Pestle Analysis OF A FOOD Truck PDF

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Externals factors influencing the success of a food truck business....

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PEST ANALYSIS OF A FOOD TRUCK

Student’s Name Institution Course Professor Date

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PEST Analysis of a Food Truck The food industry business chosen is a food truck which provides food to the less privileged in the society by allowing them to pay what they can afford on meals. The food truck was opted as a way to reduce the overhead costs and operational costs that would come with opening a restaurant so as to sustain the business with the less money they make from providing food to the less privileged in the society. The less privileged who would benefit from this service includes the homeless and other people from poor neighborhoods who will be allowed to pay for what they can or even offer voluntary services to work at the food truck as a mode of payment for their meals. Therefore we will do a PESTLE analysis of the business which will involve an in-depth analysis of the business which will help us understand the macro environment that the business will operate in. Political Factor The politics of the American landscape are crucial in the success of a food truck or its failure. Depending on the foundations the business was established the government may impose regulations such as tax policies or trade tariffs on certain imported factors that may prove detrimental to the success of the business (The Food Room, 2016). In our food truck business all products will be procured locally directly from the farms hence no effect on trade tariffs that may be imposed on imported products. However despite been a non-profit food truck business we shall be inclined to adhere to the tax policies or licenses that come with operating the business which will add operational costs to the business which can be detrimental in the success of the nonprofit food truck due to its pay what you can pricing model. Also food truckers are sometimes mistook for drug traffickers, burglars, murderers or potential terrorists due to their

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straight up demeanor (King, 2018). Due to our business model targeting the less privileged in the society like the homeless and people from poor neighborhood the business can be mistaken as a forefront for illegal activities like drug trafficking which will put us at loggerheads with the authorities from time to time. Economic Factors Economic factors are all about the money as the overall economy has direct impact on the business both in the long term or short term (The Food Room, 2016). The food truck model we are establishing is mainly based on the hard economic times the people are facing due to the COVID-19 pandemic which has rendered many people jobless and homeless with no income to sustain themselves. Therefore the success of the business is based on the fact that we have a clear understanding on who our customers are and their ability to pay for the food ("How Food Truck Vendors Should React To Economic Ups and Downs," 2017). Hence the main economic factor that will affect our business is the money to sustain it due to our pay what you can price model where food sales will not be enough to sustain the business. Therefore to maintain the success of our business model we must stay innovative and continue looking for ways to sustain our business by lowering operational costs every time we can. Social Factors Although many food truck owners are mainly attributed to providing comfort foods for working people they have been known to offer support to people in times of peril. One example is Sean Gulliam a chef who operated in a Memphis food truck, who provided meals to federal families that were struggling due to the government shutdown (Maras, 2019). In our non-profit food truck the support of others in the society in terms of donations will vital in ensuring the

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success of the business. Hence there is need to sensitize the public on our intentions which will help us gain support in terms or donations and labor through volunteering which will help use lower the operations costs of the business which will be vital in its sustainability. Technological Factors The use of technology has been essential in helping businesses advertise themselves and lower the operational costs by using technology to reduce the number of employees. In the case of a food truck business the use of social media advertising can be helpful in raising awareness on the food truck’s business model which can help the business in raising capital through donations from people who are happy with our intentions of providing meals to the less fortunate in the society. Social media can also help us inform our customers of our location on a daily basis which will allow us to reach a many people as possible. Conclusion All the factors that will affect our non-profit food truck will be dependent on the the awareness of the people on our good intentions to help the homeless and less privileged in the society. This will help us gain support and help from the masses which will be vital in the success of our business.

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References How Food Truck Vendors Should React To Economic Ups and Downs. (2017, November 17). Retrieved from https://mobile-cuisine.com/business/food-truck-economic-ups-anddowns/ King, D. (2018, September 17). Big Government Takes a Bite Out of Food Trucks. Retrieved from https://www.theamericanconservative.com/articles/big-government-takes-a-biteoutof-food-trucks/ Maras, E. (2019, January 23). Food trucks pitch in to help federal government shutdown victims. www.foodtruckoperator.com. https://www.foodtruckoperator.com/blogs/food-truckspitch-in-to-help-federal-government-shutdown-victims/ The Food Room. (2016, August 15). The PESTEL analysis: A complete cheat sheet. Medium. https://medium.com/@the_food_room/the-pestel-analysis-a-complete-cheat-sheet4fccae0bff58...