Feasibility of Food Truck Business in Klang Valley, Malaysia

This research evaluates the feasibility of a food truck business in Klang Valley, Malaysia. It identifies the main characteristics of the food truck and its feasibility on the start of the business in the particular area of Malaysia. The study begins with the detailed description and analysis of the mobile food industry especially the idea of the food trucks. The research highlights the importance of the food trucks in the modern day in countries like Malaysia where there is a high demand for cheap but hygienic and well served foods.

Running head: DISSERTATION
A Business Development Proposal to Start a Food Truck in Klang Valley, Malaysia
Name of the student:
Name of the university:
Author note:

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Acknowledgements
Thank you to all of the people who have helped listened and encouraged me throughout this
whole research. I am indebted to my supervisor ……………………. whose guidance, advice and
patience have been immeasurable. My sincere thanks to all members of the……………
[Mention your university/college name], both staff and students, whose continuous support have
made this thesis possible.
I would like to thank all of the participants in the study: students, teachers and Local Education
Authorities, for the time and help given throughout. Without their participation, this research
would not have been possible. In this context, I am also thankful to them, whose research work
helped me to execute this paper well.
Finally, I thank my family, without whom this thesis would not have been started or completed!
Your encouragement and support have never faltered; thank you.

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Executive summary
The following research has evaluated the feasibility of a food truck business in the Klang
valley of Malaysia. Food Trucks are customized trucks that can move from one place to another
and serve fast foods to the customers. These trucks are designed in a special manner to fit all the
necessary items of cooking, preserving and serving in a particular place of the vehicle. The
research has identified the main characteristics of the food truck and its feasibility on the start of
the business in the particular area of Malaysia. The study begins with the detailed description and
analysis of the mobile food industry especially the idea of the food trucks. The research
highlights the importance of the food trucks in the modern day in countries like Malaysia where
there is a high demand for cheap but hygienic and well served foods. It has also highlighted the
importance of the street food industry of Malaysia. The growing income discrepancies among a
selected range of high society individuals have made most of the population to be dependent on
cheap quality street foods that are mostly easily available.
A major finding of the research has been the characteristic of the particular business as it
is seen that the food trucks generally have no such competition in the market. Eating in a food
truck can also be time consuming as because it does not take much time to order and serve. Thus
time savings is one of the major benefits of the following industry. The study also focused on the
feasibility of the new business in the Klang valley and reported that going by the current trends a
business which will serve local Malaysian dishes can be feasible and sustainable for doing
business in the organization. The research ends with the conclusion where a brief summary of the
research has been provided. Lastly the research has provided a recommendation part where a
number of recommendations for improving the performance and ensuring success for the
business has been provided in an organized manner.

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Approval Page

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Table of Contents
Chapter One: Introduction...............................................................................................................9
1.1 Industry background..............................................................................................................9
1.2 Business opportunity/issue..................................................................................................12
1.3 Purpose and rationale...........................................................................................................12
Purpose......................................................................................................................................12
Admiration to other entrepreneurs.............................................................................................13
Unwillingness to work under anybody’s supervision................................................................13
Willingness to take the risk........................................................................................................13
Inability to handle a routine job.................................................................................................13
Entrepreneurship as a mandatory journey.................................................................................13
Rationale....................................................................................................................................13
1.4 Terms of reference:..............................................................................................................14
1.4.1 Research Questions...........................................................................................................14
1.4.2 Research Objectives..........................................................................................................14
1.4.3 Research Framework........................................................................................................14
Chapter Two: Business Review.....................................................................................................16
2.0 Introduction..........................................................................................................................16
2.1 Financial feasibility.............................................................................................................16
2.2 Marketing feasibility............................................................................................................19
2.3 Market feasibility.................................................................................................................21
2.4 Operational feasibility.........................................................................................................23
2.5 Identification of gaps...........................................................................................................25

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Chapter Three: Research Design...................................................................................................26
3.0 Introduction..........................................................................................................................26
3.1 Research Methods................................................................................................................26
Selection of the type of research method...................................................................................26
Rationale for the selection.........................................................................................................27
3.2 Collection Methods..............................................................................................................27
Rationale....................................................................................................................................27
3.3 Ethical Issues.......................................................................................................................28
Chapter Four: Data Analysis.........................................................................................................29
4.0 Introduction..........................................................................................................................29
4.1 Case Findings Analysis........................................................................................................29
4.1.1 Qualitative Analysis..........................................................................................................29
4.1.2 Quantitative Analysis........................................................................................................32
4.2 Business Implications..........................................................................................................33
The implication will be checked in respect to its feasibility with various operational domains
such as the follows:....................................................................................................................33
Market feasibility.......................................................................................................................33
Marketing feasibility..................................................................................................................34
Financial feasibility...................................................................................................................36
Table No 1: Sample Table showing Start up Expenses for a Mobile Restaurant......................36
Table No 2: Sample Table showing Monthly Projected Sales for a Mobile Restaurant...........38
Table No 3: Sample Table showing yearly projected sales for a Mobile Restaurant................39
Operational feasibility...............................................................................................................39
Table No 4: Demographic Background of the respondents.......................................................40
Table No 5: Choice for food of the respondents........................................................................41

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Table No 6: Most Frequent Mention Traditional foods and drinks...........................................43
Chapter 5:.......................................................................................................................................43
5.0 Conclusion and Recommendation.......................................................................................43
5.1 Conclusion...........................................................................................................................43
Name of the Company...............................................................................................................44
Mission of the Company............................................................................................................44
Vision of the Company..............................................................................................................45
Objectives of the Company.......................................................................................................45
Marketing Plan...........................................................................................................................45
Segmentation, Targeting and Planning......................................................................................45
Marketing Mix...........................................................................................................................46
Strategic Growth........................................................................................................................47
Organizational or Operational Plan...........................................................................................48
Human Capital Plan...................................................................................................................48
Business Process/Value Chain Analysis....................................................................................49
Financial Planning.....................................................................................................................50
Financial Statements/Budget.....................................................................................................50
Table No 7-Start up Cost of the Food Truck.............................................................................51
Table No 8-Depriciation and Amortization Schedule...............................................................52
Table No 9-Income Statement the Food Truck.........................................................................54
Table No 10-Cash Flow Statement the Food Truck..................................................................55
Key Result Areas and Key Performance Indicators..................................................................55
Assumptions, Explanations and Justification............................................................................56
Implementation Schedule..........................................................................................................57
Time Schedule...........................................................................................................................57

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Table No 8–Time Schedule.......................................................................................................58
Gantt chart.................................................................................................................................58
Figure no 1– Gantt chart............................................................................................................58
Critical Success Factors.............................................................................................................58
Risk Mitigation..........................................................................................................................59
Table No 9–Food Truck Risk Assessment................................................................................59
References......................................................................................................................................61

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Chapter One: Introduction
1.1 Industry background
According to Shahwahid, Bakar and Eksan(2018),food truck industry is increasingly
becoming a phenomenon and gaining popularity around the globe. There can be observed a
distinguishing impact of food truck business on different countries in the world. Food truck
influences the economic, social and cultural opportunities for both customers and vendors in the
United States of America. The contribution of food truck is expanding in New Zealand to be a
part of New Zealand food tourism industry. The business is a growing success in North America,
European cities and Australia where established brand restaurants are expanding their businesses
to the food truck sector to emerge as the pop-up restaurants. Due to the low start-up cost, expert
chefs and the young entrepreneur in developing countries are heading to food truck businesses.
From the perspective of consumers, food trucks are a good way to avail fresh, healthy and
varieties of food in quick times in a much friendly environment.
In the opinion of Ideriset al.(2017), mobile food or food truck has become a popular
choice among the people across the globe. It has similarities with fast-food outlets in regards to
serving quick, convenient, mouth-watering and tasty food. Since, it uses a miniature commercial
kitchen, it is compulsory for food truck to meet the state’s requirement of sanitation from a brick
and mortar restaurant. In addition to this, food truck operators are also required to comply with
others local ordinances. There is an encouraging demand for this kind of food service from
consumers. However, studies revealing the prevalence of food truck business in Malaysia are
very limited.
As opined by Martin (2014), In North America, food truck industry is liberalized and
provides a very low-cost entrepreneurial opportunity. Personal risk is limited as well. Since, the
start-up costs are comparatively lower than those associated with brick-and-mortar restaurants; it
is more suitable for those with less capacity to spend. Additionally, Exit costs are also
comparatively lower than a brick-and-mortar store which means an easy exit for vendors in terms
of not meeting the sales target. These are a few attracting and potential reasons which attract
households people in particular towards the industry who want to improve their living standard.
Food truck industry also helps to improve the revenues for fixed venue owners. For consumers, it
offers them substantial benefits. It provides them varieties of foods at places where traditional

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restaurants had never existed. With regard to quality, complaints from competitors’ end tend to
be made against food safety and the sanitation level. However, in most cases these complaints
are unsubstantiated. A study examining the statistics collected from samples of Major American
cities have found food trucks as sanitary and safe as restaurants.
Esparza, Walker and Rossman (2014) says that food truck industry which has recently
been allowed to emerge after decades of banning on street vending faces a burdensome
regulation. Only few of all applicants are allowed to start-up a food truck business. Their
applications in the form of business plan are being judged by a panel of five members of which
three are associated with the brick-and-mortar industry. Food truck owners are provided with
sites where they can sell food products. These sites are very limited in quantity and each site can
only have a maximum of three food trucks. Food truck vendors are not allowed to sell except at
designated sites. In addition to these difficulties, food truck business will not be allowed to those
who do not already own a restaurant. Apart from expenses on other regulatory compliances,
annual permit costs a huge sum of amount like $2,075-or $1,215 for just a seasonal permit.
A heavy burden regulation against food truck industry in Montreal is on similar line with
Chicago. It appears as if both Montreal and Chicago have adopted these steps to eventually
discourage the spread of food truck business and flourish brick-and-mortar restaurants.
Municipal ordinances burden falls on those who are poorer are mostly immigrants. Many of such
immigrants work illegally anyway. According to Williams (2012), a removal of burdensome
regulations on food truck would certainly see 2,145 jobs legalized. Additionally, 6,435 jobs will
be created. There can be an increase of total annual sales from $40 million to $160 million.
Additionally, there will also be an increase in new local sales tax revenues from $2.1 million to
$8.5 million. It looks apparent that there are ample of benefits of a loosening in regulations. To
avoid any resistance to such advantageous economic reform, there is a need to consider, as part
of a plan, measures to ease hard regulations. There is also a need to modify the taxes being
imposed on restaurants. Notably, Montreal ranks 74th out of 100 in regards to ease of doing a
business in the city. It is largely due to burdensome regulations and fiscal burden. By considering
a loosening of regulations for all kind of food business will be an advantageous move for the city
and the country as well.

