Jack's Truck Plan

Georgetown University- Jack’s Truck
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Alejandra Elosua
Andrea Lai
Elba Gonzalez
Serra Erkal
Stephane Safar

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Table of Contents
1. Executive Summary……………………………………………………………………………...4
1.1 Mission
1.1.1 Mission Statement
1.2 Keys to success
1.3 Objectives
2. Organizational Summary………………………………………………………………………...5
2.1 Legal Entity
2.2 Start-up Summary
2.3 Location and Facilities
3. Product/Service Description……………………………………………………………………...6
3.1 Our Product
3.2 Our Service
4. Market Analysis Summary………………………………………………………………………..7
4.1 Market Segmentation
4.1.1 Our Customers
4.1.2 Customer Demographics
4.1.3 Customer Psychographics
4.2 Target Market Strategy
4.2.1 Market Trends
4.2.2 Market Growth
4.2.3 Meeting Our Consumers’ Needs
.3 Main Alternatives
4.3.1 Our Competitors
4.3.2 Our Strengths
4.3.3 Our Weaknesses
4.4 Promotion Strategy
4.4.1 Advertisement
4.4.2 Marketing Costs
4.4.3 Costs Breakdown
5. Strategic Pyramid……………………………………………………………………………….13
5.1 Marketing Strategy
5.2 Pricing Strategy
5.2.1 Pricing Breakdown
5.3 Sales Strategy
6. Web Plan Summary…………………………………………………………………………….14
6.1 Website Marketing Strategy
6.2 Development Requirements
7. Management Summary…………………………………………………………………………16
7.1 Organizational Structure

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7.2 Management Team
7.3 Personnel Plan
8. Financial Plan………………………………………………………………………………….....17
8.1 Important Assumptions
8.2 Break-Even Analysis
8.2.1 Variable Costs
8.2.2 Fixed Costs Year One
8.2.3 Total Costs Year One
8.2.4 Calculating the Breakeven Point
8.3 Projected Cash Flow
9. Appendix……………………………………………………………………………………….23

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1. Executive Summary
Jack’s Truck is a food truck located at Georgetown University’s main entrance that
features crepes, smoothies and ice cream. We expect to gain a regular customer base,
made up mostly of students and staff members who visit the area frequently. We also
plan on offering competitive and low prices in order to meet the demand for quality and
cheap food that students can afford and would pay for regularly.
1.1 Mission
After conducting various interviews throughout Georgetown University, we found
that most students feel that there are limited food options that are both convenient and
inexpensive. Jack’s Truck is based upon this fact- we want to provide a better choice for
our typical customers; one that will meet the needs and demands of students at
Georgetown. Our establishment will provide what students have asked for: a fast, quality
and fresh food service that is affordable for a typical daily meal.
1.1.1 Mission Statement
We will provide our customers with the best and most efficient service, along
with the freshest and healthiest beverages and crepes.
1.2 Keys to Success
 Location
o Our business will take place outside of the main entrance, making it
convenient for both students and staff members to purchase any of our
products.
 Advertising
o We will promote our business through the vibrant Internet by creating
Facebook and Twitter pages and a webpage. We will also use the
traditional method by posting flyers throughout the university.
 Service
o Our success will be based on providing a fast and efficient service that will
allow our customers to purchase food products when they are in a hurry.
 Product Quality
o Our crepes and smoothies will be all natural and healthy for our
customers. They will be freshly made in front of their eyes.
 Efficiency

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o The making and serving of the food will be quick, allowing our customers
to save time.
 Price
o Apart from being efficient and healthy, we strive to have low prices that
are affordable for students who have low budgets, or for staff members
who wish to spend a reasonable amount of money on food.
1.3 Objectives
i. To make getting breakfast or lunch a fast and enjoyable experience
ii. To get our customers to experience the freshness of our natural smoothies and
crepes
iii. Satisfy the needs of our customers and getting them to leave Jack’s Truck with a
smile knowing that their breakfast or lunch was made using the freshest
ingredients as well as with care
iv. To create a profitable business that strictly follows work ethics and conditions for
our employees
v. To expand in the long-run to other university campuses
2. Organizational Summary
2.1 Legal Entity
Jack’s Truck is a Limited Liability Corporation. All membership shares are equally
and proportionately owned by Alejandra Elosua, Andrea Lai, Elba Gonzalez, Serra Erkal,
and Stephane Safar. The total percentage owned is 100% by the five shareholders. The
plan calls for the sale of 49% in the company to investors. Each membership unit in the
company is priced at $5,000, with a minimum of five units per membership certificate, or
a minimum investment of $25,000 per investor.
2.2 Start-Up Summary
Jack’s Truck start-up expenses require a minimum investment of $220,000 to
provide for the business infrastructure, i.e., truck, awning, as well as marketing materials,
media space in the school newspaper and radio, and wholesale food and food supplies.
To acquire capital, each of the major shareholders will invest $44,000 according to the
number of shares purchased. The combination of investments, assets, and loans will be
$220,000 in order to start Jack’s Truck.
Start-up Requirements
Start-up Expenses

