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Mexico mejor is our only direct competitor in that we both sell burritos. However, their burritos are significantly smaller and less delicious. In addition, the inclusion of guacamole on our menu gives us a competitive edge. We hope that this unique selling proposition will be a strong enough incentive for us to retain customer loyalty. Competitive rivalry, we expect that the success of Holey moley will encourage others to mimic our business model.
Certainly, we believe that our competitors will quickly adopt guacamole into their own menus. However, as Mickey jordans guacamole is a literal award winner, we feel that Holey moley will nonetheless retain. C.s increasingly sophisticated and palate sensitive customers. Again, holey moley will win on portion sizes and taste. Key customers, the key customer base for Holey moley is young professionals working. Between the ages of 22-43. In a survey done of local businesses in the planned area of our operation, we found that those who eat out spend over 100 a week. Of that 100, respondents reported spending 30 on food truck cuisine.
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Area, giving Holey moley ample opportunity to negotiate favorable prices for our raw materials. In addition, pat Jabronis existing relationship with Dan Mahans Local Butchery has given Holey moley the ability to cost-effectively sell larger portions of meat for a cheaper price. Bargaining power of buyers: Although there are a variety of food trucks in our location, none offer products similar to holey moley. The growing trend towards gourmet guacamole allows Holey moley to maintain a higher price point. Since holey moley offers larger portions that our competitors we do not expect to encounter any pressure to reduce prices. Availability of substitutes, currently, essay there are no other food trucks selling guacamole. However, there are three other food trucks selling Mexican food: Habanero juans, which specializes in spicy hard tacos. Mexico mejor, which specializes in burritos and salsa. Loco moco, which specializes in quesadillas.
Is also a rapidly expanding city and its population is becoming increasingly wealthier. It is estimated that the food truck industry will be worth.7 billion with the next five years. Naics classification 722330: Mobile food Services. Threat of plan new entrants: The threat of new entrants within the food truck industry is extremely high given its popularity and ease of entry. We estimate an average of 10 new food trucks enter the. Even now, locations have become a matter of dispute amongst food truck owners, as premium real estate is becoming sparser and more competitive annually. However, holey moley has secured a prime location on k street under favorable terms for a 5 year lease in which the rent will remain constant. Bargaining power of suppliers: In all, there are 10 farmers markets around the.
guacamole. . Based on a recent article in the washington Post, guacamole has become one of the most sought after snacks. Currently there are no food trucks selling guacamole. Even if there is additional competition, Mickey jordans original guacamole recipe won first prize at the annual Boston guac Fest Competition giving Holey moley an edge over the competition. Market Growth, currently, there are 125 food trucks. Although this represents a 125 increase in food trucks over the past five years, there is nonetheless significant room for growth. By the end of year two in our business plan, we anticipate the completion of the new Chevy chase business plaza near our planned location on K street. As a result, we expect profits to rise significantly in the third year due to the increase traffic near our location.
From these results we estimate the total addressable market to be over 500,000. A delicious bowl of guac. Through our in-depth market research done through polling, we have discovered that one. Consumers greatest frustrations is the price of a meal and the corresponding portion size. With regards to portion size, mini people are looking for a high-protein and reasonably priced meal. However, with the struggling economy, restaurants are cutting portion sizes and increasing prices much to consumer dismay. Holey moley intends to fill this market need by increasing our portion sizes and keeping prices low.
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Market overview, since the 1960s, the food thesis truck industry has become a staple of the American food scene. Currently there are about 50,000 million food trucks operating throughout the United States. . The food truck sector is one of the best performing sectors of the food-service industry. The food truck sector is expected to rise by 15 by 2016. . By 2017 the food truck industry is expected to net.7 billion in revenue. This is a huge step up from 2012 when food trucks reached an income of 650 million. Market needs/Trends, in four years the food truck industry has increased by 125 in Washington. C.We have estimated that the total market in Washington. Residents in a five block radius of our planned location, we found that 80 of respondents rated themselves highly likely to consume food truck cuisine at least once a week.