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As stated by Shpigel (2015), there are differences in behaviors for different kinds of food
entrepreneurs along the streets of Chicago. Food entrepreneurs in Chicago can be found in the
form of food trucks, food carts and street vendors. All these represent a more or less the similar
business; however, they differ in regards to regulatory burdens being imposed on them. Street
vendors are mainly the immigrants who are neither skilled nor educated. Their street shops are
also different from a food truck in regards to kitchen, chef and food quality. Since, street vendors
are less systematic than food trucks and food carts and also that they are immigrants, municipal
ordinances and other regulatory bodies are much harder on them. Street vendors are not easily
allocated with sites. Additionally, they are inspected for sanitation and food quality. On the other
hand, there are comparatively fewer troublesome circumstances for a food truck. The right of
food truck to gain the economic advantage of the city is treated more leniently than those of
immigrant vendors. For a positive growth in the economy, there is a need for supporting the
creative ventures. It is unfair to call a city as being creative towards the economic gains which
behaves differently with diverse forms of food business. Instead, there is a need for a uniform
treatment with irrespective of the kinds of food business. In order to boost the local economy,
cities must stand to be tolerant and immigrant-friendly.
In the opinion of Petersen(2014),during the few decades in past, urban theorists including
Ray Oldenburg and William Whyte have observed the impact food vendors have on urban spaces
in the form of drawing people outside and forming an informal social interaction with them.
With the recent growing popularity of food truck industry especially post-2008, food truck
business provides opportunity for street foods entrepreneurs to revitalize urban spaces. Food
trucks can provide the social, cultural and economic benefits to a community. Food trucks
produce a low-cost and an innovative revitalization tool. The author has found a few research
works being conducted on the benefits of food truck industry. One of such studies are of
Wessel’s study being conducted in San Francisco, California. The study has found people as
being socially connected with the food experiences of food truck in Kansas City, Missouri.
Tway’s study in San Francisco found that spaces occupied by food trucks were perceived to be
more active and vibrant with their existence. Kapell’s study in Portland, Oregon found that food
trucks encouraged unique cultural expressions, economic development and street vitality.
Mueller’s study in Austin, Texas found food trucks as the low-cost revitalization tool that
effectively utilizes the underutilized lots. It does so by promoting commercial activity, activating

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the streetscape and disseminating culture. Overall, these studies have found food truck business
as making urban spaces more vibrant and active. These studies have found food truck business as
catalyzing the urban revitalization. However, these studies have also confirmed the possibility of
burdensome regulations on food truck industry. Regulatory restrictions can pose barriers to food
truck business. An increasingly growing proliferation of food truck in recent times has posed
challenges to city staffs and planners to reconsider the use of urban spaces and streets. While
street spaces are more often seen as for transportation means, it still can be made a more vibrant
social space.
1.2 Business opportunity/issue
Food truck industry faces a dissimilar behavior in terms of opportunities and issues in
different parts of world. The food tuck industry is fragmented in nature due to an increasingly
growing entrance of new enterprises in recent times. The trend is expected to continue in future
as well in less saturated regions. In search of increasing the disposable income, household
population is largely entering the food truck sector. An increasing inclination of consumers
towards healthy, tasty and easily available foods is one of the factors of attraction for the
household people towards the food truck business (Martin 2014).
The food truck division also faces challenges in the form of regulatory hurdles. These
hurdles have restricted the growth of the industry in recent past. Parking laws, sanitation issues
and other municipal ordinances are a few of worries to the future of food truck business. Food
truck entrepreneurs will be able to enjoy the potential benefits of the sector provided that
industry associations work closely with other restaurants and city governments. There is a need
to reconsider the role of food trucks and urban spaces to promote the growth of food truck
business in cities across the globe.
1.3 Purpose and rationale
Purpose
The main purpose of this business developmental proposal is to give entrepreneurs a
potential industry from where they could meet their basic criteria of the source of income.
Following are the reasons for why entrepreneurs look for potential start-up business over a job
(Rawhouser, Cummings and Newbert 2017):

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Admiration to other entrepreneurs
Those who want to be entrepreneurs they admire other successful entrepreneurs thinking
that they also have a few of such qualities as being possessed by such entrepreneurs. These
aspiring entrepreneurs admire others established entrepreneurs for their journey from being
nothing to become successful entrepreneurs.
Unwillingness to work under anybody’s supervision
This is one of the most vital factors that motivate people going for entrepreneurship.
There are a people who do not like to be under anybody’s supervision. These are the people who
think that they should rather have a business than working for a company. They believe that the
only way to work effectively and happily is to work as entrepreneurs.
Willingness to take the risk
Entrepreneurs love to take the risk. They love doing exciting and adventurous things.
They are more often up to going through brainstorming sessions and going for high risks areas.
Whether their concepts become million dollar success stories or fall to debris, entrepreneurs are
happy at seeing through developmental stages.
Inability to handle a routine job
Entrepreneurs are people who do not like doing the routine-basis tasks every day. They
rather love doing innovative works which is hardly possible while being into a job.
Entrepreneurship as a mandatory journey
There are some people who feel that they have no other ways than to go for
entrepreneurial ventures. Their prior knowledge about an industry and the qualification skills in
them do not let them feel good with job industries.
Rationale
Food truck industry can be highly advantageous for potential entrepreneurs, consumers
and urban spaces. The industry is a rapidly growing prospect for aspiring entrepreneurs. It is also
a prospect for social, cultural and economic reforms of urban spaces. It creates a healthier yet
tastier food resource to consumers. The study is needed to reveal how advantageous is the food

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truck industry for so many stakeholders and what are all its challenges in the form of regulatory
hurdles.
1.4 Terms of reference:
1.4.1 Research Questions
For the current research work the research questions are as follows:
a) What the financial requirements are for a food truck start-up business?
b) What marketing strategies are to be adopted to promote the food truck business in Klang
Valley, Malaysia?
c) What food standards are needed to be maintained to serve foods to people of Klang
Valley, Malaysia?
d) What the human resource requirements are for an entrepreneurial venture with food
truck?
1.4.2 Research Objectives
 To identify the financial requirements for a food truck start-up business
 To understand marketing strategies needed to be adopted to promote the food truck
business in Klang Valley, Malaysia
 To determine the food standards needed to be served to people in Klang Valley, Malaysia
 To analyze the human resource requirements for an entrepreneurial venture with food
truck
1.4.3 Research Framework
 The first chapter covers an introductory part of the dissertation where a background to the
topic is being given. It also covers research questions and objectives.
 The second chapter covers an evaluation of the previously conducted studies by
researchers. Previously conducted studies will be used to draw a conceptual model to
understand the objectivity of the present work.
 The third chapter gives a methodological approach towards the research topic. It also
covers strategies to be used to analyze the data.
 The fourth chapter largely covers the analysis of the data.

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 The fifth chapter provides a summary to the findings and also recommends areas for
future studies.

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Chapter Two: Business Review
2.0 Introduction
Business plan is a document that describes a business’s goals and the ways it is going to
fulfill those objectives. It is like a living document which needs to be reshaped in response to
external drivers on a regular basis. Preparing a business plan is a very tricky work which requires
a serious attention from its doers. No matter whether a business plan is related with a start-up
venture or an established firm, both of them is required to pay utmost attention to it to avoid the
undesired outcomes. From the very beginning, there could arise a number of factors that may
challenge the entrepreneurial spirit attached to a start-up (Davidsson 2015).
The chapter covers four different factors to understand the different needs for a start-up
business in the food truck industry. The business plan as stated above can face a number of
challenges in different areas like finance, marketing, quality of service and the human resource
management. The section covers the previously done work on the importance of four chosen
factors in the start-up business in the food truck industry.
2.1 Financial feasibility
A start-up business can face a number of financial challenges that may break the newly
born firms. There can be problems as such the early cash-flow and under-capitalization. These
two are bigger problems at the earlier stage. An effective business plan can help to find solutions
against different issues. It can guide to a number of back up strategies to be considered against
the different challenges (Caramaschi 2016).Despite a low exit cost, there are some financial
constraints which a start-up business can face. One of such constraints are getting loans from
bank. The requirement to have a truck at the initial stage and to have another more trucks to
expand the business, a financial support in the form of a bank loan is required. If that phase of a
business is not maintained effectively, owners will need to bear the entire investments. Since,
food truck business is mostly done by the household people, they can feel the burden of bearing
the purchasing and maintenance expenses of trucks.
As opined by Baharuddin et al. (2015), cash flow management can be a challenge for a
start-up business until and unless the sales have picked up. It appears from the stated facts that it
is important to have a business plan which effectively provides ways to apply for bank loans and

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recommends ways to follow during the earlier days of the venture. Receiving bank loans is not
always easier especially in tough economy. They are hard at small-medium enterprises (SMEs)
in terms of approving their loans. Very few SMEs do actually get the approvals. It is also
necessary to be aware of the cash which those seeking for loans will bear. Banks may seek a 10
or 20 percent of the loan to be paid in cash. In some cases, they are also looking for a 50-50 split.
Additionally, it is also challenging to find banks providing loans for a start-up food truck
business. It is, therefore, important for a start-up business to have an effective business plan that
covers factors like competitive analysis, a marketing analysis, the management process and
financial projections.
As stated byLee (2017), a food truck business requires a low investment being made
upon financial, marketing, human resource and other resources than that of a restaurant. The
investment can be as lower as the 1/5th or even lesser of investments being made on a brick-and-
mortar restaurant. Despite these evident differences in spending limits, feasible and appropriate
strategic making will still be required to avail the funding and avoid financial challenges.
Entrepreneurs can themselves bear the funding or can also move to bank loans. However, the
most prevalent way to initiate a start-up business is to avail the bank loans. A business
development plan should have ways to apply for bank loans. It should also include clauses to
avoid while applying for loans. These strategies are recommended because the global political
impact on banking, local government’s policies for SMEs and the local economic condition can
affect the banking procedures. Hence, banking procedures for granting loans can either be very
favorable or tough as well. It is, therefore, important that the start-up business plan has essential
coverage on entire banking procedures to avoid or reduce the initial shortcomings.
The business plan should also cover things like the nature of loans such as microfinance.
Food truck start-up business may or may not need the microfinance. It should be clearly
mentioned in the start-up business kit that whether the loans required will be huge or
microfinance. As stated by Pei-Wen et al.(2016), microfinance loans granted by both
government and non-government agencies have positive impacts on the business income of
SMEs. It means that SMEs have quite a favorable condition in Malaysia for availing the
microfinance loans. As opined by (Ho and Heang 2016), customer-bank relationship is of
negative nature between SMEs and their government or non-government banks in Malaysia.

