Rising Tensions: Phoodery Food Truck Owners Clash with Phoenix Operator – What You Need to Know

By the time the Phoodery in downtown Phoenix celebrated its first anniversary in July, the mood among its restaurant owners was far from festive. While the property owners praised the transformation of an old part of downtown into a vibrant food destination, the tenants felt burdened by skyrocketing costs.

Most kitchen owners reported their monthly expenses rose dramatically—some tenants indicated costs had quadrupled compared to what they initially signed up for. One owner claimed there was “gross mismanagement,” souring their experience at the venue.

Among those affected are The Flying Flatbread and Wok Star. Both have stated they don’t plan to renew their leases set to expire in April 2026 due to high costs and a lack of transparency. They claim they were misled about financial details when they signed on.

The Phoodery opened in July 2024 as part of a public-private partnership aimed at revitalizing a neglected area of Phoenix. It featured five food outlets and a craft beer taphouse, modeled after successful food truck courts in Oregon.

Initially, the kitchen operators agreed to pay $2,000 a month in rent, plus an estimated $1,150 in common-area maintenance (CAM) fees. However, recent invoices showed CAM fees skyrocketing to a staggering $4,700 on average, pushing monthly expenses to nearly $7,000. This transformation has left many struggling to cope financially.

One owner, Alec Hurdle, expressed frustration: “We signed up for $3,150 a month but quickly found it ballooning to double that.” The unexpected rise in CAM fees—from about $13,800 annually per kitchen to over $45,000—has added significant stress.

Property managers attributed the increased CAM fees to higher business volumes, claiming that restaurants in the Phoodery had seen sales much higher than expected. However, some tenants disputed these claims, stating they weren’t receiving sufficient revenue to justify the expenses incurred.

The situation mirrors the struggles of many small business owners in high-rent areas. According to recent data, nearly 40% of restaurant owners nationwide report increased operational costs, limiting their ability to thrive.

Meanwhile, tenants lament that the management’s attitude has changed from supportive to dismissive. Problems arose when kitchen owners were told they could focus solely on their food while management handled expenses. Instead, they found themselves dealing with additional unanticipated costs, from picnic tables to trash disposal.

Despite the stress, some tenants still cherish the community aspect of the Phoodery. They hope future diners continue to enjoy the unique offerings that inspired them to join. However, many feel it’s crucial that potential new tenants get a complete picture of what to expect financially.

As these small businesses face mounting challenges, the future of the Phoodery hangs in the balance. Owners like Hurdle and Tarraf worry about surviving yet another offseason without financial clarity and support.

For more information on the challenges faced by small business owners, you can visit the Small Business Administration for resources and insights.

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