Perception and Interests of the Target Customers Ages 15-49 in the Locality to a

Hamburger Food Truck Business

A Research Proposal  Presented to the Faculty

Of Saint Louis School. Inc - High School Department, Baguio City

In Partial Fulfillment
Of the Requirements for the Subject
Research in Daily Life 1 and 2

Submitted by:
Krishia Mae Bigtas
Aleah Shane Nadiasan
Hannah Billie Malabanan
Clyde Ceric De Guzman

January 2022

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 INTRODUCTION
Background of the Study
Food trucks are giving new meaning to what it means to “eat out.” The
exponential development in the popularity of food trucks, as well as the transition that
this section of the market has been undergoing in comparison to traditional means of
selling food on the street, demonstrates a process of innovation in the way that food is
produced and consumed (Bispo & Almei`fada, 2020). The food truck market consists of
serving foods like hamburgers, fries, nachos, and such connoisseur foods. The trade
contains institutions primarily engaged in getting ready and serving meals from a mobile
truck. Food is often ready, keep and roast on the food truck. The food truck might or
might not use a similar location daily and does not sell alcoholic beverages (Ibis World,
2021). According to San Pedro (2019), food trucks can cater to all variety of products,
from burgers, hotdogs, vegan sandwiches, coffee, and gourmet dishes.

The Texas chuck wagon is a pioneer to the American food truck in the United
States. In 1866, Charles Goodnight, the “Father of the Texas Panhandle,” Outfitted a
solid old US Army wagon with inside shelving and drawers and equipped it with
housewares, food, and medical supplies. Aside from these, a water barrel and a sling for
kindling wood to heat and cook food were also included in the wagon’s equipment
(Diwanji, n.d.). As time goes by, food trucks continuously evolved, how it functions, the
designs, and the food that will be offered had undergone development and food truck
became popular and big as many consumers demanded a wider menu without losing their
convenience (San Pedro, n.d.). People adore the food, the low prices, and the fact that
they seem to be popping up everywhere these days. Some undoubtedly enjoy this
profession because it allows people to reach goals and objectives. It allows them to be the
person they were meant to be, whether that is a chef, a business owner, or both. This is a
fantastic career for those who like to work with food. Food from a food truck is not only
excellent, but also affordable (FoodTruckr LLC, 2018).

According to Borgen Magazine (2020), customers receive meals made in a

certified cooking space, and workers handling the food have easy access to all the
necessary sanitary tools. As a result, food trucks are widely regarded as a safer and
healthier option to street sellers. Food trucks are enabling prospective entrepreneurs in
underserved areas who want to start their own business, owning a small business is one of
the most crucial factors in promoting social mobility among low-income families. When
deciding on a menu for a food truck, one of the most key factors to consider is whether
the meals can be prepared quickly in a food truck. It is not required to prepare these
extremely intricate dishes that are just not possible to make in a tiny truck because there

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are space and equipment constraints. Fortunately, burgers, fries, and even chicken
sandwiches are simple to prepare in a truck and do not necessitate a lot of pricey cooking
equipment. While burger food trucks and restaurants may appear to be uniform in
appearance, they come in a variety of shapes and sizes. Some companies pride
themselves on only utilizing organic beef and being environmentally concerned; others
specialize in gourmet burgers; and still others may simply wish to sell fast food versions
of the burger. Burger menus can also be readily adapted to other types of events to which
a food truck may be invited. It can be a festival or a baseball game wherein food trucks
can serve milkshakes, ice cream, and other sweet treats in addition to the standard cuisine
of burgers, fries, hot dogs, and chicken sandwiches if the business have the proper
equipment (Zacs, 2021).
As noted by Uy (2012), food trucks began to serve as an alternative to restaurants,
however, others operate as an extension of restaurants. In the Philippines, white collar
employees can order guisadong monggo, menudo, dinuguan, or any other Filipino meal
with a cup of hot rice from stainless steel “jollijeeps” stationed on every street in the
Makati commercial district. It is popular at fairs, festivals, concerts, and sporting events
or any place where people gather (Uy, 2012). Bonatella Foodtruck Builders Philippines is
the first and only truck body fabrication firm in the Philippines that specializes on food
trucks and other mobile companies. The company's goal is to deliver high-quality, low-
cost mobile enterprises to aspiring entrepreneurs, employees who wish to start their own
businesses, OFWs, and ordinary Filipinos (Food Truck Empire, 2016).
In this locality, Calle Uno Food Hub located at Calle Uno Coworking Space, on
Escoda Street, Quezon Hill, the first food truck park in Baguio has been opened since
January 27,2017. This food truck is not just an ordinary food truck because of the unique
features set up in outdoor dining. The food truck is a repurposed and refitted old
Volkswagen beetles (Mobile Cuisine, n.d.). According to Ace Estrada, the managing
director of Calle Uno, the Calle Uno Food Hub may be the first food truck in the
Philippines or even in Asia that makes use of Volkswagen beetles and Kombis. The food
hub does not just serve high-quality and decent food but also a gorgeous and interesting
place for instagrammable selfies and groupies. Estrada, the managing director of Calle
Uno Food Hub, envisions the food truck to not just be what it was intended to be but to
be more than that, like his coworking space Calle Uno. Estrada also wanted the Calle
Uno Food Hub to grow as a community, from the business owners that are part of the
food hub, to the diners who want to experience new and unique dining in Baguio City
(Dunuan, 2017).
Yolk Korean Egg Sandwiches, a food truck that sells trendy food located at
Burnham Park in Baguio City. Distinct types of sandwiches were offered which include
Gilbon, Dwaeji, Jagpum, Dan, and Korean egg pancake (Agpaoa, 2021). The food truck
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also offers hot beverages to keep the customer warm considering the chilly climate in
Baguio City, these hot beverages are Sagada Arabica medium roast, Benguet Blend
Arabica dark roast, and Honey Citron tea (Tan, 2021). This food truck also allows
customers to borrow baskets and blankets and. Experience picnic at the park. Yolk
Korean Egg Sandwiches offers a variety of products that is vastly different from the egg
sandwiches that Filipinos are familiar with Yolk Korean Egg Sandwiches are very
demanded, it has an exceedingly lengthy line to the counter, thus, customer must have
patience. From serving one-of-a-kind tastes of the sandwiches this food truck offers, the
business resulted to receive better and great reviews and feedback from customers (Tan,
2021).
The profitability a food truck can make on a monthly or yearly basis will depend
on a lot of factors. When it comes to the profitability of a food truck business, the
weather in the area where it runs can be a very crucial aspect. Food trucks that are in
"warmer" places have a better chance of selling their cuisine all year than those that sell
their food in states where winter occurs (Martins, n.d.). Looking for a spot for a food
truck at events can have a massive impact on sales during the slow winter months.
Despite the chilly weather, there will still be hungry and thirsty customers among the
bustling crowd looking for a bite or drink (Cover Wallet, n.d.). Cosmas (2019) (as cited
by Samat & Gopi, 2020) noted that for progress and endurance in the present market, it
has been recognized that service quality and customer satisfaction plays an important and
essential role. It is understood that the more the business goes out and sells the food, the
more money the food truck will make. For instance, if the business provides lunch and
dinner on a regular basis, it will make more money at the end of the year than if it only
serves breakfast (Profitable Venture, n.d.).
Furthermore, many businesses were obliged to reconfigure their trends, formats,
alter menus, and accelerate concepts that had been steadily gaining traction over the
previous decade because of the COVID-19 pandemic. As the year progresses to 2022,
several of the previous year's trends will continue to expand and give rise to innovative
ideas (Gentile, 2021). According to Oches (2020), sustainability has been a buzzword for
restaurant operators for many years, but the pandemic has given sustainability a new
urgency; with sales pivoting entirely to off-premises and with contactless service key to
building trust with consumers, disposable cutlery and packaging is surged in use. As cited
by Oches (2020), Moskow (n.d.) says that operators will need to enhance the packaging,
so it is not only lightweight and stands up to the rigors of delivery, but also is recyclable,
minimal, and free of hazardous chemicals. According to Linchpinseo (2021), the growth
of fast-food restaurant delivery choices is rising and will continue. Casual restaurants that
have not offered delivery for decades are now turning to third-party providers. There are

