Home
/
RELIGION & LIBERTY ONLINE
/
Study: How overregulation is stifling the food truck revolution
Study: How overregulation is stifling the food truck revolution
Jan 30, 2026 4:18 AM

As protestors continue to boldly decry “corporate greed” with little definition or discernment, progressive policymakers are just as quick to push a range of wage controls and market manipulations to mitigate the supposed vices of free and open exchange.

The painful irony, of course, is that the victims of such policies are not the fat-cat cronyists at the top, but the scrappy challengers at the bottom.

We’ve seen it with the recent embrace of the $15 minimum wage, which continues to cripple and dismantle small businesses wherever it’s found, from Seattle to Minneapolis toCaliforniato New York. But while the wars over wages tend to be the loudest and most prominent, we mustn’t forget the pains and misfortunes due to plain-old regulatory excess, subtle and unexciting though it may be.

In the restaurant industry, for example, food trucks have posed a healthy challenge to the status quo, rattling entrenched corporate interests, diminishing barriers to entry, and expanding opportunities for aspiring restaurateurs of all backgrounds. But alas, such opportunities are beginning to disappear in many cities across the country, leaving many struggling beneath the weight of a growing pile of rules and regulations.

In Food Truck Nation, a new study from the U.S. Chamber of Commerce Foundation, we see the scale and severity of the damage caused by a range of these regulatory roadblocks.

Compiling in-depth analysis of food-truck rules from 20 American cities, as well as in-depth surveys from 288 food truck owners, the study concludes that “in spite of rapid growth, regulatory barriers appear to be slowing a once hot industry.”

That trend of food trucks morphing into and being a part of brick-and-mortar restaurants is accelerating. In nearly every city in which they set up shop, food trucks offer a net positive to the established restaurant industry. While official figures on that type of growth are elusive, neighborhoods where food trucks cluster, such as around Washington, D.C.’s Farragut Square, have seen visible, itant growth in brick-and-mortar establishments.

In spite of rapid growth, regulatory barriers appear to be slowing a once hot industry. Market research by IBISWorld found that “despite strong petition and unfavorable regulatory conditions in some cities have limited the growth of industry vendors.” That report predicts food truck growth will grind to a halt over the next few years. After five years of rapid growth, expected food truck growth is now only 0.4% a year through 2020. Several of America’s largest cities are already experiencing slower, or zero, growth of their local food truck economy.

The study ranks American cities by the food-truck friendliness of their regulatory climates, using average scores to indicate the ease or difficulty of three distinct activities: obtaining permits and plying with restrictions, and operating a food truck.

While cities like Portland, Denver, and Orlando lead the way in friendly regulatory environments, others like San Francisco, Washington, D.C., and Boston place solidly at the bottom, each due to excessive rules, fees, and restrictions. “On average, starting and maintaining a food truck for one year requires an entrepreneur plete 45 separate government-mandated procedures over the course of 37 business days, and spend $28,276 on permits, licenses, and ongoing pliance,” the study concludes.

We also learn that the total weight of such regulations is far heavier than that endured by traditional restaurants, due (most likely) to intra-industry lobbying by petitors. “When new regulations enter the books, their sheer variance from city to city often betray their arbitrary nature,” the study explains. “At times, they appear to arise at the behest of established firms seeking restrictions against petition.”

Once again, these are not the entrenched economic interests imagined by your typical, garden-variety progressive. “As Harvard’s Edward Glaeser pointed out,” the study reminds us, “’You can begin an pany in Silicon Valley with little regulatory oversight; you need more than ten permits to open a grocery store in the Bronx.’ This same regulatory inequality falls heaviest on food trucks at the state and local levels, directly affecting entrepreneurial opportunity for those who need it most.”

The study also finds that food truck owners are “a diverse crowd of rich and poor and represent all races and genders.” In Chicago, for example, “roughly 80% of local food trucks are minority-owned small businesses,” most likely due to the (previously) low barrier to entry. “Owning and operating a food truck does not necessarily require an expensive degree, family connections, or English language skills. You just have to stand the heat.”

These are businesses that are vulnerable, independent, and unprotected, almost by definition. If we truly aim to expand opportunity for all, including the disadvantaged, we would do well to fight and dismantle the regulatory regimes that seek to stifle such growth.

To read the study, click here.

