There has been a lot of talk and reports about a commissioner of the City of Sunrise, wanting to ban food trucks from doing business in Sunrise. While Sunrise is the most recent example of these discussions, I in no way want to single out the City of Sunrise. I am sure that similar conversations have taken place and will take place in other municipalities and other states.
No matter what the motivation of said commissioner is the following items should be considered.
Our Economic Principles
One of the things that have helped the United States Economy be as successful as it has been over the decades, is the principle of free enterprise. Free Enterprise operates by the following 5 basic principles: the freedom to choose our businesses, the right to private property, the profit motive, competition, and consumer sovereignty. (The Social Studies Help Center)
Laws governing how companies can and cannot do business are in place for pretty much any business you can think of. It is important that such laws and regulations are in place to ensure, that businesses conduct their business legally and safely.
In Florida Food Trucks are a relatively recent addition to the spectrum of businesses making up the Food & Beverage field. In order to start a Food Truck business, food truck owners have to go through approval and permitting/licensing processes just like brick & mortar restaurants. State and county are involved in plan approvals, inspections and ultimately the issuing of licenses and permits. In addition to these steps, new food truck owners also have to obtain proper business licenses as required by municipalities and counties. Once a food truck is on the road, they also have to submit to random, unannounced inspections by the health department, just like brick & mortar restaurants.
Food Trucks are small businesses that create employment opportunities, pay taxes and fees, carry business licenses just like any other brick and mortar business would. Looking at these facts, it is fair to compare a food truck to a brick and mortar restaurant, which is where the principles of competition and consumer sovereignty come into play.
Ultimately, it should be up to the consumer to decide, whether a business will be successful or not, as long as the business meets all requirements to do business (has permits, licenses etc. See above).
The Dining Experience Argument
The dining experience at a food truck will be completely different from what a consumer will experience in a brick and mortar restaurant. More than likely, a consumer that has set their mind on having a sit down dinner with friends or family will choose a brick and mortar restaurant rather than opting for dinner at a food truck. This means that the presence of a food truck in the same city or general area as a brick and mortar restaurant will not impact a consumer’s decision where he will have dinner once he has opted for a certain dining experience.
It comes down to Quality
Another determining factor in the decision making process will be the quality of products offered. In a situation where two businesses offer a similar product at different quality levels, the consumer will almost always chose the business offering higher quality. Each business should look at this factor closely and do the best they can to provide superior quality products and services in order to gain the consumers’ business. It is unlikely that the presence of food trucks is the root cause for struggling local brick and mortar restaurants.
Opportunities
Existing brick and mortar restaurants could take a step back (and several already have) and look at the food trucks as an opportunity. Having their own truck could help them spread the word about their brand, expanding the pool of potential customers.
Chain restaurants could use food trucks to test new markets without having to go to the full investment of launching a new brick & mortar location without knowing if they are in the right market.
For Cities
Having been part of a large number of food truck events over the past few years, it is obvious that the consumers in South Florida love the food trucks. It is a new and innovative way to spend quality time with friends and family and a great way to connect with new, like-minded people. Food Trucks attract people, local and not local. Food Trucks have followings of loyal fans, that will in many cases travel to eat from their favorite truck. These consumers will visit places they may not have gone to without the presence of a food truck.
There are many forward thinking municipalities in South Florida that are embracing food trucks and that have experienced how food trucks can positively impact local happenings. Food Truck events create attractions that visitors will come visit, both local and from the outside. For local visitors of events, the events represent a welcome change of pace. For visitors from out of town, the events can introduce them to a new city that supports innovative small businesses, which in itself can represent potential future tax revenue, additional new employment opportunities for locals and so much more. Employment opportunities are not limited to jobs created on the truck itself, but also in businesses such as companies involved in the process of building the trucks, wrapping, insuring and in any other way being a vendor to the food truck.
To Summarize
It is clear that banning food trucks is not the answer to any question. It would not only be shortsighted and contrary to economic principles this country has lived by for many, many years successfully but it would also be contrary to the opinion of the thousands of fans that live in your municipality. It would prevent the creation of new tax dollars flowing into your municipality and new jobs created for local residents when a new Food Truck opens their doors in your city. We all agree that there has to be some regulation just like for any other business.
Let’s all work together to find a way that will help entrepreneurs create new successful businesses that operate inside any community according to laws and regulations put in place that allow them to do business just like any other business would, rather than creating a situation, where protectionism and shortsightedness hinders innovation and limits the economic process, which I am sure is nobody’s intent.
Recent Articles posted about this issue:
New Times – Laine Doss: Sunrise Mulls Food Truck Ban
NBC6 – Donna Rapado: Food-Truck Ban Proposed by Sunrise Commissioner
Sun Sentinel – Susannah Bryan: Sunrise commissioner wants ban on food trucks