Falafel Stand

Business profile of Falafel Stand

Market characteristics of Falafel Stand

Low entry threshold - the domain doesn't require extensive professional knowledge and the gross profitability is very high.
High closure rates - the image of the domain is as one in which it is possible to make a large sum of money quickly.
Price competition in the market has intensified in recent years, which has led to a drop in falafel prices.

Customers of Falafel Stand:

The potential customer public includes the entire population, with several segmentations:
Need - mainly as a fast and simple food solution
Age - a high percentage of the falafel customers are characterized by relatively young ages of 12 - 30
Geographical area - most customers of falafel stands are located in the area near the stand

Competition

1. Various falafel stands located in the nearby geographical area or more distant but with a reputation
2. Fast food of other types in the nearby geographical area

Suppliers

Equipment suppliers
" Kitchen equipment - various suppliers operate in Israel and can provide solutions to the various needs of the restaurant's kitchen. It is important to ensure that the supplier provides support and service for the equipment.
" Equipment for the catering area and dishes - at stands that also offer their customers the option of eating on the premises.
Food and drinks suppliers
There is a wide range of food and drinks suppliers in Israel. When selecting suppliers to work with it is of major importance to check their credibility and the quality of the goods they supply, in addition to prices.

Marketing methods

Include distributing flyers, magnets bearing the falafel stand's logo and sometimes advertising in the local press.

Factors affecting success

" Food quality and flavour. Acquiring a reputation and customer loyalty is related to the quality of the falafel served.
" Location - the stand's location constitutes an important factor in its success. Before setting it up one must examine the potential of the market located in the area and the relevant competitors located in the nearby area.
" Service - quality of service is a pivotal factor that makes a major contribution to the level of success. A clean and neat place that offers comfortable seating improves service.
" Competition and dynamism in the sector - they have an effect as alternatives facing the customers. A drop in falafel prices in force in the sector could force the remaining stands in the area to lower prices, thereby affecting the falafel stand's profitability.

Entry barriers in the sector

The entry threshold into the sector is low; the initial investment includes only basic furnishings and equipment. Obtaining a business licence from the local authority is required.

Equipment required for a falafel stand

The investment required for a falafel stand, without the option of seating, is relatively low and includes only basic furnishings and equipment.

Permissions and restrictions

At a falafel stand it is permissible to prepare and fry falafel and to prepare side dishes for falafel using raw vegetables for consumption on the premises.
It is forbidden to prepare, keep or sell dishes containing meat, including fish or chicken. It is forbidden to sell using the self-service method at falafel stands.

Risk level

The risk level is higher than average- the number of new business opening is high, but so is the number of business that close or fail.

Licenses and certification

A business licence from the local authority and from the Health Ministry is required, after meeting the conditions for receiving such a licence.

Insurance

Building and content insurance, third party insurance, employer's liability insurance, inventory insurance, insurance against food poisoning and loss of profit insurance.
In addition to the aforesaid, consulting with an insurance agent regarding required insurance is advisable.