LSC UoS BA Business: Entrepreneurship Vegan Food Truck Business Plan

This project presents a detailed business plan for a vegan food truck, named "Meals on Wheels," targeting the niche market of the vegan food industry. The plan includes an executive summary, business details, location analysis, and a thorough market and industry analysis, using PESTLE and Porter's Five Forces frameworks to assess the competitive landscape. The project describes the proposed product and service offerings, identifies the unique selling proposition (USP), and analyzes competitors. It outlines the operational plan, including organization structure, quality control, and supply chain management. Furthermore, the project addresses potential risks and develops contingency plans, alongside a sales and marketing strategy, finance and funding plans, and details of the management team. The plan aims to capitalize on the growing demand for vegan food, particularly post-pandemic, and target a middle-class demographic in the UK. The project considers various challenges like economic factors, competition and technical risks and proposes solutions to ensure business success.

Entrepreneurship

EXECUTIVE SUMMARY
The current project is associated with creating a business plan to target the niche market
of vegan food industry. It shall be disclosing a detailed blueprint in respect of the future business
ventures that are to be undertaken highlighting the business details of the “Meals on Wheels, the
location that is highly populated, the vegan food industry analysis and analysing the competitors
already existing in the market. Through the industry analysis, it has been analysed that company
will easily enter with new start-up that assist to attract the customer and improve the business
performance. Further, there are different competitors within London, UK and to increase the
competition, company must sell products at affordable rates. However, the target market of the
company will be 18 to 55 middle class people who can easily afford the vegan products. In
addition to this, there are different risk associated with the new business plan like technical risk,
cost, time etc that need to be improved through contingency plan. Further, with the help of
management team, company is able to handle the risk and able to meet the defined aim

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................2
Business Details......................................................................................................................1
Location..................................................................................................................................1
Market/Industry analysis........................................................................................................1
Product/ service description...................................................................................................5
USP and Competitor analysis.................................................................................................5
Operations plan.......................................................................................................................6
Risk and Contingency plans...................................................................................................7
Sales and marketing strategy..................................................................................................9
Finance and funding plans....................................................................................................11
Management team................................................................................................................13
REFERENCES..............................................................................................................................15

