1. List and briefly describe the advantages and disadvantages inherent to the food truck business model and as compared to traditional restaurants.
Food trucks have exploded into mainstream American cuisine. Once thought of as a cheap meal available at odd times of the night, street food has become a vehicle for chefs on the rise to make their mark on the food industry. Operating a food truck may seem like an easy task, but it can turn out to be a tremendous undertaking and risky financial venture. Operators must be prepared to lose money, to manage fixed costs, and to do constant forecasting in order to determine how much food to prepare. The advantages and disadvantages are numerous, but we will proceed to name a few.
Food trucks
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Food truck operators also hire smaller staffs, and are less exposed to risk.
Disadvantages include the mere appearance of reduced responsibility to its customers. As written in The Economist’s article “Moveable Feasts; Food Trucks,” “…businesses that sell food are suspect. And what could be more suspicious than an outlet that sells food and then drives away before customers expire?” This may be a bit of a satirical take, but the sentiment of fear is real. While a restaurant would be punished with poor reviews and possibly a lawsuit following a case of food poisoning, a food truck is seen as operating with impunity. If confronted by dissatisfied customers, the operator will simply find a different locale. They are pejoratively referred to as “roach coaches,” echoing the sentiment that their offerings are of low quality, unsafe, and should not be consumed. Brick and mortar restaurants are subject to inspections that food trucks are not, bolstering the doubts of skeptical diners. According to The Economist, food truck operators are typically required to cook their food in inspected commercial kitchens (“Moveable Feasts”). This is an added operational cost, but it can possibly be mitigated by having the chef’s private cooking area inspected by the relevant authorities. As expected, food truck operators have triggered the ire of local restaurant owners with whom they directly compete. Local restaurateurs argue that, “food
Then they will prepare the food ready to cook it and will store the prepared ingredients safely at the correct temperature. They will then wait for the person at the end of the chain – the consumer – to come to the restaurant to cook it for them. This is good for the producer because money will track back to them through the restaurant gaining the money from selling the meals. The money goes into the restaurant from customers pockets, and then the restaurant will use a portion of this money to re-purchase some supplies from the producer. This is when a good working relationship will develop between them as they will gain more sales and earn more money back.
Question 3. TCO 4. Compare the management structure of a franchise casual restaurant to that of a privately owned and operated restaurant. Outline the reasons for the differences and discuss how one could organize the individual operations.
Imagine you are thinking of starting a restaurant in your community. Answer the following questions:
Many feel that the fast food industry is providing a valuable service by catering to consumer needs; that it is inexpensive and easily accessible. For people who don't have time to prepare meals, for households in which both parents work, there's no question it provides a service. But what is the true cost of this convenience? In the book, Fast Food Nation, Eric Schlosser reveals that the cost is the lives of the people who work in the meat processing plants. Meat packing is now the most dangerous job in the United States.
3. Describe Family Dollar’s competitive advantages and disadvantages with respect to competition from conventional supermarkets and box stores.
In most places in North America, folks are familiar with food trucks and have either seen them on television or in public areas attracting large crowds of hungry individuals. Most people would agree food trucks offer a variety of cuisines that can satisfy any appetite and if you have ever partaken with food trucks it was necessarily worth the wait to say the least! Marketing a business in the food truck industry can be a lucrative business as witnessed on the Food Network show “The Great Food Truck Race.” Viewers witnessed first-hand how each contestant marketed their business with custom truck logos, an assortment of entrees that catered to a plethora of cuisines like Italian, Filipino, American, etc. For the purpose of this paper, I will outline my marketing plan regarding starting my own food truck business and will address key factors such as brand name, type of food served with menu choices, budget, and location. This will be used in conjunction to formulate a complete analysis in line with objectives for my business.
Food truck space is limited, so the types of equipment available to produce the foods for the customers must be resourceful. The same goes for the number of employees, 2 to three employees will be allowed at any given time. They will have assigned tasks depending on time constraints and amount of people ordering.
Our main prospect for growth is to expand operations by opening a brick and mortar establishment, which is our current main priority and goal. A brick and mortar establishment would allow us to remove these constraints and allow us to grow exponentially. If we have already accomplished so much by only being out selling three nights per week and on Food Truck Fridays, it should not be hard to imagine the success we could possess by having a retail location. By having this retail location with seating area, we can have fixed operating hours every day. Customers can also enjoy their meal inside without any concern of how the weather is outside. In addition, we would have a bigger kitchen area to have much more food preparations that will enable us to serve more
It is important to recognize that there are no one size fits all prescription for how best to incorporate food trucks into the fabric of a community. Many characteristics contribute to the complexity and vibrancy of a city, including political climate, state laws, demographics, and the existing restaurant industry. With this in mind, the recommendations included here are intended to be flexible enough to accommodate different circumstances, but logical enough to provide useful guidance. They can serve as a road map that will help cities establish a regulatory framework best suited to their unique circumstances and that takes into account the whole spectrum of stakeholder needs and concerns. Over and above, the truck food business is the way to go, if you don’t want to bother yourself with the cost of securing a location to build a restaurant, as well as if you want to make fast money from the restaurant food
This paper will focus on the second phase of a business plan for The Fox Den Food Park. The business proposal is to provide a permanent central location for gourmet food trucks to be able to rely upon. A consistent location helps the food truck vendors establish a strong customer base and set a specific schedule to let their customers know when and where they will be located. Marketing Strategy
A food truck is like restaurant on wheels. It has several distinct advantages over a traditional eat-in restaurant. A food truck can go to where the customers are. It has pretty low overhead, compared to a restaurant, and requires far less staff. However a food truck is still a business that requires a lot of work and attention- especially in the first couple of years. Food truck owners put in long days and have similar problems as restaurant owners, such as slow seasons, bad weather, and sluggish economy. Read on to find out how you can start your own food truck business.
If we look at the fast food industry today there is room for success. Based on RNCOS’ new US Fast Food Market Outlook 2010, fast food industry growth rate is strong. Especially, hamburger sales growth is reported at the healthy rate of 4.6% in 2008. The market is expected to grow to cross the $170 billion marks by 2010.It is believed that due to the economic meltdown, fast food industry is benefiting from people being more prices conscious. People who were enjoying nice means at fancier restaurants are now turning their choice of means to more economical ways.
Before having this food truck, the owner said that the food trucks he saw were all selling heavy meal such as spicy food from south America, fast food like hot dogs, burgers and kabobs.
Q1.1 IDENTIFY TYPES OF BUSINESS FRANCHISES AND DIFFERENTIATE KEY FACTORS. RESEARCH AND PROVIDE EXISTING OF EACH TYPE IN RELATION TO EXISTING FRANCHISE BUSINESS OPERATION. FRANCHISE TYPES MUST INCLUDE THE FOLLOWING:
The paper presents an analysis of the different factors influencing the restaurant industry and how these factors increase or decrease the demand for such services. The hypothesis that will be examined is that the performance of restaurants is mostly based on the type of food chosen by customers when they decide to go out for dinner, lunch, breakfast, or simply for a snack. What type of food refers mainly the nationality or concept of the food, (traditional American, Italian, Indian, Latin, or from any other type of culture). This factor is important because when customers go out to for dinner; they decide what to eat before deciding where to eat. That is why this factor is considerably important according to the hypothesis.