THE FOOD CART BUSINESS IN THE PHILIPPINES
Of all the five senses, the sense of taste has a distinguished value because it is the sense with which we enjoy food regardless if it is traditional or just your normal fast food fare. The food business has always gained more ground than other types of businesses simply because it addresses a basic human need – food. There are many ways for setting up a food business, including but not limited to, as part of a hotel, as its own separate restaurant, roving food trucks, and of course the ever popular food carts. The difference between food trucks and food carts is that they are fixed and unlike food trucks, food carts needs to be moved by some means.
Food cart is a mobile kitchen usually set-up on the streets, malls, schools and offices that basically aims to address customers’ food needs much like regular fast food restaurants. Now-a-days franchising food cart business has flourished all over the world as they are easy to manage and relatively easy to start. Franchising is a business method in which the franchisee (the buyer) runs a business by using the system and license trademark of the franchisor (the seller). The franchisor must undergo a franchise development process to set up a franchise that will define the franchise structure and rules and obligations for the franchisee. The franchisor can do this on his own if he is qualified enough and understands well or he can consult with professional franchise experts to guide him. Hence when on franchises, one uses already proven (hopefully – you have to do your background check) methods and techniques.
Looking upon the market trends and greater revenue prospect, the franchising business is thriving in the Philippines as well. The Philippines is considered to be the franchising hub of Asia where franchising business has made remarkable growth in the past few decades in sectors; including retail clothing, education and training, hospitality and wellness, personal care, cafes, confectioneries and bakeshops, and food carts. Franchising Food cart business has made tremendous growth in the Philippines – a food cart business can be started ranging from P 20,000 to P 300,000 depending upon the type of food cart you opt for; a franchise or food product/brand of your own. The reason behind popularity of franchise food cart is simple: it needs a small capital, easy to set up, movable and less risky in context of business loss. In short Franchises work because they are already running successful businesses. A food cart business has a greater chance of success because you offer cheap prices making it affordable for a large range of customers. Today most of the fast foods chains offer food cart franchise opportunities at very low prices including the cart, the product, uniform and training of the crew. Availing franchise opportunities may be considered better than opting to sell your own product because you don’t need to introduce your product to the customers or even market to new customers. Instead you can target the existing customers of the product/brand and offer them your services at cheap prices.
People love to eat food that is easily available and particularly ones that are available at cheap prices. All you have to do is to make your food cart look good enough to attract people towards it and assemble it at a location where you can target more and more customers. You should choose a location where most of the population is likely to pass by and they can easily see what you are selling.
Setting up a food cart is assumed to be a cheap business to start with. After you start getting profit you can invest on another food cart and hire more personnel to get the job done for you or you can sell them to others. In this way people may enter into a large business, though they started from a small investment. Food business is considered to be the most successful business in Philippines.
It is a fact that the food cart business is becoming more popular among the entrepreneur of Philippines because it is easily manageable, requires a small capital, is easy to set up and has a low risk of business failure.
*image from http://www.flickr.com/photos/stuart_spivack/