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  • Subject area(s): Marketing
  • Price: Free download
  • Published on: 14th September 2019
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  • Number of pages: 2

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Instagram is a platform that can usually share photos and videos with people around the world. It is even more attractive for social marketers because users can edit and filter photos and videos and advertise more than 50 million images and videos a day. More than 20 billion photos have been shared so far and an average of 60 million photos are uploaded daily, according to Instagram.

YouTube is a video sharing website used by more than 1 billion users. YouTube is a platform that allows users to communicate with people of the same interest because it allows them to find videos that they like. So you can target people who watch videos and focus on marketing.

Twitter is one of the largest social networks in the world. The U.S. has 67 million Twitter users, with more than 336 million active users worldwide as of the first quarter of 2018. It is one of the largest social networks in the world.

Marketing customers

According to a survey by the National Restaurant Association, consumers aged 18 to 34 were most likely to buy meals from food trucks, followed by 54 percent of restaurants aged 35 to 44 years old. Only 30 percent of respondents over the age of 65 visited one. However, older customers are much more likely to visit their favorite restaurant's food trucks, and 53 percent said they would regularly use their favorite restaurant's food trucks.

Competitors

Increased food truck business is expected to drive the company in a competitive environment. In order to compete with the existing food trucks in California, broaden hands will need to establish a unique and differentiated strategy. Broaden hands is expected to be part of several competing areas, along with other existing food trucks as well as the Korean town in LA.

Indirect competitors

Broaden hands will compete with Korean-town restaurants as well as other Asian restaurants like Japanese and chinese restaurants. Also, food trucks can be reduced in sales due to the stereotype that they are more hygienic and unreliable than other restaurants. not everyone enjoys eating food trucks. Those can be a source of competition with restaurants.

Direct competitors

In addition to restaurants, the company will compete with other food trucks that offer unique options. Food trucks installed in downtown areas include Japanese hotdog trucks 'Dogzilla', Korean-style fusion barbecue 'Danchow' taco, Indian food 'India Jones Chow', ice cream sandwiches 'CoolHaus Food'.  

Broaden hand will advertise clean, healthy, and available services to all customers to fight all these competing types. We will not only deliver quantity and passion, but also provide excellent quality such as restaurants.

3. Operational Plan

Food trucks will need two full-time workers for kitchens and customer service departments. The kitchen workers will take care of all the kitchen work. Their duties include buying food and equipment, preparing food, and plating. Similarly, the customer service sector is responsible for service, billing and payment, communications and marketing, and support for kitchen staff. However, some tasks will be shared, and it also requires the two employees to perform tasks such as planning, cleaning, driving, and updating social media. Also, if necessary, one or two part-time employees will be employed to support both departments.

We will prepare the rice or seasoning for the burger in advance in the rented kitchen. So all we have to do in a food truck is just to wrap it up when we get a receive an order. Only the last part - the addition of sauce and ingredients - will be done later to maintain taste and freshness. In addition, we plan to operate the 14-22 Raptors over the weekend. But we will also consider events, festivals and other special days in the city. Therefore, time and place can vary depending on the festival, event or special day.

    The United States has a minimum wage system, so each worker gets $7.25 an hour.

There will also be incentives and bonus programs depending on the performance and income of food trucks. And the general task of preparing and plating food and equipment for additional kitchen purchases, as well as providing social media customer services to help kitchen workers to pay for extra hours and Sundays, and performing billing and payment, communications and marketing will be done in accordance with the Labor standards Act.

SWOT

Premises and equipment

Based on current menu, food truck will require following main equipment’s.

truck

   refrigeration units, steam table, and warming oven

   Rice cooker

    soap and paper towels

    signage

    induction burner  

    sink

   florescent light

Payment reception process for our products or services

Cash and credit cards can be accepted.

Visa card

A visa is a credit card recognized worldwide by more than 8 million merchants and 333 million cardholders. Visa offers a variety of benefits to users not only in the U.S. but all over the world. Mobile cardholders are likely to save their precious time and shop online using a Visa credit card.

Mastercard

The second most widely used MasterCard in the U.S. offers benefits such as easy payment and privacy using chip technology. MasterCard currently has 1.9 million shares and deals with more than 210 countries and over 150 currencies.

Legal requirements for this type of business

Approved application documents from local government

Food safety training certificate

Current DMV registration

Valid drivers license

Seller’s permit

Citizenship

Employer Identification Number

Business License

Fire Certificates

Food Handler’s Permit

Insurance needs

Commercial Vehicle Insurance

Workers Compensation

Business License

Property Insurance

General Liability Insurance

People

Job listing of main positions needed

Food truck service window attendants.

Mobile food business managers.

Chef and cooks for your food truck.

Food truck kitchen workers.

The food truck's driver.