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Kitchen and Fixtures (Truck) $90,000.00
Marketing Costs $2436.04
Car Insurance $2,700.00
Parking Fee $7,300.00
Total Start-up Expenses $102.436.04
Start-up Assets
Cash Required $24,140.00
Total Assets $24,140.00
Total Requirements $126,576.04
*To see total costs for the first year, please refer to the finance section. This does not include
variable costs.
2.3 Location and Facilities
The five co-owners of the company will take care of Jack’s Truck’s strategic
planning and development. As of now, there will be no facility or office building for
them, given that they all have easy access to Georgetown University’s facilities. After the
fifth year, we plan on expanding the business and leasing an office building, given that
we will have more staff members by then.
Jack’s Truck will open its first mobile facility near the main gates at the
Georgetown campus. Expected foot traffic is 20,000 people per day; we expect to
capture about 3% of the foot traffic.
The demographic requirements for our location include:

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 20,000 pedestrians per day
 Easy access
 Mature neighborhood
 Freshness and appeal
3. Product/ServiceDescription
3.1 Our Product
The main aim of Jack’s Truck will be to provide students with healthy,
inexpensive, and accessible food. While the main products are crepes and smoothies,
basic products such as water, juice, and Italian ice cream will also be sold. Products such
as hot chocolate and coffee will be available according to the season.
Both sweet and salty ingredients will be available in the menu. The customers
will be able to choose the ingredients they want, and will be charged accordingly. Basic
breakfast crepes will have 2 toppings and will cost $4.99. Each additional topping will
cost $0.99. Basic lunch crepes will have 1 topping with the option of adding cheese, and
will cost $6.99. Each additional topping will cost $1.99.
Sweet crepe ingredients will include fruits such as bananas, strawberries, peaches,
mangos, kiwis, apples, blueberries; and other sweet ingredients like marshmallows,
chocolate chips, Oreos and Nutella. Salty crepe ingredients will include chicken, steak,
cheese, vegetables, ham and turkey. Ice cream flavors will include vanilla, chocolate,
strawberry, cookie dough and caramel.
3.2 Our Service
The success of Jack’s Truck is based upon our efficient, quick, rapid and
convenient service. Our goal is to obtain regular clientele that consumes our products
daily or weekly, and we will do this by providing impeccable service that pleases our
MON/WED/FRI TUESDAY/THURSDAY Weekends
Morning (6-1) Afternoon (2-9) Morning (6-1) Afternoon (2-9) SAT (7-2) SUN (7-2)
Cashier 1 X X
Cashier 2 X X
Cashier 3 X X
Cook 1 X X
Cook 2 X X
Cook 3 X X

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customer’s needs. For the convenience of our customer, both a cook and a cashier will
be working. This measure will be taken in order to avoid long lines and waiting time for
the crepes and smoothies.
The following is the schedule for our workers:
*Note: Each employee will arrive/leave one hour before opening/closing time to ensure that
the truck is clean and to prepare materials.
4. Market Analysis Summary:
The food industry has proved to be one of the world’s most dominant markets,
accounting for over $5.7 trillion dollars of value in 2008. Since the beginning of human
civilization, this industry has begun to grow exponentially and has branched out into
smaller industries, one of them being the fast-food market. In the beginning of the
1900s, this was created in attempts to satisfy the demand for cheaper food that could
be consumed in a faster and more convenient manner. Today, there are over half a
million fast food chains available for customers, serving over 25% per cent of Americans
who consume these products on a daily basis. Jack’s Truck aims to fill the demand for
fast food at Georgetown University, while also promoting a healthy life style.
4.1 Market Segmentation
Jack’s Truck is specifically designed for the convenience of students and faculty at
Georgetown University. Our main goal is to provide healthy food in a small amount of
time for students and professors who seek quality items but don’t have the luxury of
eating at regular sit-in restaurants. We also aim to attend tourists that want a fresh and
easy place to eat at or to find refreshments in.
4.1.1 Our Customers
We will be focusing on three major consumer groups: students, faculty, and
tourists.
 Students:
o Jack’s Truck will be located on campus, near the main gates of the
university. We estimate that a great amount of students will purchase our
products, given that our location is a convenient place for them to get a
drink or a bite before or after class. According to recent polls, students at
Georgetown University spend around $25-30 dollars a day on food. Jack’s

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Truck will offer lunch starting at $6.99, an affordable price for a typical
consumer.
 Staff Members:
o Staff members are often hard pressed for time, thus needing a quick meal
to keep them going throughout the day in order to teach and work
effectively. With around 3500 staff members and limited time in the day,
Jack’s Truck will be an instant hit with these customers at Georgetown
University.
 Tourists/Locals:
o Georgetown University offers tours for visitors to learn more about the
university. These are guided by students and last about 2 hours. Within
this time, we expect tourists to get hungry and/or thirsty. Given that most
tourists walk along the main gates, the most popular site at Georgetown,
Jack’s Truck would be a great option for them. It offers a fast and
convenient product that will allow them to enjoy a snack while they tour.
We also expect to capture some customers that are locals and that
discover Jack’s Truck through advertisement.
4.1.2 Customer Demographics
 Age: 18-22, 40 and up
o Students, faculty
 Gender: Both
o Expect more females, they tend to go out for snacks with friends
 Socioeconomic Status: Middle-High

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o Probably studying or teaching at Georgetown University
 Income: Low-High
o Students with tight budgets
o Faculty with larger budgets
 Occupation(s): Students, Faculty, Staff, Officers, Other Georgetown Employees
4.1.3 Customer Psychographics
 Active
 Busy
 Always rushing
 Desire for cheap, quality food
 Physically active
4.2 Target Market Strategy:
4.2.1 Market Trends
As a result of health concerns worldwide, customers within the food industry
have started demanding nutritious products. Society has begun consuming more and
more organic and low-calorie goods, leading many food chains, including fast food
restaurants like McDonalds, to update their menu in aims please these needs. Jack’s
Food Truck recognizes this recent market trend and plans to take advantage of it. We
will be providing food that is the “healthier choice” for our customers, given that most
of our competitors, including the dining hall and the Leavey food center, fail to offer a
variety of these options.
Given that we will be selling only crepes, smoothies, and ice cream, seasonal
changes will play a strong roll in the consumption of our customers. During the winter
and fall the consumption of cold products will probably decline, and the demand for
them will increase during summer and spring. We will offer certain beverages (including
hot chocolate and coffee) in the fall and winter to make up for the losses in the demand
for smoothies.
4.2.2 Market Growth
Jack’s Truck will open as a single food truck in August 2012. If projections go as
predicted, it will hopefully expand to other locations. Depending on its popularity, we
would like to open another truck in other universities such as GW or American
University. The following are our goals:
 Have at least 50 customers per day

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 Add 15% of our customer base each month
 Open another food truck in 6 years
o Analyze Georgetown to see if another food truck will gain profit
 Consider the possibility of opening a food truck in other Universities
o Adapt to their mascot(s)
 George Washington University
 American University
4.2.3 Meeting our Consumers’ Needs
Jack’s Truck is yet another fast food restaurant- but with a slight twist. We aim to
provide the efficiency of any other chain, while also promoting a healthy eating style for
students and faculty at Georgetown University.
Our potential customers need a restaurant that is…
 Healthy
 Fast
 Affordable
 Efficient
 Delicious
 Available at rush/convenient hours
4.3 Main Alternatives:
4.3.1 Our Competitors
Keeping our competition in mind is very important in order for us to succeed. The
following businesses are substitutes that our customers can turn to:
 Leavey Center Food Court
Includes Subway, KFC, Pizza Hut, Cosi, and Starbucks. Located inside the Leavey
center.
o Strengths:
 Fast
 Close to hospital
 Cheap
 Lots of options
o Weaknesses:
 Unhealthy
 Closes early (5pm)
 Far from the dormitories

