NaturesTaqueriaBusinessPlan

NaturesTaqueria
AlumniInsidersViewBusinessPlanCompetition&Expo2011
AshleyCabarcas

NaturesTaqueriaBusinessPlan

TableofContents:
1. ExecutiveSummary
A. Mission
B. Objective
C. KeystoSuccess
2. CompanySummary
A. CompanyOwnership
B. StartupSummary
C. CompanyLocationsandFacilities
3. MarketAnalysisSummary
A. MarketSegmentation
B. TargetMarketSegmentStrategy
i. MarketTrends
ii. MarketNeeds
C. MainCompetitors
4. StrategyandImplementationSummary
A. MarketingStrategy
i. PricingStrategy
ii. PromotionStrategy
5. FinancialPlan
A. ImportantAssumptions
B. BreakevenAnalysis
C. ProjectedProfitandLoss
D. ProjectedCashFlow
6. Appendix

NaturesTaqueriaBusinessPlan

ExecutiveSummary
Thisbusinessplanwascreatedtoattractandsecureinvestors.NaturesTaqueriais
a promising franchise that offers enormous potential in the food truck business of
NewYorkCity.Althoughthisbusinessisinthestagesofdevelopment,therearetwo
mainreasonsastowhyNaturesTaqueriawillbesuccessful.

Firstisthelackofdirectcompetition(othermobilefoodtrucksexist,however,none
areofferinghealthyandorganicalternatives),thesecondisthehighdemandfora
product like this in New York City. With a weakened economy, consumers are
looking for culinary foods without paying the fine dining price tag. According to
MobileFoodNews.com, an online publication thats a trusted resource to
owner/operatorsandvendorsintheindustry,Insomecities,likeL.A.,Austinand
New York, food trucks are quickly becoming an established part of the happening
restaurantscene.ItwontbelongbeforeitscommonplaceforFodorsandZagatto
listfoodtrucksasnottobemissedrecommendations.1

1.A.Mission
Natures Taqueria (NT) will establish itself as the premier casual organic Mexican
dining experience in New York City while maintaining uncompromising principles
as it grows to four food trucks. The six following guiding principles will help
measuretheappropriatenessofeachofNTsdecisions.
Provideagreatworkenvironmentandtreatemployeeswithdignityand
respect.
Embrace diversity as an essential component in the way that NT does
business.
Apply the highest standards of excellence to the food production,
preparation,andservicetoNTscustomers.
Buildlastingrelationshipswithcustomersandcommunity.
Contributepositivelytothecommunityandtheenvironment.
RecognizethatprofitabilityisessentialtoNTsfuturesuccess.

1.B.Objectives

Obtainastrongfollowingof28,000plus
Reachpositivenetprofitinfirstquarter
BecomeamarketleaderinNewYorkCity
Average$30,000plusinrevenuesmonthly
Increaseannualsalesbetween05%infirstthreeyearsofoperation

1.C.KeystoSuccess

Location,Location,Location.
Obtaining bank financing at reasonable interest rates, and securing
individualinvestors.
Seeking the most experienced and distinguished organic farm
distributors.
Findingandhiringqualifiedmotivatedemployees.
Providingextraordinaryfoodwithunparalleledtaste.

NaturesTaqueriaBusinessPlan

CompanySummary
NaturesTaqueriastaystruetoitsnamebyonlyusingthefinestandfreshestorganic
ingredients to produce delectable Mexican styled tacos. The hallmark to our unique
styleiscombiningourMexicanheritagewithnaturesingredientsandservingpopular
areasofNewYorkCityduringtheirhighestpeaks.

OurhomemadeorganictortillasofferaoneofakindtastetoourMexicantacos.Using
only the most seasonal organic ingredients, our menu varies in flavors from hot
pepperstosweetfruits.NaturesTaqueriassuperiortasteischarbroiledcookingwith
succulent organically bred chicken, tender organic steak, and flavorful organic
vegetables and fruits. At Natures Taqueria there is a taco for everyone in every
community!

2.A.CompanyOwnership
NaturesTaqueriawillserveasacorporationwithAshleyCabarcasaspresident.At
the moment, Natures Taqueria is looking for investors with the intention to offer
financial support with no interest in any type of ownership. Natures Taqueria is
willingtomakea3%priorityreturntoallshareholdersontheirinvestment.

