C IRCUS B URGER

Circus burger is a small company currently owning two Airstream trailers, that has been converted to food trucks serving fast food, primary burgers and sides.

Additionally, Circus Burge also provides catering services.

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7.2.1. History & concept of the company

Idea to start Circus Burger dates to 2015, when the majority owner of the venture bought Airstream trailer from 1968 in need of complete renovation and decided to convert it to food truck, which would be co-run by the author of the thesis, since she has passion for cooking and had some background in hospitality business. The self-help renovation took more than two years. In 2017, before the completion of the trailer reconstruction, the company Circus Burger s.r.o. to start a business. The company started its profitable activities in the spring of 2018. The first year of operation was very successful, only 5 months after the start of operation we managed to win 2nd place at the Burger fest festival, which is the largest burger festival in Eastern Europe.

The second year of operation looked similar. Due to the fast rate of return on investment in the first food truck, in 2019 we have decided to buy second one.

Although as a mobile food truck we were not forced to temporarily shut down operations due to Covid-19 pandemic restrictions in the last two years certainly influenced our revenues and future plans. During the first wave of Covid-19 pandemic the second truck was renovated and turned into bar with up to 10 seats, however due to the pandemic it was not able to start operation of the second truck yet.

Concept of the company is simple and draws on frustration of owners, who had hard time finding quality, yet fast made lunch options, when at work, but also when visiting culture events such as music festivals. We aim to serve mouthwatering fast-food meals made from scratch, using no artificial flavors, coloring or preservatives. Gola to serve customers with quality tasty food, which they enjoin and is not detrimental to their health if consumed in moderation. A part of our concept is also a stylish environment thanks to the renovated Airstream trailers. Finally, the friendly and professional staff providing personalized customer experience, which is not typical of large fast-food chains is key part of our concept.

7.2.2. Operations overview

This subchapter describes how Circus Burger operates. In the first year of operation, most of the operational work was done by both co-owners, but with the growing number of days a week when the food truck was operating, it was necessary to hire operating manager and chefs in one person. This person oversees purchasing, food prep, cooking itself and transporting the food truck to and from the point of sale. One or two more people are needed to operate a food truck, depending on the size of the event, where one person operates the cash register and the other prep cook assembling the burgers. Employees working in these positions work part-time and take turns.

In the beginning, the food truck was primarily operated at weekend festivals, or operated as catering for private events. Over time, we have also expanded our scope to include lunchtime sales near office buildings in Prague and the Central Bohemian Region. Prior to Covid-19 pandemic 65 % of our revenue was generated at music

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festivals and various events, 25 % by sales during lunch time near the office centers and 10% by catering of private events. Since the start of the pandemic 60 % of revenue can be attributed to sales during lunch time near the office centers, 35 % to festivals and events. Demand for catering has rapidly decreased and currently accounts for only 5 % of revenue. Currently the food truck is opened for lunch 3 to 4 time a week and one day on weekend operates at some festival or event. Pre-pandemic we have been selling 1 500 hamburgers a month, but during peak summer months the number of sold portion would increase up to 2 5000. Since pandemic the number of hamburgers sold has significantly decreased and on average, we sell between 900 and 1 200 hamburgers a month. The drop in demand and the regulations associated with the pandemic have caused us to still wait with the launch of the second truck, which we converted into a bar which offers up to 10 seats.

When it comes to the food we sell, we pay attention to the freshness and quality of the ingredients. We take the meat from a local supplier, the buns are baked by a small family bakery from the Central Bohemian Region. All condiments like ketchup, various kind of mayonnaise, coleslaw, soup of the day and others are made from scratch by our cook. Our menu is intentionally smaller so that we can ensure the freshness of the ingredients used. We have 6 burgers on offer, one of which is vegetarian, and one is vegan. We also offer two types of side dishes - 1coleslaw salad and french fries. Other items on our menu include soup of the day, gourmet fried cheese nuggets and a selection of soft and alcoholic drinks. The alcoholic beverages include beer, which is brewed exclusively for Circus Burger. Our menu therefore has a total of around 15 items. The price of burgers ranges from 150 CZK for the cheapest to 275 CZK for the most expensive hamburger with two patties. However, most burgers cost between 150 CZK and 180 CZK. We also offer a menu consisting of a hamburger and a side dish, which is 10 CZK cheaper than if the consumer bought both items separately. We do not offer any discount coupons or promotions. Nevertheless, we managed to gain loyal customers and above-average customer ratings on both Google and Facebook.

During the week when we sell lunches, the food truck is located mainly in the outskirts of Prague or Central Bohemia, near office centers, where you can easily obtain the owner's consent to offer our services on his land, but we are highly dependent on whether employees will have interested in having lunch with us. Which is not a problem. However, unfortunately, most of the locations where we sell at lunchtime are more on the outskirts of the city, so we must rely on the fact that the people working in the offices choose our food truck for lunch. Which is true, but it doesn't help us build awareness of our food truck anymore. On weekends and at festivals, we attend events throughout the country. We most often visit the Hradec Králové region, the Pardubice region and the South Moravian region.

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7.2.3. Marketing communication channels and activities

Circus burger relies mostly on three channels – its website, social media and

marketing activities of event organizers to inform and promote its activities. Each of the channels is described in greater detail below.

Website

The website www.circusburger.cz provides the most comprehensive and detailed information about both the food truck and bar/pub truck. Website includes current menu, list of destinations where the food truck will be located in following weeks, about section, enquiry/quote form, contact information and links to social media. The website serves primary as online presentation of the business targeted towards event agencies organizing festivals and customers interested in catering services.

Social Media

Circus Burger has profiles on two social media platforms: Facebook and Instagram.

Both profiles were set up in 2017 while the renovation process of the first truck was still ongoing. In that time, we were posting organic content documenting the renovation process. Especially the Instagram profile proved to be valuable, as we have received first enquires to take part in smaller local festivals even prior completion of the renovation. Content of Circus burger’s social media profiles is primary targeted towards the end consumer, it includes regular weekly post summarizing locations customers can find the truck on given week, post sharing new items on the menu and some “behind the scenes” post, sharing for example how condiments used are being made, in order to make the business relatable.

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Figure 11 - Overview of followers on Facebook & Instagram, Source: (Meta, 2021) The graphic in Figure 11 summaries the insight on followers of Circus Burger social media profiles. There Facebook profile of Circus Burger has 883 likes and 1 100 Instagram followers as of 23^rd of November. While on Facebook 54,5 % of followers are females, on Instagram majority of followers are male with 67%. The largest group of followers on both Facebook and Instagram live in Prague and the surrounding area, which can be attributed to the fact that Circus Burger operates primarily in the capital.

Most followers on social networks are 25 to 44 years old, concretely. The second most numerous groups of followers are people aged 45 to 54. Specifically, 8.8% of women and 6.2% of men on Facebook and 3.9% of women and 8.3% of men on Instagram.

Which corresponds to the average age of most customers.

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On social media primary organic posts are used, however in case there is a major event such as Rock for People festival location specific paid promotion of the social media post will be employed. However, the budgets of such activation activities are limited, as it proved to be challenging to attribute the visits of the food truck to online promotions.

3^rd party promotional activates

As the food truck attend various food festivals and various events organized by event agencies, the organizers in majority of cases promote the event itself including endorsements of participating venues. The promotion includes mention of event’s website, organic and promoted posts on social media and in some cases coverage in local media such as newspapers or radio. On one hand it is certainly beneficial to be endorsed by the organizers prior to the event, on the other hand there is very limited control of the endowment Circus Burger receives.