Business Details
The proposed business plan for targeting the niche market in the location is through
opening a Vegan Food truck which is named “Meals on Wheels”. Post the outbreak of the
corona pandemic it can be realized that this is one of the successful ventures and also highly in
demand these days in UK. Instead of opening the brick and mortar shops, the entrepreneurs are
preferring to shift towards such mobile vehicles which are cool and attractive for the targeted lot
of the customers (Stubić, 2017). Since nowadays the society is highly inclined towards the
health and hygiene related concerns so the newly entering entrepreneurs must capitalize on the
available opportunities pertaining to the preference towards the vegan foods.
The various meals are offered which do not involve the any essence of the animals and
which are diet conscious in nature. The optimized company website is developed that shall be
providing the options of placing the online orders but the delivery shall not be available. In the
vehicle itself the whole kitchen shall be established, the cash counter and the packing area and
arrangement of the disposals. The business shall be serving the local customers of UK in the
various cities where the demand of the vegan foods is comparatively higher.
Location
The suitable location for the establishment of the “Meals on Wheels” shall be in the
cities of UK where the demand for the vegan foods are high and also on the streets which are
highly populated like besides the malls, gaming zones, parks, beaches where people often visit
for the relaxation purposes (McKenzie, 2017). The highest orders for vegan orders are placed in
Brighton, Bristol, London, Manchester and Edinburgh. The fun and entertainment areas are best
for the opening of the mobile food business so that the larger number of the customers can be
targeted by the company.
Market/Industry analysis
It has been clear that pandemic affect the entire business in negative manner and as a
result, companies fire the employees. That is why, individuals are searching for an employment
and start their new business. Similarly, to minimize the challenge Meals on Wheels will be open
by offering vegan food products within a food truck that helps to attract the customer during
Covid-19. As per the market analysis, it has been determined that the consumption of vegan
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products increases and that is why, setting up business in this field will be more beneficial. For
an industry analysis, two frameworks will be used that helps to examine the overall market:
Pestle analysis
Particulars Description
Political factor Brexit and Covid-19 affected the entire political situation of the country
and that is why, it becomes very difficult for the companies to
successfully operating within such situation. That is why, Meals on
Wheels will offer the products as per the need of customers in order to
successfully implement the business (Pestle analysis of UK, 2020).
Economic factor The GDP of the country is continuously decreases till pandemic and that
is why, customer did not spend the amount on unnecessary items.
Therefore, focusing upon vegan food products will be beneficial to
improve the unemployment rate. Also, due to inflation, the products will
be sold at higher rate and that is why, Meals on Wheels offer products at
reasonable rates.
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Social factor The preferences of people continuously changes and that is why, offering
products as per the need of customer will help business to grow. Covid
change the consumption of people and that is why, 7.2 million British
adults currently follow the meat free diet (eganism Statistics 2021 – How
Many Vegans Are There In The UK? 2021).
Technological factor UK has a world's leading research and development institutes and that is
why, it creates opportunity for entrepreneurs to invest in new start-up that
helps to meet the defined aim. Similarly, business start offering products
online and this in turn also cause positive impact upon the business
performance.
Legal factor Companies operating within UK must complied with Employment Act,
Equality Act that protect the employees from being discriminated.
Moreover, different leaves and other essential benefits are also offered to
employees that helps to improve the brand image.
Environmental
factor
Company have to complied with sustainability act and also make
initiatives that assists to improve the overall performance of a company.
Further, the new business should also ensure that company uses Eco-
friendly products that helps to improve the overall performance.
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Porter five force model
The framework is used for industry analysis and also examine the industry's weakness as
well as strength by using some key elements. Like,
Competition among the competitors (high): It has been analyzed that there is a strong
competition in food industry within UK. In order to gain the competitive edge, business uses
innovative ways that helps to attract the customers. Also, a point of differentiation also assists to
increase the competition and attract customers (Kei-Chou, 2020). Due to pandemic, most of the
restaurants are also focused upon the healthy food because the customer change their preference.
Bargaining power of buyers (high): The customers are more powerful in this industry
and their tendency of bargaining increases that decrease the price of products. Customer also
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changing their preference and this in turn create pressure to enhance the innovative skills. Also,
they demand for high quality along with reasonable rate in order to increase the customer base.
Bargaining power of suppliers (low): There is low bargaining power of suppliers
because hotels and restaurants get the food from the external sources, and they also choose
suppliers as per the price of the products offered by the firm. For example, offering organic
products will increase the supplier rate and that is why, business also take charge to customer by
adding supplier price.
Threat of substitute (high): There are lots of products available in the market that
increases the price of the products and also increase the competition. There are many
alternatives available within a market that helps to attract the customers like, street food, packed
food etc. This in turn decrease the financial performance of a company in negative manner
(Ferdinand and Tresyanto, 2020).
Threat of new entrant (high): Entry within food industry is low because there are few
barriers that affect the business performance and along with this, it is also cheaper to invest in
such kind of a business that helps to attract the customers.