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restaurants that have delivery-only locations, and it is new and exciting. This means that
they will only make food for delivery in so-called "ghost kitchens."
In addition, consumers today are extremely busier than they were in the past, they
want to be serviced as soon as possible. As a result, it is critical for fast food companies
to improve their speed and convenience. Consumers will not prefer restaurants that do not
provide prompt customer service overall. Hence, fast food businesses must acquire quick,
timely, more convenient, and easy access to food items (Business Wire, 2018). The fast-
food business will undoubtedly continue to play a vital role in the cultural landscape. By
incorporating the trends, restaurateurs are meeting the expectations of customers,
particularly in terms of efficiency and eating in a more health-conscious manner. Given
that fast food consumption is frequently connected to poor health, some of the upcoming
improvements will help to improve the industry's image. While fast food is not meant to
be consumed every day of the week, the adjustments that are occurring will provide
regular customers more options (Linchpinseo, 2021).
The purpose of this market research is to introduce a food truck business proposal
namely, Wander Food Truck, to the locality specifically ages 15-49 which main product
is hamburgers served through a food truck. This research directs the researchers to come
into a conclusion about the interest and perception of its target customers, which are the
gen Z, millennials, and gen X.
The business offers a variety of hamburgers including side dishes and drinks that
are conceptualized and are named after by nature around the world such as landforms and
water forms. The hamburger names are inspired by well-known mountains and
volcanoes, while the drinks are inspired by the famous ocean and rivers. The side dishes
are also inspired by known forests and jungles around the world, these products
mentioned will be prepared and sold in a food truck. With all the information collected
above, the researchers discovered the immense potential of a food truck business. Wander
Food Truck provides convenience because of its flexible locations and the food to be
served is consumed with convenience to the customers and ensures that it provides high
quality food and services.

Industry and Market Environment

According to Miraflor (2021), based on the Foreign Agricultural Service (FAS)
Research, from 2015 to 2019 food service industry sales have been consistently on an
uptrend, in 2019 food service industry sales even peaked by 15.9 billion US Dollars
before it stopped and decrease by 44% to 8.54 billion US Dollars brought by the
pandemic. The food service sector here in the Philippines continues its steady move

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driven by consumers’ food strong purchasing power. In the year 2019, Foreign
Agriculture Service Manila saw an increase of 8.6% near 15 billion US dollar about the
food service sales. Food service industry here in the Philippines comprises of 92,011
establishments; restaurants, cafeterias, hotel food service, bars, fast food chains, and
catering services are included (Rubio, 2019).

During the forecast period from 2019-2024, food service market in the Philippines
is growing at a compound annual growth rate (CAGR) of 4.5%, the sales of food service
market in the Philippines continued to increase as the number of food service
establishment increases and the economic performance became stronger. Establishments
were able to increase as the frequency of customer eating out also increased influence by
a growing wealth, busy lifestyle, desire or convenience, and the entry in the food service
market of the international brands. Customer’s willingness to try different restaurants
with a wide range of menu drive the food service market of the Philippines to increase
(Business Wire, 2019). Also, according to Moridor Intelligence, 2019 (as cited by Market
Insights Report, 2019), the sales of the food service market here in the Philippines is
increasing because of the impressive performance of the economy in the past years and
the continuous increase of food service buildings, they also stated that the food service
market is increasing at compound annual growth rate (CAGR) of 4.5% during the
forecast period from 2019-2024.

Moreover, a compound annual growth rate (CAGR) of 4.67% is expected to

witness in the food service sector of the Philippines during the forecast period, 2021-
2026. The food service sector had a major hit caused by the strict lockdown brought by
COVID-19. However, on the month of June 2020, eateries in Manila were allowed to
reopen while following safety health protocols by strictly following 30% of seating
capacity, proper hygiene, and observing social distancing. The rising value-consciousness
of customers who are willing to try new restaurant that cater a wide menu option, and
busy lifestyle highly drive the food service market in the Philippines. It is also expected
that food service establishment will increase due to the growth of independent restaurants
in the food service market of the Philippines (Moridor Intelligence, n.d.) Another source
stated that, food service industry was hit by strict lockdowns to prevent the spread of
virus after the blast of COVID-19 here in the Philippines, compound annual growth rate
of 4.67% is expected to happen in the food service industry here in the Philippines during
the forecast period from 2021-2026 (Research and Markets, n.d.).

