet-trailer eateries literally roll into town. Izzoz Tacos, Holy Cacao and The Mighty Cone are among the newcomers joining such long-established trailer players as Flip Happy Crepes, Torchy Tacos, Kebabalicious and Hey, Cupcake! —Entrepreneurs in this laid-back Texas capital are hitching their dreams not just to stars but to gourmet-food trailers.
“From a business perspective, the Airstream idea is attractive to operators who want to focus on an unpretentious but quality-driven product,” said David Denney, a Dallas lawyer who specializes in foodservice clients. —Entrepreneurs in this laid-back Texas capital are hitching their dreams not just to stars but to gourmet-food trailers.
“You can’t possibly be pretentious when serving cheese steaks, tacos or crêpes out the window of a trailer–but the food had better taste great,” Denney said. “Further, the trailers themselves can be easy to come by and don’t require much capital in the way of renovation–certainly nothing near the $110 per square foot or so you’d spend to finish out a fast-casual restaurant.” —Entrepreneurs in this laid-back Texas capital are hitching their dreams not just to stars but to gourmet-food trailers.
Austin is not the only city where operators are taking their shows on the road. From Tour de Crêpes in Portland, Ore., to Daisy Cakes near the Farmer’s Market in Durham, N.C., these restaurants on wheels not only offer their backers lower costs, but also an opportunity to express a more laidback creativity than traditional brick-and-mortar restaurants. —Entrepreneurs in this laid-back Texas capital are hitching their dreams not just to stars but to gourmet-food trailers.
Pedestrian-friendly areas seem to show the most promise for these trailer eateries, such as Austin’s South Congress neighborhood, the downtown of Roanoke-Fredericksburg, Va., and the riverfront in Nashville, Tenn. —Entrepreneurs in this laid-back Texas capital are hitching their dreams not just to stars but to gourmet-food trailers.
“These ventures thrive in areas such as town centers or where there is a great deal of foot traffic–places where people can nosh and walk around with a beer in hand,” Denney said. —Entrepreneurs in this laid-back Texas capital are hitching their dreams not just to stars but to gourmet-food trailers.
In Austin, in particular, the gourmet-food trailer race is heating up. Total mobile food trailer permits rose from 699 in fiscal 2007 to 803 in fiscal 2008, and the total for this fiscal year, which will end Sept. 30, is already up to 866, said Sue Simons, consumer-health supervisor for the Austin/Travis County Health Department. —Entrepreneurs in this laid-back Texas capital are hitching their dreams not just to stars but to gourmet-food trailers.
And operators note that they are profitable as well as popular. Fourth-generation chef John Galindo, who opened his Izzoz Tacos the day after Christmas, anticipates his return on investment is nearing 18 percent. The former owner of the Cedar Grove Steak-house in Wimberley, Texas, and a former chef at NoRTH in Austin, said traditional restaurants generally see a return of 9 percent. —Entrepreneurs in this laid-back Texas capital are hitching their dreams not just to stars but to gourmet-food trailers.
“This is just a great way to express some creativity and really enjoy what you’re doing,” said Galindo, while standing outside of his 42-foot blue former horse trailer. “Izzoz” is short for “mellizos,” the Spanish word for fraternal twins, in honor of Galindo’s sister’s children. —Entrepreneurs in this laid-back Texas capital are hitching their dreams not just to stars but to gourmet-food trailers.
His trailer is parked on a triangular lot on South 1st Street, with picnic tables overlooking Bouldin Creek. Galindo, who started working in restaurants at age 12, offers a menu that includes a blackened tilapia torta with fresh-cut fries and a variety of tacos from $1.75 to $4. —Entrepreneurs in this laid-back Texas capital are hitching their dreams not just to stars but to gourmet-food trailers.
“I can keep my prices a bit lower because my overhead is so low,” Galindo said. —Entrepreneurs in this laid-back Texas capital are hitching their dreams not just to stars but to gourmet-food trailers.
These entrepreneurs are finding their mobile restaurants in a variety of locations, even from eBay or Craigslist, where they can be purchased for as little as $5,000. —Entrepreneurs in this laid-back Texas capital are hitching their dreams not just to stars but to gourmet-food trailers.
Such a Craigslist find became Holy Cacao, which shares lot space with Izzoz Tacos. —Entrepreneurs in this laid-back Texas capital are hitching their dreams not just to stars but to gourmet-food trailers.
“We’re in an old taco trailer that we found on Craigslist,” said John Spillyards, co-owner of Holy Cacao. “We completely renovated it, down to the granite countertops.” —Entrepreneurs in this laid-back Texas capital are hitching their dreams not just to stars but to gourmet-food trailers.
Spillyards, who is in the machinery business, opened Holy Cacao in March with his partner, Ellen Kinsey, who has a master’s degree from the Wharton School of Business. —Entrepreneurs in this laid-back Texas capital are hitching their dreams not just to stars but to gourmet-food trailers.
