College Cantina
Mike, Mario, Lauren, JT
Mission and
Competitors
• Penetrate the already existing, but limited, Mexican
food market, while providing a fun and friendly
atmosphere to keep people coming back
Core Competencies and
Processes
• Market Know-how
o Being a part of the target market
• Facilities
o Location
• Place to hang out and stay for more than a meal
• Customer Relationship
o What will differentiate ourselves
• Order Fulfillment
o Restaurants need great order fulfillment
SWOT Analysis
Strengths
Weaknesses
-Combination of successful
markets
-New player in the market
-Big target market in this
area
Opportunities
--Growth in college areas
-Seasonal demand
Threats
-Legal issues with alcohol
-Changes in consumer
demand or preferences
Market Description
• Limited direct competition
• Differentiation from Chipotle and bars
o Atmosphere
• Order Winners
Low Cost
Consistent
Quality
Customization
Products & Services
Operations Strategy
• Assemble to order
o Customization is key
o Make to order/make to stock
• Why?
o Heavy customer involvement
• Flexible
Supplier Relationship
• Local Farmers
o Quality
o Constant improvement
• Supplier Selection
o Sysco Foods
• Proven
Tooling
Equpiment
Price
·
Large grill (62 inch gas grill)
$
2,500
·
deep fryer
$
620
·
Tortilla press (tortilla steamer)
$
919
·
Meat slicer
$
250
·
Mixer
$
639
·
Hot food table
$
2,500
·
Refrigerators/Freezers x2
$
2,500
·
Eating utensils 500 sets (Alibaba)
$
1,500
·
Napkins 3000 paper napkins
$
27
·
Condiments Mayo/gal Ketchup/gal Mustard/gal
$
85
·
Wet towels 1000
$
17
·
Beverage dispenser (8 beverages)
$
4,100
·
Coffee Maker
$
270
·
Shelves (66 inch 3 tier backlight display)
$
980
Quality Control
• Lean System
o Overproduction
o Inventory
• Employee Training
o Non-utilized resources
• Implementation of Inspections
Quality Strategy
•
5s Method
•
•
•
•
•
Sort
Straighten
Shine
Standardize
Sustain
Supply Chain Inventory
Management
Local Farmers
Chaes Food
Distributor
Philadelphia
Wholesale
Produce
Market
Rosemont
Beverage
Center
Southern Wine
and Spirits
Intend to
maintain as
largest food
distributor
Meat
distributor for
when local
farmers are not
an option
Vegetable
distributor
when local
farmers are not
an option
Source of Beer
including all
domestic and
foreign brands
Source of
liquors and
other hard
alcohols
Maintain low
cost and show
interest in
sustenance of
area of
business
Philadelphia
distributor,
local business
for ease of
access
Philadelphia
distributor,
local business
for ease of
access
Close
proximity to
store location
in case of
sudden spikes
in demand
Relatively close
to location of
business for
convenience
Forecasting Demand
Judgment methods
•
•
•
Salesforce estimates
Executive opinion
Market research
Quantitative forecasting
•
•
Time-series methods
Weighted moving average
Customer Demand
Product Demand &
Inputs
Inputs
Chicken (lbs)
Steak (lbs)
Pork (lbs)
Shrimp (lbs)
White rice (cups)
Brown rice (cups)
Refried beans (cups)
Black beans
Red beans
Salsa (cups)
Sour cream (cups)
Guacamole (cups)
Lettuce (heads)
Tomatoes
Cheese (lbs)
Peppers
Onions
Cooking oil (liters)
Hard taco shells
Soft taco shells
Soft flour tortilla
Quanity (daily)
23
23
23
3
35
20
10
18
18
20
17
16
18
52
33
13
19
4
25
45
150
Quantity (weekly)
161
161
161
23
245
140
70
123
123
140
118
114
126
364
231
88
133
25
175
315
1050
Pricing Decision
•
Start-up fixed costs = $265,000
o Cost for capital equipment = $100,000
• Including; furniture, equipment, fixtures, and computers/registers
etc.
o Administrative expenses = $150,000
• rent, utilities, legal and accounting fees, prepaid insurance, and
pre-opening salaries
o Opening inventory = $15,000
• Including all of the produce, Mexican food related inputs, utensils,
and napkins etc.
•
Annual fixed cost = 75,000
o Including depreciation, insurance, interest expense, rent, and utilities
•
Monthly variable costs = $20,000 (will vary directly with output)
o Comprised of the cost for direct materials, staff wages,
production supplies, and credit card fees
Conclusion
• Great opportunity in this area
• Great place for fun and delicious food
• Come and join us!