The food-truck market - Spain

1.2 Global market

The global food truck market is set for solid growth over the next decade, with average annual sales of +*.*%. The sector's revenues are expected to rise from US$*.** billion in **** to US$*.** billion in ****. [***]

Food Trucks market sales World, ****-****, US$ billion Source: ****

Growth in this market is being driven by the Millenials generation, who are keen on new culinary experiences. Restaurant chains are looking to invest in this segment.

1.3 Spanish market

The food-truck market in Spain is still in its infancy. Within the food industry market, which will account for more than €*** billion in sales in Spain in ****[***]. This represents **% of the Foodservice market, up * points on ****. The trend is therefore towards new consumption patterns.

sales trends in the Fast-Food market Spain, ****-****, € billion Source: ****

Among Fast-Food outlets, the trend is towards those offering hamburgers. Their sales grew by +**% between **** and ****, for a total of €*.* billion, more than half the total.

It should also be noted that the number of restaurants and other eateries has tended to stabilize in recent years. Data can be collected using INE code ***: "Restaurantes y puestos de comida." There were **,*** in ****.

evolution of the number of restaurants Spain, ****-****, units Source: ****

Of these **,*** restaurants, there were *** food-trucks in ****[***] This matches La Información's estimate that the number of food-trucks has been growing at +**% a year since ****. The order of magnitude is therefore between *,*** and *,*** trucks across Spain.

growth in the number of food-trucks Spain, ****-****, unit Source: ****

1.4 Covid-19 crisis

The Covid-** crisis led to repeated lockdowns in Spain, which had a lasting impact on consumer habits in the country. The hotel and restaurant sector was particularly hard hit. Among the lasting effects, it is worth noting that confined Spaniards have increased the amount of time they spend cooking food themselves at home, which could hamper growth in the foodservice sector in the years to come[***]. For example, **% of Spaniards say they eat more often at home since the pandemic.

changes in eating habits as a result of the pandemic Spain, ****, % Source: ****

2.1 Variety request

As with fast food, food-trucks appeal for the diversity of the dishes they offer. Trucks often specialize in a particular type of cuisine, referring to a particular nationality, for example: American hamburgers, French crepes, tapas... So it's interesting to know which types of product are most in demand.

Breakdown of Fast-Food revenues by product type Spain, ****, % (***) Source: ****

In Spain, the fast-food market will account for €*.*** billion in ****, of which €*.*** billion for Hamburgers alone, revealing strong consumer demand. However, it's worth noting that food-truck customers are often willing to spend a higher budget than traditional fast-food consumers, because they're looking to experience gourmet, original products without actually sitting down.

It's also worth noting that most of the sector's revenues come from on-site or takeaway consumption, although delivery accounts for **% of the total. As far as food-trucks are concerned, the most common formula is to pick up the dish at the counter, then take it away.

Fast-food delivery mode Spain, ****, % of total Source: ****

2.2 Spanish eating habits

Spaniards are accustomed to eating their meals outside the home, a practice found in several Mediterranean countries. With **% of Spaniards frequently eating out, they are above the European average (***).

Percentage of population going out to eat at least once a month Europe, ****, % (***) Source: ****

Spaniards also tend to go out to eat on a regular basis. A quarter of Spaniards visit a restaurant between two and three times a month.

Frequency of eating out each month Spain, ****, % Source: ****

3.1 Events

One business model for food-truck operators is to travel from festival to festival, criss-crossing the country. Here's a list of food festivals and other recurring events that are a must for street food operators.

Source: ****

In addition to food-trucks owned by entrepreneurs who operate year-round, some brands and restaurants promote themselves through the occasional use of food-trucks. This has led to the development of food-truck rental services, such as Street Trucks. Below are a few examples of brands that have used these services in Spain:

3.2 Investment

A quality truck costs around €**,*** before tax. Below, we present the prices of the products offered by Lacomma, Spanish manufacturer of food-trucks:

Source: ****

It should be noted, however, that all these models are trailers, so the cost of the vehicle in front must be added. For food-trucks integrated directly into the truck, the cost is between €**,*** and €***,***.

Entrepreneurs also have to buy a whole range of containers to facilitate take-away sales. Klimer, a leading distributor of equipment for the hotel and catering industry, lists the containers needed to run a food-truck:

Trays ; Bamboo cutlery ; Cardboard boxes; Biodegradable napkins, etc.

As for kitchen equipment, you'll need to spend around €** for a new electric fryer purchased from a specialist in machines dedicated to the food sector, such as Expondo.

3.3 Comparison with Fast-Food market structure

As the food-truck market in Spain is far from mature, it needs to be set against models that are firmly established in the country, such as fast-food restaurants. In fact, food-trucks are newcomers to this segment, although they are distinguished by a more refined and original offering.

As for the big fast-food chains, they are doing well. McDonald 's has a major investment plan, which should bring its total number of Spanish restaurants to *** by ****, ** more than in ****. The number of employees is also set to rise from **,*** to **,*** in * years.

evolution of the number of McDonald's employees Spain, ****-****, units Source: ****

**% of restaurants operate under the franchise model, with a total of *** franchisees across the country. Some franchisees own several restaurants. This raises the question of whether the franchise model could be applied to the food-truck segment, to exploit the full potential of this concept and bring it to maturity.

Finally, it's worth asking whether the delivery sales model has a bright future in the food-truck world, given that McDonald's Spain management reveals that since the pandemic, **% of sales have been generated by delivery services. Most of the delivery services used by consumers are McDelivery, McAuto and Take Away.

McDonald's ...

4.1 Price per product

Spain's best-known food-truck is chef Dabiz Muñoz's Goxo, which in **** was awarded the prize for best chef in the world for the second year running in The Best Chef Awards international competition. We present his menu here, to give you an idea of the high end of what food truck prices can be:

Source: ****

4.2 Offer by food type

On a global scale, it is possible to distinguish the sector's revenues by food type. In ****, for example, **% of food-truck sales will involve fast-food products[***].

Revenue breakdown by product category World, ****, % Source: ****

Over the long term, the fast-food segment is the most dynamic. However , the fastest-growing segment over the decade is likely to be organic and vegetarian products. Popular with Millenials, this type of product could generate sales growth of +*.*% per year over the ****-**** period.

Growth in the vegan segment World, ****-****, US$ million Source: ****

5.1 Standards and regulations

In Spain, you can't sell food just anywhere. You need a license, which is more or less complex to obtain depending on the community in which you are located.

The most important legislation for players in the food-truck segment is"Real Decreto ***/****, del ** de febrero", which regulates itinerant or non-sedentary sales. It states that:

City councils determine the area in which the activity can be carried out. This is how the MadrEat rendezvous was banned for several months in the past, because it didn't respect the zone decided by the town hall. It is forbidden to set up in areas with access to public buildings, businesses and industries, or to impede traffic. The duration of the authorization is set by the mayor's office according to the amortization period of the investment and the return on capital employed.

Sanitary authorization is also required, depending on the community.

Entrepreneurs are also required to comply with their tax obligations. These are as follows:

IAE (***); RETA (***) for self-employed entrepreneurs; Registration with the Registro Mercantil and sufficient capital contribution in the case of incorporation; Civil liability insurance to cover potential risks (***); Obtain a license to sell food:"Carnet de manipulador de alimentos" Obtain a license to ...

6.1 Segmentation

• McDonald's
• Burger King
• DiverXO
• Morcillas de Villada
• El Kiosko
• Lacomma food trucks
• Telepizza