The rise and stall of food trucks

[Renew Deal]

The Urban Oasis Traveling Organic Café called it quits earlier this year. The owners, George and Elaine Karaisarides, are selling their “completely renovated” vehicle on Craigslist for $55,000. It was straining their relationship, the couple wrote on their blog, and a city clampdown on food trucks only compounded their pressures.

“There are plenty of people who are seriously questioning the viability of this business,” said David Weber, president of the 10-month-old New York City Food Truck Association and co-owner of Rickshaw Dumpling Bar, which owns four trucks and two restaurants.

The Karaisarides' experience is just one measure of how hard the hip and nascent food truck industry has fallen this year. It's partly a victim of its own success. Operators complain about too much competition from each other, and brick-and-mortar restaurants are crying foul—and calling the cops—when the trucks park on their doorsteps, siphoning customers.

But the most devastating blow to the industry has been what truck owners describe as onerous city regulations, in particular, a parking rule that prevents the trucks from doing business in most commercial districts.
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http://www.crainsnewyork.com/article/20111127/SMALLBIZ/311279981