Does the growth of food trucks threaten the sustainability of restaurants? Evidence from a nationwide analysis of U.S. businesses

Abstract

ABSTRACT This article examines whether growth in the food truck sector in the United States harms restaurants, as restaurateurs and their allies often claim. Using 12 years of nationwide data in a dynamic panel data analysis, we explore whether more food trucks in a county in one year equates to fewer restaurants in the same county in the following year. Results indicate the number of food trucks in one year is not significantly related to fewer restaurants in the next year. However, the number of food trucks in one year is positively – and significantly – related to the number of restaurants in the same year. For every additional food truck in a county, we would expect to see about three additional restaurants. We provide some possible reasons for these findings and conclude restrictions on food trucks are likely unnecessary and perhaps even economically unproductive. Policymakers may find such results informative when considering the adoption of new regulations governing food vendors. Researchers may find the results helpful when creating new studies on how food vendors affect neighborhoods or the extent to which the vending and brick-and-mortar sectors are complementary or competitive.