Omega Bites
Business Plan
Nutr 404
Tala Moshref
Chen Glasheen
Ashley Corbett
Carissa Lim
Vergil Mendiola
Johannah Buenafe
November 19, 2014
Table of Contents
Executive Summary
3
Mission Statement
3
Team/Organization and Ownership
4
Products and Services
6
Operating Plan
8
Health Repercussions and Analysis
10
Market & Competitive Analysis
11
Marketing Strategy & Emerging Technology
13
Goals, Barriers & Risk Mitigation
15
Start-Up Expenses & Analysis
16
References
21
Appendices
23
2
Executive Summary
Omega Bites is a San Diego based food truck operated by six professionals under the supervision of
a registered dietitian. With the rise of obesity in the United States young children’s risk has doubled
and has tripled in adolescents over the past 30 years. Our mission is to supply nutritionally balanced
meals while educating school-aged children about the importance of proper nutrition, food labeling
and sustainable living throughout their lives.
Omega Bites offers omega-3 rich menu items to secondary age students 11-18 years old. We offer
nutritious lunch options, providing functional ingredients, while competing with other “non-healthy”
on-site fast food vendors.
Omega Bites will operate in the parking lot of the following schools on alternative dates: Pershing
Middle and Patrick Henry High schools. These are the first two pilot schools to launch our business.
Both schools are located in San Carlos, CA, predominantly made up of Caucasians: the median
household income is approximately $120,000 and a 3% poverty rate.
Our first year projection is to gross $150,000 with plans on increasing our sales by 233% by the end
of our fourth year to reach our goal of $500,000, expanding to all San Diego Unified School
Districts within the next four years and all secondary schools in San Diego County within the next
eight years. Long term goals include expansion of business to Orange County and Los Angeles
within the next 15 years and throughout California by 2035.
Company Summary
Name of Business
Omega Bites
Mission Statement
Omega Bites, is a food truck operated by six professionals under the supervision of a Registered
Dietitian Nutritionist (RDN). Obesity is prevalent in the United States and has more than doubled in
young children and has tripled in adolescents over the past 30 years. Our mission is to supply
nutritionally balanced meals while educating students on the importance of proper nutrition, food
labeling, and sustainable living throughout their lives. These educated children will grow up to
become healthy adults, which will minimize the obesity epidemic and chronic disease rates in the
United States, one child and one school at a time.
Brief Description
Omega Bites is a food truck that will operate in two pilot schools in the San Carlos community of
San Diego, California. Our doors will open in September 2015. We offer nutritious lunch options,
providing functional ingredients, while competing with other “non-healthy” on-site fast food
vendors. We aim to gain the support and approval of the community along with the Parent Teacher
Association (PTA) to succeed in the two schools.
Goals/Objectives
● Our first year projections is to gross $150,000 and increase our sales by 233% by the end of our
fourth year to reach our goal of $500,000
3
● Increasing daily sales by 5%
● Expanding to all San Diego Unified School District within the next four years and all secondary
schools in San Diego County within the next eight years
Team Organization and Ownership
Omega Bites will have six partners; each will all manage areas of their expertise. The key
members, their roles, skills, and responsibilities are outlined below. See Table 1.
Tala Moshref: General Manager/Partner
The General Manager’s (GM) primary role is to oversee the entire
business as a whole and be responsible for establishing policies
and procedures with each managing partner in their respective
departments. Our GM is decisive, shows good judgment, and sets
the right vision for the business (McAllister, 2013). She has
excellent interpersonal and conceptual skills, which is one of the
reasons that make her such a good leader for our business. Tala has
10 years of previous experience managing a full-service restaurant
in addition to her MBA.
Chen Glasheen: Registered Dietitian Nutritionist/Partner
The primary roles of the Registered Dietitian Nutritionist (RDN)
will be to plan meals that meet the dietary guidelines for schoolaged children and to provide nutrition education to students
through presentations and demonstrations. Chen is innovative, has
the ability to think outside the box, and her MS in Nutrition gives
her the skills required for our business. In addition, Chen’s
analytical and organizational skills are what make her a key team
member for Omega Bites. She has 15 years experience working as
a Pediatric Dietitian.
Ashley Corbett: Human Resources Manager/Partner
Our Human Resources (HR) Manager’s primary role will be to
write up job descriptions, recruit, hire employees, and address any
human relations issues. Ashley is a rational thinker, decisive, has
excellent communication, interpersonal, and negotiation skills. She
has a BS in Business Administration and 8 years experience
working as a human resources manager in the finance and
foodservice industries.
4
Carissa Lim: Foodservice Manager/Partner
The primary roles of the Food Service Manager (FSM) will be to
oversee the day-to-day operations of the food truck, which include
directing the staff, manage quality control and ensure that the
business is profitable. Carissa is friendly, customer service
orientated, possesses excellent interpersonal and communication
skills. She has a BS in Food Science and Nutrition and has 10
years experience working in the foodservice industry, which
include 5 years managing a food truck.
