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Vendors drive traffic but rev up operator aggression


By LISA  JENNINGS



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(June  08, 2009) When Kenny Lao began selling his restaurant’s dumplings out of a converted postal truck last September, he didn’t anticipate that competitors would threaten his life because they felt he was encroaching on their territory.

Rickshaw Dumpling Bar sells its food in a converted mail truck throughout New York.

Lao, who co-founded the trendy Rickshaw Dumpling Bar restaurant in the Flatiron neighborhood of Manhattan, also didn’t realize the difficulty he’d encounter finding a mobile vendor permit in a city that doesn’t issue them anymore, the challenge of ensuring all employees have licenses whether or not they handle food, or the expense of building a kitchen on wheels.

But even as some communities begin to view mobile food vendors as nuisances leading to crowds and litter, and alleged black markets for permits develop in cities such as New York, the trucks have captured the hearts of consumers. As such, operators still are racing to get into the game despite regulatory and competitive speed bumps and startup costs that can range from $20,000 to $160,000.

Among them are Mary Sue Milliken and Susan Feniger, who in late June plan to launch a high-end taco truck from their upscale Mexican restaurant, Border Grill in Santa Monica, Calif. The truck will make street runs throughout the city—with alerts on Twitter for followers to find it—and be available for party bookings.

“It’s something that we wanted to do for three or four years, but it wasn’t a priority,” Milliken said. “What lit the fire was learning about all these other trucks that were happening out there.”

The partners initially are leasing the truck to test the idea before they consider buying a truck, she said. The menu will be grab-and-go, including tacos, quesadillas, tortas and a Caesar salad, as well as ceviche in corn tortilla cones.

Prices will be lower than those at the restaurant. Tacos from the truck, for example, will start at about $2 each, whereas a two-taco plate at lunch in the restaurant ranges from $9.50 to $11.95.

The truck will be a marketing tool for the restaurant, she said. The question remains, however, whether it will make any money.

“My goal is just to break even,” Milliken said. “But the response from the public has been so outstanding, I can’t imagine that we won’t be able to make this work.”

Food vendors in Los Angeles County must obtain specific permits for a “mobile food facility,” which costs about $340, plus the annual licensing fee of $695.

Among the requirements, restaurant operators can prepare food in their brick-and-mortar kitchens and load the truck, but they must still rent parking space at a commissary to clean their trucks and empty wastewater. Those without restaurants must prepare food in a commissary.

In Los Angeles, trucks that stop in one spot for more than two hours must demonstrate that customers have access to a restroom that meets safety codes, according to health department officials. That rule, however, is enforced by local law enforcement.

Rules also vary by jurisdiction. For instance, the Kogi truck, which specializes in Korean tacos and has made headlines nationwide with its Twitter tweets and cultlike following, reportedly was temporarily banned from Orange County, just south of Los Angeles, because the truck didn’t have the required permits specific to that county.

Even in Los Angeles County, vendors must do their research to find out where they would need additional permits within the county’s 88 incorporated cities, like Beverly Hills, which many vendors describe as a “no-go zone” where food trucks are not welcome.

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