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)

AlexCostco   Walmart

Black Pepper $4.28/8 oz   Red Onion $.99/ pound

Pork (Loin) $4.99/pound   White Onion $1.49/pound

      Green Peppers $1.49/pound

Fresh Direct   Steak $10.99/pound

Chicken $4.79/pound   Mushrooms $2.99/ 8 oz.

Cumin $.99/ 3 oz.   lettuce $.99/ each bushel

Oregano $.99/1.125 oz.   Tomatoes $1.99/pound

Salt $.89/ 26 oz.   Cherry Tomatoes $3.99/ 16 oz.

Avocados $2.99/ 2 avocadoes   Sour Cream $2.69/ 16oz.

Limes $4.99/ 8-12 ct   Shredded American Cheese $20.70/ 5 pound

Jalapeno Peppers $2.99/ pound   Mangos $1.69/ pound

Scallions $.99/ each   Black Beans $.89/15.5 oz

Habenaro Peppers $2.99/pound   Pinto Beans $.89/15.5 oz

      Chocolate Dipping Sauce for Churros $2.99/ 22 oz

Roundeye Supply   Sugar $2.39/ 4 pounds

Dried Ancho Chiles $13.99/ pound   Mexican Blend Shredded Cheese $20.70/ 5 pound

Adobo Sauce $27.84/24 cans 7 oz.   Cilantro $.99/ 3 oz

Garlic $129.00/ 30 pounds   Thyme $.99/ 1.5 oz.

Canola/Vegetable oil $55.03/ 35 pounds  

8 inch soft shells $47.88/ 288 pieces   Food Service DirectBrown rice $16.68/ 25 pounds   Churros $42.25/500 count

White Rice $16.34/ 25 pounds   Chocolate Sauce $15.50/Half Gallon

Tortilla Chips $22.43/ 75 oz.   Pico De Gallo $2.59/pound

Red Wine Vinegar $23.56/ 4 gallons   Paper Boats $60/900 count

      Napkins $53/1800 count

Sam's Club      

Forks $8.94/600 count      

Aluminum Foil $45.88/ 12'' x 1000' Roll      

Suppliers

• Simplifies the inventory checking system

• Creates a routine for delivery scheduling

• Use first few months to familiarize ourselves with necessary inventory & ordering levels.

Periodic Review SystemActual Demand (D) 4900000

Order Cost (S) 500

Unit holding cost (H) 100

optimal order quantity (EOQ) 7000.00

# of working days/weeks 140

Review Period (P) 0.20

expected demand/time (dbar) 35000

stand.deviation of demand per unit time 10

Lead time (L) 3

expected demand during projection interval 112000

standard deviation of demand during projection interval 17.88854382

cycle/customer service level 0.90

safety stock 22.93

Target Inventory Level (T) 112022.93

Expected Annual Cost 702292.51

Periodic Review System

Customer Demand

Wednesday Thursday Friday Saturday0%

10%20%30%40%50%60%70%80%90%

Popularity of Bars Broken Down by Night

of Operations

Once a Month Every Other Week

Once a Week Twice a Week0%5%

10%15%20%25%30%35%40%45%50%

Frequency of Student Purchases

• Nightly customer demand varies greatly

• Frequency of student purchases greatly impacts product demand

• Impact on sales

Product Demand

Chicken42%

Steak34%

Pork17%

Vegetables7%

Popularity of Entrée Filling

Soft Tacos29%

Quesadilla14%

Quesarito31%

Burrito26%

Popularity of Entrée Type

Rice10%

Beans10%

Chips35%

Side of Guacamole

20%

Side of Sig-nature Salsa

25%

Popularity of Sides

Ingredient Forecasting

Queuing System

Cashier: Takes order, rings up transaction (dollars or half dollars)

Assembler: process orders using batch-order process

Deliverer: calls out name, serves food to customer

Significant CostsVARIABLE

• 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!