Founded in 2021 by college roommates and culinary school grads Marcus Tran and Alex Garcia, LuxeBite was born from a shared frustration: why was fast food either cheap and uninspired or gourmet but unaffordable? They envisioned a brand that blended affordability with culinary flair, creating an entirely new category they call ‘cheap luxury fast food fusion.’
Starting with a single food truck in Austin, Texas, LuxeBite quickly gained traction on social media for its outrageous yet accessible menu:
After two years of strong local success and viral exposure through food vloggers and TikTok influencers, Marcus and Alex now want to expand to permanent locations in three major cities: Chicago, Los Angeles, and New York.
They are currently exploring options to raise $2 million in external finance, considering:
• Angel investors from the food-tech industry
• Government-backed small business loans
• Equity crowdfunding through platforms like SeedInvest
However, in meetings with potential investors, one repeated concern has emerged:
“Who exactly is LuxeBite’s customer?”
To prepare for their next pitch and future marketing campaign, Marcus and Alex realize they need to develop a more detailed marketing plan. Their mentors advised them to focus on the following:
LuxeBite’s early customers include:
• Urban Millennials & Gen Z
• Foodies and trend seekers
• Health-conscious professionals open to indulgence
• Late-night snackers
But they’ve never clearly broken these into formal segments or prioritized their most profitable group.
They now face tough decisions:
• Focus on the social media generation with limited income but high influence?
• Aim at young professionals seeking gourmet on-the-go?
• Or pursue the late-night/college crowd who value novelty and speed?
LuxeBite’s working USP:
“Bold gourmet flavors at fast food speed and prices.”
But with copycats already emerging and big chains starting to experiment with limited-edition gourmet items, differentiation will be key.
Currently, LuxeBite risks being misunderstood:
• Too fancy for fast food lovers
• Too cheap for food snobs
• Unclear against competitors like Shake Shack, In-N-Out, Taco Bell and even the big traditional players like McDonalds and Burger King.
They are considering developing a positioning map to visualize where they stand in terms of:
• Price vs. Quality
• Familiarity vs. Innovation
Q1. Explain the difference between internal and external sources of finance.
Q2. Explain two possible market segments LuxeBite might serve.
Q3. Create a positioning map for LuxeBite and explain how it could help the company in its expansion strategy.
Q4. Using the food industry as an example, explain the difference between a niche market and a mass market.
Q5. Recommend and justify a marketing strategy for Luxebite which includes which source of finance they should choose, where they should look to expand, and which target audience they should focus on selling to.