On the other hand, food trucks can be considered mobile restaurants that can
move from one place to another. Due to the affordability, and availability of food trucks
anywhere, the food truck market is gaining attraction. Aside from that, less investment in

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capital is one of the reasons that impact the growth of the food truck market (Veracious
Statistics Research, 2018). According to various market research institutes, the food truck
sector is growing at a rate of roughly 7.9% per year, which is enormous when compared
to the 2% annual growth rate of the restaurant industry (Truckster, n.d.) The market size
growth of a Food Truck has been projected to increase to 1.2 billion US dollars in the
year 2021. The food truck industry in the US annualized a market size growth from 2016
– 2021 by 6.6% and the market size of the food truck industry in the year 2021 is 4.7%
(Ibis World, 2021). While the global food truck market is predicted to grow at a CAGR
of 5.59 percent to USD 2,775.86 million by 2026, from USD 2,002.58 million in 2020 to
USD 2,107.81 million in 2021 (Report Linker, 2021). Moreover, food truck sales surged
by 79 percent from $660.5 million to $1.2 billion between 2012 and 2017 (Hait, 2020). In
addition, quick changes in the lifestyle of the people in other countries due to
urbanization will impact the growth in the food truck market in the Asia Pacific in the
coming years. Also, the rising income of the people in developing countries in Asia is
expected to aid the growth of food trucks and increase the mobile restaurants business
(Veracious Statistics Research, 2018).
According to Vasic (2021), the rising popularity of the food truck industry
changed its reputation from getting a cheap bite to exciting local or exotic food stops.
Serving anything or everywhere, from burgers, cupcakes, and ice cream to foreign
delicacies, food trucks are now full-fledged restaurant venues. These changes were
reflected in the food truck industry trends, resulting in truck numbers and revenues
showing growth. As COVID-19 hit many places all over the world in 2020, food truck
development decreased. According to Report Linker (2021), COVID-19 is an
unprecedented global public health crisis that has impacted every business, and its long-
term repercussions are expected to have an influence on industry growth during the
forecast period. Food trucks, which are essentially mobile kitchens, are adaptable by
nature and soon became a go-to alternative for consumers who could not eat indoors and
wanted something different from their standard takeout options during the pandemic
(Hannon, 2021). In the year 2019, more than 25,000 food trucks were expected to be
operating across the country by 2020, with a total market size of $1.1 billion (Johnson,
2019). Additionally, the food truck industry grew by 7.5% on average on 2015 to 2020,
January of 2021, 24,602 food trucks are still active in the United States, early 2021,
29,608 people have been employed in the food truck market, and way back in 2019, a
food truck in the United States had a market worth of 1.4 billion dollars (about $4 per
person in the US), however, due to the pandemic brought by the COVID-19 during 2020,
the market worth dopped to 1.24 billion dollars (Ibis World, n.d as cited by Vasic,
2021.).
Pestel Analysis

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 To further understand the food truck industry, the researchers made use of
PESTEL (Political, Environmental, Social, Technological, Environmental, and Legal)
analysis which is a tool to identify the macro environment or the external market
environment that might affect or have an impact on the business or organization.
PESTEL analysis is used to gain a picture of the macro environment of the business or
industry (Corporate Finance, n.d.). It can also be reduced to PEST, or some areas can be
added, depending on the organization (Oxford College of Marketing, n.d.). The result of
which can be used to identify the weaknesses and threats of a business and can also help
in decision making (Washington State University, 2021).

Political and Legal

In the Philippine setting, one of the laws that are related to the food businesses in
this research is the act to strengthen the food safety regulatory system in the country to
protect consumer health and facilitate market access of local foods and food products and
for other purposes also known as the Republic Act 10611 or the Food Safety Act of 2013
(Official Gazette, 2015). Before an owner can start a food truck business, it is required to
acquire the proper and legal permit. Entrepreneurs may visit their individual city halls to
understand what form of business permits they must get. Food truck business owners also
need permits such as barangay permit, Bureau of Internal Revenue (BIR), The
Department of Trade and Industry (DTI), and mayor’s permit like the other business,
owners should acquire these permits to be able to operate. According to Support Staff
(2016), their food truck owners get permits from each barangay where they wish to
operate.

Food truck businesses must acquire fire certificates given that it is necessary for
the business to use cooking equipment and gas lines on the truck. The fire department
will check the cooking equipment for proper installation and function, electrical wiring,
and to ensure that there is a fire suppression system in the vehicle (Myrick, n.d.).
According to the Republic Act 9514 or otherwise called “The codification of the
Philippines of 2008,” the principal law governing the interference and suppression of all
harmful fires and the professionalization of the hearth service as a profession (Official
Gazette, 2008).

House Bill No. 3540 is an act regulate parking facilities and the collection of fees
therefrom and prescribing penalties for violation thereof (Department of Trade Industry,
2019). In connection with the house bill, here in Baguio City, the city council approves
the proposed ordinance to expand the implementation of parking areas from 6 a.m. to 9
a.m. and from 4 p.m. to 7 p.m. daily within major roads in the central business area, any
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person that would violate the ordinance shall be made liable and will pay 500 pesos as
fine for every violation that was committed (The City Government of Baguio, n.d.).
According to Section 46 of Republic Act No. 4136, no driver shall park a vehicle, or
permit it to stand, whether attended or unattended, upon a highway in any of the
following spaces: within an intersection, on a crosswalk, in front of a private driveway,
and at any place where official signs have been erected prohibiting parking.

