Entrepreneurship Project: Food Truck Business Model

Desklib provides past papers and solved assignments for students. This document details a food truck business plan.

LSBM002
1

Table of Contents
Task 1...............................................................................................................................................3
Task 2...............................................................................................................................................6
Task 3...............................................................................................................................................8
Equality means providing opportunities to everyone and discriminating anyone regarding their
cast, colour, religion, sex, nationality, age, disability, etc...............................................................8
Placing a positive value by taking to account the differences between people and groups of
people is diversity. Diversity provides the company to select the best individual for the company
by looking at merit and allows the company not to take biased decisions regarding age, sex,
gender, or other factors which is irrelevant to the requirement of the job post...............................8
Task 4...............................................................................................................................................9
Task 5.............................................................................................................................................10
1:................................................................................................................................................10
References......................................................................................................................................13
2

Task 1
As the gowning passion for cooking in the youths, starting a food business is the best way of
converting passion or hobby into a career. One of the trending food businesses is a Street food or
Food truck business. Food truck business mainly provides fast foods to people with good taste.
The level of the catering market in street markets is on a hike because the mobile food truck
businesses are making a great impact on urban food festivals, private events and also in street
markets. A mobile food truck business has brought the enthusiastic audience or classic standards
a cosmopolitan and exotic eats with a modern twist.
The area with less competition is to be searched before starting the business. Location is a huge
factor for the growth of any business and in this food truck business; the spot must be like where
customers can find them with predictability and regularity. As the foodie culture in the UK is
rising; it is a great opportunity to open the Food truck business in the UK, especially in London
and Brighton (Williams, 2012.). The foodie culture is growing in youths with a willingness to
taste different cuisines. So the targeted audience of the food truck business should be the students
of the college, schools, coaching, etc.
Business model
Key partners  Suppliers of raw materials
 Food truck manufacturers
Key activities  Orders from the bulk party
 Marketing
 Counter services and home deliveries
Key resources  Chefs
 Service staff
 Cleaners
Values  Good taste
3

 Affordable prices
 Quality check
 Consistency
Customer relationship  Good customer services
 Training session for staff for effective
communication.
Customers type  People who like delivery of food at
home
 College fests or event
 Students who look for quick food
Budget  £ 20,000
Name of the food truck business
“Bite of Love”
Visual identity
A good branded truck can attract customers’ attention to the business everyday and everywhere it
goes. So it is very important to have a creative and effective visual identity of the business. The
visual identity of the "Bite of Love" is designed in the following way:
The logo which will be painted in the truck's both sides is designed in an attractive manner. The
base of the logo will contain a heart shape inside which different types of foods are drawn like a
burger, hotdog, etc. and also the picture of a child taking the bite of the burger and holding a
bowl of soup in the other hand will be pasted (Simões and Mason, 2012).
Values
Social:
4

The food which will be sold to the customers will be of best quality and at an affordable price so
that every customer can have the best experience and the relationship with them becomes
stronger. Building a good relationship with the customers is very important for any business’
growth.
Environmental:
Many of the industry of mobile food truck business use inorganic vegetables while making the
dishes which may harm the customers. Growing inorganic vegetables also harms the
environment in different ways. So the “Bite of Love” has decided to provide to use as much as
organic vegetables or any other organic materials as they can.
5

Task 2
Marketing research is the gathering of information about the need and preferences of the
customers through activities or events. There are mainly two types of marketing research,
primary research, and secondary research.
Primary research
It is the information which is first-handed and the company gathers on its own. The type of
primary research the “Bite of Love” is doing is surveys. A survey consists of a question’s list that
is to be shared with the customers to answer; questions may be like rate our service out of ten
can be asked (Leuschner, et. al., 2012).
Surveys are important to have a better understanding of the customers view about the company’s
product.
Secondary research
Secondary research is gathering of information from pre-existing information like information
shared in newspaper, magazines, industry reports or government reports. The type of secondary
research the “Bite of Love” is conducting is collecting data from competitors’ materials. Some
competitors share their useful reports or statistics openly for attracting the customers to buy from
them. This information can be gathered and used for the company’s growth.
It is helpful in understanding the market trends and competition for the company.
Quantitative research
Data which are found in numerical which are analyzed by the statistical and mathematical
methods are included in quantitative research. The type of quantitative research the “Bite of
Love” is using is observation. Observation may involve counting a particular phenomenon’s
occurrence like how many a customer has used a particular word (Lockwood, et. al., 2012).
6

This is helpful in gathering the information about the product the company is serving to the
customers.
Qualitative research
Researches which involves languages or words and pictures may also be used is qualitative
research. Qualitative researches include data which is not numerical data. The type of qualitative
research the "Bite of Love" is conducting is focus groups. Focus group is used to collect data
from the limited number of respondents like six have responded out 10 within the targeted
market.
This method is very useful while market research for the new product or new concept.
7

