LOS ANGELES —The mobile vending craze is switching into a new gear: franchising.
As consumers continue their infatuation with gourmet fare on wheels, some mobile vendors are working to roll their success forward by replicating their trucks through licensing and franchise deals. —The mobile vending craze is switching into a new gear: franchising.
Earlier this month, the Calbi Fusion Taco and Burrito truck debuted at the West Coast Franchise Expo in Los Angeles. Calbi is a Korean taco concept that first hit the streets of Los Angeles in May, and was more recently acquired by Baja Fresh Mexican Grill chief executive David Kim and investors. —The mobile vending craze is switching into a new gear: franchising.
Among the growing number of what some food bloggers have dubbed “vendrified”—or gentrified street venders—Calbi is one of the first to register as a franchise concept, but more are planning to take that road. Among those, the operators of the organic-fare vending Green Truck, with about six trucks cruising the streets of Los Angeles, are testing the waters in New York City with the goal of franchising on the East Coast soon. —The mobile vending craze is switching into a new gear: franchising.
Supporters of the idea say franchising a truck concept is particularly appealing given the slowed economy: There’s a low cost of entry, low overhead, a need for few employees, and the flexibility to move wherever consumers are hungry for meal deals. —The mobile vending craze is switching into a new gear: franchising.
Others say the gourmet truck movement is a fad without a proven business model and that maintaining quality will be more difficult with a fleet of mobile franchisees. They also note that the Wild West of street vending is more likely to attract risk-taking entrepreneurs with a passion for their own concept, than franchisees willing to take on someone else’s. —The mobile vending craze is switching into a new gear: franchising.
“Franchising another person’s concept is antithetical to the type of person who wants to hop on a truck and see what they can do,” said Josh Hiller, an attorney and partner in Road-Stoves, a Los Angeles-based company that offers mobile catering trucks and support services. —The mobile vending craze is switching into a new gear: franchising.
The fact that an experienced, deep-pocketed investor like Kim sees an opportunity with Calbi says a lot, however. —The mobile vending craze is switching into a new gear: franchising.
Kim is already franchising a number of other concepts, including Baja Fresh, La Salsa Mexican Grill, Canyons Burger, Cinnabon and Sweet Factory candy shops. —The mobile vending craze is switching into a new gear: franchising.
The Calbi truck was founded by Ok Ju An with his wife Insook An, who developed the concept’s recipes based on traditional Korean dishes. Ok Ju An, who operates two Calbi trucks in Los Angeles, now serves as chief operating officer for the brand. —The mobile vending craze is switching into a new gear: franchising.
Bloggers have long pointed out the similarities between Calbi and the hugely popular Kogi food truck, which is credited with pioneering the modern mobile food craze in Los Angeles with its Korean tacos. So far, Kogi officials have declined offers to franchise. —The mobile vending craze is switching into a new gear: franchising.
Gene Savage, director of franchising for Calbi, said the truck concept would appeal to franchisees looking to capitalize on the tidal wave of interest in mobile street food, as well as those looking for low start-up costs. —The mobile vending craze is switching into a new gear: franchising.
To get a truck on the street, Savage estimated costs would range between $250,000 and $275,000. Candidates must have a net worth or liquid cash of about $100,000 to $150,000, he said, and lease-to-own financing options are available for the trucks. —The mobile vending craze is switching into a new gear: franchising.
Royalties are 5 percent and the initial franchising fee is $50,000. Training by the franchisor includes help with the licensing and permits required for carving out a “territory,” Savage said. —The mobile vending craze is switching into a new gear: franchising.
The company also said it has relationships with suppliers and vending vehicle lot operators, where the trucks must park at night for cleanup and restocking. —The mobile vending craze is switching into a new gear: franchising.
Hiller of Roadstoves, who also served as an attorney for the Kogi truck, was skeptical of Calbi’s start up costs. “I’m not saying a franchise model won’t work, but a $250,000 cost up front? That’s a big hole to get yourself out of,” he said. “People who want to get into mobile food are not rich people.” —The mobile vending craze is switching into a new gear: franchising.
Roadstoves estimates start up costs to be closer to $10,000 to get into a leased truck, but Hiller said he likes to see operators with $30,000 to $40,000 in capital to “weather the storm.” —The mobile vending craze is switching into a new gear: franchising.
The operators of Green Truck are still in the planning stages of franchising and have not yet determined start up costs, said Marc Bruderer, an investor partner. —The mobile vending craze is switching into a new gear: franchising.
Green Truck has about six trucks on the road around Los Angeles and is currently testing a truck in New York City, he said. —The mobile vending craze is switching into a new gear: franchising.
The company is in talks with Francorp about a possible franchise plan, he added. —The mobile vending craze is switching into a new gear: franchising.
“We’re still in the infancy stage, so it’s kind of hard to think about having grandchildren now,” he said. —The mobile vending craze is switching into a new gear: franchising.
Whether or not they plan to franchise, truck operators across the country say there’s a huge amount of interest in mobile vending, and many say they get offers daily from both potential franchisees and franchisor partners. —The mobile vending craze is switching into a new gear: franchising.
Dan Rowe, founder of franchise development firm Fransmart, said he is also interested in finding a franchise-able truck concept. “I’m fascinated by this. You have a lot of chefs starting to do it,” he said. “On the other hand, is it a business where you can make a living?” —The mobile vending craze is switching into a new gear: franchising.
Rowe said the challenges of truck franchising might include the difficulty of doing a site analysis without a set location, and the lack of sales comparison data from existing trucks. —The mobile vending craze is switching into a new gear: franchising.
Tim Pickwell, a franchise attorney in San Diego, also cited challenges, though he noted that they are not insurmountable. —The mobile vending craze is switching into a new gear: franchising.
“There are the usual challenges,” he said, “like food quality, food safety and tracking sales on a mobile unit. But the biggest one that I think is going to frustrate franchisees is trying to allocate a territory or some rational market share for what is a highly mobile concept, and that’s not unsolvable either.” —The mobile vending craze is switching into a new gear: franchising.
Given the current economic headwinds, he noted, “the timing couldn’t be better” for a truck franchise trend. —The mobile vending craze is switching into a new gear: franchising.
“In this environment, not being tied to a brick-and-mortar location looks very attractive to a lot of people,” he added. —The mobile vending craze is switching into a new gear: franchising.
Some truck operators say they would never consider franchising their concept, such as Thomas DeGeest, owner of Wafels & Dinges, a Belgian waffle truck in New York, winner of this year’s “Vendy” street food award there. —The mobile vending craze is switching into a new gear: franchising.
“I would fear for quality,” said DeGeest. “When your franchisee is mobile, you can’t keep track. I’d rather have one operation with lines all day long than 10 operations with lower quality.”— [email protected] —The mobile vending craze is switching into a new gear: franchising.
