Mashakik (Mobile Food Truck)
Mashakik is a London mobile food truck-based business that makes use of a truck to sell various menus of foods. It is a company that is founded by Mr Malek Omar, Said Rashid, and Mohammed Suliman.
The aim of setting up Mashakik is to take our various types of meals (Meat, Chicken, and Sea Food) and soft drinks to wherever we can find our target market. It could be at a picnic ground, it could be on a carnival ground, sports complex, as well as a religious crusade ground. All that we are concerned about is providing good quality food at a cheaper price to our highly esteemed customers.
We intend to build a mobile truck food business brand, which will help event organizers worry less about how to provide a cafeteria where participants at their event can get lunch.
Even though we will be based in London, we won’t be restricted to this city; we will cover other districts as long as it is cost-effective for us.
We will offer our customers the opportunity to either purchase our neatly packed foods or give us their orders and we will prepare it whilst they wait. We have perfected our plans not to allow our clients to wait longer than necessary when they place their special orders.
At Mashakik, our meals will be prepared, served, and sold at a pocket-friendly price in a neat and hygienic environment. The health of our customers is of topmost priority to us, which is why we do not intend to leave any stone unturned when it comes to giving our clients the very best of services.
The objectives for the first three years of operation include:
Our mission is to provide quality, authentic food to our community conveniently and affordably to enhance the quality of our customers’ lives.
Mashakik company, located in London, will offer high-end food trucks to the London community. Mashakik company will serve parties with a high-end food truck. Mashakik company will offer a large menu repertoire, from traditional favourites to creative inventions. All of the food and drink items served will be done under the strict supervision of regulation of the United Kingdom.
Mashakik is founded by Mr Malek Omar, Said Rashid, and Mohammed Suliman.
Mashakik will incur the following start-up costs:
Please note that the following items which are considered assets to be used for more than a year will be labelled long-term assets and will be depreciated using G.A.A.P. approved straight-line depreciation method.
|Total Start-up Expenses||£800|
|Other Current Assets||£0|
|Start-up Expenses to Fund||£800|
|Start-up Assets to Fund||£28,200|
|Total Funding Required||£29,000|
|Non-cash Assets from Start-up||£22,500|
|Cash Requirements from Start-up||£6,700|
|Additional Cash Raised||£0|
|Cash Balance on Starting Date||£0|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||£0|
|Other Current Liabilities (interest-free)||£0|
|Mr Malek Omar||£10,000|
|Additional Investment Requirement||£0|
|Total Planned Investment||£29,000|
|Loss at Start-up (Start-up Expenses)||(£800)|
|Total Capital and Liabilities||£28,200|
Mashakik will provide London with high-quality food truck services.
The mobile food truck business might not be too ideal an environment to prepare and sell high-end and expensive delicacies like; intercontinental meals et al. However, we at Mashakik are set to go all the way to ensure that we meet the basic needs of our esteemed customers.
As much as it lies within our power, we will offer a variety of menus ranging from snacks to real meals. Here is a sneak peep at what we plan to offer;
As a team together with our paid business consultants, we have been able to look both inward and outward, as well as critically assess ourselves and business ideas to know if we are truly ready to launch our mobile food truck business in London.
No doubt, we have a lot of factors working in our favour but at the same time, we have some factors that we must contend with if we intend to become the number one brand when it comes to the mobile food truck business in London and United Kingdom at large.
Below is a summary of the SWOT analysis that was conducted for Mashakik company.
Aside from the training that has been acquired, as well as the hands-on experience attained over the years before starting Mashakik Mobile Food Truck Company, our strength lies in our financial capacity and determination to succeed in the business at all costs.
Our strength also lies in the fact that we have a relationship with brand experts who are working almost for free for us. With that, will be able to build our brand to a level where we can start selling franchises and offer training and consultancy services on mobile food truck business.
The fact that we are planning to roll out our mobile truck business alongside other similar business offerings like training, consultancy services, and sale of the franchise could distract us from concentrating and channelling our energy in one direction. We are quite aware of that and we are working towards blocking any area that will sap our energy and make us underperformed in our core business area – the sale of foods and drinks from a mobile truck.
The opportunities that we stand to leverage are much. The fact that we are not tied down to a location is indeed a good opportunity for us to grow our business to the level we want to grow it too. For example; we can afford to trade foods, snacks, and drinks in more than two locations within a day. It is all about knowing when to arrive and leave for another location.
There is hardly any business venture that doesn’t face its threat. Regarding the mobile food truck business, one of the threats that we may likely face is; vehicular traffic in key cities.
Traffic can delay one and as a result that one may get to the location where one intends to sell the foods and drinks late- this could be when the lunch break is over (basically for organized events). Yet another threat is; the government policies, which could also pose a great threat to the mobile food truck industry.