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SMEs in Malaysia do not entirely appreciate the efforts and moves being adopted by the
Malaysian government. It appears as if there is the necessity to channel more intensive efforts
and effective measures in the Malaysian government’s policies to promote a growth of SMEs.
Bank financing, in particular, requires some serious reforms. Since, food truck industry in
Malaysia is not yet saturated, there are spaces for development. Food truck entrepreneurs should
go to various banks to avail the required loans. A distributed business with banks in this way
would create competition between banks. Hence, banks can be under pressure to maintain
effective relationship with SMEs.
As opined by Rivolli, Parker and de Carvalho (2017), food trucks give opportunity to
people who desperately wish to increase their disposable income. However, those aspiring to
enter the industry and start-up a business should carefully analyze the financing environment in
the food truck industry. The cost of starting a food truck business in the United States of America
can range from $3,000 USD or also between $50,000 USD and $200,000 USD that includes both
purchase and start-up costs. Apart from start-up costs, spending is needed also on fuel and
maintenance, kitchen equipment rental expenses or purchases, business permits, food supplies,
insurance, food supplies, employees’ expenses and advertising dollars. While these spending can
be substantial, food trucks can prove to be a much profitable venture than its brick and mortar
counterparts. Apart from gaining this economic prospect, food truck owners do also have
opportunity to test different menus. This is an important factor considering the limited space for
foods in truck.
As stated by Kane (2015), ‘Gartner’s theory on financing barriers’ suggests that
“Financing” is the biggest of barriers for starting a firm. It considerably drops in case when an
established and reputed firm is involved in opening up a new business. With higher projected
sales, such firms attain external funding more easily than a comparatively low-in-reputation
firms. However, circumstances are quite different for those willing to start-up a food truck
business. Considering the fact that a food truck business is owned and operated by only a few
people, they face serious difficulties acquiring huge external funding. Kane (2015) indicates
towards that the survey conducted for the study had not asked regarding the kind of funding
food-truck entrepreneurs attempted to attain at the start-up. Therefore, Gartner’s theory on
financing barriers cannot effectively be evaluated.

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2.2 Marketing feasibility
As opined by Hun and Yazdanifard (2014), business should know the ways to reduce
gaps between product and consumers to be successful. Hun and Yazdanifard (2014) also suggest
that segmentation is an answer to this concern. As stated by Hatheway, Kwan and Zheng (2017),
segmentation can be done by considering demographics, psychographics, behavioral and
geographic factors. In context to food-truck business in Malaysia, behavioral approach will be
more suited because food preference in the country is broadly divided by liking towards Halal
and Non-Halal foods. Muslims particularly like the Halal foods. As opined by Shahwahid, Bakar
and Eksan (2018), Halal compliance is an important part of food-truck industry in Malaysia.
Food-truck owners although not being passionate about getting certification on Halal
compliance, they still maintained it. Halal compliance is measured with Halal logo, ingredient
content and hygiene in food products. Wholesale market and factory were found as the preferred
purchasing places. Bakar, Shahwahid and Eksan (2018) argue that Halal compliance is not just
limited to ensuring hygiene in food contents but is also related with religiosity. Bakar,
Shahwahid and Eksan (2018) further say that not all behaviors of consumers need to be
considered by food truck traders.
According to, Najmaei et al.(2017), marketing mix or 4 Ps is an integral part of a
marketing plan. It can be specified as the product, price, place and promotion. In context to food-
trucks in Klang Valley, Malaysia, product will be the Halal foods.‘Halal foods’ is being selected
due to its prevalence among the Malaysian Muslims. However, ‘Halal foods’ should never be
confused with ‘Halal logistics’ as ‘Halal logistics’ is a much wider concept. ‘Halal logistics’
include halal products, places, pricing and promotion. It broadly means using the justified
strategies. As suggested by Hamid, Ab Talib and Mohamad (2014), halal products will be used
for food-truck business in Klang Valley in Malaysia. It includes ritual cleansing, halal tracing
and tracking, halal oriented warehouse and halal ensured transport fleet. As opined by Fathiet al.
(2016),logistics can be used to protect the halalness of foods by facilitating proper transportation,
storage, appropriate handling over supply chains till the moment it reaches to end user. As stated
by Zailaniet al.(2018),service diversity, personnel contact quality, order receipt quality and
service ordering procedures affect the timeliness of halal logistics operation. As observed
byYunanet al.(2017), halal places will mean halal warehouse, halal hubs and halal terminal.

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Halal price will include value-based pricing, growth pricing strategy and pricing objective as per
product-quality. In the opinion of Tieman and Ghazali (2014), halal promotion means event
promotion, push-pull promotion strategy, public relation promotion and promotional alliance.
Alfiero, Lo Giudice and Bonadonna (2017) argue that most food-trucks lack the
impactful marketing backgrounds. Their owners do not have capital to invest in advertising and
promotion. While there are growing usage of social media channels in food industry, food trucks
significantly lacks in this regard. The lack of entrepreneurial skills is another reason why most
food-trucks do not advertise their outlets. With regard to this, it can be recommended to food-
truck entrepreneurs to have effective business plans before entering the industry. The business
plan should have strategies to mitigate the challenge of external funding, ways to attain an
effective management of cash-flow, ability to identify cost-effective advertising tools and the
human resource requirements. In the opinion of Cohen et al.(2017), label or certification system
will add more values to the recommended food menus. Label or certification will indicate that
foods are organically grown or are locally acquired. This step will help to increase the
confidence consumers could have in food menus and marketing.
As opined by Holt (2016), social media channels can prove to be effective advertising
tools for food-trucks. An increased exposure of food-trucks should result in an increased
consumption of food items from food-trucks. As confirmed by Kim, Li and Brymer (2016),
food-trucks do mostly use marketing communication tools to inform its loyal customers in
particular about the location updates. Twitter is particularly used to serve this purpose. Most
food-trucks use Twitter on an average once or twice a day. It was being found in the study that
those who send updates once or twice a day are more likely to stay in the industry. On the other
hand, those who send only a fewer updates on Twitter are less likely to succeed than those send
more updates on a daily basis. Additionally, no significant outcome of sending more than two
updates on Twitter could be found. Food-trucks sending fewer updates on Twitter are correlated
with a market exit sooner. It also indicates that such trucks are not operating every day. Due to
such negligence in part of social media communication, consumers face this challenge to find a
specific truck.
In the opinion of Wang, Pauleen and Zhang (2016), food-trucks with a Facebook page
and a dedicated website is more likely to attract consumers than those that do not. A Facebook

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page can be used to post new arrivals in food menus. The number of likes and comments against
this post would inform on the level of acceptance for new arrivals. Number of shares for the
same post will help to reach to a much wider audience. On the other hand, an official website
would educate users on everything from business timings to food menus and business’s
exclusive facts.According to Felix,Rauschnabel and Hinsch(2017), food-trucks in most cases are
effectively using Twitter to enhance their community engagement. With the use of mentions,
hashtags and retweets, food-trucks are creating communities within specific geographical
regions. Suchcommunitieshas their users and the different followers. The food truck business
looks much brighter when venues, trucks and bloggers communicate one another. As mentioned
by Ainin S., Parveen, F., Moghavvemi, S., Jaafar, N.I. and MohdShuib, N.L., (2015), food-truck
owners use Twitter to build up engagement and interest in consumers. They do it by Twitting
once or twice a day mostly regarding location updates. In this way, such food-trucks are able to
engage with community in specific geographical regions. Some tweets are made to inform about
the latest arrivals in food menus. A regular updates regarding location changes and foods to offer
portray a trustworthy image of food-trucks.
As stated by Bellemare (2015), some food-trucks also use mobile-based applications to
connect with consumers. However, these applications are still at the learning stage as these lack
in punching a powerful user interface and a loads of informative and engaging contents. Mobile-
based application can be a good way to connect with people and develop a community of users
and customers. However, app developers, blog writers, designers and food-truck owners should
collectively work towards bringing in innovative applications that are rich in information and
meaningful as well.
2.3 Market feasibility
According to (Malshe, Johnson and Viio 2017), food truck business in Malaysia can be
credited to collective results of growing urbanization in the country, use of technologies and
government supports to the industry. Food-truck business is now seen as a part of urbanization in
Malaysia. In Malaysia, food-trucks use technology to broadcast their location making it easily
traceable. In regards to social media, food-trucks use Facebook, Instagram and Twitter to be
connected and keep the community updated with location changes, menu shuffling and others.
Google search engine is also being used to see the changes in search figures. Governments

