el quesarito loco authentic mexican food truck strategy and implementation at el quesarito loco, we...

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!