2.B.StartupSummary
Natures Taqueria has estimated overall startup costs of about $180,000. The
numbersinthestartupcosttablearemeanttoreflectthisestimate.Theallocation
intoeachcategorymaynotbeexact,buttheapproximatecostshavebeenestimated
slightly higher than the current prices of the mobile food vendor market and the
organic market. Overestimated costs will leave room for miscalculations so that
fundingwillbeavailableandwillensurethateverythingrunssmoothly.
StartUpExpenses
Requirements
FoodTruck
Food
Equipment
Legal
Brochures
Promotional
Insurance
FoodMobileInsurance
Permits/Licenses
Other(Gas&Water)
TotalStartupExpenses
StartupAssets
CashRequired
StartupInventory
OtherCurrentAssets
LongtermAssets
TotalAssets
TotalRequirements

$34,995
$5,000
$3,000
$5,000
$1,000
$0
$2,400
$3,000
$2,000
$460
$56,855

$75,000
$5,000
$0
$42,995
$122,995
$179,850

(Used&FullyEquipped)

NaturesTaqueriaBusinessPlan

StartupFunding
StartupExpensestoFund
StartupAssetstoFund
TotalFundingRequired
Assets

NoncashAssetsfromStartup
CashRequirementsfromStartup
AdditionalCashRaised
CashBalanceonStartingDate
TotalAssets

$56,855
$122,995
$179,850

$47,995
$75,000
0
$75,000
$122,995

2.C.CompanyLocationsandFacilities
The Natures Taqueria truck will be traveling throughout Manhattan and Brooklyn
all week long. The schedule below is a rough schedule, however exact details on
locations will either be posted on the home page of Nature Taquerias website, as
wellasviaFacebook,Twitter,andTweat.it.

Theuseofsocialmediawillnotonlyhelpattractalargertargetaudience,butitwill
also be an inexpensive way to advertise and promote NT. The use of social
networkingwillalsohelpretainaloyalcustomerbase.AccordingtotheWallStreet
Journal, a mobile food vendor who owns both a vending truck and a restaurant
makes50%profitonsalesfromthevendingtruckvs.10%fromhisrestaurant.2

Monday:MidtownEast
Tuesday:MidtownWest
Wednesday:FlatironDistrict
Thursday:MidtownWest
Saturday:Downtown/Brooklyn

NaturesTaqueriaBusinessPlan

MarketingAnalysisSummary
Marketsegmentationisdescribedinthenextsection.

3.A.MarketSegmentation
The 2000 Census of New York City/New York says there are currently over
8,008,278 people populating this metropolitan area. Using basic demographic
characteristics of age, gender, income, location, food preferences, ethnicity, an
estimate of 4,004,139 potential customers was used in developing this plan.
520,641areages15to19;589,831areages20to24;1,368,021areages25to34;
1,263,280 are ages 35 to 44; these are the primary target segments that are using
socialnetworkingapplicationslikeFacebookandTwitter.

ThelocationsthatwereselectedfortheNTtrucktomakeitsstopswerebasedon
the amount of mobile food vendor traffic those areas receive. Currently those
specific routes on those specific days seem to have less food vendor traffic. The
locationsarediverseinpeople;however,thesearehighpopulatedareasbecauseof
the surroundings, such as universities/colleges, apparel stores, and company
headquarters.

3.B.TargetMarketSegmentStrategy
The target market for the quick casual mobile food vendor industry is very broad
andshouldincorporatemostdemographicregions.Almostallages,genders,races,
andincomesshouldbeconsideredpotentialcustomers.

3.B.i.MarketTrends
In 2009 the Job Market Index reported a fouryear high rise in entrepreneurship.
The food truck phenomenon is the result of people facing unemployment and
branchingoutintotheirentrepreneurialideas. 3Thisvirtualsocietynowreliesfully
onsocialnetworkingandblogstoinformthemofwhatisinandwhatisout.Atthe
momentitseemsthatfoodtrucksarewhatisin!Manyofthefoodtruckscurrently
out there are offering gourmet food that traditionally was only offered in high
diningrestaurants.Butnow,gourmetchefsandentrepreneursalikearetakingtheir
gourmetfoodsandpropositionstothestreet;wherealargertargetcanbereached
atacheaperrate.

