El Quesarito LocoAuthentic Mexican Food TruckStrategy 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 AdvantagesCore 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)
Alex Costco WalmartBlack 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 SystemCashier: 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!