Assignment – II

ENTREPRENEURSHIP DEVELOPMENT
AND SMALL SCALE BUSINESS

Feasibility Study
FOOD TRUCK

Submitted to, Submitted by,

Mrs. K. Vijayalakshmi, M. Iswaria – 18bbae013
Department of business administration K.R. Nandhinimai –18bbae030
N. Umayal – 18bbae060
P. Devipriya – 18bbae009
M. Shalini Padhma – 18bbae047

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[Link] TABLE OF CONTENTS PAGE NO.

1 INTRODUCTION 3

2 PROBLEM STATEMENT AND IDEA 3

SUMMARY

3 MARKET OVERVIEW 7

4 COMPETITIVE LANDSCAPE 8

5 MARKETING STRATEGY 11

6 EXPANSION STRATEGY 16

7 FINANCIAL FEASIBILITY 17

8 CONCLUSION 22

9 OUR BUSINESS GALLERY 23

10 REFERENCES 25

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Introduction :
We would love to introduce a change in food serving business in Madurai
which brings us to the idea of starting a food truck business. Business plans are
considered as an important step for starting a business especially for entrepreneurs
because it helps to decide a detailed description of what is the mission? What
objectives are to be achieved? Is it feasible? and many other details required for
planning towards the effective functioning of the business and it also helps us to track
the progression from the beginning and helps the business to grow. This assignment
showcases our business plan formulated for our food truck restaurant business.

Problem statement:
In this fast food industry maintaining an efficient standard operations
and keeping up the quality of the product and service is a challenge. However,
concerning the traditional way of ordering food there are some issues. The major
issues are list down below:
Verbal Communications between order taker/cashier and Customers:
During busy hours’ verbal communications between the two parties are
prone to errors. It may lead to backed up. Normally food truck may not have the
systematic way to approach the cashier. We are servicing on the bases of first come
first serve. Sometimes it will lead to disappointments among customers.
Miscommunication is a common problem that every food truck face. If the customers
do not speak the native language the problem is even worse.
Food Customization:
Since Burger King launched the HAVE IT YOUR WAY Campaign the
ability to customize food has been a crucial business strategy in the fast-food industry.
Customization is necessary for Customers who are allergic to certain ingredients will
customize their product and customization is very flexible in nature customers who
have special request to add or less some items in their product. Currently, the
cashiers or the order taking person needs to handle these requests quickly because of
that the task becomes difficult since the existing system does not support any means of
recording such requests. The result is that the requests are forgotten or
miscommunicated to the cook.

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Trend change in people preferences:
Today’s fierce fast-food industry motivates each restaurant to launch
new items on their menus on a more frequent basis. Promoting new dishes every week
is difficult. The menu is precis however nowadays technology ruling this world at any
moment any food may become famous adjusting and accepting to those trending
dishes is quite difficult.

Idea summary:
We believe that in future if we gain more customer we might face
these problems. For that we have some sort of solutions to prevent the above mention
problems. A restaurant menu ordering system might be the solution for these
problems. This system will minimize the verbal communications between the
customer and order taking person, thereby reduce the stresses due to
miscommunication and backed up problems. It should have a more appealing menu
and display an accommodate food customizing.
For example, on a web interface the ordering system can be
implemented, the software allows customers to order from home before prior to their
arrivals to the designated food truck location. By the help of these software’s or
systems we can prevent those verbal communication problems and customization
problems. It also time consuming. These ordering systems also plays as data recorder
it records data automatically (how orders are done today? How much we have made
today?) that information’s also provided by these systems. Trend change in people
preferences this is one of the common and major problem facing by food sector. By
utilizing the online resources, we can makeup our knowledge in trending dishes or
popular dishes up-to-date. Otherwise instead of following these medias if we made a
benchmark over food industry in Madurai we can launch or create our own
innovative food recipes.

