The purpose of the business plan is to raise finance of approximately 30,000 euros to set up a truck food café in the streets of Limerick, Ireland. The business plan covered all dimensions of our business including market analysis, financial analysis and overall business description.
1 Executive Summary
The objectives of this business plan are to identify, describe and analyse a business opportunity. The purpose of the business plan is to raise finance of approximately 30,000 euros to set up a truck food café in the streets of Limerick, Ireland. The business plan covered all dimensions of our business including market analysis, financial analysis and overall business description.
Truck food cafe is a unique way to serve customers with meals and refreshment. It is now very common and growing in all over the world because of its attraction and environment as it is always unique and different from other restaurants in every aspect. Like all over the world, Truck food also attracts this part of the world with its uniqueness and overall presentation and recently, this business is growing quickly in the streets of Limerick. It is because of street foods taste and uniqueness of these mobile cafes attracts everyone specially the new generation.
I am Alexandra from Limerick, Ireland going to set up a unique truck food café in Bushy Park food market in Limerick. I along with my husband Antonio want to serve our customers with delightful food and taste with unique truck food carts.
Unique Truck food is going to provide freshness to our customers with varieties of coffee, Pancakes, Fresh juice, sweet and spicy confectioneries with affordable prices. I already have experience in a relevant field as I worked as chief in a restaurant and also supervised the balls bridge hotel approximately 5 years.
In the beginning we are just two members but in the future, we may expand it depending on work. Our target will be the local community of Limerick, families, tourists, children and the working class. We would like to serve everyone regardless of age, gender, upper and lower class.
Our basic objectives of business are profit earning, creation of customers, regular innovations, best possible use of resources, production and supply of quality good services, and to achieve customer satisfaction.
Market trends and growth in the food industry also indicates the positivity as since last few years the food industry hit the peak with a greater number of buyers and customers visiting hotels, cafes and restaurants. We are planning to start with approximately 30,000 € to 35,000 € with help from the bank and once it gets working smoothly, we may change our financial and market strategies according to the requirements of the market.
We have the idea that we may face many challenges especially in begging like managing customers, financial issues, completing market demands but things would come easy once the business gets running smoothly. Our pricing and selling strategies would be the same as our competitors and according to the norms of the market. In the start we will try to give handsome deals and packages to customers and earn less profit. We would like to achieve competitive advantage by serving our customers better than our competitors. Our objective is to keep an eye on our competitors and how they are attracting customers. We would also like to use the 1st mover advantage which means to take risk before them by introducing new products or new features or flavours in existing products.
(i) MISSION STATEMENT
Our mission is to serve our customers in a unique and amazing way so they get some fresh and healthy refreshment at an affordable price and enjoy their life by refreshing their mind tired of workload and daily routines problems.
(ii) VISION STATEMENT
Our vision is to share culture, social values, promoting our local taste, providing entertainment by serving them with integrity, humanity and our core values.
(iii) UNIQUE SELLING POINT
Following are the unique and key points that would attract customers toward us.
- All types of refreshments with affordable prices.
- Attractive presentation and environment.
- Experience of the owner.
- Strong demand in the market.
- Good for mental and physical health.
- Quality services and cleanliness.
The business description section will describe the whole business briefly including owner of business, objectives of business, details about product and services and their market dimensions.
(a) FOUNDER OF BUSINESS
The business will be operated as a sole trader business under the laws of Ireland and is founded by Alexandra Vukovic. She is an experienced chef and has worked in hospitality industry. She is going to look after all aspects of business activities including sales, bookkeeping, inventory management and finance with help of her husband.
She has an experienced Chief in O’Brien’s hotel and approximately 5 years of experience as manager in a hotel.
(b) MAIN PRODUCTS AND SERVICES
We are going to provide food services with the best and delightful taste to our customers by selling our basic products like coffee with its all flavours, Pancakes, tea, all fresh juices and other similar refreshment items like sweets.
(c) NATURE OF BUSINESS
Nature of business is services as we are going to provide food services to customers. Our business would be sole trader according to the rules and regulations of Ireland. There would be no participation and contribution from any other person or partner. We would be operating our business as a business to customer category. As no third party is involved in it three is to be no reselling of the product which means our customer would be the final consumer of the product.
