a study of situation and potential of small and medium ...

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Journal of Global Business and Social Entrepreneurship (GBSE) Vol. 7: No. 23 (January 2022) page 50-60 | www.gbse.com.my | eISSN : 24621714 50 A STUDY OF SITUATION AND POTENTIAL OF SMALL AND MEDIUM ENTERPRISES IN FOOD TRUCK INDUSTRY IN NAKHON RATCHASIMA PROVINCE Phuangpornphat Viriya 1 Faculty of Management Science, Nakhon Ratchasima Rajabhat University, Nakhonratchasima, Thailand; [email protected] Ekkarat Ekkasart 2 Faculty of Management Science, Nakhon Ratchasima Rajabhat University, Nakhonratchasima, Thailand; [email protected] Yuttakron Ritthaisong 3 Faculty of Management Science, Nakhon Ratchasima Rajabhat University, Nakhonratchasima, Thailand; [email protected] Isari dejtanon 4 Faculty of Management Science, Nakhon Ratchasima Rajabhat University, Nakhonratchasima, Thailand; [email protected] Abstract: The objective of this research aims to identify the situation and behavior of the food truck business in Nakhon Ratchasima Province. By using a research methodology mixed methods research. The sample group is 400 consumers who come to use the food truck service, entrepreneurs’ food truck 10 people and 3 related agencies, namely government, private and food truck manufacturers. The research was conducted using a questionnaire and interview forms as tools for data collection. The results showed that the current situation food trucks have exponential growth rates because the demand of consumers who use the service is higher. In addition, entrepreneurs have a high potential in the food truck business, both the previous and current income. Consumer behaviors with the principle of 6Ws 1H was analyzed in modern ideas and changeable behaviors and trying new things 30.50%, choosing the uniqueness of the car/food menus (26.00%), becoming the leader of the food truck trends (22%), coming out with friends on Saturday and Sunday holidays in the events (50.50%, 43.75% and 33%) and planning of the service (36.25%). The potential of the food truck business showed a strong point with various types of food and beverages available due to the good taste of delicious food and the strong agglomeration under the Food Truck business group, Nakhon Chai Burin. Moreover, an opportunity for the government, private sectors, and financial institutions supported both budgets and promotion activities for sustainability. Keywords: Situation, Potential, Food Truck Business 2022 JGBSE Article Received:25 November 2021, Revised: 03 December 2021, Accepted 11 January 2022 1. Introduction At the present, the growth of the mobile food distribution industry or food truck is growing rapidly every year. Currently, there are more than 1,500 food trucks across the country, divided into savory food 57%, dessert 14% and beverages 29%. Food Truck's business was distributed in over 70% of Bangkok and the rest. In the region, the initial investment of food trucks costs 1,000,000 baht per vehicle and an average

Transcript of a study of situation and potential of small and medium ...

Journal of Global Business and Social Entrepreneurship (GBSE) Vol. 7: No. 23 (January 2022) page 50-60 | www.gbse.com.my | eISSN : 24621714

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A STUDY OF SITUATION AND POTENTIAL OF SMALL AND

MEDIUM ENTERPRISES IN FOOD TRUCK INDUSTRY IN

NAKHON RATCHASIMA PROVINCE

Phuangpornphat Viriya 1 Faculty of Management Science, Nakhon Ratchasima Rajabhat University, Nakhonratchasima, Thailand;

[email protected]

Ekkarat Ekkasart2 Faculty of Management Science, Nakhon Ratchasima Rajabhat University, Nakhonratchasima, Thailand;

[email protected]

Yuttakron Ritthaisong3 Faculty of Management Science, Nakhon Ratchasima Rajabhat University, Nakhonratchasima, Thailand;

[email protected]

Isari dejtanon4 Faculty of Management Science, Nakhon Ratchasima Rajabhat University, Nakhonratchasima, Thailand;

[email protected]

