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The food-truck economy

Josh Hiller co-owns a company called RoadStoves. It's the go to place in LA for all things food truck: business plans to graphic designs to where you park the thing at night. Hiller and his partner have become king makers on the LA food truck scene.

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Kai Ryssdal: So here's the thing about living in Los Angeles: If you're hungry, but you just can't decide what you're in the mood for, you can go out and stand on certain street corners and the food comes to you.

Kai Ryssdal: So what's good?

Jonathan Salvatore: We basically do an authentic-style Philly cheesesteak.

Ryssdal: On trucks. Retro-fitted delivery vans making and selling almost anything you could want. Korean tacos, Chinese dumplings, South Philly cheesesteaks like I had for lunch the other day.

Ryssdal: I think I'll go with the American cheese, with the roasted peppers...

All that mobile goodness doesn't just happen, there is a business to putting those trucks together.

Josh Hiller: Right now, we're walking down gourmet row which is Grilled Cheese, Baby's Bad Ass Burgers, Nana Queen's Pudding and Wings, the Dumpling Station...

Josh Hiller co-owns a company called Road Stoves. It is the go-to place in LA for all things food truck. They do business plans to graphic designs to where you park the thing at night. Hiller and his partner have become king makers of a sort on the LA food truck scene.

Hiller: You know, we'll sit down we'll talk about their idea, we'll see what their business plan is. Do we think this is someone that can succeed? We provide a store on-site where people provide actual food and beverage products. We help promote with the iPhone app on the website and we help train in terms interior kitchen cooking equipment, driver training...

Getting back to that whole idea thing though.

Hiller: We're standing next to the Grilled Cheese Truck now, and when they came to us and they said, "Look, we have this gourmet grilled cheese concept," my partner Morris said, "Absolutely, I love it. Let's get you on the road." When people see this big melty vehicle rolling down the street, they know, a heart attack's not far behind.

Before the roving heart attacks, Road Stoves was born like so many other start-ups. A good idea, some working capital and a little bit of being in the right place at the right time. In this case, helping a friend get his Korean taco truck started about a year and a half ago. That turned out to be an experiment we now know as the mobile money-maker Kogi. Hiller figures Kogi nets a couple of thousand dollars a day on delicacies like their kimchi quesadillas. That's half a million dollars a year on the very high end. Just to stay on the road, a truck has to clear a couple hundred a day. Remember the cheesesteak truck where I had lunch? We caught up with the owner back on the Road Stoves lot.

Jonathan Salvatore: I'm Jonathan Salvatore. I run the South Philly Experience truck.

Ryssdal: It sounds like you're from Philly.

Salvatore: I'm from South Jersey, but close enough.

He does work pretty long hours.

Salvatore: Typical day, wake up at six, set the trucks up. Try to get the trucks ready by 10:30. Get them to lunch by 11:30. They serve lunch. They come back, restock them up and then they go out again, bars and late night scene.

The South Philly Experience is also having a typical year when it comes to success on the food truck scene.

Salvatore: We're almost a year in and it gets better everyday. We're actually starting our second truck today, so that's why I'm a little behind. I'm trying to work two trucks for the first day.

For every South Philly Experience and Kogi that are expanding and making a profit, Josh Hiller says there are scores more just trying to break in.

Hiller: We get hundreds of calls a day from people that want trucks. So it's not an issue of, do people want to get into this business? It's really managing the growth, so it's palatable for the city, for the police department, for business owners, for consumers. But in terms of business opportunities for chefs and new culinary treats for consumers at a good price point -- it's phenomenal.

So phenomenal in fact, that Hiller says it might be time to take this LA scene and export it. Road Stoves is in talks to launch some trucks in Austin, Texas and points elsewhere. But he's pretty firm about not taking too much credit for the success of food trucks in LA.

Hiller: What it all boils down to no matter what we do is the food. So these chefs have to provide a product and that's all on them.

If there were any doubts about how ready the rest of you might be for a food truck explosion, the Food Network just announced a new show for their line up. "The Great Food Truck Race" premieres in a couple of weeks. You can think of it as a cross between "The Amazing Race" and "Top Chef." Two of the contestants -- the Nom Nom Truck and Nana Queen's -- pull out of the Road Stoves lot and onto the small screen August 15. You've got to see these trucks to really appreciate them. Check out a slideshow of the trucks, and send us photos of your favorite trucks.

About the author

Kai Ryssdal is the host and senior editor of Marketplace, public radio’s program on business and the economy. Follow Kai on Twitter @kairyssdal.
R Scherb's picture
R Scherb - Aug 18, 2010

Thanks for mentioning that some produce at Farmers' Markets may not be local -- buyer beware!

Donna Shemansky's picture
Donna Shemansky - Aug 5, 2010

How do I find out how to get into the business and who to contact?

Jeffrey Lohr's picture
Jeffrey Lohr - Aug 4, 2010

Being from the Philadelphia area I have to say the only cheese that belongs on a cheesesteak is cheese whiz but hey to each his own.

Bee Smith's picture
Bee Smith - Aug 3, 2010

There are -no- trucks here at all, I do miss them! There is enough business here for at least two trucks, but no one has wanted to service this area of Missouri.

Ross Resnick's picture
Ross Resnick - Jul 30, 2010

Food trucks have and always will be a staple of la culture. The fact that the Mainstream, branching out from LA's rich Hispanic influence, has just now embraced this form of eating is really the main driver of all the excitement. Food trucks have always been around. People write in and ask us all the time (We run a street food web site roaminghunger.com) if the truck movement has reached a saturation point in los Angeles. The truth is that while certain areas may have reached that point, like wilshire in the miracle mile district, there is still an abundance of opportunity and unserviced food truck eaters in la city and more so, la county. Road stoves really did make it possible for te movement to explode because they enabled entrepreneurs to act on their instincts. I think what would have happened if they had not existed, is that the rollout and infrastructure of noveau food trucks in general would have happened at a much slower pace and although we may have seen the same trucks and chefs hit the streets, there wouldn't be the same pace of expansion given that good chefs don't always understand how to get rolling. 

Anya Behn's picture
Anya Behn - Jul 30, 2010

There is a large food truck scene in northern california, especially in Oakland. Don't have photos yet. I'm just sayin'. It's not just LA.

ORR EGILMEZ's picture
ORR EGILMEZ - Jul 30, 2010

how can I find out where to sell and what to do