Food Truck Business Plan: The Buddy Wheel – A Feasibility Study

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Business Plan
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Table of contents
Introduction.................................................................................................................................................3
Task 1..........................................................................................................................................................4
Task 2..........................................................................................................................................................7
Task 3..........................................................................................................................................................9
Task 4........................................................................................................................................................10
Task 5........................................................................................................................................................12
Conclusion.................................................................................................................................................16
References:................................................................................................................................................17
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Introduction
In this assignment, by taking an imaginary scenario to start up a business, we have considered
the food truck business in research to analyze its dimension, operation and cost structure in the
market.
A food truck business is a business concept where a large wheel vehicle is equipped with a small
kitchen to cook and to serve the food. The startup cost to set up a food truck begins with
£20,000. However, a successful food truck business can bring inward of £300,000 per year.
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Task 1
Name of the business
As we this assignment is based on imaginary concept, let’s suppose the name of our food truck
as ‘The buddy wheel’.
Mission:
The buddy wheel aims to offer high quality of food, coffee, sandwiches and much more varieties
at a very competitive price so that it can meet the demand of middle income residents and
tourists.
Key to success
The key to success of buddy wheel will include:
 Competitive pricings
 Providing customer satisfaction by meeting their preference in taste and choice.
 Providing high quality food by maintaining its hygiene.
The start-up operation of the business:
Step 1: Choosing a location
Locations holds a primary importance as to set up a business where there is much potential to
gather customers is always a benefit. When it comes to setting up a food truck choosing a
location where there is much hype of customers will be a good start to set in.
Step 2: Getting a car or truck
A food truck is defiantly a best place to start off in food industry. A used, simple yet elegant cart
cost for around less than £2000, which is much more affordable than buying a brand new one
which can be worth of £50,000.
Step 3: Research your target market (Competition in industry)
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Before setting up a food truck learning your target audience, their preferences, their taste and
their choice really matters to upscale your business in sales and profits. To analyze the audience,
a quick copy from your competitions would really help to know the locality you are going to set
your business on.
Discovering the aspects of your target audience and competitions it may takes some time and
before you starting turning your business on the market, going out with a marketing strategy is
really important too.
Creating a visual identity of food truck
Starting a food truck in low investment of £20,000 is a great way to start up a small business.
The food truck has a pretty small investment, if compared with opening a new restaurant which
offers plenty of overhead bills and a very small payroll.
When it comes to setting a food truck cart, giving it a good concept and a visual identity that
your customer may refer to while seeing it or by advertising it through other people will create a
bench mark. Many food trucks take advantage of free marketing and advertising by creating an
attractive visual identity like logos or designs in their cart (Yu, 2018).
Also, by choosing one niche on food also helps to enhance your brand and your identity by
specializing in one food technique. As, concepts are increasing popularity in today’s market and
many people tends to go places that have a unique concept then other food trucks.
Ethnic Fusion concept for The Buddy Wheel:
The ethnic concept is increasing popularly day by day. The concept aims to combine many
ethnic cuisines into one dish that is appealing a great audience. As, we have taken an imaginary
scenario of a food truck named, The buddy wheel, The concept of taking ethnic fusion is proceed
to start up the business into the market.
Environmental Values to be promoted with food truck business
The Buddy wheel initiative will promote to create a healthier environment with healthier and
hygienic meals for the customers. The mission is to transform the working area of street food
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trucks where the healths of the customers are taken care of. The vision is to create an
environment that supports healthy habits in customers. By using a business friendly, community
engaged and research based approach to create the change in food industry.
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Task 2
The market analyze section for food truck business
The market analysis section of a food truck business helps to illustrate the knowledge of the food
industry. The section includes the following research:
Primary Research:
Ideally, a business enters into a research part of their business to understand their potential
customers, such as to know what they want and what they prefer. To go on a road of success one
must decide the area and the audience they would like to take their survey’s on (Ferreras-Garcia,
2019). Though, a food truck can try research and analyzing on by:
Asking customers to walk away from their food truck to tell what sort of food they would like to
have.
