Leadership reflection
Rules, regulations, and guaranteed methods of success
HOW TO START A SUCCESSFUL FOOD TRUCK
20 18
Table of Content
Introduction a. Definition b. Benefits c. Purpose d. Warnings e. Cautions How its done a. Choosing a product b. Choosing a concept c. Finding a truck d. Getting the correct paperwork e. Getting financed f. Making a plan Marketing a. Knowing your audience b. Staying connected c. Keeping it fresh d. Expanding Conclusion a. Review of major steps b. Warnings c. Troubleshooting
1 2 3 4 5 6
7 8 9
10 11 12
13 14 15 16
17 18 19
INTRODUCTION With Prince Mohammed bin Salman launching Vision
2030, the future of our Kingdom, we have strived towards nothing but growth and improvement.
In 2015, the Ministry of Commerce officially granted the use of food trucks in business. Since then, the food truck
market has been more successful than the restaurant market, and it is growing wider and wider every day.
WHAT IS A FOOD TRUCK?
A food truck is a large vehicle equipped to cook and sell food. This may range from coffee to burgers and so much
more. Usually, food trucks tend to park in different areas every now and then to target larger audiences from
different places.
BENEFITS ATTRACTS MORE CUSTOME
RS
LOW OPERATION COSTS ALLOWS ONE TO EXPERIMENT WITH LOCATIONS
LESS RISK
ALLOWS ONE TO EXPAND THE BRAND AT A LOW COST
PURPOSE The main purpose of starting your own food truck in Saudi
Arabia is taking advantage of the food truck craze going around the country. Even though the industry is tough, and extremely competitive, it allows the entrepreneur to make
profit at low investment and low operation costs, which isn’t that much of a risk.
WARNINGS
Having a well-written, detailed business plan is essential for
starting a food truck
Despite the fact that it seems effortless and easy, you must not neglect the paperwork that must be done (Licensing, government approval, etc.) in order to operate legally.
Do not expect instant success from day one. Spreading the word around takes
time and patience
1 2 3
CAUTIONS
Start off with realistic expectations and projections of the business’
future
Make sure to park your food truck at the legally designated points of sale
Produce a realistic business plan that apply’s to Saudi Arabia’s rules
1 2 3
CHOOSING A PRODUCT
Definition: a product is the item or good that is sold and produced by the business The industry is booming with fresh, new ideas that people cannot get enough of. From lattes served on dry ice to burger buns made of charcoal. Therefore, opening a truck that sells regular, home-made burgers will guarantee failure. The product must have its own identity that stands out of the crowd, at a low cost. Find something you are enthusiastic about, and study the food trucks that sell what is similar to them. Find something that makes you different from them, and start from there.
The name of the food truck can be funny, poetic, or abstract. This is the first impression people will get from the business.
CHOOSING A CONCEPT
Definition: A food truck’s concept is the overall theme that distinguishes the business. Details such as uniforms, presentation, and the design of the vehicle all participate in defining the concept. When choosing a concept, one must take the following into consideration:
Identifying what inspires the owner allows them to decide what style of food they’d like to serve, and how they’d like to serve it.
When creating a menu. one must understand that they don’t have to please everyone. If a food truck sells Italian pasta, it cannot also sell
Japanese sushi. People will get confused, and it will completely throw off the concept.
FINDING A TRUCK Definition: a truck is the vehicle that the food truck is operated in.
Food trucks operate at low costs because the most consuming liability is the truck itself, which will only be bought once at the
start. The best thing to go for would be to find a used food truck that already has built in kitchen equipment, such as a sink and a stove. Building one from a regular truck will cost a lot more, and
take up so much time.
GETTING THE CORRECT PAPERWORK
Commercial Register
This is the business’ identity. Just like each person has a passport or an I.D., this is what a commercial register is for. It is issued through the Ministry of Commerce, and no business can run without it. If the
truck were to ever face legal issues, the commercial register is the first thing needed to solve the problem. Otherwise, it would be shut down for illegal practice.
