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Team M.A.V.S Food Truck Business Plan Draft1 1
Team M.A.V.S Food Truck Business Plan Draft1 1
Table of Contents
I. Executive Summary.......................................................................................................................2
II. Business Summary........................................................................................................................3
a. About the Company...................................................................................................................3
b. Products and Services..............................................................................................................4
PRODUCTS: MENU LIST...............................................................................................................4
SERVICES.........................................................................................................................................8
c. The Market....................................................................................................................................8
d. The Business Potential...........................................................................................................10
1. Reasonably low initial investment requirement............................................................10
2. Relatively low operational cost requirement..................................................................10
3. Customer Demographic are larger in nature..................................................................10
4. Target location are relatively more flexible....................................................................10
5. Brand experience are more open......................................................................................11
e. Vision, Mission, Goals and Objectives................................................................................11
VISION STATEMENT.....................................................................................................................11
MISSION STATEMENT..................................................................................................................12
OBJECTIVES..................................................................................................................................12
f. Strategies....................................................................................................................................13
1. Product....................................................................................................................................13
2. Price.........................................................................................................................................13
3. Place.........................................................................................................................................14
4. Promotion...............................................................................................................................14
g. Business Structure...................................................................................................................14
h. Finance........................................................................................................................................15
III. The Market..................................................................................................................................17
a. Industry Profile..........................................................................................................................17
Market Projection and Trends....................................................................................................17
Macro Environment......................................................................................................................18
b. Competition................................................................................................................................21
c. Market Segmentation...............................................................................................................24
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IV. Marketing Plan...........................................................................................................................25
a. Your Customer...........................................................................................................................25
b. SWOT Analysis..........................................................................................................................26
1. Strength...................................................................................................................................26
2. Weakness................................................................................................................................26
3. Opportunities.........................................................................................................................27
4. Threats.....................................................................................................................................27
c. Sales and Marketing Opportunities......................................................................................28
d. Customer Retention Strategies.............................................................................................29
e. Value Proposition......................................................................................................................29
f. Pricing Strategy.........................................................................................................................30
g. Promotion...................................................................................................................................31
V. Operational Plan...........................................................................................................................32
a. Production..................................................................................................................................32
b. Making and Buying Decisions...............................................................................................33
c. Strategic Partnerships.............................................................................................................33
d. Premises, Plant and Equipment............................................................................................33
VI. Finance Plan..............................................................................................................................34
a. Capital Requirements and Funding Proposal....................................................................34
b. Current Financial Position......................................................................................................35
d. Financial Forecasts and Assumptions................................................................................37
1. Balance Sheet........................................................................................................................37
e. Cash Flow Projection...............................................................................................................38
f. Projected Profit and Losses...................................................................................................39
g. Exit Strategy...............................................................................................................................40
VII. Risk Review................................................................................................................................40
a. Major Risks of the business...................................................................................................40
b. Risks Mitigation.........................................................................................................................40
VIII. Structure and Management....................................................................................................40
a. Organizational Structure.........................................................................................................40
b. Key Personnel...........................................................................................................................40
IX. Project Plan................................................................................................................................40
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I. Executive Summary
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II. Business Summary
M.A.V.S Food Truck will be a mobile food truck business operating in the CBD
and Western Sydney areas of New South Wales, Australia during its initial stage of
operation. A possibility of expansion in different parts of NSW and other states and
territories are in its future intention. It will be serving up a fusion of Indian, Nepalese and
Filipino cuisine. It will use locally sourced, mostly Australian ingredients to make a
variety of different curry, soup, stew and rice dishes catered to the local Australian
market. This will further introduce and open doors for the Indian, Nepalese and Filipino
culture to Australia. The menu will be updated base on customer’s taste profile and will
include different variety for the ceaseless interest of its consumers.
The ownership style of the business will be of a partnership type. There will be
four partners who will jointly share in the income and risks wherein all partners are to
assume a 25% ownership in all profit and losses to be incurred by the business.
Partner Contribution
Partner Amount
Mary Santos $ 25,000.00
Santona Gurung $ 25,000.00
Abhinav Sudan $ 25,000.00
Viraj Prajapati $ 25,000.00
Total Partner Contribution $100,000.00
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b. Products and Services
Asian food is commonly associated with rice, curry, and soup dishes, thus
M.A.V.S Food truck will center its products to a variety of these popular dishes from
India, Nepal and The Philippines. Among this are the infamous Tikka Masala Dishes of
India, the Daal Bhat Tarkari soup from Nepal and Adobo Rice from the Philippines. As
this food truck also encourages fusion and twists; it will also allow its customers to pair
up different food staple from these three different countries.
As a part of the service it offers, this food truck will also provide online services of
food orders for lunch. It will come as a prepack lunch meal with their preferred dishes.
All payments can be done electronically to avoid the hassle of handling cash on site.
