BUS3ENT Entrepreneurship: Detailed Food Cart Business Plan Report

This document presents a comprehensive business plan for a food cart venture named Foodco, focusing on serving peanut butter and jelly-inspired sandwiches to La Trobe University students and locals in Melbourne, Australia. The plan outlines the business model canvas, including customer segments (primarily university students), value proposition (fast, quality food), customer relationships (online ordering), channels (delivery van), key activities (marketing, sales, efficient supply chain), key resources (employees, location), key partners (local suppliers, advisors), revenue structure, and cost structure. It further includes a feasibility analysis covering market, technical, human, and financial aspects, ensuring the business's viability and potential for success. The business aims to use locally sourced ingredients, rotate its menu seasonally, and cater to customers with gluten-free options, while adhering to food safety standards and regulations.

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FOOD CART BUSINESS
By [Name]
Course
Professor’s Name
Institution
Location of Institution
Date

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Table of Contents
Table of Contents
Table of Contents.............................................................................................................................2
Executive Summary.........................................................................................................................3
Introduction......................................................................................................................................4
Business Model Canvas...................................................................................................................5
Customer Segments..........................................................................................................................5
Value Proposition............................................................................................................................5
Customer Relationships...................................................................................................................6
Channels..........................................................................................................................................7
Key Activities...................................................................................................................................7
Key Resources..................................................................................................................................8
Key Partners....................................................................................................................................9
Revenue Structure............................................................................................................................9
Cost Structure................................................................................................................................10
Feasibility Analysis.......................................................................................................................11
Market Feasibility..........................................................................................................................11
Technical Feasibility.....................................................................................................................11
Human Feasibility.........................................................................................................................12
Financial Feasibility......................................................................................................................12
References......................................................................................................................................13

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Executive Summary
The business venture described in the case is food cart business. The business will be based in
Melbourne, Australia where it will be mainly serve Latrobe University students. The other
potential market for the business will the locals situated in the area of operation. The business
will specifically deal in sandwiches, and it will target both male and female campus students. For
the locals, the business will target both young and elderly customers who like the constant
quality of the product supplied. Customers will be served with speed and smile making sure all
of my customers are satisfied. The business will rotate its menu on a seasonal basis, and it will
encompass options for an ever-expanding number of customers who need an option that is free
of gluten and contaminant. The business will use a delivery van to supply its products to the
market. The business will be registered with Queensland Department of Health- Food Safety
Standards and Regulation where the business will attain its food safety certificate.

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Food Cart Business
Introduction
Food truck business is the type of business I prefer starting in the future. My food truck
will be operating in Melbourne serving up peanut butter, and jelly inspired sandwiches to
Latrobe university students and locals. My food truck business will be known as Foodco. The
business will make use of locally sourced ingredients to make a diverse range of enticing
sandwiches that will attract a wide customer base. Customers will be served with speed and
smile making sure all of my customers are satisfied. The business will rotate its menu on a
seasonal basis, and it will encompass options for an ever-expanding number of customers who
need an option that is free of gluten and contaminant.
The mode of delivery that the business will use will be a van. A van is chosen based on
fuel efficiency, reliability, space and residual value. A van offers some advantages. One of its
advantages is that it is cost-effective. A van will also offer fast delivery (Glicker 2014). Other
advantages include easy communicating with the driver while it is also ideal for transporting
perishable goods which would be Foodco’s main business. Foodco business will be registered
with Queensland Department of Health- Food Safety Standards and Regulation where the
business will attain its food safety certificate. The business will be managed by a classically
trained chef will relevant experience in the food cart business. University students are identified
as the main target. This is because students are renowned for their sense of taste for fast foods.
Male university students, for instance, are renowned for hating cooking. Some of them think that
the work of cooking is a waste of time and are "well suited" to ladies. They are therefore more
likely to purchase foods, especially during lunch hours.
Business Model Canvas

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Customer Segments
Customer segments entail the group of customers to whom a product is sold. This model
is very vital for any business model canvas. Customer segmentation may involve grouping
customers by their needs, behaviors, and other traits that they share (Dudin et al. 2015). A
customer segment can also be defined regarding demographics like gender, profession, ethnicity,
and age or on psychographic factors like motivations, the behavior of spending and interests.
Matching the customer segment of a business' value proposition ensures that more lucrative
business stream is achieved. It is therefore vital that different customer segments tradeoff is well
understood by businesses that target the segments.
The customer segment for the Foodco Company will be mass market as the values will be
created for both locals and university students. The most important customer for the business
will be university students. The university students will be the most important customers because
of their sense of taste for fast foods. Both male and female students will be a target. However,
the main target will be male students. This is because male university students are renowned for
hating cooking. Some of them even think that the work of cooking is a waste of time and are well
suited to ladies. They are therefore more likely to purchase foods, especially during lunch hours.
Regarding the locals of Melbourne, the main customer segments will be youngsters, families, the
elderly, and various business operating in Melbourne.
Value Proposition
Value proposition entails the collection of products that are sold by the business. It is
essential as it makes a case as to why customers should pick a particular product over the other
depending on the uniqueness of a particular product (Caetano et al. 2017, p.315). A business
model canvas value proposition offers a unique combination of products which gives value to