“We could have gone the brick-and-mortar direction, but for significantly less overhead we were able to open this,” Spillyards said. To reflect their Austin style, they hired local artist Claire Hees to paint murals on the trailer. —Entrepreneurs in this laid-back Texas capital are hitching their dreams not just to stars but to gourmet-food trailers.
Holy Cacao offers gourmet hot chocolates, frozen drinks and “cake balls,” which are cold, chocolate-dipped cakes on a stick for $1.50. —Entrepreneurs in this laid-back Texas capital are hitching their dreams not just to stars but to gourmet-food trailers.
“We thought we would sell a couple hundred cake balls a day and a few chocolates and milkshakes,” said Spillyards. “We have gone from 200 cake balls a day to 500 and then to over 1,000. The response has blown us away.” —Entrepreneurs in this laid-back Texas capital are hitching their dreams not just to stars but to gourmet-food trailers.
For culinary expertise, they hired as executive chef Mary Margaret Higdon, a Culinary Institute of America graduate. They also rely on advice from Spillyards’ sister, Cammie Spillyards, who is director of culinary innovation at the Chili’s Grill & Bar chain. —Entrepreneurs in this laid-back Texas capital are hitching their dreams not just to stars but to gourmet-food trailers.
“We’re always looking at new menu items,” Kinsey said. —Entrepreneurs in this laid-back Texas capital are hitching their dreams not just to stars but to gourmet-food trailers.
Spillyards said the recession makes gourmet trailers a popular alternative not only among investors but consumers as well. —Entrepreneurs in this laid-back Texas capital are hitching their dreams not just to stars but to gourmet-food trailers.
“In a day when economic times are tight, a consumer may not be able to go have a $9 piece of pie at a restaurant,” he said. “But for a buck and a half, I can have a really nice luxury dessert. People still want those luxuries, but this is a way it can be delivered at a significantly lower cost.” —Entrepreneurs in this laid-back Texas capital are hitching their dreams not just to stars but to gourmet-food trailers.
Just a few blocks away on Austin’s South Congress Avenue is an entire block front of gourmet trailers, offering six diverse menus ranging from popcorn to Austin’s popular Hey, Cupcake! —Entrepreneurs in this laid-back Texas capital are hitching their dreams not just to stars but to gourmet-food trailers.
The Mighty Cone opened there in March and touts its familial relationship to the esteemed Hudson’s on the Bend fine-dining restaurant. Mighty Cone is a creation of Hudson’s owner Jeff Blank and executive chef Robert Rhoades. The trailer offers chicken and shrimp “meat cones” as well as sliders, giving customers a chance to sample Hudson’s fare for less than $10 a sitting. —Entrepreneurs in this laid-back Texas capital are hitching their dreams not just to stars but to gourmet-food trailers.
The popularity of Austin’s trailers is gaining the attention of established multiunit operators. —Entrepreneurs in this laid-back Texas capital are hitching their dreams not just to stars but to gourmet-food trailers.
Jeff Sinelli, founder and chief executive of the Dallas-based Which Wich sandwich chain, said a franchisee in College Station, Texas, is investigating creating a satellite trailer location because of the seasonality of university business. —Entrepreneurs in this laid-back Texas capital are hitching their dreams not just to stars but to gourmet-food trailers.
“We can use the original store as a commissary and set up the trailer as a mobile outpost with the ability to move it to special events,” Sinelli said. “We attach it to the actual physical store. As a franchisor, we love it because it grows our sales. —Entrepreneurs in this laid-back Texas capital are hitching their dreams not just to stars but to gourmet-food trailers.
“We’re still costing it out, but the cost is a quarter of a what a brick-and-mortar restaurant will cost,” he said. Currently, he said he projects a brand-new trailer, such as a Wells Cargo, outfitted for foodservice, to be $100,000, give or take $25,000. —Entrepreneurs in this laid-back Texas capital are hitching their dreams not just to stars but to gourmet-food trailers.
“Anytime you reduce your footprint, you can reduce your labor,” Sinelli said. “You can capitalize on large events with their high sales. If a location doesn’t work, you have the mobility to move it across the street, so to speak. And fun is an advantage: It’s hip; it’s fun. Customers feel they are supporting the ‘little guy.’” —Entrepreneurs in this laid-back Texas capital are hitching their dreams not just to stars but to gourmet-food trailers.
Sinelli said the gourmet trailers fit in well in Austin, which has what he calls an “artsy-entrepreneur feel. The Airstream works well for that. There’s a slogan there of ‘Keep Austin Weird,’ and that works.” —Entrepreneurs in this laid-back Texas capital are hitching their dreams not just to stars but to gourmet-food trailers.
Denney said those looking at gourmet trailer foodservice should consider a number of factors that might impact operations. Among them are dealing with inclement weather, accommodating some seating, ensuring foot traffic, learning how to run an efficient kitchen in such a small space without harming quality, obtaining adequate utilities, and creating a sense of permanence despite the restaurant’s mobility. —Entrepreneurs in this laid-back Texas capital are hitching their dreams not just to stars but to gourmet-food trailers.