SURVEY: Food Truck Industry Hit Hard, But Sees Possibilities

Posted on 04/01/2020 by FoodTruckBooking Editors

The economic consequences from the coronavirus pandemic have greatly impacted 97% of the food truck industry in Europe and the United States, says the International Food Truck Monitor - Coronavirus Impact. A positive sign is that nearly 70% of US respondents of the latest FoodTruckBooking survey feel food truck owners have a role in supporting essential workers during the pandemic. FoodtruckBooking did a research on the effects of the Corona virus among foodtruck operators. The survey was conducted among both members and non-members of the booking platform.

Most food truckers are self-employed with family-run businesses and have no other sources of income. Heavy losses are coming from the cancelations of public events, festivals and parties. Fast changing regulations such as rules for group sizes, total public lockdowns and the border closings between European countries are also having a negative effect on food truck business. The end date for the pandemic and what the financial impact will be is still uncertain for everyone.

ABOUT THE 'INTERNATIOANL FOOD TRUCK MONITOR - CORONAVIRUS IMPACT'

FoodTruckBooking operates in 5 of the most impacted countries in the world, so it was natural and necessary to examine the impact of the pandemic on the food truck industry. To get a better overview of the current situation and what the possible consequences may be, FoodTruckBooking surveyed food truck owners around the world.

On March 19, we sent out our survey in the countries where FoodTruckBooking is active. The response was massive. We would like to thank everyone who responded and are happy to share the results. In this difficult time, the results can show insight, inspiration and also point towards ideas and solutions on how to move forward.

The ‘International Food Truck Monitor - Coronavirus Impact’ was sent to food truck owners in the Netherlands, Belgium, Germany, Spain and the United States. We asked a few extra questions to the American food trucks since the US market is slightly different than in Europe.
RESULTS FROM PARTICIPANTS

Survey results were collected during the 2nd half of March 2020. During this period, the coronavirus crisis was on the rise and had not yet peaked in most countries or in any American state. Each European country has handled the crisis with its own regulations and own timing.

Germany, Spain and Belgium have opted for a total lockdown where citizens were only allowed to take to the streets for necessary things. But, the Netherlands opted for a less stringent policy. Borders and flights to European countries were also closed in efforts to control the spread.

In the US, major metro areas such as New York and Los Angeles followed fairly quickly with lockdowns. At the time of publishing, the US had the highest number of cases, Spain 3^rd, Germany 5^th, Belgium 11^th, and Netherlands 12^th.

The food truck industry has been hit hard, no doubt. 97% of all food trucks have seen turnover drop sharply or even dry up completely. Yet almost a quarter of these entrepreneurs are creative and still see possibilities and opportunities to generate turnover during this time.
STAYING CREATIVE & ENTREPRENEURIAL

22% of food trucks have found other opportunities to generate income with their food trucks. We wanted to add a positive spin and share their income generating ideas to inspire others with possibilities:
- catering for companies that are still working but the employees’ restaurant is closed
- street sales (in some cases without a permit)
- mobile kitchen for charities, non-profits or free school lunch programs
- catering for professions that are business-as-usual or essential workers
- adding delivery by signing up to Uber Eats, Grub Hub or other delivery methods
- food markets
- securing permanent locations for pick-up or takeaway
Some food trucks are using this down time to start and to build a new energy and improved food truck:
- changing the menu and trying out new recipes
- looking at the margins on food costs and making adjustments
- taking a critical look at how to minimize all costs
- improving the company website and social channels
Demand for permits and permanent workplaces are high and a great concern for being able to sell. Apparently European countries have slightly more difficulty with permits than some states in the US. Fixed locations with reduced fees, no fees or relaxed permit requirements could offer food trucks a chance of survival.

Many trucks are looking to operate as a takeaway spot or delivery hub. Being able to arrange online ordering and doing more business online was also mentioned as an income stream.

Creative concepts in times of crisis:
US Food Trucks vs the Coronavirus
Behind the Food Truck: Bohemian BBQ and SXSW Recovery
CORONAVIRUS IMPACTS EVERYONE, INCLUDING FOOD TRUCKS

The food truck owners who responded to the survey gave an almost unanimous answer of 97% yes, coronavirus has impacted business. In some countries even the full 100%. Some 3% food trucks had not yet seen an impact from the coronavirus since food markets were still open and some trucks with fixed locations were still permitted to serve. In the past 2 weeks, almost all food trucks or 92% have seen their turnover fall sharply.

CANCELATIONS
Canceled public events and catering assignments are said to be the main reasons for the major loss of turnover. Percentage of turnover lost from public events and catering assignments compared to this time last year was 85% in Europe and 40% in the US

"Fewer customers" was reported by 5 to 10% of respondents in Europe, while the US reported a 51% drop in customers. The difference is related to the type of business. US food trucks generate more turnover at fixed sales locations. Where European trucks tend to generate more turnover at public events or festivals. Europe is still in the winter/slow season and compared to the same time period last year, activity in March is typically slow.