 Counting the number of customers in a day
 Surveying local business and companies
 Researching on competitors and their concept of business
Secondary Research:
Apart from the primary research, one can go for secondary research too in order to help a food
business get succeed. It can be begun by research and analyzing on:
 Census data of the market
 Going through the local business data
 Demographic conditions of your area
 Expenditures of your community
 Spending power of your community
Qualitative research:
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Qualitative research in a food industry is very crucial to have, as it’s not just about the umber, it
states the opinion and thoughts of the potential customers. Doing a qualitative research is must to
know the preferences and experiences of your customers that may give you a way to give better
output and customer satisfactory results (Abrams, 2003).
Methodologies of qualitative research:
 Face to face interviews of customers
 Group opinions of customers
 Archival research
Quantitative research
Quantitative research is all about numbers, as it involves analyzes of customer’s choices in
numerical and statistical data. In cases of large research on customer, one has to use the
quantitative research method to gather the data.
Methodologies of Quantitative research:
 Surveys
 Polls
 Experiment
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Task 3
Confronting an unethical dilemma in business
Unethical choice in a business can be quite dangerous for a food industry. Well, the danger may
come from other organizations or can also be because of the people in the organization. Well,
during the time when a popular website comes with an opportunity to promote your business.
Though, the company has been accused for treating their employees badly by bullying,
discriminating and harassing their own management (Lam, 2018).
However, the website has a large based audience which can engage the business to more than
thousand people but can eventually damage your brand and can also de-motivate the staff. Well
this unethical business dilemma can destructive and can also be one of the high point for a
business to showcase in the industry (Alen el at 2018).
According to the old age quote ‘Fighting to a best defense always turns out to be a good
defense’. According to the above report, the buddy wheel works in respect of environmental
values and by building good relationships with staff as well as with customers. However,
collaborating with a major website whose reputation itself is on stake is not going to bring any
good for the firm (Der el at, 2004). Also, the firm’s involvement will give a wrong impression in
front of customers that will be inevitable test for the business values, commitment and beliefs in
conducting their business.
In favor of creating and advertising the business, a well articulated code of ethics should be taken
in place that can be shown to the customers in which manner your services and products are
better. Equally, it’s important to keep the staff members in mind as a business collaborating with
a firm that accuses their management will give a wrong impression as well as a tremendous
impact on the behavior of the firm (Hopp el at 2018). The act will not only de-motivate the staff
but will also erode the company’s reputation and ethics of working.
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Task 4
Equality and Diversity Law while selecting candidates for job
Having an effective and skilled staff is essential for a business to get to the road of success.
Though, taking out an effective recruitment by choosing the people with right expertise, skills
and qualifications in the food market also holds a major importance (Mason and Stark, 2004).
During the recruitment process, diversity and equality should be the major aspect that must be
considered during the process (Watson, 2018). As, it will help to get the right person for job that
will help to lower the risks of:
 Disciplinary issues
 Staff turnover
 Tribunal claims
 Absenteeism
The equality act in hiring process
The equality act ensures that the applicants are treated equally in areas of:
 Disability
 Race
 Pregnancy
 Equal Pay
 Gender
 Age
 Sexual Orientation
The recruitment advertising
During the recruitment process for a food truck it is essential to have a multi cultural mix of
hiring the both sexes (Chen, el at 2005). For example, it must be discriminatory to advertise for a
job that only illustrates for men profession. Well, to contract the effect, the advertising must
depict that the job is open for both men and women.
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The selecting of a right candidate
Once the candidates are screened, shortlisted and interviewed during the recruitment process.
The firm must ensure that the candidates must meet the criteria for their firm’s working and ten
they must proceed further on:
 Grading all the candidates accordingly.
 Appointing the best person on job.
 Ensuring that all the relevant information on company’s working ethics has been
informed to the selected employee.
The rights to be given to the selected employee
 The right of training to gain knowledge of the food industry
 Right to give information on hazards that are been used in your workplace
 To not discriminate against any safety or health rights
 Ensuing to give a helpful and safe workplace environment.
It is rightly said that a business can only be successful by having an effective staff. Though,
selecting a right candidate with quality and diversity holds a major important though giving their
rights too.
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Task 5
Estimating the fixed assets, current expense and monthly expense of a food truck business
Fixed assets
Fixed assets
Estimated
Food cart £15000
Machinery Cost £4000
Equipments £1000
Total Fixed assets £20000
The calculated annual expenses
Food Truck Startup Estimated Costs
Estimated
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