Purchasing within Food Truck Business

Abstract

Purchasing is with the greatest expense in the mobile restaurant industry. The food truck business model is cost driven and very sensitive for any disruptions. Since purchasing stands for a significant part of the expenses, it is desirable to minimize the overall costs and associated effort for them. The aim with this thesis is to show how food truck companies handle their purchasing processes and supplier selection. This study has been taking into account arguments and theories within supply chain management, supplier dependency and cost reduction. Very little literature and research has been performed within the food truck industry. The empirical part of this thesis was conducted as quantitative research, by interviewing four different companies. Interviews were held in person or via video conferences. The results show that each company has different ways to plan and process their purchases, as well as selecting suppliers. Greatest differences were shown within the purchasing processes itself, where opportunities for improvement were discovered. The study shows that most mobile restaurant companies use little or none documentation to analyse and optimize their purchasing processes and I would recommend for further investigation to extend the study’s scope.