Food Trucks Have Brought a

Food trucks have brought a revolution when it comes to the food scene in D.C. They have been struggling to exist as there are no regulations that govern their existence. The existence of these food trucks has a great impact on cebrick -- and-mortara restaurants .they impact these restaurants in many ways.

The paper will look at how the food trucks impact cebrick -- and mortara when it comes to prices and market share.it will also look at why the article indicates that cebick and mortara restaurants attempt to ban the trucks from the understanding of market structure. The food trucks have a great impact when it comes to how these restaurants price their foods. The food trucks offer the same foods that these restaurants offer.

This means that there is a struggle between the restaurants and the food trucks on the prices of the food. This is due to the fact that both the restaurants and food trucks want to get as many customers as they can .this the price setting will be determined by both the food trucks and restaurants.in most cases the food trucks offer their food at lower prices compared to this restaurants. This is because the operation costs of the food trucks are lower compared to those in the restaurants.

This means that the food trucks will price their food lower compared to the restaurants. This will push the restaurants to bring down their prices such a way that they are same as those offered by food trucks or lower (Needleman, 2012). It is a clear indication that there are price wars due to the existence of food trucks near these œbrick-and-mortara restaurants. The food trucks also greatly impact the market share of the food industry around D.C.

This is because these food trucks often have similar foods as those provided in these restaurants at lower prices and at the same time they are convenient. This means that many customers will opt to buy food from the food trucks compared to buying the same food from thee restaurants. Therefore the food trucks will have a great command of the market share. This is due to the fact that they will have attracted and retained many customers leaving very few people visiting the restaurants.

This high command of the market share really cripples these restaurants. Restaurants no longer dominant the food industry and if food trucks continue gaining popularity then they will eventually loose the battle of trying to be dominant in the market. They will end up loosing most of their customers to the food trucks if no regulations whatsoever are put in place to govern the food trucks industry (Needleman, 2012). The œbrick-and-mortara restaurants are attempting to ban the food trucks.

This is because these trucks are bringing alt of competition to these restaurants. The food trucks are capturing many customers as well as dominating a very large percentage of the market share. They are also creating price wars within this industry. This means that the restaurants are really facing stiff competition from the food trucks. The food trucks have created a competitive market structure which has the following characteristics.

First the market structure has many buyers and sellers; there are both the œbrick-and-mortara restaurants and food trucks in the same area selling food. There are also many people who are willing to buy food from.