1. food and drink
2. desserts and baking

B usiness Plan
Project ECHO/UCLA Anderson School of Management
Annual Business Plan Competiti on
New Off - Campus Busi ness
Chart er Oak High School
Team Members:
Jessi ca Q uijas
Chri sti an Vi ct or
Austi n M cMi nn
Matt Jabson
Executive summary
The Concept: Cali Freeze is a mobile frozen yogurt truck providing an affordable, gourmet treat in an array of
flavors, delivered from a 1950’s retro-vintage “Cali” themed vehicle. Cruising the beautiful city of San Diego, Cali
Freeze boasts a modern beach inspired flare sure to attract the locals.
The Menu: Three flavors are offered daily, while signature and specialty flavors are rotated based on a flavor
cycle. Customers can choose from four sizes – Low Tide, High Tide, Rip Tide, and Tidal Wave. Various toppings are
available to allow customers to create a personalized treat, whether it’s healthy or indulgent. A catering service is
also offered to enhance any special event.
Industry Data: The street vendors industry was catapulted into mainstream as a result of the Great Recession, but
shows no signs of slowing down and continues to change, offering new and exciting options. The frozen yogurt
segment is also experiencing success due to its healthy reputation and potential profitability. San Diego will
provide a fresh, new market full of potential and will complement the Cali Freeze image.
Target Market: The primary target market is young adults, specifically women, ranging from 18-30, who are health
conscious and trendy, living in the San Diego area. Additionally, the market was segmented to focus on
psychographics, including socially conscious trend setters, who are adventurous and thus, attracted to the modern
ambiance of the food truck experience.
Marketing Strategy: Cali Freeze will launch a small scale inbound marketing campaign focused on earning the
attention of the consumer, primarily utilizing social media platforms. Tactics will also include sampling, coupons,
and word of mouth. Additionally, Cali Freeze will participate in community/charitable events and special event
opportunities to increase awareness.
Competitor Analysis: Direct competition includes other dessert style mobile food facilities in the San Diego area.
There are currently only two of these venues; however the menus offer only baked goods not frozen dessert.
Secondary competition includes a host of frozen yogurt stores in the San Diego area. However, the convenience of
the truck and mobility allows Cali Freeze to move to the consumer and compete in this market. Additionally, any
other food truck, restaurant, or fast food stop competes indirectly with Cali Freeze.
Operations: To ensure that the day to day operations work smoothly a routine check is performed daily, before
and after the business day. This includes a rundown of vehicle equipment, sanitization, and inventory check. The
truck will be parked nightly at the commissary after the end of day donations are made at the local San Diego Food
Bank. All employees are required to complete appropriate food certification courses and the vehicle meets all
requirements and regulations.
Management: In the beginning, Cali Freeze will operate as a partnership (LLC), hiring one minimum wage
employee to assist the partners during the weekdays. The partners will switch off working during the week with
the employee. As the business succeeds, future plans include hiring additional employees, allowing the partners to
work from a management stand point – one running the catering service, while the other manages the trucks(s).
Financial Data and Projections: A list of initial start-up costs was generated for Cali Freeze, which includes major
expenditures necessary to open the business. A small business loan will be utilized to maintain operations during
the opening months. Sales for the first twelve months of operations were projected, accommodating for
seasonality. A full cost of goods sold analysis was conducted to reasonably price each product and the business is
projected to see positive cash flows in month 11.
Table of Contents
1.0 About Cali Freeze
1.1 Mission Statement
1.2 Description
1.3 Community Outreach/Involvement
2.0 Industry and Market Research
2.1 The History of Food Trucks
2.2 The Industry - Defined
2.3 Not a Fad!
2.4 Why Frozen Yogurt
2.5 Why San Diego
2.6 Survey Data
3.0 Target Market
3.1 The Consumer
3.2 Demographics
3.3 Psychographics
4.0 Competition Analysis
4.1 Indirect Competition
4.2 Direct Competition
4.3 Competitive Advantage
4.4 Competitive Response
5.0 Marketing Plan
5.1 Pre-Grand Opening
5.2 Grand Opening
5.3 Social Media
5.4 Promotional Strategies
5.5 Location
5.6 Image
6.0 Operations
6.1 Basic Products and Maintenance
6.2 Catering
6.3 Vehicle Operations/Regulations
7.0 Management
7.1 Organization
7.2 Hours of Operation
7.3 Wages
7.4 Scheduling
7.5 Certifications
7.6 Limited Liability Corporation (LLC)
8.0 Financials
8.1 Start Up Costs
8.2 Monthly Expenses
8.3 Funding
8.4 Sales Forecast
8.5 Profit Margin
8.6 Catering
8.7 Cash Flow
8.8 Break Even Analysis
9.0 Appendix
9.1 Flavor Cycle
9.2 San Diego Food Trucks
9.3 Survey Data
9.4 San Diego Demographics
9.5 Competition Matrix
9.6 Grand Opening Flyer
9.7 Punch Card & Business Card
9.8 Catering Form
9.9 Amortization Table
9.10 Sales Forecast
9.11 Income Statement
9.12 Cash Flows
9.13 Resources
1.1
Mission Statement
“Our goal is to dominate the dessert segment of the mobile food truck industry by offering a healthy and
affordable treat, while keeping it convenient and fun – giving the customer a unique Southern California
experience.”
1.2
Description
Cali Freeze is a casual, yet delectable, mobile frozen yogurt truck, serving to popular San Diego
destinations. It is a gourmet food facility with a vintage, yet modern and clean “California” appeal perfect for this coastal, beach community. The image is essential to the success of the business and is
represented in the menu, color scheme, and promotional tactics. The color palette includes shades of
blue and oranges, reminiscent of the beach and sunset - the typical California lifestyle. In keeping with
the theme, the four yogurt sizes, from smallest to largest, are known as Low tide, High tide, Rip tide and
Tidal wave. The menu offers traditional options along with specialty and signature flavors, named after
popular San Diego destinations. (See List Below) Due to popularity and data from a recent national
survey, three traditional flavors will be served daily – chocolate, vanilla, and tart. A flavor cycle
determines other flavors offered throughout the month, including signature tastes and specialty flavors.
This allows Cali Freeze to constantly change the menu and the consumer to experiment with the
different options (Appendix 9.1 - Flavor Cycle). Additionally, customers have the ability to make the
frozen treat as decadent as they want with array of topping choices, including fresh fruit, syrups, candy,
and nuts. This will satisfy the healthy consumer as well as the extreme and indulgent.
1.0 About Cali Freeze
Signature Flavors
Specialty Flavors
Coronado Chocolate Raspberry
Pomegranate
Bayside Berries
Cookie Dough
Balboa Strawberry Banana
Mango
San Diego Sunrise
Point Loma Lime
Caramel Valley
Lego My Froyo
Cookies & Cream
Pina Colada
Cake Batter
The truck route was carefully designed to capitalize on some of the premier San Diego locations
designated for mobile facilities. Also, Cali Freeze will maximize the opportunity to sell by attending
special events around the area, such as festivals, farmers markets, movie premieres, grand openings,
and a host of outdoor events. To maximize business opportunities, a catering service is offered to
accommodate any other event, from weddings, business socials, birthdays, etc. Thus, Cali Freeze
anticipates longer hours on Friday and Saturday to cover such events.
All activities will be monitored through various social media platforms, the most inexpensive, yet
effective way to create awareness and engage with consumers in the street venders industry. Here,
customers will realize the daily route, participate in monthly activities, and share comments and
feedback with the Cali Freeze team.
1.3
Community Outreach / Involvement
Cali Freeze takes pride in contributing to the community in numerous ways. Partnering with local
charity events in San Diego, like FORE Casa Kids Golf Tournament and Camp H.O.P.E., provide
opportunities to give back to those in need. For instance, the 20th annual Luau and Longboard
Invitational not only gives is a chance to help cancer research, but also ties in with the established beach
concept. Additionally, at the end of the route, all remaining product will be donated locally to the San
Diego Food Bank.
Overall, Cali Freeze is dedicated to offering a unique product, accompanied by friendly service and a
distinct, fun atmosphere, while maintaining a commitment to the community. So, come today and find
out what’s “So Cool, So Cali”!
2.0 Industry and Market Research
2.1
History of Food Trucks
The history of American food trucks dates back many years as mobile dining and street food have been
part of American’s dining habits since the late 17th century. Since then, food trucks have taken a front
seat in the world of American street food and are part of an ongoing food revolution across the nation.
So, the basic concept is nothing new. Yet, the food truck concept has taken on a new meaning as the
mobile food industry continues to morph.
The Great Recession made it much harder to finance and start a traditional restaurant. This led many
budding restaurateurs to start food truck operations instead. The costs and the financial risks are much
lower - and food trucks can be used to test out menu items and concepts that, if successful, can become
brick and mortar restaurants.
Food trucks are suddenly everywhere in Los Angeles and other big cities around the U.S. People are
intrigued by the food truck industry and the unique ideas and themes people have come up with. Food
trucks are allowed to navigate from city to city and reach out to new customers rather than the
customers coming to them, which means you can have ten good spots instead of just one good spot.
