THE food truck business is losing its popularity – at least in Kuala Lumpur – unlike four to five years ago when there was a rush to benefit from this “modern street vendor” trend.

The rush was such that City Hall in 2017 had to designate six sites in the city to put in some semblance of control.

City Hall statistics showed that at the end of that year, it had received some 1,000 licence applications from operators, but it is unclear how many went on to set up their businesses.

However, it is losing its appeal as one of the city’s food truck pioneers, 47-year-old Noraini Abdul Hamid, found out.

“It’s not as appealing as we thought,” said Noraini, who has been in the business since 2016.

She said like in any businesses, food truck operators face a lot of challenges.

The truth, she said, is it has very high monthly operating costs, not helped by the tough competition from those in other segments of the food and beverage industry.

Truck loan repayment, various licences and rentals from City Hall make up a big chunk of the costs, she told The Malaysian Insight.

“Everyone was rushing to get into the business. They think it’s easy.

“Buy a truck and they are already in business, so they thought,” said Noraini, who sells the ubiquitous local favourite nasi lemak.

She said they will be in for a shock.

“Those who don’t have any experience in doing business suddenly find they are in the deep end struggling to survive.”

Noraini said in the three short years, she has seen many who left with huge losses.

“Some tried to recover their capital by renting out their trucks.”

To start the business, one needs to buy a truck and the cheapest one cost about RM100,000.

That does not include the cost of customising the truck and monthly loan repayment of between RM1,300 and RM1,400.

Noraini said if workers are needed, their salaries have to be included in the monthly costs.

She added she avoided pitfalls of many operators by buying a used food truck in cash.

She said she and her husband, who were in the production industry, got into the food truck business to fill the income gap.

Meanwhile, 45-year-old Faizal Riza, who sells drinks out of his truck, said one of the challenges is finding which of the six designated areas that has the potential to draw the crowd to him.

“That’s why I am here at the Sedap TTDI.

“Sales have shot up by 200-300% compared to where I was before.

“People find this place convenient as it’s a large open space where we can place tables and chairs for them to eat and drink in some comfort.”

Faizal said rental is a major factor in his consideration where to park his truck.

Another factor is competition.

“That is why we have to be unique and creative in what we sell. We have to sell what others are not.”

At Sedap TTDI, Faizal is the only one selling Thai iced tea.

He took the plunge into the business with his wife after he was laid off in 2016.

“After I got laid off, I heard my friends were selling iced tea out of food trucks and they were doing well.”

Faizal said he spent RM40,000 from savings to start the business.

Even though business is good for now, he said profits are not what they used to be.

 “It’s all so hazy – terms and conditions of the licences.

“This business is supposed to be mobile but the irony is we are immobile due to City Hall restrictions that we only trade in three places.”

For 27-year-old Mohd Fauzan Rusnan, he sells western food.

Fauzan is convinced that the food truck business is still an option as it has received strong government support.

Still, he said, many operators faced the usual business challenges including pricing.

“Unfortunately, we cannot lower our prices anymore unless we plan to go out of business.” 

Fauzan, like Noraini and Faizal, got into the business in 2016 and the price of his food has not changed since. – May 5, 2019