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Executive summary:

Bunker’s delight is a locally owned Indian based Fast-food mobile

restaurant that offers recipe with the touch of Indo-Western taste. Bunkers delight will
be a member managed Limited Liability Company organized in Madurai and the
business is operated out on a custom-built food truck. Head Chef Devi Priya P. and
Nandhinimai K.R. along with Iswaria M., Shalini Padhma M. and Umayal N. are the
owner-operators and also will be sharing the responsibilities of day to day operations.
Our main objective is to establish the outlet in and around the crowded areas of
Madurai.

Bunkers delight will attract youngsters to bring their family and friends to
have a lip smacking on the go foods with our innovative food recipes and friendly
environment with a wide range of varieties to pick.

Mission statement:

Our main goal is to provide people of Madurai with an out of the world
tasty recipes inspired with Indo-Western experience. Bunkers delight maintains a
simple philosophy serve only the highest quality product, prepare it in a clean and
sparkling environment, and serve it in a warm and friendly manner.

Objectives:

➢ To establish our fast-food outlet as a successful fast- food mobile

restaurant and gain a market share in Tamil Nadu.
➢ To make Bunker’s delight a destination spot for youngsters.
➢ To expand our outlet in two years to other districts such as
Coimbatore, Chennai, Trichy etc.

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Company overview:

Bunkers delight will be a food truck operating in the heart areas of

Madurai, serving our customers with speed and a smile. We will use fresh ingredients
wit and make tasty customizations to our recipes using a “Secret menu” making the
customers more satisfied bringing satiety. We will ensure that the customers are
informed about the key ingredients in our foods so that they can be aware of our food
quality, allowing them to make conscious choices.

Location:

Our locations are mainly in three areas of Madurai operated in different

timings with a time span of three hours per place and will be shifted to another
location after the time limit. Locations are outside MGR Bus stand, Rajaji park road
and North masi street.

Product:

Bunkers delight menu features five delightful items – Tacos, Burger,

Sandwiches, Pasta, fries all using quality food items and our customers are free to
customize how their meal is prepared (“Secret menu” options). In addition to this we
will also sell different kind of beverages. Bunkers delight does not use heat lamps
putting customers safety first.

Sourcing:

Fresh chicken, fish, potatoes and other ingredients are hand-picked by

ourselves and will be purchased from the market on a regular basis according to our
change in locations.

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Management plan:

Bunkers delight will be formed as a member-managed Limited Liability

Company within Madurai city. Member-ownership and responsibilities will rest with
Devi Priya P., Iswaria M., Nandhinimai K.R., Shalini Padhma M. and Umayal N.
They are pursuing their Business degree from one of the reputed college in Madurai
city Lady Doak College.

Market overview summary:

Indian fast-food market is expected grow to at an compound annual
market growth rate (CAGR) of 18% by the end of 2020 according to a study. This
increase in consumption rate is due to change in consumer behavior, lifestyle and
demography. On an average it is measured that Indians spend 28% of income on food
than others activities. So the market rate for food industries are said to be increasing.

Market segmentation:

We are targeting kids and youngsters of Madurai as our primary market.

Rajaji park road, MGR Bus stand and North masi street are preferred by youngsters to
hangout after school or college. They tend to flock to fast-food stalls in these areas and
always prefer to take food out because of their busy activities.

Our secondary market segment would be “Working Madurians”, these

three areas are always crowded because shoppers and job seekers are always found to
be roaming out there.

Lastly, we would concentrate on tourists. These three areas will always

be flooded with tourists especially in north masi street to visit temple and purchase
etc., who would prefer to take quick bite on their way.

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Target market segment strategy:

Bunkers’s delight tend to cater the need of the teenagers and youngsters
in Madurai. We have chosen this group for several important reasons. Our main goal
is to be “No 1 fast-food place” in Madurai. This category people fall on the age of 14
to 25 where our brand building efforts could take place and they tend to seek
value/price relationship which will not stretch their budget.

Our secondary target would be people of age group 26 to 38, because they
are more flexible in their budgets in comparision to other groups.