Overall, mobile food facilities (MFF) offer quality, value, and convenience as well as support the
consumers need for fresh, local food and a variety of unique options. Additionally, consumers are likely
to support these smaller operations and their commitment to sustainability.
2.2
The Industry – Defined
Cali Freeze will operate as part of the Street Vendors Industry. This industry includes businesses that
prepare and serve meals and snacks for immediate consumption from motorized vehicles, or nonmotorized carts. According to IBISWorld.com, this industry will grow at an average annual rate of 6.3% in
comparison to a 1.9% overall GDP growth over the next five years.
While the rest of the food-service sector has been suffering due to
lower consumer spending rates during the recession, the street
vendor industry has made leaps and bounds over the past five years.
Street vendors have been able to dodge the recession’s blow by
offering new and compelling products that attracted a more diverse
client base. These offerings include ethnic foods and fusions, gourmet
foods and other dining options not traditionally associated with street
food and trucks. This information supports Cali Freeze’s entry and
anticipated success in this market.
2.3
The Food Truck Industry – Not a Fad
At first, many labeled the Mobile Industry as a “fad”, but you don’t
need to look far to find data to suggest otherwise. In fact, a business
Figure 1 This graph depicts the
forecasted sales growth for the food
truck industry
journal dated December 2012 stated; “rolling restaurants” are on track to be a $2.7 billion national
industry by 2017, generating roughly $650 million in annual revenue. This market share is expected to
jump 3-4% in the next five years. “In other words, food trucks are not a fad but a viable market segment
with significant competitive advantages over quick-serve, fast-food and take-out food vendors,” the
report notes. (See Figure 1 above).
2.4
Why Frozen Yogurt?
A Healthy Treat
By definition, frozen yogurt is a hybrid between traditional ice cream and the healthier yogurt based
products. Frozen yogurt is an innovative way for customers to enjoy sweets without the bad side effects.
It all started in the 1980s, a decade characterized by a “nationwide health craze that spawned celebrity
exercise videos, celebrity-endorsed weight loss products, and Olestra.” Today many natural health
conscious food stores are experiencing great success, even though “natural” items can have a larger
price tag. Therefore, frozen yogurt is a great healthy substitute to ice cream, gelatos, smoothies, and
other frozen desserts.
According to research conducted by the NPD Group, an increased interest in probiotics, the healthful
bacteria found in yogurt and some other foods, may be a factor in the popularity of this alternative to
regular ice cream. Frozen Yogurt also has a lot less fat that ice cream and can be topped with many
healthy products such as fruits, granola, and nuts. The healthiness of the treat is, therefore, up to the
consumer, but it is possible to build a customized frozen yogurt cup with no guilt, because you decide
what goes on top.
Trends in the Frozen Yogurt Industry
The 1980’s marked the first wave of success for the industry. However, frozen yogurt sales suffered
major declines in the 1990’s, making a huge comeback in the last decade, with a new generation of
flavors, toppings, and store environments.
A report dated February 2013 suggests that the frozen yogurt industry is experiencing a second wave of
success, with modified consumer preferences. Customers are seeking out venues which include a “cool”
vibe, distant from the outdated ice-cream parlor environment. Instead, customers are seeking a
modern fro-yo setting, including high-end furniture, Wi-Fi, flat screen televisions, and occasional live
performances. Daniel Kim, CEO of Red Mango agrees stating, “Frozen yogurt franchises are attempting
to create a coffeehouse setting with a relaxing ambiance turning them into trendy meeting places.”
Surprisingly, the frozen dessert market grew during the recession as opposed to other franchise
establishments and the data suggests long term expansion in the future. Nation’s Restaurant News
states, “Yogurt will likely be a longer-lasting trend and (I) see no reason why the frozen variety should
fade out.” Thus, many major franchises are expanding to include more locations and Cali Freeze will
capitalize on the increasing popularity as well.
The table below suggests trends and recent options for serving up frozen yogurt.
Soft Serve
This type is typically tarter and plainer than hand-scooped flavors, letting
customers experiment with toppings without being overwhelmed by the
sweetness of the yogurt. Soft-serve yogurt can either be charged by
number of servings or by weight.
Hand-Scooped
Hand-scooped frozen yogurt, a healthier twist to the original ice cream
parlor concept, presents an opportunity for franchises to get fully creative
with their frozen yogurt flavors.
Cakes and Pies
Some frozen yogurt shops even serve frozen yogurt filled cakes and
pies. These delicious desserts are a favorite during birthdays and holiday
celebrations.
Smoothies
In response to the current health foods trend, some frozen yogurt
franchises have decided to sell vitamin or protein enriched smoothies.
These smoothies are typically made with the same soft-serve yogurt that
is already sold in the store – simply blend in fresh fruit and juice.
Profitability
Frozen yogurt maintains a high potential for profitability. The National Restaurant Association states,
profit margins could be as high as 85% with food costs as low as 15%, requiring minimal supplies,
ingredients, and overall labor. This is good news given it is also one of the highest growth segments in
frozen desserts.
Additionally, food trucks hit a higher price point than many of their fast food competitors. A recent
business journal found that the average customer spends $9.80 on lunch at a food truck and an average
$14.99 on dinner. In fact, only 8 percent of lunch patrons spend less than $8. Frozen yogurt is one of
those inexpensive luxuries and comfort foods that consumers are willing to indulge in despite lower
disposable income levels. Thus, people are spending money for the food truck experience and
convenience, providing big returns for the market and Cali Freeze.
2.5
Location-Why San Diego?
The Los Angeles area was one of the first major cities to experience overcrowding in the industry. The
mild weather and urban setting offered the perfect landscape for the mobile market. Many will argue
that this locale is now saturated and those in the industry state it’s reached a level of “3rd Generation
saturation, with Orange County nearing in at 2nd generation status.” Conversely, San Diego is noted as a
“fertile market for industry growth” and thus a viable opportunity for Cali Freeze. There are roughly 259
food trucks in Los Angeles, 54 in Orange County, and 20 in San Diego (See Appendix 9.2-San Diego Food
Truck List). Of those venues, there is a limited supply of dessert options and/or frozen dairy products.
Surprisingly, only 2 dessert-style trucks are registered to operate in San Diego County. Additionally, San
Diego is near the Pacific Ocean, so it complements Cali Freeze’s beach/surfer archetype. When
comparing these locations, San Diego proves to be the best route, providing the most potential for Cali
Freeze.
Food Truck Deployment by County
Number of Food Trucks* Number of “Dessert” style trucks
Los Angeles County
259
39
Orange County
54
5
San Diego County
20
2
*Numbers are based on county data and lists all registered vehicles. Cali Freeze is
aware of unregistered trucks.
Overall, the industry is viable and expanding with room for growth. The market segment for frozen
yogurt is growing and San Diego is a prime location for a mobile food facility.
2.6
Survey Data
On October 12, 2012 United States Census Bureau and the NPD Group conducted a survey of 350
consumers nationwide and posted the findings on statisticbrain.com. (See Appendix 9.3 - Survey)
According to this survey, 78.9% of this population prefer frozen yogurt over ice cream, gelato, and snow
cones giving Cali Freeze an advantage; with 85.8% consuming frozen yogurt between once a week and
once a month, and even 4.5% consuming frozen yogurt daily. The flavors that dominate the market are
vanilla with 40.8%, chocolate with 34.1%, and tart with 25.1%. This data supports the Cali Freeze menu,
which offers these three main flavors as well as a rotating flavor cycle to accommodate any taste
however crazy or extreme the request.
3.0 Target Market
3.1
The Consumer
Direct:
The Cali Freeze target market is segmented into two groups:
Primary - Young adults, specifically women, ranging from 18-30, who are health conscious and
trendy, living in the San Diego coastal area and appreciate the convenience provided by the food
truck experience. Research indicates this group proves most likely to indulge in the frozen
dessert treat. Thus, Cali Freeze will market directly to these individuals along the proposed
route.
Secondary - Since the appeal and vibe is attractive to a wider audience, Cali Freeze will segment
by psychographics as well. As such, Cali Freeze plans on capitalizing on socially conscious trend
setters, who are adventurous and attracted to the modern ambiance of the food truck
experience, including any age and/or gender. Marketing tactics for this segment will focus on
consumer awareness of the brand as well as catering/event services offered at Cali Freeze.
Indirect:
Subsequently, Cali Freeze will attract local residents living/working on or around the proposed route as
well as tourists looking for a unique place to partake in the San Diego lifestyle. With an estimated 31
million tourists per year, this is a huge potential market for the company. In an effort to reach this
segment, marketing tactics will focus on the fun, unique experience and quality customer service.
3.2
San Diego Demographics
City demographics prove the city’s population is split almost in half with 49% females and 51% males
(See Figure A). The median resident age for is 32.5 years of age, with 20-34 year olds making up the
biggest percent of the population - roughly 29% (See Appendix 9.4 - Demographics), which supports the
proposed target audience. The median household income of San Diego residents is $62,480 as shown in
Figure B. San Diego households are more affluent, earning slightly more than the surrounding cities of
Lomita ($62,464) and Vallecito ($62,348). Thus, it is a middle aged community, with the means to use
disposable income on items like Cali Freeze’s frozen yogurt.