Vergil Mendiola: Marketing Manager/Partner
Our Marketing Manager will primarily be responsible for
researching the market to develop strategies for advertising and
promoting our business. Vergil is a creative team player that has
excellent analytical and communication skills and works well
under pressure (Education Portal). He has a BA in Marketing, is a
member of the American Marketing Association (AMA) and has 6
years experience in the industry.
Johannah Buenafe: Accounting Manager/Partner
Our Accounting Manager’s primary roles are to maintain, collect,
analyze, verify and report all financial information for our business
(Monster.com). Johannah is detail-oriented, a good team player,
excellent communicator, and works very well under pressure. She
has a BA in Finance and has 6 years experience managing the
books of a fine-dining restaurant.
Our business structure will consist of a mixture between a traditional and innovative
organization. We will have a traditional management structure, with an organizational chart and
departmentalization, where each partner will manage an area of their expertise; however, our goal is
to provide a team-based approach to decisions affecting their respective departments and using
managers as agents of change. Additionally, Omega Bites will focus on our visions and values while
promoting sociability from within so that our employees will commit to our organization (Gregoire,
2013).
Corporate Culture
Our goal at Omega Bites is to provide our employees with an opportunity to become involved with
our community’s most valuable members: kids! We pride ourselves in having fun while
emphasizing the importance of nutrition through delicious, convenient food and education.
5
Omega Bites will have the following six partners: Tala Moshref, Chen Glasheen, Ashley Corbett,
Carissa Lim, Vergil Mendiola, Johannah Buenafe. Each partner will have a 16.66% stake in the
Limited Liability Company (LLC) and will each be responsible for managing departments according
to their expertise. This structure will grant each partner the ability to raise capital more readily,
distribute profits and losses, and arrange changes in operating agreements as necessary (Companies
Incorporated).
Table 1: Partner/manager strengths and skills.
Partner/Manager
Strengths
Skills
Tala Moshref
Decisive, good judgment, will
set the right vision for the
company, demonstrates
leadership
Interpersonal and conceptual
Chen Glasheen
Innovator, out-of-the-box
thinker
Analytical and organizational
Ashley Corbett
Rational thinker, decisive
Interpersonal, communication,
and negotiating
Carissa Lim
Decisive, customer-service
oriented
Interpersonal and
communication
Vergil Mendiola
Team player, works well under
pressure
Analytical and communication
Johannah Buenafe
Team player, works well under
pressure
Detail-oriented and
communication
Products and Services
Products
Studies have shown that 70% of children and adolescents that are obese between the age of 5-17
show a risk factor for cardiovascular disease (CDC, 2014). Cardiovascular disease is a chronic
problem and the number one killer of adults in the Unites States. It is a disease that can be prevented
through early intervention with a healthy lifestyle. Both omega-3 and beta-glucan, have shown antiinflammatory effects and reducing the lipid profile. Omega on a stick is a frozen product that only
takes a few minutes to prepare in the oven. It is made with the best ingredients in the market and
consists of only wholesome ingredients. All of our products are free of additives and preservatives.
Omega Bites is a new innovative way to raise awareness and educate the students that healthy food
can taste delicious too!
Grab & go portioned meals prepared by Omega Bites provide a high quality product including
American Humane Association Certified chicken and Pacific cod. They have been coated with
organic flax seeds,chia seeds and high fiber oatmeal, lightly fried and baked before being frozen.
6
Vegans and vegetarians have the option of ordering the sweet potatoes on a stick prepared with the
same methods. Our seasonal salad is fresh and simple providing the students with a variety of
vitamins and minerals such as vitamins A, C, K, B6, calcium, folate and fiber. Our signature
dressings are made with high quality olive oil and balsamic vinaigrette and low-fat ranch dressing.
Our smoothies are designed to provide a healthy alternative will incorporating fresh fruit.
All of the ingredients are purchased from certified vendors. The ready to bake Omega on a stick
products are directly purchased from the company. The rest of the ingredients are purchased from
Costco and Suzie’s Farm (local USDA Certified Organic). Our pricing strategy is based on the
commonly used mark-up method. (Gregoire, 2013) See Table 2 below. Individual product, menu
pricing also are displayed in Appendix A and B.
Table 2: The cost per serving, sale price per serving, and gross profit of each product.
