1/1/2020 Final Assignment

Report writing
Business proposal of “Let’s Eat” Mobile Restaurant Initiation and Operation

Prepared By:

Mega bhattarai

Submitted to: Mr. Dipak Basakoti

Subject: Business Communication

Ace International Business School

Table of Contents
Changing Eating Habits:...............................................................................................................................3
Business idea...............................................................................................................................................3
Company Description..................................................................................................................................4
Vision:..........................................................................................................................................................4
Mission:.......................................................................................................................................................4
Organization Structure................................................................................................................................5
Industry Overview with Analysis..................................................................................................................6
Objectives................................................................................................................................................6
Services....................................................................................................................................................6
PEST ANALYSIS.............................................................................................................................................7
Political Environment..............................................................................................................................7
Economic Environment............................................................................................................................7
Social Environment..................................................................................................................................7
Technological Environment.....................................................................................................................8
FIVE FORCES ANALYSIS................................................................................................................................8
Intensity of Existing Rivalry......................................................................................................................8
Threat of Substitutes...............................................................................................................................8
Threat of New Competitors.....................................................................................................................8
Bargaining Power of Suppliers.................................................................................................................8
Bargaining Power of Customers..............................................................................................................8
SWOT ANALYSIS...........................................................................................................................................9
Strengths:................................................................................................................................................9
Weakness:...............................................................................................................................................9
Opportunities:.........................................................................................................................................9
Threats:...................................................................................................................................................9
Business Strategies....................................................................................................................................10
Networking Strategy..............................................................................................................................10
Strategy and Implementation summary................................................................................................10
Integration, Rationalization and Diversification Strategy..........................................................................11
Short- term and Long-term Objectives and Polices...............................................................................11
Technology Sourcing and Its Usage in Strategy Implementation...............................................................12
Functional or Operational Strategy...........................................................................................................13
Strategic Audit Process to Evaluate Performance.....................................................................................14
FINACIAL PLAN AND THREE YEAR SALES....................................................................................................16
FORECAST..................................................................................................................................................16
Food Truck Start-up Costs.........................................................................................................................17
Changing Eating Habits:
The lifestyles of the people in the cities are changing and so are their eating habits. Nuclear
families in which both spouses are working are becoming the norm. Eating out has become
convenient and not just on special occasions. Nepalese have become more experimental in their
taste; they are eager to try new items in the menu.

The trend of eating the street food is increasing gradually in Nepal. The street food previously
consisted of Panipuris and Chatpate while at present; you can find all sorts of Chinese and Indian
food here. The numerous stalls around the city can be seen packed with the hungry customers
waiting their turns to dig into their plates. Although there are numerous restaurants and cafes
offering the same thing in the spacious and comfortable station, people crowd around the small
stalls, most of the time standing due to lack of space, in order to fill their appetite.

In this modern time, many people have busy work schedules and don’t have enough time to cook
food and prefer to eat in restaurants and cafes. This is especially true in case of students and job
holders. Here, the fast food option emerges and many people make use of it. Many workers and
students have limited time to travel for food during the lunch break, and so quickly go through
all restaurant venues near their workplace or colleges. 

Business idea
Paying attention to these facts, we have come up with an idea of serving low price & high quality
at the same time healthy fast food options (with changing menus) to students, job holders, and
others during the meal times using the freshest ingredients available. What makes this idea
unique is that instead of serving food from a fixed designated place/restaurant, we serve it
through a food truck.

Serving food through a food truck is a completely new idea that has never been implemented in
Nepal, even though it is really popular in US and other western countries.
Company Description

Company Name: Let’s Eat

Tag line: Aren’t you Hungry?

Logo:

Vision:
“We are fast, but we are not fast food.” Our vision is to be number one choice for all the busy
people by serving meal that is handmade, healthy, at the same time highly affordable, from
multiple locations.