Economic
Prices of ingredients or inflation is another factor that can bring huge effect on the
food businesses. In the Philippines in September 2021, food prices increased by 6.4%
following a 6.5% gain in the prior month which became the high reading in six months
(Trading Economics, n.d.). Inflation could impact both the consumers and the business
itself, in the side of business, inflation can cause for the employees to ask for a much
higher rate and might lead for the business to increase the price of its products, inflation
can also impact the consumer in a way that it reduces the purchasing power of money of
the consumers since the consumer will focus more on purchasing and spending money
for the necessities, and this will not happen only if the income of the consumer also
increases along with the increase of inflation rate, inflation can impact the sales of the
business as the level of consumer spending will decrease (Bitesize, n.d.). According to
WF Financial Solutions (2017), there are ways on how businesses can reduce the impact
of inflation in the business, one is to plan and assess, it is hard to predicts about the rise
of inflation because the warning signs are not obvious, and the rise of inflation rate is
unpredictable as it can increase in several months depending on the state of economy, and
assessing the current situation of the business like the cash flows and other parts of the
business will help for business owners to provide and prepare a tools that will be use in
the future.

Demand of the customer serves as an important element in formulating food and

agricultural policies, and changes in prices of food and other products are one factor that
affects the demand, prices of foods are influential in determining the food demand
(USDA Economic Research Service, n.d.). When the COVID-19 started, the country
experienced economic recession, and recession can also affect the demand, small
business-like food truck who depend on the small number of customers could lose a large
amount of income if a customer reduces its purchase amount or worse when customer
stop buying and business owners could lose money if the business cannot sell goods
(Sandilands, n.d.). As the pandemic brought by the COVID-19 hit many places around
the globe, it is seen that it impacts the process from food supply chain to the consumer,
food supply chains experienced challenges and deals concerns about food production,
contribution, and demand. One of the results of COVID-19 is the changes in demand of
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consumers (Aday, 2020). However, according to Linchpinseo (2021), there are trends
that can help to shape the food truck industry, one of those is through increasing
technology and social media, food truck can expand their social media presence through
different platforms like Facebook, Twitter, Instagram, etc. Food truck business can
expand their presence in these platforms to also expand and keep their customer base that
is reliant on the young generation. Using social medias, it allows food truck business to
advertise their locations and their business itself.

Social
As society is continually changing, the taste, lifestyle and perception of the
consumers is part of these changes. Continuously rising population of social media users
is one of the most significant differences, there are social networking sites like Facebook,
Instagram, and twitter that have been extremely popular among younger generation,
during this time, the younger generation is more likely to use digital technology to buy
and shop online while elders stick to the traditional way of buying and shopping (Pestle
Analysis Contributor, 2015). These changes in society have impacts on businesses like
food trucks and other food businesses, these changes can impact businesses in unusual
ways (Brown, n.d.). The perception of the consumer on the benefit of the food and risk it
may bring can also impact food truck business, individual decision on buying or food
consumption is driven by the benefit and risk perception. Food is critical in health and
well-being of a person thus, people are more conservative in term of food than any other
products because could be a risk and factor that can affect the health, consumer make
food choices based on the benefits to avoid undesirable consequences (Ueland et al.,
2012 as cited by Chung & Yoon, 2017). Even though food trucks and restaurants have
similarities, still food truck operates with only limited facilities for food storage,
preparation, and cooking that build up the concern of consumer about proper sanitation
and cleaning of the surfaces where food have contact (Kahneman & Tversky, 1979 as
cited by Chung & Yoon, 2017).
In order to prevent this kind of issue about the hygiene of the food truck, Mobile
Cuisine gave ways on how to maintain the hygiene and food safety of a food truck, first is
the hand of the employee or vendor must always be clean, hygiene is the most important
thing that food business must think because proper hygiene can prevent illness and spread
of germs, food truck owner must have a little space as washing station that provide
running water and soap with paper towels and sanitizer, hand hygiene is important for
food truck business as food from food truck has the high risk to be contaminated, the
employee must also avoid touching the food after getting or touching the money, and the
employee should always use gloves and wash hands before and after preparing the food
(Myrick, n.d.). Myrick (n.d.) also stated to always sanitize the surface, all food truck
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vendors must consider and refer to local health department regarding the regulations on
the necessary concentration for sanitizing solutions, and in disinfecting the food
preparation area, counter and service and utility surfaces better use paper towels or
disposable wipes rather than using a reusable cloth towel that can hold bacteria.
Technological
Food trucks can upgrade their services by providing or adopting technology that
can bring more efficiency, convenience, expanded operation and drive sales. Point of sale
system on mobile can give benefits to food truck, it is easier for customer to swipe cards
through a mobile device with the help of these systems (Lassiter, 2018). For efficiency
and convenience, there is hardware and software that allows food trucks to be more
efficient and convenient, point of sale system (POS), POS is a hardware and software that
allows the business to collect the payment of the customer and keep track of the sale, and
it is quite common that is specifically designed for food trucks (Rivera, 2017). Since POS
is internet-based, one of the problems that the business will encounter is the internet
connectivity, it is possible that the payment processor may lost connectivity, and various
internet issues can make the POS offline, thus, it is better to adapt an offline point of sale
system (POS), POS offline can be use efficiently and conveniently even without internet,
and in addition, it can process payments including credit and debit cards transactions
much safely and secure even without the internet (Orpilla, 2020). To succeed, food truck
owners must adopt the right technology that can help the food truck address the
challenges that can attract return customers and new customers to have and ensure a more
developed food truck. Mobile point on sale system can bring efficiency to food truck, by
choosing right POS it can help the business not just to take order but can also process and
collect payments in much easier way. It also enables food trucks to customize to give a
better and quality customer experience because in POS it is easy to do customization. By
putting effective POS on food trucks, it can help the owner to operate the business
quickly (Stubbs, 2019).
Environmental
No one can control mother nature, even food truck operators, even the operators
are careful enough, still mother nature is inevitable. There is vehicle related danger that
could impact food truck business, and natural disasters are quite common, other outdoor
disasters like lightning, wind disturbance, and heavy rainfall are major threats to food
truck business. These events may cause damage that could be costly and can have a long-
term effect on the business operations, temporary closure that can affect the revenue of
the business (Loughlin, 2018). Also, one environmental factor that can affect the business
is the weather, weather can change the mood of the customer. Moreover, mood can affect
the purchasing amount or demand for a certain product. Weather can also impact the

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demand of different menus categories, hot, cold, light, medium, and heavy menu (Bujisic,
Bogicevic, & Parsa, 2016).
Through the PESTEL analysis conducted above, the researchers found out that
there are a lot of factors that can impact the proposed food truck business. Licenses and
permits are the most important things that a business owner must have before operating
the business. There are also economic issues that affect the business, the economy plays a
huge part in the cash flow and demand of the food truck. Social perceptions could also
impact the business, changing lifestyle of consumer and their perceptions in terms of
cleanliness are present and the lifestyle society especially the younger generation are into
digital technology in buying and shopping online. Also, natural disasters cannot be
prevented from having impacts on business. With the use of PESTEL analysis,
researchers have further understood the industry and environment of food trucks.
PESTEL analysis helped the researchers to identify external factors that might affect the
business.

