Rising fuel costs add pressure to Phoenix food truck owners
Valley food trucks face threat of rising gas, food costs
The war in the Middle East have spiked gas prices, and food truck owners across the Valley are feeling the effects. FOX 10's Megan Spector learns how the overseas conflict is eating into their profits.
TEMPE, Ariz. - The drive to stay profitable is getting tougher for Valley food trucks, as vendors are forced to manage the dual pressure of rising fuel and ingredient costs.
What we know:
It takes more than great food to keep a food truck on the road. On top of the costs for labor, ingredients, and supplies, food truck owners also have to navigate rising gas prices.
"It’s just amazing how much everything goes up," said Greg Colella, the general manager of Ralph’s Snack Bar.
We’re all feeling the pinch when we fill up our tanks, but for food truck owners, that high price per gallon is a recipe for disaster.
"Eggs were so expensive. Now they came down, now it’s gas prices. It’s always something," said Colella.
Colella describes Ralph's Snack Bar as "truly food trucks on steroids." The company owns about 85 food trucks, including both gourmet trucks for events and independently contracted trucks.
"It was like $3 a couple weeks ago and boom now it’s like $5," Colella said.
By the numbers:
According to AAA, the current average price in Arizona is $4.62 per gallon for regular gas, compared to $3.27 a month ago. For the food trucks that roam the Valley, it’s a steep price to pay to keep these meals on wheels moving.
"They’re out 7 in the morning until 1 in the afternoon so let’s say it was $60 a day, now it’s $90 a day," Colella said. "And it depends on what area you’re at. If you’re in Gilbert, it’s a long way to drive out, drive back."
What they're saying:
The pump price hike has been hard to miss lately.
"It’s been crazy. It’s been going up a lot. It’s been almost $5," said one driver at a gas station. Another added, "It’s been so much. I only put like $20 and it’s not even all the way—like half. It’s been too much."
Dig deeper:
But Colella says rising prices in general are just a reality we all have to face.
"The good thing is the customer kind of expects it," Colella said. "They see it, they go to the grocery store and you know chicken breast used to be $2.99 and now it’s $4.50 so they kind of see it. Sometimes they go to events and they go wow your prices are pretty good!"
Colella says he hasn’t had to raise his prices yet, but he expects some might have to in order to deal with the increase of gas prices.
The Source: This information was gathered by FOX 10's Megan Spector who spoke with a general manager of a Valley food truck.