We are a 24/7 fast food delivery service based in Richmond, Kentucky. We cater o
ID: 379406 • Letter: W
Question
We are a 24/7 fast food delivery service based in Richmond, Kentucky. We cater our services towards college students who crave affordable meals at any time, day or night. Think of it as a meal plan outside of school. Most of our business is done through subscription (ala, $50 per week for 10 meals), which makes us different from most food establishments. We get our product from Gordon Food Service. I need a company analysis for this concept business idea....up to your interpretation as thorough as possible
Explanation / Answer
Subscription meal business is a great concept as it provides the company with stable recurring weekly revenue. In this case the fast food delivery service is earning stable as well as recurring revenue of $50 per student per week. The business thrives by satisfying the need of students for affordable meals during different time periods in a particular day.
The subscription meal business is a win-win situation for both the fast food delivery company as well as the students (i.e. the customers). The food delivery company gains from the recurring revenues that it will generate in the future. The customers gain as their need for affordable food is conveniently satisfied whenever their need (i.e. hunger) arises.
The food delivery company is, in a way, insulated from economic factors is demand from students largely remain unaffected even when interest rate rises or when unemployment rate within the economy goes up north. The company also has favorable social factors supporting it as student community favors consumption of fast food products mainly due to convenience as well as affordability.
The risk for the food delivery company gets limited due to the assured customer base in the form of students whose numbers remains constant from year to year. Moreover the food delivery company has the opportunity to expand to nearby areas and serve other colleges, universities as well as working individuals who do not have the time to cook meals for themselves.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.