Lastly, we want to keep our price fair so that all people will find it easy to
afford and we make sure to offer fair pricing without compromising in our quality to
keep us in competition with other fast-food outlets .

Competitive Landscape :
Competition:

Other Fast-food providers who provide similar varieties in Madurai are our direct
competitors. When it comes to Fast-food we consider Puppy’s, creamy-cakes, KFC,
Le wrap factory etc., as our competitors. However none of these Fast-food places are
food truck incorporated or mobile cuisine inc, which is a plus for our business.

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SWOT Analysis :

Strengths:
• High barriers to entry
As competitors would only focus on starting a restaurant or other small
hotels if they have enough funds they wouldn’t think of starting a food truck because of
the high risks and funds involved in maintaining a food truck business.
• Constant innovation
We would focus more on innovating new food items with variety of
flavours and attractive presentation which would stimulate curiosity among the
customers whenever they visit us and makes us unforgettable.
• Location flexibility
Since we operate on a moving vehicle it facilitates our operation to be
carried out easily in various locations at its peak hours which leads to high sales and
revenue.
• Lack of overcrowded competition
Starting a food truck business doesn’t have much competitors like a
restaurant business does. Hence lack of competition becomes our strength.
• Ability to create high brand recognition
Since we are one among the first to start a food truck business in
Madurai, the public could easily recognise our brand.

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Weakness:
• Takes a long time for people to adapt
Since a food truck business in not very well known by the people, it could
create a sense of fear that it is not a genuine business. So it could take some time for the
people to adapt and build trust over us and the food we provide.
• High transportation costs
Managing and running a food truck business involves high transportation
costs which becomes our weakness.
• No sitting area
The absence of sitting area could frustrate the customers and lead the
customers to prefer other restaurants. Hence this becomes our weakness.
• Limited funds
The availability of only limited funds becomes a great obstacle in running
a food truck business which would constantly require more funds to operate efficiently.
• Health and Hygiene
Food trucks usually operate (cooking and selling) in very small areas.
Business owners must be very mindful of kitchen hygiene, air pollution levels, and food
waste management. Or else it would create a bad impact on customer’s opinion.

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Opportunities:
• High opportunities for expanding the business further
Since food trucks create more revenue and lack of direct competitors it
creates the opportunity of expanding the business further which ultimately leads to
higher brand recognition.
• Can have collaboration with local clubs
Unlike restaurants food truck business could easily collaborate with the
local parties or clubs to create high revenue.
• Location Flexibility :
Not being tied to a specific location gives us an opportunity to grow our
business to the level we want it to.
• Ability to cater :
Opportunity to start catering for various events like birthday parties, wedding
parties etc., which creates additional revenue
• Ability to reach out to the customers :
Opportunity to use social media and the web to develop pages on Twitter,
Facebook, twitter and Instagram to reach out to our target market more efficiently

Threats :
• Lack of experience in managing a food truck
Since we would be one among the first people to run a food truck business in
Madurai, there is no enough opportunity to gain knowledge about managing a food
truck.
• High importance should be given for maintenance of hygiene
Lack of maintenance of hygiene would become the biggest threat since
people could see every operation with their own eyes. It becomes mandatory to always
keep every nook and corner perfectly clean.

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 • Vehicular traffic during peak hours
Vehicular traffic during peak hours could hinder us from reaching our
destination on the right time which leads to reduced sales.

Marketing strategy :

1. Create a solid, memorable experience

Bunker’s Delight uses funky logo to visually attract youngsters with
individual branding and unique food offering. It will create strong impact on our
customers mind, through that we not only retain our customers but also attract new
customers through word of mouth by existing customer. It helps in increasing our sales.

2. Something different from others

We are providing new and special dishes with personal customization

which is not provided by our competitors. This not only increases our sales but also
tempt people who love on the go foods.

3. Mobile ordering and payment

We take delivery through mobile ordering, provide facility to make
online payment and also create website for our Bunker‘s Delight this helps the
customers to save time who are always in a run.

