Article

Mobile food’s expansion set to continue: Trends and insight report

Mobile food operators will continue to grow at rapid pace in 2019, according to "Think Mobile, Act Local: The Future of Mobile Food in America," the first annual trend and insight report from Off the Grid.

Source: Off the Grid

December 12, 2018 by Elliot Maras — Editor, Kiosk Marketplace & Vending Times

The mobile food industry, which has flourished, thanks to its unique ability to innovate menus and provide consumers a unique and convenient experience, will continue to grow at rapid pace in 2019, according to "Think Mobile, Act Local: The Future of Mobile Food in America," Off the Grid's first annual trend and insight report. Off the Grid is a San Francisco based mobile food platform best known for the 60 weekly mobile food markets it operates in California.

The free, 44-page report, based on a survey of mobile food operators and interviews with industry experts, summarized the factors contributing to the industry's growth since 2008 and noted that the food hall, where artisanal food vendors and retailers sell their wares side by side, has emerged as the most recent foodservice model.

The purpose of the survey was to examine the industry from several different angles, including economic opportunity, gender, class and racial equity; mobile food as a vehicle for upward mobility; and culinary innovation, the company told Food Truck Operator via email. 

The report offers insights into the opportunities mobile food provides to brands, municipalities, entrepreneurs and consumers. 

Why growth will continue

"The consumers of tomorrow will look for quality, variety and authenticity all wrapped in a single experience," Off the Grid founder and CEO Matt Cohen said in a press release announcing the report. "Mobile food — spurred by rising costs, limited real estate, fast-growing technology and deindustrialization — is positioned to rise up and meet this demand."

In addition to providing statistics on the size of the mobile food industry and the propensity of "third-party creators" to experiment with menu items, the report — which includes profiles of several California operators — attempts to clarify several unique aspects of the industry.

Mobile food fosters social cohesion, connection and understanding in physical spaces by providing a spontaneous gathering place where people connect with one another, according to the report.

The top factors contributing to mobile food gatherings, according to the report, are proximity — convenient access from the home or the office; restoration — the ability to relax and enjoy the atmosphere; and discovery — the chance to find and try new culinary experiences.

The mobile food movement was built thanks to risk-takers like Roy Choi, who launched his Kogi BBQ in Los Angeles in 2008, exceeding $2 million in sales in its first year, the report said. Two years later, Off the Grid debuted its flagship public market at Fort Mason Center in San Francisco.

Today, the emerging field of mobile architecture — including Off the Grid's Cubert, a modular pop-up kitchen and retail venue — offers new ways to activate public and private space.

Five top insights

The report's five top insights are:

1. The 2008 recession spurred the mobile food movement. The stall in new construction projects led to a glut of food trucks on the resale market while many urban chefs found themselves unemployed. The rise of social media further contributed to the rise of mobile food. 

2. Mobile food businesses involve less risk than opening a brick-and-mortar restaurant, but allow for more risk-taking. Mobile food has proven itself to be a hotbed for culinary innovation compared with brick-and-mortar restaurants.

More than a third (34 percent) of mobile food business owners said they regularly experiment with new items while an additional 26 percent have a "sky's the limit" attitude.

Nearly a third (31 percent) also view mobile food as a way to test a concept before investing in a permanent location, while nearly a quarter (24 percent) consider it a way to stay ahead of changing trends. 

3. Mobile food reimagines underutilized real estate. Off the Grid designed a five-week holiday pedestrian plaza, "Winter Walk," in 2017, in support of the Union Square Business Improvement District effort to revive a stretch of downtown San Francisco's Stockton Street. The event returned in 2018, allowing 1.7 million guests to enjoy food, beer gardens and seating nooks. 

4. A new breed of mobile food entrepreneurs known as "dabblers" has emerged. Dabblers see their mobile food venture as a controlled experiment on the open market, a source of complementary income or even a creative outlet.

A Nashville-style hot chicken dabbler debuted at an Off the Grid market in March 2018 and became the highest Off the Grid seller for the year, serving 9,294 meals at more than 31 events. 

5. Mobile food operators are a diverse group. A survey of Off the Grid vendors — including 300 mobile food creators — found that 30 percent are immigrant-owned, 30 percent are woman-owned, 8 percent are LGBTQ-owned and 2 percent are military/veteran-owned.

Emerging trend: Food halls

Looking to the future, the study reported that the food hall, a place where artisanal food vendors and retailers sell their wares side by side, has emerged as the most recent foodservice model. A flexible, community-focused experience, food halls have taken off in urban centers. 

Cohen predicted that 2019 will see even more mobile food entrepreneurs forego the cost of entrepreneurship and keep their day job while building their mobile food business part time. 

The mobile food industry needs another 10 years to level the playing field through supportive legislation, the report stated. Legislation enacted in San Francisco over the past year allows brick-and-mortar restaurants to operate a mobile food facility in front of their restaurant when the building undergoes a mandatory retrofit, enabling the restaurant to keep staff employed and continue serving customers.

In the meantime, mobile food operators will continue to provide a gateway for chefs and entrepreneurs to test the waters before entering the more capital-intensive brick-and-mortar trade, and for established restaurants to further expand their visibility and build their brand.

Charts courtesy of Off the Grid

About Elliot Maras

---

Elliot Maras is the editor of Kiosk Marketplace and Vending Times. He brings three decades covering unattended retail and commercial foodservice.