Municipality License
This is to be gotten through the areas municipality, and it
shows the local government’s approval for such business to operate
under the law. The license specifies the areas in which the truck is allowed to park,
and what it is allowed to sell.
Saudiazation
On paper, it is only allowed for a food truck to have Saudi
employees, as part of the governments efforts to
decrease unemployment and foreign expatriates. This may
not be the case in real life, however it is completely
illegal to do the opposite.
GETTING FINANCED Definition: Financing relates to the money that is to be spent on the business
and anything related to it. Luckily, food trucks cost little to no money. The only thing needed is an initial investment, which is usually less than a quarter of the
investment spent on a sit-down restaurant. The government does give out loans for such businesses, in efforts to increase Saudiazation and expanding the local market. After getting the loan, it won’t take that much time to pay it
back through the truck’s profit, due to the low operation costs.
MAKING A PLAN Definition: a business plan is a document that describes in great detail how a business plans on achieving its goals by writing out a plan that covers all aspects of a business. All of the steps previously mentioned fall into the making of a business plan. This step
needs to be taken before anything else is done. It is the roadmap that each business follows in its efforts towards success. This plan displays the truck’s long and short
term goals, along with each and every step needed to be taken to reach them. From the benefits and warnings of the market, to how the business is operated, every detail
is mentioned in the plan. This is important because it minimizes risk through a full evaluation of the business and everything surrounding it. Everything is supported by
facts and evidence, which only makes the entrepreneur more confident in their product.
KNOWING YOUR AUDIENCE
Definition: a business’ audience is the group of people that purchase items from a business, and the people that are being targeted by the business. Food trucks are
cheap and fast, which is why they attract people of all ages and backgrounds. However, audience varies with location. For example, if the business is operating on
the beach in the middle of the summer, its audience doesn’t want hot chocolate and marshmallows. However, playing tropical music and serving ice-cold drinks will
definitely steer the crowd in your direction.
KEEPING IT FRESH
Definition: in other words, keeping it “fresh” is how the business constantly improves and expands itself through releasing new products. It is normal for an audience to get bored of a product eventually, and move on to whatever’s new and interesting. This is why one must always find news ways to improve their food. This can be through adding new items to the menu, rebranding the truck, and making sure you keep up with the latest trends, without completely abandoning your identity.
EXPANDING Definition: expanding a business refers to covering larger bases of its audience
through opening new branches in different locations. After the food truck has experienced success, it is time for it to expand. When
costumers from different parts of a city constantly take the time to drive over to a food truck, find out what areas they live in, and choose that as the truck’s next point of operation. However, having the food truck on every street corner isn’t the best way to
expand, because it increases operation costs, and decreases sales per truck. It is important to give people what they want, while still leaving some for yourself.
REVIEW OF MAJOR STEPS
Abide by the law and follow the rules
Find an idea that inspires you as the concept of your business
Design a business plan
Have a strong social media presence
Know the audience and what they want
WARNINGS/REASSURANCES
Never start a business without a strong business plan
Expect bumps in the road and difficult challenges, things will almost never be easy
Be careful when posting online, and make sure it has a positive effect on the business
Expand, but never expand too much.
TROUBLESHOOTING In the case of catching oneself doing something illegal, shut down the truck and leave it on
standby until gotten right, whether its paperwork or a change in methods of operation
If the owner feels as though the location isn’t correlating with the business’ concept, simply
move on to the next one.
When all efforts towards success have been exhausted, don’t be afraid to put the truck on
hold and have it undergo some maintenance. Change up the concept, rebrand the product,
and start all over again.
COMM 2312 TECHNICAL AND PROFESSIONAL
COMMUNICATION DR. DENIZ PALAK
SECTION: 210 MAJOR: BUSINESS ADMINISTRATION
DANA ALBASSAM 201600389 FATEN ALNASSAR 201302248 ROWAN BOUSBAIT 201501922 NOUF ALMUTAIRI 201401080
ASSIGNMENT#3: CAREER-SPECIFIC MANUAL (15%)
TOPIC: HOW TO START A SUCCESSFUL FOOD TRUCK