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supports food-trucks business by giving incentives to those who are willing for a start-up
entrepreneurship. Additionally, food-trucks are allowed to locate their trucks in major festivals.
According to Reeveet al.(2018.), marketing needs will be different for a food truck
business than a brick and mortar restaurant. It is because a traditional restaurant is required to
attract customers towards its fixed location whereas a food-truck business has the leeway of
moving its operation to its target market till the moment it adheres to parking codes. Food truck
business is more flexible in regards to switching to new locations; however, it needs to find out
time to be engaged in various social media platforms to update about location changes to loyal
customers. In addition to this, effective marketing strategies will ensure customers coming back
to food trucks. These are some easiest ways to sustain the current growth of food-trucks
business.
In the opinion of Izberk-Bilgin and Nakata (2016), faith-based marketing is a booming
concept in global trades. Muslims especially are largely the untapped segment of market. The
likes of Nestle, McDonald’s and Walmart see this as the potential “one-billion” market. Authors
deny the existing meaning of Halalby presenting a broader meaning of it. According to Izberk-
Bilgin and Nakata (2016), Halal broadly means maintaining fair-trade industries and offering
organically sourced goods.According to Zailaniet al.(2015), Halal compliance policy is a serious
concern in Malaysia; however, companies perform just above the average in meeting the Halal
Orientation Strategy (HOS). Food makers need government supports in the form of halal
certification and logo, tax reduction, financial assistance and infrastructure. Fuseiniet al.(2017)
supports the growing concerns of consumers in particular of Muslims for Halal foods by citing
the rising distress and panic among Muslims for Halal foods. There have been a few instances of
fraudulent activity in the Halal Market in the UK that foods made from pork meat were being
served as Halal foods to Muslims. As stated by Teng and Jusoh(2017), non-Muslims are not
aware of the importance of Halal food. Non-Muslims need to be made aware with health issues,
fair trade, food safety, animal welfare, social justice and the environment issues in order to
understand the importance of Halal foods. In other ways, Teng and Jusoh (2017) encourage
strategies to motivate non-Muslims to use the Halal foods.
As believed by Scholliers (2015), food-trucks in fact have no direct competition from
street food stalls and restaurants. It has little or no threats from restaurants as food-trucks are not

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allowed to operate near restaurants. In addition, food-trucks are popularly known for being more
efficient in providing the locally and organically grown foods. Food-trucks are faster than
restaurants in terms of delivering foods. In addition, food-trucks also have varieties of foods to
offer. As opined by Ali and Abdullah (2017), food-trucks innovate much faster than brick and
mortar restaurants in terms of varieties of foods due to limited spaces in trucks. On the other
hand, it takes a longer time for traditional restaurants to analyze the underperforming items.
Time is consumed due to larger inventories. Food stalls at streets though looks similar to food-
trucks, there are still differences between food-trucks and street stalls. One of the differences is
in food quality which is better and healthier at food-trucks. As stated by Alfiero, Lo Giudice and
Bonadonna (2017), food truck industry attracts entrepreneurs who use innovation in different
operations like marketing, financing and human resource. It is more organized than street stalls.
According toKok and Balkaran(2014), there are many reasons why ‘food-trucks’ is
booming and why consumers are responding to it. The exit cost of food truck industry is
comparatively lower than traditional restaurants. Business start-up costs are much lower than
needed for brick and mortar restaurants. Since, it is a growing sector in both developed and
developing nations, these are potential opportunities for entrepreneurs. From the perspective of
consumers, food-trucks are resources to varieties of healthy and fresh foods. Food trucks are
more affordable than restaurants. Therefore, low and middle-income groups can enjoy the social
environment at around food-trucks at nearly affordable prices.
2.4 Operational feasibility
As stated by Yunanet al.(2017), Halal warehouse adopter satisfaction level is dependent
on the seaport service quality. It means that if service quality is good to excellent then customers
will get the Halal products. Local halal authorities such as Halal Development Corporation and
JabatanKemajuan Islam Malaysia (JAKIM) can contribute to halal logistics provided that the
seaport service quality is also on target. As opined by Syazwan Ab Talib and Bakar Abdul
Hamid(2014), halal logistics which is necessary to produce halal foods does not only depend on
single entity but on many regional and local authorities. The list of entities includes Halal
logistics service providers, governments or government agencies, Halal authorities, Halal
universities and institutes and manufacturers and consumers. Support and collaboration among
these entities is necessary to ensure the production of Halal food. As far as Malaysia Halal

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logistics is concerned, it receives a strong government support. The business model is reputable
in terms of operations which are in the line of Muslim countries. However, Malaysia Halal
logistics lacks the consistency. There is a lack of collaboration between industry players and
JAKIM which is a local authority to ensure the production of Halal foods only. Hence, there are
loopholes in the basics. Halal logistics can be threatened from the absence of uniformity on Halal
standards, scarcity of knowledge and emergence and existence of Haram substance.
In addition to ensuring an adherence to industry’s standards and market demands for
foods to be sold in food trucks, food truck operators can also face regulatory burdens for kinds of
issues. Food truck is indeed a complicated business from regulatory viewpoint as the business
needed to establish both food service and vehicles. Therefore, the business requires obtaining
authorization from several state and local authorities for initiating and maintaining the business
(Ng and Karim 2016).
A state business license is mandatory for food truck operators to initiate the business.
Food truck operators may also need to obtain local business licenses. In Malaysia, truck
operators can obtain the various licenses required to operate; however, operational hours are
limited. For example, a license to operate during lunch hours would mean an operation between
noon to 2pm (Wijayaet al. 2017). License would cost around RM500. Food truck business like
other businesses has no guaranteed financial rewards. According to a daily newspaper in
Malaysia, sustenance with just a single food-truck is indeed challenging. It is because the income
can be lower despite all the hype surrounding the food-truck business. Profit can be as lower as
RM3, 000 for sales between RM30, 000 and RM35, 000. It just shows that a sustained business
with a food-truck would require huge sales on a daily basis. Contrary to this, there are food-
trucks that make modest sales from RM600 to RM700 per day. These trucks struggle for profits.
These facts and figures may vary depending on the truck design, menu, the location, the event
attended and promotional skills of the entrepreneur.
One of the challenges of operating a food-truck is the occasional confiscation of pieces of
equipment as a result of raids being carried out by enforcement officers. Such raids are often
carried out leading both food-truck operators and customers to the trouble. Food-truck operators
are into the trouble considering that they have to rely on day-to-day sales to manage their livings.
Such raids are troublesome for customers as well considering that they have no other better

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option compared to a food-truck to avail foods at such affordable prices (Berad and Momula
2017).In addition, some operators are also trying to receive a permission on extending the trading
hours till 2pm. An association body is being developed to represent these food-truck operators in
front of the administrative system in the country. With the help of the association body being
formed, food-truck operators are trying to get a permit for an extension in the trading hours
during the lunch (Berad and Momula 2017).
2.5 Identification of gaps
The lists of literatures being used in this project were mainly focused around legislative,
financial and operational aspects of a food-truck business. However, a very limited of those
studies had talked about the impact of using social media channels for promoting the food-truck
business. The fact that social media channels can influence the sale is still largely unknown. This
project will try to cover that aspect of a food-truck as well. Moreover, the outcomes of this
project may attract few other scholars towards investigating the impact of social media
advertisement on the food-truck industry.
Chapter Three: Research Design
3.0 Introduction

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This chapter is about to create an overview of research designs to be followed. The
purpose of this study as stated earlier is to analyze a food-truck business from four perspectives
such as market feasibility, marketing feasibility, financial feasibility and operational feasibility.
The chapter discusses research methods and collection methods. It also includes a rationale for
the selection being made separately for both collection methods and research methods. The
chapter also covers ethical issues, which are specific to this research project.
3.1 Research Methods
There are broadly two standard methods for conducting a research project, i.e. qualitative
research or quantitative research. While the qualitative research depends on verbal data, the
quantitative research revolves around the use of statistical data to draw the conclusion. In a
qualitative research, there is just a couple of non-representative cases are utilized as an example
to build up an initial understanding. On the other hand, an adequate number of representative
cases are taken in a quantitative research to identify or suggest a final course of action. It is a
never-ending debate on, which research method, is the most superior (Hussein 2015).Qualitative
research investigates an understanding on human and social sciences, to discover the way in
which individuals think and feel. On the other hand, Quantitative research is a method to create
numerical information and hard facts, by utilizing statistical, sensible and a scientific procedure.
Qualitative research is a subjective approach whereas quantitative, an objective (Ragin 2014).
Selection of the type of research method
For this research project, both qualitative and quantitative research methods are being
used. However, the project has no interviews and surveys being conducted. Since, the research is
a secondary research; it is mainly aimed at referring to a few available documents and records.
These documents and records can be found from academic articles.
Rationale for the selection

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Since, a secondary research approach is instead being used; the project had needed to
have the sufficient data both qualitative and quantitative to effectively answer to research
questions. This strategy is also helpful in conducting an in-depth analysis of the research topic.
Moreover, an insightful study was required to recommend some areas for future research to fill
the gaps in literature in respect to the impact of marketing communication on a food-truck
business.
3.2 Collection Methods
Since, the project is aimed to refer to a secondary research approach; it has followed a
secondary data collection method.
Secondary data is a sort of information that has already been distributed in varieties of
platforms such as books, daily papers, magazines, diaries, online entryways and so on. These
sources are resources to ample of information. These are some most reliable ways to go for
availing the quality data on the research topic. Subsequently, the selection of the secondary
research method for this research project can be validated with data derived from such reliable
resources (Palinkaset al. 2015).
These criteria include, however not only limited to such as the publication date, author’s
credentials, dependability of the source, depth of analysis, the degree of commitment till which
the content goes on developing the research area and so on.
Rationale
Since, a secondary research approach is only being used; hence, there is no other option
than to with types of secondary resources as mentioned in this section. The purpose of this
research project is to generate a large scale of information to help entrepreneurs understand the
background stories of a startup project in the food-truck industry. The purpose can only be
served if the project is able to find reliable data. Nonetheless, there is no better way that to refer
to secondary resources such as books, magazines and so on for a secondary research project.
3.3 Ethical Issues

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There can be an ample number of ethical issues depending on the kinds of research
method being adopted. Primary research will have a different set of ethical issues whereas the
secondary will have the few others. Since, this research project has followed a secondary
research approach; this also faces some ethical issues. Those are (Adamset al. 2017):
Ethical issues in secondary data may vary with the amount data required. One of such
instances can be that the information has no distinguishing data or is totally without relevant data
or is properly coded to avoid any unauthorized access to it. Such circumstances do not require a
full audit by the ethical board, but rather a mere confirmation that the data is actually unknown.
However, if the data contains any variable helping to identify the participants, this will indeed
require a full review by the board. The researcher will then need to clarify for why such
strategies could not be avoided. In the event that the above said concerns are convincingly
addressed, the researcher would then be able to ask for a waiver of consent.
In the event that the data is accessible for free on the Internet, other public forum or
books, an authorization for further utilization of the resources is implied. However, an
acknowledgment to the ownership of the original data will be required.
The data thus obtained should be in adequate amount and relevant as well. This should
not exceed as the analysis could then become a complex task.
To avoid an unwanted loss happening to the data, it needs to be kept safe inside locked
cabinets in the form of hardcopies whereas softcopies of the same as encrypted files in
computers.

