Abstract
Engaging in the food truck industry can be a step forward for Dough Pizza as the company has already gained a loyal customer base. Reaching new clients is possible by offering a mobile way of trying the restaurant’s specialty dishes. Dough Pizza will be successful in the market because it has a loyal customer base who will be more likely to support their favorite restaurant.
Corporate Social Responsibility
Considering the concept of Corporate Social Responsibility (CSR) is essential for Dough Pizza as it is successful in its market and is expected to give back to the community. CRS is a broad concept that denotes a self-regulating business model that allows an organization to be socially accountable to the public, relevant stakeholders, and itself (Werner, 2009). Engaging in CRS implies operating in a way that improves the environment and society rather than negatively affecting them (Guillen & Garcia-Canal, 2012).
Such efforts should be a part of Dough Pizza’s strategy because the company has already grown its business and is at the point of development when it can give back to society. While CSR programs are usually implemented in large corporations, setting high standards for ethical behavior in the industry can benefit Dough Pizza.
For the organization, the commitment to sustainability and community welfare has the potential for improving the image of Dough Pizza. For example, Starbucks has achieved its CRS milestones such as providing 99% ethically sourced coffee, creating a network of farmers around the world, contributing to community service, and providing education to employees. Dough Pizza is recommended to follow this model and invest in CRS in regards to the processes and resources.
This means that the company should develop a strategy within which it will work with only local food suppliers and farmers, provide education and training to their workers, engage in low waste practices, use renewable energy sources, and engage in community improvement programs. These aspects can be integrated into Dough Pizza’s strategic plan by setting CRS objectives and implementing continuous quality improvement measures to reach them.
Pursuing Industry
Among the ten possible growth industries that have been explored previously, it is recommended to consider mobile food services as a potential opportunity for Dough Pizza. A mobile food truck business is seen as an efficient way of expanding existing restaurant sales. While previously food trucks have been associated with quick and simple foods like ice cream, hot dogs, and sandwiches, the current industry boasts of a variety of gourmet offerings. It is important to mention that in the United States, the value of the food truck industry is continuously increasing. According to Statista (2019) data, in 2015, the “value of the US food truck industry increased to $856.7 million and is expected to reach $996.2 by 2020” (para. 5).
Selling food street-side dates back to the late seventeenth century when living conditions were poor, and many citizens lacked resources to prepare their own meals. Street vendors sold food from their carts on street kitchens, and the tradition continued to flourish worldwide, especially in non-rural areas (Mealey, 2019). The first gourmet food truck was opened by Roy Choi in 2008 in Lost Angeles and was called Kogi.
Due to the large selection of delicious food offerings and innovating, the chef opened four additional trucks in the city. According to Mealey (2019), there are more than 4,000 food trucks across the country, with the annual revenue growing by 7.9%. It is important to mention that state regulation regarding food trucks, which means that in some areas they may be more popular than in others.
Consumers aged between 18 and 34 are the most likely to purchase meals from food trucks, which suggests that owners should adapt their marketing strategies to this target population. The second-largest target audience includes customers aged between 35 and 44, with the older generation being the least likely to purchase food from trucks. However, it is notable that “older diners would be much more likely to visit a food truck from their favorite restaurant, with 53% stating they would patronize a food truck of their favorite restaurant” (Statista, 2019, para. 3).
In developing the strategy for Dough Pizza, the restaurant should consider these target populations and include them in marketing. Kinds of products needed from outside sources include equipment for the food truck, the truck itself, produce for making food, as well as packaging for food-to-go.
Dough Pizza will be successful in the market because it has a loyal customer base who will be more likely to support their favorite restaurant. Offering pizzas and sub sandwiches to customers on the go is a great solution for the business because of the expansion of a customer base as well as developing close connections with those who visit Dough Pizza on a regular basis. In addition, the restaurant can engage in promotional actions to attract clients and develop new dishes to extend the selection of dishes.
In regards to barriers, it should be mentioned that not every neighborhood allows food trucks because of the possible legal limitations in some areas. Also, the mobile food truck business requires permits and licensing, which can be expensive and require renewal on an annual basis (Mealey, 2018). Food trucks are also subjected to frequent inspections to ensure that their owners follow the established rules and regulations on safety. Overall, there is great potential for Dough Pizza to engage in the food truck industry; however, some adjustments and new developments are needed for ensuring the success of the business endeavor. Proper policies and the following of industry rules represent the main way of dealing with the identified barriers.
Contract Manufacturing Partnership
Contract Manufacturing Partnerships (CMP) have been seen as beneficial for establishing positive connections between brands and contract manufacturers to reach business objectives. Such partnerships are usually created to gain insights on new product development, ensuring regulatory compliance and quality, achieving supply chain transparency, and reaching a competitive advantage. In the case of Dough Pizza’s extension to mobile food trucks, a CMP will be associated with a cooperative endeavor in which the company will engage other businesses to work to gain profit from the expansion.
In the company’s case, a CMP will be beneficial for accelerating Dough Pizza’s readiness for the new market entry because of the need to use new equipment and resources that the company has never used previously. For example, cooperating with a company that manufactures specialized equipment for the food truck may be of benefit to Dough Pizza. Such cooperation can be based on an advertisement; for example, the truck can include both Dough Pizza’s and the manufacturer’s logos to attract attention to the fact that the two companies cooperated to bring mobile food to customers in the area. Thus, the key goal of establishing a CMP is linked to Research and Development efforts to improve the position of Dough Pizza in the market and offer customers a new way in which they can engage with the company.
References
Guillen, M., & Garcia-Canal, E. (2012). Emerging markets rule: Growth strategies of the new global giants. New York, NY: McGraw-Hill Education.
Mealey, L. (2018). 10 things to know about staring a food truck business. Web.
Mealey, L. (2019). A history of the food truck. Web.
Statista. (2019). Industry value of food trucks in the US 2014-2020. Web.
Werner W. J. (2009). Corporate social responsibility initiatives addressing social exclusion in Bangladesh. Journal of Health, Population, and Nutrition, 27(4), 545-562.