(d) LEGAL ENTITY
The business would be a legal entity and registered under the laws of Ireland.
(e) BUSINESS ASSETS
The assets of our business are going to consist of the truck cart that we would be used to selling products, our total cash and in future it’s going to include total inventory and all other liquidate assets available to us.
3 MARKET ANALYSIS
In this section we will describe our marketing strategies to run and execute our business. We are going to follow market trends to setup or change our strategies. By following change in demand and supply of particular goods, change in taste of customer and competitors’ strategies. We are going to use different marketing tools for projection of our business.
(a) PEST ANALYSIS
- Political situations are normally very stable in Ireland.
- Ireland is always a comfortable place to run a successful business.
- Government laws and departments help and assist to execute business smoothly.
- Corruption is not a major concern, though it has been reported that companies face bribery risks at local administrative levels.
- Fast food establishments are adding “healthier options” on their menus as public health policies are pushing for foods with lower sodium and sugar intakes.
- Involvement and Support of Local Authorities in the provision of infrastructure of Food Truck markets and festivals.
- Like politics, Economy is also very well settled
- Ireland is a part of the Eurozone and the 33rd largest economy in the world in terms of nominal GDP. Its nominal GDP in 2018 was $375.90 billion
- It is worth mentioning that Irish economy was amongst the first in the EU to recover from the 2008 recession (The Heritage Foundation, 2019). Because of law tax rate, many global companies e.g., Google, Microsoft, and Pfizer used Limerick as a base for their European activities and contributed immensely to recovery of the economy.
- Economic growth and GDP graph shows trending upward since the last few years.
- Social life of all Irish peoples is almost similar to their belief and culture and religion.
- Limerick, the capital of Ireland, is the one of the most cosmopolitan cities in Europe. The people of Ireland love to spend time with their families and travel and around the world. They are naturally polite, flexible and proud of their identity. During weekends, local pubs are packed with people who come for socialising over a cup of tea and the traditional Irish drink
- Most men and women are living working and practical lives. They are always looking to get fresh their mind after long working hours, our truck café will try best to serve them.
- Use of advanced features and technology is now essential in every field of life after the arrival of artificial intelligence.
- High quality, and multilingual tech talents are available in the country. The IT industry also attracts tech professionals from around the world (IDA Ireland, 2020).
- However, more ICT skilled people are required to meet the demands generated by massive opportunities.
- We would also like to use modern technology tools in our working like machines for coffee and juices and other products and for payment methods.
- Innovators (new products that keep the customer engaged)
(b) SWOT ANALYSIS:
(c) COMPETITOR ANALYSIS
As we are under the umbrella of the mobile café or truck food industry so our main competitors would be also them but some of the big and small restaurants may also be our competitors. The Following can be our competitors.
Our objective is to keep an eye on our competitors and how they are attracting customers. We would also like to use the 1st mover advantage which means to take risk before them by introducing new products or new features or flavours in existing products. These are few of our competitors among many. Some are restaurants and hotels while others are mobiles or truck cafes.
- Partners café
- Couple of coffees
- Fowl play
- Food crew
- Gaillot et Gray
- New top tops
- The Two Sisters Pub
- The window box
- An Seomra Tea
- The Market Bar Restaurant
- Herbert Park Food Market
- Night Market
(d) COMPETITIVE ADVANTAGE
As new vendors in the market we have an edge against competitors that customers may like to try something new. Our prices may be low in the beginning as compared to our competitors. Experience of the owner is also counted as one of the competitive advantages to us. One of the edges that we have against hotels and restaurants is that our café is moveable or flexible as we can go to the place where market demand is more. In short, moving from one place to another is not going to be a difficult task for us.
The competitive advantage in Food Market depends upon the following key capabilities to be developed and exploited by using available resources
- Focus on building relationships with Food Trucks and customers is pivotal.
- Establishing a strong Food Truck brand, envisaging trust, consumer confidence, brand loyalty, and recognition.
- Investment and innovative offering in Food Trucks and providing an atmosphere which is enjoyed by the audience.
