Food Truck
Food Truck
Food Truck
GROUP ASIGNMENT 2
GROUP 3
SECTION 1
LECTURER SIR AFIF NAIM ABD RANI
SUBMISSION DATE 16/11/2021
TABLE OF CONTENT
2. INTRODUCTION 2
4. MAIN BODY
- The estimate cost for start food truck business 4
- Types of vehicles 5-6
- Food van series 6-7
- Designing the food truck 8
- Interior and Exterior Design 8-11
- Pros and Cons of Food Truck 12-18
- The food truck scene – how to get involved 19-25
- Kitchen layout and Movement in Food Truck 26-27
5. CONCLUSION 28
6. APPENDIX 29
7. REFERENCE 30
ACKNOWLEDGEMENT
First of all we would like to express our special thanks to our respected lecturer En.
Afif Naim Bin Abd Rani for his able guidance and support in completing this project.
In addition, we would also like to express our immense gratitude to our parents for
giving us the facility to complete this course work. Next, we would like to thank our friends,
especially our teammates, for giving many opinions and reminders about everything that
needs to be done for this task within the limited time just because of them we was able to
create our project and make it good and enjoyable experience. Finally, we would like to
thanks those who have been involved directly or otherwise in the creation of our course
work. Thank you.
INTRODUCTION
With new and trendy food trucks rapidly becoming a respected venue for food, the
focus on them as a new business opportunity has grown immensely over opening a brick
and mortar location. Not only do they present a low barrier to entry into the food industry but
also the overall requirements for management make them a tantalizing option for those
opening up a new business.
However, as is expected with any business, the small size and mobility of food trucks
do come with their share of drawbacks. One of the most notable being issues related to
space. Most food truck quality standards in a much more confined condition.
This means less room to work in with about the same level of work in with about the
same level of work as a standard brick and mortar restaurant. This decreased level of space
adds an increased level of difficulty towards cleaning and sanitization with easy opportunities
for food poisoning from cross-contamination and human error with food safety practices.
OBJECTIVE OF THE STUDY
One of the objectives is to supply clients with healthy and freshly cooked food in a
fast and efficient way and to provide quality fast food stuff to the locality. This will be good for
clients who are watching their cholesterol level, and for people who have less time to go to a
restaurant or cook at their homes.
Another objective is to go for prospective clients. To modify the new and other
service with the change in consumer's taste, market demand and competitor's strategy.
Furthermore, choosing a place to do food truck business also needs to be appropriate to
render an enlightening environment to enjoy food item and also to play important role in the
society besides profit margin.
MAIN BODY
The cost for food truck business is more cheaper and its quicker to establish. You
only need to own a vehicle and identify the perfect location to mobilize your business. It is
estimated an average of RM15,000-RM20,000 is required to start a small scale food truck
business. No more hassle is property renovation or rental costs as compared to setting a
restaurant on the shop lots for example.
Since the cost is not too high, one can start the business from own savings.
Alternatively, entrepreneurs can also access funding through banking loans or financing
schemes offered by the government. The average cost breakdown to start a food truck
business is as shown in table 1.
TYPES OF VEHICLES
There are many types of vehicles that can be converted into a food truck such as lorry, bus,
van and some even transformed their wagons, cars, pickup truck and motorbikes to become
a food truck.
1. Van
2. Lorry
3. Bus
4. Wagons
5. Motorcycle
1. Food truck
2. Food cart
3. Food trailer
The interior design depends on your budget. Always remember that safety and
practicality take precedence over design. The graphics painted on the body of your food
truck must contain elements to promote your product. You can also use a wrap, sticker, and
even marker pen as long as it suits your budget and business looks more creative, funny
and beautiful for the customer.
Getting approval from Jabatan Pengangkutan Jalan (JPJ) and Pusat Pemeriksaan
Kenderaan Berkomputer (PUSPAKOM) is also the important element for the food truckers to
run their business. It may need 3-4 months to get approval from the authorities. You must
also obtain a license or permit from local authorities in the area that you want to conduct
your business.
