A FEASIBILITY STUDY ON A MOBILE FOOD CART BUSINESS IN PAMPANGA 1

A Feasibility Study on a Mobile Food Cart

Business in Pampanga

Galang Steph

Laquian, Nina

Morales, Allysa Marie

Patricio, Gianne Paula

Waje, Thea

St. Scholastica’s Academy

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Introduction

One of the growing trends in the Philippines is the area in food service industry in

which it has improved a lot over the past years. The continuous industrialization and

growth that Filipinos experience contribute to the many reasons why food business is

prevalent in the country. Because of the fast-paced lifestyle that most of the people are

engaged into, fast meals, and ready-to-eat meals have been in demand, and people would

usually prefer to just buy food since they are mostly preoccupied with work. It has also

been part of the Filipino culture to consider eating out at restaurants, celebrate occasions

at various food places, or just simply enjoy having those “food trips” as they call it

(“EntrePinoys,” 2015).
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Based on the article “Food Carts: The Ultimate Small Business to Start in the

Philippines” (2015), the food cart industry is described as today’s top small business to

enter in the Philippines. This is due to the reasons of the easy set-up and requirements

needed in order to start this kind of business and it’s good way for entrepreneurs who

want to test the ‘business waters’. The market trend in the country also shows that

engaging in the food cart industry is one of the top options of entrepreneurs (Gelo, 2015)

Food carts having the history of being usually in the local streets has already

evolved over time. With the stiff competition in this industry, new marketing strategies

were introduced, and one of this is incorporating mobile with food carts to allow

traveling form one place to another. According to Flores and Koski (2015), the term food

cart is used to describe mobile food trucks and stationary carts (often called trailers) that

generally remain in one location for an extended period of time and may be one of

several carts, trailers, or trucks used to form a food cart pod.

According to Malabaguio (2014), to start a mobile food cart business, one can start

on a low capital ranging from Php 30,000 to a maximum of Php 300,000. It all depends

if it is a franchise or owned, and the vehicle to use. For the past years, the low capital

outlay has attracted entrepreneurs to try this business.. Considering the aesthetic designs

it also offers, mobile food carts has also become an expression of art and unique

creativity, in which technology is also incorporated for it not to be left behind. Mobile

food carts are most commonly seen all over Metro Manila. Industry estimates that more

than Php 1 billion in sales is turned over every year from this business. This number

alone shows that Filipino people have truly cultivated a keen interest in this type of

business (Malabaguio, 2014).

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In Pampanga, being the culinary capital, food businesses are really on trend wherein

even tourists visit the province for the food. However, with the many food hubs arising

in the vicinity of the province, people would often go to interact with friends and enjoy

the aesthetics of each food hubs are often full or crowded. Convenience is known to be a

consumer preference, which explains purchase behaviors and attitudes toward food and

related services. Convenience can be defined as the food cart state of being able to

proceed with something with little effort or difficulty. Establishing a mobile food cart

business in the province can be a business on trend. The results from this Mobile Food

Cart will allow the arts for development of ideal businesses offering limited products or

services here. It can be one of those successful business ventures considering its

advantages like its affordability, considering the Kapampangan’s are usually not that big

on spending. It can also be its maneuverability, which makes it perfect for any town

center locations that it seeks to be in.

Business Description

The business that is being put up is called a mobile food cart business in which food is

offered to customers for their satisfaction. The nature of the business is similar to selling

food similar to other food businesses but with a different and unique marketing strategy

which is by a mobile food cart or food truck. The products which will be sold are foods,

specifically Mexican foods which can be prepared quickly and will require fewer

resources and equipment than those in food stalls or restaurants. These dishes can be

considered as snacks or meals that can be eaten at any time of the day. The business

offers a selection of Mexican foods which are relatively nutritious as they include a
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variety of simple ingredients such as vegetables and meat. Mexican cuisine has made its

way to the Philippines and is one of the favored food eaten by Filipinos. These snack

foods will be limited and will include tacos, quesadillas, burritos, nachos, and drinks

such as water, fruit juice and shakes which are very much familiar to the society. The

said dishes that are offered do not require the use of plates and utensils for the customers

to eat, making it easier for them considering that this is a mobile food cart business. This

will provide buying convenience for consumers since they can get all these snack foods

in a mobile food cart or food truck and at the same time enjoy fast services. Moreover,

the mobile food cart business will be aesthetically designed based on its product

offerings and mobile, which means it will move from one place to another just as how

food trucks are like in most places in the world. A route of places in Pampanga will be

followed and specific number of hours of staying will be considered by the mobile food

cart business. With the use of the social media, future customers are to be informed on

where the mobile food cart is located. This business will be established to promote a new

marketing strategy in selling foods in Pampanga and to be able to see the effectiveness of

this venture.

Research Objectives

This study aims to know if putting up a mobile food cart business in Pampanga is

attainable and can be a good strategic way to sell snack foods. It also seeks to gather
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information if consumers would have the preference to buy in this type of business and

and if it would be effective and a trend in the said place.

The following are the research objectives of the feasibility study:

1. To know if putting up a mobile food cart business in Pampanga is feasible and

effective.

2. To be able to recognize the market potential of the business and see if customers will

be patronize the product offerings of the mobile food cart business.

3. To be able to determine if the business venture can be financially supported and will

be cost-efficient in its operations.

4. To find out if the business can be successful and would generate a justified and good

Return on Investment.

5. To be able to understand and comprehend the business’ advantages, disadvantages

and risks.

6. To be able to discern which snack foods and drinks are preferred by the customers.

7. To be informed if this kind of business can withstand the competitive industry of

food business in Pampanga and can be a possible trend in the province just like how

it is in Manila.
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Significance of the Study

The feasibility study aims to provide knowledge on the effectiveness of putting

up a mobile food cart business in Pampanga and to see if customers would patronize it. It

seeks to know the advantages and disadvantages of putting up a mobile food cart

business and the risks that it involves. By determining the possibility of putting up this

kind of business, entrepreneurs who are seeking for a low cost business venture can be

helped and given information about it, since it can serve as a good start for a bigger food

stall. It can also create opportunities for other people who want to have this kind of

concept in business but have limited capital. Furthermore, since it is mobile, it can be

transferable from one place to another, which solves the issue if a business is not

booming in particular place. The study can also give description to future entrepreneurs

on things to consider in starting this business venture so that it can be a successful one.
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References

A growing industry in food business. (2015). Retrieved from

http://www.mixph.com/a-growing-industry-in-food-business/

Flores, A. & Koski, A. (2015). Food cart feasibility study. Retrieved from

https://www.beavertonoregon.gov/DocumentCenter/View/9520

Gelo. (2015). Franchise manila. Retrieved from http://franchisemanila.com/2015/09/

food-carts-the-ultimate-small-business-to-start-in-the-philippines/

Malabaguio, M. (2014). The booming of the food cart business. Retrieved from

http://foodcartlink.com/the-booming-of-the-food-cart-business/
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