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Chapter Four: Data Analysis
4.0 Introduction
The chapter covers an analysis of secondary data to understand the implication of a food-
truck startup. In addition, analysis will be conducted with the help of both qualitative and
quantitative data.
4.1 Case Findings Analysis
4.1.1 Qualitative Analysis
“According to Navickas,Baskutis and Gruzauskas (2015), flow of cargo significantly impacts the
transportation cost especially in small markets.”
The above quoted line clearly says that the number of the flow of cargo can impact on the
transportation cost and consequently on financial and operations cost. The number of cargo can
be reduced by combining orders and grouping more than one companies based on variables as
suited to the business. It is preferred to select a group of companies and their place of business,
and operate the food-truck in the selected place. This strategy will help to attract more
customers. However, the sustenance of the food-truck business in that particular area would
depend on its ability to offer quality foods at competitive prices. In addition, variety of foods will
also be a key factor.
“As opined by Mercier et al.(2017), the food industry analysis shows that the supply chain
management faces two huge challenges in the form of time and temperature ideal to keep
products fresh.”
The quoted fact indicates that temperature is one of the keys to an effective supply chain
management. Sufficient temperature is required to keep food fresh such as ice creams,
prepackaged foods, and regional fast-foods. There are certain temperatures that are being
identified as safe to each category of foods. For a food-truck, it is important that it takes a note of
this fact to be able to offer foods of highest quality in respect to both taste and freshness. Taste
and freshness both depends on the quality of raw materials. The quality of raw materials, on the
other hand, could be affected from insufficient temperature. Foods of different qualities require
distinguished range of temperatures. It is due to such complexity the concept of “Cold Chain”

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did originate. In a cold-chain, refrigeration steps in succession form are applied to keep foods at
desirable temperatures. Temperature limits might vary from developing countries to the
developed. Cold chain is still inadequately developed in emerging countries. It is due to the lack
of power supply. Regions that are warmer create more trouble for an effective management of
cold chain. On the other hand, some places in developing countries do not enjoy a healthy
spending as compared to other industries. It is due to all these facts cold chain management in
such regions becomes challenging. “Yoon and Chung (2018) opine that hygienic and
environmental risks of a food-truck business negatively impact on consumers’ visit intentions to
such shops.”
The quoted line indicates that consumers’ attitude influence their visit intentions to a
food-truck. They are found as being concerned with environmental and hygienic effects of a
food-truck. Moreover, their attitude has a direct impact on their visitation to food-trucks. Such
attitudes create both challenges and opportunities to a food-truck business. Such attitudes can
seriously affect the daily sales. On the other hand, these facts can be utilised as opportunities for
marketing communication. Despite using several social media sites and the other ways of
communication, food-truck has not been very convincing with marketing as compared to
restaurants and other formats of food centres. More specifically, a food-truck entrepreneur can
come up with a more established food management and marketing communication strategies as
compared to those that exist to leverage the opportunity.
“According to Mokhtaret al. (2017), food truck that has now become popular in Malaysia
especially in Klang Valley does not just require to offer the mobile features but also doing a
creative branding of their trucks.”
The article suggests that creative branding is an essential element of a food truck apart
from its mobility features. It means that branding can be used to influence the attitudes and
visiting intentions of customers. Apart from this the halal food industry is a rapidly growing
phenomenon across the globe; it can be used in branding the start-up of a food truck in Klang
Valley of Malaysia (Bohari, Hin and Fuad 2017). Muslims in the worldwide countries are
concerned with whatever they purchase, consume, and use. They want all these to be the
“Syariah”compliant. The halal industry also contributes to the national economic growth, and
societal development. These all mean that effective branding of a start-up is essential to create

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reasons for customers to visit. Branding will be much more effective if it incorporates promoting
the use of halal foods as Muslims are in majority in the country.
“As opined by Ismailet al.(2018), ‘halal foods’ is an essential part of food industry in Malaysia;
however, it is yet underdeveloped and needs a firm assistance of strategic operations and
technologies.”
The article also supports the fact presented by Bohari, Hin and Fuad(2017) in the above
article; however, also identifies a few weaknesses and threats of offering halal foods. Supply
inconsistencies are one of the weaknesses of halal food industry, which may affect its day-to-day
operation. Global economic crisis can also be an issue in terms of accessing to halal foods. Stiff
competition from local food-trucks is also expected. Global economic crisis and industry
competition can force to lower down selling prices. Consequently, maintaining a healthy profit
margin will be difficult for a start-up food truck business.
“Bryła (2016) opines that the use of organic food by food retailers and consumption by
consumes is trending.”
The article highlights the growing popularity of organic foods. High quality and
healthiness was identified as two prime reasons for a growing worldwide consumption of organic
food. Organic food is increasingly becoming a symbol of authenticity for its quality, and natural
taste. The authenticity is further defined by labelling especially from having a European quality
sign. The authenticity and uniqueness further depends on the types of retailers and the exposition
patterns of merchandisers. Organic food market faces a several barriers such as the high price,
scarce availability of organic products, insufficient consumer awareness, low-visibility in the
store, and short expiry dates. Materials used to prepare organic food are costlier than
conventional foods. This may not be financially feasible for a start-up. In addition, low
availability of organic materials can affect the daily operation. Consumers are also not very
much aware of organic food. Hence, financial and marketing feasibilities are two constraints for
organic food and so for a food truck business. On contrary to this, it is important for a start-up
food truck to be focused on halal and organic foods to be able to leverage the growing
opportunities in the industry. Nonetheless, a start-up business will be able to attract a mass
customer only if it is able to fulfil the motives of selecting the organic food. Those motives are

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healthiness, superior taste, quality assurance, products’ ecological character, and food safety
considerations.
“According to Oroian et al.(2017), the consumption of organic food has increased in recent time
due to its evident impact on consumer health, social convenience, and life style.”
Consumers nowadays have access to a variety of media platforms where they can search,
read, and understand their choice of information. This information can be in the form of news,
website articles, blogs, newsletters, magazines, online newspapers, and many others. These
pieces of information can be accessed from paper media, electronic media, and online media
resources. It all means that access to desire and other forms of information have become faster
these days. It is due to this the number of consumers who are constantly being explored to a
variety of food related articles is increasing. So, their knowledge base is also expanding enabling
them to be conclusive about varieties of foods, which they have access to (Oroian et al.2017).
Consumers specifically those who are health-conscious think and research significantly about
foods that they consume. It is, therefore, important for food retailers of any format to come up
with innovative ideas to attract new consumers and retain their customers. Meeting the trending
demands for healthy foods is now a necessity that requires innovation from food retailers. These
circumstances could be full of opportunities for a start-up food truck business provided that it is
able to understand the market, and use relevant operations, financial and marketing strategies.
For example, a start-up business should appraise the sale of organic rather than tasty foods.
Since, the chosen start-up business for this research is intended to operate in Klang Valley in
Malaysia; it should also do their branding as the food truck offering organic and halal foods.
4.1.2 Quantitative Analysis
“Dai Pai Dongs or licensed street food stalls had continued to grow ever since 1945 (Noor et al.
2018).”
The article indicates a historical change in the fooding culture of Hong Kong. Actually, in
between1945 to 1950, the population of Hong Kong grew from 600,000 to 2.2 million. The
population growth could be largely credited to an influx of immigrants. With the growth in
population, the need for public housing also grew. However, the city government failed to meet
the demands and ended up providing housing units that were had no kitchens. The scenario thus

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created forced people to depend on street foods. Due to cramped living areas they also had no
significant opportunities for social gatherings. Hence, Dai Pai Dongs emerged as favorite
destination for having foods and social gatherings.
4.2 Business Implications
The implication will be checked in respect to its feasibility with various operational
domains such as the follows:
Market feasibility
The market feasibility study generally shows the way things will work in favor of the
business or they will not be fruitful for the business organization. The study contains risks and
different types of potential problems and is mostly created for the different ideas, processes and
the businesses. The feasibility study of the Malaysian food industry will thus involve a number
of different considerations. Especially in a country like Malaysia, the study has to be extensive in
nature to predict the exact condition of the market and give necessary recommendations. The
market feasibility study of the food industry especially the Malaysian street food or food truck
industry has looked at the viability of the ideas with an emphasis on identifying the potential
problems of looking at how the things will work for the food truck business or they will face
hurdles in the business.
According to the study of (Noor et al. 2018) the country has currently around 3500 different
food companies with a total output of around $9billion profit. The country is quite well
positioned to play a leading role in the global Halal market. The Food Truck development of the
country started in the year 2008 during the global economic downturn. Before that particular
time there were hardly any food trucks in Malaysia. The loss of the restaurant business during
the recession period led to the rise of the Food Truck business. This particular time experienced a
sudden shift in the culture as many of the professional chefs moved out of the restaurants and
started their own business in new food trucks.
According to, Shahwahid Bakar and Eksan (2018) there are a number of other considerations
for the new business which will include the likes of Halal compliance. As mentioned in the
qualitative part of the data analysis, Halal Compliance is one of the most important
considerations for the Malaysian food industry. The organization has to follow the rules of the
Malaysia Halal certification Manual (3rd amendment 2014). Another main consideration of the