Product/ service description
Meals on Wheels offer products made up from vegan either in packed form and fresh
served. Due to pandemic, majority of the people start eating healthy food products that helps to
improve the overall health. That is why, opening new food truck where all healthy food products
will be offered is more feasible. Hence, the quoted business will offer product in all over London
and even on call, the company offered the service. The products include veggie burritos, veggie
tacos, beans and rice, chips with salsa and guacamole without cheese etc.
USP and Competitor analysis
With the help of competitor analysis, Meals on Wheels will easily enhance the brand
image of the company. There are different competitors within UK who already started the same
concept in order to increase the business performance.
Particulars Meals on Wheels OIE Thai Truck Chut the Cheese Up
Products It offered only vegan food
products like Veggie
burger, egg substitute mix,
veggie burritos etc.
It offers traditional
Thai Cuisine made with
only Oie. Also, provide
salad, homemade soups
Offer products inspired
by Halloumi in which
wraps, salads, soups and
fries offered to the
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and Thai fragrant soup. customers.
Price It uses penetration pricing
style.
Offer products by using
competitive pricing
style (Choi and et.al.,
2020).
Skimming pricing style.
Promotion The food truck will uses
only online marketing
products as a promotional
tools in which Facebook
and Instagram as a social
media platform used.
Uses both traditional
and modern form of
marketing style. Like,
billboards, pamphlet
and social media
marketing tools.
Uses only modern form
of marketing like digital
marketing (SEO and Pay
per click), social media
marketing tools.
USP The USP of the company
is the quality of its
products with pricing
style.
The marketing style
and variety of food
product is considered
as a USP.
Product's quality and
range of variety is
recognized as a USP
(Wilson, 2020).
Operations plan
Particulars Description
Organization structure As the business shall be undertaken at the very small level
so the organization structure shall be maintained
horizontally where the multiple departments are functioning
parallelly. The skilled employees shall be hired in which
three chefs who have acquired the qualifications in culinary
arts, further a cashier having good knowledge of finance, IT
personnel for the management of the online website and the
food packaging assistants. These all shall be working
simultaneously in the food truck.
Quality control The quality assurance and control is very necessary in the
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business of the vegan foods (Ibidunni, Peter and Ogbari,
2017). The proper maintenance of the quality checks,
auditing assurance and the verified license to carry out the
operations. Apart from that the packaged foods must be
having the ISI mark and also all the expiry validations must
be assured.
Supply chain management The smooth and efficient supply chain and logistics must be
maintained by the company so that timely and efficient
delivery is ensured to manage the demands in the market.
The raw material are purchased from the wholesalers
directly and not intermediaries are involved to limit the
costs.
Communication The communication must be strong internally among the
various departments so that the operations can be carried out
smoothly. Since the organization structure is efficiently
developed the activities must be coordinated by allotting
specific codes to the customer order.
Risk and Contingency plans
It is not possible to run a business without facing any risk and that is why, business
owner should develop an effective contingency plan that helps to avoid the risk or manage the
same by using an effective style. In the context of Meals on Wheels, it also faces numerous risk
that might affect the performance of a company in opposite manner (Lütke and Lemon, 2021).
The risk includes time, cost, resources, environmental and technical that creates adverse impact
upon the business performance. For that effective contingency plan must be executed which
reflect the impact as well as measures to improve the same.
Type of risk Reason Likelihood Impact Preparation Response (action)
Not met
with the set
deadline
Due to
schedule
overrun and
High High To minimize the
risk, company
must take a
Hire new project team to
meet the set task within
a defined deadline. Also,
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changes in
the
deadline by
owner side
follow-up of
each activity that
helps to
minimize the
impact of such
risk.
set a benchmark that
helps to monitor the
actual performance of a
company.
Company
met the
objectives
with over-
budget
Cost
increases
due to
unexpected
expenditure
and not
proper
monitoring
High High Conduct a
meeting after
completion of
each task that
helps to examine
the overall
performance
through budget
While completing each
task, manager should
monitor the set budget is
used. Regular meetings
should be performed that
helps to check the work
is in defined direction.
Most of the
employees
fall sick
Natural
cause
High High Collect
employee
telephone
numbers to call
as well as ask to
come in for an
unscheduled
shift in order to
analyze the
situation
minutely
(Samson, 2020).
Immediately call the
employees and also
requesting them to
complete the task in
unscheduled shift. Also,
arrange some alternative
immediately that helps
to complete the task so
that project will not
delay.
Fluctuation
within
environment
Lockdown
of a
country and
weather
Low High Forecasting
should be
performed that
helps to
To minimize the same,
proper advance
techniques should be
used that examine the
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delays determine the
fluctuation
within external
environment
weather. Further,
alternative strategy
could be developed that
improve the situation
from lockdown.
Technical
risk
This
occurred
when the
system
crash or
virus in the
software
that lead
towards
technical
risk
Medium High Protection of
important data
must be ensured
that helps to
minimize the
chances of
occurrence of a
plan.
Hire an expert that solve
such situation and also
protect the entire data
within another system
that helps to loss any
sensitive information
(Lang, 2020). Moreover,
also run cybersecurity
that helps to protect the
internet connected
system.
Sales and marketing strategy
This helps Meals on Wheels to generate the profit and also create exposure to best sell
out product in market. In this, Marketing mix is used that helps to know the business and its
competition along with numerous strategy that helps to maximize sales. This is as mentioned
below:
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