Figure A
Figure B
According to San Diego Magazine, San Diego residents are, “no slouch when it comes to the most
current food trends.” The population is described, along with L.A. and Dallas, as cities that “know food.”
From food trucks to pop-up restaurants, San Diego “seems to be on the cutting edge of where food is
headed.” This validates the type of consumer Cali Freeze is looking for and supports the overall target
audience.
3.3
San Diego Geographics
With over 1.3 million people, San Diego is the 2nd most populated city in the state of California and
eighth largest in the United States. San Diego has many resources including its location, population, and
climate that will be assets in order for Cali Freeze to become a successful business and thrive. San Diego
is renowned for its idyllic climate, surrounded by 70 miles of pristine beaches, millions of tourists,
businesses, and array of attractions providing year round outdoor recreation. Additionally, workers are
always on the go, traveling an estimated 24 miles to reach their destination. Cali Freeze’s vintage, yet
modern “Cali” charm accompanies the San Diego landscape and will aide in appealing to the selected
market.
4.0 Competition Analysis
4.1
Direct Competition
Cali Freeze has very little direct competition in the San Diego area
given there are only two other dessert food trucks operating in
the same locale. They are called Sweet Treats and Sweets in
Motion, but neither of them sell frozen yogurt. Their menu
includes desserts and other related items, including brownies,
cookies, cake pops, cheesecakes and whoopie pies. This reveals a
void in the market for Cali Freeze to fulfill.
Secondary competition includes any frozen yogurt store within
the vicinity of the route. This includes Rockie’s, Pinkberry, Yogurtland, Paradis Yogurt, Yogurt World, and
Coldstone, among others – shown with the red X’s on the map. However, the locations are not directly
on the proposed route, but a few miles away. Thus, the convenience of the mobile facility and the ability
to move to the customer allows Cali Freeze to compete with this market.
4.2
Indirect Competition
Cali Freeze’s indirect competition includes all food trucks, restaurants, and fast food chains in the
surrounding area. Such establishments offer various desserts, sweet treats, and light snacks which will
compete with the Cali Freeze menu. However, none of these competitors offer the convenience and
appeal of the food truck experience – the biggest advantages for Cali Freeze.
4.3
Competitive Advantage
Cali Freeze proves to have a competitive advantage based on four main factors: Convenience, Image,
Product Line, and Location. (See Appendix 9.5 - Competition Matrix)
Convenience
The mobility of the food
truck allows Cali Freeze
the opportunity to
travel to customers and
make necessary changes
to the route as needed.
4.4
Image
Cali Freeze promotes a
“California”, coastal vibe
within a retro, yet
modern appeal. A clean,
fun ambiance adds to the
overall image and will
attract residents in the
area.
Location
Cali Freeze will be the
only frozen yogurt food
truck operating in the
San Diego area – a
coastal community,
enjoying an active
outdoor lifestyle. A
perfect fit for the Cali
Freeze concept.
Product Choice
Frozen Yogurt is a
healthy treat that is
the most popular of
all frozen desserts.
Sales are projected to
increase and there is
a lack of similar
products served in
the industry.
Competitive Response
As in any industry, there is always the threat of new entrants and copy cats. Even though competition is
minimal at this point, Cali Freeze has carefully considered a response to emerging businesses. Entering
the San Diego market early will allow Cali Freeze to establish a solid customer base and gain rapport
among other venues along the route as these relationships will foster sustainability. Additionally, the
convenience of the mobile truck is also a benefit to combat expanding, well-established franchises giving
Cali Freeze the unique opportunity to travel to the customers. Early participation in developing “pods”
will support future growth along with a clean, modern appeal. Additionally, Cali Freeze is committed to
utilize a competitive pricing model and modify the product line and flavors as needed. Altogether, Cali
Freeze will adjust to changes in the market and take necessary risks to succeed in this dynamic industry.
5.0 Marketing Plan
5.1
Pre- Grand Opening
Prior to the grand opening, Cali freeze will utilize a small scale promotional campaign to target the
specific market by passing out flyers, samples, and utilizing online promotion to increase awareness. In
the Street Vendor Industry, promotional costs are minimal and venues rely mostly on word-of-mouth
and participation in social media platforms. Thus, Cali Freeze will engage in an inbound marketing
strategy, producing interesting content to earn the attention of the viewers. Cali Freeze will be added to
San Diego’s universal food truck website, listing all registered mobile food facilities
(sandiegofoodtrucks.com). This website will also include links to all Cali Freeze social media. Cali Freeze
will also become a member of Roaming Hunger, a website that catalogues, tracks, and promotes
gourmet food trucks. This brand has become a staple in the industry with a cult like following and
represents the food truck movement.
During March, flyers will be handed out to potential customers along the proposed route (See Appendix
9.6 – Grand Opening Flyer) and a week prior to the grand opening, samples will be passed out along with
coupons to encourage patronage. Additionally, Cali Freeze will establish business relationships with
food vendors along the route. Due to the lack of dessert-style trucks, Cali Freeze can provide the perfect
after lunch or dinner treat to accompany the main course venues. These partnerships are vital in
creating a sound customer base.
5.2
Grand Opening
The grand opening will take place on April 6, 2013. Our employees will be passing out samples, flyers,
and coupons to inform customers of our brand and presence. This date coincides with The Western
Surfing Association’s (WSA) Surfing Competition, one of the oldest and most widely known surfing
associations on the west coast. The WSA is a California non-profit corporation dedicated to promoting
and preserving the sport of surfing through fun, family oriented surf competitions. This event will be
held at the Ocean Side Harbor and provides an ideal atmosphere for the Cali Freeze Truck to launch its
business.
5.3
Social Media
Given that participation in social media is crucial to success in this market, Facebook, Twitter, Tumblr,
and Instagram will be the prime platforms used to communicate and promote Cali Freeze. Twitter will
be used to tweet out locations or special offers we are having. Twitter will play a major role for our
business and will be constantly updated with news and services we are offering. Facebook will also be
linked to our Twitter account and show the same data we send out for our possible consumers. Tumblr
will host our blog where any user or non-user could submit a picture of their yogurt from our truck or
our truck and its image in general. Also, people will be able to submit what they think about our truck
and give us positive advice to help excel our business. People who post will be sent special offers or
coupons for their loyalty and participation.
In order to maximize the potential of all social media platforms, Cali Freeze will utilize Search Engine
Optimization (SEO) to guide the development or redevelopment of our website so that it will naturally
attract visitors by winning top ranking on the major search engines for selected keyword phrases. In
order to optimize our business, we asked ourselves 3 questions:
How are people searching for our products and/or services?
Which sites are winning for those searches, and why?
Which searches can we win?
More people have been using search more than ever before and it’s important to know what keywords
people are using in relation to the product and service we offer. Cali Freeze understands how keywords
and phrases work together so we can group and organize them to be matched for search engines. By
peppering these keywords throughout our website and our blogs we help ourselves to rise in search.
5.4
Promotional Tactics
Most of our promotions will be run through social media as explained above, although Cali Freeze plans
to post and hand out print ads and informationals around the locations as well. Promotional cards will
be distributed to encourage repeat patronage and include a “Buy 6, Get 1 Free” offer. (See Appendix 9.7
– Punch Card).
Promotional activities will be incorporated only at special events or community/charitable events when
appropriate to promote a fun, entertaining atmosphere. Activities could include:
Dance Off - Competition for a free frozen yogurt, playing fun “themed” music tracks
Karaoke – Singing fun to popular or memorable songs
Frozen Yogurt “Tsunami” Challenge – Consumers order the Frozen Yogurt Challenge.
The consumer must eat a ½ gallon’s worth of any yogurt he/she chooses and be put on
our websites hall of fame. The Challenge becomes free if you eat it all.
Catering
If customers are interested in catering services, they can call, contact us through our website, or obtain
an order form directly from the truck. (See Appendix 9.8 - Catering Form). The website will be monitored
daily, and customers will be contacted within 24 hours of receipt of booking form.
Community Outreach
As a rule, frozen yogurt in the machine at the end of the day has zero shelf life and must be discarded.
Instead of disposing of it at the commissary, Cali Freeze will disperse of remaining inventory at a local
food bank known as the San Diego Food Bank. Their location is at 9850 Distribution Ave, San Diego, CA
92121.
Special Event Tie-ins
Cali Freeze will attend a myriad of events, including East Village holiday events or block party, movie
premieres, art openings, the renowned farmers market, and events in the dynamic downtown district.
Scheduled evening events allow continual business after the truck has completed the daily route and
maximizes potential profits.
5.5
Location
Cali Freeze will include popular San Diego
truck destinations on the route, along with
a few others which provide a customer
base aligned with the target market. All
locations have been thoroughly researched
and allow for mobile food parking.