Task 3
Equality:
The staff members of the "Bite of Love" will be both male and female in the same numbers as if
the number of male staff is two then the number of female staff will also be two.
Diversity:
The “Bite of Love” will accept the employees from any background if he/she has the talent to
serve good to the Company.
Equality means providing opportunities to everyone and discriminating anyone regarding their
cast, colour, religion, sex, nationality, age, disability, etc.
Placing a positive value by taking to account the differences between people and groups of
people is diversity. Diversity provides the company to select the best individual for the company
by looking at merit and allows the company not to take biased decisions regarding age, sex,
gender, or other factors which is irrelevant to the requirement of the job post.
The Equality Act
People are protected from discrimination on the grounds of gender (including transgender),
belief and religion, age, ethnicity, disability and sexual orientation under the Equality Act which
was established in 2010. This act legally protects people in the workplace and society in a wider
range from discrimination (Graham, et. al., 2015).
8

Task 4
Since the “Bite of Love” is doing very good in its field of business, so the company is in need of
promoting the business by the popular website. Through some information, it has been found that
the popular website which is offering the company for the promotion has been accused of
behaving and treating its staff badly. Many harassments, bullying, etc have been reported by the
management departments. Though it is a great opportunity for the growth of the company,
growing by harming the company's staff in any way is not good for the company's reputation and
also the members of the company. So the manager of the “Bite of Love” has decided that it is
alright to grow slow but not harm the staff in any way. Linking with this website may decrease
morale and can also decrease the motivation among the staffs.
Below are some consequences of promoting a company in unethical ways:
 A decrease in the productivity level: to maintain a strong presence in the competitive
world through sales from the customers is the main goal of any company. When the level
of unethical behaviour increases inside a business causes the productivity level to
decrease which then stops the company's growth (Hershfield, et. al., 2012).
 Loss of respect: bosses of the company starts to lose the respect they had gain among the
employees when they start to take unethical decisions. It is very difficult to gain that
respect and trust which they had before for the leaders of the company and it becomes
causes problems for the leaders to run the business successfully.
 Public credibility loss: when unethical behaviours start to grow in an organization or a
company, there is a very high chance of it to be publicized. This can cause the company
to lose its public credibility, which may result in abandoning sales from the customers.
People may start to lose respect for the company.
 Legal issues: loss of time, penalties and large fines are the problems that can be faced by
the company under legal issues in the cases of severe unethical misconducts.
9

Task 5
1:
Assets:
Fixed Assets Description
Food Truck It’s the main premise in which the operations
will be carried on.
Kitchen Appliances and Utensils These appliances are required to prepare food
items.
Spares These are kept as spares in a situation where
some repairing work is required on food truck
or when some kitchen appliance is needed to
be replaced.
Current Assets
Inventories These consist of raw materials used in food
preparation, serving equipment also the
finished food items to be served later.
Cash and Cash Equivalents Cash balance is maintained and accounted for
on daily basis and deposited into the bank at
the end of the day.
10

Liabilities:
Long term Liabilities Term loan (secured or unsecured) taken from
an NBFC or commercial bank for funding the
start up.
Current Liabilities They are basically the suppliers of raw
materials purchased in bulk used in preparation
of food.
Expenses:
Advertisement Expenses These are marketing costs incurred to advertise
the business through newspapers, pamphlets or
digital media.
Salaries and Wages It includes salaries paid to the chef and helpers
(service staff and cleaners) involved.
Other Expenses This includes:
 ordering cost
 finance cost (on loan taken for funding)
 Fuel costs incurred on truck and home
deliveries.
11

Income: This is basically main revenue earned from
food services provided to customers.
2: Company has started at its business with a budget of £20,000. If proper planning is not done
beforehand, startup might face cash problems in the future. Followings steps are needed to be
taken to ensure efficient cash utilization:
1. Maintain a cash register on a daily basis and account for every expense and reconcile the
same with the cash balance at the end of the day. Major portion of the cash should be
deposited in the bank and only the required balance should be kept in hand.
2. Adopt an efficient ordering policy involving an optimum ordering cycle such that raw
materials are not kept lying unused for a long and the same time shortages don’t take
place at critical times. Vendors must be chosen carefully such that reasonable purchasing
costs are incurred.
3. Operational Efficiency is must where processes are conducted with minimum wastage of
resources. Also, performance of the staff should be kept in check and in alignment with
their salaries.
4. Pricing policy must be prudently adopted such that losses aren’t incurred and at the same
time business doesn’t lose out on customers.
12