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new business organization will be the support of the Government Agency. The Klang valley has
more than 100 licensed food truck operators and thus the company needs to clear all the
necessary documentation and checking to receive the Government grant. The annual budget has
been fixed at RM140 million for microcredit organizations. Each of the organizations has been
estimated to be provided with around RM3000 to RM50, 000 for establishing business.
The study of, Esparza Walker and Rossman (2014) considered the packing costs for foods in
the food trucks. The results have shown that in order to estimate the current effective local
demand for different packing materials for the food trucks are as follows;
1. Plastic packets- 200 packets per week
2. Can lids-100 packets per week
3. Aluminium foils- 100 packs of foil for 2 months
Therefore the quantitative market feasibility helps the entrepreneur to get the correct idea of
the figures in the business and the way the business would be conducted to ensure sustainability
in the highly competitive market.
Marketing feasibility
Though it sounds similar, yet market feasibility and marketing feasibility are completely
different from each other. Market feasibility has provided the facts on whether or not the
business can establish itself and sustain in the long run, but on the other hand, marketing
feasibility refers to whether or not the management of the organization can market the business
along with its products and services to the targeted customers. One of the most important
platforms for marketing has been the use of social media by the management of the business
organizations. According to, Bryła (2016) the restaurants and especially the food trucks
described in this research can extensively use social media as the best means of making their
customers aware about their presence in the Malaysian market.
According to Ainin et al. (2015) one of the best social media platforms that has surpassed all
the other platforms to advertise has been Facebook. According to the data collected by the
authors in their study around 13,589,520 active Facebook users in Malaysia, it is the best way to
promote the business online and reach the idea about the business organization, its products and
the extensive services offered by them in a proper and effective manner. The study by the

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Internet World Statistics has supported the results and has claimed that social media exclusively
the extensive use of Facebook by a large percentage of population in Malaysia has attracted the
attention of the local as well as international food companies, restaurants and food SME’s.
Such kind of attraction has given birth to the rising trends of the business to promote them
and their products through Facebook. According to, Ishak et al. (2018), the simplicity of the
social media application as a modern tool for communication technology has enabled the food
truck industry for rapidly growing in the country. A number of random surveys conducted by the
researchers showed that there were just 3 food trucks in and around Klang valley of Malaysia.
However, the growth of the industry led to the opening of around 70 such similar stores in the
last few years. Therefore the data clearly predicts the existence of a tough competition for the
new business. The survey also showed that around 60% of the consumers preferred to have
their meals from the food trucks. Therefore it is important for the new organization to have a
proper presence in the social media in order to make a heed in the food truck business.
Returning to the study of Ainin et al. (2015), it combines all the three elements and thus
tends to investigate the factors that have a direct influence on the use of Facebook by the new
food truck management. It will also investigate the different factors that have an influence on
financial and the non financial performance of the SME’s in Malaysia (Oroian et al.2017). The
study has derived that in Malaysia SME”s is identified by verifying the percentage of some of
the economical elements. This includes 32% Gross Domestic products, 59% employment and
19% of different exports performed by the organization.

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Financial feasibility
Table No 1: Sample Table showing Start up Expenses for a Mobile Restaurant
Source: (Zavyalova 2017)
A predicted estimate has been provided in the above figure where the financial estimates
have been clearly depicted. The table has been collected from the study of Zavyalova (2017)

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where the financial aspects of the possible business of food truck have been estimated. The table
given above begins with the assets required for the business and their individual value. the sum
of the assets that are required to start the business have been estimated at around $24,567
whereas the expenses which includes the likes of taxes, halal compliance checking, marketing
and promotion have been further added to round up the sum of the investment. The sum of the
investment for the new business thus stood at around $29,748. Lastly the assets in hand and the
cash at dispersal were calculated. This included the amount of investment that could be done by
the organization to start the new business. As seen in the study of Oroian et al.(2017) the own
investment amount stood at around $4032, the investment from personal; sources stood at around
$19,355 whereas the loan from banks and other financial institutions stood at around $6452. The
total funding of the company is thus estimated to be around $29,839. The estimates can be used
by the Malaysian enterprise to get a transparent idea on how to establish the business
accordingly.
According to the author of the paper, Startup companies must base their forecasts on less-
verified information that includes the likes of market research as well as the likes of the
competitive intelligence to forecast the future business. The research has predicted that a food
truck is capable of selling around 60 to 120 different food units each single day. Thus an
average of at least 100 units can be predicted for the business unit in Malaysia. Another main
importance of the following research is the prediction of the projected sales that will surely help
the Malaysian entrepreneur to effectively start its business.

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Table No 2: Sample Table showing Monthly Projected Sales for a Mobile Restaurant
Source: (Zavyalova 2017)
The above table depicts that the projected sales in the months of August, September and
October along with that of April, May and June are the highest as because most of the foods and
beverages are sold at this particular time and the organization has the highest revenue from sales.
In the month of August and September, the company is projected to target the highest revenue.
Therefore comparing the following case with that of Malaysia it can be estimated that the
company will also have a peak season during some months of the year (Zavyalova 2017).
However, the management must ensure to increase the sales in a gradual but organized step.
Another table showing the projected sales of the company is also important as it predicts the
growth of the company clearly. It is seen that the total sales of the company will be around
70,000 pounds in 2017 which will stand at close to 80,000 pounds in the next year and again
rise to close to 88,000 pounds in the following year. Therefore there will be a gradual yet
effective rise of the sales figures which estimates that following the right financial strategy will
be helpful for the new food truck to be established in Klang Valley of Malaysia.

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DISSERTATION
Table No 3: Sample Table showing yearly projected sales for a Mobile Restaurant
Source: (Zavyalova 2017)
Operational feasibility
Operational Feasibility of a business organization is generally measured to remove the
different problems that the business might face and to study whether the business is operationally
compatible enough to sustain itself in the new market. Before the discussion of the operational
feasibility of the Food Truck business in Klang valley of Malaysia, it will be wise to discuss in
detail about food heritage and in specific the food heritage of Malaysia and Klang valley. Food
Heritage can be defined as a set of material and immaterial elements of different kinds of food
cultures that is generally considered to be a shared legacy or a particular common good. The
food heritage of a particular place has a great role in the operational feasibility of a food outlet. A
rich food heritage can be beneficial for the company to operate the business (Oroian et al.2017).
On the other hand presence of a not so famous food heritage does not support the sustainability
of the organizations that deal in the business of food. The study conducted by Ramli et al. (2016)
has selected a number of food lovers from Klang Valley in Malaysia and conducted a primary
analysis to find out results of food culture in the valley. The following study on the other hand
has been taken as an example in the following research to gain an idea on whether the business
of the food truck in Klang Valley will produce fruitful results or not. Both the male as well as the
female respondents residing in Klang valley were selected for the research. 250 males as well as
250 different females formed the core of the research. They were defined according to different

40
DISSERTATION
age groups as well as different ethnicity, profession as well as education. The following division
helped to make the analysis much more accurate and scientific.
Table No 4: Demographic Background of the respondents
Source: (Ramli et al. 2016)

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DISSERTATION
Table No 5: Choice for food of the respondents
Source: (Ramli et al. 2016)
The above table has showed the choice of food of the respondents. The variables
include traditional foods, common food, cultural foods and some other foods. The
segmentation was completed by dividing the males and females in a proper manner (Ramli
et al. 2016). Most of the respondents have a high choice for traditional foods which shows a
percentage of 20.6. Therefore it is prudent for the new food truck to start its business by
concentrating on the cooking of traditional Malaysian foods with strict halal compliance.
Cooking the traditional Malaysian foods like Banana Leaf Rice, Nasi Dagang, Nasi Kandar,
Sang Har Mee can be highly profitable for the business. The presence of just a limited few
food trucks providing traditional Malaysian foods can work as a great benefit for the new
business (Zavyalova 2017).

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DISSERTATION

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DISSERTATION
Table No 6: Most Frequent Mention Traditional foods and drinks
Source: (Ramli et al. 2016)
The above table clearly represents the taste of the traditional foods is equally present
among both the females and the males. The preservation of real traditional food showed no
significant p=0.079(p>0.05) between the genders. Therefore it can be said from the results that
the presence of a proper food culture in Klang Valley of Malaysia is a blessing for the food stalls
and will also support other new food trucks that may be opened in the future. The presence of the
food truck is thus quite sustainable and operationally feasible.
Chapter 5:
5.0 Conclusion and Recommendation
5.1 Conclusion
The main idea beyond the formation of the particular research was to investigate and
define on how to create a proper business plan for a startup company involving Food Truck in
the Klang valley of Malaysia. The following thesis also had the idea to implement the obtained
knowledge about the food industry of Malaysia and apply them in a scientific manner. The aims
of the project that has been defined at the beginning of the project have been properly met. A

44
DISSERTATION
business plan like the one prepared in the following context must be written in a proper way and
a challenge should be taken to meet the necessary requirements in order to complete the research
in the most appropriate manner.
The implementation of the business idea is dependent on the proper writing of the
business plan. The seriousness of the approach, collecting genuine information, providence of
correct references and ensuring the top quality for the business research must be given highest
priority in the research. Ensuring all the above mentioned points helps in the success of the
research thesis. The following research has been created to help study on how a new food truck
business can be established in the Klang valley of Malaysia. The following research was capable
of revealing about the main difficulties that lay with the implementation of the project and what
can be the actual strengths and the weaknesses of the company to open the business in Malaysia.
It has also provided a clear and transparent description of the food industry of Malaysia
and the current trends that are being followed in the industry. The research has highlighted the
growth of the food truck business in the last few years in Malaysia and its popularity among the
masses. The author of the research considers the business development proposal to be an
effective tool before starting the commercial operations of the organization as because it
provides a detailed structure of the different kind of actions that must be taken during the
implementation process. The main idea of choosing the particular topic lay with the fact about
the intention of the Author to become a successful entrepreneur.
The recommended business plan for the new organization is as follows;
Name of the Company
The company can be named “Klang Valley Delights” in accordance with the local area
and also to make the targeted customers feel more homely. The fact that the truck will offer all
the different Malaysian delights will also justify the name of the company. The name of the
company is crucial to the success of the organization as because a proper name attracts more
people to the business.
Mission of the Company

