Description
As an operations management consultant to the food truck owner, you are required to critically evaluate the operations management concepts presented in the given case study and complete the assigned tasks. You must provide an insightful analysis of the case using theories, literature, and industry practices covered in this course.
1. Define and discuss three (3) competitive factors and how Roxy`s Grilled Cheese focuses on their performance objectives related to these competitive factors.
2. Evaluate the challenges Roxy`s have in forecasting service demand. How could Roxy`s maximise revenue during the low demand periods?
3. Reflect on the pros and cons of product and process design strategies Roxy`s currently utilises. Suggest ways in which Roxy`s can overcome the current challenges.
4. As discussed in the case study, during busy times, total wait times from arrival to departure can be upwards of 16 minutes. There may be unusual tactics Roxy`s could potentially use to better engage customers and keep them satisfied during long wait periods. Using the principles that you have learnt in this course, analyse and discuss three (3) strategies that Roxy`s could adopt to reduce the perceived negative effects of queuing/waiting.
5. Analyse and justify how decisions made about human resources at Roxy`s can be constrained by other operational decisions.
6. Some cities in the US are more profitable for food truck owners and provide a friendlier environment for food truck operations. Evaluate and justify the pros and cons of supply chain and inventory management that Roxy`s may face if they were to relocate to either Philadelphia, Pennsylvania OR Portland, Oregon.
7. Investigate the cost of local license and permit requirements for food trucks compared to that of a brick-and-mortar restaurant to be located at Gold Coast, Australia. Case Study: The Food Truck Landscape
Case Study
The Food Truck Landscape
Food trucks were not always the culinary force they are today; in fact, the prevalence of food trucks is relatively recent, with enormous growth occurring in the segment over the past several years. What were once considered squalid vendors with subpar offerings, food trucks have been transformed into stylishly branded catering mobiles with an array of innovative cuisines.
Figure 1: Food trucks
Many attribute the birth of the modern food truck revolution to Kogi BBQ’s Korean Taco truck in Los Angeles in late 2008. Kogi BBQ rolled out a product never seen before; high quality, unique, artful flavours in a mobile format – accompanied by a strong social media campaign and devout fan base. At its start, The New York Times stated: “The food at Kogi Korean BBQ-To-Go, the taco vendor that has overtaken Los Angeles, does not fit into any known culinary category” (Steinhauer, 2009, p. 4).
However, Kogi was the tipping point of a larger trend. The recession in the late 2000s created a harsh economic climate, particularly for hospitality businesses. Food trucks became an opportunity for entrepreneurs without the capital to begin, or maintain, brick and mortar restaurants. Initial investment cost for mobile vending is considerably less. According to a study by Food Truck Operator, Inc. (Food Truck Operator, 2019), depending on the location, the average cost of starting a food truck business in the US is around US$ 75,000 and US$ 250,000 for a truck with a power generator and a working kitchen; whereas the average revenue stream from the food truck is approximately US$ 290,000. This is 10 times lower than the cost of opening a brick-and-mortar restaurant.
The popularity of modern food trucks received a push from high visibility in popular culture with TV shows like The Great food Truck Race and Eat Street. Because of the way food trucks have marketed themselves using social media to win “followers” over customers, millennials have discovered and tracked down local food trucks by checking updates on Twitter, Facebook, Instagram, Foursquare and Pinterest. Food trucks began popping up across the nation, asserting their presence – with food trucks industry in the US growing 9.9% per year on average over the five years between 2018 – 2023 (IBISWorld Inc., 2023), representing the single fastest growing sector of the restaurant industry. Growth continued and the mobile eateries proved they had staying power. Currently the US food truck industry is valued at US$ 1.5 billion, with the market expected to grow by 0.4% in 2023 (IBISWorld Inc., 2023).
These are not the trucks of the past. Today’s food trucks have established themselves as legitimate eateries, with high sanitary standards. A study by Shah (2014) found that food trucks in numerous cities received the same or less health and safety violations than their brick-and-mortar counterparts. In Los Angeles, food trucks received nearly half the citations. Not only have the trucks shed their unhygienic image, but they have also transformed their food product. The simplistic was substituted for the gourmet; inspiring, innovative flavours on par with those found at restaurants.
The plethora of cuisines represented by food trucks ranges almost as far as the imagination will allow, with everything from Korean tacos to Vietnamese sandwiches to Southern chicken and waffles. According to research done by Miller and Washington (2014), hot sandwiches dominated the food truck scene, with 71% of trucks offering some version of a hot sandwich (other categories specified in the assessment included Mexican food, cold sandwiches, soup, salads, pasta/Italian and other) (Miller & Washington, 2014).
While the myriad of high-quality food available is a large part of food trucks’ popularity, it is the rapidity of service which further elevates the trucks’ position. Miller and Washington (2014) also found that convenience drives demand for food trucks – particularly for lunchtime and late-night consumers. When surveyed, consumers indicated when p--Message truncated--
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