Product
Platter Combination
(ω-3 on a stick + salad + grain +
fruit)
ω-3 on a stick
Salad
Seasonal Mix
Smoothie
Small (6oz)
Medium (8 oz)
Fruit
Apples
Bananas
Grains
Brown Rice
Whole Wheat Roll
Cost/Serving
Sale Price/Serving
Gross Profit
$2.36 raw
$3.30 actual cost
$6.49
$3.19
$1.50 raw
$2.10 actual
$2.99
$0.89
$0.40 raw
$0.56 actual
$2.99
$2.43
$0.36 raw
$0.50 actual
$2.25 (6 oz)
$1.75
$0.50 raw
$0.70 actual
$2.99 (8oz)
$2.39
$0.36 raw
$0.50 actual
$0.99
$0.49
$0.12 raw
$0.17 actual
$0.99
$0.82
$0.05 raw
$0.07 actual
$0.99
$0.99
$0.20 raw
$0.28 actual
$0.50
$0.22
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Operating Plan
Omega Bites will operate as a mobile food preparation vehicle (MFPV), also known as a food truck,
in the parking lots of two pilot schools in the San Carlos community of San Diego. Our research has
found that most food trucks generally range anywhere from $15,000 to $100,000 (Support Staff,
2014). We have decided that we will purchase a used 2007 Grumman Workhorse MFPV from
UsedVending.com for approximately $71,500 (UsedVending.com) with minor customizations. See
Appendix C for ad and Appendix D for floor plan. The MFPV will be equipped with all the
necessary equipment that is needed for us to run a full mobile kitchen. See Table 3 below.
Table 3: Quantity, price, and source of equipment.
Equipment
Qty
Price
Source
Adcraft RC-E30 Rice Cooker
1
$116.93
MissionRestaurantSupply.com
Vitamix 748
1
$346.65
MissionRestaurantSupply.com
Adcraft COH-2670W Half-size pan
convection oven
1
$525.58
MissionRestaurantSupply.com
ShopKeep Pos System
1
$49/mo
ShopKeep.com
Ipad Air 2
1
$499.00
Apple.com
Bixolon SPP-R300 POS printer
1
$283.99
Amazon.com
Eccotemp Hot Water Heater
1
$269.00
HomeDepot.com
Triple Sink
1
$403.84
HomeDepot.com
Generator
1
$699.00
HomeDepot.com
Work Table
1
$203.99
MissionRestaurantSupply.com
Water Worker 32gal Water Tank
1
$199.00
HomeDepot.com
Stalk Market BCS103 Compostable
3-Compartment Containers
200
$70.03
Wasserstrom.com
Stalk Market CPLA-003 Jaya
Compostable Spoons
1000
$49.85
Wasserstrom.com
16oz GreenStripe Cold Compostable
Cups
100
$134.11
EcoProducts.com
Compostable Straws
400
$10.01
EcoProducts.com
8
Krowne Metal Hand-washing Sink
1
$289.00
MissionRestaurantSupply.com
Refrigerator
1
$1,835.62 MissionRestaurantSupply.com
Freezer
1
$2,138.00 MissionRestaurantSupply.com
Propane Tank
2
$150.00
HomeDepot.com
Fire Suppression System
1
$150.00
EdsFireInc.com
Exhaust Hood with Fan
1
$730.48
EliteRestaurantEquipment.com
UL 711A Kitchen Fire Extinguisher
2
$21.97
HomeDepot.com
Our estimated monthly utility costs, including insurance are approximately $2,852. See Table 4
below. Fuel for our 40gal diesel Grumman Workhorse is expected to cost $250, and insuring the
MFPV will cost us $302 per month (InsureMyFoodTruck.com). Additionally, all MFPV operating
in San Diego County are required by law to be stored and parked at a commissary (when not in use)
daily (San Diego Country of Environmental Health, 2012). The monthly cost of a commissary is $800
(Moody, 2014).
Table 4: Cost of monthly utilities
Utility
Cost
Fuel
$250
Insurance
$302
Commissary
$800
Commercial Kitchen Rental
$1,500
Total Monthly Utility Cost $2,852
Although all partners/managers will work in the food truck in addition to their primary
responsibilities (See Chart 1), the primary partners/managers working in the day-to-day operations
of the food truck will be Chen and Carissa, our RDN and FSM, respectively. The remaining
partners/managers will work with and assist the RDN and FSM in the food truck. Omega Bites will
have rotating shifts between partners/managers coinciding with school rotation. For example,
Mondays and Tuesdays the HR manager, Ashley, and GM, Tala, will work in the food truck with
Chen. Wednesdays through Fridays the remaining partners/managers, Marketing manager, Vergil,
and Accounting manager, Johannah, will operate the food truck with Carissa. If and when special
occasions outside of the school premises arise, all partners/managers will alternate events.
9
Omega Bites’ operating hours are as follows: 9am to 4pm Monday through Friday; business hours:
11am-2pm Monday - Friday, rotating between Pershing Middle School and Patrick Henry High
School on a weekly basis. Each employee will wear a standard company uniform, see Appendix E.
Chart 1. Company Organizational Chart
Health Repercussions Analysis
In addition to providing high quality, fresh, and nutritious ingredients, the primary goal of Omega
Bites is to provide foods free of safety concerns to students. Omega Bites’ food truck abides by
federal (USDA, FDA, CDC) and local (state, county, city) food codes, laws and regulations
(California Retail Food Code). The entire food truck staff must obtain a food handler’s card from
San Diego County and renew their cards every three years. Both food and non-food safety guidelines
are tightly controlled by assigned Hazard Analysis and Critical Control Point program (HACCP)
(Loken, 1995).