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The mission of the company will be to provide the targeted customers especially the
students and the young people visiting the store to serve the highest quality of local Malaysian
food. Apart from this the food truck to be established in the following region will also ensure that
the food is prepared in a clean and healthy environment and serve them in the most humble and
warm manner. Apart from this, the management of the food truck must ensure that they maintain
a good reputation for fresh, made to order foods that are prepared and served by the friendly and
well trained business associates of the organization. To succeed in the business it is important for
the business organization to;
a. Create a unique, innovative, entertaining and most importantly delicious menu that will
be different from the other food trucks operating in Klang valley of Malaysia
b. Selecting the most appropriate location like in front of a mall. The places of interest and
tourist places can also be an option. In the following case the organization has decided to
put up the business in Selangor
c. Encourage both the brand as well as the image of the food truck as both of these when
mixed together provides the best recipe for success in the food business industry
d. Promotion of good value of the culture of the company and the business philosophy of
the company
e. Controlling the cots and implementation of a conservative approach towards the growth
policy of the business
f. Cooking and selling the most highest quality products by the organization
Vision of the Company
The vision of the company is to make use of most of the market and produce high quality
Malaysian delights. Such a vision will help the food truck to achieve a unique competitive
advantage in the market.
Objectives of the Company
The objectives of the organization will be directly linked to the vision and mission of the
business organization. It is important for the management of the organization to formulate a new
business policy with new set of objectives. Some of the main recommended objectives of the
business organization are as follows;

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DISSERTATION
 To establish a presence as a successful local food truck operator
 To gain a healthy market share in the food truck industry of Kiang Valley, Malaysia
 To concentrate on providing high quality local Malaysian dishes along with other western
and Asian dishes
 To not only limit itself to niche marketing but also make the necessary arrangements to
expand into more food truck outlets within a few years from the start of the commercial
operations of the business enterprise
Marketing Plan
Segmentation, Targeting and Planning
The primary target of the Food Truck are the young Malaysians especially the students
and the college goers who have a special liking for quality food from different food trucks
especially during the weekends and some other holidays. The strategic location of the food truck
in Malaysia will be anywhere in Petaling Jaya. The heavy amount of extra circular activities
among the Malaysian people is a major reason for the youths of Malaysia to have lunch or dinner
from outside their houses. This is a golden opportunity for the food truck business to target a
large number of consumers to their outlet.
The secondary market segment of the business will be the working Malaysians residing
in Klang Valley of Malaysia. The presence of a large number of shopping malls along with
different types of shopping centers can act as the major source of income for the organization.
Apart from this the whole of Selangor is one of the major tourist attractions of Malaysia and thus
the food truck can offer local delicacies to the tourists which can be a major source of business to
the organization. Tourists will stroll Selangor and will be hunting for the latest trend in fashion
and have no time to stop for a full meal during shopping. Therefore Fries and other food that
require less time for preparation are the alternatives for a quick bite while shopping in Klang
Valley of Malaysia..
Targeting is another major strategy that must be employed by the management of the
food truck in order to target the niche people of the market segment and cater to their needs. The
main target of the organization is to provide the people with the best cuisines of Malaysia. It is
important for the management to take-up brand building efforts in order to ensure the success of

47
DISSERTATION
the organization in the market. The primary target market of the food truck can be the young age
group between 15 to 21 years and 22 to 28 years. The secondary target group of the food truck
will be the people between the age group of 29 to 35 years and 36 to 45 years. Petaling Jaya is
one of the most happening places in Malaysia. The selection of the place to launch the food court
is thus one of the best strategies of the organization as because launching the mobile restaurant in
Petaling Jaya can attract a large number of customers both in the daytime as well as during the
evenings and late nights. The food truck can target late night customers easily because of the
presence of a large number of night clubs in the particular area of Klang Valley, Malaysia.
Marketing Mix
The Marketing Mix of the company will be based on the 4P’s of Marketing. This
includes;
1. Product- The products served by the food truck will be the food that will be cooked and
served by the food truck to the customers of the business. The development of the
product must consider the quality, design, features, packaging as well as customer
service. The quality along with the quantity of the product is one of the most important
factors as because it helps the organization to gain reputation in the market.
2. Place- Petaling Jaya can be the most appropriate location for the new business as because
the place meets all the different specifications in regards to distribution, location and
methods of getting the food truck products available to the customers of the business
easily. It also helps the organization to sell the products directly to the customers of the
organization.
3. Price- The price will be fair and under control as because the target of the food truck
must be to make itself familiar with the targeted lot in the market.
4. Promotion-promotion refers to the act of communicating the different benefits along with
the value of the product to the customers. The best promotional activity in this case will
be to provide leaflets, arranging discounts on special days, announcing blockbuster deals
and advertising the food truck through social media channels like Facebook or Twitter.
The application of the marketing mix in the proper manner can be a boost to the sales process
of the organization.

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DISSERTATION
Strategic Growth
The first strategy of the organization will be to study the market in a detailed manner. For
this very reason the organizational head has to carry out a small market survey where the
different features like the competitors of the business, prices of the foods, choice of the
customers, places of highest footfall can be determined easily. After the analysis of the results
the food truck will be opened in Petaling Jaya of Klang Valley, Malaysia. The main aim of the
food truck will be to supply local Malaysian food to the organization as the people of Malaysia
has a great liking for traditional Malaysian foods.
The open kitchen of the food truck will also let the aroma of the cooked foods spread into
the surrounding areas. This will surely lure some customers to the stall in order to try out the
food.
The food truck will have to face quality opposition from the likes of other famous food
trucks of Klang Valley like La Famiglia, Little Fat Duck, The Laughing Monkey and many more
similar food trucks.
The strategy of the company will be totally based on serving the markets as well. The
first food truck can be tested as a Market Tester and going by the popularity of the new food stall
in the Klang Valley of Malaysia. The store can use the combination of social media along with
the local store marketing programs at e4ach of the different locations in the future. However at
the beginning, the management will mostly concentrate in the Petaling Jaya store and expansion
and growth plans will be totally dependent on the success of the new business. Providing a fun
and energetic environment with unbeatable quality at the most acceptable price and in a clean
and hygienic environment can separate the rest from the new business and will thus attract more
and more customers in the business.
Organizational or Operational Plan
Human Capital Plan
The Human Capital Plan is one of the most important tool that the organizations use to
drive focused actions that can ensure goal achievement and business success. The food truck can

49
DISSERTATION
apply a number of strategies to be profitable and attract more and more customers. This can be as
follows;
a. Creating a Solid, Memorable Concept- The most important concept of making money
and profit as a food truck is to establish a concept that is quite memorable. “Klang Valley
Delights” can create designs and special concepts to ensure huge turnover. A strong,
concept encourage news coverage will further boost the sales as such kind of
customization has a great impact on the organization. Establishment of the store in
Petaling Jaya can be nailed by the concept of choosing memorable and attractive names
for the food that are being offered to the customers.
b. Offering something unique- The choice of the food truck to provide different kinds of
local Malaysian foods is one of the best options to be unique from the other stores of the
organizations. The following strategy will help the organization to make more money and
attract more and more customers to the organization. To make more money as a food
truck the organization will need to find a specific niche food market that no other cart is
occupying.
c. Online and Mobile ordering-The new trend followed by most of the food trucks is the
use of online food ordering. The online food truck must make sure to take orders from the
customers as because going mobile with the food truck will help the organization to reach
to a larger base of modern customers.
d. Seasonal Change to the menu- A seasonal change to the menu offered by the
organization will be a welcome offering for the customers. It helps to bring in more
customers and make more money. There are many similar food trucks that change its
menu seasonally to stay competitive in the market.
e. Catering business- The catering business can be another option for the organization to
make more profit. The food truck can use the weddings, parties as well as other parties
and events to ensure a side business and guarantee more profit for the organization.
Business Process/Value Chain Analysis
1. The firm infrastructure- The financial implication of the food truck that will be
established in Klang valley of Malaysia will provide them with great value for success. It
will also help to enlarge the fleet of the new business much faster in nature.

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DISSERTATION
2. The human Resource- The chefs of the food truck will be selected through a close
observation and scientific study. The earlier records of the chefs must be verified
thoroughly before providing the employment to the chefs.
3. The inbound logistics-This is probably the number competitive advantage from “Klang
Valley Delights” supplies and will be benefiting the significant economies of scale
compared to all the privately held food trucks; therefore, allowing “Klang Valley
Delights” to reach a higher margin (or lower pricing) level through a significant
reduction in the cost of the items.
4. The management of operations and outbound logistics- Operations Management
must be managed in accordance to the lean start up approaches and each and every of the
projects must be developed carefully using the building up of the lean management
process. This will help the new business to be an expert in the following field.
5. The marketing and sales- The marketing and sales will be a time consuming affair for
the owner of “Klang Valley Delights”. However, both the marketing and sales proves to
be a vital element to the success of the business and many of the owners overlook them
due to their busy schedule. However the new business must give both these elements
proper attention to survive in the competitive world.
Financial Planning
Financial Statements/Budget
Particulars Amount Residual Value
Non-Current Assets:
Trademark 50000 0
Patent 20000 0
Property & Equipment 150000 45000
Furniture & Fittings 100000 15000
Truck Cost 1000000 400000
Equipment 40000 0
Preliminary Expenses:
Business Registration 10000
License Fees 15000
Deposit for Electricity 10000 10000
Deposit for Telephone & 4000 4000

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DISSERTATION
Internet
Recruitment Cost 2000
Other Miscellaneous Expenses 15000
Working Capital:
Purchase of Raw Material 0
Wages & Salaries 0
Manufacturing Overhead 0
Selling & Marketing Expenses 0
General Administrative
Expenses
0 0
TOTAL START UP COST 1416000
Capital Funding:
Equity Capital 849600
5 yrs. Bond
Loan From Bank 566400
TOTAL CAPITAL EMPLOYED 1416000
Table No 7-Start up Cost of the Food Truck
Source: (As created by the Author)
Particulars Opening
Balance
Salvage
Value
Estimated
Life
Depreciation
Rate
Depreciation
Amount
Closing
Balance
Property & Equipment:
Year 1 150000 45000 5 21000 129000
Year 2 129000 45000 4 21000 108000
Year 3 108000 45000 3 21000 87000
Furniture & Fittings:
Year 1 100000 15000 5 10% 10000 90000
Year 2 90000 15000 4 10% 9000 81000
Year 3 81000 15000 3 10% 8100 72900
Truck:
Year 1 1000000 300000 5 12% 120000 880000

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DISSERTATION
Year 2 880000 300000 4 12% 105600 774400
Year 3 774400 300000 3 12% 92928 681472
Kitchen Equipment:
Year 1 40000 0 5 20% 8000 32000
Year 2 32000 0 4 20% 6400 25600
Year 3 25600 0 3 20% 5120 20480
Trademark:
Year 1 50000 0 5 10000 40000
Year 2 40000 0 4 10000 30000
Year 3 30000 0 3 10000 20000
Patent:
Year 1 20000 0 5 4000 16000
Year 2 16000 0 4 4000 12000
Year 3 12000 0 3 4000 8000
WACC:-
Particulars Amount Weightage Return
Rate
Tax Return WACC
Equity 0 100% 12.50% 12.500%
Total Equity 0 #REF! #REF!
Loan From Bank #REF! 100% 9.50% 9.500%
Total Debt #REF! #REF! 30% #REF!
Total Capital #REF! #REF! #REF!
Table No 8-Depriciation and Amortization Schedule
Source: (As created by the Author)
Particulars Year 1 Year 2 Year 3
Inflation Rate 2.50% 2.50%
Sales Growth Rate 7% 7%

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DISSERTATION
Sales Volume 18720 20030.4 21432.528
Average Selling Price per unit $25 $28 $30
Total Sales Revenue $468,000 $560,851 $642,976
Cost of Good Sold per unit:
Raw Material Consumed $2 $2 $2
Direct Labor Cost $3 $3 $3
Total Cost of Goods Sold p.u. $5 $5 $5
Total Cost of Goods Sold ($93,600) ($102,656) ($112,588)
GROSS PROFIT $374,400 $458,195 $530,388
Variable Manufacturing Overhead p.u $5 $5 $5
Total Variable Manufacturing Overhead ($93,600) ($102,656) ($112,588)
Depreciation on Truck, Kitchen utensils &
Equipment
($21,000) ($21,000) ($21,000)
Total Manufacturing Overhead ($114,600) ($123,656) ($133,588)
General Administrative Expenses:
Depreciation on Furniture & Fixtures ($10,000) ($9,000) ($8,100)
Depreciation on Computer Equipment ($8,000) ($8,000) ($8,000)
Amortization of Patent ($10,000) ($10,000) ($10,000)
Amortization of Trademark ($4,000) ($4,000) ($4,000)
Insurance ($5,000) ($5,125) ($5,253)
Rates & Taxes ($5,500) ($5,638) ($5,778)
Electricity for the store ($8,250) ($8,456) ($8,668)
Telephone & Internet ($4,000) ($4,100) ($4,203)
Total General Administrative Expenses ($54,750) ($54,319) ($54,002)
Selling & Marketing Expenses:
Depreciation on Motor Vehicle ($120,000) ($105,600) ($92,928)
Sales Commissions @0.5% on Sales ($2,340) ($2,804) ($3,215)
Travelling charges @0.25% on Sales ($1,170) ($1,402) ($1,607)

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DISSERTATION
Total Selling & Marketing Expenses ($123,510) ($109,806) ($97,750)
Net Operating Profit/(Loss) $81,540 $170,414 $245,048
Interest Expenses:
Interest on Loan From Bank ($53,808) ($53,808) ($53,808)
Total Interest Expenses ($53,808) ($53,808) ($53,808)
Net Profit before Tax $27,732 $116,606 $191,240
Income Tax Expenses ($6,933) ($29,152) ($47,810)
Net Profit after Tax $20,799 $87,455 $143,430
Gross Profit Margin 80.00% 81.70% 82.49%
Net Profit Margin 4.44% 15.59% 22.31%
Return on Equity 2.45% 10.29% 16.88%
Table No 9-Income Statement the Food Truck
Source: (As created by the Author)
CASH FLOW STATEMENT:
Particulars Year 1 Year 2 Year 3
Cash Flow from Operating Activities:
Cash Sales $468,000 $560,851 $642,976
Cash Purchase ($37,440) ($41,062) ($45,035)
Payment to Suppliers ($62,400) ($80,917) ($88,746)
Direct Labor Cost ($51,480) ($61,141) ($67,056)
Manufacturing Expenses ($93,600) ($102,656) ($112,588)
Insurance ($5,000) ($5,125) ($5,253)
Rates & Taxes ($5,500) ($5,638) ($5,778)
Electricity for store ($7,563) ($8,439) ($8,650)
Telephone & Internet ($3,667) ($4,092) ($4,194)

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DISSERTATION
Travelling charges @2% on Sales ($1,170) ($1,402) ($1,607)
Income Tax Expenses ($6,933) ($29,152) ($47,810)
Cash Inflow/(Outflow) from Operating
Activities
$193,248 $221,228 $256,258
Cash Flow from Investing Activities:
Purchase of Non-Current Assets ($1,360,000)
Preliminary Expenses ($43,000)
Sale of Assets
Return on Deposits
Cash Inflow/(Outflow) from Investing
Activities
($1,403,000) $0 $0
Cash Flow from Financing Activities:
Loan From Bank $566,400
Interest Payment ($53,808) ($53,808) ($53,808)
Dividend Payment ($7,280) ($30,609) ($50,201)
Owners Contribution $849,600
Repayment of Loan from Bank
Cash Inflow/(Outflow) from Financing
Activities
$1,354,912 ($84,417) ($104,009)
Net Cash Increase/(Decrease) for the period $145,160 $136,811 $152,249
Add: Opening Cash Balance $0 $145,160 $281,971
Closing Cash Balance $145,160 $281,971 $434,221
Table No 10-Cash Flow Statement the Food Truck
Source: (As created by the Author)
Key Result Areas and Key Performance Indicators

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DISSERTATION
Key Performance Indicators can be referred to as the quantifiable measurements
reflecting the factors that were deemed to be critical to the success of the food truck business. In
the case of “Klang Valley Delights” there are similar such performance indicators.
a. Food Cost percentage- The food cost must be calculated as the total expenses in the
business. Comparison of the sales figures and the cost of food will be a must for the
management of “Klang Valley Delights”.
b. Sales Per head- The per head sales will be one of the key performance indicators in the
business. It will be calculated by dividing the total sales by the number of customers
served by the business. Another unique step can be taken by the business which will be
to introduce the “Point of Sales System” to keep a record of the people the business is
serving daily or weekly.
c. Best and worst selling items- A note of the best and worst selling items must be recorded
as because it is important to identify about the particular menu that is garnering profit and
the one that is garnering a loss.
d. Total labor Cost- Total labor cost is one of the largest expenses the business has to incur
while launching the business of a food truck. This is the main reason one must
consistently keep track of it. The labor cost should range from 25 to 35 percent of your
total expenses.
Assumptions, Explanations and Justification
The provided budget and the KPI of the intended business clearly highlight a stable and
sound strategic policy that will be adapted by the stakeholders of the business. The
implementation of all these strategies and the budget in a proper and efficient manner can
ensure success to the business.

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Implementation Schedule
Time Schedule
Task Name Duration Start Finish
Project Food truck 60 days Fri
12/7/18
Thu
2/28/19
Meeting with the
stakeholders to open
the food truck
business
4 days Fri
12/7/18
Wed
12/12/18
Final Decision to
open the food truck
business
1 day Thu
12/13/18
Thu
12/13/18
Market survey 15 days Fri
12/14/18
Thu
1/3/19
Analyzing the
results of the survey
10 days Fri 1/4/19 Thu
1/17/19
Competitor
Analysis
5 days Fri
1/18/19
Thu
1/24/19
Selecting the
location for the
launch of the food
truck
2 days Fri
1/25/19
Mon
1/28/19
Selection of the
budget
2 days Tue
1/29/19
Wed
1/30/19
Meeting with
Stakeholders
4 days Thu
1/31/19
Tue 2/5/19
Finalizing the
budget and Menu
1 day Wed
2/6/19
Wed
2/6/19

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Pre-Promotional
measures
15 days Thu
2/7/19
Wed
2/27/19
Launch of the Food
truck
1 day Thu
2/28/19
Thu
2/28/19
Table No 8–Time Schedule
Source: (As created by the Author)
Gantt chart
Figure no 1– Gantt chart
Source: (As created by the Author)
Critical Success Factors
The “Kalnh valley Delights” Food truck must carry out a number of tasks to ensure
success of the business. This includes;

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DISSERTATION
a. Proper treatment of the employees and the customers
b. Satisfying the new and changing demands of the customers
c. Keeping trust on the employees
d. Choosing the most profitable menu
e. Providing fresh food
f. Maintaining Hygiene
g. Staying Financially healthy
Risk Mitigation
Almost
Impossible
(1)
Unlikely
(2)
Small Risk
(3)
Likely
(4)
Certain
(5)
Severity
1 2 3 4 5 Little
Damage (1)
2 4 6 8 10 Damage (2)
3 6 9 12 15 Serious
Damage (3)
4 8 12 16 20 Very Serious
Damage (4)
5 10 15 20 25 Disaster (5)
6 12 18 24 30 Catastrophic
(6)
Table No 9–Food Truck Risk Assessment
Source: (As created by the Author)
Risks can be controlled by;
1. Proper Financial back up- A proper financial backing must be present in case of crisis.
2. Insurance- A car insurance along with business insurance is one of the must needs for
the food truck business.

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3. Food Safety- Proper Hygiene must be maintained and foods must be preserved in a
proper manner to avoid it from being stale.
4. Fire fighting Measures- The fire fighting equipments must be kept and maintained to
mitigate the chances of fire. Apart from this quick response from the team is needed in
case of fire. The chefs must also be careful while cooking in the small place to avoid fire
breakout.

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DISSERTATION
References
Adams, P., Prakobtham, S., Limpattaracharoen, C., Suebtrakul, S., Vutikes, P., Khusmith, S.,
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malaria research proposals submitted to a research ethics committee in Thailand: a retrospective
document review. BMC medical ethics, 18(1), p.50.
Ainin, S., Parveen, F., Moghavvemi, S., Jaafar, N.I. and MohdShuib, N.L., 2015. Factors
influencing the use of social media by SMEs and its performance outcomes. Industrial
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