Surviving the economic upheaval: why local mobile food businesses are thriving

The business news says it all: Thai factories and SMEs are closing one after another and those who are surviving are deep in debt as they fight off competition from cheaper imports.

Yet one sector is doing remarkably well in this current economic climate - the local mobile food business that offers pantry staples from trucks, motorcycles, tuk tuks and tricycles, the so-called rod phum phuang.

Rod phum phuang are a common sight in Thai neighborhoods, offering an assortment of fresh fruits and vegetables as well as meats, condiments and snacks, mostly packed in small plastic bags tied and hung inside and off the sides of the vehicles.

This mobile service is particularly popular in remote communities where access to food is limited and residents need to travel long distances to the local marketplace or supermarket.

It became even more essential in the cities during the pandemic when the government announced a lockdown and directed people to stay home to curb the spread of coronavirus.

Raising the bar

A customer service mindset and loyalty have saved Sakon Manakij’s business. She operates rod phum phuang on trucks, offering a wide variety of fresh produce and spices, from raw papaya to carrot and cabbage and from limes to ground dried chilies and fermented fish sauce (nam plara), with two helpers.

Some of food items are packed in small bags for sale with prices starting from 10 baht per bag. Many are sold by weight.

A native of Ratchaburi, Sakon, 58, opened her first mobile food truck in 2004. As demand was so high, particularly during the pandemic, she decided to expand to a second and then a third truck, which are operated by her husband and her daughter.

Sakon Manakij, owner of mobile food truck or rod phum phuang makes a stop in a Bangna neighbourhood to offer fresh produce to residents.

She is passionate about offering quality food at a good price. Her work days start as early as 3am when she and her helpers go to the Simummuang Market in Pathum Thani’s Lamlukka District to buy food for sale.

The small entrepreneur has built a good relationship with a network of merchants in the marketplace who provide her with fresh produce at competitive rates. As soon as it’s loaded on her trucks, the helpers quickly pack the goodies into small bags for retail sales.

“Consumers today want more than the lowest prices. They are increasingly looking for better value for money, quality and convenience. I select all produce myself to ensure the highest quality possible We want to give customers value for their money,” Sakon says adding the produce she sells is much cheaper than that offered at fresh markets and supermarkets.

She invests about 15,000-18,000 baht per day in buying stuff for sale and earns about 2,000-2,500 baht after deducting all expenses including fuel costs, wages for her two helpers and plastic bags.

“To me, making a decent amount of 2,000 baht a day is great if you don’t have debts,” Sakon says.

She usually drives the truck along the streets of Lat Krabang and Bangna as well as Bang Phli in Samut Prakan to serve small food vendors in the morning, heading out to residential neighborhoods around lunchtime and to construction sites for dinner. The majority of her customers are small food vendors, housewives, employees and construction workers.

Sakon has used customer segmentation to optimize her products, which can help grow her business and increase customers satisfaction.

“We sell all the food items every day. In the evening, we resize the packages, making them smaller and selling them for just 10 baht each. We sell them to workers. They have low purchasing power,” she says, adding that many construction workers prefer buying small portions of food items to cook for dinner because they don’t have a fridge to keep the leftovers.

She has also realized the power of integrity in business and also encourages honesty among her helpers. She believes a business that is known for its honesty and integrity is more likely to be respected and admired by customers. And this can lead to positive word-of-mouth advertising, which can be beneficial to her business.

“Nobody wants to work with traders who are dishonest. When the helpers pack the stuff, I always guide them to be more careful with product weights to ensure accuracy,” she says, adding that customers who feel they have been cheated share their stories on social media. “They also complain they pay more for less food when using online food delivery services,” she says.

Sakon has grown her customer base over the years and has more than 100 regulars. During the pandemic when people were too scared to leave their homes, she generated about 5,000-6,000 baht a day.

“Our customers share good experiences they have buying from us. We got many new customers during the health crisis, mostly office workers. Orders poured in, keeping us very busy. People will buy more from a trader they trust,” she says.

She has placed particular attention to the service provided to customers, making them feel welcome and cared for. She also listens to their needs and make extra efforts to respond to them.

“One of our customers, a papaya salad vendor, wants ant eggs for a special dish but we don’t have them. So, we offered to buy them for her,” she says.

Sakon notes that owning a business is both enjoyable and fulfilling, allowing her more freedom to control of her own schedule and enjoy unlimited earning potential.

“When I’m tired from work, I stop for a rest. I don’t need to call in sick. I can do what I want with my time. Working for long hours for several days is stressful,” says the former employee, adding that her daughter who worked for a leading Thai bank also quit her job after four years and now operates a mobile food truck.

A taste of convenience

Roi Et resident, Thawatchai Suthitanon, 31, meanwhile, operates a mobile food business from a tuk-tuk, providing a comprehensive range of food items including fruits, vegetables, ready-to-eat dishes, Thai desserts and snacks to consumers living in Bang Phli District of Samut Prakan. He works two shifts a day, the first from 4am-1pm and the second from 5pm-8pm.

“We work against time to ensure we arrive at the factory before 4:30am when night shift workers finish their work and before 5pm when the day shift workers have an overtime break for meal. With our tuk-tuk, we offer a doorstep service,” he says, adding he and his girlfriend get up around 2am to prepare food items for sale.

Thawatchai followed in his parents’ footsteps in becoming a local mobile food entrepreneur. Starting his own business 10 years ago, he asked his friend to modify his old tricycle into a visually appealing food tuk-tuk that suits his business needs.

He believes that a well-designed mobile store helps create a positive customer experience that encourages repeat visits and develops loyalty.

“We always keep our mobile store organized so customers are able to select and immediately find what they are looking for. It’s also pleasing to the eye. We place boiled peanuts, sweet potato and corn, some of the best-selling items, at the front.

Customers spend more time checking out our stock and buy more,” Thawatchai says.

He also offers a discount that can motivate customers to buy. After 10am, he sells 3 bags of food for 50 baht. The normal price is 20 baht each.

“That keeps customers coming back for more,” he says, adding he serves around 200 customers a day, mostly local residents, office and factory workers.

Sunday is the busiest day for his business when workers are on holiday. Thawatchai and his girlfriend cook dishes for sale in addition to fresh vegetables and fruits to generate more income.

“We have a lot of food items to choose from. We offer rice noodles with fish curry (khanoum cheen namya pla), vermicelli noodles stir-fry (pad mee) and green papaya salad on Sunday. The dishes would be perfect for lunch,” he says, adding he offers more than 100 items of food that vary according to the season.

He generates about 2,000 baht a day by investing some 5,000 baht to buy produce for sale in small bags. He says he made more money on a daily basis with the same amount of investment during the pandemic as the costs of produce and materials were cheaper.

Thawatchai Suthitanon, who operates rod phum phuang from a tuk-tuk is ready to serve his customers.

“You know, the costs of materials go up. But we want to keep the same prices for our food items and offer the same discount even when we earn less,” he says, adding that he expects the economy to recover soon which will encourage consumers to spend more.

To generate engagement and connect with both existing and potential customers, Thawatchai also creates and posts content and videos about his business on Tik Tok.

As a small entrepreneur, Thawatchai notes the local mobile food business often requires fewer operating costs than food shops, stalls and kiosks. The career also allows owners to work in creative ways and easily adapt to change.

“We’re happy with our business. We love working with our customers. Every day we work is a payday. So far, so good,” Thawatchai says.

------------------------------------------------

Captions

Main pix - stock photo

•

•

--------------------------------------------------------