Image: Ted Eytan, Food Truck Thursday (CC BY-SA 2.0)

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
How Are Jobs Created?
Trump promises he’ll be “the greatest jobs president that God ever created.” And Sanders says he’d spend $18 billion to create jobs. But can the president actually create jobs? And if so, do we want the government to do so? In this brief video, economist Don Boudreaux discusses what happens when the government takes tax money from some businesses to create jobs in others. ...
What motivated ‘leave’ voters in Brexit?
In the wake of the British vote to leave the European Union, many are wondering what led the majority of voters to affirm the Brexit. In mentary Brexit: Against the Political Class, Samuel Gregg points out mon element in all of the motivations behind the “Leave” decision: a frustration with established career politicians. Gregg writes: The reasons why a majority of British voters decided that their nation was better off outside the European Union were many and not always in...
Investing prudently and morally
David Bahnsen explains “value investing” at Acton University. How should your views on morality affect your investment strategy? David Bahnsen, Chief Investment Officer at The Bahnsen Group, argues in an Acton University presentation titled “Value Investing” that the question is a plex one. He begins by outlining the purpose of investment consistent with its definition: to make a profit. Without growth, there is no investing. Similarly, there is no such thing as a risk free investment. Biblical investment is therefore...
We’re all Dead: How J.M. Keynes – And His Critics – Went Wrong
“Critics of John Maynard Keynes were so determined his economics were wrong that they allowedKeynes to dictate the terms of the debate,” says Victor Claar, professor of economics atHenderson State University, in his Acton University lecture. He continues to describe Keynes flawed anthropology with respect to classical economists and the Great Depression. Key observations of human nature include the principles of work, property, exchange, and division of labor. We can survive and prosper, take ownership of our work, support and...
The Costs of Jailing Teens
In early June 2016, Matthew Bergman, 15, allegedly admitted to police that he killed his aunt and stabbed his mother in Davidson County, Tennessee near Nashville. When mit crimes in the suburbs or in urban areas, experts are ambivalent about what to with them because of the long-term consequences of youth incarceration. Low munities get hit the hardest. Since the 1980s juvenile incarceration rates have increased steadily creating a phenomenon often referred to as the “school-to-prison pipeline.” There are many...
Daniel Hannan on the Conservative Case for Brexit
In the hubbub surrounding Brexit, many conservatives have cheered the United Kingdom’s vote to leave the European Union, hailing it as a win for freedom, democracy, and local sovereignty. Yet forthosewho disagree, support for Brexit is painted as necessarily driven by fear, xenophobia, and protectionism.Although fear of immigrants and narrow nationalism have surelyplayed their part, such sentiments and attitudes aren’t the only driversat play, and they mustn’t be heeded if Brexitis actually going to succeed. Indeed, for conservatives in the...
Radio Free Acton: Brexit’s Aftermath with Todd Huizinga
Last week on Radio Free Acton, we sat down with Acton Institute Director of International Outreach Todd Huizinga to preview the ing Brexit referendum in the United Kingdom. This week, we’re back again with Todd to review the stunning results of the referendum, the reactions to it in boththe United Kingdom and the European Union, and the prospects for EU reform and British prosperity in the near and long-term future. You can listen to the podcast via the audio player...
Video: Vernon Smith on Faith and the Compatibility of Science and Religion
Acton University is a unique conference, a fact noted by Nobel Economics Laureate Vernon L. Smith, who used his appearance on Wednesday, June 15 as an opportunity to “speak on a topic that my fellow economists would never have asked me to speak on”: religious faith and patibility with modern science. We’re pleased to present Smith’s lecture below. ...
Understanding Austrian economics
Carl Menger (1840-1921) | Wikimedia Commons The central theme of the Austrian tradition, which might better be called the liberal tradition, is that society runs itself. This is strongly linked to the idea of freedom in the liberal sense, meaning the opportunity for the individual to advance and to create wealth. Jeffrey Tucker, Director of Content at FEE (Foundation for Economic Education) argues that the Austrian school started by Carl Menger revived an old method of thinking in the liberal...
Is Shifting The Justice Reform Burden Better?
The brokenness of America’s criminal justice system is not just an urban issue. Working class defendants in small towns across America are vulnerable to system that does not protect them from government negligence. For example, New York’s state legislature approved new indigent defense measures last week that finished an almost decade long battle over statewide indigent defense problems. The case began with a 2007 lawsuit by the NY Civil Liberties Union on behalf of several indigent defendants (Hurrell-Harring et al....
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved