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SWOT Analysis:
Strengths:
 Our major strength is being able to reach to our customers ourselves since we are
mobile
 Food truck business offers a high level of personal customer service and results in good
gross margins
 US is currently leading the way for handcrafted ice creams and this stands in strong
support of the products we have to offer for our customers
 Since the annual average temperature in Dallas is 64.3˚F, sales will be in demand for
most of the time in a year
 Wide variety of unique flavors of ice cream available to the consumers
 Low entry barriers
 Limited competition in the ice cream food truck business in the Dallas area and we offer
reasonable prices
 Limited risk of startup failure
 Low overhead and Low startup costs
 No big name competitors in the gourmet ice cream food truck businesses
Weaknesses:
 Healthy competition from other traditional dessert vendors like Braum’s, B&R, Yogurt
land etc
 Since we are starting a small business with a single food truck, we need to target specific
areas that would provide us with enough income to cover up our initial investment
quickly
 Ice creams are perishable goods i.e. they melt very soon
 High transportation costs
 Limited flexibility in pricing
 Risk associated with competitors offering similar products
 Can have only limited stock in the truck – which might pose a weakness during busy days
Opportunities:
 Not being tied to a specific location gives us an opportunity to grow our business to the
level we want it to
 Ability to lease additional food trucks or buy some on our own
 Flavor drives consumer purchases to a large extent (nearly 70%) and offering innovative
flavors for the customers can help the business provide better-for-you options that
consumers demand
 Opportunity to start catering for various events like birthday parties, wedding parties etc
 Flexible hours, so we can work it as a second job to establish other future opportunities
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 Ability to use social media and the web heavily to develop pages on Twitter, Facebook,
Google+ and Yelp to reach out to our target market more efficiently
Threats:
 Changes in the regulations for ice cream truck business in the Dallas area can impact the
business
 Competition from similar businesses that operate in the same area or surrounding areas
as we do
 Traffic in Dallas can cause delay and prevent us from getting to the location within time
 Consumers can switch to other substitutes with better health consequences such as
Greek yogurt and frozen yogurt
 Product is already sold in a few brick and mortar stores
 Appliances and other equipment on the truck might result in expenses for their repairing
since they are not designed to be on wheels
 Off-seasonal sales can bring very less income that wouldn’t be sufficient to cover the
expenses
 Economic downturn effects the purchasing/spending power of the customers
Situation and Environment Analysis:

Competitors:
Except for Chills 360 and Orchid city in Dallas metropolitan area, there are no other direct
competitors in our rolled ice cream business. Nevertheless, these two competitors operate out
of in-store only. There is a great deal of indirect competition in the form of traditional ice cream
parlors and shops, yogurt zones, convenience and drug stores, premium restaurants and other
traditional ice cream food trucks. For example, Walgreens, 7 Eleven, B&R, Ben and Jerry’s,
Cheesecake Factory, Braum’s, Coolhaus, Yogurt Land, Yummilicious to name a few. Some of
these competitors have strong social media presence and are found at special events and
festivals that we would like to target in the future. Yet none of these food truck businesses are a
commissary to Pecan Lodge that makes our strength to a wider audience within a short time.
Pecan lodge is an amazing BBQ eatery in the whole of Dallas. Having a delegation by Pecan
Lodge to us would help us leverage the wide crowd that enjoy visiting Deep Ellum.
Economic factors:
According to Census ACS 1-year survey, the median household income in Dallas metro area is
$61,644 which is $5,869 greater than the US median household income.
Above is the figure that shows the trends in median household income in Dallas, US, Texas (in
the order from top to bottom starting 2005). In Dallas, the percentage of average annual
expenditure that is spent on food is 12.7%. Through good marketing effects and promotions, it
is not difficult to convince the customers to spend an average of $7 for the service we offer.
Cultural/Social trends:
Over the 20th century, the population in Dallas has become diversified as it grew in size and
importance. The population demographics by races for Dallas in 2015 and 2016 is as follows:
White = 50%, African American = 24%, Asian = 2% and Others = 24%. 42% of the population is
Hispanic or Latino of any race. The ice cream markets in the US are almost saturated and the
current social and cultural trends are more influenced by the artisanal skills. Since our business
is more about offering this experience, it would make a good fit in this current era.
Impact of technological changes:
Our business basically differentiates itself in providing the customers with a gourmet dessert
experience. Any technological advancements that might help the customers enjoy it at their
home itself can impact the business. Due to increase in the number of websites that provide the
recipes for these products online, any innovations in technology to create powerful kitchen
appliances enabling people to prepare their own ice creams in much less time can become a
threat to our business. On the other side, the increasing marketing trends using social media
and internet can help the business boost its growth with much less expenses. In the current
situation we could ask the customers rate their experience on the various webpages of Pecan
Lodge that would help us increase our customer base. We could consider to establish our own
webpage and app in the future that would increase our accessibility to provide better customer
service and experience.
Political and Legal factors:
The food truck requirements should meet the guidelines set by the Consumer Health Division,
Mobile Food Facility in the city of Dallas. The food truck needs to fulfill all the requirements for
getting a mobile food preparation vehicle (MFPV) permit to start operating. This includes getting
an operating base for the food vehicle approved, notarized letter of authenticity of the vehicle,
having a current registered food service manager on-site during the food service operations.
Since we are applying for our initial permit with the city of Dallas, vehicle plan review must be
approved stating that the food truck meets all the safety and sanitation specifications. Must
have daily vending itinerary and written agreements from property owners (Klyde Warren Park
and Pecan Lodge) granting permission to vend at their locations and use of restrooms for the
employees. The business needs to have proper fire permits, vehicle permits like the truck
registration and Texas state driving license for the driver, proof of liability insurance and other
parking permits. Any change in the above regulations might create a fluctuation in the business.
Natural Environment:
Dallas is one of the hottest cities in the US. On an average, Dallas has an annual temperature of
64.3˚F with as high as 77.1˚F and as low as 51.5˚F. Since the ice cream is more of a warm-
weather business, we will have a perfect start in the city of Dallas and have high average sales
for most of the time in a year. However due to unseasonable weather challenges, the sales can
have an impact. Even the weather forecasts can sometimes result in fluctuations in the sales.
During this time effective planning upfront on adjusting the labor staff and operating hours
scheduling can help the business cope up.
* Mobility
* Low entry barriers
* Less risk of failure
* No big name competitors
* Warm weather in Dallas
* Artisanal food experience
* Wide variety of flavors
* Perishable product
* Limited stock
* Indirect competition
* Transportation costs
* Limited flexibility in pricing
* Expansion
* Innovative flavors
* Catering services
* Social Media and Technology
* Changes in regulations
* Similar businesses in operating area
* Traffic
* Customer defection
* Equipment maintenance
* Off-seasonal sales
* Economic downturn effects
Appendix
References
1. http://dallascityhall.com/departments/codecompliance/restaurantandbar/DCH
%20Documents/pdf/restaurant_bar/MobileFoodPreparation_vehicle.pdf
2. https://www.fundera.com/blog/the-economics-of-running-a-food-truck
3. https://www.deptofnumbers.com/income/texas/dallas
4. http://www.bls.gov/regions/southwest/news-
release/consumerexpenditures_dallasfortworth.htm
5.
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