Answer

Street Food Cart Business

In America, sole proprietors opt to start and run various types of small businesses in the hope that the business will exponentially grow in due time and they will get the chance to expand. An example of a small business in this regard is the street food vending business. I got the chance to interview an entrepreneur operating a street food cart business. This paper will provide the overall results of the interview.

The interviewee’s name is John Alpha (not his real name). Alpha was previously working as a waiter at a local restaurant. When he lost his job in the wake of the Covid-19 pandemic, he resorted to conducting the street food vending business (a business he had previously tried when he was in high school). Alpha had an initial capital of $5000 in 2020. With this amount, he was able to start the business. Half of the capital was used to purchase a fully equipped cart. Other expenses that were incurred at this point included; $500 which was used to purchase the initial food stock and the ingredients; $600 which was spent on the permits and registrations; $400 which was spent on marketing; $500 for parking and cleaning the cart; and $500 for miscellaneous costs. Since Alpha had adequate knowledge of culinary arts (especially with regards to the types of foods he was going to handle), he opted to do all the cooking and serving on his own.

For individuals who opt to start a street food vending business, competition is often present. The same experience has been recorded by Alpha. The business faces direct competition from other businesses that offer the same products or target the same demographic of customers. Within the area that Alpha operates, there are several other individuals who are in similar business. Two of these individuals are in fact selling the same types of foods that Alpha sells. When consumers are making a decision on where they are going to purchase their food, they have to consider the price as well as the service level being offered by the respective businesses.

When it comes to the pro forma SWOT analysis of the business, some of the strengths that were noted include; entrepreneur’s ability to be his own boss; low running costs; and flexible working hours. Some of the weaknesses that were noted include; long working hours (there are times when night shifts are done so as to meet the set profit targets); numerous regulations and laws that have to be complied with; and lack of proper customer service as a result of being a sole trader. An opportunity that the business enjoys is the growing popularity of street food. Young people particularly find street foods trendy; this is an opportunity for the business. A threat that the business faces relates to the entrepreneur working on his own (if he becomes incapacitated even for a few days, the business stops running). Another threat is fierce competition from other street food cart businesses.

The enterprise is planning to record substantial growth within the next two years. To achieve this, the enterprise tries to maintain a memorable concept. The entrepreneur is also keen on attending local festivals so as to increase sales and conduct further marketing. It is anticipated that within the next two years, the entrepreneur will be able to hire or purchase a truck and convert the food cart business to a food truck business.

In order to promote growth, the owner is striving to maintain quality standards that his customer base is accustomed to. He ensures that cleanliness is maintained and the foods are cooked as expected. He projects that this will promote growth because the customers will not only continue streaming in, but they are also likely to refer other customers. The owner is also promoting growth through marketing. He talks to various individuals whose offices are located near his point of sale and asks them to sample his food.

Based on the foregoing, one of the strategic suggestions I would propose to the consumer is that he focuses on offering a product concept that is not being offered by other food cart businesses (Arseculeratne & Yazdanifard, 2014). The entrepreneur can, for instance, focus on selling juices, smoothies, and fruits (Arseculeratne & Yazdanifard, 2014). Rich fruit cakes can also be sold as accompaniments for juices and smoothies. I would also advise the entrepreneur to consider hiring one more person so as to cure the customer service challenge being experienced when more than two customers are seeking his services at a go.

The street food cart business is an example of a small business in America. After losing his job, Alpha started the above-stated business with an initial capital of $5000. He mainly experiences competition from other street food cart businesses that sell similar products.  The entrepreneur has planned to substantially grow within the next two years. He is maintaining his quality standards and conducting more marketing activities as a way of working towards this growth. My suggestion to the entrepreneur is that he offers a unique product and that he hires one more person.