Individual Research/ Analysis

Sankalp Patel (2221545)

University Canada West

MGMT 661: Strategic Management

Prof. Cherly Thomas

6 October 2023

Research Required

 Population data of the various municipalities where she may want to park her food

truck.

 Other Businesses in the potential municipalities that may make or break her chances

of increasing her profits.

 Cost and Sales prices in various areas.

Analyses Required

 Population Analysis

 Competitive Analysis

 Profitability Analysis

Data Required
  Population data

 Google Maps and locations

 Cost and sales data

Setting the Premises

For the purpose of the research, it is essential to understand that downtown Vancouver

is considered the area around Granville and Vancouver City Centre. The figure below

indicates what is to be regarded as downtown Vancouver for this research to find other

feasible destinations for Susan to park her food truck.

Figure 1:Area to be regarded as Downtown Vancouver, Google (n.d)

 The next step is to identify two locations, considering that Susan aims to increase her

profit by parking her truck in other areas. The Two potential areas of operation for Susan

could be Gastown or Yaletown.

Gastown is an ideal setting for food trucks to operate because it incorporates modern

attractions with historical charm. The region's well-known landmarks and rich cultural legacy

attract many visitors and residents who come to wander the cobblestone streets. Food vendors

find a steady company in Gastown thanks to the area's busy calendar for events and festivals,

frequent pedestrian traffic, and proximity to commercial sites. The neighborhood is more

appealing because of its lively nightlife, active social media presence, outside eating areas,

and friendly community. Food truck owners will find Gastown to be a desirable location due

to its cultural significance, diverse population, and lively atmosphere, even though

competition and maintenance costs must also be considered.

Yaletown is a popular spot for food trucks for many reasons. Because of its central

location and luxurious, trendy neighborhood reputation, it enjoys an ongoing flow of foot

traffic. The amalgamation of businesses, professionals, and residents in the area creates a

demand for quick dining options between the locals as well as office workers, which is

further fueled by the continual flow of potential customers passing by food trucks. In

addition, Yaletown draws tourists, especially during the warmer months, which makes it an

appealing spot for food trucks. The neighborhood's famous attractions, including well-liked

areas like David Lam Park, offer the perfect conditions for food truck activities, and its

diverse population enables food truck operators to cater to various cuisines. Other benefits

include support from the community, outdoor food choices, accessibility via transit, and

possible business networking.

Population Analysis

Population Comparison of Downtown Vancouver, Gastown, and Yaletown (Data from

2021)

Downtown Gastown Yaletown

Vancouver

Population 9188 3888 14583

Population Density 12319 11,414 26473

(Sq. Km)

The above statistics are derived from Statistics Canada and updated for 2021 by Environics

Analytics.

The population and population density of Downtown Vancouver, Gastown, and

Yaletown—three different areas of Vancouver—are compared in the table for 2021. In terms

of population, Yaletown had a significantly greater population of 14,583 than Downtown

Vancouver, which had 9,188 residents. Gastown had 3,888 people living there. But if the

population density is looked at further, it becomes clear that Yale Town has the most excellent

density—26,473 people per square kilometer—followed by Downtown Vancouver (12,319

people per rectangular kilometres) and Gastown (11,414 people per square kilometres)

(Areavibes, 2021).

Food trucks can operate wonderfully in areas with high population densities in several

ways. Since more people live nearby and can easily reach them, this translates into a more

extensive customer base and possibly higher sales and profit margins (Valencia, 2023). In

densely populated areas, pedestrian traffic is typically more increased, facilitating food

trucks' ability to bring in walk-in customers. Furthermore, food trucks can accommodate a
greater variety of palates because of the diverse demographics and tastes in these regions. On

the other hand, there can be fierce rivalry and more extraordinary operating expenses.

To succeed in this environment, food truck owners in high-density areas concentrate on

providing distinctive choices on the menu, exceptional cuisine, and outstanding customer

service.

Given the relatively high population density in Gastown and Yaletown, Susan, the

owner of these food trucks, will profit from having her business located in both areas. Mainly,

Yaletown is notable for having an exceptionally dense population, which indicates a

significant concentration of prospective consumers in a comparatively small area. Susan

advantages most from this factor because it increases her customer base and potential sales.

In addition, the high population density in these regions results in a rise in pedestrian traffic,

encompassing residents, workers, and visitors who frequent those lively neighborhoods.

These bustling streets provide Susan's food trucks with many opportunities to draw in an

ongoing flow of customers.

The different demographic makeup of densely populated areas like Yaletown and

Gastown is another big plus for Susan as a business owner. These locations cater to an array

of culinary is and are composed of age groups, backgrounds, and cultural backgrounds.