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customers through the provision of value that helps solve the problem experienced by customers.
One particular product may have one or many value prepositions.
Foodco business's value proposition will be fast foods that are served quickly and that
which will provide constant quality. The business will utilize locally sourced ingredients to
design a wide range of enticing sandwiches that will attract a wide customer base. Serving
customers will be with speed and smile making sure all of my customers are satisfied. The
business’s menu will be rotated on a continuous and seasonal basis, and it will encompass
options for an ever-expanding number of customers who need an option that is free of gluten and
contaminant.
Customer Relationships
Customer relationship as a block of business canvas model entails the type of relationship
that a business establishes with a particular customer segment (Lewandowski 2016). It is driven
by one or more of motivators like customer acquisition, customer retention, and increased sales.
It is vital that companies clarify on their motivations and to carry out analysis on their
performance to come up with benchmarks like the cost of customer acquisition, the average
period of customer retention and integration of motivation with overall company policy
(Antikainen and Valkokari 2016). Customer relationships fall under some categories which
include personal assistance, dedicated personal assistance, self-service, automated services,
communities, and co-creation.
The customer relation with the company will be built online. Customers will be provided
with the platform to order their products online which will then be delivered to their preferred
location. This will suit customers hosting specific events like campus holiday parties or birthday

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parties. This relationship will be less costly and time-saving as it will provide a pool of
customers to whom large proportion of the product will be sold.
Channels
The channel block of a business model canvas entails a business' way of communicating
with its customers and how the business' customer segments are reached to deliver the business'
value proposition (Joyce and Paquin 2016, 1481). Understanding the best pathway for the
business is essential to enable the company reaches the targeted customers. A business may opt
to reach its customers through its channels, partner channel or a mixture of both. Channels are
vital as it helps raise customer awareness about the products provided by the business as well as
deliver the value proposition to customers. Channels include awareness phase, evaluation phase,
purchase phase, delivery phase as well as after-sales phase.
Foodco business will distribute its products through a van and on allocations. Customers
will be reached through platforms like social media where they will be made aware of the
products the business plans to sell and the unit benefits that the business will offer to the
customers. Using a van to distribute the business product will help save on costs which would be
incurred if other means of transport are used. A van is chosen based on fuel efficiency,
reliability, space and residual value. A van provides several advantages. Among the advantages
is that it is cost-effective. A van will also offer fast delivery. It also offers other advantages like
easy communicating with the driver while it is also ideal for transporting perishable goods which
would be Foodco’s main business.
Key Activities
A key activities block of a business model canvas entails vital tasks a business is required
to perform to be able to fulfill its purpose (Muhtaroglu et al. 2013, p.32). These actions are

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primarily stated by the business model and are pivotal in ensuring that an organization fulfills its
value proposition. Key activities establish a bridge between the customer segment needs and the
value prepositions. Common key activities to businesses include research and development,
production, and marketing, sales and customer services. Basis categories of key activities entail
production, problem-solving and platform r network.
The key activities that the Foodco business will engage in will be marketing and sell food
that includes a diverse range of sandwiches. The business will also come up with an efficient
supply chain that will help drive down cost. The activities that will be most important in the
distribution channels, customer relations, and distribution streams will be marketing sandwiches.
Key Resources
Key resources entail the main input used by the company to create its value proposition,
service to customer segments and deliver product to customers (Dudin et al., 2015). Key
resources are the most important things a business requires for its model to function. A business
model is usually based on some tangible and intangible resources. Key resources are the
business' main assets needed to make the end product, and they usually difference to the key
resources used by the competitors.
Foodco business’ key resources will be its employees and location of operation. The most
important resources in the distribution channel will be the area of operation and the mode of
delivery which will be the business van. A key resource in customer relationships will be an
online platform where the business with relating with its customer regarding the product it offers
and what is needed to improve the quality of products offered to the customer. Regarding
revenue stream, the key resources that will be important to the business will be the product
quality and the customer segment dependent.