Only to 3% of trucks said they were completely unable or unwilling to work due to the Coronavirus.

When asked whether food trucks had to cancel their own bookings, the answers differed per country. Some countries were on total lockdown and were required to follow government regulations. In most cases, bookings were canceled by the client: Germany 67%, NL 58%, Spain 24%, US 24%, Belgium 16%.

When asked how far ahead events were being canceled, we also see remarkable differences in the answers. Some trucks are holding out hope that cancelations won't continue much longer. In the Netherlands, 21% canceled activities themselves for 2 to 3 weeks. In Belgium by 13%, Germany 20%, Spain 16% and the US 28%.

RETURN TO BUSINESS AS USUAL
The majority of food trucks think the return of business will certainly take longer than 4 weeks and on average, 24% have canceled everything for the time being. Spain was an outlier where 56% of food trucks canceled all activities for longer than 4 weeks. In the US, 24% still say they experience "business as usual".

VERY FEW FOOD TRUCKS ARE INSURED FOR LOSSES
Very few food truck owners appear to be insured against loss of income or losses related to the pandemic. Nobody is insured at all in Spain: 100% uninsured. In the Netherlands, 93% are not insured, in Germany 90% are not insured and in Belgium 77% are not insured. In the US, 70% are not insured. But of the 30% who are covered by some insurance, pandemics and natural disasters are excluded by policies. Across all countries, 18% of respondents do not know yet whether they were insured.

Governments are providing economic aid to small businesses such as the US Small Business Adminstration.Food trucks are encouraged to get started and apply ASAP: Application Checklist for Emergency Disaster Relief.
FOOD TRUCKS VS THE CORONAVIRUS

The answers to "What measures have you taken?" painted a different picture between countries. In Spain 96% and Belgium 87% of owners chose to close their food truck for the time being. In the Netherlands 53% and Germany 55% have closed for business.

In the US, only 40% have closed their food trucks. Each state has different regulations with the diverse rules and inside each city, state and local situation. Food trucks who were allowed to operate were required to take additional measures, such as informing employees daily about the new and necessary precautions, offereing disinfectant gel to customers in line and making customers aware of social distancing while in line.

In the US, we asked exactly what extra efforts were being made to comply with regulations and to keep serving. State and local regulations vary. Most attention was given to extra hygienic measures: cleaning their food trucks more often during working hours, but also extra cleaning before and after service.

Other extra steps to keep customers and colleagues safe were taken during food service, washing of hands and wiping down work surfaces more often, more frequent changing of gloves, regular disinfection of payment systems, customers required to use "social distancing", including signs as reminders.

FoodTruckBooking.US spoke to a food truck entrepreneur about the precautions to protect staff and customers: The Only Food Truck in Town is Using Social Distancing.
US SUPPORT FOR ESSENTIAL EMPLOYEES

We asked American food truckers if they would be willing to serve the emergency and healthcare professionals: hospital personnel, police and fire departments and ambulance personnel. More than 40% said yes to serving essential medical and emergency workers.

26% said yes if measures were taken to avoid or minimize personal contact. In total, food trucks showed a 66% willingness to provide food service during the pandemic for first responders and front line workers.

In fact, nearly 70% of respondents in the US feel that during a pandemic, food truck owners have a role, if not an obligation, to support the essential workers.

SPEED OF RECOVERY
The Dutch and the Americans are the most positive about the speed of the recovery of the food truck industry. Once rules, regulations and bans have been lifted, NL 12% and US 17% think that it will take 1 month before the industry will begin to show a clear recovery. In Belgium 5%, Germany 3% and Spain 4% think that this recovery will not be return so quickly.

The vast majority think that the recovery of food trucks industry will take at least 4 months: Germany 67%, Belgium 56%, the Netherlands 48%, Spain 48% and in the US 34%.

WE WANT TO GET BACK TO WORK
Finally, we asked: “What are you most looking forward to?” Most often mentioned was meeting customers, the atmosphere at the events and generating an income. A majority of food truckers said they would be most satisfied when they are healthy and can start working again.

THE FINAL WORD
The food truck industry is definitely not protected from this global crisis. Because of regulations, lack of customers, lost catering gigs, and rules for large groups have all hit food trucks very hard. Several measures are underway and funds for financial support are being set up in each country. Food trucks need to find out what financial relief and other possibilities are offered in their local communities.

The question remains, and did not get asked, whether we will all get through this crisis in one piece. The unknown and uncertainty continues to be stressful for everyone. For now, we hope all of our food truckers around the globe stay healthy and take care of yourselves. We are searching for more ways to support your creativity, activity, positivity and persistence.