Recession reaching the food carts

July 23, 2009|By Matt Flegenheimer, Inquirer Staff Writer
  • Sami Dakko, 70, at his Rami's Luncheonette food cart where he sells Middle Eastern cuisine to the Penn campus, is facing tougher times.

It's late in the afternoon - near closing time for Rami's Luncheonette, a food cart on 40th and Locust Streets - and Sami Dakko is waxing philosophical.

"When the rain comes," the owner says, peering at the empty sidewalk, "it comes for everybody.

Dakko's is the consummate Ellis Island tale. Though a successful real estate developer in his native Lebanon, Dakko hungered for the promise of American shores, bringing his family across the pond to a relative's place in Havertown in 1985. With no culinary experience to speak of, he opened a Middle Eastern food cart, named for his eldest son, on the west end of Penn's campus just months later.

Hasn't left since.

But this year, for Dakko and so many others, has been different: The economic crisis has taken a sizable chunk out of his bottom line. For a cart that has helped finance the lives of a wife and three kids - including the college education of his youngest son - the lean times represent a marked shift.

"I think it's my fault, not the business," Dakko said. "I'm getting old."

The facts, however, don't seem to support his self-effacing theory.

"Instead of sandwich and drink, he buys sandwich without drink," Dakko said of the typical customer. "People tighten up a little bit."

More significantly, the cost of ingredients - pita, spices, lamb meat - has risen dramatically, according to Dakko. At the same time, his prices haven't changed in five years, and customer flow is roughly the same, by his estimate. (He does no formal accounting.) Thus, despite relatively lateral movement in prices and foot traffic, Rami's has become a depreciating product.

Similar trends have been reported industry-wide. John Hemo, owner of Hemo's on 38th and Walnut Streets, says that bread and cheese prices have climbed steadily over the past year. His soft drink distributor has upped the ante as well, raising wholesale prices from $14 to nearly $19 for every 24-drink case. Even non-edible items, such as paper bags and straws, have burned ever-increasing holes in the wallets of cart operators.

"Last year, nobody felt it," said Paul Tolis, owner of Paul's on Broad and Arch Streets. "[Now], we're all broke."

Tolis - whose cart is down 30 percent this year, he estimates - says that customers are gravitating toward less expensive items, like hot dogs ($1.25), while pricier sandwiches like the cheesesteak ($3.75) become a much tougher sell.

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