- Limited to short span of time 5 Days at the start of Summer allows people to enjoy the atmosphere and the environment.
The competitive advantage will be achieved by capitalizing on the following attributes;
- Collaborative customer relationships;
- Market leadership through differentiation;
- Financial sustainability of the business achieved through being profitable to customers and business partners;
- High capacity management with a strong experience profile.
- Community approach and empowerment.
- Openness to multiple funding and financing sources.
- Risk management and reduction.
- Knowledge-based organization.
(e) MARKET GROWTH
Market growth is strong in the food industry especially in Limerick food streets because in recent past years, the trends show the number of buyers increased. The population growth rate has also increased in Ireland in the last ten years from 0.4% to 1.5% (2011-2019). The population growth rate indicates that the more buyers are going to visit the market in future. However since covid19 the market growth tends toward the low side because of the government. restrictions and covid19 protocols. But this temporary situation is not getting normal day by day.
(f) MARKET TRENDS
Market trends show a curve tilting towards downward since the arrival of the natural disaster of covid19. The whole business community of all around the world is facing this but hopefully things will get normal in coming days. Like other professions, business is also on its revival phase and projection shows that it will regain its old position in six to twelve months. Except Covid19 there is nothing that stops the market trend to move upward in the food industry. With passage of time it market trends are going to hit a boom in the food and hoteling industry.
4 MARKET & SALES
In this section we are going to describe how we will manage market and sales strategies. Our market strategies would be according to normal traditions and norms of the local market as changing strategies according to demand and supply changes, taste and liking of customers, by keeping an eye on competitors.
4.1 MARKETING TOOLS
Marketing of any product or service is an important aspect behind success and failure of any business. We are going to use different marketing tools to project our business in the market.
(a) DIGITAL MARKETING
Digital marketing of our brand is based on social media marketing like ads on Facebook, YouTube, Instagram and other platforms.
(b) PRINT MARKETING
we are also planning to use print marketing but not on a large scale just brochures or business cards distribution to customers who come to visit.
4.2 SALES STRATEGIES AND PRICING
In the Beginning our pricing and sales strategies would be going to be based on cost based pricing as keeping reasonable margin with each product but with passage of time we may increase our margin and pricing according to market and our competitors. We would sell our product like everyone in the market but we would not keep very high margins in beginning to attract customers. The cost spent on each product plus reasonable profit is going to be our formula for selling our products in the market.
4.3 INCOME SOURCES
Our source of income is only our products that we are selling and assets however we manage financial sources in the form of loan from the bank but if only considering income the basic source of income is our products and our assets that are used to assist us in selling these products in the market.
4.4 MARKETING MIX
The four basic components of marketing mix are 4 p’s.
Our main products are Coffee, Pancakes and sweets and other similar refreshment items etc
Our prices are different according to different products and their varieties. The pricing strategy of the Association, under the market penetration and market share acquisition objective should be clearly focused and responsive to the prevalent market prices
We identified three places in city but we preferred Bushy Park food market in Limerick.
Our product promotion would be according to our target market and nature of product.
5 DETAILS OF KEY EMPLOYEES
In the beginning we are going to start with only two people myself Alexandra along with my husband but in future we may increase and hire more people that depend on workload and management. Our objective is to serve customers according to their desire and
6 FINANCIAL ANALYSIS
Financial analysis describes the current financial status and future financial projections which includes calculations of cost, sales, expenses and profit etc.
We are going to start with a working capital of 10,000 euro with the help of a loan from the bank. This will help us in paying truck value worth 15,000 euro which is bought from Serbia. The expected weekly income is around 6000 euros. Further calculations are not yet confirmed. Expected daily income will range from 1,200-1500 euro. Our monthly expenditures are rent, cost of goods and may be salaries in future if we hired any staff.
We required approximately the amount of 35000 euro at the initial stage to set up our business and run it smoothly without any financial barrier. We already have cash in which is about 10000 euro and we required financial support from the bank to cover all financial brackets.
Our financial assumptions are that once the business starts working smoothly, we are going to clear our debt in 4 to 6 months which we took from the bank after that our revenue will be increased. We are projected that if things go the same, we are going to earn 2800k to 300k in a year.
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