Feasibility Study: Food Truck Service in Davao City PDF

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Summary

This document focuses on determining if food truck business in this time of pandemic is profitable. The feasibility study also, aims to determine if the business is feasible....

Description

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SAMPLE ONLY DO NOT COPY

Executive Summary

The Food Truck Market will be known to the public for it will sale an affordable and good quality raw products like chicken, meat, rice, vegetable and fruits. The food truck market is a license seller of a good quality raw product service that will roam around the areas of Matina Crossing and Matina Aplaya, who are the residence of the area will be our Target Market. The price will be “gaan sa bulsa” and will surely a good quality. The food truck market will operate at 5:00 AM – 11:00 AM and will resume at 3:00 PM – 7:00 PM Mondays - Sundays. Our employee are fully knowledgeable about their duty and responsibility. Since the food truck market will roam around, we will be observed proper health protocol thru government standard implemented. The food truck market will be easily accessible to the people. The Food Truck Market will have a big contribution to the socio-economic aspect namely customers, community, environment, employment and government. The said business will serve a good quality and affordable raw products that will be fit to the daily needs of the customers.

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Table of Contents Title Page

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Approval Sheet

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Acknowledgement

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Executive Summary

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Table of Contents

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List of Table List of Figure List of Schedule

CHAPTERS

1Marketing Aspect Product Description

1

Target Market

2

Area Coverage

2

Consumer/Customer

2

Potential Market

2

Total Potential Demand

3

Number of customers per kilo

3

Competitors Analysis

4

Pricing structure

4

Projected Sales

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Marketing Program/Strategies

5

Own Marketing/Program Strategies

6

Marketing Selling Expenses

7

Technical Aspect

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Technical Requirements

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Government Requirement

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Procedure

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Step by Step Service Procedure

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Production Schedule

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Labor Requirement

11

Machinery and Equipment Requirements

12

Raw Materials

12

Business schedule and location

13

Store lay-out

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Waste Proposal System

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Quality Control System

14

Organization and Management Aspect

16

Legal Forms of Business 16 Organizational Structure

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Qualification of Offices

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Machine Requirement

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Gantt Chart of Activities

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Financial Aspect Total Projected Cost

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Sources of Financing

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Financial Assumptions

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Financial Statement

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Projected Balance Sheet

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Income Statement

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Projected Cash Flow Statement

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Financial Analysis

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Profitability Ratio

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Liquidity Ratio

35

Solvency Ratio

35

Schedules

36

Socio-Economic Aspect

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Customers

40

Community

40

Employment

40

Environment

40

Contribution to the Government

41

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List of Tables Table 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

Page Potential Target Market Demand Analysis Supply Analysis Supplier/Competition Competitors Analysis Pricing Structure Projected Sales Marketing and Selling Expense Labor and Machine Requirements Production Schedule Machinery/Equipment Requirements Raw Materials Supplies Business Schedule and Location Qualification of Officers Machine Requirement Gantt charts of the Activities Total Projected Cost Sources of Financing Projected Balance Sheet Projected Income Statements Projected Cash Flow Payback Period Return on Investment Net Income/Profit to Sales Ratio Gross Profit Ratio Quick Ratio Debt to Total Asset Ratio Equity to Total Asset Ratio

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List of Figures Figure

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Procedure

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Step by Step Production

10

3

Store Location

13

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Store Layout

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Organizational Structure

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List of Schedules Schedule

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Customization

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Food Truck Equipment and Supplies

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3

Machinery and Equipment’s Requirements

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4

Marketing Selling Expenses

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Taxes and Licenses

38

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Utilities Expense

38

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SSS and PHILHEALTH

38

8

Salaries and Wages

38

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Contribution

38

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Projected Sales

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1 CHAPTER 1

Marketing Aspect Marketing is a very important aspect in business since it contributes greatly to the success of the organization, production and distribution depend largely on the marketing. In this chapter will focus on the market of our business. Will introduce our product and services, also to promote what kind of business we have into the market and encourage sales in the public. Since the goal of marketing is to make the product or service promote widely into the market to make it known and being recognized. Creativity and effective marketing strategy should be the focus of marketers. Marketing aspect is one of the most important chapter in feasibility study because without marketing, sales may crash and companies may have to close due to not having sales. In this chapter, you would be able to know how we decided to have this kind of business and how will make our marketing being strategized effectively. The success of business depends on how marketers introduce their product or service and promote it into the market. The fact that if the proposed product or service will be accepted by the target market, it is then a determining factor that this project can be implemented. Product Description Our Food Truck Market illustrates the idea of mobile food industry which is originated in America where the gourmet food truck industry exploded and growing. In America, the basis of their application for food truck market are Barbeque Food Truck, Fast Food, Fruits & Vegetable Seller, Halal Food, Ice Cream, and Snack Food. Thus, we choose the Fruits & Vegetable application because in this pandemic situation we are facing today, it is the convenient way for the people for not going outside and buy their raw foods in the market and expose to so many people they don’t know where they came from. Food Truck Market as of 2018 was increasing and the current size of the industry is growing especially today, we are facing this pandemic situation. This is the fastest and safest way to buy raw food like fruits and veggies without exposing yourself to so many people around you like in the market. The uniqueness of our Food Truck Market is that you can choose and mix a variety of raw foods in one kilo, like for example, you want a fish and veggie for one kilo together that other Food Truck Market doesn’t have. The Food Truck Market will simply drove by outside your house and you can just easily buy fresh fruits and veggies safely. We choose meat, chicken, fish, egg, rice, fruits and veggies as our product because this is the basic and important needs of the people to survive for this pandemic situation. Now, there are lots of Food Truck Market in the Philippines that some are open for 24 hours whether it is a Barbeque Food truck, Fast Food or a Snack Food. Thus, the reason of the researcher in conducting this feasibility study of Food Truck Market is to determine whether this

