Analysis of Lady on Wheels Company

Lady on Wheels Company is new and upscale food truck that will be focusing on the provision of organic, healthy and premium food as well as beverage products. The product line will efficiently fit with the nationwide healthy lifestyle trends complimented by the natural and low-fat foods. Lady on Wheels Company will be offering a menu that is full of appetizers, desserts, sandwiches, salads, entrees and soups. Additionally, the firm will provide tea, coffee and soft drinks. The customer focus will be on ladies with a median age of 26 years and should be residents within a 17-mile radius of Lady on Wheels food truck. This organization will require a starting capital of approximately $ 70,000.

Company overview

The purpose of operating the Lady on Wheels Company is to provide food for the targeted audience to enhance their lifestyle. The mobile restaurant will be well-equipped with all necessary gadgets to continuously gain a long-term in the industry. It is a thriving venture in the US, far cheaper to start and convenient to operate as opposed to those restaurants that have a fixed location. We aim at acquiring larger trucks that can conveniently carry the food as well as accommodating more clients to enhance the possibilities of earning more revenues and henceforth huge profits. Our truck will be better than competitors as it will be offering organic, healthy and premium food as well as beverage products.

Market analysis

Lady on Wheels will face will directly or indirectly face stiff competition from all the nearby foodservice providers that have been offering similar dining experiences. The competitors will comprise of other food trucks, supermarkets, bakeries and coffee shops together with retail restaurants. Food Truck industry statistics and trends indicate that vendors will continue thrilling in the next ten years as the targeted consumers will want to spend on pricier gourmet food options (Alfiero, Giudice & Bonadonna, 2017). There are higher expectations of an increment in the demand for higher-quality food, better presentation, a broad range of styles and tastes and lastly, more healthy menu options.

Products and services

`Lady on Wheels will sell freshly made appetizers, desserts, sandwiches, salads, entrees and soups, tea, coffee and other soft drinks. All these products will be prepared from locally sourced ingredients and will be branded as having a significant portion size, delicious taste and low prices.

Target market

Our company will target different customer segments including soccer and stay at home moms, local office workers, students, families and couples. Lady on wheels brand will pay significant attention to its unique value proposition of providing excellent customer services, offering organic and high-quality foods and convenient location that allows eat-in or the take-out options. Several promotional strategies will be applied.

Marketing and sales strategies

Direct mail will help blanket the neighborhoods surrounding our locations and thus providing general information on discounts and other inducements. Public relations will be by contacting local area newspapers and televisions to create awareness on the organization’s opening and its unique value proposition (Paternoster, Vanlanduit, Springael & Braet, 2017). Additionally, there will be advertising through local community events, ongoing customer communications via website and newsletters, free samples for the customer to taste the products and pre-opening events. Lady on Wheels will apply a moderate pricing strategy to allow customers gain a feeling that they are continuously receiving great value as they patronize the stores.

Business operations

The company will perform a broad range of functional roles. First, administrative consisting of sourcing and storing ingredients, and hiring of staff. Kitchen roles include food preparation and ongoing menu creation together with modification. Food truck and retail functions will encompass order taking and fulfillment, customer service and janitor.

Organization and management

The company is led by Hellen Joseph, who is the founder and has experience and skills in the food truck business. The co-founders, James William and Mitchell Stacy who are graduates will be tasked with overseeing the kitchen quality. There will need to hire additional personnel including four wait staff, three chefs and two sous chefs

Financial projections and funding

Lady on wheel’s revenues will be generated from the sale of the food products to targeted audiences. It will have a take-out, dine-in and delivery systems that will cater for the broader spectrum of the target market. Total funding required is $ 70,000 to launch this food truck business and will be needed in capital expenditures, marketing expenses, manpower costs and working capital. A summary f the financial forecast is as follows:

Menu items

% of utilization

Quantity

Average price point ($)

Direct costs

Breakfast

29

3.15

8.11

17%

Lunch

23

3.15

8.00

18%

Snacks

11

3.15

9.32

26%

Dinner

37

1.25

18.56

39%

Estimated revenue for the first year is $ 123,000, and we anticipate for an increment of over $ 230,000. We will obtain a loan of $ 50,000 from one of the commercial banks, and the remainder will be contributed proportionately by the company owners.

Growth and development

The strategies for future enhancement include a memorable and solid concept, conducting thorough market research intelligence, offering mobile ordering and payment and seasonal changing of the menu. Also, we will focus on partnering with other local businesses, cater weddings, office events and parties, attending local festivals, and grow the brand’s social media presence.

References

Alfiero, S., Lo Giudice, A., & Bonadonna, A. (2017). Street food and innovation: the food truck phenomenon. British Food Journal, 119(11), 2462-2476.

Paternoster, A., Vanlanduit, S., Springael, J., & Braet, J. (2017). Vibration and shock analysis of specific events during truck and train transport of food products. Food Packaging and Shelf Life.