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 Epicurean and Co.
Self-serving restaurant that is adjacent to Darnall Hall. Also offers a Japanese
Teppanyaki service.
o Strengths:
 Healthy food
 Close to hospital/medical entrance
 Convenient for local people
o Weaknesses:
 Expensive
 Far from dormitories
 Hoya Snaxa
Store located adjacent to Kennedy Hall. Offers snacks, including sodas, chips,
candy, coffee, power bars and more.
o Strengths:
 Close to dorms
 Cheap
 Accessible
 Long service hours
o Weaknesses:
 Always maxed out
 Unhealthy
 Offers no variety
 Weak selection
 Muncheez Mania
Crepe store located on Wisconsin Avenue between M & L streets.
o Strengths:
 Affordable
 Delicious
o Weaknesses:
 Far from the university
 Can’t use GoCard
 Leo O’Donovan Hall
Georgetown University’s cafeteria. Students have to lease their meal plan here.
o Strengths:
 Close to dormitories
o Weaknesses:
 Expensive
 Unhealthy food
 No quality food
 Can’t take it outside

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4.3.2 Our Strengths
 We are located on campus
o Student’s don’t have to walk to M Street
o Local
 Low prices
 Healthy for customers
o Fresh ingredients
 Convenient
o Nearby, cheap
 Mobility to various places
 No rent
 To-go
4.3.3 Our Weaknesses
 Limited money
o Need investment
 No places for customers to sit
 Weather
o Rainy/snowy days
 Unattractive to customers
 Limited menu
o Only crepes, smoothies, and ice cream
 Limited locations
o Only on street
4.4 Promotion Strategy:
4.4.1 Advertisement
 Facebook page
o www.facebook.com/thejacktruck
 Twitter page
o www.twitter.com/thejacktruck
 Website
o www.wix.com/aleelosua/jackstruck
 Purchase domain name
 Instagram
o Pictures of crepes and smoothies of the day
 Pamphlets around university

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 Flyers
 Coupons
o Buy 10 smoothies, get 1 free
 Punch card (Jack’s head stamp)
 Sales
o Announcement through Facebook
 Special deals
o Jack’s birthday
 April 13th
o Holidays
 Sponsoring school events
o Catering
 Hoya Newspaper
4.4.2 Marketing Costs
 Printing Costs
o Flyers
o Pamphlets
o Coupons
 Internet-Related Costs
o Website Domain name
4.4.3 Costs Breakdown
Qty Product Description Unit Cost Yearly Cost
1 Website Domain Name $14.04 $14.04
50 Graphic Design Hours $40.00/hour $2000.00
3000 Coupons $0.014 $42.00
1000 Flyers $0.12 $120.00
1000 Brochures $0.26 $260.00
Total $2436.04
49%
33%
Marketing Costs
Design Internet Costs Printing Analysis

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5. Strategic Pyramid
5.1 Marketing Strategy
Jack’s Truck is to be marketed to the Georgetown University community,
including professors, students, faculty, and others, including staff, tourists, and
Washington DC officials who frequent the campus. We will show consumers a
nutritionally viable alternative to the typical fast food joint through newspaper ads,
coupons, special taste-testing promotions, and daily deals.
5.2 Pricing Strategy
Jack’s Truck pricing will be competitive with other fast food outlets and
competitors on campus, but our products will be provided much faster and cheaper,
with the best quality. Given the nutrition-conscious consumer, each meal will include
healthy ingredients and a low-caloric value.
Our pricing strategy is also based on what our competitors have to offer. After
conducting a survey to students at Georgetown, we found that on average, each student
spends from $12-$15 per meal. Our prices are based on this- we offer lower rates than
our competitors, giving us an advantage. One of the most important characteristics that
students consider when buying food is price, given that they are on a tight budget.
5.2.1 Pricing Breakdown
Our goal is to provide food at a reasonable and affordable price. The following
will be our rates:
 Sweet Crepes
o Basic will include two toppings and will cost $4.99
o Each additional topping will be $0.99

