Date post: | 01-Jul-2015 |
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Business |
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Starting a New Business, Developing a Product, and Entering an Established Market
Burrito Box: A Case Study 203/23/11
DC Street Food
• Moratorium on new permits from 1998-2006
• 2006 DCRA survey lists variety and quality as 1 & 2 concerns, respectively
• 82% of respondents demanded more variety
• 84% of respondents demanded more ethnic cuisine
• 56% of respondents demanded more healthy choices
Burrito Box: A Case Study 303/23/11
Not All Carts Are Mobile 7-Elevens!
• On The Fly franchise emerges in 2007-
• Puputella Pizza cart• Pedro & Vinny’s • Market rewards innovation,
taste
Burrito Box: A Case Study 403/23/11
“No new vendor permits”- DC Red Tape
• What about Arlington, VA?
• High density commercial and residential space
• Same tastes and preferences
• Transparent process for entrepreneurs
• Ballston and Rosslyn are near stand-ins for DC
Burrito Box: A Case Study 503/23/11
“First Come, First Served”, Arlington, VA
• Ballston submarket, in particular, looks promising
• Very few street vendors
• Expensive commercial real estate
• Few, if any, unique dining establishments
Burrito Box: A Case Study 603/23/11
Logistics
• Licenses• Depot• Cart• Kitchen
equipment• Product
Burrito Box: A Case Study 703/23/11
How Will the Business be Defined?
• “Rethink street meat”• Affordable• Local/organic (realistic?)• Unique• Appeals to all-including
Vegetarian options• Environmentally friendly
(100% recycled packaging)• Healthy
Burrito Box: A Case Study 803/23/11
Developing the Concept and the Brand
• Tex-Mex- Easy, familiar, success of Pedro & Vinny’s, fitting (client is a Texan, after all)
• Burrito Box- Call it what it is!
• Use CrowdSpring to find a fitting logo
Burrito Box: A Case Study 903/23/11
Burrito Box: A Case Study 1003/23/11
Finances & Pricing Strategies
• Given fixed and variable costs, what are breakeven sales?
• What are expected sales?
• How can the business expand?
• Market-driven, instead of Cost-driven pricing?
Break-Even Analysis
$-
$100
$200
$300
$400
$500
$600
0 10 20 30 40 50 60 70 80 90 100
Meals Sold
Fixed costs Total Revenue Variable Costs
Burrito Box: A Case Study 1103/23/11
Attracting Customers
• How to capture high volume foot-traffic?
• “Let Abe Buy Lunch”
• “Mall Food Courts are so ‘90s”
• Focus on customer service, given size
Burrito Box: A Case Study 1203/23/11
Takeaways
• Focus was on business model, not food
• No reserve capital
• Seasonality• Too few cooks
in the kitchen!