Case Study Introduction
The case study being reviewed is for Cat & Joe’s Pig Rig and their decision to attend Bullarama
in Barriere, British Columbia. Located in Kamloops, British Columbia, Cat & Joe’s Pig Rig is a
food truck run by husband and wife team, Cat & Joe. The food truck became a local favorite
thanks to their signature dish “Ripped Pig” pulled pork sandwich. The success of the company
sparked interest with event coordinators for Bullarama in Barriere, British Columbia. Bullarama
is a popular rodeo event known to have a large attendance. This case will analyze the potential
financial and nonfinancial impact of attending or declining the event.
1) Advantages of owning a food truck vs a traditional restaurant
Location flexibility: A food truck allows Cat & Joe the flexibility to change locations on a
weekly basis due to time of year, weather conditions or a low profit location. It also allows them
to participate in local fairs and festivals which can contribute to a new client base.
Low Marketing Cost: Cat & Joe’s current marketing strategy has been the use of social media.
Social media offers a variety of free platforms (Twitter, Instagram and Facebook) that can help
build an audience and create customer engagement. The platforms can be used to post daily
location, hours, food items and menu. This is a huge financial advantage in comparison to using
television or radio for advertising.
Low Labor Overhead: Cat & Joe keep overhead cost low by staffing their food truck and by
not taking a salary. Utilizing a small staff also keeps the cost of worker’s compensation
insurance low.
The Disadvantages of owing a food truck vs a traditional restaurant:
Limited Menu Selection: Food trucks are small, even smaller if you consider the space needed
for the kitchen, equipment and work space. This leaves limited room for food storage to cater to
a large menu. A limited menu may affect your customer base especially those that are picky or
adhering to particular diet restrictions.
Maintenance Cost: The upkeep of a food truck can be a costly expense and can be detrimental
to monthly profits. If the truck breaks down or parts of the kitchen become inoperable this may
affect Cat & Joe’s ability to serve customers for several days.
City Regulations: Cat & Joe must be mindful of their location and ensure they’re not creating
unfair competition to local Brick-and-Mortar restaurants. They’re also required to adhere to all
health code standards, maintain licenses and permits.
2) On a typical day in Kamloops, how many “Ripped Pig” sandwiches must be sold in
order to break even?
a) It takes 1389 (1388.89 rounded up) Ripped Pigs being sold a year to break even, and it takes
about 8 (7.71 rounded up) ripped pig sandwiches being sold a day to break even.
Comment on Cat and Joe’s breakeven point (calculated in Part a). Should this number be
relevant to the entrepreneurs?
b) Yes, it shows that the breakeven point is a low number. This will help Cat and Joe calculate
