El Quesarito Loco Authentic Mexican Food Truck Strategy and Implementation At El Quesarito Loco, we aim to serve tasty and affordable Mexican cuisine in a way that is convenient for our customers. El Quesarito Loco will cater specifically to the nightlife crowds along the Main Line in Villanova, PA. Our goal is to provide a different alternative to the typical late night food and Mexican restaurants in terms of time, location, and accessibility. Market Analysis • Target markets: ▫ College & Graduate students (Ages 18-24) ▫ Post Graduates & Younger Adults (Ages 25-early 30s) Environmental Scanning • What are Consumers looking for? ▫ ▫ ▫ ▫ Filling items Unique Easy to eat Savory • Characteristics of Competitors: ▫ Late-night ▫ Convenient ▫ Mexican Chipotle Only Survey Results Competitive Advantages Core Competencies – Mobility – Timing/Efficiency – Convenience Core processes – Customer Relationships – Order Fulfillment – Supplier/Leaser Relationships Order Winners – Cost – Convenience – Unique Products Competitive Priorities – Price – Flexibility – Time (Delivery Speed) Suppliers Alex Black Pepper Pork (Loin) Costco $4.28/8 oz $4.99/pound Fresh Direct Chicken Cumin Oregano Salt Avocados Limes Jalapeno Peppers Scallions Habenaro Peppers $4.79/pound $.99/ 3 oz. $.99/1.125 oz. $.89/ 26 oz. $2.99/ 2 avocadoes $4.99/ 8-12 ct $2.99/ pound $.99/ each $2.99/pound Roundeye Supply Dried Ancho Chiles Adobo Sauce Garlic Canola/Vegetable oil $13.99/ pound $27.84/24 cans 7 oz. $129.00/ 30 pounds $55.03/ 35 pounds 8 inch soft shells Brown rice White Rice Tortilla Chips Red Wine Vinegar $47.88/ 288 pieces $16.68/ 25 pounds $16.34/ 25 pounds $22.43/ 75 oz. $23.56/ 4 gallons Sam's Club Forks Aluminum Foil $8.94/600 count $45.88/ 12'' x 1000' Roll Walmart Red Onion White Onion Green Peppers $.99/ pound $1.49/pound $1.49/pound Steak Mushrooms lettuce Tomatoes Cherry Tomatoes Sour Cream Shredded American Cheese Mangos Black Beans Pinto Beans Chocolate Dipping Sauce for Churros $10.99/pound $2.99/ 8 oz. $.99/ each bushel $1.99/pound $3.99/ 16 oz. $2.69/ 16oz. $20.70/ 5 pound $1.69/ pound $.89/15.5 oz $.89/15.5 oz $2.99/ 22 oz Sugar Mexican Blend Shredded Cheese Cilantro Thyme $2.39/ 4 pounds $20.70/ 5 pound $.99/ 3 oz $.99/ 1.5 oz. Food Service Direct Churros Chocolate Sauce Pico De Gallo Paper Boats Napkins $42.25/500 count $15.50/Half Gallon $2.59/pound $60/900 count $53/1800 count Periodic Review System • Simplifies the inventory checking system Periodic Review System Actual Demand (D) Order Cost (S) 500 Unit holding cost (H) 100 optimal order quantity (EOQ) • Creates a routine for delivery scheduling 7000.00 # of working days/weeks 140 Review Period (P) 0.20 expected demand/time (dbar) stand.deviation of demand per unit time • Use first few months to familiarize ourselves with necessary inventory & ordering levels. 4900000 Lead time (L) expected demand during projection interval standard deviation of demand during projection interval cycle/customer service level safety stock 35000 10 3 112000 17.88854382 0.90 22.93 Target Inventory Level (T) 112022.93 Expected Annual Cost 702292.51 Customer Demand Popularity of Bars Broken Down by Night of Operations 100% 80% 60% 40% 20% 0% Wednesday Thursday Friday Saturday Frequency of Student Purchases 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Once a Month Every Other Week Once a Week • Nightly customer demand varies greatly • Frequency of student purchases greatly impacts product demand • Impact on sales Twice a Week Product Demand Popularity of Entrée Type Popularity of Entrée Filling Vegetables 7% Burrito 26% Pork 17% Chicken 42% Steak 34% Popularity of Sides Rice 10% Side of Signature Salsa 25% Side of Guacamole 20% Beans 10% Chips 35% Quesarito 31% Soft Tacos 29% Quesadilla 14% Ingredient Forecasting Queuing System Cashier: Takes order, rings up transaction (dollars or half dollars) Assembler: process orders using batchorder process Deliverer: calls out name, serves food to customer Significant Costs VARIABLE • • • • Food Utensils Equipment Gasoline FIXED/START-UP • • • • Used Truck Commercial Kitchen Licensing Fees Compensation (3 employees) Profit Margins Churros are cheap by the piece, so we can get a high profit margin without making the price high Steak is expensive, so as to not turn customer away from high prices, we take little margin Thank You!