Mission:
 To choose the best and freshest ingredients
 To introduce continuous variety and change in menus, so that customers don’t get tiered
of the food
 Build long term and friendly relationship with customers through face to face interactions
 Expand the business to other cities like Pokhara, Biratnagar, etc. within the span of next
five years.
Organization Structure

CEO
/ManagerMarketing
Personnel

Finance Personnel Procurement Manager Operations Manager

Sales Assistant
Assistant Assistant Head Chefs

Transportation Incharge

Area Incharge
Industry Overview with Analysis

Objectives
The main objectives of the firm are as follows:

 To make the product available in the required market.

 To help the consumer directly know about the timing of delivery using internet
technology
 To help consumer get their needs fulfilled
 To make it easier to buy the product
 To decrease the order and delivery cycle
 To have maximum sales.

Services
The services provided by our food truck are as follows:

 Providing best and fresh food ingredients

 Providing quality products in cheaper rates.
 Creating healthy and safe food products.
 Customizable menus
 Changing menus to make the change the taste palate of the customers
 Phone application which gives details about the food safety and locations of the truck
PEST ANALYSIS
Political Environment
Political factors are basically how the government intervenes in the economy. Specifically,

political factors has areas including tax policy, labour law, environmental law, trade restrictions,

tariffs, and political stability. Political factors may also include goods and services which the

government aims to provide or be provided and those that the government does not want to be

provided. In this business idea, the policies of government regarding the transportation and

delivery of food items may vary which may affect the environment to operate the business.

Economic Environment

Economic factors include economic growth, interest rates, exchange rates, and the inflation rate.

These factors greatly affect how businesses operate and make decisions. For example, interest

rates affect a firm's cost of capital and therefore to what extent a business grows and expands.

Exchange rates can affect the costs of exporting goods and the supply and price of imported

goods in an economy.

Social Environment

Social factors include the cultural aspects and health consciousness, population growth rate, age

distribution, career attitudes and emphasis on safety. High trends in social factors affect the

demand for a company's products and how that company operates. For example, the health

conscious population may imply a smaller and less-willing to try the product. Furthermore,

companies may change various management strategies to adapt to social trends caused from this

(such as trying expensive food items).

Technological Environment

Technological factors include technological aspects like R&D activity, automation, technological

incentives and the rate of technological change. These can determine barriers to entry, minimum

efficient production level and influence the outsourcing decisions. Furthermore, technological

shifts would affect costs, quality, and lead to innovation. In this business idea, there is high

probability of increase in technology cost.

FIVE FORCES ANALYSIS

Intensity of Existing Rivalry

 Exit barriers are low

 Large industry size

Threat of Substitutes
 Substitute is lower quality

 Substantial product differentiation

Threat of New Competitors

 Geographical factors limit competition

 Customers are loyal to existing brand

Bargaining Power of Suppliers

 High competition among suppliers

 Diverse distribution channel

Bargaining Power of Customers

 Low buyer price sensitivity

 Large number of customers

SWOT ANALYSIS

Strengths:
 Novel idea
 Lower initial investments
 Cheaper and faster than opening a restaurant
 First mover advantage
 Enables to take different location advantage
 Trying new recipes and modifying products is easier
 Changing menus which reduces monotony and maintains an element of surprise

Weakness:
 Buying the right truck and remodeling the inside into a kitchen can take time and money
 High fuel cost
 Lack of expertise

Opportunities:
 Increasing fast food trend
 Influence of western culture
 Availability of second hand vehicles
 Busy schedules of modern students and workers

Threats:
 Threat of imitation
 Food truck operations can be seasonal in places with cold climates while even in warmer
locations, unexpected rain can put a dent on sales
 Expensive vehicles
 Bad road condition
Business Strategies

Networking Strategy

Networking strategy for Let’s Eat mobile restaurant

1. Maintaining good relationship with the local restaurants and creating opportunities of
collaborations. This will help the restaurant to flourish more.
2. Maintaining a good professional relationship with the suppliers of the restaurant so as to
get a speedy, reliable and economic supply of resources.
3. Maintaining a good relationship with the office staffs of the area that is frequented by our
mobile restaurant.
4. Maintaining a good relationship with the target market and consumers.