Our HACCP plan is detail-oriented and follows each level of food production. With the safety of our
customers in mind, our goal is to prevent food borne illnesses by following the HACCP plan and
Standard of Operation Procedure (SOPs) (Gregoire, 2013). An annual public inspection is required
when the mobile food vendor is not in operation (Vanschaik, 2014). Should a foodborne illness
outbreak occur, the establishment must report the incident to the County of San Diego, Department
of Environmental Health, Food & Housing Division (Gregoire, 2013).
Since the food truck is serving students on school parking lots, customers may suffer from food
allergies to milk, eggs, wheat, and fish. The menu of this organization is created with several
different food options so that such allergens can be avoided. Food allergy warning signs will be
included in the menu. Refrigeration is a critical point for our products. In order to avoid the danger
zone of 41˚F-135˚F, the refrigerator and freezer thermometers will be regularly checked and
recorded to assure the temperature is under 40˚F and 32˚F, respectively (Gregoire, 2013).
10
In addition to our locally sourced produce, which reduces carbon footprints, our plates and utensils
are made from 100% bamboo, which are durable and also biodegradable. Our cups and napkins are
from 100% recycled materials as well. The majority of our waste will be composted to our garden
which is located behind the centralized kitchen. The cleaning supplies used to sanitize our working
environment are made from non-genetically modified organisms (non-GMO) and organic sourced
material, which are non-toxic and environmentally friendly. The primary ingredients in our cleaning
formula are minerals, enzymes, and botanicals made by Ultra-Safe Plus+ products. The equipment
we have on board.
Our truck is Energy Star-certified. Instead of using the standard lighting system which consumes a
significant amount of energy, our truck utilizes LED lighting; it is durable, long lasting, and uses
75% less energy than incandescent lighting. Though we are just beginning our food truck business,
we hope that within the next couple of years we will convert from gasoline to biodiesel. The source
of our biodiesel will be derived from unwanted, used cooking oil from local restaurants. The steps to
convert used cooking oil to biodiesel are as follows: filter out the residue, transfer to the tank, and
heat to 120-130˚F one to four hours before operating the vehicle (Bogo, 2009).
Market Competitive Analysis
SWOT Analysis
Strength
Omega Bites’ food truck will operate under the supervision of RDN, Chen Glasheen. Carissa Lim,
the FSM, and the legal consultant will negotiate with San Diego Unified School District to sell the
food products to 6th to 12th grade students, our target market. The food truck will operate in the
parking lot of the following schools on alternative dates: Pershing Middle (>700 students) and
Patrick Henry High schools (2000 students). These are the first two pilot schools to launch our
business. Both schools are located in San Carlos with the population of 29,387: a middle class well
kept area, predominantly made up of Caucasians: the median household income is approximately
$120,000 and a 3% poverty rate (United States Census Bureau, 2014).
Our business covers half of the Top Ten Food Trends of 2014 (National Restaurant Association,
2014). Additionally, the American Heart Association (AHA) states that improved food environment
around the schools are necessary for American students to eat healthy while attending school (AHA,
2012). Furthermore, PTA lobbying is one of our strategic plans to successfully launch our business.
Weakness
Omega Bites is a unique company. It will require assistance and support from business partners’
strategic planning to gain community, the PTA, AHA, and nutrition advocates because it may be
seen as a direct competition with the school lunch program.
Opportunity
Omega Bites is the only RDN supervised and operated food truck in the region and it may be the
only one in the state and even the country. Public health is threatened with an obesity epidemic and
unfortunately, future generations may not live as long as their parents (Surgeon General, 2004). The
mission of Omega Bites is to curb the childhood obesity epidemic and prevent chronic diseases.
11
Threats
One of our competitors, Kosher Food Truck, provides healthier options than conventional food
trucks. Fortunately, it is operated outside Tarbut V’Torah community Day School in Orange County
(Light, 2014). A second perceived competitor sends different trucks rotating at Clairemont High
School Parking lot every Wednesday (10% proceeds go to Chieftain’s cheer leading team) (Bay Park
San Diego, 2014). See Table 5 below.
Table 5: The Competitive Analysis-SWOT Analysis
Factor
Kosher food truck
Chieftain food
trucks
Significance/
Customers
1. Omega 3 Cod on a stick
2. Omega 3 Chicken on a stick
3. Omega 3 sweet potato on a stick
4. Smoothie with 1% fat yogurt
5. Organic seasonal salad mix
w/side of dressing
6. Fresh organic apples,
conventional grown bananas/
oranges
7. Brown Rice/ 100% whole grain
bread roll
Jacob Ladder-Lamb/beef
patty burger
Beef burger, Turkey burger
House made veggie burger
Malawach flat bread
Malawach wraps
Add-on (avocado, Tater
Tots, Tempeh, Fried eggs,
Corned beef b Pepper steak,
Pastrami, chocolate spread)
Taiim (Bread pudding,
Biscotti)
Water, soda
Different food
trucks weekly.