Customer Research
A percentage of respondents claimed they eat a fast-food burger at least twice a
month (Brisan Group, 2020). Over half of those polled say they eat a burger at a sit-down
restaurant once every three months or less. Burgers are purchased 2-3 times a month or
less by those who buy fresh and frozen patties from the grocery store. Most clients
consider themselves traditional when it comes to eating their burgers. Naturally, they
want the healthier burger to taste as good as, if not better than, a traditional burger.
Consumers believe that plant-based burgers should taste like beef and give added
nutrition from vegetables and grains. Customers are looking for a burger that contains
both meat and vegetables (Brisan Group, 2020).
According to IBISWorld Inc. Research (n.d.) as cited by Food Trucks &
Concessions, 25-to 44-year-olds spend 43 percent of food truck spending each month,
with 20 percent coming from those under the age of 25. They eat from food trucks or
quick service food seller 12 or more times each month according to reports and they
spend more than their salary on food than any other generation because they do not cook,
this demographic eats out more frequently than older users. Creativity and originality are
two characteristics that millennials seek in a food truck (O’Chucks, n.d.). The generation
is more ethically varied than any other, they are regularly exposed to a wide range of
cultural influences, and they are accustomed to having a large of choices while shopping
(O’Chucks, n.d.). Food truck patrons between the ages of eighteen and thirty-four area
unit the foremost probably to eat from one, followed by those between the ages of thirty-
five and forty-four. Over 80% of food truck diners choose to eat there because it is a fun,
new, and distinct experience. Customer satisfaction is the most crucial factor in the
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success of food trucks: More than 90% of customers are satisfied with their experience,
with 43% rating it as excellent and 48% rating it as good (Dusan Vasic, 2021).
Furthermore, between 2017 and 2018, Cint as cited by Statista Research Department
(2021), conducted a survey to determine the average number of times fast food from
quick service restaurants was consumed per week in the Philippines. In the Philippines,
35.09 percent of respondents said they eat fast food less than once a week (Statista
Research Department, 2021).
Technomic's College and University Trend Report, 42% of Generation Z wants
street food on the menu. This could be due to the growing popularity of food trucks
serving street cuisine among Generation Z. The bulk of Generation Z is looking for
cuisine that reflects their views. Restaurants that use organic, sustainable, and locally
sourced produce on their menus appeal to Generation Z. With a stronger interest in food,
Generation Z is more inclined than earlier generations to try restaurant takeout on nights
when they can't get out. Online ordering has become Generation Z's best buddy, and this
does not appear to be changing anytime soon. Generation Z is open to trying new meals
and experimenting with unconventional, out-of-the-ordinary eating habits. They are
looking for restaurants that serve both trendy and traditional cuisine (McSweeney 2019).
Street foods are ready-to-eat dishes prepared and sold by sellers in the street where a
large number of people pass by. These foods are consumed by consumers on the go, such
as students, because they are cheap, accessible, and affordable in comparison to
restaurant food (Research Gate, 2021). According to Statista, n.d. (as cited by Smith,
2018), the National Restaurant Association revealed that consumers between the ages of
18 and 34 were the most likely to purchase a meal from a food truck, followed by those
between the ages of 35 and 44.
According to Technomic Inc. Generational Consumer Trend Report, n.d. (as cited
by Gordon Food Service, n.d.), Generation X are the ones who possess highest income
along with boomers than any other generation. Generation X are the ones who do not
have much financial concern when eating out as stated by Flavor & Menu (n.d.) as cited
by Gordon Food Services (n.d.). Fona International (2019) also stated that generation X
are the ones who generate higher household income compared to other generation.
Among all generation X, 62% of them likes to explore and try new and different kinds of
foods and flavors on their plate from time to time (Lewis, 2018). However, what they
prefer to eat are burgers and pizza (Gordon Food Services, n.d.). Considering the
convenience of a food truck, it will fit to the preference of the Generation X because
generation X are the leaders of those made-to-order food because generation X wanted
convenience. They also stated that meaty, fruity, and cheesy are commonly popular
flavors for this generation (Fona International, 2019).
Competition Research
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 According to Schooley (2019), the best way to keep track of growth, strengths
and weaknesses of a business is consistent business analysis and strategic planning.
Using a series of analysis strategies, like SWOT, in the business’ decision-making
process helps to examine and execute strategies in a more balanced and in-depth way. 

Competition is not just another business that might take money away from the
business (Business Link UK, 2009, as cited by Info Entrepreneurs, n.d.). Competition
research is the foundation of a strong marketing strategy. Not being able to identify the
competitors and their marketing tactics will give the business a struggle to differentiate
its product from the crowd. The first step in finding business competitors is to
differentiate direct and indirect competitors as well as replacement competitors (Biggart,
2018). 

Types of Market Direct Competitors Indirect Replacement

Competition Competition Competitor
Definition Direct competitors Indirect Replacement
are businesses competitors are competitors are
offering related businesses offering businesses who
products or services a product or service provide an
to the same clients that is in the same alternative to the
through the same category as their services the other
distribution competitor, but it can offer that solves
channel. (Global acts as a substitute the same pain
Victoria, n.d.).   for a product or points (Wallman,
service (Carroll, 2019). 
2020).
Examples Yolk Korean Egg McDonalds Small Burger Joints
Sandwiches Burger King without brand like
Barney’s Burger burger stalls,
present in eatery,
stores, and street
food alleys.
Offers Offers Minute McDonalds offers a Small burger joints
Burger has an wide range of menu in the city offer a
extensive menu full consisting of ala regular burger,
of tasty selections carte meals, sometimes without
at very low prices. burgers, drinks, vegetables, at a
Main items include desserts, and french very affordable
Minute Burger, fries with a price. Some also

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 Chicken burgers reasonable price in offer drinks,
and sandwiches, each product. whether soda or
Cheese Dog and juice. 
Burger, nachos, and
drinks. Minute
Burger also has
bundles perfect for
barkada nights,
family gatherings,
and parties (Cebu
Bulletin, 2019).