3.B.iiMarketNeeds
Currently in New York City there are no highquality, quick organic food being
offered.Mostofthesefoodvendorsusecannedfoods,lard,andshreddedmeats.Our
foodwillbe100%freshpreparedusingonlythefinestorganicingredientsinfront
oftheconsumerseyes.Ourrichanddiverseorganicmenuwillallowcustomersto
customizetheirfoodaccordinglytotheirpreferences(vegetarianmeateater)

3.C.MainCompetitors
ElReyDelTacoMainlocationisnear30thAvenueand33rdStreetinAstoria,New
York. Latenight drinkers are powerless before the sincronizada ($7) a gooey

NaturesTaqueriaBusinessPlan

melted hamandcheese between pressed flour tortillas New York Magazine

TrucksonaRoll
The Brothers L&C Latin Fast Food Main location is near 18th Street at Sixth
Avenue. For $2.50 (or three for $7), get a double corn tortilla filled with juicy,
flavorfulshreddedpork,beeforchicken.NewYorkMagazineTrucksonaRoll
Red Hook Trucks Main location is Red Hook Ball Fields, Court St. at Bay St., Red
Hook.Thetacos,pupusas,andhuaraches(allunder$10)thathelpedreigniteNew
Yorksloveaffairwithstreetfood.NewYorkMagazineTrucksonaRoll
Super Tacos Main location is near 96th Street at Broadway and 14th Street at 7th
Avenue.Trythetlacoyos($3):longmasaflatbreadsstuffedwithrefriedbeansand
topped, tamale style, with brightorange spicy pork, sweet chopped onion, lettuce,
andcilantro.NewYorkMagazineTrucksonaRoll
Mexicue Consists of multiple locations covering Downtown Brooklyn and New
York City. Mexicue focuses on tacos and sliders; three types specifically: Oak
Smoked Short Ribs topped with green salsa, cheddar and salsa fresca, the Smokey
PintoBeanswithgoatfetacheese,habeneroaiolislawandcilantro,andfinallyBBQ
Beets in a fiery bbq sauce with spiced goat crumbled cheese and watercress.
Foodtrucktalk.comFoodTruckOftheWeek!

StrategyandImplementationSummary
Thenextsectionswillhelpinunderstandingthecompetition,andthewaysinwhich
NaturesTaqueriaplanstogainmarketshare.

4.A.MarketingStrategy
Advertisingcostscanoverwhelmanewbusiness,sokeepingmarketingsimpleand
creativewillbechallenging.Costeffectivemarketingisoneofourkeystosuccess,
andfortunatelyalargeportionofitwillbetakencareofbysocialnetworkingand
NTswebsite.ThroughthesemediumsNTwouldsuccessfullyhitalargerandmore
specific demographic by selecting which audiences to advertise. For example,
Facebookservesasauniversaldatabaseofpeoplewhereitsmembersselectvarious
thingstheyenjoyandlike.NTwouldspecificallytellFacebooktosearchforpeople
whoarebetweentheagesof15to44livinginNewYorkCitythatenjoyorganicfood
andMexicanfood.

Besidessocialnetworks,NTwouldalsousetheapplicationFourSquarewhereNTs
customerswouldspecificallycheckintowhateverlocationtheNTtruckwouldbein
and just by checkingin the customer would receive promotional discounts at the
moment of purchase. This is a great incentive for customers to purchase NTs
productsbutalsocreateabrandloyaltyandrewardsprogrambetweenNTandits
consumers.

4.A.iPricingStrategy:
All menu items are moderately priced. A typical customer at NT would spend
between $68 including food and drink. The menu prices will be dictated
accordinglytoNTsoverallexpenses;however,discountswillbeofferedthroughout
toincreasecustomerretention.