Products depend
on which food
truck is on site.
Very significant
Price
Pl Combination Platter $6.49
2.2 Omega 3 on a stick $2.99
Smoothie 6oz/$2.25. 8 oz/$2.99
Fruits $.99/pc
Brown rice 1 c $.99/ .5c $.50
Roll $.50
Very competitive
Jacob Ladder-Lamb/beef
patty burger-$9.00
Beef burger-$7.50 Turkey
burger-$7.00
House made veggie burger$7.00
Malawach flat bread
Malawach wraps
Add-on$1.00-$3.00
Taiim(Bread pudding$4.00, Biscotti-$5.00)
Water-$2.00, soda-$2.00
Aligned with
individual food
truck pricing,
ranging from
$6.99 to $11.99 for
entree and $1.59 to
$5.99 for beverage
and smoothie.
Very significant
Service
Food Truck/on site. Lunch RD on
site. All employees are
professionals in the field and teach
how to interpret nutrition labels,
portion, sustainability & related info
Food Truck on site- Tarbut
V’torah Community Day
School
Food truck on siteClairemont High
School
Significant
Quality
Premium/RDs operate
Nutrient dense products & fresh
ingredients,
CSA organic vegetables/
apples
Kosher influenced by
modern technology, Farm to
table
Gourmet food
trucks from San
Diego region
Significant
Image
Trendy, Fresh ingredients, low
Religious, clean, medium
Fun & 10 %
Very significant
Products
Omega Bites
12
Target Market
Advertising
Location
Market Share
Customer
Review
Strength
Weakness
price, sustainable & educational
Community oriented
2014 up & coming trend
price, cultural, sustainable
proceed toward to
Clairemont High
cheerleading team
6-12 grade
middle/high schools
Right at where the students are
Jewish School students and
staff
Clairemont High
School students,
family and friends
Significant
Hand out free samples, Promotional
activities, Social Media, Website,
Fliers, Able to reach large # of
customers on site
School announcement, flier
Clairemont High
School Facebook
page
Significant
City of San Diego schools
Orange County
Clairemont, San
Diego, CA
Significant
100% for its targeted market
100% for its targeted market
Spilt between
different trucks on
site
Significant
Yelp and on social media
Yelp and on social media
Yelp and on social
media
Very significant
Innovative, educational, Portion
controlled, healthy, Nutrition
labeling, and sustainable to
ecology
Ethnic culture food.
proceed as clean, Jewish &
not containing pork product.
Serve Jewish population
and people who like Kosher
food
Different food
trucks weekly.
Provide 10% of
total sales to
school
S Start up and one of its kind may
need government, non-profit
organizations, AHA, community &
PTA supports
Geared toward to certain
population. Price is high
No consistency
quality control.
Many times, sell
unhealthy food to
high school
students
Marketing Strategy/ Emerging Technology
Niche
Omega Bites considers itself to be a bridge between the existing gap among the school lunch
program and the fast food vendors in the school.
Omega Bites aims to further develop its organization through following certain market trends that
are prevalent in today’s market. Being able to accommodate these trends will ensure the
organization’s success against other similar competitors. According to the annual predicted forecast
created by the National Restaurant Association, the “What’s Hot” Top 10 consists of predicted
culinary trends for the foodservice industry. Omega Bites follows 5 out of the 10 trends in the
“What’s Hot” Culinary List (National Restaurant Association, 2014):
13
1) Locally Grown Produce
 Omega Bites only buys straight from certified wholesalers and USDA certified organic
farm and other vendors from the San Diego area.
2) Environmentally Sustainable
 The use of ingredients such as sweet potatoes (SARE, 2012) or pacific cod (New England
Aquarium, 2014) are both examples of sustainable sources incorporated in Omega Bites
menu.
3) Healthful Kids’ Meal
 Fish and chicken, vegetables and brown rice are healthy choices for children to eat as
lunch when they attend school. Omega Bites only provides the best meals for our
children. Children have more energy to learn in the afternoon when they have a healthier
lunch.
4) Children’s Nutrition
 Children ages 5 to 17 need excellent nutrients, such as lean proteins, monounsaturated
and polyunsaturated fatty acids, vegetables, fruits and soluble fiber to grow into healthy
young adults. Omega Bites provides the type of nutrients that can help children maintain
healthy weight and prevent type II diabetes and cardiovascular disease.
5) Sustainable seafood
 Pacific cod is considered a sustainable seafood.
Our organization aims to provide sustainable distribution of energy as well as waste disposal. We
aim to efficiently use energy, water and materials with the intention of reducing waste.