SWOT Analysis
To further understand the competition level of Wander Food Truck, the SWOT
Analysis is used to compare the brand to its direct and indirect competitors in Baguio
City: Minute Burger, McDonald’s, and Burger King. Swot analysis is a framework for
evaluating a company's performance, competition, risk, and potential, as well as parts of a
company like a product line or division, an industry, or another entity (Kenton, 2021). A
SWOT analysis is a basic two-by-two grid that puts your top strengths, weaknesses,
opportunities, and threats into an ordered list (Parsons, 2021).
TABLE 1: SWOT Analysis: WANDER FOOD TRUCK

STRENGTHS WEAKNESS
Saves Renting Costs Lack of Experience and Information on
- Starting a restaurant is quite Managing the Food Truck
expensive, and rentals in populated - In managing the food truck there
areas are very exorbitant. Wander are details about the market,
Food Truck can avoid the hassle of cooking styles and methods, as well
hefty rental charges. Once the as information on the route and
permits are processed, the business schedule at various locations. Since
is free to start anywhere. the food truck is still an emerging
business in the city, it will take
Fast Services time to learn how to manage the
- Unlike in restaurants, food trucks business.
can offer a fast and quick service, High Starting Capital
food trucks as the flexibility to - The main expense will be the food
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 move around and it can also
prevent crowded spaces like in
restaurants.
Flexible Location
- Food trucks can move around the
city as long as there are parking
spaces and places are not
prohibited.
OPPORTUNITIES
Bigger Market
- The food industry is vast because
people need to eat to survive. The
bulk population of employees,
students, tourists, and even locals,
on the other hand, are the target
market of Wander Food Truck.
Emerging Business
- The food truck industry is an
example of a newly emerging
business in the Philippines and in
the city. Although the market is
competitive, it has not yet become
overloaded. There is enough
market share for entrants to take
advantage of. If the business
provides good service and performs
effectively, the business will be
able to capture a massive portion of
the market.
truck itself when it comes to buying
food truck vehicles. Costs can go
up higher if renovations are
applied. Also, equipment and
maintenance will also be costly.
THREATS
Small Business Competitors
- There are several burger joints
around the city that have no brand
which offers Buy 1 Take 1 on their
burgers. They serve burgers at an
extremely low price, which is half
of the price offered.
Hygiene Conscious People
- There are customers that are
hygiene conscious if the food truck
is not hygienic and the customer
sees it, it is possible that customer
will influence the perception of
other people. Thus, food trucks
must observe strict hygiene, proper
sanitation, wash hands, and decent
and clean uniform or clothing
because it can attract more
customers.

TABLE 2: SWOT Analysis of a Direct Competitor: YOLK KOREAN EGG

SANDWICHES (Tan, 2021)

STRENGTHS WEAKNESSES
Trendy Product Limiter Menu
- Yolk Korean Egg Sandwiches are - Yolk Korean Egg Sandwiches menu is
trendy nowadays because of the quite short or small, considering that a

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 influence of Korean drama’s where wide range of menu/option can attract
egg sandwiches started to be famous. consumers.
Popularity
- Yolk Korean Egg Sandwiches is
immensely popular on social media
which leads people to be interested in
their product.

OPPORTUNITIES THREATS
Business Expansion Duplication
- The food truck should expand by - This food truck is the first business to
branching out or setting it up for offer Korean egg sandwiches in the
franchising to widen their locality. Thus, Yolk Korean Egg
demographics. Sandwiches are prone to duplication
by other businesses.
Weather
- Yolk Korean Egg Sandwiches mostly
operate outdoors. Thus, weather is a
threat because during the rainy season
people prefer to eat in an indoor
restaurant.

TABLE 3: SWOT Analysis of a Direct Competitor: BARNEY’S BURGER (Barneys

Burger, 2014)

STRENGTHS WEAKNESS
Quality Not Popular
- Barney’s Burger patties are high - Barney’s Burger is not popular in
quality as they are the ones who the city, only a few locals know
made the recipe. They serve juicy about the product. They must
and incredibly tasty patty added promote their business more.
with some greens.
Affordability
- Their price range is surprisingly
affordable, the lowest price for
their burger is Php 59.00 while the
most expensive on their menu is
Php 120.00.
OPPORTUNITIES THREATS
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 Promotion High Competition
- Since the business is not known by - Many brands have reached the
many, advertisements and locality, which results in intense
promotions can be a way to attract competition among hamburger
more customers. chains.

TABLE 4: SWOT Analysis of an Indirect Competitor: McDonalds

(Madhav, 2021)

STRENGTHS
Brand Name and Image
- Mcdonalds is a powerful brand known
worldwide, and it is instantly
recognizable.
Technology Developments
- McDonalds innovated their way of
taking orders by using kiosks and Intense Competition
directly paying for it at the counter.
Delicious Food
- The menu of McDonalds varies in the
country it is located, that is why in the
City of Baguio the brand’s food is
considered delicious as it fits the taste
of the locals.
WEAKNESSES
Unhealthy Food Image
- It is said that McDonald's food is
unhealthy because of the calorie
content of their food. The amount of
oil that goes into cooking their food is
one of the factors.
- McDonalds has countless competitors
but, in the Philippines, its intense
competitor is Jollibee which is a
Filipino brand.