NaturesTaqueriaBusinessPlan

4.A.iiPromotionStrategy
Ourbiggestchallengerightnowisgettingourbrandoutthereandcreatingabuzz,
and even though most of our advertising in the latter will be done effectively
throughonlinemediums,howcanweinitiallyattractcustomersiftheyhavenoidea
whoweare?Well,wefiguredthebestandmosteffectivewaywascreatingsignage
and promoting it throughout the communities where the truck will be making its
localstops.Whetheritspostingthissignageatorganicsupermarkets,universities&
colleges in the surrounding areas, or health centers, we want people in the
communitytotakenotice.Withabackgroundingraphicdesign,Iwouldpersonally
becreatingthissignage.

In the latter, NT would be interested in playing an active role in community

involvement. As a result NT will have special catering opportunities depending on
thecauseoftheevent.

FinancialPlan
The following sections present the financial plan for Natures Taqueria. Year end
totalsforthefirstthreeyearsarepresentineachsection.

5.A.ImportantAssumptions
Thefinancialplandependsonimportantassumptions,mostofwhichareshownin
thefollowingtable.Thekeyunderlyingassumptionsare:
Weassumethattheeconomygetsbackonitsfeetandreturnstonormal,
afterthecurrentrecession.
We assume access to equity capital and financing sufficient to maintain
ourfinancialplanasshowninthetables.

GeneralAssumptions

PlanMonth
CurrentInterestRate

10.00%

10.00%

10.00%

LongtermInterestRate

7.00%

7.00%

7.00%

TaxRate
Other

30.00%
0

30.00%
0

30.00%
0

Year1
1

Year2
2

Year3
3

5.B.BeakevenAnalysis
Thebreakevenanalysisisbasedonplannedfixedcostsestimates.
BreakevenAnalysis
MonthlyRevenueBreakeven
Assumptions:
AveragePercentVariableCost
EstimatedMonthlyFixedCost

$20,895

26%
$15,398

NaturesTaqueriaBusinessPlan

5.C.ProjectedProfit&Loss
In order to not underestimate costs, the costs calculated are considerably higher
thanwhatNTwouldmostlikelybeexperiencing.

NaturesTaqueriaBusinessPlan

5.D.ProjectedCashFlow
Inthefollowingchartitisimperativetonotetheimportanceofhavingcashonhand.
Ifthecompanywastorunintoanyproblemsthecashonhandwillensurethatthe
businessstaysrunning.

NaturesTaqueriaBusinessPlan

Appendix
1. http://www.mobilefoodnews.com/2011/01/takingittothestreetthe
foodtruckrevolution/
2. http://online.wsj.com/article/SB125079598384547231.html
3. http://www.theticker.org/foodtruckvendorsontherisethroughouttheus
1.2379621
4. http://online.wsj.com/article/SB100014240529702044566045742019340181
70554.html
5. http://www.msnbc.msn.com/id/37400996/ns/businesssmall_business/
6. http://businessonmain.msn.com/browseresources/articles/growthstrategies.as
px?cpdocumentid=25662234&source=bingvideo
7. https://www.openforum.com/ideahub/topics/money/article/foodtruckenvy
shouldyoujumponthishotfoodtrendelainepofeldt
8. http://cgi.ebay.com/ebaymotors/FOODTRUCKCUSTOMFOODTRUCK
CATERINGMOBILEKITCHEN
/280630145917?pt=Commercial_Trucks&hash=item4156dc337d#ht_3219wt_1
007
9. http://www.agmrc.org/commodities__products/livestock/beef/organic_beef.cf
m
10. http://www.openforum.com/ideahub/topics/innovation/article/thetruecost
ofthefoodtruckbusinessjudithaquino
11. http://newyork.grubstreet.com/2009/08/users_guide_how_to_start_your.html
12. http://factfinder.census.gov/servlet/QTTable?_bm=y&
qr_name=DEC_2000_SF1_U_DP1&ds_name=DEC_2000_SF1_U&_lang=en&
geo_id=16000US3651000
13. http://nymag.com/restaurants/cheapeats/2010/67139/index1.html
14. http://www.foodtrucktalk.com/category/newyorkfoodtrucks
15. http://www.foodtrucktalk.com/foodtruckmapsreport
16. http://www.organicdirect.com/organicfreshfruitsvegetablesorganicfresh
vegetablesc14_85_79.html