4. Seasonal changes and add ons

We provide seasonal foods according to availability of resources and
also provide foods according to the customers need. It create good impact among the
customers and also offer various varieties to choose upon.

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 5. Partner with other local business
Our company will have partnership with other nearby businesses and will
be taking regular order through that. It help us to gain more customer through partnering
and offer lunch time special menus.

6. Cater wedding, parties, and office events

Bunker’s Delight take bulk orders and also provide catering services for
wedding, parties, events etc., in affordable price.

7. Grow our social media presence

We will create Facebook page, Instagram account for our Bunker’s
Delight food truck, from which we will be updating our location status and will also use
those media’s to promote our brand and connect with customers.

7P’s of marketing in Bunker’s delight

Product:

Since we belong to food industry our core product is “food”. We mainly

focus on four attributes that are presentation, variety, ingredient and quality. We
contrive to serve fast food items because in Madurai fast foods are mainly available in
malls or restaurants. So we have planned to launch fast food items in food truck. The
concept of mobile cuisine is totally new to Madurai people. Bunker’s delight products
are Tacos, burgers, sandwich, pasta, fries, beverages. With number of varieties. In
order to get more customers, we have appended a secret menu it consist of fitness
edition, stuff choice, meat food style.

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Price:

Prices are focused to create sales volume rather than high profit –
margins. pricing is meant to be affordable to middle and working class consumers.
price range from Rs.60-Rs.200. 75% of our menu is priced between 100-150.

Place:

Bunker’s delight is normally placed near major road ways where people
can buy and stay for few minutes on road side. We have plotted some areas like
opposite of Lady doak college, outside, MGR Bus stand, Rajaji park road and
North masi street. etc. we have keen interest on participating at cultural events
(college or marriage functions etc.,) after pursuing the permission. For each and every
open day of Bunker’s delight we’ll be posting our location on Instagram, Facebook
and also other platform where we can interact with our customers directly.

Promotion:

All Bunker’s delight promotional efforts target younger audience and

focuses on Buzz marketing. Buzz marketing is the practice of creating an
excitement among the user and the consumers about a particular product or service,
brand or the company. Bunker’s delight devising to create awareness through
commercials and social media. Social media platforms which we are going to use are:
Instagram, Facebook, whatsapp status, Twitter, linkedln. Bunker’s delight planned
to do some commercial advertisement with local channels in Madurai. Example (
saghar, MK tv, U tv, kirishna channel etc.,).

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Process :

Food process :

The semi – cooked food will be prepared before service starts. It will be
fully cooked before being served. We will make sure every ingredient freshly
prepared.

Service process:

People:

Internal consumers:

Internal consumers of Bunker’s delight are two chefs before opening the
Bunker’s delight the chefs will be having experience in making the food, one driver
(licensed), two billing and order taking consumers. We work simultaneously
according to the work load.

External consumer:

Our target customers are students, office employees, event goers – sports,
music, cultural programs, street shoppers, personal and corporate events, weddings,
other events and popular hangout venues and spots, markets, car shows, night
markets, concert and food events.

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Expansion strategy of our business
1. By catering services

During off seasons we can provide catering services also. It is one of the best
way to keep our business in a profitable manner. Catering services is one way to ensure
the products and services stay on customers radar’s.

2. Expand into second location

We would also expand our business in another location, where there is more
demand for our services.

3. Good quality of foods and services

Although we have food truck in another location the quality should be

maintained same at everywhere. It will also build trust among the customers and it
attracts them.

4. Get more clients

Social media is a perfect place to interact with client. We would create a page
on instagram , facebook, twitter etc., and we can also check the reviews and feedback
and we can rectify our mistakes and we would know the customers demand.

5. Get another food truck

We can also buy a new food truck to expand our business. Before we buy a
new food truck we would make a perfect plan for it.

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Financial Feasibility :
There are a many resource needs which contributes to the high startup costs
of a food truck business. At the very least we will need the following

❖ Food truck
❖ Kitchen equipment
❖ Generator

Considering all these needs in mind we have estimated our total cost to be
around 10 lakhs which is shown elaborately in the budget projection.