Indian Dishes
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Chaat Masala Fries- $8.00
Crispy fires prepared with a special spices blend
Raita- $4.00
Yogurt and cucumber dip
Nepalese Dishes
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Choice of chicken, vegetable, pork or buff mince with the flavors of fresh ginger, garlic
and our very own special spices. Served with traditional Momo sauce
Filipino Dishes
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Our version of a classic trifle. This dessert features layers of graham cracker crust,
whipped cream and either mango or peach (seasonal)
SERVICES
As a fully functioning food truck: M.A.V.S’ will also be offering catering services
for corporate event, functions, product launches, or for any personal events and
milestone celebrations by trying something different. Any event times whether for
breakfast, lunch or dinner.
As M.A.V.S food truck will focus on fusion food, we can mix old with modern
flavors of Asian cuisine with an Aussie twist. Alternatively, we can work with you to
provide the personal menu you like and that ensures your guests are cared for and
satisfied. We accept any suggestion, anything you prefer, as we love a challenge.
M.A.VS. food truck will provide a fun, lively dimension to your event which you
and your guests will truly love and appreciate.
c. The Market
Mobile food vendors are considered retail food businesses as they sell food to
the public and need to comply with a range of requirements. With this considered, the
target market that MAVS Food Truck will operate in focuses primarily in the street as its
major location including street corners and big events such as fairs, festival, markets
and shows.
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In the recent years the Australian Food Truck Business numbers has started to
grow alongside the appetite of consumers for a more affordable, heathier and authentic
options. The Food Truck Industry in Australia was kick started in Melbourne and
followed by Adelaide. The Industry has started to see an increasing trend of food trucks
that paved the way of opening opportunities in Sydney. The Food Truck Industry has
been growing, starting with 650 million business in 2012, and now a potential of 2.5
billion by the year 2020. The market is not saturated as of the present, thus ensues
great potential for future years to come.
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Source: IBISWorld, Street Vendors in the US. 2018
A greater number of revenues comes from street corners and street locations.
Street locations consists of 55% of market revenue. This segment sees many
pedestrian traffic during peak business hours. Other popular locations are parking lots,
construction work sites and other venues and events such as concerts, fairs and cultural
events.
Food truck Industry has continued to evolve and has gone mainstream through
the years. This has been proven due to the business potential it presents in comparison
with the traditional restaurants and fast food chains. It presents a huge number of
advantages that caters to startup businesses. Among the advantages of a food truck
business are as follows:
The main component of a food truck business is generally buying the food truck
itself. Thus, once this has been done the rest of the investment allocation can be
focused in procuring the right equipment for the business to be operational. You can
always work around the agreed initial investment to start with like buying a slightly old
truck and even secondhand equipment, while ensuring everything is still in good, high
functioning condition.
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2. Relatively low operational cost requirement
As a startup business, operational cost must be as low as you can be to ensure the
business will not bleed due to hidden costs. This is one of the main advantages of
running a food truck, operational cost is generally low. Unlike restaurants, you don’t
need a big team to fully function, a mobile business can function with a small number of
staff, ensuring all the main responsibilities in the operation are covered and accounted
for. There is also a minimal cost allocation in repairs and maintenance, unlike having a
whole restaurant wherein continuous and tedious maintenance must be provided over
the span of time.
Unlike restaurants and fast food chains, food trucks attract a larger scale of
customer demographic. Fine dining restaurants are normally suitable for richer
consumers, while fast food is for a more average spending household that wants
everything convenient but often not the healthiest option. Food trucks on the other hand
offers inexpensive, budget- friendly meals with a general consideration of a more health
conscious alternative.
Getting licenses and permits in a food truck business might be more complicated
than it normally is, but still one major advantage of a food truck business is its ability to
be mobile and move from one location to another. The mobility of the business enables
it to attract more customers than just the regular ones. You just must ensure that you
choose a location strategically depending in the flow of people in certain locations.
The Business Model of a food truck offers flexibility and more opportunities in
experimentation. Through this, a business can easily create its own brand and lead its
customers to the experience it truly wants. You can easily change the direction of the
business without the customers getting accustomed to your previous design and brand
totality.
With the recent increase in demand for food takeaways in Australia as shown in
the illustration below, our business strategy will focus on specific ways to ensure we will
keep up with the potential growth.
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Source: Eating out on Australia: Takeaway on take-aways 2019
The list below is among the strategies that will describe the business direction our
food truck will partake towards growth.
1. Solidify the branding concept.
2. Offer delightful, authentic and delicious food back to the masses.
3. Efficient ordering and payment schemes.
4. Continuous rotation of new recipes while sticking to the favorites.
5. Partnering and strategizing with other local businesses.
6. Providing personal touch to personal events like cater weddings, parties, and office
events
7. Attending to traditions like local festivals
8. Growing the business’ social media presence.
9. Branching out to delivery options.
10. Franchising of food trucks to investors.
VISION STATEMENT
Our vision is to become a well- established and recognized food truck business
that brings Indian, Nepalese and Filipino dishes to the Australian market. Customers will
not be required to spend money in travelling to have a taste of these authentic dishes,
that’s where we come in. We bring India, Nepal and the Philippines to Australia through
delicious, warm and hearty food.