835 4th Ave. San Diego: A popular
stop for mobile food facilities
K Street and 14th street, San Diego:
Proposed Locations
Located near some stores and small
businesses; is also outside of downtown San Diego
Market Street and 8th Ave., San Diego: Around downtown, restaurants, parks and a baseball
stadium
1549 El Prado San Diego: Near the San Diego Museum of Art, gardens and theaters, including
many festivals
3136 Mission Blvd., San Diego: Coastal, with a small amusement park and city park. Popular spot
for families and tourists.
The first area is located at 835 4th Ave., the truck then will move to K Street and 14th Street which will
take a traveling time of 6 minutes or 0.9 miles. Then the truck will move to Market Street and 8 th Ave.,
which will take 3 minutes or 1.3 miles. Next, Cali Freeze will be at 1549 El Prado, an 8 minute drive,
roughly 4.2 miles. The last destination is 3136 Mission Blvd. which is roughly 15 minutes away, or 9.0
miles. Thus, the total miles traveled on the route are about 15 miles. On weekdays this route will stay
the same. Then on the weekends the location will target the most populated and fun places first or will
be shuffled by how quickly or slow the business is on that spot. The route is always subject to change,
based on promising, new locations and adjustments to maximize ticket sales.
5.6
Image
Brand Appeal: Cali Freeze displays a vintage, yet modern coastal vibe – perfect for the San Diego area.
The truck is clean and well-manicured adding to the gourmet appeal. The design showcases the same
fresh and healthy atmosphere that attracts consumers to the product and
makes it easily identifiable and recognized.
Logo: The logo symbolizes the modern flare of the business and extenuates the simple, classy nature of
the brand. The color palette includes all shades of blue and orange against a crisp, white background.
The image represents the frozen yogurt swirls, reminiscent of waves at the beach, filled in a refreshing
ocean blue. The tip of the image has an orange gradient, fading from deep orange to light tangerine,
signifying the sunset. The font is the traditional “California” font as seen on license plates and generic
California promotional items. Altogether, the color palette and logo design set the stage for establishing
the theme and “Cali” flare.
The Truck: The Cali Freeze truck has a 1958 Retro-Vintage style. It will be modified to display the Cali
Freeze logo on all sides and menu items will be neatly listed on the exterior detailing truck flavors, sizes,
toppings, specialties, and prices. (Shown in Figure 1). A side door
lifts up to create a canopy and open kitchen concept, where food
is prepped. All toppings are freshly displayed as items are made
to order. Exterior speakers are included to add music to the
modern ice cream truck experience and will be particularly useful
during special events and catering activities.
The Cali Freeze Truck
6.0 Operations
6.1
Basic Products & Maintenance
Prior to Departure:
To ensure that the day to day operations work smoothly and efficiently employees will arrive
approximately one hour before the designated time of truck departure at commissary to prep the truck.
Employee’s responsibilities will consist of making sure the frozen yogurt machine was properly cleaned
the night before along with a secondary touchup in the morning before business hours. In order to
insure a sanitary environment the employees will precut necessary fruit toppings before truck
departure. Also, a rundown of the truck including checking the gas, tires, equipment, and temperature
gages will be performed by the employees.
All frozen yogurt will be prepared daily, and restocked on an as needed basis. After preparation is
complete the truck will go to its designated location and will be ready to serve.
End of Route Procedures:
After business hours employees start the process of cleaning the work area. This includes:
A deep cleaning of frozen yogurt machine along with a systems performance evaluation of
our equipment
Washing of serving utensils
A wipe down of truck counters to eliminate bacteria
A vital check of inventory to see what products need to be replenished (toppings, customer
utensils, etc.)
Truck necessities will be thoroughly checked (gas, tires, etc.)
Donate remaining, unusable product to San Diego Food Bank
Park at commissary
6.2
Catering
For the company’s online catering orders the partners will use personal business smartphones to have
the availability to monitor emails, texts, phone calls and social media pertaining to catering orders
throughout the day. Customers can also go onto the Cali Freeze website and fill out a form (See
Appendix 9.8 - Catering Form) that will give the address and date of the function for which they request
us to cater, multiple ways to contact them, and which of our products they prefer us to serve. If
customers do not desire to go on the website or call a partner they can simply get a form from our truck
and return it to the person working the truck and they will be contacted for further communication and
questions. Orders will be followed up within 24 hours to arrange details and pricing.
6.3
Truck Operations
Rather than purchasing a new food truck that looks like the rest, Cali Freeze plans to buy a used food
truck with a modern “1950 retro vintage” look that will attract the selected market. The unit is priced at
$82,000. The truck comes equipped with a hand washing sink, three compartment sink, and stainless
steel counters as required by The Food and Housing Division (FHD). The plumbing is connected to fresh
water (11 gal) and waste water (17 gal) tanks, and includes gasoline powered generator. The generator
is conveniently connected to the truck’s gas line. The food truck meets the isle requirements of a 74 inch
isle height and a 30 inch width.
In order to serve frozen yogurt out of this food truck we will have to equip with a soft serve frozen
yogurt machine by replacing the existing shaved ice machine. Cali Freeze will use the services of
Armenco Cater Truck Mfg. Co., Inc. for these modifications. We will pay them a total of $25000. They
will also take care of getting the truck approved by The Food and Housing Division FHD of The
Environmental Health of San Diego. Three plans will be submitted by Armenco to the FHD and will make
any changes required until our Mobile Food Facility is approved and ready for operation.
During operation, no food will be stored, displayed, or served, from any place other than the mobile
food facility. All topping and condiments will be protected from contamination. Toppings and
condiments provided will be prepackaged or from approved (pump, pour, squeeze, or auger type)
dispensing devices. During transportation and storage of the food truck, food and food contact surfaces
will be protected from contamination. Food products remaining after each day's operation shall be
stored only in an approved food facility. Utensils and equipment will be handled and stored to be
protected from contamination. Single-service utensils shall be obtained from sanitary containers or
approved sanitary dispensers, stored in a clean, dry place until used, handled in a sanitary manner, and
used only once. Wiping cloths will be stored in a clean solution containing 100 parts per million (PPM) of
available chlorine as a hypochlorite. A testing strips kit will be provided to check the concentration of
the sanitizing solution. Only the mobile food facility operator shall dispense all unpackaged foods.
Thermometers will be provided for all refrigeration units. All potentially perishable foods will be
maintained at or below 41°F or at or above 135°F at all times.
7.0 Management
7.1
Organization
Cali Freeze will exist as a partnership between two people at the initial start of the company. The two
partner’s responsibilities will include all areas of business such as management, finances, human
resources, and marketing. The owners of the company will be onsite, working diligently as full time
employees. Initially, Cali Freeze will hire one assistant at $8/hour to work alongside the partners and
allow for reasonable work hours. As the company starts to show progression, the process of hiring new
employees and reducing the owner’s hours of labor will occur. The overall goal of the partners,
eventually, is to run the business from a management stand point as opposed to the daily labor of
physically running the food trucks. At this point, one partner will manage catering, while the other
manages truck operations.
7.2 Hours of Operations:
Through extensive industry research, Cali Freeze concluded that the majority of mobile businesses had
work hours that were consistently 11:00AM through 4:00 or 5:00PM thus, decided that since our
competition was operating during these hours should operate within the same hours. An additional
three hour window was added on Friday and Saturday in order to maximize our money making
capabilities to accommodate events scheduling of special events, catering jobs, and late night snacking
hours. We also extended our closing time to giving us more time to sell our product and make more
profit. People are more likely to engage in social activities on Friday and Saturday nights, so if the truck
is not already scheduled to participate in a “pod”, special event, or catering venue, it will be out to meet
the need for an after dinner treat or snack.
7.3
Wages:





7.4
One minimum wage employee will assist Monday – Thursday
Partners will profit share after all expenses are accounted for. Initial profits are expected to be
extremely minimal
The business loan includes three months of working capital the amount to all for necessary cash
flow in the beginning months
Before we decide on percentages, we must factor out expense:
1. Gas for truck
2. Ingredients (milk, fruit, toppings, flavors, etc.)
3. Upholding sanitation of truck (cleaning supplies)
4. Truck maintenance (any problems effecting our income)
5. Permits for location of sales (legal expenditures)
6. Miscellaneous Expenditures
After subtracting expenses from the revenue, and since there are only two employees, each
partner will be paid 10% of the remaining income leaving any remainder to tend to any need
that has not been met. This is an estimated percentage, so the actual remaining revenue will
determine the amount of profit sharing.
Scheduling
Schedule
Partner 1
Employee 1
Partner 2
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
Sunday
Since Monday through Thursday will be our least busy hours, a minimum wage employee would be the
most reasonable answer to assist the partners in operating the truck through the week. Both partners
switch on and off daily working with the employee. This will ensure that there is always a more
experienced counterpart working with the employee every day. It will work to our advantage to know
that an experienced person is on board, supervising, and ensuring smooth operations. Over the
weekend, only the two partners will be onboard the truck. This schedule will be more effective because
of the increased demand and working hours. Since the partners are personally tied to the company,
their time will be fully devoted to operating the truck and ensure operations run smoothly over the
weekend.