Budget allocation for the food truck

Criteria Amount

Food truck vehicle (second hand) 4 to 5 lakhs

Equipment (cooking vessels, stove, table, 1 lakhs

chairs, fryer, flat top, griller, knifes, cutlery
etc.)

Raw materials ( materials to prepare meals) 20 to 30 k

Piece of technology ( customer relationship 25 to 30 k

management, analytics and inventory)

Marketing (advertising. Promotion) 20 k

Licenses and permits required for starting a 50 k

food truck

Staff uniform 5 to 6k

Food truck parking 4 to 5 k

Insurance 2 to 4 k

Total Approximately 9 to 10 lakhs

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Resource Requirements :

Resource Category Sub category Resources

• Griddle or flat top grill
Cooking Equipments • Microwave
• Toaster
• fryer
• Stainless steel work table
• Cutting boards

• Knives and knife rack

• Skillets / frying pans
Food Preparation
• Sauce pans
Product resources Equipments
• Turners
• Blender or food
processor
• Multi purpose cutter
• Squeeze bottles
• Sugar, spice or cheese
shakers
• Paper dinnerware
• Paper cups
Serving equipments and
• Takeout containers
disposables
• Paper napkins
• Order Forms
• Disposable gloves
• Aluminium and paper
wraps

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 • Three compartment sink
• Floor mats

Product resources • Sanitizing chemicals

Janitorial equipment • Scrubbers and sponges
• Trash cans and liners
• Broom and dustpan
• Employee Identification
Number
• Business license
• Vehicle license
• Seller’s permit
Legal Requirements • Food handler’s permit
• Health department permit
• FSSAI Mobile vendor’s
License
• Kitchen insurance

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Sales Forecasting :
The following sales forecasting has been done only through market assumptions.

Food Truck Revenue Projection

Daily Per year Year 1 Year 2 Year 3 Year 4 Year 5
(Approx.)

Customers
Footfall 1.0% 1.2% 1.3% 1.5% 1.8%
7,000
Number of 70 84 91 105 126
customers per
day

Meals
Number of 90% 63 76 82 95 113
meals
Average meal 104.00 104.00 104.30 104.55 105.00
price
Meals revenue 6,552 7,862 8,542 9,880 11,907

Drinks
Number of 70% 49 59 64 74 88
drinks
Average 120.00 120.33 120.55 120.70 121.00
drinks price
Drinks 5,880 7,075 7,679 8,871 10,672
revenue

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Revenue per 12,432 14,938 16,221 18,751 22,579
day

Annual Year 1 Year 2 Year 3 Year 4 Year 5

Days open 260 280 290 300 310

Daily Operations

Meals 1,703,520 2,201,472 2,477,229 2,963,993 3,691,170

Drinks 1,528,800 1,981,113 2,226,920 2,661,435 3,308,382
Revenue from 3,232,320 4,182,585 4,704,149 5,625,428 6,999,552
daily
operations

Catering
Number of 12 24 36 48 60
catering
functions

Average 10,000.00 10,000.00 11,000.00 12,000.00 13,000.00

function price

Revenue from 120,000 240,000 396,000 576,000 780,000

catering

Total revenue 3,352,320 4,422,585 5,100,149 6,201,428 7,779,552

for the year

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Conclusion :

From this assignment we could understand that running and managing a food
truck requires careful planning and innovation. There are tons of legal and commercial
requirements which has to be met and decisions to be weighed to make the business a
great success. In total, from this assignment we have learnt that business plan is like a
roadmap to entrepreneurs and without a proper plan we will lose our direction to
success.

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Our Business Gallery :

Our Menu- Page 1

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Our Menu – Page 2 :

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Our Logo :

References :

1. [Link]
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2. [Link]
industry-63452
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[Link]

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15.[Link]
sale-hyderabad/p/341078801
16.[Link]
17.[Link]
truck-business/
18.[Link]
48bb4eb9c56b

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