Website: www.omegabites.com
The website will feature the company’s history, background information (including partners and
nutritionists) and mission statement, including an overview of our service and the products we offer.
The website will be regularly updated by our Marketing Manager, Vergil Mendiola to provide
customers with recent activity and any special events and occasions. The website will also include
links for our Facebook, Instagram and Twitter accounts providing weekly nutrition related
information from the Academy of Nutrition and Dietetics (AND) and USDA.
Omega Bites will provide free monthly educational sessions to the parents, students, and faculty. The
curriculum of these informative sessions will be designed and presented by Chen Glasheen, RDN.
During the first and subsequent meetings we will provide flyers describing automatic payment
options. Parents will have three choices of pre-payment: weekly, monthly, and semesterly.
Additional information about our business will be included in the flyers. See Appendix F.
Aside from our promotion through social media, we will also provide our profile and promote
weekly advertisements of our food truck through Mission Times Courier, San Carlos’ local
community newspaper. In addition, we will provide our profile to the San Diego Union Tribune and
local news stations such as CW, Fox News, NBC, KUSI, and KPBS.
We provide our target market with dynamic food choices that are similar in aroma and texture
comparable to their preferred fast food vendors. Our business thrives to simulate the student’s
interest in technology. Biweekly, we will conduct a nutrition facts trivia and the winner will receive
a voucher to redeem for the food of their choice from our menu. See Appendix G.
14
Goals and Barriers & Risk Mitigation
Short Term Goals
● Expanding our gross income to $150,000 at the end of the first year
● Repay 25% of the bank loan within first the three years
● Increase nutrition and health awareness within the City of San Diego
Long Term Goals
● Expansion of business to all of the San Diego Unified School District within the next four
years and all secondary schools in San Diego County within the next eight years
● Expansion of business to Orange County and Los Angeles within the next 15 years
(2029) and expanding throughout California by 2035 (21 years)
● To repay bank loans within the next 10 years
● Increase our gross income from $150,000 to $500,000 by 2019 (233%), to $750,000 by
2023 (400%) and to $1,000,000 by 2030 (566%) and to $1,5000,000 by 2035 (900%)
Figure 1. Omega Bites’ projection of financial growth from 2015 to 2035
Increase our gross income from $150,000 to $500,000 by 2019 (233%), to $750,000 by
2023 (400%) and to $1,000,000 by 2030 (566%) and to $1,5000,000 by 2035 (900%)
Risk Projection/Mitigation/Solutions
● Competition: If other food trucks start to offer similar products and services: Our low
price and high quality products will limit the ability of other competitors.
● Acceptability: If the students prefer other foods to ours. The texture and aroma of our
products are similar to their preferred fast foods.
● Decreased community support from PTA due to political issues: Parents and teachers
have the best interest in children’s health; therefore, they will always support the mission
of our food truck.
15
● Increase in raw material cost and labor cost after expansion from vendors and
unforeseeable environmental factors: We can change to other newly started USDA
organic certified local farms if Suzie’s Farm increases their price points. Additionally, if
Costco does not carry a certain product, we can purchase our items from either Sam’s
Club or a successful local business who supports our mission.
● New laws requiring RDN to have MS by 2024 which means a higher pay for RDN after
expansion (Commission on Dietetic Registration, 2013): By 2024, our income will be
over 500% compared to year one revenue which will cover the costs of higher salary.
● Change of food truck regulations by the San Diego County or State of California: When
and if the rules and regulations change and take effect, we will flexibly abide the law.
● Inquiring more funds through SBA equipment loan after expansion if the net income is
not sufficient: With projection of growth, we anticipate to have enough funds to cover
these expenses. Even if the funds are not enough, we can apply for line of credit from the
SBA CDC/504 loan.
Start-Up Expenses & Analysis
Financial Plan
Omega Bites owners will have a combined amount of $30,000 in capital to invest in the startup of
our company. We will borrow $70,000 in a long-term loan, which will give us enough money to
cover our start-up expenses. We will also borrow $100,000 in a short-term loan to cover our first
year of expenses until our company becomes profitable. Additionally, we will have a $20,000 lineof-credit available with a projected interest rate of 10% if need be.
We decided to invest more in our food truck so that it comes fully loaded and ready to go. This way
we can be sure that it is held up to all current food truck standards. Buying a more expensive food
truck will also decrease our expenses on kitchen supplies, as all of the equipment is supplied in the
vehicle and are new and energy efficient and star certified, which is not only better for the
environment, but will also help to decrease our electricity bills long term.
All other expenses listed below include: vending permits and licensing, professional, legal, and
consulting fees, tax identification numbers and a health permit (Office of the City Treasurer). All of
these expenses were researched and are standard for the southern California region in which we will
be operating. California law requires that all equipment in the truck be certified by the American
National Institute, which ours is (Upcounsel.com). We wanted to ensure that we are doing
everything properly in order to be up to par on food safety standards so that we can run a successful
company.