2 mobile food industry is the safest and convenient way of buying a raw food such as fruits and veggies during this pandemic situation, and we are also aiming for the people’s safety and providing them a fresh and healthy food in their home. Target Market A food truck is simply a truck serving food. With its inside turned into a kitchen and the road being its serving station. It moves from one district to another. And is a night-time favorite for many consumers who want the restaurant to come to them instead. Food truck owners can travel to many different locations and serve the Food they love to cook, and they can also serve whatever they want … whenever they want. This industry, believe it or not, is flooding with creativity, and a whole lot of happiness, freedom and people doing what they want to do for a living. Our target markets are people who lives in Brgy. Matina crossing and Brgy. Matina aplaya, According to Population Project by Region, Province, Cities, and Municipalities, 2019-2020 by Herdie Hizon a Supervising health program officer. 2019, Matina crossing has an estimated in people in 12,252. Brgy. Matina Aplaya has an estimated population of 33,384. Area Coverage If you put up a business it should have a standard to where you place your product to sell. And the Food Truck Market is located around Brgy. Matina Crossing & Brgy. Matina Aplaya, Davao City. The researchers choose this location to market the products because of the huge number of consumer and it is easy to drove by, there are residence live beside the streets, a huge subdivision/village and there are lots of motels/inn along the roads. Consumer/Customer Table 1 Potential Market Target Marketing (Residence of Brgy. Matina)

Estimated Population

Total Person Surveyed

Total Person response to Surveyed

Percentage

Matina Crossing Matina Aplaya Total

2,346 1,160 3,506

45 25 70

45/45 25/25 70/70

98% 96% 97%

Total Potential Markets Consumer/c ustomers 2,299 1,114 3,401

The researchers manage a survey in sequence to obtain the potential target market demand. The residence of Brgy. Matina Crossing and Brgy. Matina Aplaya are the target market of the FTM company that has an entire number of 2,041 consumers per week and a combined number of 5,237 per month and the whole number of consumers for direct competition per month is 3,401.

3 Table 2. Total Potential Demand of Residence in Brgy. Matina Crossing & Brgy. Matina Aplaya Total Potential Market

Consumption per/week

Once/week Twice/week Thrice/week

Number of persons wants to avail the product 42/70 18/70 10/70

% out of 70

60% 26% 14%

Total demand per week

Potential Market multiplied out of 70

3,401*.60 3,401*.26 3,401*.14

2,041*1 884*2 476*3

Total Demand

2,041 1,768 1,428 5,237

In the current time, especially now, during pandemic, food truck market selling a lot of goods is in demand because people nowadays during pandemic tend to have a lot of time staying at home to keep themselves safe. Food truck market is much convenient because we’re the one who will take the risk to travel in the area of Brgy. Matina Crossing and Brgy. Matina Aplaya to have them the opportunity to buy the goods they need without going anymore in the public market just to buy goods which is riskier for them. The table 2 focuses on the total potential demand of residence in Brgy. Matina Crossing and Brgy. Matina Aplaya area with the order of once, twice or thrice per week. The assigned researchers come up with the total demand in our area coverage of Brgy. Matina Crossing and Brgy. Matina Aplaya, Davao City. The above result shows that they want to avail per week. The total demand in Brgy. Matina Crossing is 2,618.5 while the total demand in Brgy. Matina Aplaya is 2,618.5. An overall total of 5,237. Table 3. Number of customers per kilo Kilo bought Times by customers Once 5kl 2,041 10kl Twice 5kl 1,768 10kl Thrice 5kl 1,428 10kl Total Demand

# of person who wants to avail the product 30/42 2,041*71%*1 12/42 2,041*29%*1 10/18 1,768*56%*2 8/18 1,768*44%*2 6/10 1,428*6%*3 4/10 1,428*4%*3

Total 1,449 592 1,980 1,556 2,570 1,714 9,861

This time, table 3 focuses on discussing the number of customers per order. We conducted a survey answered by the resident living or staying in Brgy. Matina Crossing and Brgy. Matina Applaya for us to be able to gather this data. We provide choices if how many customers who wants to buy in our food truck market. The results show that the total demand of number of customers who wants to buy is 9,861.

