Food Franchises are Taking Their Products on the Road

Several food franchises are going mobile. A very interesting concept.

The Wall Street Journal reports that a small but growing number of chains—such as Cousins Submarines Inc., Tasti D-Lite LLC and Toppers Pizza Inc.—are following in the tire tracks of those local food-truck businesses popping up on city streets around the U.S. Many brick-and-mortar eateries have added mobile units in recent years, and more are expected to do the same, including national brands.Trucks or vans outfitted with fully operating kitchens, as opposed to the small, engine-free carts used by street vendors for more than a century, were a rarity until only a few years ago. Now they're commonplace in cities such as Los Angeles, New York, Philadelphia and Portland, Ore., says Sean Basinski, director of the Street Vendor Project at the nonprofit Urban Justice Center in New York.

I'll say it again: As "smart" type cell phones become more pervasive look for a dramatic change in marketing practices.

Sites like Twitter, Facebook and FourSquare are making it easy for consumers to track mobile vendors' whereabouts, says Hudson Riehle, senior vice president of research for the National Restaurant Association in Washington, D.C.The trade group dedicated a 1,500-square-foot section of its annual convention this year for the first time to exhibitors that cater to mobile-food businesses.Consumers' appetite for food-on-the-go also seems to be increasing, says Mr. Riehle.

Aaron Webster, owner of three Tasti D-Lite stores in Houston, says he bought a used van last year for $90,000 from the frozen-dessert brand's parent company. It's complete with a small refrigerator, freezer, sinks, countertop, soft-serve machine, toppings bar and power generator. A bubble-gum pink exterior features the brand's logo and website address.Mr. Webster, a former investment banker, uses the van to sell ice cream mostly at community events and for catering jobs. He says mobile sales account for less than 2% of total revenues for his businesses but that the van is helping to raise brand awareness. "It's really a roving billboard," he says.

I'll be in NYC next week and will keep my eyes open for some mobile treats.

About the Author: Ed Teixeira has over 35 years of franchise industry experience as a franchise executive and franchisee. He has served as a franchise executive in the c-store, manufacturing and home healthcare industries and has licensed franchises in Asia, Europe and South America. Ed operates FranchiseKnowHow  which provides information and advice to prospective and existing franchisees and franchisors. He publishes newsletters for the franchise community.