Recipe for success: insights into the booming food truck industry
Agile, dynamic and delicious, the food truck is a 21st-century business success story, and researchers at United Arab Emirates University are taking an analytical approach to support its development across the country
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Opening a restaurant is a notoriously risky enterprise. Hospitality is a volatile industry. The overheads are high, the margins slim. Opening a food truck, however, requires a smaller investment, allowing entrepreneurs to establish and develop a brand that could become a bricks-and-mortar restaurant, maybe even a chain.
Studies have shown the food truck’s resilience in the face of economic shocks. Around the world, food trucks have established themselves as a staple of metropolitan areas, attracting locals and tourists alike, introducing diners to different cuisines, and seeding innovation in a hyper-competitive market.
In the UAE, they are a more recent phenomenon. Khaula Alkaabi, full professor at United Arab Emirates University’s (UAEU) Department of Geography and Urban Sustainability, set out to understand the key drivers of success in the food truck business from a local perspective. Alkaabi’s paper, co-authored by research associate Kashif Mehmood, examines variables such as customer convenience, government support, cultural infrastructure and strategic location decisions.
“The findings reveal that, while customer convenience indirectly influences success through location suitability, factors like cultural infrastructure, government support and strategic location choices have a direct and significant impact on business performance,” says Alkaabi.
Collecting data from 250 food truck businesses, Alkaabi and Mehmood applied partial least squares structural equation modelling to analyse the relationship between the variables. The results were intuitive. Speed and efficiency when handling orders were essential factors in success. Those positioned in high-traffic areas enjoyed more accessibility and customer engagement.
Alkaabi hopes her research can support entrepreneurs and policymakers to make more informed decisions and contribute to a more vibrant and diverse food scene in the UAE. “By highlighting the importance of strategic location selection and cultural infrastructure, the study provides actionable insights for establishing designated food truck zones in high-traffic tourist areas,” she says. “Such initiatives can enhance operational environments, leading to increased customer satisfaction and business success.”
Food truck entrepreneurs were eager to share their insights into the challenges they face, the expectations of their customer base, and the realities of this business model. “These real-world insights enriched the data and allowed us to test hypotheses grounded in actual business practices,” says Alkaabi. The Department of Municipalities and Transport shared its official manual for food truck businesses, providing essential regulatory context.
Alkaabi intends to build on this research, undertaking a comparative analysis across the UAE to learn how regional factors contribute to success. “There’s also strong potential to examine sustainability practices in mobile food businesses,” she says. “How eco-friendly operations affect customer loyalty and business image.” There is much more to learn.
Digital and social media marketing are other avenues for investigation. A successful Instagram page can be a game-changer for the food truck. And if the lessons from New York and London hold true in the UAE, a successful food truck can launch a bankable restaurant franchise.