OPPORTUNITIES
Innovative Products
- By adding more goods of this type
based on local conditions and culture,
McDonald's can maintain their
attraction for a longer period.
Having a Healthy Image
- There is a potential to redeem the
brand from being unhealthy to a
healthy image. They can innovate
products with fresh burgers and
nutritious desserts.
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THREATS
Fast Food Trends
- Other fast-food restaurants are
coordinated with modern fast-food
trends while McDonalds remains in
their traditional menu.
Competitors
- There are many rising fast food
businesses in the city, local or
international brands that exceed
McDonald's standard.
 TABLE 5: SWOT Analysis of an Indirect Competitor: Burger King
(Business Strategy Hub, 2020)

STRENGTHS WEAKNESSES
Brand Value Expensive
- Burger King is one of the top ten - Customers might get the same
fast-food chain brands in the world product for a lower price from
according to some estimates. In competitors because Burger
2020, the company's brand worth King’s burgers are highly pricey.
was 6368 million dollars, placing As a result, the restaurant's brand
it eighth among the world's top has a decreased level of client
restaurant brands. loyalty.
Wide Variety Negative Controversies
- Customers can choose from a vast - Each issue and unfavorable press
range of products and services at progressively erode customers'
Burger King, both locally and trust. Some issues are the brand
globally. Chicken, sweets, serving horsemeat to customers or
beverages, poutine-covered fries, giving non-vegan Whoppers to
taro-filled fries, grilled burgers, vegans.
and bacon-studded buns are
among them.
Innovative Products
- Burger King's products have yet to
meet the health requirements of
the best diet. However, its
products are far superior and
healthier than those offered by
competitors. An example of their
product is the plant based
“impossible sandwich.”

OPPORTUNITIES
Focus on Emerging Economies
- Burger King should expand into
emerging markets such as Latin
America, the Middle East, Africa,
and Asia. These markets have
enormous potential for expansion,
THREATS
Stiff Competition
- Burger King's main competitors
are McDonald's, Starbucks, and
KFC. Their rapid expansion and
growing market share constitute a
significant danger to the company.

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 and the food company should
direct its efforts there.
Diversify Portfolio
- Burger King may diversify its
portfolio beyond the restaurant Regulations
industry rather than focusing
solely on it. For example, instead
of relying on other retailers to
distribute its plant-based
Whoppers, the brand might create
a grocery store to distribute their
product.
Even in the restaurant industry, all
these brands are in tough
competition for revenue and
market share.
- Governments around the world are
struggling to cover the costs of
treating and managing lifestyle
diseases connected to unhealthy
food. To reduce unhealthy foods,
governments can enact rules
targeting fast-food outlets such as
Burger King.

After looking at all four components of SWOT analysis, it helped in building on

the business’ strengths, strengthen the weaker areas, avoid dangers, and seize every
opportunity (Mind Tools, n.d.). According to Shewan (2021), the SWOT analysis offers
businesses more immediate, potentially actionable roadmaps, although PEST studies can
be quite useful in developing longer-term business plans and goals. The SWOT Analysis
conducted above helped the researchers to determine not only the analytics of Wander
Food Truck but also its direct and indirect competitors. With that, the researchers were
able to determine guides on strategies as to managing a food truck business.
Target Demographics
According to Coughlin (2016), individuals mostly consist of the millennial generation are
the common consumer of food trucks because 47% of Millennials have been buying and
purchasing products from a food truck. Another factor is that most of the customers of
food truck now is consist of Millennials because it is more particular for them to have a
meal or to eat outdoor. Based on the customer research, generation Z are people who
loves and very fond of street foods and generation X are the ones who generate much
household income, and they are the ones who do not have much financial concern when
eating out.
Therefore, Wander Food Truck’s target demographics are time conscious people and
those who value food quality service in a period of time. Generation Z, Millennials, and
Generation X are the potential consumer considering the factors that are stated above and
as they are the ones who can afford the product. The preferred age range of customers are

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15-49 years old because these people have the means to avail of the products since they
are the ones who have the means to spend money and buy the product.
Research Objectives
The following are the objectives of the market research:

- to determine the perception of the potential customers about a hamburger food

truck
- to determine the interest of the potential customer in terms of the products of a
hamburger food truck
- to determine the marketability of a hamburger food truck in the locality

METHODOLOGY
Research Design
This study will use a mixed method sequential explanatory design. According to
George (2021), mixed method research combines elements of quantitative research and
qualitative research to answer the research question. Mixed methods can help gain a more
complete picture than a standalone quantitative or qualitative study as it integrates
benefits of both methods. Sequential explanatory approach is compromised by an initial
phase of quantitative data gathering and analysis, followed by a second phase of
qualitative data collection of analysis (Tashakkori & Teddlie, 2010, as cited by, Warfa,
2017).
In addition, quantitative data is usually collected for statistical analysis using
surveys, polls or questionnaires sent across to a specific section of a population. The
retrieve results can be established across a population (Surendran, n.d.). Quantitative data
will be obtained through a survey questionnaire which will be used in gathering basic
information about the interest and marketability of a hamburger food truck. This method
includes analyzing the factors affecting the customer’s decision in availing of the
products and services that the proposed food truck has to offer to them.
Qualitative data is the descriptive and conceptual findings collected through
interviews and observations that allows researchers to explore ideas and further explain
quantitative results (National Institute for Children's Health Quality, 2021). Qualitative
data will be obtained through the interviews conducted using Microsoft Teams which will
be helpful in gathering data regarding the perception of the chosen respondents about

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food truck services and additional information that will further help in explaining the
quantitative part of the research.

Research Framework

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 The research title is “Perception and Interests of the Potential Customers Ages 15-
49 in the Locality to a Hamburger Food Truck Business” the framework shown above are
the identified variables employed in the study which is potential customers' preferences
and interest in food trucks serving hamburgers and its marketability. Each variable