We also budgeted $1,000 into our website design so that we can get a very nice website, which will
hopefully draw out business from future clients. We are also going to utilize free social media
advertising, as our target demographic tend to be quite savvy in social media and it could create a
good following for our business right off the bat. We are also going to use resources with the (PTA)
as it is an avenue that we can sell our healthy lunch options to parents and teachers and it could be
advertised out to other schools as well.
Most of our recurring costs are pretty standard and are all following the legalities found in southern
California. We have a commercial kitchen space (found on Craigslist.com) that we will rent. A
California law states that all mobile food vendors must operate in conjunction with a food facility, or
16
a commissary like a commercial kitchen (Upcounsel.com). All food trucks in the state of California
must also be parked at an approved commissary, which our commercial kitchen is feasible for our
food truck to be parked there overnight.
Our other largest accrued recurring expense is operational costs. We need to take into consideration
that Omega Bites is owned by six business professionals, whom all have pretty impressive
credentials. That being said, it is very difficult to be able to afford competitive wages with a start-up
company. Because we will not hire out any external employees within the first few years, all coowners have decided on a wage that will be sufficient to get by, while also allowing a grand majority
of the company’s income to be re-invested into the company. We all agreed on paying ourselves an
annual income of $23,040, which is a total of $138,240 for all six owners combined. Although this
is our largest recurring expense, we are already paying ourselves bare minimum and cannot afford to
budge much on this expense. However, with our company’s projected growth we should be able to
increase our salaries as Omega Bites starts to expand and pay off its initial start-up debt. See Table 6
and Figure 2 for total start-up capital; Figure 3 shows the recurring expenses for the first year.
17
Table 6: Start-up Capital
One-time start-up costs:
The purchase of the food truck (already up
to code)
$71,500
Vending permits and licensing
Permit - $695
Food License - $400
Professional, legal, and consulting fees
$990
Initial food purchases
$1,042 (weekly food costs)
Kitchen supplies
$500 (our truck is loaded and already up to
code)
Initial office equipment and supplies
$1,000
Website design
$1,000
Initial advertising and Marketing
$1,000 (price will be reduced after the first
few months. Initially we contact PTA)
Tax Identification Number
$52.00 ($34.00 Business Tax, $17.00
zoning fee and a $1 state mandated fee) (1)
Health Permit
$469.00
Business Cards
$250
Total Start-up Expenses:
$78,898
18
Figure 2. Omega Bites’ projected one-time start-up expenses
Figure 3. Omega Bites’ recurring expenses for the first year of business
19
Table 7: Operational Budget
Recurring costs:
Cost for the first year of business:
Insurance (coverage for your vehicle,
business property, general liability and
workers’ compensation)
Product Liability Insurance - $1,000/year
Commercial kitchen rent
$800 a month = $9,600/year
Operational cost (payroll)
$23,040 annually per employee. We have 6
employees, which equals 138,240 annually.
Credit-card processing equipment
Square – payments done via Ipad and it is
free to use, with a 2.75% interest fee
Truck and equipment maintenance
$1,000
Miscellaneous
$1,000
Fuel
$250/month = $3,000/year
Food purchases
$9,378/year
Total Annual Recurring Expenses:
$163, 218
20
References
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Retrieved October 19, 2014, from http://www.forbes.com/sites/quora/2013/10/22/what-doesit-take-to-be-a-great-general-manager-for-a-web-company/
Education Portal (n.d) Marketing Manager: Career Info & Requirements. Retrieved October 19,
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ing_a_Marketing_Manager.html
Monster.com (n.d.) Accounting Manager Job Description Sample. Retrieved October 19, 2014 from
http://hiring.monster.com/hr/hr-best-practices/recruiting-hiring-advice/jobdescriptions/accounting-manager-job-description-sample.aspx
Gregoire, M. B. (2013). Foodservice organizations: a managerial and systems approach (8th ed.).
Boston: Pearson/Prentice Hall, 2004. Print
Companies Incorporated (2014) Why Form an LLC? Retrieved October 21, 2014 from
http://www.companiesinc.com/llc/why.asp
Centers for Disease Control and Prevention (CDC), (2014) Childhood Obesity Facts. Retrieved
November 8, 2014 from http://www.cdc.gov/healthyyouth/obesity/facts.htm
Support Staff (2014) The Complete Breakdown of Food Truck Operation Costs. Retrieved October
26, 2014 from http://foodtruckempire.com/how-to/costs/
UsedVending.com (n.d.) Retrieved October 11, 2014 from http://www.usedvending.com/used-foodtrucks-for-sale.php?keyword=&geo_code=92108&do_on_page=10&do_sort=4&price=0 Insure My Food Truck (n.d.) Coverage Menu. Retrieved November 4, 2014 from
http://www.insuremyfoodtruck.com/coverage-menu
San Diego Country of Environmental Health (2012). Retrieved November 1, 2014 from
http://www.sandiegocounty.gov/content/dam/sdc/deh/fhd/mobilefood/mfffaq_mp.pdf
Moody, D (2014) Telephone Interview
California Retail Food Code. (n.d.). California Department of Public Health. Retrieved
November 8, 2014, from http://www.cdph.ca.gov/services/Documents/fd
Loken, J. K. (1995). The HACCP food safety manual. Retrieved November 10, 2014 from
http://www.sandiegocounty.gov/content/sdc/deh/fhd/food/foodborneepidemiology.html
FSIS. (n.d.). Food Safety Education. Retrieved November 8, 2014, from
http://www.fsis.usda.gov/wps/portal/fsis/topics/food-safety-education/get-answers/foodsafety-fact-sheets/foodborne-illness-and-disease/foodborne-illness-what-consumers-need-tokno/
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Vanschaik, B. (2014) Mobile Food Trucks: California EHS-Net Study on Risk Factors and
Inspection Challenges. Journal of Environmental Health. 76(8): 36-37.
