STAY CONNECTED TO VIBRANTVICTORIA
WHAT'S HAPPENING ON CITIFIED VICTORIA
Less than an equivalent brick and mortar. No washrooms to rent, no parking to maintain, reduced costs due to less warewashing, lower staffing costs due to no service, landscaping, snow removal..
Aren’t there inherent cost savings in food trucks? I’m happy to be enlightened of course!
Hi Matt! That's the thing - we aren't a food truck. We are considered a brick and mortar as we are permanent structure (went through two years of development permit processes back in 2005-2007). We do in fact have washrooms we pay for, and have and maintain a rooftop garden. All our wares are compostable which of course is very expensive. We pay 3-4k a month for composting and recycling. As for staffing, we generally have 6-7 staff on at a time which is similar to small counter service eateries like ours, as far as I know. On top of it, just having to completely close down a business and then re-open again every year is an expensive process.
I know the rent amounts several popular quick/casual counter service restaurants are paying downtown and places such as Cook St Village. Our rent is quite a bit higher (and we had to bring our own buildings, put in and maintain all the infrastructure - gas lines, water, plumbing, grease trap, etc).
The GVHA charges its commercial tenants (or at least most of them) a base rate rent and percentage of gross revenue. Base rates and percentages go up with each new term. This can be tough on restaurants, as you know - with the rapid increase of food prices leading to increased menu prices - this means that every time we raise menu prices to keep up with rising costs, our rent goes up. In addition to this, tenants pay a Facilities Maintenance Fee - also a percentage of sales. This covers costs of common areas on the pier (i.e where people stand in line), as well as snow removal (though with our seasonal hours that's only happened a couple of times!). It does not include property taxes, which we pay annually. With some of the most expensive protein out there, and high priced items such as local halibut being top sellers, that can really affect rent costs!
Our rent was quite low the first year as they thought it would be a tough location. "No one comes down here!" we were told. And to be honest was kind of correct for that year. Now the high lease costs are apparently justified for the "prime location"! The reality is it's a concept that wouldn't work as well anywhere else, so we are lucky to be where we are.