MISSION STATEMENT
Our mission is not only to offer a variety of great tasting Indian, Nepalese and
Filipino food prepared by talented cooks with love and passion for the cuisine of the said
three countries, but to serve it with delight, care and warmth. We will provide an
ambience stapled with simplicity, but with a feeling of home, welcoming people from all
walks of life that will give them the experience of hospitality of Indian, Nepalese and
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Filipino culture. We also concentrate on customer satisfaction and quality food that is
always fresh and specially selected. We want MAVS Food Truck to be a place wherein
people can enjoy a good meal and meet new friends. While catering to their palate and
wallet by giving them maximum options in customizing their specific dish every time
they order. Finally, in the long run we want to see MAVS Food Truck in every single
event around the country catering particularly to suburbs that are lacking Indian,
Nepalese and Filipino culture.
OBJECTIVES
The objectives of our food truck business are divided into 3 categories. Short term,
medium term and long-term objectives. This are as follows:
Short-term
We will strive to become known and recognized as one of top 5 Food Truck Business in
Sydney are.
All start-up costs and expenses incurred will be completely returned after the first year.
Have a continuous increase in sales market right away that will kick off our food truck
business to its success.
Medium-Term
MAVS Food Truck will aim to be voted as the best place to go to when it comes to Asian
fusion food in CBD and Western Sydney area.
We will establish a consistent and returning customer base.
Have mastered the quick serve rice and curry dishes business with top of the line food
quality.
Long-Term
To have the most popular Indian, Nepalese and Filipino food truck business that is
known for its quality cuisine and friendly service.
Be good enough to franchise out our Food Truck business to other states and territories.
Establish a business that is consistently profitable every year.
Achieve consistent and fair profits at 60% minimum gross margins
Grow our business by a conservative 10% per annum, while maintaining our principles.
Publicly listing the company in the stock market.
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f. Strategies
M.A.V.S Food Truck will engage in a marketing strategy that will focus on 4 main
functions: Product, Price, Place and Promotion.
1. Product
We are aiming to serve healthy and nutritious diet by ensuring to maintain the
authenticity and ethnic aspect of the dishes we are serving. We will buy fresh produce
and quality ingredients to prepare the dishes. Our menu will be limited but will adhere to
occasional changes to provide what the customer wants. Our menu style will be ` a la
carte ´ and “combo meals” meaning customers can order any of the items separately
and combine dishes into one meal for their own preference. Our way of delivery will be
stand-up service or self-service where there will be one counter for ordering and
payments and another counter for handing out the food.
2. Price
our price will vary from $10 to $25 individually and according to dish selection/
combination of what the customer prefers. We are driving the price strategy through
cost leadership and differentiation. Wherein our price will be competitive, if not slightly
cheaper from our competitors. An average pricing which is neither too expensive nor too
cheap that cause the quality to suffer. This will focus the pricing strategy of the business
to be cost oriented. Therefore, we will use cost plus technique for the pricing. Our final
net profit margin will range from 20-25 percent from the selling price of the product. The
Cost-plus technique, is a simple pricing strategy in which you add all the cost overheads
and add your profit margin or profit percentage to derive to the final selling
price of the specific product.
3. Place
Our product will be directly prepared and served from a truck. Location will vary
depending
on the situation and event, we are engaged with at a specific time. We will consider
several aspects and variable for the location such as: convenience and branding
presence, physical aspect, legalities and costing. Therefore, we will prefer busy suburbs
and CBDS’s where there are major attraction spots where there is high influx of people
coming in and out. Touristy locations will also be preferred. Examples of such locations
are Sydney Townhall, Hyde Park, Newtown and locations that are near the train
stations, parks, and places where big events are happening.
4. Promotion
It is the modern times and technology plays a big part of all business types and models.
Thus, our food truck business will use the power media and the internet to our own
advantage. The
population aged 25 to 34 are most commonly the age group that are exposed to the
Internet, several times per day. We will use the following measures below to ensure that
our presence will be known to the customers.
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Participation on several food events and festivals
Paper and prints strategy (including menu flyers, loyalty cards)
Advertising through google ad word, Facebook
g. Business Structure
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h. Finance
Based from our conservative estimations and forecasting, M.A.V.S Food truck is
expected to continue having a desirable financial position over the next five years.
Unless otherwise a complete recession, price inflation and economic loss is to be
experienced worldwide. Our company is expected to break even in the sixth month of its
operations, or within a year of its existence. We are also optimistic and expecting to be
profitable in the first year of operations. Profits continue to increase over the next four
years, as we establish and develop our solid customer base. The biggest concern in the
early stages of the business will be to have enough cash on hand to regularly meet our
payment obligations. In cases of emergency we also must be prepared for unexpected
needs of cash. Our conservative projections indicate that our food truck business can
generate positive and continuous cash flows together with an intact cash reserve.
