Why Food Carts Worked

Food cart businesses boomed a couple of years back. A lot of people say how could franchisors saw it coming while we did not? Well I always hear that when we see new businesses. But why did food cart business boom in our country? And why did it happen so fast?

These businesses would usually be found in public places where foot traffic is heavy. These are small food stalls at the side of the streets, train stations, bus terminals and many more people heavy places. Two unhappy people manning the cart with the food they offer which are usually less than 10 kinds of products. Though they offer only a few items in each stall, a number of food cart side by side can be found. From siomai, to fried noodles, to quail eggs, to sisig, and to the newest I have seen which is the scramble (Filipino desert sold in the streets).

So why did this kind of business clicked?

SPECIALIZED ITEM

I say specialized item because usually a food cart revolves around one type of product like siomai. There are food carts that only sell siomai. Other stalls have added items like fried noodles or rice. This makes it easy for franchisors to sell their item to numerous people at a time and at the same time get their brand easily remembered.

PRICE

Food cart products are budget friendly. Usually priced at 50pesos or below, the price triggers the impulsiveness of people. People always think that few pesos wouldn’t hurt their budget anyway. And for a cheap price that could fill one’s stomach, it’s a sure hit in a country like ours.

FRANCHISING

Franchises have a system that clearly have worked, and a brand that already is known by public. Everything is provided for the investor – cart, use of name, equipment, access to commissary, trained employees. Since there have been increasing number of entrepreneur-wanna-bes in the country, franchising would be an easy and cheaper way of doing business. Investors just to give the money and everything would be provided to you including training how to run your own business.

CHINESE INFLUENCE

Since there are a lot of Chinese in the country, Filipinos learned to love Chinese food as well. Not only is it delicious, it’s also easy to make. Again budget friendly items especially food will surely attract Filipinos. Some of these foods that Filipinos got to love are Siopao and Siomai.

COMMISARRY

Having a commissary just saves food cart owners time, money and effort because there wouldn’t be a shortage of goods unless they screw up their own production. Having a steady stream of goods coming in with consistent quality, this gives franchisors more time to give effort on marketing and selling. This would create a huge gap to those planning to imitate a franchise business.

MARKETING STRATEGY

No matter how many franchisors are scams or just selling false promises, they get entrepreneur-wanna-bes to invest in their franchise business. Kudos to their marketing strategies! Call it well marketed or scam practices, it still worked. They make their presence felt in any media possible to get their target clients – internet, magazines, expos, and even sometimes giving fliers in public places.

POVERTY

It’s sad that the Philippines, a third world country, is rich in resources but the government just can’t seem to find a way to utilize it well in favor to our country. On the flip side, due to budget constraints, food carts somehow solve problems of poor citizens. This is a quick fix for a starving stomach.

After all those factors mentioned above, location and marketing would still be the biggest factor for any business success. For food carts, location played a very big part because these are low-cost products that would need people who suffer budget constraints. Marketing also is a big factor because this would get more investors to buy the franchise. More franchisee, the more stores in more locations there is.- DE