The type or design of food truck and the food that you offer was is the main of the
attraction to the customer and the influence of the interior design and the equipment that you
need to have for run the business. It is also advisable to not sell the same and exact product
like the other food-truckers nearby.
Customer normally will determine either the menus you offer are good or not based on
several factors which are:
i. Taste of the food
ii. Price
iii. Quantity
iv. Time taken to serve the food
v. Publicity
vi. Uniqueness
An ideal food truck normally has 3 operators that is receiving order and payment,
preparing food and packaging. As you involved in the food industry, the staff must have to
knowledgeable in food safety preparation by attending training and get a proper vaccination
such as hepatitis and typhoid.
The important segments that must have to start food truck business:
Business description - Define the food truck industry in your region, the current outlook,
future potential, the concept and theme, other markets and industries that may affect the
business.
Market analysis - Identify the market’s trend, set a target market, analyse the competition.
Avoid having a similar menu to a competitor operating in the same area.
Organization and management - Explain in detail what plan to run the business, establish
standard operating procedures for both employees and yourself, as well as responsibilities
on a daily basis.
Product line - List out a detailed description of the menu, ingredients, procedures, cooking
and food preparation processes, including the quantity intended for sale.
Marketing plan - Lay down the details of how plan to market the food truck business. Be it
online marketing such as social media, paid advertising, influencer marketing, etc. or offline
marketing such as flyers, radio commercial, etc.
Funding request and proposal - clarify how much funding need to start food truck business
and exactly how you plan to get it. If decided to sign up for a personal loan or a government
or private sponsored fund, specify the exact amount you want to borrow.
Pros:
1. Business expansion
2. Active neighbourhood:
Setting up shop in the heart of the action is made possible by owning a food truck.
Attending neighbourhood events like sporting events, plays, or trade exhibitions will increase
the number of people who frequent your business because you are an active member of the
neighbourhood.
3. Business promotion:
If you own a restaurant, food trucks are a great way to promote your brand. The van
serves as a mobile billboard by bearing the name of the eatery.
4. Mobile restaurant:
Food trucks provide quick bite, fusion dishes, and some American favourites on
the go. It enables you to take your restaurant where the customers are.
By regularly interacting face-to-face, you can better understand their needs and establish
a food truck culture.
7. Long-term profitability:
Owning a food truck is more profitable in the long run than renting a home. While the
landlord might increase the rent, you simply pay the parking fee.
8. Unique Spin
Food trucks provide distinctive and intriguing meals. Customers are excited and having fun
as a result of getting the chance to taste strange and uncommon food flavours. Food trucks
provide you the chance to showcase your individual style and the distinctiveness of your
cuisine.
9. Flexible:
You have a lot of choice with the truck when it comes to the menu, business hours,
location, and event scheduling. You now have the chance to expand your company.
Cons:
1. Maintenance costs:
Running the truck to and from adds to the cost of fuel and vehicle upkeep. Additionally,
licensure and insurance are highly expensive.
2. Limited storage:
Buying food in bulk and keeping it chilled helps many eateries save money. Trucks have
a certain amount of cold storage space, and running trucks to and from your supply base
might take a lot of time and money.
3. Difficult to run:
It is difficult to run a food truck. You have to comply with various food truck codes and
laws, manage people and reduce food costs to attract more customers.
4. Competition:
Other seasoned food truck enterprises may present a lot of competition for you in
some major cities.
5. Legal restrictions:
There are a variety of laws governing food trucks in different cities. You should also take
into account additional legal constraints, such as those linked to corporate tax rules and food
safety regulations.
6. Weather Condition:
Severe rain may discourage customers from going outside to buy food, which will hurt
your business.
You must put in long, irregular hours if you want to be successful in your trucking business
and make significant profits.
8. Price limits:
Customers expect food prices to be low compared to restaurant prices, therefore, you
need to be creative with supply prices and increase your profit margin.