7.5
Certifications
Any employee at Cali Freeze is required a food handler’s certification course is for any food service
employee who needs to obtain a permit in order to work in a retail food establishment, or any individual
who desires training. Food safety training is essential to every restaurant and foodservice operation. It
promotes health and cleanliness, prevents sickness, and helps ensure the well-being of every customer
and employee. It is required to obtain a California Food Handlers License in order to be able to work on
our truck and serve our product to the public.
7.6
Limited Liability Corporation (LLC)
Cali Freeze will operate as a Limited Liability Corporation, or LLC, because of the advantages it possesses
over other types of corporations. Corporations must hold regular meetings of the board of directors and
shareholders, keep written corporate minutes, and file annual reports with the state. On the other hand,
the members and managers of an LLC need not hold regular meetings, which reduce complications and
paperwork. Like a corporation, a limited liability company or "LLC", is a separate and distinct legal
entity. This means that an LLC can obtain a tax identification number, open a bank account and do
business, all under its own name. The primary advantage of an LLC is that its owners, known as
members, have "limited liability", meaning that, under most circumstances, they are not personally
liable for the debts and liabilities of the LLC. For example, if an LLC is forced into bankruptcy, then,
absent special circumstances, the members will not be required to pay the LLC's debts with their own
money. If the assets of the LLC are not enough to cover the debts and liabilities, the creditors generally
cannot look to the members, managers or officers for recovery. This will be the most beneficial way to
form the corporation given it is a small business with few employees.
8.0 Financials
8.1
Start-Up Costs
The initial capital necessary to launch a food truck is comparably lower than a traditional retail,
brick and mortar business. The biggest expenditure is the cost of the mobile facility, which will
be financed as part of the business loan. Other major expenses include the yogurt machines,
kitchen equipment, and a monthly commissary expense. The total amount for all start-up costs
is $43,278.73. See the table below detailed by item, price, quantity and vendor.
Food Truck Equipment
Quantity
Price (Each)
Total
Vender
1958 Retro-Vintage Food Truck
1
1,120.84
1,120.84
Soft Serve Ice Cream and Frozen Yogurt Machine High Volume, (7) 4 oz. Servings per Minute
36" x 48" Oak Frame Black Marker Board
3
10,675.60
32,026.80
1
45.99
45.99
Casio Black Cash Register w/ Thermal Printer
1
203.88
203.88
True T-49 Refrigerator Reach-In 2 Door
1
2,859.20
2,859.20
Total =
36,256.71
www.thefoodtruckmark
et.com
www.centralrestaurant.
com
www.webstaurantstore.
com
www.walmart.com
www.instawares.com
Quantity
Price (Each)
Total
Jorgen's Serious Shine Kit
1
149.99
149.99
Turtle Wax T-79 Zip Liquid Car Wash 64 oz
1
6.51
6.51
Total=
156.50
Quantity
Price (Each)
Total
Vender
San Jamar T1730TBK Hand Washing Station
1
43.81
43.81
www.therdstore.com
Microfiber Dish Towel Set of 4 - White
2
13.89
27.78
www.target.com
Bounty Paper Towel Roll 15 ct
4
24.99
99.96
www.costco.com
Cal 1L 0.5 oz., Clear Topping Dispenser Spoon
6
15.64
93.84
www.ebay.com
Shenzhen Knives 3-piece (6", 5" & 3")
1
44.99
44.99
www.amazon.com
Fundamental Designs FIFO BOTTLE 12 oz
3
1.70
5.10
Rubbermaid WaveBrake Bucket Wringer
1
39.98
39.98
www.samsclub.com
Ultra Palmolive Dishwashing Liquid 20 oz 12ct
1
38.28
38.28
www.samsclub.com
Ansell Vynyl Touch Gloves 100ct
1
8.92
8.92
www.walmart.com
Clorox S.O.S. Heavy Duty Sponge 24ct
2
27.48
54.96
www.walmart.com
SOLO Cup Heavyweight Plastic Spoons 1000 ct
1
47.94
47.94
www.walmart.com
2 oz Genpak Paper Portion Cups 5000 ct
1
92.99
92.99
4 oz Colored Frozen Yogurt Cups 1000 ct
1
68.95
68.95
8 oz Colored Frozen Yogurt Cups 1000 ct
1
78.95
78.95
www.foodservicewareh
ouse.com
www.myyogurtsupplies.
com
www.myyogurtsupplies.
com
Food Truck Maintenance Supplies
Kitchen Supplies
Vender
www.costco.com
www.amazon.com
www.wasserstrom.com
12 oz Colored Frozen Yogurt Cups 1000 ct
1
83.95
83.95
Napkin Dispenser
2
38.89
77.78
www.myyogurtsupplies.
com
www.therdstore.com
Dixie - Paper Napkin - 1,200 Napkins
1
11.88
11.88
www.samsclub.com
Dixie - Plastic Soup Spoon - 100 Spoons
1
3.88
3.88
www.samsclub.com
Trash Cans
3
20.00
60.00
www.target.com
Trash Bags
1
www.samsclub.com
18.62
18.62
Total=
1,002.56
Frozen Yogurt Ingredients
(17 Qt. Container)
Whole Milk 1 Gallon
24
3.09
74.16
www.target.com
Pure Sugar, 5 Lb
7
2.88
20.16
www.smartandfinal.com
Chobani Non-Fat Greek Yogurt 2lb
7
5.49
38.43
www.shoprite.com
Karo Light Corn Syrup 4lb
3
10.85
32.55
www2.costco.com
Total =
165.30
Toppings
Wet Toppings
1
250.00
Dry Toppings
1
400.00
Other Expenses
Quantity
Total =
650.00
Price
Total
Vender
www.amazon.com
Moeller A/D 12 Gallon P. Fuel Tank
1
94.13
94.13
Generac 17500 Running-Watts P. Generator
1
2,699.00
2,699.00
12
3.49
41.88
3.79
-
200.00
200.00
Gasoline (Generator)
Deisil Oil (Food Truck)
Mobile Food Vending Unit Permit
1
www.lowes.com
www.sandiegogasprices.
com
www.sandiegogasprices.
com
www.nyc.gov
Moody's Commissary
1
800.00
800.00
General Liability Insurance
1
103.00
103.00
Truck Insurance
1
2,500.00/12
208.33
License
1
314.00
314.00
www.mobilecuisine.com
www.license123.com
Business Insurance
1
2,468.00/12
205.66
-
Workers Comp
3
1,508.00/12
125.66
-
32
8.00
256.00
www.g2graphics.com
Total =
5,047.66
Grand Total=
43,278.73
Marketing (T-shirts)
www.moodysfoodtruck.
com
www.nyc.gov
8.2
Monthly Operating Expenses
The monthly expenses consist of everything that Cali Freeze needs to remain in business on a month-tomonth basis, including both fixed and variable costs. The business loan, which is the largest expense,
covers all of Cali Freeze’s start-up costs, along with three months projected operating costs which were
accounted for and added into the total loan amount. The complete list of anticipated monthly expenses
can be seen below:
Expenses:
Monthly Expenses
Inventory:
Auto Loan
1,120.84 Ingredients
1739
Auto Insurance
208.00 Paper Goods/Packaging
71
Business Loan
1381.00 Toppings
100
Gas
400.00
Commissary Exp.
800.00
Parking Cost
250.00
Internet Hosting Fee
10.00
Promotion/ Samples
100.00
Misc./Repairs
200.00
Phone
50.00
Salary
1000.00
Total Expenses: 6529.84
8.3
Funding
Using the amounts listed above, Cali Freeze will apply for a business loan from Bank of America in the
amount of $75,000 that will be paid back in 5 years with an interest rate of 4.0%. The loan
accommodates for all startup costs and three months operating expenses. The monthly payment will be
1381.00 until paid in full. The total interest paid in addition to capital is $7,874 (Appendix 9.9 Amortization Table). This will allow Cali Freeze to make the necessary purchases that will keep the
company liquid until sales increase and the company acquires a positive cash flow.
8.4
Sales Forecast
A sales forecast was conducted to project monthly sales. Cali Freeze observed trends among similar
stores, including the Yogurt Station, Golden Spoon, Pinkberry, and Sweet Creamery. These businesses
reported a range of ticket sales between 200-600+ per day. All companies reported that their top selling
product was a medium sized yogurt, closely followed by small. Given that Cali Freeze is a new start up,
sales were projected as 10% of the average total sales compared to the stores researched. Thus, Cali
Freeze modestly projected sales at 40 tickets per day. The “medium” is projected to sell the most at 35%
of sales, and the “small” a close second at 30% of sales. The projections increase 10% after the first
three months of business. Seasonality was taken into account for the colder months of November
through January, and sales are expected to decrease roughly 10% during this time. In general, sales will
increase at the rates listed in the table below. (Appendix 9.10 -Sales Forecast).
8.5
Sales Forecast – Projected Product Sales
April - June
Baseline Sales
July - October
Increase 10% - from Start Up
November - January Decrease 10% - return to baseline amounts
February - March
Increase 15% - more than baseline
Cost of Goods Sold
Cali Freeze priced each item after completing a thorough cost breakdown for each product to be
manufactured and packaged for the consumer. In addition, Cali Freeze accounted for similar products at
other businesses to consider what potential customers will pay. Thus, a competitive and simple pricing
strategy was established to attract customers. A breakdown of the costs is shown below.