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Key Partners
The key partnership entails a network of suppliers and partners that make the business
model work. Partnerships are forged by businesses to ensure that their business models are
optimized, risk reduced, and resources are acquired (Dudin et al. 2015). The partnership is
grouped into four categories which include strategic alliances between non-competitors,
competitions which entails strategic partnerships between competitors, joint ventures through
which businesses can be developed and buyer-supplier relationships for assuring reliable buyers.
Three motivations apply to key partners, and they include optimization and economy of scale,
reduction of risk and uncertainty, and acquisition of particular resources and activities.
Foodco business’s key partners will be local suppliers of fast foods, Expert Board of
Advisors, University Research and Health Nutritionists. Other key partners will be warehouse
and couriers for goods that will be sold online. Our biggest partners will be local food suppliers
as we would be looking for the best food suppliers for the business needs so that the business
could maintain a particular quality for the food it deals in alongside the business desired margins.
Other partners like truck and equipment suppliers will also be essential as the business would
need to get the right suppliers to get my startup equipment and a van. I plan to do business with
three similar entities that I shall find fair in my initial interactions.
Revenue Structure
The revenue structure block of a business model entails a conceptual structure stating and
explaining the revenue earning strategy of the business (Vargas et al. 2015). It entails the cash
generated by the company from every customer segment. The revenues, in this case, are what
keeps the business running. Various mechanisms of pricing may be involved in re revenue
stream, and they include fixed list prices, market dependent, and bargaining, and auctioning or

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yield management. Revenues that results from one-time customer payments are distinguished by
a business model from recurring revenues in which ongoing payments deliver value after-sales
service of the value proposition to customers. The various ways in which revenue streams can be
generated include asset sale, usage fee, subscription fees, lending, licensing, broker's fee, and
advertising, pricing mechanisms.
Foodco business' main revenue stream will be generated from the sale of sandwiches
delivered to students and online sales. Customers will be willing to pay relatively low prices that
will be charged by our supplier as compared to low-quality sandwiches that are charged high
prices by the local vendors. Payment will mainly be through cash while other forms of payment
will be considered depending on the ease of money withdrawal. The other suitable form of
payment will be via PayPal. The revenue stream from the sale of sandwiches delivered to
students will constitute 80 percent of the total revenue stream while 20 percent will comprise of
the revenue stream that will be generated from online deliveries.
Cost Structure
The cost structure entails all the costs that are incurred for a business model to work. The
costs can easily be calculated one key resource, key activities and key partnerships are defined.
Cost is a major concern for businesses, and the goal of many businesses is usually to minimize as
much cost as possible. Business models fall into two different categories, and they include cost
driven and value driven business modes (Caetano et al. 2017, p.315). While the former
minimizes costs in whichever way possible mostly via low price value prepositions, maximum
automation, and extensive outsourcing, value-driven business model focus on premium value
prepositions mostly with a high degree of personalized service. Among the characteristics of cost
structure include fixed costs, variable costs, economies of scale and economies of value.

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Foodco business’s cost structure will comprise of salaries paid to employees, costs of
constructing the business facility, the cost of procuring raw material as well as the marketing
costs. The key resources that will be most expensive will be the employees and equipment like a
business van.
Feasibility Analysis
Market Feasibility
Market feasibility entails the potential customer base and demand for a particular market
product as well as the level and type of competition that will be faced by a new market (Currie et
al. 2009, p.51). Market feasibility defines the depth and condition of a particular market its
ability to supplement a certain growth (Otoo et al. 2016). It defines the products ability to sustain
in a particular market whether it can generate a financial surplus for the business or not.
The demand for sandwiches is particularly high in colleges probably because sandwiches
are convenient and portable. Also, they are affordable which means that it can be purchased by
students from all class levels. Most of all, students love sandwiches because they are delicious.
The business is likely to face competition from local vendors in Latrobe who have been in the
business for quite some time and understood the market vary. My business hopes to overcome
this competition by providing constant quality sandwiches at affordable prices.
Technical Feasibility
Technical feasibility considers whether the technology and resource required are
available or not. This entails workforce as well as the technology that is used in delivery (Do et
al. 2016, p.194). The technology that will be involved in the production of sandwiches is ready
will be similar to the one used by local vendors. The only difference will be branding and
packing. Delivery of the product will be enhanced through the use of a van.

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Human Feasibility
Human feasibility entails the analysis of the business employees including suppliers
(Sillani and Nassivera 2015, p.342). Key resources for the business will be readily available as
there are a bunch of employees and suppliers who have vast experience in food cart business.
Financial Feasibility
Financial feasibility analyses the viability of the business after the total costs and possible
revenues has been taken into consideration(Sillani & Nassivera, 2015). In the Foodco business,
the revenue that will be generated will cover the cost of the business making it viable. The
business will require a small amount of start with key expense being the purchase of a delivery
van. Capital will be obtained from a bank loan. An acute increase in sales will cater for the cost
of the business as well as the borrowed loan which will be repaid within one year.