The Mashakik Mobile Food Truck company market is an interesting one. Several food truck companies offer services that are quite similar to each other in terms of price and menu options. For whatever reasons, there has been little demand by consumers to get caters to innovate their menu. This is not to say that consumers would not welcome new food truck menu items, it is just that people have incorrectly assumed that food truck meals have to be boring. Mashakik Mobile Food Truck company will occupy a niche in the food truck catering market that offers new, creative menu items, broadening people’s conception of food truck food. This market consists of two target segments that are differentiated by household income.
The British craving for artisan food vans is showing no signs of slowing any time soon. As more and more people in the UK seek out gourmet snacks and alternatives to the traditional dining experience, a fleet of mobile caterers has sprung up in recent years to meet the demand.
Table: Market Analysis
|Year 1||Year 2||Year 3||Year 4||Year 5|
|Middle-class food truck customers||8%||120,547||130,191||140,606||151,854||164,002||8.00%|
|Upper-class food truck cutomers||9%||80,457||87,698||95,591||104,194||113,571||9.00%|
The target market segment strategy will not be significantly different to address the two different groups. Therefore, reaching the different groups does not require a distinctly different strategy. What differentiation it will require is different menu offerings needed to satisfy the different groups. The upper-end menu items are cost-prohibitive for the middle-class target segment.
Mashakik company in London is fairly unique. At the low- to mid-price point of the cost spectrum, there are other food trucks Mobile Food Truck. These Mobile Food Trucks tend to serve the part of the market that must have food truck food served on an occasion due to religious beliefs, but struggle to able to afford the cost variance between standards. All of these Mobile Food Trucks have fairly standard menu offerings.
There are other food trucks Mobile Food Truck that serve the low to middle end of the market. These mobile food trucks compete to some degree on cost, but more so on service. The quality and the serving of the food are the main areas of service that the mobile food truck competes on.
The buying habits of consumers of food truck Mobile Food Truck is to some degree price sensitive at the middle-end of the market. Between two different service providers, the middle-class group will choose the service provider with the best services. However, the cost is certainly an issue and some of the Mobile Food Trucks are not even options because they are priced out of this consumer group’s price range. The buying habits for the high end of the market are price insensitive. Choices are made by menu offerings, reputation, and attention to service.
Loads of factors count towards our advantage as a mobile food truck business operator. The fact that we can determine where we want to sell our foods and drinks per time gives us the leverage to make as many sales as we can make in a day.
It has been observed that any organization that offers training and consultancy services is always amongst the leaders in their industry and we at Mashakik Company are set to tow along this part because we want to become experts and amongst the leading mobile food truck company in the whole of the United Kingdom.
We have put plans in place to facilitate continuous improvement in what we do because we know that is one of the factors that will give us a competitive advantage in the marketplace. Another competitive advantage that we have as a company is the size and condition of our food truck.
We will be able to purchase a brand new retrofitted food truck with all the required gadgets. It will be big enough to accommodate all that we would need for the business, we are going to spend less on maintenance and we can easily obtain approval from the appropriate authorities.
Mashakik will gradually gain market share in the food truck Mobile Food Truck market by leveraging its competitive edge. The edges that Mashakik company will leverage are areas that have been ignored in this market for some time now. These competitive edges coupled with a targeted advertising campaign and networking will be Mashakik’s company game plan for increasing its market share.
The food truck business is one business that requires little adjustment on the field to be able to turn low sales into great sales. For instance; if you are in a location where the sale is very slow, you can decide to change location and move to a place where you feel you can generate more income and sell more of your foods. It is just a matter of driving to the location. There are several ways that we intend to adopt to promote our mobile food truck business and here are some of them;
Mashakik company sales strategy will use a combination of superior customer attention and a comprehensive repertoire of dishes for the menu to turn information seekers into customers.
Generally food truck business sells meals, and snacks at a cheaper rate when compared to the conventional fixed – restaurant. We don’t have any plans to sell our foods, snacks, and drinks beyond the prices that are obtainable in the industry.
That does not mean that we will fall below standard when it comes to the quality of our food. One of our strongest selling points will be the taste and perhaps the number of our foods when compared to our competitors.
From our market survey and feasibility studies, we are sure going to make reasonable profits even when we sell a little below the average price for package foods and snacks in the food truck industry, especially if the location we intend to sell our foods and drinks is not far away from our base.
Our payment policy is all-inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available to customers when they patronize us;
There is no hard and fast rule when it comes to determining how much it will cost an individual to start a business. The size and capacity of the business you intend to start is what will determine the size of your budget. We have decided to start Mashakik company with just one truck with the hope of growing it to fleets of trucks few years down the line.
So, our budget is based on starting small but with class.
There will be no sales activity during the first month. The second month will see a few catering jobs, but still will not be a significant source of income. Months three and four will see a steady increase in sales. Word will have gotten out from the advertising as well as networking that Mashakik company is the new food truck mobile food truck in town and offers a very high-quality service. Throughout the year it is forecasted that sales will incrementally grow in size until profitability is reached toward the end of year one.