Different ratio analysis will also be measured to ensure that it will clearly show
that M.A.V.S Food Truck’s financial position is expected to remain strong. Measured by
its liquidity and long-term solvency together with adequate cash flows.
The company's profitability will also be measured by its profitability ratios and is
expected to be is excellent that will be anticipated with slow and steady increase over
the next five years. A positive performance will most likely be rewarded with a high
market share price in the stock market if the company decides to be publicly listed in the
future.
Start Up Expenses
Legal $ 1,200.00
Kitchen Inventory $ 5,000.00
Packaging Materials $ 1,500.00
Kitchen Equipment $ 20,000.00
Insurance $ 1,500.00
Rent $ 2,000.00
Promotion $ 1,300.00
Business Signages $ 3,000.00
Permits $ 1,500.00
Fuel Expenses $ 3,000.00
Total Start Up Expenses $ 40,000.00
Start Up Assets
Truck/ Van Purchase $ 30,000.00
Start Up Inventory $ 10,000.00
Other Current Assets $ 10,000.00
Long Term Assets $ 10,000.00
Total Assets $ 60,000.00
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Total Start Up Working Capital $ 100,000.00
a. Industry Profile
M.A.V.S Food truck is a mobile food serving company where customers order
food and pays at the counter, and eat their food at the side of the street or take it away
with them as opposed to sit-down restaurants that provide table service. Wait-staff or
food servers are therefore not included in our work force. As explained therefore the
business will play a vital role in the Food Essential Industry.
Due to the convenience and accessibility of the food truck business its popularity
has been imminent, thus showcasing numerous current and future trends in the market.
Some of the key trends are the following:
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• Engaging in online reviews and online payments to provide feedback and ease
in business transactions.
It is evident that food businesses reach almost every market segmentation, but
statistics and historical data provides that the biggest consumer of a food truck business
are mostly young adults and parents with small children in a household. The
demographic that normally buys and falls in line in a regular food truck ranges from 25
to 35 years old. The regular spending per person also ranges from AUD 10 to AUD 25
per order.
Macro Environment
There are six factors to consider when it comes to the macro environment of a food
truck business. These are as follows:
• Political Forces
This are government laws and policies governing the business. For a food truck
business are traffic laws and safety. Some of the laws for mobile business in Sydney are
as follows:
Mobile Food Vending Vehicles Local Approvals Policy (LAP)- Conditions for
operation of Food trucks in Sydney:
No trading within 50m radius of another food truck or existing takeaway food and
drink premises. Exemptions to this condition are for special event/festival
purposes only or when trading on one of ten the off-street trading sites.
No trading on the same side of the road and directly in front of a residential
building.
Trading only in a lawful car parking space and complying with local parking
restrictions, such as ticketing requirements.
Cannot trade for longer than four hours at one time any one location.
All waste must be removed from the site by the food truck operator at the end of
the trading.
Lighting from a food truck cannot interrupt or distract traffic flows or be
unreasonably observable from surrounding residential areas.
Extend the street vending operation as follows:
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Approved off-street trading sites
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Fees & charges- The new Mobile Food Vending Vehicle fees include:
1. Dedicated full-time Project Manager
2. Processing all application forms
3. Concept design assessment by the Food Truck
4. Design Panel
5. Vehicle inspections
6. Off-street trading sites Development Application renewals and associated
fees
7. Off-street trading sites hire based on outdoor dining fees for footway dining
8. Off-street sites software costs and management
9. Access to the City’s award-winning Sydney Food
10. Truck free smartphone app including ongoing technical maintenance and
support.
CATEGORY 1 - Food Van Fees- $400 per annum Street vending only.
CATEGORY 2 - Food Truck Fees
-$4,000 per annum Street vending only.
-$9,350* per annum Street vending and low demand off-street sites only.
-$16,830* per annum Street vending and all off-street sites.
• Demographic Forces
This relates specifically to the customers of the food truck business. It involves
different factors such as population size, gender, and age among many others. For our
food truck business, the population size of 5 million people which is the number of
people who resides mostly in the CBD area and Inner West of Sydney. Gender will not
be such a factor as both men and women are more inclined to buy. Consumers ages
18-34 were the most likely to purchase a meal from a food truck thus the demographic
showcases the working-class group.
According to Customer Research Report in January and February 2013
established by Woollcott Research, it is possible to conclude that collected statistical
data shows the preferences of customers and their ideas about food trucks are
following:
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• 38% said no improvements were needed
In summary, the food trucks were seen to be an added attraction for the city and
were felt to bring variety and diversity to the area. They were described as visually
appealing and offered good quality food options.