Abstract: The objective of this research aims to identify the situation and behavior of the food truck

business in Nakhon Ratchasima Province. By using a research methodology mixed methods research. The

sample group is 400 consumers who come to use the food truck service, entrepreneurs’ food truck 10

people and 3 related agencies, namely government, private and food truck manufacturers. The research

was conducted using a questionnaire and interview forms as tools for data collection. The results showed

that the current situation food trucks have exponential growth rates because the demand of consumers

who use the service is higher. In addition, entrepreneurs have a high potential in the food truck business,

both the previous and current income. Consumer behaviors with the principle of 6Ws 1H was analyzed in

modern ideas and changeable behaviors and trying new things 30.50%, choosing the uniqueness of the

car/food menus (26.00%), becoming the leader of the food truck trends (22%), coming out with friends on

Saturday and Sunday holidays in the events (50.50%, 43.75% and 33%) and planning of the service

(36.25%). The potential of the food truck business showed a strong point with various types of food and

beverages available due to the good taste of delicious food and the strong agglomeration under the Food

Truck business group, Nakhon Chai Burin. Moreover, an opportunity for the government, private sectors,

and financial institutions supported both budgets and promotion activities for sustainability.

Keywords: Situation, Potential, Food Truck Business

2022 JGBSE

Article Received:25 November 2021, Revised: 03 December 2021, Accepted 11 January 2022

1. Introduction

At the present, the growth of the mobile food distribution industry or food truck is growing rapidly

every year. Currently, there are more than 1,500 food trucks across the country, divided into savory food

57%, dessert 14% and beverages 29%. Food Truck's business was distributed in over 70% of Bangkok and

the rest. In the region, the initial investment of food trucks costs 1,000,000 baht per vehicle and an average

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income of 900,000 baht/vehicle/year, with a fast-growing total market value of 1,350 million baht from

the statistics in the past 2 years (approximately in 2015-2016). An annual growth was at 100% and

expectedly grew from 3,500 cars across the country within 5 years, especially the growth abroad. The

investment value in other Provinces was over 3,500 million baht in revenue from sales of more than 8,550

million baht in generating the income for the basic economy and communities across the country. (Office

of the National Economic and Social Development Board Office of the Prime Minister, 2016).

Food truck business, also known as mobile food trucks, that can modify the place of sale It has the

image of a modern restaurant. It is a form of western lifestyle. Looks interesting Therefore, it is another

business that meets the needs of the fast-paced lifestyle of the city people very well Rattanan Y, Waranya

T (2016). The food truck business consists of related and supporting businesses divided into 8 business

segments: 1) Automobile and related businesses, 2) Finance and service businesses, 3).

Education and personnel development business, 4) Exhibition business and public relations, 5) food and

beverage businesses, 6) shops, shopping centers and flea markets, 7) food operations and sales, and 8)

technology-related businesses, website and communications to promote the food truck business in

Thailand and increase the target (3,500 cars) for more than 20 billion baht in working capital in this

business network. (Office of the Permanent Secretary, Ministry of Industry Ministry of Industry, 2016)

Consequently, the research team has realized the importance and opportunity of the food truck

industry to extend from the automotive and parts industry with the processed food industry in Thailand.

The original capital, therefore, was in the strong situation and potential of small and medium-sized

enterprises in the food truck industry business in Nakhon Ratchasima Province to promote, push and

cooperate with network agencies to upgrade the industry. Mobile food stores or food trucks to grow

sustainably are cleanliness and safety standards accepted in society and expanded to the ASEAN region

further.

1.1 Objective

To study the situation and potential to create marketing opportunities for food truck industry.

2 Literature review

2.1 History and background

Food trucks backed to the days of Texas cowboys in the era of the first American immigrants who had to

travel in a group with trading caravans from the north to the south to prevent attacks from thieves and Red

Indians. In the caravan, carts were loaded with food and cooking tools to feed the caravan. However, the

food truck business model dates backed to the 1800s in Texas, the United States, which had been available

since the post-civil war era in America when the economy was very low. Therefore, trucks were used to

carry dry food for sale to very poor herdsmen such as corn, beans, smoked meat, beverages, and quinine.

In those days, this mobile food truck was known as the Chuck Wagon (Fahlevi, M., Zuhri, S., Parashakit,

R. & Ekhsan, M. (2019), which was dubbed the prototype of the Food Truck (Charles Goodnight). During

the year 1866 by his herding work, he felt that there was a lot of chaos and difficulty having to prepare

each meal along with the cattle combined with the image of a US military vehicle that looks strong but

spacious to be suitable for modification and decoration. It was not difficult, so he tried to decorate the

interior as a small kitchen with shelves, drawers, cooking areas and food preparation areas. The first food

items were sold as general foods without much cooking, such as beans, corns and coffee and trucks were

recorded for food trucks in the 1880s when Walter Scott modified his car by cutting out a side hatch to sell

lunch to journalists parked in front of a newspaper office in Providence Rhode Island for sandwiches, pies

and coffee only. Around the same time, Thomas H. Buckley built a food truck with additional cooking

equipment in it with a sink and stove in Worcester, Massachusetts. The food trucks he produced were in

many different forms, so the food trucks became more and more popular in America, and it was also used

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by the US Army as a field kitchen for troops. In the 1980s, food trucks were introduced to serve night shift

workers in popular New York commercial districts. The shop was “The Owl” until food trucks became a

business when "The Owl" was the first brand that made food trucks popular and was also a model of food

truck business. The food truck trend was widespread in states in the United States such as the Hawaiian

Islands and the Hawaiian Islands with a large number of Japanese people. The food truck culture spread

to Japan, and it became very popular in many western countries like Europe or the Philippines, so the food

truck culture is the same model. Currently, food trucks have spread to many countries around the world,

including Thailand. National Geographic magazines reported that there were more than 5,500 food trucks

across the United States in 2014. The total revenues amounted to $828 billion with the reason of freshness

and the specialties of the food menu (Hawk, Z, 2013), which were cheap, easy to go, convenient, fast, and

also promoted through social media in order to reach the new generation a lot. Each store updated their

schedule of the parking location each day and it was nearly five million tweets related to the food truck in

2014. (Seksan, 2013)

For food trucks in Thailand, it has been happening continuously because the lifestyles of people have

changed as well as the growth of events to make food trucks for the highlight of the event. When food

trucks first started in Thailand, the originator of the food truck trend was "Daniel Thaiger Burger"selling

burgers. Initially, the store was located on Sukhumvit Soi 38 and then moved to a permanent shop located

on Sukhumvit Soi 23. On the other hand, Mother Trucker is one of the first brands of food trucks in

Thailand with the concept by 3 persons, Army Hinchiranan, Thanawut Aphithanakhun and Kanit Prapha,

as they found the opportunity from the fruit trucks on the road. Then, the idea was adapted to the new

generation coupled with seeing the food truck culture that sells American food on television. Thus, the

Mother Trucker is a big, black car with eye-catching decorations for selling American burgers in focusing

on the taste to satisfy Thai people for serving deliciousness to various places in the style of a mobile food

truck. Besides the Mother Trucker, there are also other new food trucks, such as Kamkin of

Chrysanthemum Muang Mun, regarded as a new food truck with differences by being a traditional northern

food truck for serving the original deliciousness, for example, Khao Soi, Laab Nuea, Nam Prik Ong, Kang

Ho, and others are modified menus for a better taste serve for the city people by selling food through booths

at various events and online. For that reason, food trucks should be another business model to increase the

opportunity to generate income for the business.

3. Research method

3.1 Population and sample

Male and female consumers aged 18 years and over, who purchase food trucks, and the total

population are unable to find the true number in calculating the sample (Cochran,1997:76). Hence, a non-

probability-based random sampling method was used in a convenient random sampling method. The data

was collected from sources as target groups such as Lang Mall Market, Save One Market, Night Wat Boon

Market, Night Bazaar, The Mall Terminal 21 shopping malls were in the number of places 7 shopping

centers for 60 sets each, totaling 420 sets when the questionnaire was checked for accuracy in

400 sets, 95.23%. In addition, collected entrepreneurs’ food truck 10 people and 3 related agencies, namely

government, private and food truck manufacturers in the Nakhon Ratchasima for 10 participants.

3.2 Research tools

The research was conducted using a questionnaire and interview forms as tools for data collection.

On the research tools, a closed-ended questionnaire is divided into 3 parts as follows:

Part 1 Consumer Behavior Analysis 6W1H

Part 2 Analysis of Strengths, Weaknesses, Opportunities, Threats

Part 3 Food Truck Business Potential Assessment Using 7s McKinsey Management Concepts

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3.3 Data collection

Secondary data were obtained from research studies from the information gathered such as newspapers,

journals, articles, publications, and related research

Primary data sources were obtained from questionnaires of consumers and food truck operators.

3.4 Data analysis

Perform data validation was used in basic statistics, i.e., percentage.

4. Research results

4.1 Food Truck Situation in Nakhon Ratchasima Province

In the current situation, food trucks in Nakhon Ratchasima Province were in an exponential growth rate

since the need of consumers as demand using the service was higher as a new alternative for the daily

consumption of goods and services. In addition, entrepreneurs have a high potential for food truck business

as supply for both existing and new operators.

Food truck businesses in Nakhon Ratchasima Province are quite a variety of food and beverage businesses.

From the study, the types of food truck businesses in Nakhon Ratchasima Province were noodle shops,

steak restaurants, salad shops, ice cream shops, beverage shops, barbecue shops, spaghetti shops, German

sausage shops, Ko Khun Yang roast beef shops, bread shops, fruit and vegetable shops, and dessert shops.

The examples of food truck operators in Nakhon Ratchasima Province are Western kebab Farang Korat,

Yamoshi restaurants, Gyoza, Cha Ha, Cha Ha Car Fe', Surry Hills Hotdog Food Trucks and Class Café

Food Trucks.

4.2 Demand of consumer characteristics food trucks in Nakhon Ratchasima Province

Consumers in Nakhon Ratchasima Province are in the kind of modern consumers including the

preparation or adaptation in terms of the consumption behavior. The trend has been accepted for

consumers due to aroused interests as a new consumption. Therefore, there have been rapid shifts in

consumption behavior to interest more food truck services in many factors that consumers take into

account in their consumption. For the analysis of consumer behavior, 6Ws 1H was applied using the

consumer behavior survey (Schiffman and et, 2007)

1. Who is the target market? For food truck business in Nakhon Ratchasima Province: Who uses the

food truck service? Anyone who uses the food truck service for males or females in any ages and

occupations in a lifestyle as follows:

Table 1: Who is the target market

Who is the target market percentage

1. Interesting in new things 30.50

2. by trend 22.00

3. dining out 13.75

2. What does the market buy? For food truck business in Nakhon Ratchasima Province: What is the

attraction on the food truck service? The sample group provided their answers as follows: Table 2:

What does the market buy

What does the market buy percentage

1. having the identity of food truck and the food menu 26.00

2. trying exotic food in a new menu as must-try food 20.00

3. viewing cooking on the truck as cooking on food trucks is fun and

impressed by viewing food trucks

14.50

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3. Why does the market buy? For food truck business in Nakhon Ratchasima Province: Why does the

market use the food truck service? The sample group provided their answers as follows: Table 3:

Why does the market buy

Why does the market buy percentage

1. Catching new trends and being a trendsetter to follow the food truck trend as

a popular trend. People go to eat at food trucks considered as leaders when

others ask them, so they feel as an important one

22.00

2. Showing others to know them as "hipsters", which means someone in a

culture to live a life that is different from others such as dressing or living in

society

20.00

3. Trying something new or interesting for must-try things 19.25

4. Who participates in the buying? For food truck business in Nakhon Ratchasima Province: Who

uses the food truck service? The sample group provided their answers as follows: Table 4: Who

participates in the buying

Who participates in the buying percentage

1. Friends 50.50

2. Partners 27.25

3. Family 17.50

5. When does the market buy? For food truck business in Nakhon Ratchasima Province: When does

the market use the food truck service? The sample group gave their answers as follows:

Table 5: When does the market buy

When does the market buy percentage

1. Saturday and Sunday holidays 43.75 2. weekdays after work 37.75

3. weekday lunch 16.50

6. Where does the market buy? For food truck business in Nakhon Ratchasima Province: When does

the market use the food truck service? The sample group gave their answers as follows: Table 6:

Where does the market buy

Where does the market buy percentage

1. events such as Art box events that are clearly organized, food trucks are 33.00 a great source of

lively atmosphere for the event

2. by the office 28.75

3. passageway 15.75

7. How does the market buy? For food truck business in Nakhon Ratchasima Province: How

does the market use food truck service? The sample group responded as follows: Table 7: How does

the market buy

How does the market buy percentage

1. planning in using the service 36.25

2. deciding immediately in using the service 24.50

3. visiting in every opportunity 21.00

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4.3Characteristics of supply for food trucks in Nakhon Ratchasima Province

Food truck operators need to be considered, not only “Quantity of Buyers”, but “Quality of buyers” as

well. Therefore, entrepreneurs must consider the concept of marketing mix as the one of success factors in

managing food trucks and beverages in Nakhon Ratchasima, which can be considered as follows:

1. Products of the food truck business mean products, services, and ideas that business operators

present to customers to meet their needs and customer satisfaction. The food truck business is not just a

mobile shop. It consists of related and supporting businesses divided into 8 business segments: automobile

and related businesses, finance and business services, education and personnel development, exhibition

and public relations, food and beverage shops, shopping centers and flea markets, businesses involved in

food operations and sales and technology business websites and communications. Thus, most

entrepreneurs agreed that food trucks should sell simple food such as sandwiches, burgers, pizza and drinks

due to the fact that the size of the kitchen area is not conducive. However, if food trucks have effective

management, sellers can sell a wide variety of food such as noodles, steak or various healthy foods, etc.

2. Prices of food truck business mean the amount of payment that customers pay in exchange for the

value and benefits of the product. The price of a product may vary based on consumer demand or

purchasing behavior. Food trucks are a middle-of-the-road alternative to restaurants and street food, so the

price point is a sensitive matter. Therefore, the proper pricing strategy is based on the positioning of the

restaurant and the menu items that the restaurant must have new ideas.

3. Places of food truck business refer to the process and method of selling products to consumers that

the business may choose to sell itself or through various agents. In addition, businesses may use

information technology systems in distribution channels. The marketing channels are very important to

communicate and build relationships with customers as the operator does not have a storefront, so the

relationship between the operator and the customer can be reduced and may be more difficult for regular

customers. Therefore, the communication channel can be used well in social media such as Facebook,

Twitter and Instagram because it costs low (or some may not cost it at all) and there is a channel for regular

customers to track where shops open that customer can follow up by making a fan page or Instagram. This

will make it easier for customers to reach your store through messages and various pictures.

4. Promotion of distribution of food trucks means a way to encourage customers to buy products by

using various methods such as advertising and public relations in the form of brochures, manuals, or

various websites. The highlight of food trucks in the main marketing strategy is attending events or going

to the shop at a street food event. Besides, it becomes a channel to create brand awareness for the market

of the organizers and helps to attract the attention of the main target audience as well.

5. Positioning of food trucks means products with quality, standard, outstanding, attractiveness,

unique, and difference from other places. The most outstanding features of food trucks are different from

other restaurants in that they can move the store directly to the customer group and choose the location

such as the big Night Bazaar or even the weekend market, fairs, and music festivals, or even in offices

with parking spaces to serve food to customers at a good location. Also, when there are a lot of people,

they park there without having to sit and wait for customers anymore. Importantly, there should be a

regular parking lot so that customers who are addicted to the taste can come back to buy again with

regulated and legal conditions. In addition, the food truck business has also received attention from

teenagers and working people who need urgency in their daily lives without sitting and eating in a

restaurant atmosphere. Moreover, food trucks are more attractive to customers than ordinary restaurants

to create a new experience for customers in another form as a type of street food, but with a more modern

standard format in creating a better eating environment both the taste of food and exotic food menu. The

decoration of the shop is attractive and has a tangible price. Therefore, food trucks are not only a trend,

but it may become a way of life in another culture in Thailand and grow more than the original country

itself, as there is more variety in food.

4.4 Characteristics of the food truck market in Nakhon Ratchasima Province

The food truck business that originated in Nakhon Ratchasima Province has spread to various areas,

especially in Mueang Nakhon Ratchasima District and other important districts described as follows:

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1. Markets are located with building structures for general food distribution, such as Lang Mall

Market and Muang Ya 100 Years Market in Mueang Nakhon Ratchasima District Nakhon Ratchasima

Province, etc.

2. Unstructured markets are located without buildings to sell goods and services, such as the Wat

Boon Night Bazaar, Pak Chong Night Bazaar, Pak Chong District and Bua Yai Morning Market in Bua

Yai District in Nakhon Ratchasima Province, etc.