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identifies and discusses customers' perception of food trucks and hamburgers; analysis of
customer interest studies was also utilized to identify the marketability of a hamburger
food truck business. To avoid limiting data collection, both quantitative and qualitative
methods were employed to determine potential customers' interest in food trucks and
hamburgers, as well as to define the key data.
Population of the Study
According to the census conducted then by the Philippine Statistics Authority in
the year 2015, there were 190,021 people in the City of Baguio who are 15-49 years old
(PhilAtlas, n.d.). The potential customers ages 15-24 (Gen Z) has a total population of
76,612, while ages 25-39 (Millennials) has a total population of 77,924, and ages 40-49
(Gen X) has a total population of 35,485. This is the age bracket of the target
demographic of Wander Food Truck. They serve as the study's population since they are
the representation of the business target demographics. As stated in the target
demographic, the Wander Food truck's potential customers are ages 15 to 49. From this
sample size, the researchers computed the sample size to be used for the data collection
stage, specifically for the questionnaires and surveys to be conducted.
Raosoft sample size calculator and stratified sampling, specifically, proportionate
stratified sampling were used by the researchers in computing for the sample size.
According to Explorable (2009), proportionate stratified sampling technique has a higher
statistical precision because variability within subgroups is lower than variability across
the overall population. Proportionate stratified sample is a version of a sampling method
called stratified sample. If specific demographic features influence the phenomenon
being studied, these traits can be used for stratification. This indicates that stratification
factors will be used to divide the population and sample into subpopulations or
subsamples (Ipsos Encyclopedia, 2016). When compared to the overall population, the
sample size of each stratum in this technique is proportional to the population size of the
stratum. This means that the sampling fraction for each stratum is the same (Explorable,
2009). In this research, the stratum size is per age range. The Raosoft sample size
calculator was used by the researchers in computing for the sample size. The computed
recommended sample size from the Raosoft sample size calculator is 384 with a 5%
margin of error and 95% confidence level from having 190,021 as population size. The
proportionate stratified sample will be obtained using this formula: (sample
size/population size) x stratum size (Hayes, 2021).
Sample Computation for Gen Z:
(Sample size/population size) x stratum size
(384 / 190, 021) x 76, 612 = 155

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 POTENTIAL CUSTOMERS AGES 15-49
GEN Z (15-24) (MILLENNIALS (25-39) GEN X (40-49)
76,612 77,924 35,485

POTENTIAL CUSTOMERS AGES 15-49

GEN Z (15-24) (MILLENNIALS (25-39) GEN X (40-49)
155 157 72
Total number of respondents: 384

Data Gathering Tools

The data gathering tool that the researchers will use are survey questionnaire and
interview guide, these tools will be applied to collect data and information that the
researchers will analyze and treat to have results and see if these results will meet the
objectives of the research. These tools will be used for quantitative and qualitative parts
of research. Quantitative research often uses survey questionnaires to collect and gather
data and information from the respondents. The questionnaire is an instrument that can be
used in research, it has sets of questions that are made to collect data and information
from the respondents (Lumen Learning, n.d.). The questionnaire will give the researchers
a quicker and more efficient huge information from a huge sample of people, and through
questionnaire researchers could easily and quickly collect data even at a large population
by distributing the questionnaire (McLeod, 2018). Qualitative research will use
interviews to collect and gather data and information. Qualitative interviews or in-depth
interviews are conducted to hear the perceptions, own words, and ideas of the
respondents about a certain topic. Moreover, researchers will also conduct interviews and
will create an interview guide questions to be asked to the interviewees. Interview guide
is a list of questions that the interviewer wishes to ask to the interviewee or the
respondents during the interview (DeCarlo, 2021).
Therefore, the researcher will conduct a one-on-one interview with the
respondents to gather further information about the respondent's perception to a
hamburger food truck, and to collect further data that can back up the quantitative data.
Considering that the researchers will use Mixed Method as a research design where
qualitative and quantitative are involved, thus, researchers will use both a survey
questionnaire and interview guide to gather and collect information from the respondents.
Data Gathering Procedure
The researchers will gather and identify all the needed information in order to
determine the feasibility of Wander Food Truck in Baguio City by using two data
gathering tools which are survey questionnaire and interviews. The researchers will
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create a survey questionnaire and interview guide that will be used during the interview
and will submit it to the research teacher for checking and to verify the validity of both
the questionnaire and the interview guide. After asking for permission, researchers will
continue to conduct a survey by distributing it to the respondents. The data and
information that will be gathered through the survey will be used and considered as
quantitative data. For further information, after gathering and collecting data from the
questionnaire, the researchers will pick random students to conduct interviews. After
which, the researchers will conduct a one-on-one interview with the selected respondents
and will make use of the prepared interview guide to have further information about the
perceptions of the interviewees or respondents. Interviews will be done virtually with the
use of Microsoft teams and all interviews that were conducted are recorded. The data
gathered in the interviews were considered as qualitative data.
Treatment of Data
After researchers collected the data from the respondents using the questionnaire,
researchers will then tally, interpret, and analyze the quantitative data using a descriptive
statistical method. According to Trochim (n.d.), descriptive statistics are used to
characterize the fundamental features of a study's data. It gives quick summaries of the
sample and the metrics as well as the foundation of practically every quantitative data
analysis, along with simple graphical analysis. In frequency count the number of how
many people will fit into a certain category or the number of times a characteristic occurs
will be computed (University of Guelph, n.d.). Thus, researchers will use frequency count
and will tally the result or the answer of the respondents from the questionnaire in which
the preferences and willingness of the respondents are gathered.
On the other hand, in treating and analyzing the qualitative data from interviews,
researchers will be using thematic analysis. According to Braun and Clarke (2006) as
cited by Kiger and Varpio (2020), one method of analyzing qualitative data is thematic
method, in thematic method in order to report, identify, and analyze repeated pattern
research must search across the data set. The process of constructing themes and selecting
coded in thematic method involves not just describing data but interpretation (Braun &
Clarke, 2006 as cited by Kiger & Varpio, 2020). According to Mortensen (2020), when
conducting an interview, code is a quick explanation of what is being stated in the
interview; hence, the researchers write down a code every time they see something
noteworthy in the data. Additionally, the term "code" refers to a description rather than an
interpretation. After conducting every interview, researchers will organize all the data by
rewriting it to avoid confusion and for researchers not to forget what was said by the
interviewee. After rewriting, organizing, and arranging the data, researchers will then
analyze it. Furthermore, for better understanding, researchers will read the transcript
several times and will get ideas or will break it into codes. After breaking the codes,
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researchers will categorize and put these codes together to form themes. And with those
themes, researchers will now interpret it and will create discussions. Therefore, with
thematic analysis method, the researchers will be able to treat and analyze the gathered
data from the potential customers perception of a hamburger food truck business.

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