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Table 4. Competitors Analysis Competitors

Advantage

Disadvantage

A B C D

Mobility Fewer Expenses Full Creativity affordable

Limited Space Parking Truck Maintenance Licenses

Competitors A Mobile are private and relatively secure. Because of this they allow a more personalized approach. You can receive feedback instantly, leading to a valuable two-way conversation with your customers. Competitors B Food trucks are relatively less expensive to start. There aren’t any building regulations to adhere to or a dining room that you have to decorate and maintain. In all, it doesn’t require a lot of capital to launch a food truck business. Competitors C Food trucks can be creative in ways that traditional restaurants cannot. For example, food truck owners can change up their menu more often. They can try different pricing or marketing schemes. They can also move the entire business at a moment’s notice. Food trailers and trucks offer a great way to try out new designs, foods, and so much more. Competitors D had a very affordable and economical price and it is located near the food truck. Table 5. Pricing structure Product (Variety) Fish Chicken Meat Rice Vegetables Fruits Mix Variety

Whole price 200 150 200 50 80 130 100

The researchers gathered the data through survey for the pricing of the product. Base on the survey, the researcher concluded Food truck has an affordable price offered to the customers. Researchers well studied the prices of Food truck with the used of the combination of market-based prices from our competitors didn't offer expensive prices of their products and our target market are people who market so we decided that we have to lessen our selling price. With this customer can say that our Food truck is really affordable and economical for everyone.

5 Projected Sales

2.32% of 9,861 Meat Fish Chicken Rice Vegetables Fruits Mix Variety TOTAL

Product percentage of sales kilo percentage of product 49% 60% 30% 60% 68% 36% 26%

Item Sold 34 42 21 42 47 25 18 229

Price per kilo (Selling Price) 200 200 150 50 80 130 100

Weekly Monthly

6,800 8,400 3,150 2,100 3,760 3,250 1,800

27,200 33,600 12,600 8,400 15,040 13,000 7,200

Annually

326,400 403,200 151,200 100,800 180,480 156,000 84,400 1,402,480

Table 6 discusses about the sales of the Food Truck Market in weekly, monthly and annually basis. Out of 2.32 percent of the 9,861 answered, the FTM has 229 requests and gives 229 variety of products per day and each of the product has it possess arrange numbers per day, which can give us the over rate as we are able to see above. Food Truck Market meat has a weekly sale of 6,800 with a monthly of 27,200 and annually of 326,400. For the FTM fish, it has 8,400 sales per week, for the monthly sales it has 33,600 and 403,200 sales annually. The chicken has 3,150 sales per week, it has 12,600 monthly sales and 151,200 sales annually. The FTM rice has 2,100 weekly sales, 8,400 for monthly sales and 100,800 for the annual sales. For the FTM vegetables it has 3,760 weekly sales, 15,040 monthly sales and 180,480 for annual sales. FTM fruits has 3,250 sales per week, 13,000 monthly sales and 156,000 sales annually. For the especially offer of FTM the mix variety, it has 1,800 weekly sales, a monthly sale of 7,200 and 84,400 sales annually. The total sales of these seven varieties is 1,371,280. On the table 5, it shows that FTM mix variety has a least buyer followed by FTM rice which is the second lowest buyers and the highest number of potential buyers is the Fish. The people in Brgy. Matina were also willing to try our mix variety of products. Marketing Program/Strategies As an enterprise, Food Truck Market wishes to sell itself in which it's far located. The FTM might be executing a huge advertising approach. Not only for reputation or cognizance however additionally create an excellent client courting with our goal marketplace. The number one goal of this suggestion mobility marketplace enterprise is the houses of Brgy. Matina. There are plenty of people in there. Our client goals are the folks that stay withinside the location in which the proposed enterprise located. Matina is one of the developed regions with withinside the city. Many institutions and additionally

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residential location become built in that place. There are plenty of approaches of Marketing Strategy and income merchandising. Some enterprise will offer a discount. On the hole of Food Truck Market, we can offer promotions for the primary 20 clients in order that the client could have a concept of ways handy and secure to shop for in Food Truck Market. We can even offer promotional presents as souvenirs, for the tarpaulins and social media merchandising with the call of our enterprise indicated to our first 20 clients. This promotional approach can also additionally create an excellent call, popularity and client can deliver an excellent opinion as well. The different manner we are able to sell our enterprise is thru posting in social media so it is able to attain a few human beings and posting tarpaulins inside or close to the proposed enterprise vicinity in order that it is able to capture the eye of the clients who can also additionally by skip in the areas. it's miles a manner we are able to sell or introduce the goods to our clients in Matina area. For this strategy, we are able to sell this to our goal consumers. We can also additionally discover this one as a not unusual place manner however this isn't high-priced and its miles convenient manner for promotion. For those techniques we think, even though it is straightforward and pretty not unusual place on this manner we convince individuals who surpassed in the proposed enterprise vicinity. Own Marketing/Program Strategies Our marketing strategy is to ensure that our products will stay fresh and high quality. Offer an affordable price that will satisfy their choices and our product will be much cheaper compared to the other competitors. Direct marketing approach help the consumers to make decisions regarding which product to buy and its convenient for them since they will get the product directly to their home. It will also provide the consumer eagerness in purchasing our product since consumer these days are looking for alternat...