Peddling Healthful Street Food To Eco-Urbanites: Will It Fly?

On the Fly hopes to enliven the street-vendor niche by offering fare for environmentally conscious palates. "It's Whole Foods meets 7-Eleven," said finance chief Michel Heitstuman. (Richard A. Lipski -- The Washington Post)
Buy Photo

George Harrop, who started and sold a group of upscale espresso bars in downtown Washington, said that aside from controlling costs, which is the bugaboo of most food businesses, On the Fly must become something special to its customers in order to be a success.

"The demographic looking for health food is looking for experience," Harrop said. "If they can provide that, they might have a chance of success. But does the perception of health food fit with a truck on the street?"

In this case, a truck that resembles a fly.

The "smartkarts" are electric vehicles built by a Chrysler division in Fargo, N.D., and are specially outfitted with steam wells, holding ovens and refrigeration so that On the Fly can serve hot food at regular locations. Two are in service: the Diego specializes in Latin food and is stationed at Eighth and H streets NW, while Smokin' Joe at Seventh and F NW has a barbecue menu. A third vehicle, Ms. Miyagi, will arrive later this month and offer Asian Fusion cuisine at a location yet to be named.

The conventional cafes are above the Farragut North Metro station and at the Results Gym on G Street SE.

Klein, Heitstuman and their partner, Christopher Lynch, 38, owner of L'Enfant Cafe, divide up duties: Klein knows transportation and the city; Lynch knows food; Heitstuman minds the money. They raised about $1 million to get their business off the ground, including nearly $500,000 borrowed from banks. The three partners chipped in $100,000, and investors made up the difference

"I am in it for the long haul," said Jenny Crawford, a real estate agent who invested in the firm because she said there's a niche for good street food in D.C. "We have the option of reinvesting or pulling out at the end of 2009, and then annually after that."

Heitstuman said the firm hopes to be cash positive this year, depending on how fast it grows. The company, which employs 15, within months plans to have eight food carts stationed around the city at a cost of up to $40,000 per truck. A third cafe may open this summer.

There could be more after that, depending on revenue and demand. They also have their eye on a spot somewhere near the new Washington Nationals Park, the baseball stadium that opens March 30.

"Our business plan is to provide great food for people of D.C. and other cities as we move forward in an environmentally conscious way," Klein said. "We are trying to provide a healthy alternative where people live, work and play in high-density areas with the highest traffic. And if we do the right thing for our customers, and do the right thing for the environment, they we will get a good return."