9. Small Space:
Food trucks provide you with a very small area to expand your kitchen as well as the
essential tools you require.
It is time consuming and expensive to modify old trucks and build food units. Repairs
for older trucks can be costly.
Estimation of Costs
The cost for the first year is estimated as follows by Malaysian Food Truck, a
support group on Facebook for company owners who want to establish their own
food truck or are already operating one.
Permit fees
In order to get started, you would need to obtain a SSM Company registration
(RM100) as well as a GDL License (RM500). Additionally, you need to apply for a
local business permit from the local council in which you want to operate your food
truck. This permit costs RM1,080 which you need to renew every 6 months.
Operating fee
To attract your customers and offer them a positive experience, you also need
to provide attractive looking menus and bunting to attract people's attention. This will
cost you RM300. In terms of raw materials to run the business, it can be estimated to
stack up to RM20,250 per month based on the assumption that your cost per meal
looks like this:
(RM4 for food + RM0.50 for packaging) x 150 meals + 30 days)
Also, it is useful to keep around RM3000 in your backlash for any emergencies, plus
RM300 per month for maintenance.
Food Truck
Expected results
At an average price of RM10 per meal, this means 4500 single meals per
month or 150 per day (30 days per month). However, not only single meals but also
occasional catering events need to be taken into account. According for small
events, the estimated income you can earn is between RM1,000 - RM1,500 per
event and for large events up to RM8,000 per event.
Business License
You might furthermore need to acquire a business licence in your city or
county in addition to health standards and licences for food service. You can
frequently get direction from city hall or the county clerk's office. A business licence
often costs less than 1,000. A DBA (Doing Business As) certificate, which verifies
that you are really conducting business under a fictitious name, is required if you
operate your business under a truck or company name.
Remember that vehicle licences and inspections are also necessary. You
must have the proper vehicle registration if you operate a car. Registration may also
be required for carts and trailers. To discover out what you require in your region, be
sure to contact the department of motor vehicles.
The number of motions reported for preparing a single meal of western cuisine ranged from
a minimum of 14 to a high of 21 movement. From the entrance, they went to the kitchen to
wash their hands, removed the fries, pulled the marinated food from the freezer, placed it in
the sink, and waited for it to defrost. Then they started frying while simultaneously cooking
the beef or marinated chicken, making mashed potatoes and serving it with their particular
sauces. Western cuisine also required a lot of utensils, stoves, and room to prepare.
Food truck western kitchen
CONCLUSION
The industry is expected to see continued growth even during the pandemic.
Food trucks are super popular and the novelty alone brings in customers, but by
working with a reputable franchisor you can start off your business on the right foot
with a customer base and business plan that is pre-established.
Food trucks can test out different locations at various times and see where
they get the most business. Since they basically have a business on wheels, they
can go in search of customers. Businesses that are in a standing location have to put
more effort into advertising to create brand awareness. Whenever drive the food
truck around town, it will getting free advertising.
Food trucks trends are taking off. The industry is worth millions of dollars and
continued growth is expected. Many investors are considering hopping on the food
truck trend, so the sooner you get in on it the better. There are food truck franchise
opportunities to be found everywhere. A food truck investment is likely to pay off as
long as you are passionate about and devoted to the success of the business.
APPENDIX
Food handling Certificate Typhoid Injection
2) https://en.m.wikipedia.org/wiki/Food_truck
3) https://www.comparehero.my/investment/articles/food-truck-scene-how-get-involved
Dennis is a Guest Writer at CompareHero.my.
4) https://www.smeinfo.com.my/tag/going-into-food-truck-business/
5) https://www.slideshare.net/EmranHosain1/wellcome-to-food-truck-business
6) Martinson, Gabrielle. 2013. “In its First Summer, District’s Food Truck is a Success.”
The Journal, July 16. Available at wwwvjournalmpls.com/news-feed/in-its-first-
summer-districts-foodtruck-is-a-success.