COGS – Packaging Costs
Price per cup:
Mini
Small
Medium
Large
92.99/5000
68.95/1000
78.95/1000
83.95/1000
.01
.07
.08
.08
11.88/1200
.01
Napkin:
Utensil:
Ingredients: Whole
Milk, Sugar, Yogurt,
Corn Syrup
47.94/1000
.05
COGS - Yogurt
Total Cost: = $65.62
$65.62(Cost)/272(oz.)=.24125/oz.
To find the price of the yogurt by sizes, the packaging and product costs were calculated by ounce to
account for different sizes. By totaling up the price per cup, napkin, utensil, and yogurt we found the
total it will cost us to make each yogurt by size.
Size
Mini(202)
Cup
.01
Napkin
.01
Utensil
.05
Yogurt
.49
Total
.56
Small(4)
Medium(8)
Large(12)
.07
.08
.08
.01
.01
.01
.05
.05
.05
.965
1.93
2.89
1.095
2.07
3.03
8.5 Profit Margin
The profit margins range from 65% - 257%. The margin decreases as the size increases due to the cost of
the yogurt, the main cost of the product which totals about 25 cents per ounce. This data confirms the
pricing strategy will be successful and the likelihood of potential profits.
Cogs Total Selling Price Total Percent Profit
Mini (2 oz.)
.56
2.00
257%
Small (4 oz.)
1.10
3.00
172%
Medium (8 oz.) 2.07
4.00
93%
Large (12 oz.)
3.03
5.00
65%
8.6 Catering
The proposed catering service will also be a source of revenue for Cali Freeze. In general, the catering
service will be offered at a rate of $1500. This will accommodate between 500-550 servings. The cost of
goods sold for this will be $550 (1.1x500=550), leaving an estimated profit of $950. Customized catering
services will be available to accommodate any size party on an as needed basis. For forecasting
purposes, Cali Freeze used an average size event of 500 people. In the first 3 months we projected one
event per month and gradually increase to include four events per month. This provides an average
monthly profit of $2000.
8.7 Cash Flow
Cali Freeze has created adjusted cash flows that allow the company to keep as much cash on hand as
possible during the first few months. Payments on major expenses are held till the end of the month
including the business loan. In addition, employees are paid bi-weekly, allowing the business to generate
more money before making payments. Additionally, the inventory is ordered at the end of each month
as needed, which will help the business remain liquid. (Appendix 9.12 – Cash Flows)
8.8 Break Even Analysis
Since Cali Freeze will take out a loan for the startup costs, there is no actual initial cash investment.
Instead that initial investment is spread out over time through interest payments on the loan. Thus, we
conducted a break even quantity analysis on startup costs as well as a monthly positive cash flow
analysis.
In order to do a break even analysis, we took our startup costs of 43,278.73 and divided it by the profit
per product. Since there are four types, we calculated an average profit of the 4 sizes to be $1.81. See
calculations below.
Profit per cup (average) = average (Sales Price - COGS) = (3.00 - 1.095 + 4.00 - 2.07 + 5.00 - 3.03 + 2.00 0.56) / 4 = $1.81125
Thus, the break even quantity is $43,278.73 / $1.81125 = 23894.4 = 23,895 cups (roughly 43K)
We will reach that quantity in February, which aligns with our spreadsheet as well. The point when we
make about $43K is February. (Appendix 9.10 – Sales Forecast)
Looking at the Income Statement (Appendix 9.11 – Income Statement) we did a positive cash flow
analysis to confirm when Cali Freeze will operate in the “black.” The chart below verifies that February is
when the curve crosses the x axis and becomes positive.
9.0 Appendix
9.1 Flavor Cycle
Month:
April
Monday
Traditional
Traditional
Traditional
Specialty
Specialty
Chocolate
Vanilla
Tart
Raspberry
Tuesday
Chocolate
Vanilla
Tart
Wednesday
Chocolate
Vanilla
Tart
Cookie
Dough
Cookies and
Cream
Cake Batter
Thursday
Chocolate
Vanilla
Tart
Friday
Chocolate
Vanilla
Tart
Saturday
Chocolate
Vanilla
Tart
Sunday
Chocolate
Vanilla
Tart
Month: May Traditional
Traditional
Traditional
Specialty
Specialty
Monday
Chocolate
Vanilla
Tart
Tuesday
Chocolate
Vanilla
Tart
Wednesday
Chocolate
Vanilla
Tart
Thursday
Chocolate
Vanilla
Tart
Friday
Chocolate
Vanilla
Tart
Saturday
Chocolate
Vanilla
Tart
Sunday
Chocolate
Vanilla
Tart
Signature
San Diego
Sunrise
Pomegranate San Diego
Sunrise
Mango
San Diego
Sunrise
Pina Colada
Cookie
San Diego
Dough
Sunrise
Mango
Cookies&
San Diego
Cream
Sunrise
Raspberry
Pina Colada
San Diego
Sunrise
Pomegranate Cake batter
San Diego
Sunrise
Signature
(Monthly)
Cookie
Raspberry
Bay SideDough
Berries
Cookies and
Pomegranate Bay SideCream
Berries
Cake Batter
Mango
Bay SideBerries
Pina Colada
Cookie
Bay SideDough
Berries
Mango
Cookies&
Bay- Side
Cream
Berries
Raspberry
Pina Colada
Bay SideBerries
Pomegranate Cake batter
Bay- Side
Berries
Month:
June
Monday
Traditional
Traditional
Traditional
Specialty
Specialty
Chocolate
Vanilla
Tart
Cookie
Dough
Raspberry
Tuesday
Chocolate
Vanilla
Tart
Cookies and
Cream
Wednesday
Chocolate
Vanilla
Tart
Cake Batter
Thursday
Chocolate
Vanilla
Tart
Pina Colada
Friday
Chocolate
Vanilla
Tart
Mango
Saturday
Chocolate
Vanilla
Tart
Raspberry
Signature
Balboa
Strawberry
Banana
Pomegranate Balboa
Strawberry
Banana
Mango
Balboa
Strawberry
Banana
Cookie
Balboa
Dough
Strawberry
Banana
Cookies&
Balboa
Cream
Strawberry
Banana
Pina Colada
Balboa
Strawberry
Banana
Sunday
Chocolate
Vanilla
Tart
Pomegranate Cake batter
Balboa
Strawberry
Banana
9.2 Statistic Brain Survey
9.3 Existing San Diego Food Trucks
1. Eat at Recess-Burgers
2. Mangia Mangia Mobile-Italian sandwiches
3. SoulCal Food Truck-Burgers
4. Not So Fast!-Burgers
5. Greengo Grilled Cheese Gastro Truck-Grilled Cheese
6. Green Truck-vegetarian
7. Devilicious-American
8. Crepes Bonaparte-French
9. Cheesy Amigos-Grilled Cheese
10. Quality Coast Gourmet Street Kitchen-Burgers/tacos
11. Calbi BBQ Fusion Tacos-BBQ tacos
12. Puesto Food Truck-Mexican
13. Just The Tip Food Truck-Sandwiches
14. Princesita Taco Truck – Sells Mexican cuisine, tacos, burritos, etc.
15. Under The Crust – Sells small to large pot pies
16. Pearson’s Lousiana Cajun – Serves Cajun and Creole
17. Seafood Mariscos Los Enchilados – Mexican food
18. Porketeers BBQ – Barbeque Sandwiches
19. Black Jack Int – Barbeque Sandwiches
20. Marisco’s El Jete - Shrimp Tacos
21. Ocean Beach Seafood Food Truck - Seafood
22. Super Q Food Truck – (Not Specified)
23. Tacos Varios El Cookie – Mexican Tacos
24. Artison Woodfired Cuisine – (Not Specified)
25. Sushi Ninja – Sushi/Seafood
26. Bitchin Burgers – Burgers/BBQ
9.4 San Diego Demographics
Number
Percent
1223400
100.00%
Male
616884
50.42%
Female
606516
49.58%
Under 5 years
82523
6.75%
5 to 9 years
87347
7.14%
10 to 14 years
79520
6.5%
15 to 19 years
85664
7%
20 to 24 years
110614
9.04%
25 to 34 years
217032
17.74%
35 to 44 years
198474
16.22%
45 to 54 years
148127
12.11%
55 to 59 years
48016
3.92%
60 to 64 years
38075
3.11%
65 to 74 years
65922
5.39%
75 to 84 years
47639
3.89%
85 years and over
14447
1.18%
San Diego Population:
Sex and Age
Median age (years)
18 years and over
32.5
929492
75.98%
Male
465576
38.06%
Female
463916
37.92%
21 years and over
865699
70.76%
62 years and over
149880
12.25%
65 years and over
128008
10.46%
Male
54147
4.43%
Female
73861
6.04%
One race
1164319
95.17%
White
736207
60.18%
96216
7.86%
7543
0.62%
166968
13.65%
6909
0.56%
Chinese
22762
1.86%
Filipino
75197
6.15%
Japanese
9485
0.78%
Korean
7139
0.58%
27473
2.25%
Race
Black or African American
American Indian and Alaska Native
Asian
Asian indian
Vietnamese
Other Asian
18003
1.47%
5853
0.48%
Native Hawaiian
1016
0.08%
Guamanian or Chamorro
2237
0.18%
Samoan
1701
0.14%
899
0.07%
Some other race
151532
12.39%
Two or more races
59081
4.83%
1223400
100.00%
310752
25.4%
259219
21.19%
Puerto Rican
5938
0.49%
Cuban
1922
0.16%
43673
3.57%
912648
74.6%
603892
49.36%
Total Population
1223400
100.00%
In households
1177582
96.25%
Householder
450691
36.84%
Native Hawaiian and Other Pacific Islander
Other Pacific Islander
Hispanic or Latino and race
Total Population
Hispanic or Latino(of any race)
Mexican
Other Hispanic or Latino
Not Hispanic or Latino
White alone
Relationship
Spouse
201213
16.45%
Child
336909
27.54%
257061
21.01%
86890
7.1%
29063
2.38%
101879
8.33%
27959
2.29%
45818
3.75%
6637
0.54%
39181
3.2%
Total Households
450691
100.0 %
Family households (families)
271398
60.22%
136085
30.19%
201213
44.65%
98074
21.76%
51248
11.37%
29473
6.54%
179293
39.78%
126210
28%
33406
7.41%
Own child under 18 years
Other relatives
Under 18 years
Nonrelatives
Unmarried partner
In group quarters
Institutionalized population
Non-Institutionalized population
Households by Type
With own children under 18 years
Married-couple family
With own children under 18 years
Female householder, no husband present
With own children under 18 years
Non Family households
Householder living alone
Householder 65 years and over
Households with individuals under 18 years
Households with individuals 65 years and over
Average Household size
Average family size
150318
33.35%
92545
20.53%
2.61
3.3
Housing Occupancy
Total housing units
469689
100.00%
Occupied housing units
450691
95.96%
18998
4.04%
5093
1.08%
Vacant housing units
For seasonal, recreational, or occasional use
Homeowner vacancy rate (percent)
0.8
Rental vacancy rate (percent)
3.2
Housing Tenure
Occupied housing units
450691
100.00%
Owner-occupied housing units.
223280
49.54%
Renter-occupied housing units.
227411
50.46%
Average household size of owner-occupied units
2.71
Average household size of renter-occupied units
2.52
9.5 Competition Matrix
Factor:
Cali Freeze
Frozen Yogurt x
New Equipment x
Cleaniness
x
Fresh Ingredients x
San Diego Location x
New Truck
x
Website
x
Social Media x
Cool Cow Chunk-N-Chip Cool Haus
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Breezy Freeze Chunky Chill Sweet Treats Sweets in Motion Rockie's Frozen Yogurt
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Yogurtland
x
x
x
x
x
x
x
x
x
x
x
x
9.6 Grand Opening Flyer
9.7 Punch Card & Business Card
9.8 Catering – Order
Date of event
Time of Service
Address of
event
Unite or Suite #
Cross streets
City
State*
Type of event
Contact Name*
Contact Phone*
Contact Email*
Verify Email Address*
Yogurt
(Quantity)
(Size)
(Flavor)
Toppings (Pick 3 Fruit + 3 Dry)
Notes, Inquiries or Special Requests:
.
Form
Zip*
9.9 Amortization Table
Month
Payment
/ Year
Principal
Paid
Interest Total
Paid
Interest
Balance
April
2013
$1,381.24 $1,131.24 $250.00 $250.00
$73,868.76
May
2013
$1,381.24 $1,135.01 $246.23 $496.23
$72,733.75
June
2013
$1,381.24 $1,138.79 $242.45 $738.68
$71,594.96
July
2013
$1,381.24 $1,142.59 $238.65 $977.32
$70,452.37
Aug.
2013
$1,381.24 $1,146.40 $234.84 $1,212.17 $69,305.97
Sept.
2013
$1,381.24 $1,150.22 $231.02 $1,443.19 $68,155.75
Oct.
2013
$1,381.24 $1,154.05 $227.19 $1,670.37 $67,001.70
Nov.
2013
$1,381.24 $1,157.90 $223.34 $1,893.71 $65,843.80
Dec.
2013
$1,381.24 $1,161.76 $219.48 $2,113.19 $64,682.04
Jan.
2014
$1,381.24 $1,165.63 $215.61 $2,328.80 $63,516.41
Feb.
2014
$1,381.24 $1,169.52 $211.72 $2,540.52 $62,346.89
Mar.
2014
$1,381.24 $1,173.42 $207.82 $2,748.34 $61,173.47
April
2014
$1,381.24 $1,177.33 $203.91 $2,952.25 $59,996.14
May
2014
$1,381.24 $1,181.25 $199.99 $3,152.24 $58,814.89
June
2014
$1,381.24 $1,185.19 $196.05 $3,348.29 $57,629.70
July
2014
$1,381.24 $1,189.14 $192.10 $3,540.39 $56,440.56
Aug.
2014
$1,381.24 $1,193.10 $188.14 $3,728.52 $55,247.46
Sept.
2014
$1,381.24 $1,197.08 $184.16 $3,912.68 $54,050.38
Oct.
2014
$1,381.24 $1,201.07 $180.17 $4,092.85 $52,849.31
Nov.
2014
$1,381.24 $1,205.07 $176.16 $4,269.01 $51,644.23
Dec.
2014
$1,381.24 $1,209.09 $172.15 $4,441.16 $50,435.14
Jan.
2015
$1,381.24 $1,213.12 $168.12 $4,609.28 $49,222.02
Feb.
2015
$1,381.24 $1,217.17 $164.07 $4,773.35 $48,004.85
Mar.
2015
$1,381.24 $1,221.22 $160.02 $4,933.37 $46,783.63
April
2015
$1,381.24 $1,225.29 $155.95 $5,089.31 $45,558.34
May
2015
$1,381.24 $1,229.38 $151.86 $5,241.18 $44,328.96
June
$1,381.24 $1,233.48 $147.76 $5,388.94 $43,095.48
2015
July
2015
$1,381.24 $1,237.59 $143.65 $5,532.59 $41,857.89
Aug.
2015
$1,381.24 $1,241.71 $139.53 $5,672.12 $40,616.18
Sept.
2015
$1,381.24 $1,245.85 $135.39 $5,807.50 $39,370.33
Oct.
2015
$1,381.24 $1,250.00 $131.23 $5,938.74 $38,120.32
Nov.
2015
$1,381.24 $1,254.17 $127.07 $6,065.81 $36,866.15
Dec.
2015
$1,381.24 $1,258.35 $122.89 $6,188.69 $35,607.80
Jan.
2016
$1,381.24 $1,262.55 $118.69 $6,307.39 $34,345.25
Feb.
2016
$1,381.24 $1,266.75 $114.48 $6,421.87 $33,078.50
Mar.
2016
$1,381.24 $1,270.98 $110.26 $6,532.13 $31,807.52
April
2016
$1,381.24 $1,275.21 $106.03 $6,638.16 $30,532.31
May
2016
$1,381.24 $1,279.46 $101.77 $6,739.93 $29,252.84
June
2016
$1,381.24 $1,283.73 $97.51
$6,837.44 $27,969.11
July
2016
$1,381.24 $1,288.01 $93.23
$6,930.67 $26,681.10
Aug.
2016
$1,381.24 $1,292.30 $88.94
$7,019.61 $25,388.80
Sept.
2016
$1,381.24 $1,296.61 $84.63
$7,104.24 $24,092.19
Oct.
2016
$1,381.24 $1,300.93 $80.31
$7,184.54 $22,791.26
Nov.
2016
$1,381.24 $1,305.27 $75.97
$7,260.52 $21,485.99
Dec.
2016
$1,381.24 $1,309.62 $71.62
$7,332.14 $20,176.37
Jan.
2017
$1,381.24 $1,313.98 $67.25
$7,399.39 $18,862.39
Feb.
2017
$1,381.24 $1,318.36 $62.87
$7,462.26 $17,544.02
Mar.
2017
$1,381.24 $1,322.76 $58.48
$7,520.74 $16,221.26
April
2017
$1,381.24 $1,327.17 $54.07
$7,574.82 $14,894.10
May
2017
$1,381.24 $1,331.59 $49.65
$7,624.46 $13,562.50
June
2017
$1,381.24 $1,336.03 $45.21
$7,669.67 $12,226.47
July
2017
$1,381.24 $1,340.48 $40.75
$7,710.43 $10,885.99
Aug.
2017
$1,381.24 $1,344.95 $36.29
$7,746.71 $9,541.04
Sept.
$1,381.24 $1,349.44 $31.80
$7,778.52 $8,191.60
2017
Oct.
2017
$1,381.24 $1,353.93 $27.31
$7,805.82 $6,837.67
Nov.
2017
$1,381.24 $1,358.45 $22.79
$7,828.61 $5,479.22
Dec.
2017
$1,381.24 $1,362.98 $18.26
$7,846.88 $4,116.25
Jan.