3. Roadside markets are provided for food truck parking on various routes in Nakhon Ratchasima

Province to sell food, snacks and beverages to consumers, such as road routes around Nakhon Ratchasima

City Hall and the path in front of various temples in Mueang Nakhon Ratchasima District Nakhon

Ratchasima Province, etc.

4. Markets in department stores by various department stores in the Nakhon Ratchasima area are

provided for events about food festivals which often brings food trucks to create lively atmosphere in the

event regularly, such as The Mall Department Store Nakhon Ratchasima, Central Department Store

Nakhon Ratchasima and Terminal 21 Nakhon Ratchasima, etc.

5. The market takes place at various festivals organized by government and private sectors such as

the Bung Ta Luo Balloon Festival and the Chamber of Commerce Fair, Food Truck Caravan at Korat

Foodex event with great food all over Thailand.

6. Markets occur in favorable events and important days of the general public, such as weddings for

celebrating, organizing a retirement event for the whole group of civil servants, meeting of state enterprises

and private sectors, etc.

4.5 Network of food trucks in Nakhon Ratchasima Province

Food Truck entrepreneurs have managed their own business according to general business management

principles in terms of production finance and accounting management and marketing. The main

businesses related to the food trucks including both Backward Linkage and Forward Linkage as follows:

1. Backward Linkage

Backward linkage of food trucks in Nakhon Ratchasima Province can link to businesses related to various

types of factors used in the food trucks in two types of important businesses:

1.1 Food trucks in Nakhon Ratchasima Province were in a prominent area in the production

of food trucks. In the area, there are many food truck manufacturers, such as Meechok Transport

Co., Ltd., Cherdchai Cars Co., Ltd., and others. Each manufacturer has a standard car

manufacturer, and the manufacturer also accepts production in the form of orders allowing the

production of various models of cars according to the needs of entrepreneurs. Also, a source of

repair and maintenance of food trucks is widely distributed in Nakhon Ratchasima Province. Thus,

business operators do not have to face the problem of using a car for their business.

1.2 Raw material distribution found that Nakhon Ratchasima Province is an important source

of raw materials in the Northeastern region and the country. There are important markets in the

area such as Suranakorn Market, Thoet Tai Tan Market in Nakhon Ratchasima, and Yamo Market,

etc. Most food truck businesses in Nakhon Ratchasima are food and beverage businesses with

sufficient sources of raw materials for business operations. Nakhon Ratchasima Province is an

area that can easily connect to the procurement of raw materials with many freight forwarding

companies in the area in the future. If the development of transportation routes is completed, such

as double-track railways, the problems in the procurement of raw materials for production will be

solved effectively.

2. Forward Linkage

The forward link of the food truck business in Nakhon Ratchasima Province leads to businesses related to

the distribution of goods and services of entrepreneurs for consumers in two types of important businesses:

2.1 Markets for selling goods and services in Nakhon Ratchasima Province have a large

number of markets for both in the morning market, such as Hua Train Market, Nong Phai Lom

Market, Market behind Phra Narai Temple, Mae Kim Heng Market and others; and in the evening

markets such as Pratu Phi Market, Lang Mall Market, Save One Market, Ya Mo Market, Suranaree

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Camp Market, and others. Thus, the markets are ready to set up a space for selling products on

food trucks.

2.2 Department stores in Nakhon Ratchasima Province are located in many department stores

such as The Mall Department Store, Central Department Store, Terminal 21 Department Store and

Klang Plaza Department Store. Each department store provides regular food and beverage festivals

and the food truck business as the target of various department store festivals.

2.3 Public areas in Nakhon Ratchasima Province have a public area including many public

roads as parking areas for selling food and beverages in the form of food trucks in many ways,

such as the route around the city hall paths around various temples, paths along the park and routes

in empty areas of government agencies for improvement as a source of food and beverages.

2.4 Private and public areas found that Nakhon Ratchasima Province is located in a large area

as the second largest in the country with the size of the area in the amount of space to support the

food truck business by the private sector and the public. The food trucks are important to create a

lively atmosphere and modifying eating patterns to contact food truck operators for products and

services to serve consumers.

4.6 Potential of Food Truck Business in Nakhon Ratchasima Province

When interviewing stakeholders in the food truck business in the area of Nakhon Ratchasima Province, it

was found that the business had very high potential. Which the researcher analyzes through strengths,

weaknesses, opportunities and obstacles or SWOT ANALYSIS can be summarized as follows table 1.

