The Food Truck Business Models Development

Operating Model

  • Value Chain: The key value chain of this startup will be to cook and sell brunch-type healthy food to the local office workers. Furthermore, alcoholic beverages will be sold in this food truck. The whole business will be operated by five people who prepare meals and take orders.
  • Key Resources: The three critical resources needed for this startup are a truck, fridge, and kitchen.
  • Key Partners: Local farmers will be the primary suppliers of food ingredients for preparing brunches.

Value Model

  • Value Proposition: We offer high-quality brunch options to local office workers and those who value healthy nutrition.
  • Product System: Our customers can purchase some items separately, but most brunch options will be a combination of complimentary meals. For example, eggs will always be served with a salad and fresh bread, or an egg omelet may be combined with either bacon or vegetables.

Service Model

The core differentiating service that our startup will offer is free delivery in cases of all orders above $35.

Experience Model

  • Brand: The central brand promise is fresh, healthy brunch alternatives for people mindful of their well-being but who do not have time to cook at home. Although food truck is usually associated with fast food, we want to change the paradigm and make individuals perceive our brand as an ally in their daily struggles to eat healthy.
  • Customer Relationships and Engagement: Friendly and high-quality service is one of our strategies to ensure that clients will return. We want to introduce a points-based membership program for our customers to receive one free meal for every ten points.
  • Channels: The primary channel for our brand to reach consumers is social media. We may consider ads in the future, but we will primarily rely on customer feedback on Facebook and Instagram.

Cost Model

The most expensive part of starting this business is purchasing and modifying the truck. The latter may cost more than $15,000, and its upgrading will require approximately $7,000-$9,000 (Peek, 2022). The cost of insurance, permits, and licenses may reach about $4,000-$5,000 per year (Peek, 2022). Furthermore, purchasing additional equipment for cooking and storage may require about $5,000-$7,000.

Revenue Model

The major revenue stream is selling various brunch options and alcoholic beverages. In the latter case, customers like its availability since they can purchase liquor in the same place they buy prepared meals. When it comes to brunches, customers are prepared to pay for quality; hence most of our clients are middle-class, white-collar workers. Still, beverages’ contribution to total revenue is lower than food since most sales occur during the day.

Reference

Peek, S. (2022). How to start a food truck business. Business News Daily. Web.

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StudyCorgi. "The Food Truck Business Models Development." August 31, 2023. https://studycorgi.com/the-food-truck-business-models-development/.

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StudyCorgi. 2023. "The Food Truck Business Models Development." August 31, 2023. https://studycorgi.com/the-food-truck-business-models-development/.

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