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http://www.popularmechanics.com/cars/alternative-fuel/biofuels/4302655
United States Census Bureau (2014). San Carlos, Ca. Retrieved November 5, 2014 from
http://quickfacts.census.gov/qfd/states/06/0665070.html
American Heart Association (2012). Mobile Vending Near Schools Policy Statement. Retrieved
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&ModuleID=45
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22
Appendix A. Product Description
Products
Omega-3 Cod on a stick
Omega-3 Chicken on a stick
Omega-3 Sweet Potato on a stick
Smoothie with 1% fat yogurt
Organic seasonal salad mix with dressing on the side
Bananas, oranges and organic apples
Organic brown rice
100% whole grain bread roll
Free water in a cup
Appendix B. Menu Pricing
Menu
Pricing
Platter combination
(Choice of protein + salad + grain + a piece of fruit)
$6.49
Omega-3 on a stick—2 sticks
$2.99
Smoothie—6 oz
$2.99
Salad only
$2.99
Fruits only
$0.99/pc
Grain only—Rice
$0.50/ ½ cup
$0.99/cup
Grain only—Roll
$0.50
23
Appendix C
Grumman Food Truck for Sale in California!!!
California food truck for sale. This is a 2007 Grumman Workhorse mobile kitchen truck that is set
up for a variety of fresh food service. Auto transmission, gas engine- 17k miles. See details for
features & equipment list.
$71,500. California
For sale in California, this food truck is a turnkey business. The truck is permitted in San Diego
county and beyond all of the equipment built into the truck, it also comes with the additional
equipment needed to run a full kitchen: Vitamix, Casa induction burner, Cadco half sheet pan
convection oven, Waring food processor, Waring immersion blender, Cambro storage containers,
whisks, spoons, mandolin, deli slicer, and a ShopKeep POS system with two printers.
Item Features
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Transmission - Automatic
Passenger Seat
Two Concession Windows
Gas Engine
Hot Water Heater
Hand-washing Sink
Triple Sink
Refrigerator
Generator
Fresh Water Tank
Gray Water Tank
Propane Tank
Work Table
Fire Suppression System
Exhaust Hood
Exhaust Fan
Exterior Lighting
Interior Lighting
Water Tank
Sound System
Cabinets
Fryers
Stainless Steel Wall Covers
Insulated Walls
GFI Outlets
Diamond Plated Aluminum Flooring
24
Appendix D: Floor Plan- Schematic drawing
25
Appendix E: Uniform
26
Appendix F: Omega Bites’ promotional flier
27
Appendix G: Sample Nutrition Facts Trivia
Q: 1. Which of the following nutrients is needed to build and maintain the structural
components of the body?
Carbohydrates
Protein
Fat
Fiber
Q: 2. Which of the following nutrients is known as the sunshine vitamin?
Vitamin C
Vitamin A
Vitamin K
Vitamin D
Q: 3. All of the following are needed for strong bones except:
Thiamin
Calcium
Magnesium
Vitamin D
Q: 4. Which of these nutrients is the preferred energy source for the body?
B Complex Vitamins
Carbohydrates
Fats
Fiber
Q: 5. This nutrient is needed for a healthy immune system and strong connective tissue:
Fiber
Vitamin K
Vitamin C
Fluoride
Q: 6. Which of the following is the best source for omega-3 fatty acids?
Corn oil
Wheat products
Pork
Sardines
Q: 7. This mineral is essential for healthy red blood cells and a deficiency might cause anemia.
Iron
Magnesium
Iodine
Chromium
28
Q: 8. This vitamin is needed to prevent a birth defect called Spina Bifida
Vitamin D
Vitamin A
Folate
Vitamin E
Q: 9. This nutrient is needed for making hormones, healthier skin, and to make cell
membranes:
Fat
Carbohydrate
Fiber
Vitamin B12
Q: 10. This nutrient is most important for healthy vision:
Vitamin K
Iron
Calcium
Vitamin A
29