Food Truck Rental Startup Helps Chefs Get in the Game

Founders Gabriel Gamez and Enrique Loyola (front).

Founders Gabriel Gamez and Enrique Loyola (front).

When the pandemic hit very last 12 months, Dajohn Orange, owner and head cook of downtown-dependent pop-up D Lo’s Kitchen, was compelled to place his desire of opening a brick-and-mortar cafe on hold.  

As a substitute, Orange took a stab at advertising his specialty seafood enchiladas out of a food stuff truck.
Because it was much also pricey to acquire a truck of his have, Orange started leasing a thoroughly outfit ted truck in August 2020 from On the Go LA, a downtown-primarily based meals truck rental corporation.

On his initial outing with the truck, Orange mentioned, he bought out of foodstuff by 6 p.m.

“With On the Go LA, they make it very significantly seamless for you,” he claimed. “All you have to do is soar on the truck and spend your day by day costs, which is amazing. It tends to make it that considerably extra seamless and less complicated to focus on what your objectives are.”

On the Go LA was founded in March 2020 by childhood very best close friends Gabriel Gamez and Enrique Loyola. Gamez has a bachelor’s degree in details science from Cornell University and previously worked in data and analytics at NBCUniversal. Loyola researched economics at Wake Forest College and has worked at Oracle NetSuite and Nowcom Corp.

Gamez explained he came up with the organization notion just after witnessing the crushing affect of the pandemic on community places to eat in Los Angeles.  

“We grew up in South L.A. we saw a great deal of our group influenced by the shutting down, precisely the Hispanic and Black communities that are the heart of the L.A. food culture, in particular in the South L.A. area,” Gamez said. “I preferred to offer some form of option for them to continue to be alive.”

With six workers and a fleet of two autos, On the Go LA is starting off out smaller but is previously earning a substantial influence by supplying enterprise proprietors like Orange a shot at making it in the really competitive L.A. food field.

On the Go LA is also displaying guarantee as a company of its own. In its initially calendar year, the company introduced in earnings of about $50,000. Its spending budget was propped up by numerous grant awards this 12 months.

In January, On the Go LA gained a $25,000 grant from a PledgeLA, a coalition of tech and venture money companies. In April, the business gained $40,000 in the USC Marshall Business enterprise School pitch competitors.
In July, it was chosen as the first-location winner of the Make class in the LA2050 Grant Obstacle, a funding competitors for companies and nonprofits, profitable $100,000.

Matt Geller, co-founder and main government of the Southern California Mobile Food Suppliers Association, a nonprofit advocacy business with about 170 users, said stringent local and state polices make it demanding for companies to obtain or create their very own foods vans. A new food stuff truck in Los Angeles can charge as a lot as $170,000, he explained.

For that explanation, Geller claimed, assets like On the Go LA can be beneficial for organization entrepreneurs hoping to crack into the food stuff truck area.

“The food stuff enterprise is hard, and it’s a minor bit of luck, a large amount of really hard get the job done and a sprinkle of magic to make a brand name work,” he said. “So, this is a great bridge, and I’m genuinely pleased for their achievements.”

The ideal design

To get started, Gamez and Loyola frequented much more than 50 dining places in the South L.A. spot to chat to proprietors about what would support them by the pandemic. Their study uncovered that simply because of Covid-19, fewer buyers were being likely to dining places, and proprietors have been hunting for new means to get to men and women.  
Gamez and Loyola’s first notion was to try to replicate the roaming impact of an ice cream truck for other varieties of food items vendors.

The duo utilized $12,000 from their very own price savings to lease a food stuff truck. In June 2020, they secured their 1st consumer, a area Mexican cafe, and hit the streets of Los Angeles in the meals truck for the initial time.
Gamez said he quickly found out how logistically tough it was to provide in small business when the truck was frequently on the transfer. They speedily switched their design to develop into a limited-expression rental small business for chefs, pop-ups and neighborhood places to eat.

Loyola, who serves as main working officer, mentioned the business takes advantage of a subleasing design in which it leases its two foodstuff vans for $4,000 a thirty day period, then rents them out to clientele for $299 a working day.

Gamez explained the firm also offers for a longer period-time period programs where clients can spend $270 a day for a seven-day period that can be scheduled within a 35-day time frame, or $250 per day for 10 times through a 45-day interval.

Gamez and Loyola challenge that the greatest total of gain they can make off just about every truck is about $101,000 on a yearly basis.

“We decided to come in at this charge to deliver that overall flexibility,” Gamez said. “Before we existed, if you preferred to hire a truck for a working day, you can go to a food items truck owner at a commissary large amount and talk to them if they will rent out a truck, but they will ordinarily switch all-around and cost you $500 to $600 for just one day just simply because it is not their business enterprise. It is not what they do, and there’s a large amount of legal responsibility included with leasing out your truck on a small-term foundation.”

The vehicles are saved at the Slauson Foodstuff & Beverage Wholesalers Inc. ton close to Huntington Park. After a client picks up a truck, they have an eight-hour period of time to sell foods ahead of returning it to the whole lot by 10 p.m.
Every car is outfitted with stainless steel appliances together with a grill table, twin fryer, warming oven, two refrigerators and a sink. The vehicles are also outfitted with rooftop solar panels.

Purchasers ought to deliver their very own cooking materials these as pots and pans, cooking components, and plates and utensils for clients. They are also expected to have a food items handlers’ card and be registered as a restricted legal responsibility company, in accordance to Loyola. 

Boosting companies

Alongside with delivering foods vehicles, Loyola claimed On the Go LA also allows shoppers locate areas to park their vehicles by its relationships with breweries like Frogtown Brewery in Elysian Valley, Trademark Brewing in Long Beach front and Boomtown Brewery in the Arts District.
The enterprise also promotes its purchasers on the On the Go LA Instagram account, and it is doing the job on a “graduate” plan that will aid shoppers work toward acquiring their possess food stuff trucks.

Gamez explained 4 former clients have long gone on to obtain their have food stuff vans soon after renting from On the Go LA. The customers consist mainly of pop-up restaurants like D Lo’s Kitchen that are tests out their corporations for the to start with time.

Orange finished up renting a food items truck from On the Go LA four to six times a thirty day period. More than time, he shared with Loyola his aspirations of 1 working day obtaining his own truck.

“I did it for about a 12 months, and the entire time I’m doing this, Enrique is making ready me to get my own,” Orange claimed.
“When it arrived time for me to get my possess truck, he generally introduced me to the ideal people to get my truck at a fair price.”

By late July, Orange had saved up sufficient profit to sign a prolonged-expression lease for a food truck for $3,000 a month.

Gamez and Loyola, the young children of immigrant mother and father from Guatemala and Mexico, respectively, explained they attempt to set an emphasis on supporting varied dining places and chefs.

“It’s a no-brainer for us to create a organization that will help them and puts them in the spotlight,” Loyola stated.

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