Table: Sales Forecast
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||Year 1||Year 2||Year 3|
|Subtotal Direct Cost of Sales||£53,532||£110,261||£118,502|
Mashakik company will create a user-friendly, content-packed website with information on our services and prices, as well as on the general benefits of a mobile food truck. we will also maintain a section with current news about the mobile food truck.
The menu will be displayed with pictures of the food.
Website Marketing Strategy
Our website marketing strategy will focus on the target group. The Mashakik will promote through our website by using:
The following sections will outline important financial information.
The following table details important financial assumptions.
|Year 1||Year 2||Year 3|
|Current Interest Rate||10.00%||10.00%||10.00%|
|Long-term Interest Rate||10.00%||10.00%||10.00%|
The following chart and table will indicate projected cash flow.
|Pro Forma Cash Flow|
|Year 1||Year 2||Year 3|
|Cash from Operations|
|Subtotal Cash from Operations||£178,439||£367,535||£395,008|
|Additional Cash Received|
|Sales Tax, VAT, HST/GST Received||£0||£0||£0|
|New Current Borrowing||£0||£0||£0|
|New Other Liabilities (interest-free)||£0||£0||£0|
|New Long-term Liabilities||£0||£0||£0|
|Sales of Other Current Assets||£0||£0||£0|
|Sales of Long-term Assets||£0||£0||£0|
|New Investment Received||£0||£0||£0|
|Subtotal Cash Received||£178,439||£367,535||£395,008|
|Expenditures||Year 1||Year 2||Year 3|
|Expenditures from Operations|
|Subtotal Spent on Operations||£207,318||£319,015||£337,763|
|Additional Cash Spent|
|Sales Tax, VAT, HST/GST Paid Out||£0||£0||£0|
|Principal Repayment of Current Borrowing||£0||£0||£0|
|Other Liabilities Principal Repayment||£0||£0||£0|
|Long-term Liabilities Principal Repayment||£0||£0||£0|
|Purchase Other Current Assets||£0||£0||£0|
|Purchase Long-term Assets||£0||£0||£0|
|Subtotal Cash Spent||£207,318||£319,015||£337,763|
|Net Cash Flow||(£28,879)||£48,521||£57,245|
The following table and chart show our Break-even Analysis.
|Monthly Revenue Break-even||£20,362|
|Average Percent Variable Cost||30%|
|Estimated Monthly Fixed Cost||£14,254|
The following table will indicate projected profit and loss.
|Pro Forma Profit and Loss|
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||£53,532||£110,261||£118,502|
|Other Production Expenses||£0||£0||£0|
|Total Cost of Sales||£53,532||£110,261||£118,502|
|Gross Margin %||70.00%||70.00%||70.00%|
|Sales and Marketing and Other Expenses||£1,800||£1,600||£1,500|
|Total Operating Expenses||£171,042||£201,064||£205,564|
|Profit Before Interest and Taxes||(£46,135)||£56,211||£70,941|
The following table will indicate the projected balance sheet.
|Pro Forma Balance Sheet|
|Year 1||Year 2||Year 3|
|Other Current Assets||£0||£0||£0|
|Total Current Assets||£7,821||£56,342||£113,586|
|Total Long-term Assets||£25,996||£19,492||£12,988|
|Liabilities and Capital||Year 1||Year 2||Year 3|
|Other Current Liabilities||£0||£0||£0|
|Subtotal Current Liabilities||£10,752||£13,421||£14,502|
|Total Liabilities and Capital||£33,817||£75,834||£126,574|
The following table outlines some of the more important ratios from the Catering industry. The final column, Industry Profile, details specific ratios based on the industry as it is classified by the Standard Industry Classification (SIC) code, 5812 (NAICS code 722320).
|Year 1||Year 2||Year 3||Industry Profile|
|Per cent of Total Assets|
|Other Current Assets||0.00%||0.00%||0.00%||36.38%|
|Total Current Assets||23.13%||74.30%||89.74%||45.37%|
|Per cent of Sales|
|Selling, General & Administrative Expenses||95.85%||59.29%||57.43%||25.03%|
|Profit Before Interest and Taxes||-25.85%||15.29%||17.96%||1.70%|
|Total Debt to Total Assets||31.79%||17.70%||11.46%||51.63%|
|Pre-tax Return on Net Worth||-200.02%||90.06%||63.30%||5.84%|
|Pre-tax Return on Assets||-136.42%||74.12%||56.05%||12.06%|
|Additional Ratios||Year 1||Year 2||Year 3|
|Net Profit Margin||-25.85%||10.71%||12.57%||n.a|
|Return on Equity||-200.02%||63.04%||44.31%||n.a|
|Accounts Payable Turnover||7.99||12.17||12.17||n.a|
|Total Asset Turnover||5.28||4.85||3.12||n.a|
|Debt to Net Worth||0.47||0.22||0.13||n.a|
|Current Liab. to Liab.||1.00||1.00||1.00||n.a|
|Net Working Capital||(£2,931)||£42,921||£99,084||n.a|
|Assets to Sales||0.19||0.21||0.32||n.a|
|Current Debt/Total Assets||32%||18%||11%||n.a|