Healthy Food Trucks: Idea Generation and Business Model Development

Running head: HEALTHY FOOD TRUCKS
Assessment 2: Idea Generation and Business Model Development
[Healthy Food Trucks]
Name of the student:
Name of the university:
Author note:

HEALTHY FOOD TRUCKS1
Executive summary
Launching an innovative idea requires a thorough analysis of the industry and its related contents
or else the idea may not live longer. This study also describes and identifies the suitability of a
chosen business idea from different perspectives. The perspectives in the concerns are the
Business Model Canvas by (Osterwalder & Pigneur) and the Feasibility Analysis of the idea. The
chosen idea in this study is about offering healthy foods to customers on mobile trucks. The idea
is a response to the fact that the consumption of fast foods is increasing globally.

HEALTHY FOOD TRUCKS2
Table of Contents
1. Customer problem that needs a solution......................................................................................3
2. Persuasive argument of the customer benefits to be generated...................................................4
3. The proposed business model......................................................................................................5
4. Key elements in the business model............................................................................................5
5. Critical success factors to be managed during the execution of idea..........................................8
6. Identification of critical risks and assumptions...........................................................................8
7. Evaluating the feasibility of the idea...........................................................................................9
References......................................................................................................................................10
Appendices....................................................................................................................................13
Appendix 1: Feasibility Analysis of Idea..................................................................................13
Appendix 2: Business Model Canvas........................................................................................19

HEALTHY FOOD TRUCKS3
1. Customer problem that needs a solution
This study is aimed at addressing a problem that is increasingly growing with passing
times and causing various adverse health impacts to happen on a human body. The problem to be
discussed is a common people habit to eat fast-foods whenever they are at offices, schools and
universities, homes and are on an outing. The problem is getting bigger with times. The rate of
fast-food consumption may vary for developing and developed nations; however, both are at risk
of developing critical health issues (An, 2016). This is problematic not just for a person who
consumes the fast-food but for their country as well. The growing cases of health issues due to
increasing consumption of fast-foods have forced the national governments in the world, and
public and private bodies to invest hugely in improving the infrastructure for health care services
(An, 2016). The developed nations, in particular, are at higher risk as compared to developing
nations. For example, an average American family used to invest approximately 38% of their
budgets on restaurant food (Oexle et al., 2015). The percentage of restaurant food has
dramatically increased over the years. Now, the average American family spends more than 50%
of their budget on restaurant food (Oexle et al., 2015). These figures clearly show the growing
dependency of people on restaurant food. Indeed, this is very difficult, close to impossible and is
very expensive also to spread awareness in people about the adverse impacts of restaurant food
and to encourage them to avoid it. On the contrary, this is comparatively more feasible to attract
people towards healthy alternatives than stopping them from consuming the fast-foods (Burgoine
et al., 2016). Hence, the idea stuck into the mind to offer people living in Melbourne the healthy
foods on trucks. Notably, Melbourne is amongst the most affected city in Australia from fast-
food consumption (Adelaidenow.com.au, 2019).

HEALTHY FOOD TRUCKS4
2. Persuasive argument of the customer benefits to be generated
There are adequate pieces of evidence on the fact that Australians need to switch to
healthy foods. The global research company “Euromonitor” and the Australian Bureau of
Statistics (ABS) have more or less similar reports on the growing obese cases in Australia from
consuming the fast-foods. According to these reports, each one of the four Australians aged over
18 was found suffering from obesity in 2007/2008 (Adelaidenow.com.au, 2019). The World
Health Organisation (WHO) has also published more or less similar figure. According to the
WHO, Australia is the 39th fastest nation on the earth to switch to fast-foods
(Adelaidenow.com.au, 2019). The fact came as no surprise to Jane Martin who is a senior policy
advertiser in the Obesity Policy Coalition (Adelaidenow.com.au, 2019).
There are more pieces of evidence on increasing adversity from fast-foods. Studies
suggest that fast-food is a response rather a cause. For instance, McDonald’s won’t mind selling
the soft drinks as long as they make profits. They probably won’t even care whether the soft
drink is harmful. Australians normally work for long hours. This is according to Thomas et al.,
(2017) one of the habits due to which they are often stressed and deprived of adequate sleeping.
As a result, there is an approximately 25% drop in the metabolic rates. This means instead of
using 1000 calories to get energized again people could only gain 750 calories (Czeisler, 2015).
The busy work schedules in offices and reduced sleeping both result in increased stress. As
observed by Jensen et al., (2015), stress increases hunger because the hormone produced during
when a person is stressed is cortisol, which makes people hungry. There is no better option than
the fast-foods, which can quickly fulfill the purpose of a hunger person. Hence, the numbers for
such people having increased dependency on fast foods are increasing. There are more chances
of an obese person influencing its foetus as well. As studied by Marchi et al., (2015), due to

HEALTHY FOOD TRUCKS5
intergenerational obesity an obese person will also train its foetus to become an overweight
child.
The arguments presented as above give sufficient reasons to think of the alternatives of
the fast-foods. Hence, the idea to offer healthy foods on moveable trucks should indeed be a
good business idea.
3. The proposed business model
The proposed business model will address the problem being faced by mass people in
Melbourne from consuming the fast-foods. The business model will not be as complex as a
model for a fast-food restaurant. However, this will still involve the key elements of a business.
These are Key Partners, Key Activities, Value Propositions, Customer Relationships, Customer
Segments, Key Resources, Channels, Cost Structure and Revenue Streams. The concept of the
key elements is being adopted by the Business Model Canvas (Osterwalder & Pigneur, 2010).
The Sample Breakfast and Meals-to-Go foods will be sold on the proposed mobile food trucks.
4. Key elements in the business model
As stated above there are 9 different elements in the proposed business model. These are
as listed below (Osterwalder & Pigneur, 2010):
 Key Partners
The new idea will require suppliers for food ingredients and trucks. The business at its early and
the later stage also cannot afford to have less strategic suppliers. The business will require