Table 1 SWOT Analysis

Strength

1. There is a wide variety of food and beverages. 1. Lack of advertising and public relations for

products and services

2. Clean and clear food. And most importantly, 2. Lack of packaging (Packing) in various forms the taste

of the food is delicious. that correspond to the needs of consumers. In terms of size, color, and beauty

3. Food truck business operators have a strong convergence.

4. The food truck shop is in a convenient location.

Opportunity Threat

1. The government provides concrete support for

the emergence and existence of food truck

businesses in Nakhon Ratchasima province.

1. The competition between old and new food truck

operators is increasing. And more violent

2. Financial institutions are ready to provide

financial support for business operations.

3. Educational institutions are ready to give advice, promote and support the entrepreneurship of the business.

4. Private sector entities involved in the food

truck business are ready to promote and support

the business, such as companies that manufacture

food trucks.

2. The distribution site does not have a permanent building structure. causing obstacles in terms of

weather conditions such as rain

4.7 Assessing the potential of food truck business in Nakhon Ratchasima Province

When the researchers assessed the potential of the food truck business using the 7s McKinsey management

concept, firstly published in 1980 by Robert Waterman, Tom Peter and Julien Phillips as a conceptual

framework that the efficiency of a business organization is caused by the relationship of 7 factors (Nalinee

Phansata, and et, 2018) as follows:

We akness

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1. Strategy: Food truck business operators must find and formulate clear strategies to

differentiate themselves from competitors. Most entrepreneurs agreed that collaborating with other food

truck operators should organize events that bring together a wide variety of trucks in creating distribution

areas and business opportunities, such as flea markets, events, experiences and atmospheres during dining

in food trucks that are friendly, fun and lively more than dining in formal, strict and ceremonial restaurants,

and modern technology to communicate information such as smartphones and social networks. In

particular, the daily location of the food truck will help reduce customer confusion and increase the

confidence that when traveling to reach the stores, consistent with research Petchin Y, Charoenchai E.

(2018) and Peñate, P. T. (2015)

2. Organizational structure for food truck businesses, which are mostly small businesses, not

much manpower. The organizational structure should be flexible, and members can perform a variety of

duties and replace each other. Most entrepreneurs agreed that roles and responsibilities of the team should

be organized on what and how roles and responsibilities including prioritization across departments such

as production, marketing, finance and accounting, and people and operation to meet the needs of

consumers and business operations should be flexible, consistent with research Meesen K. (2015)

3. The system of food truck businesses may use various systems to increase their efficiency,

such as a system for ordering raw materials, order receiving system and customer service system. Most

entrepreneurs agreed that the ordering process is simple and easy with fast and standard service. Thus,

customers do not have to wait in long lines with clear price tags for customers to make decisions easier

and do not have to ask the staff in multiple times the order process to receive food to take the least time to

increase the number customers who receive services, and more payment channels without cash such as

debit/credit cards or other electronic channels, consistent with research Meesen K. (2015)

4. Staffs are the organization of people within the organization to be suitable for jobs such

as food trucks, so it should select personnel with knowledge and experience in food to join the business.

The strengths of the organization make the work out of efficiency. Most entrepreneurs agreed that

knowledgeable personnel and ability are important including skills and experience in doing a

comprehensive business from sourcing raw materials to bringing goods and services to the hands of

consumers, a personality of staff should fit the style of the store and communicate and interact well with

customers, and recruiting employees to work should be based on responsibility, patience, and able to work

in uncertain locations, consistent with research Peeraya K. (2016).

5. Skills mean food truck businesses requiring high flexibility in operations. Therefore,

personnel should have all-round skills and work in a variety of functions. Most entrepreneurs agreed that

outstanding skills or expertise should be provided including an experienced chef in creating food menus,

a variety of food items to reach customers and helping spread the risk including the creation of a specific

secret recipe, knowledge and understanding of the shop products with smiles, service mind, attentiveness

and enthusiasms for service including the ability to present attractive businesses to create a modern image

of the business, and flexibility in business operations such as changing the location of the business, having

a variety of food truck stops in each day as well as adjusting the business to suit the events, consistent with

research Peeraya K. (2016).