Furthermore, because of their proximity to the central business district, office workers

frequently ask for quick and easy lunch choices; this makes these regions ideal for her food

trucks to cater to the business community.

 Competitive Analysis

Yaletown

The fact that there are few food trucks in Yaletown indicates that Susan, the owner of

these food trucks, may need more rivals in this market. However, it is essential to note that

Yaletown is home for several small businesses, including well-known companies like The

Figure 2: Small food businesses in Yaletown, Google (n.d)

Flying Pig - Yaletown, Brix and Mortar, Zaab Thai Cuisine, CAPO & The Spritz, and MeeT

in Yaletown. Despite not being direct competitors, these eateries and eating places may have

a secondary effect in the food truck industry. For Susan's food trucks to thrive in this

changing and possibly competitive environment, they must excel at distinguishing themselves

from the competition, providing unique food options, and providing superior service. These

local businesses could serve similar customer demographics and cater to comparable food

preferences.
Gastown

Figure 3: Food trucks in Gastown, Google (n.d)

Susan will find herself in a highly competitive marketplace in Gastown, where well-

known rivals like Mom's Grilled Cheese Truck, Frying Pan food truck, Tacofino Taco

Bar, and arturosmexico2go are present. as the proprietor of such food trucks, Susan may find

this dynamic environment difficult. However, Gastown continues to be a desirable location

for her business despite the rivalry. Numerous opportunities arise from the neighborhood's

high visitor count, historical significance, and diverse customer base. Susan's food trucks gain

from Gastown's distinct identity and standing as a well-liked tourist destination. Additionally,

by providing unique menu items and excellent service, she can successfully carve out a niche

and operate in this cutthroat area, using the lively neighborhood and steady stream of

consumers.
 Profitability Analysis

Costs

If all trucks have been purchased and permit fees don't change, the fixed costs for

setting up food trucks in Gastown, Yaletown, and downtown Vancouver are the same.

However, the primary area where variable costs differ is in the price of fuel. Gastown has

moderate fuel costs, while Yaletown has more expensive gasoline because of its somewhat

distant location. The variance of the expenses arises from the distances to the operational

places, whereas fixed costs like permits and first truck purchases give operators a solid

foundation to regulate prices in these energetic neighborhoods.

Sales

Particulars Downtown Vancouver Yaletown Gastown

Unit sale price $8 (Van Hot Dog) $6 (The Juice Truck $9(Frying Pan Food

Yaletown) Truck)

Units to be sold 200 (Assumed for 300 (based on higher 150 (Based on lower

calculation) population density population density

and lesser and higher

competition) competition)

Total Sales $ 1600 $1800 $1350

When it comes to assessing the viability of each location, the determining factor is

sales. Based on assumptions derived from one current street vendor in each area, the unit sale

prices, and anticipated units sold vary. In downtown Vancouver, the assumed unit sale price is

$8 (Van Hot Dog), with an estimated 200 units, resulting in total sales of $1600. In Yaletown,

the unit sale price is $6 (The Juice Truck Yaletown), and it's anticipated that 300 units will be
sold, yielding total sales of $1800. Meanwhile, in Gastown, the unit sale price is $9 (Frying

Pan Food Truck), and sales of 150 units are expected, amounting to total sales of $1350.

Recommendations

Given the available information and evaluation, it is clear that, besides to being

present in downtown Vancouver, Susan, the person who owns these food trucks, ought to

seriously consider setting up shop in Yaletown. Both Gastown and Yaletown have significant

populations that present opportunities for her food trucks to prosper; however, Yaletown has a

notably higher density of population, that concentrates an abundance of potential customers

in a comparatively small area. Susan's customer base and sales potential are significantly

boosted by this factor, as highly populated regions usually have higher pedestrian traffic,

giving her trucks a constant flow of prospective consumers.

Although there is competition in both Yaletown and Gastown, Yaletown has

significantly more enormous sales potential. The greater population density and the lack of

rivalry in Yaletown are expected to contribute to the projected 300-unit sales, or eight

hundred dollars in total sales. Due to greater competition and a lower population density,

Gastown is launched to have 150 units sold, transforming into $1350 for all sales.

Furthermore, cost analysis shows that while location-specific variations in variable

fuel costs may occur, fixed costs—like permits and first truck purchases—remain constant

throughout these active neighbourhoods. Thus, it is recommended that Susan looks into the

possibility of setting up a shop in Yaletown, taking benefit of the area's high population

density and potential for sales, all the while keeping her presence in downtown Vancouver.

She can market her food trucks as a popular option among the varied clientele in Yaletown
and profit from the vibrant environment and constant flow of prospective clients by providing

distinctive menu items and exceptional customer service.

References

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Areavibes. (2021a). Downtown Vancouver, Vancouver, BC Area Guide. Downtown

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