2018
$1,381.24 $1,367.52 $13.72
$7,860.60 $2,748.73
Feb.
2018
$1,381.24 $1,372.08 $9.16
$7,869.76 $1,376.65
Mar.
2018
$1,381.24 $1,376.65 $4.59
$7,874.35 $0.00
9.10 Sales Forecast
12-month Sales Forecast
Small
Sales price per unit
Product 1 TOTAL
April
360
3.00
1,080
May
360
3.00
1,080
June
360
3.00
1,080
July
396
3.00
1,188
Medium
Sales price per unit
Product 2 TOTAL
420
4.00
1,680
420
4.00
1,680
420
4.00
1,680
462
4.00
1,848
462
4.00
1,848
462
4.00
1,848
462
4.00
1,848
420
4.00
1,680
420
4.00
1,680
420
4.00
1,680
483
4.00
1,932
483
4.00
1,932
Large
Sales price per unit
Product 3 TOTAL
180
5.00
900
180
5.00
900
180
5.00
900
198
5.00
990
198
5.00
990
198
5.00
990
198
5.00
990
180
5.00
900
180
5.00
900
180
5.00
900
207
5.00
1,035
207
5.00
1,035
Mini
Sales price per unit
Product 4 TOTAL
240
2.00
480
240
2.00
480
240
2.00
480
264
2.00
528
264
2.00
528
264
2.00
528
264
2.00
528
240
2.00
480
240
2.00
480
240
2.00
480
276
2.00
552
276
2.00
552
Catering
1.10 x 500 = 550
Product 5 Total
1,500
550
950
1,500
550
950
1,500
550
950
3,000
1,100
1,900
3,000
1,100
1,900
3,000
1,100
1,900
3,000
1,100
1,900
4,500
1,650
2,850
4,500
1,650
2,850
4,500
1,650
2,850
6,000
2,200
3,800
6,000
2,200
3,800
42,000
Monthly totals:
All Products
4,140
4,140
4,140
4,554
4,554
4,554
4,554
4,140
4,140
4,140
4,761
4,761
52,578
Sales Plus Catering
Cost of goods sold
Net Operating Profit
NOP Plus catering
5,090
1,910 $
2,230 $
3,180 $
5,090
1,910 $
2,230 $
3,180 $
5,090
1,910 $
2,230 $
3,180 $
6,454
2,101 $
2,453 $
4,353 $
6,454
2,101 $
2,453 $
4,353 $
6,454
2,101 $
2,453 $
4,353 $
6,454
2,101 $
2,453 $
4,353 $
6,990
1,910 $
2,230 $
5,080 $
6,990
1,910 $
2,230 $
5,080 $
6,990
1,910 $
2,230 $
5,080 $
8,561
2,196 $
2,565 $
6,365 $
8,561
2,196 $
2,565
6,365
$
$
$
August September
396
396
3.00
3.00
1,188
1,188
October November December January February
396
360
360
360
414
3.00
3.00
3.00
3.00
3.00
1,188
1,080
1,080
1,080
1,242
March
Annual Totals
414
4572
3.00
1,242
13,716
5334
21,336
2286
11,430
3048
6,096
26,600
24,259
28,319.04
54,919.04
9.11 Income Statement
Month 1
Total Monthly Sales
$5,090
Month 2
$5,090
Month 3
$5,090
Month 4 Month 5 Month 6 Month 7 Month 8 Month 9
$6,454
$6,454
$6,454
$6,454
$5,050
$5,050
Month 10 Month 11 Month 12
$5,050
$8,561
$8,561
Year 1
$73,358
Cost of Goods Sold:
Packaging
Ingredients
Toppings
$71
$71
$71
$78
$78
$78
$78
$71
$71
$71
$82
$82
$75
$1,739
$1,739
$1,739
$1,913
$1,913
$1,913
$1,913
$1,739
$1,739
$1,739
$2,000
$2,000
$1,840.48
$100
$100
$100
$110
$110
$110
$110
$100
$100
$100
$115
$115
$105.83
$1,910
$1,910
$1,910
$2,101
$2,101
$2,101
$2,101
$1,910
$1,910
$1,910
$2,197
$2,197
$24,258
Gross Profit
$3,180
$3,180
$3,180
$4,353
$4,353
$4,353
$4,353
$3,140
$3,140
$3,140
$6,365
$6,364
$49,101
Gross Margin
62.5%
62.5%
62.5%
67.4%
67.4%
67.4%
67.4%
62.2%
62.2%
62.2%
74.3%
74.3%
66.9%
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
$1,100
$1,100
$1,100
$1,100
$1,100
$1,100
$1,100
$1,100
$1,100
$1,100
$1,100
$1,100
Business Loan
$1,381
$1,381
$1,381
$1,381
$1,381
$1,381
$1,381
$1,381
$1,381
$1,381
$1,381
$1,381
Auto Loan
$1,121
$1,121
$1,121
$1,121
$1,121
$1,121
$1,121
$1,121
$1,121
$1,121
$1,121
$1,121
Commisary
$800
$800
$800
$800
$800
$800
$800
$800
$800
$800
$800
$800
Repairs/maintenance
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$50
$50
$50
$50
$50
$50
$50
$50
$50
$50
$50
$50
Gasoline
$400
$400
$400
$400
$400
$400
$400
$400
$400
$400
$400
$400
Insurance
$208
$208
$208
$208
$208
$208
$208
$208
$208
$208
$208
$208
Parking Costs
$250
$250
$250
$250
$250
$250
$250
$250
$250
$250
$250
$250
Total General & Administrative Costs
$4,410
$4,410
$4,410
$4,410
$4,410
$4,410
$4,410
$4,410
$4,410
$4,410
$4,410
$4,410
$52,918
Total Expenses
$5,510
$5,510
$5,510
$5,510
$5,510
$5,510
$5,510
$5,510
$5,510
$5,510
$5,510
$5,510
$66,118
-$2,330 -$1,157 -$1,157 -$1,157 -$1,157 -$2,370 -$2,370
-$2,370
$855
$854
-$17,018
-46.9%
10.0%
10.0%
-23.2%
Total Cost of Goods Sold
Sales & Marketing Costs:
Employee salaries/benefits
Promotion
Other
Total Sales & Marketing Costs
$13,200
General & Administrative Costs:
Telephone
Operating Profit / (Loss)
Operating Margin
-$2,330 -$2,330
-45.8%
-45.8%
-45.8%
-17.9%
-17.9%
-17.9%
-17.9%
-46.9%
-46.9%
9.12 Cash Flows
Starting Cash Balance
recorded on the 15th and 13th of the month
Payables
Fixed Costs
Car Loan
Loan
Commisary
Parking
Insurance
Gasoline
Telephone
Promotions
Maintenance/ Repair
Semi-Variable Costs
Employee Payroll
Semi- Variable Food Items
Supplies / Utensils
Total Month/ Day Cash Flow = S U M ( Month X, Day Y Cash Flow)
Cumulative Cash Flow
=Starting Cash Balance + Monthly Cash Flows
Semi- monthly revenues
Month 0 Month 1 Month 1 Month 1 Month 2 Month 2 Month 2 Month 3 Month 3 Month 3
Day 1
Day 15 Day 30 Day 1
Day 15 Day 30 Day 1
Day 15 Day 30
75000
70329
70329
70011
68049
68049
67731
65769
65769
65451
2545
2545
2545
2545
2545
2545
-1121
-1121
-1381
-1121
-1381
-800
-800
-250
-208
-200
-50
-500
-2500
-500
-4671
70329
-208
-200
-200
-200
-500
-955
-500
-955
-2863
70011
-4507
68049
-800
-250
-100
0
70329
-1121
-1381
-250
-208
-200
-200
-100
0
68049
-200
-500
-955
-500
-955
-2863
67731
-4507
65769
-200
-100
0
65769
-200
-500
-955
-500
-955
-2863
65451
-4507
63489
9.13 Resources
http://www.smallbizlabs.com/2012/07/the-rise-of-gourmet-food-trucks.html
http://www.inc.com/guides/2010/05/opening-a-successful-food-truck.html
http://www.bizjournals.com/sanjose/news/2012/12/06/dont-call-it-a-fad-food-trucksstill.html?page=all
Surfwsa.org –WSA
www.dummies.com/how-to/content/provide-catering-servies-from-your-food-truck.html
www.info-how.com/ima/article112
Offthegridsf.com/catering-faq
Mobile-cruisine.com/business/developing-a-food-truck-catering-proposal-and-quote/
www.sandiego.org/events.aspx
Quickfacts.census.gov/qfd/states/o6/06073.html
http://www.pbs.org/wnet/need-to-know/five-things/starting-your-own-food-truck/4268/
http://www.lemonberryfrozenyogurt.com/nutrition
http://www.livestrong.com/article/288571-the-health-benefits-of-frozen-yogurt/#ixzz2AzuB0qOG
http://articles.businessinsider.com/2011-08-24/strategy/30037575_1_food-trucks-ice-cream-truck-kogikorean-bbq
http://www,anythingresearch.com/industry/Mobile-Food-Services-Street-Vendors.htm