Requirements for each job

Because the service window crew in front of the house takes orders from customers and serves food and drinks, they should show customers a professional, polite and trustworthy attitude. These employees should be familiar with menus, including how food is prepared and cooked and delivered to customers, how our products taste, and whether to allow special orders.

The chef is responsible for everything that happens in the truck's kitchen and the commercial kitchen. Cooks are required to participate in the hiring and training process of a part-time job with chefs, who are responsible for the menu and purchase the necessary supplies and equipment. The chef needs a cooking certificate. On the contrary, the cook does not require. Our food truck will consist of one cook and the rest of the kitchen staff (the cook) and part-time jobs.

Kitchen workers must replace used pots, pans, and tools at least three times a day, clean trucks before work, and keep kitchen equipment clean. It can also require them to dispose of the garbage and move pre-prepared food to the truck, unload the truck every night, and wash it when you transport it into the kitchen at night.

Depending on the size of the food truck and the state's requirements for driving the car, we may have to hire a truck driver with a driver's license (unless the chef or cook has a driver's license). Before purchasing a truck, these requirements are checked to determine whether the driver should be hired separately or if an employee is required to obtain a commercial driving license.

Finances

Outline of initial investment which will be required for food truck, with a likely cost

 According to the authors calculation the initial investment to run food truck business is 83260 $. There are many expenditures for operating but the biggest expenditure is a truck and equipment required kitchen machineries.

We will buy the truck on online, E-bay, at the lower cost than others. The truck is also required expenses like insurance, shipping and handling. However, those expenditures are not considered and calculated in start-up cost. Therefore, the total expenditures for start-up investment might be increased a little in practical world.

Expenditure requirements Food truck 80000$

Kitchen tools and equipment`s 2200$

POS system 60$

iPad and screens 1000 1000$

Required initial investment 83260$

Income forecast

Food truck will operate 26 days in a month and 12 months in a year. During winter, food truck will be in operation even if people prefer dining indoor and it will be tricky to work in low temperature because California is warm in winter season. However, private booking of food truck will be accepted and we will join in events as well.  

   We are expecting a conservative 5% increase in sales revenues annually over the  next 3 years. The growth is adjusted for inflation.  With the addition of catering revenues, sales will increase by 12.93% in Year 2 and 6.02% in Year 3.

The following table shows expected Sales Forecast for the next 3 years:

Income forecast

Menu Price ($)

Average daily scales Amount

Monthly income (26 days) A year income

Chill chichen 5$ 5 25$ 650$ 7800$

Bulgogi 5.5$ 10 55$ 1430$ 17,160$

Cheese Dduckgalbi 5$ 7 35$ 910$ 10920$

Ham and cheese 4.5$ 5 22.5$ 585$ 7020$

Kimchi bulgogi 6$ 6 36$ 936$ 11232$

Korean barbecue 5.5$ 15 82.5$ 2145$ 25740$

+ fried egg 0.5$ 4 2$ 52$ 624$

+ spicy sauce 0.5$ 3 1.5$ 39$ 468$

+ Korean nuclear sauce 0.5$ 2 1$ 26$ 312$

+big size 1$ 6 6$ 156$ 1872$

Cola 1$ 3 3$ 78$ 936$

Sprite 1$ 3 3$ 78$ 936$

Water 1$ 2 2$ 52$ 624$

Total 274.5 7085$ 85,644$

Business and Legal Risks

Main risks

Operating only at fixed times and in designated locations

reducing margins due to saturation market conditions.

    Truck food performance issues

Weather conditions,

Changing our locations

Strick regulations

Suggested management methods for these

1. Efficient inventory management

    - Need to reduce food waste and corruption in order to reduce costs and maximize profits

2. High accessibility to major markets

    - To secure potential customers, the location of food trucks should be located in areas where there are many people and convenient transportation.

3.  Licensing

    - To ensure continued operation of food trucks, licenses required by the local area must be obtained and renewed annually

  4. Effective quality management

    - It is important for food truck companies to maintain and manage quality standards in order to provide customers with high quality food and not to be caught violating regulations

  5.  Unique and differentiated menu

    - As competition is intensifying, food truck companies are required to select a clear target market and develop differentiated menus.

 6.  Appropriate utilization of social media

    - More and more people are using Facebook, Twitter, and Instagram as promotional tools. Promote the product by posting the location of food trucks and special offers by date.

People and Organization partnership networks with the firm’s environment (if any)

Currently, there is an association that supports food trucks even though there is no support from the U.S. government such as the Food Truckers Association in New York, the Philly Mobile Food Association, and the Dalishha Food Trucks Association. These associations are continuing to work with the government to make food truckers more competitive.

The company, Kitchen To Go, provides food truckers with a service to meet their restricted weight and safety standards.

POS companies such as Square and Bradcruth offer services that allow sellers to make payments through iOS, Android and tablet PCs.

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