• Economic Forces
This describes the purchasing power and the pattern of spending of your target
market. For our food truck as the main consumers are of working age, thus it is typical
to say that the consumers do have the buying power in this kind of a business model.
• Technological Forces
This will be important as it relates to the new technology that the business must
adapt continuously in order to survive. In this case, our food truck business will rely on
technology such as the power of the internet and social media.
• Ecological Forces
This part of macro- environment is related to the natural forces and resources that
affects the food truck business such as pollution, calamities and other fortuitous events.
This normally can be dealt with by ensuring businesses will consider a more sustainable
and environmental options such as less usage of plastic in it packaging. At the current
situation, while we are partaking into this business plan the corona virus has been
impacting the world and this is important to reiterate that this business plan is taken into
consideration without the cases of such corona virus situation.
b. Competition
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All businesses face its own threats and competition. Particularly in a food truck
business, it has its own share of direct and indirect competitions. Among the direct
competition are businesses that offers the same product and services as you offer to the
public. Specifically, if you have the same target of demographic. Indirect competition on
the other hand are the local restaurants and fast food chains that are surrounding the
area in which the food truck is currently located. The goal in order to survive the
competition is how you communicate and present the value of the food you are offering
and the service you provide to the customers.
Currently, the competitor of our businesses is typically high-end restaurants and
fast food chains that are currently in the location where we assign to put the food truck
in a specified period. M.A.V.S Food truck will offer a better product, at a reasonable
price, and will deliver the food hot to be cooked when orders are placed unlike most fast
food chains.
Other main competitors that we have identified specially in the CBD area are:
Masala Bowl Sydney, Zaaffran and The Spice Room. We distinguish ourselves from
them by providing better quality Indian, Nepalese and Filipino food at a better and
reasonable price. We also classify other food trucks that will be present in the area
regardless if they offer a different product or cuisine. We will still consider them as a
direct competitor as they might provide adverse effects to our customer and lead to
changes in market segmentation that will affect the company’s profit and losses.
In general, we will still be offering different options to the customers and among
these differences are shown in the table below.
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Leading top 10 Mobile food Trucks in Sydney
1. Agape Organic Food Truck: Gourmet pizzas with Wagyu beef meatball, pecorino and
basil or scallops with Spencer gulf prawns on a spelt grain base, all totally organic.
2. Al Carbon: Soft tacos with beef, pork, lamb and chicken cooked over mesquite and
mango scented charcoal with home-made salsas.
3. Bite Size Delights: Malta’s traditional pastry pockets, pastizzi, filled with flavors including
spinach and ricotta, salmon and dill, cherry, apple and chocolate mousse.
4. Cantina Mobil: Gourmet tacos, nachos and Mexican themed treats washed down with
sparkling, non-alcoholic sangria.
5. Eat Art Truck: Grilled spatchcock, kingfish ceviche and other modern, progressive dishes
from former Tetsuya’s sous chef Stuart McGill.
6. Let’s Do Yum Cha: Steamed gow gee, roasted duck buns and fried spring rolls are
among the Chinese favorites.
7. Tsuru: Modern Asian fusion including braised pork served with a Chinese half-moon bun
or Japanese onigiri rice ball and an origami crane.
8. Urban Pasta: Every ‘cup’ of pasta is a combination of authentic sauces and freshly
cooked pasta, packed with freshness and flavor.
9. The Veggie Patch Van: Paddock-to-plate hits the road with high-end tofu burgers and
other vegetarian fare, fresh juices and custom-made ginger beer.
10. Burger Theory
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c. Market Segmentation
However, it is very vital to consider that more often, corporate customers make
larger orders for their employees' needs or special business events. As explained
above, the main market segments of our business are as follows:
a) Individual customers consisting for more than 70 percent of our overall sales.
b) Corporate customers of local businesses of almost 20 percent wherein, in terms
of sales, usually make larger orders for their staff and organizational needs.
c) Others such as advertisers and other one-off contracts.
The illustration below shows the market segmentation of the customers who will
be the potential customer base of M.A.V.S food truck. For a conservative number in this
illustration purposes, a potential of about 1000 individual customers, 10 corporate
customers and 2 one off customers who will be bracketed as the potential “Others”
category.
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IV. Marketing Plan
a. Your Customer
In every business, it is only the customer that can lift you up or down. One of the
key strengths of any business is to make an ideal and regular customer. If there is no
customer, there is neither a job nor a business. All the top brands of the market are
working hard to satisfy their customer because it brings value to the company. So, it is
very important for a business to choose the products that satisfy the customer needs.
As far as our business is concerned, our customer will be all those food lovers that love
to enjoy the meal during free or busy time while they out with their family. Our food will
not only satisfy their hunger but also makes them happy and will bring all that flavor and
taste that they found at their home.