6. In the management style of food truck business, executives must be committed to their

work with the ability to motivate and a role model for good work. These styles will greatly affect the

morale and morale of the subordinates. Most entrepreneurs agreed that committing to work should be

attentive in the details of the business operation consistently and continuously, consistent with research

Siri pong R. (2009)new ideas the business model on food items or product menus including packaging in

order to create atmosphere, modernity and incentives in the services of customers, relationships with

employees including a friendly conversation with the staff, and assistance to employees as best as possible,

consistent with research Peeraya K. (2016).

7. Shared values mean in terms of the food truck business as a small business on the values

that everyone in the organization agrees on. The business focuses on a clear purpose and the operations

are distracted and help reduce conflicts in the organization. Most entrepreneurs agreed that creating a clear

business identity and making consumers are vital to understand the difference between a food truck

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business and a typical street food cart, unhygienic and selling cheap food, shared values or values within

the business is essential to support everyone in the organization operate in the same direction and a

common goal of coexistence within the same organization, and morale and strength in business are

necessary by doing various activities together besides doing business such as eating exercise, traveling to

travel to other Provinces, consistent with research Fahlevi, M., Zuhri, S., Parashakit, R. & Ekhsan, M.

(2019)

Conclusion

The situation of food truck business in Nakhon Ratchasima Province is predicted in 2020-2021 that food

truck operators will be launched in Nakhon Ratchasima Province and increase at least 100 food trucks,

especially the increase in the city of Nakhon Ratchasima Nakhon Ratchasima Province. It will also spread

to important district areas, such as Pak Chong District, Phimai District and Bua Yai District. Due to the

areas with large populations, the number of tourists visits to travel factors affecting the growth rate of the

food truck business as follows:

1. Household sectors found that general consumers in Nakhon Ratchasima Province,

especially the new generation or someone with novelty and modernity cconsistent with research Loomis,

J. M. (2013) and Meesen K. (2015). In addition, social media such as Line, Facebook, Instagram, or Twitter

play an important role in advertising and publicizing the food truck business in the area of Nakhon

Ratchasima Province with a tendency to use the food truck business because they desire to compare with

their use of services in the past.

2. Business sectors found that businessmen or investors in Nakhon Ratchasima Province

turned to invest more in businesses related to food truck business, such as entrepreneurs in the assembly

and decoration business of food trucks and entrepreneurs in the automotive business, especially decorative

accessories for beauty and entertainment accessories as well as new entrepreneurs for the startup in the

group of teenagers and working people to operate more food trucks consistent with research Peñate, P. T.

(2015). It is not popular to work regularly but to invest more in business. In addition, the food truck

business will be a business that has more variety in the types of products and services distributed including

having menus or special items or specific items to meet the needs of consumers in more unlimited needs.

3. Government sectors found that the government sector offers promoting and supporting the

food truck business in Nakhon Ratchasima Province. More budgets will be allocated to develop food truck

businesses, such as the development of food truck business standards, “SMART 4 Food Truck” in terms

of professional standards, kitchen standards, food truck standards and market standards consistent with

research Moriarty, L. (2019). In addition, the government has encouraged more low-interest loans to food

truck operators for entrepreneurs with loans for business development to meet standards. Besides, budgets

will be allocated to build a network of entrepreneur’s clusters related to food truck businesses and public

relations for the food truck business to create more values in the consumption of products and services of

the business.

4. Food truck operators should make a difference in selling their products and services. by

importing raw materials from abroad to use in the production of more products and services consistent

with research Anenberg, E., & Kung, E. (2014). Moreover, national food items of ASEAN countries are

sold in Nakhon Ratchasima Province, such as Amok of Cambodia, Ambuyat of Brunei, Lahpet of Burma,

Philippines Adobo, Singapore Laksa, Indonesia Gado Gado, Laos Luang Prabang Salad, Nasi Lemak,

Malaysia and Vietnam's Vietnamese Spring Rolls. However, the unique food truck business in Nakhon

Ratchasima Province will expand to ASEAN countries and more countries abroad

However, from the concept of 7's McKinsey, it can be used as a component to develop the potential of the

food truck business as well. As a result, the organization has efficiency and lead to the achievement of

goals.

Acknowledgement

Thanks for the fund granted from Department of Industry Promotion, Thailand

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