Strategy and Implementation summary

These are the strategies which are to be applied after extensive market research and analysis.
1. Product: Products are our menu items and services that our food truck provides for sale at
the market. In the current market situation the customers wants a healthy meal with taste
hence, an example of the product on the menu item could be, Carbsless momos. This
product provides the satisfaction of eating momos but without much calories as we are
substituting the flour wrap with the cabbage wrap.
2. Place:  We will have to choose the right place, mostly school or college areas and office
areas for our food truck to get our products to the customer.
3. Price: Price includes the selling price of our products. This has to be adjusted according
to the place where the truck is to be located and the types of products on sale.
4. Promotion: We are going to promote our food truck by persuading the people around our
truck to become customers. Apart from this, we will be doing extensive social media
marketing and would be notifying potential customers about our food truck stops.
Integration, Rationalization and Diversification Strategy

Short- term and Long-term Objectives and Polices

Short term objective:

 Establish Let’s eat as trendy, healthy fast food option in key cities of Kathmandu
 To retain 5% of the street food lover customers/year
 To promote Let’s eat through local newspaper, posters and yellow pages
 To provide opening discount of 15% for 1 month of establishment of business

Long term objective:

Strategic objectives:

 Expansion into all major cities in Kathmandu, Bhaktapur and Lalitpur resulting in market
leadership.
 Multi-brand innovation and becoming a top of the mind brand in Mobile fast food
industry
 Market leader in terms of unique service experience, customer satisfaction and employee
welfare.

Financial Objectives:

 Increasing in profit margin by 26% through improved operations and reduced overhead
costs in upcoming 4 years of business establishment
 Strong cash generation and returns
Technology Sourcing and Its Usage in Strategy Implementation

Technology sourcing is all about identifying and acquiring various technologies to help operate
the business more smoothly and efficiently. Firms need to seek various emerging and innovative
technologies in order to remain competitive. Some of the consideration that needs to be address
while sourcing technologies are:

1. Cost factor-Is the technology feasible financially?

2. Utility factor-Do the technology satisfies the firm’s operational needs?
3. Competitive advantages- Do the technology assist the firm in providing competitive
advantages?

After assessing these considerations, our firms will acquire the required technologies. Some
of the technologies that our firm will cash on and their usage in strategy implementation are:

Technologies Usage in Strategy Implementation

1. Internet technologies like ISP
services, Broadband Wi-Fi networks
etc.
2. Mobile applications
3. Inventory Management
Systems(IMS software)
4. Various Cooking technologies like
Fryer System, Smart stoves, Energy
efficient refrigerators, food storage
system etc.
 It helps us to connect with our
important stakeholders like
suppliers, customers, staffs etc.
 It helps us in providing data of
customers, competitors
 It helps us to promote our business
in massive scale.
 It helps us to increase our customer
base.
 It helps us to manage the order
processing more quickly.
 It assists us in managing an efficient
inventory level.
 It keeps track of our supply chain.
 It will help us prepare the food
items by occurring less cost.
 It will help preserve the quality of
foods.
 It will cater the customers by
serving them on time.
Functional or Operational Strategy
The functional or Operational strategies are important means that assists the corporate and the
business strategy. With the functional level strategy, organization can actually make the division
of various strategic choices at different functional level like marketing, finance, operation etc.
These strategies are oriented for the immediate future and are more specific in nature. Similarly,
the role of functional level managers are vital in devising and implementing such functional
strategies.