Well, if we talk in terms of size, our customer will range from 10-50 age group. It
is analyzed that the age group from 10-17yrs and 40-50yrs like the mild food. On the
other hand, the age group from 20-35yrs like the hot and strong flavored food. So, we
will be serving the food as per their needs. We have both types of food available that
can be served anytime. The following chart will clearly show the food needs as per the
age group:
On basis of our analysis, our main target will be the people from age group 20-
35yrs. It is because these are the persons that stay out of house mainly because of
work and other same stuff. The idea is to set up the truck in the remote areas such as
carnival sites, sporting centers, construction sites etc. where people find it difficult to
access the food even if they live in major cities. It is estimated that an average adult
spent around 70-80$ a month on the food while they are away from home. Our focus is
to target such customers.
Apart from that we can also take advantage of some other places like; offices,
industrial parks, food markets such as Sydney paddy market, religious hubs etc. We will
try to provide quality food to our customers so that they stay fit and healthy. Our selling
procedure of the food will be very simple. They can order the food; we will make it ready
as fast as we can, and they can get it at the waiting side.
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Our timing will be very simple. We will be open from 9am – 4pm. In some other
cases like night event etc. we will work and operate night-time as well. We will love to
serve our customers. Our main idea is to make them happy and to sell 80% of our food
by the end of the day. The taste and flavor, we deliver to them will remind them of their
home cook food and the quality we maintain will assure them they are eating healthy
food. Our focus, while opening to new stations will be to make more and more
customers that will help us to succeed.
b. SWOT Analysis
Since, we all are working as a team, but it is very important for us to analyze the
market carefully and then ask ourselves that are we ready to launch our food truck
business or not. There are lot of factors in our favor but at same time there exist some
factors that we must contend if we want to be the number one brand in food truck
business. For this, we need to do SWOT analysis. Below is the summary of this
analysis being conducted on behalf of our food truck business.
1. Strength
Attitude: our main strength is our mutual relation, dedication and understanding
with each other.
Dedication: we are fully dedicated to our work and we want to make it one of the
biggest firms in this sector.
Assets: we will acquire a relatively new mobile food preparation vehicle so our
focus will be to make our customers happy so that they will come back to us.
There is big competition in the market, so we want to assure that we top this spot
by bringing home food flavour and taste to our customers when they are away
from home.
Capacity: apart from that we also want to make assure that we all the customers
will be served as our new food truck has the capacity to serve over 500 people a
day.
Quality: another strength of our food truck is the quality of food we are serving.
We have the health certificate for the type of food we been serving that brings
value to our business. All these provides strength to our business.
2. Weakness
New in town: there are number of factors that can cause trouble to us. Since, we
are planning to open a new food truck business so first thing is to make
customer. No business thrives without customers.
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Start-up challenges: second thing to focus is that there are alongside business
that are offering similar kind of services to the people that can distract us and
block us in certain ways. We are quite aware of all these things and are working
towards blocking any of these things that can make us slow and hence could
affect our business.
3. Opportunities
There is lot of opportunity for us to grow and expand our business. There are lot
of factors that are in our favour.
Firstly, fast growing population in the Sydney CBD.
Since we are not localized to one location so, we can move from one place to
other in a single day to serve our customers at different time of the day.
The only thing that we need to know is that when to arrive and leave for the other
location. For example, we can serve our food to the customers in the daytime at
Sydney Markets and the leave the place in evening for another place if there is
any event in the Sydney CBD. All these is being possible because of the mobility
we have because of our truck.
4. Threats
There are number of threats that every business face. Similar is the case with our
food truck business as well.
One of the biggest threats is the traffic in the city.
Any delay to reach at the location can cause trouble in the business as it
leads to loss the important customers. Another threat is the mobility of the food
truck. Any mishappening with the vehicle parts can cause a trouble for us to
reach the destination.
Apart from the above threats, any government policy like shutdown or no access
of trucks can also pose a great threat to our business.
Higher taxes and fees in the future for mobile food truck businesses.
5. Competitive Edge
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• Location: It is in the heart of the Sydney CBD, near the Universities
and Recreational Centers. This is the busiest area in town.
Businesses always runs well if there is a proper plan for the marketing and the sale
of the product. There should be different ways to generate the source of the income. For
generating source of income, we need someone who can properly plan all these
sources.
Source of income
The source of the income could be anything. It includes of the following mentioned
below.
Sales Target
Our main idea is to sell as much as we can. The sales figure is just based on
assumption. Our target for first year is. In next two years we will try to attract more and
more customers. If the things going according to our estimate, we will try to double this
figure in next two years. Let’s trace a rough figure to estimate the sales.
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If we calculate all this result, the figure for daytime sales per day will be around
$5000. This is just a rough figure when we assuming the numbers to be very small
which could rise at any time.
Apart from this, we will be open certain days of week in night as well. Assume, if
we open 2 days at night in a week and making a sale of 2500 a day.
The sales if calculate for the first year will be=$7500*53 (1-week sale* 53 weeks in a
year)
=$397500
There are some ways we could improve our customer experience. All this creates
good impression and improves our sales. Some of them as stated below:
All this will help us to grow the business. It is because if customer is happy, we
are happy too.
e. Value Proposition
There are number of benefits that customers can achieve if they come to us to
buy the food. Since, we are aware of the competition that exists in this business and
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hence we are able to analyse the market and will do a proper survey that will help us to
find our ideal customer and make plans according to that.
When the customer will tie up with us, they will get several benefits. Some of
them are mentioned below:
All these things help us to attract the customer. There are different players in the
market, but our food truck will be different from them and will help them to choose the
best in the market.
f. Pricing Strategy
One of the focus of any business is to set a good price for the product. Price should
be neither too much higher nor too much low. An ideal price for a product is best in any
business. It is because, if the price is too much customer never return to the shop and if
the price is too less then they may think it as cheap stuff. As far as we are concerned,
our price will be average so that everyone can afford it. Below is the table that shows
the rough idea of pricing as per the product
PRODUCT PRICE
MEAL $10-$25
SNACKS $5- $8
DRINKS $3
From our point of view this price will be easy to afford as it’s not too high and
everyone can afford it. The only way to attract more customer is to serve them with
quality food which is at reasonable price as fixed by us.
Well, we know there is big competition in the market. We need certain tools and
techniques that can help us to overtake the others in the market. There are number of
techniques that we can acquire in order to beat the others in the market. Some of these
methods are mentioned below:
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2. Check the quality of food on daily basis
3. Take the customer feedback seriously and work on it
4. Make available number of meals as per customer demand
5. Make available varieties of drinks
6. Sell hygienic food only
7. Offer discounts to the regular customers
8. Make deals for the customer for buying more than one meal
9. Available family meals for group of people
10. Ensuring fast and tidy delivery
11. Offering free drinks with family meals
12. Offering some discounts on certain products on weekends etc.
All these simple steps will help us to grow our business and will attract the
customers towards us. Since, we are offering different promotions and deals for our
customer but that doesn’t mean that we will compromise with the quality and quantity of
food. Our priority is to put the food quality at the top when it comes to the health of the
customers.
g. Promotion
The promotion of the product can be done in different ways. There are number of
ways to promote your business. Some of the different ways to promote a new business
are mentioned below.
1. By social media
2. By advertisement and banners
3. Through emails
4. By direct marketing etc.
As far as we are concerned, we will use all these methods to promote our
business. It is because we need to make our customer base. Social media is one of the
best ways to promote any business. We can also use after sale customer support to
make changes in our business. It is because customer support will ensure that we are
going in right direction and will be able to know the needs and requirements of the
customer deeply.
Another way to promote the product is by taking the feedback from the
customers. We must ensure that we open different communication channels like emails,
telephones etc. and make social media pages to lodge the complaint regarding the food
etc.
1. Are you satisfied with the taste and quantity of our foods?
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2. If you are not satisfied with the taste and quantity of our food what areas
would you want us to improve on going forward?
3. What time of the day would you want our food truck to be stationed in your
location?
4. How would you want us to communicate with to you when our food truck
will arrive at your location? Text messages, e – mail, or via mobile apps
(BBM, twitter, WhatsApp et al)
5. How much are you willing to pay for a pack of breakfast and lunch?
6. Is there any food or drink that you would prefer that is not in our menu? If
yes, please list them.
7. Aside from food and drinks, would you also prefer to buy snacks and ice
cream from us?
8. If you are to change one thing in Food Truck Company what would that
be?
9. Can you comfortably recommend our foods and drinks to your family
members, friends and colleagues?
10. Are you satisfied with our customer service delivery? If not, what areas
would you want us to improve on?
V. Operational Plan
a. Production
Operational plan is very crucial for proper production and management of the
business. M.A.V.S food truck will prepare the food of different varieties in Indian,
Nepalese, and Filipino tastes. Besides this, our business prepares some food items
before the event starts, and then we cook at the time of event location, and near Sydney
CBD areas.
First, our staff will purchase groceries in two ways such as raw foods, and
processed foods from local farmers and wholesale markets. After buying food we
transport our materials to desired place to serve the people. The food that we are
serving to people will be store in refrigerator, room temperature, and isotherm boxes
according to storing requirements of the food.
Secondly, the other important part of the food truck business is processing and
preparing of food items.
The M.A.V.S food truck will prepare food items in three different ways. The staff
will prepare some foodstuffs before the serve. For example, Indian naan dough to make
the bread. This will help to increase efficiency, and faster the process to serve food to
the customers. After preparing food we will cook on site, and at point of sale. Some food
stuffs need room temperatures while other needs to serve hot as it cooks.
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In the last, at the end of day we need to clean all the equipment, food containers,
food truck and the location. We also need to make sure consumption of food, and
according to that we also need to take care for storage of the food stuffs.