Our firm, has also various functional level strategy that supports and aligns with the business
strategies to achieve the mission and vision of our firm. Some of our functional strategies are as
follows:

Functions Strategies
1. Marketing  Offering Location based deals like discounts, coupon offers etc. as a part
of consumer promotion.
 Online booking system and prompt delivery system.
 Developing mobile phone apps that can track our sales locations and
provide booking facilities
 Selling traditional and cultural cuisines
 Outdoor promotions using posters and pamphlets in our food trucks
2. Finance  Leasing food trucks
 Seeking profitability through volume sales
 Providing food items at comparatively low cost.
3. Procuremen  Choosing an optimum mix of vendors for procuring goods at best price
t and quality
 Ad hoc purchasing i.e. purchasing for specific purpose.
 Efficient supply chain managing.
4. Operations  Locating services in places with maximum customer flow.
 Weekly maintenance of food trucks to ensure smooth operations.
 Devising feedback procedures to ensure staffs as well as customers
satisfaction.
Strategic Audit Process to Evaluate Performance

The strategic audit process helps the businesses to check whether the internal business process
are being concentrated towards achieving the strategic goals or not. It helps to identify the gaps
between the strategy formulation and implementations.

Our firm is concerned towards the strategic audit process which helps to assess the firm’s
performance in timely basis.

The strategic audit process includes:

1. Strategic Planning(Devising Mission, Vision, Objectives)

2. Analysis(PEST,SWOT)
3. Implementation of Plan
4. Control

The strategic audit process will help us deploy various control measures:

1. Premise Control- It will check whether there is any flaw in premises regarding
environment and industry factors that the firm has set.
2. Special Alert Control-It will help deal with sudden and unexpected events that occur
during the business operation.
3. Strategic Surveillance-It will help monitor and deal with the broad internal and
external factors affecting the business strategy.
4. Implementation Control- It helps to identify the progress in milestones that we have
set to achieve and also helps in assessing the implementation actions.

The table below gives a better understanding and insights:

Strategic Audit Process Measures to enhance performance
1. Premise Control
2. Special Alert Control
3. Strategic Surveillance
4. Implementation Control
 Reviewing whether our premise about
customer preferences towards fast
food culture is realistic or not.
 Identifying underrated competitors in
the industry like locally renowned fast
food restaurants, street food stalls etc.
and carefully devising competitive
strategy.
 Assessing potential threats to the firm
like change in government policies
regarding street food business.
 Establishing feedback system
(Internal-staffs and external-
customers) to know the level of
satisfaction.
 Timely checking quality of products
 Reviewing the profitability goals
 Checking loopholes during operations
 Maintaining and monitoring
interdepartmental communication
system.
 FINACIAL PLAN AND THREE YEAR SALES
FORECAST

Yearly Projected Sales 2020 2021 2022

Food Rs 15,00,000 Rs 17,00,000 Rs 18,00,

Beverages Rs 2,00,000 Rs 1,50,000 Rs 2,00,0

Total sales Rs 17,00,000 Rs 18,50,000 Rs 20,00,

Estimated cost
Food Truck Start-up Costs
Equipment Rs.500,000

Food Truck Rs. 40,00,000

Initial Product Inventory Rs.25,000

Permits and Licenses Rs.10,000

Website Rs.5000

Facebook / Twitter Free

Lighting/Décor Rs.8,000

Uniforms / T-Shirts Rs.5,000

Paper Products (Plates / Napkins, etc.) Rs.4000

Misc. Expenses Rs.2000

Small wares: Pots, Pans, etc. Rs.8000

Fire Extinguisher Rs.4000

Food truck application Rs.8000

TOTAL 45,83,000

Food Truck On-Going Costs

Items Monthly Estimated Cost
Electricity Rs.1000

Phone / Internet Rs.2000

Fuel Rs.2000

Salary Rs,1,65,000

Repairs Rs.3000

Food / Beverage Restock Rs.20,000

Paper Product Restock Rs.3,500

Yearly Projected Sales 2020 2021 2022

Food Rs 15,00,000 Rs 17,00,000 Rs 18,00,

Beverages Rs 2,00,000 Rs 1,50,000 Rs 2,00,0

Total sales Rs 17,00,000 Rs 18,50,000 Rs 20,00,