Our company will be faced with decisions related with make or buy. There are
some components of our product which will be purchased from outside while there are
components which will be made by the organization. For example, while preparing the
food items for cuisine of India, Nepal and Philippines, we will purchase some authentic
sauce and spices from the specific country to ensure that the tastes are authentic. While
the other components of our product will be freshly made in the kitchen established
inside the truck. The spices and sauce will add the flavouring which will provide
authentic tastes to the customers.
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c. Strategic Partnerships
The premise which is required to operate the business is a food truck. It will be a
movable truck which can move around the city depending upon the regions where we
face maximum demand. The truck will be taken on lease, which will allow to lower the
costs of production in the initial years. This decision will be effective as it will also help to
reduce the risks faced by the company. There will be no upfront large payments, which
will allow investment in other areas of business. However, while entering into the lease
agreement, the company will ensure that there is a purchasing option which will allow
flexibility (The New Business Road Test: What Entrepreneurs and Executives Should
Do before Writing a Business Plan, 2004).
The plant and equipment required to run the food truck business include, cooking
gas stoves, grills, hoods, enclosed cabinets, utensils, kitchen set-up, cleaning products,
freezer, refrigerators, ventilators, electric equipment, etc. This equipment will be
purchased at the starting of the business and the costs will be included in the start-up
funds required. These are some of the specific equipment which will be required for the
business.
The location of our business in not fixed. We will be setting the business in a
movable food truck. This truck will be present in different parts of the city in different
time period depending upon the level of demand. Therefore, we will directly come to the
locations or the workplace of the customers to provide our products.
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VI. Finance Plan
There are several financial requirements of a new venture. The financial needs
can be divided as the start-up capital and the working capital needs. The start-up capital
is the financial investment which is required for the development of the new venture.
There are a few sources for start-up funds. These include the venture capitalists, banks,
angel investors, etc. It helps in covering all the expenses required for staring the
business. Our business will avail the start-up funds from the bank which will be in the
form of business loan.
The other financial need of our organization will include the working capital
needs. The funds will be required for daily operations of the business. These funds are
used to pay the short-term obligations, related with planned expenses of the
organization.
We will be using funds from external sources which include banks and financial
institutions. We will take loan at a rate of interest which will be paid from the profits of
the company. The profits which is earned by the company after paying the interests and
taxes will be reinvested in the business as an internal source of funds (Vesper and
Vesper, 1993).
The company will use the internal and external source of funds for meeting the
capital requirement and working capital needs. Some of the internal and external
sources of funds which will be used are as follows:
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Owners’ savings- The funds which will be used by our company include the
owner’s savings. The owners will invest their own savings as they believe in the idea. As
it is a new venture with no past records, there will be very few external investors which
may be believe in the profits of the business. Banks are also not interested to invest in
an organization which has no track records. It will be an effective source of finance as
there will be no burden of interest. Also, there will be no obligation to pay back the loan
amount. The biggest challenge is that there may not be enough funds which can be
invested in the company. As a result, the strategic projects of the company may suffer.
Sometimes the use of personal money by the entrepreneur may strain the personal and
family life of the owner. This is very stressful and may impact the performance of the
organization.
Reinvestment of profits- The profits from the company will be re-invested which
will also be an important source of internal finance. One of the greatest advantages of
using this form of internal finance is that there is no burden of repaying the loan amount.
There is no interest charges and other obligations. There are several challenges such
as it may create shortage of funds which is not enough to meet the working capital
needs.
Our organization will also use some external source of funds which are as
follows:
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• Funds from friends and Family- The funds from friends and family is also
an important source of external financing which can be used in our organization. The
money can be borrowed from the friends which can be used for expansion of the
business. However, there is a disadvantage that the friends may soon start influencing
the decisions of the organization.
The projected financial statements have been prepared in accordance with the
general accounting principles, and necessarily include some amounts that are based on
reasonable estimates and judgement. For accounting purposes, the long-term assets
are expensed using the straight-line depreciation method, and inventory is accounted
for based on the First-In, First-Out (FIFO) method.
Since our normal operating capacity is 200 dishes per day, and at only around 60%
percent of normal operating capacity and is expected to be much greater than the
computed break-even point, we believe that our company is likely to easily reach and
maintain profitability.
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d. Financial Forecasts and Assumptions
1. Balance Sheet
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Loan Accounts 0 15,000 18,000 20,000 25,000
114,00
Other Current Assets 10,000 40,000 71,000 92,000
0
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Total cash flow from operating
-23,000 -37,000 -47,000 -52,000 -113,000
activities
Investment activities, cash flow
provided by or used in
1. Income Statement
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Salaries 70,000 90,000 110,000 140,000 150,000
g. Exit Strategy
The outside investors like the banks will be an important stakeholder of the
company. They will be interested in the financial position of the organization to evaluate
the security of their funds. They will charge a rate of interest which is required to be paid
by the company in each year. Along with the interest, the company also need to pay
back the principle amount based on the terms agreed.
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