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 Bananas, strawberries, peaches, mangos, kiwis, apples, blueberries,
marshmallows, chocolate chips, Oreos and Nutella
o Basic will include one topping and cheese and will cost $6.99
o Each additional topping will be $1.99
 Chicken, steak, cheese, vegetables, ham and turkey
o Each smoothie will be $3.99
 Italian Ice Cream
o Sold per scoop
o $0.99 per scoop
 Beverages
o Water, Juice, Hot Chocolate, Coffee
o $1.99 per item
To see the menu, please refer to the appendix.
5.3 Sales Strategy
Our sales strategy is based on the freshness and appeal of our food: the crepes
and smoothies are being prepared in front of our customers’ eyes. We will not only sell
the actual product, but also convince our customer that Jack’s Truck is the healthiest and
most advantageous option. We will be known for our employees’ friendliness and their
efficiency as well.
6. Web Plan Summary
Due the increasing popularity and influence of social media on today’s youth,
Jack’s Buddies Corporation sees the Internet as a dynamic marketing tool, which targets
the company’s fundamental customer, Georgetown students. Due to the easily
accessibility of the Internet through phones and other popular student devices; Internet
marketing is the most suitable and cost-saving advertising tool. Jack’s Truck will have its
own website, as well as its own Twitter and Facebook accounts. Although considered,
direct e-mail will not be practiced, as a survey was conducted in which 100 Georgetown
students, randomly picked, were asked whether they viewed daily coupons and sales as
bothersome, 89(%) answered yes.
6.1 Website Marketing Strategy
The goal of the website [www.wix.com/aleelosua/jackstruck] and the two web
accounts [Facebook and Twitter] are to publicize the company with the aim of increasing
sales. Furthermore, the company’s websites will serve as reliable sources of information,

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with directions and maps, as well as the company’s menu and product lines. As the
business expands and adds both new locations and flavors, the website will will be
continuously updated. Our goal is to maintain a positive, interacting relationship with
the surfing community.
With the aim of increasing sales the company has decided upon a marketing
strategy to increase Jack’s Truck’s clientele. A daily not-on-the menu smoothie flavor will
be posted on both accounts at 7:00 am. 25 smoothies of this flavor will be given at a
50% discount to the first 25 customers who order the secret flavor. The daily secret
flavor will be announced as Jack’s favorite smoothie flavor of day, using the company
and university’s mascot. The daily announcement will therefore read as following:
Today’s Jack’s favorite not-on-menu smoothie flavor is ________!!!
The first 25 to order it by name will receive a 50% discount.
Order it ‘Cause Jack likes it!
6.2 Development Requirements
This virtual marketing tool will be mostly cost-free since both Twitter and
Facebook accounts are free social media sites. Although the sites are free or charge,
time will be dedicated to the development of these accounts. The addition of photos
and other announcements are vital marketing strategies that will keep these tools
effective. We will also update and use our own website, which has a small fee of $14.04
per year. The design(s) of the company’s virtual presentations will mirror the design of
Jack’s Truck, along with its branding elements.
Andrea Lai was chosen to manage web development, due to her previous
experience with both social media sites and website management. The innovating
design of Jack’s Truck’s Facebook and Twitter accounts will be handled by Alejandra
Elosua, because of her skill on web design and expertise on graphic design. Elosua is
responsible for conceptualizing the web’s account, as well of the future redesign of the
website.

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7. Management Summary
7.1 Organizational Structure
7.2 Management Team
Jack’s Buddies Corporation is ran by experienced, professional management team
of co-owners, including Alejandra Elosua, Serra Erkal, Elba Gonzalez, Andrea Lai, and
Stephane Safar. Each team member will bring his or her own area of expertise to the
development of our business. The decision-making concerning Jack’s Truck will be
divided as following:
 Serra Erkal: As the CFO (Chief Financial Officer) Erkal will be in charge of cash
forecasting and numerical analysis of the Company’s profits and expenditures.
Cash flow is crucial for any company, thus Erkal will be in charge of establishing a
cash-forecasting model, which must be regularly improved [in accuracy] by
instituting daily cash reconciliations, upcoming debt payments, and capital
expenditures. Erkal will furthermore be responsible for the company’s financial
strategy based on the company’s strength and weaknesses from a numerical
perspective.
 Alejandra Elosua: As the CMO (Chief Marketing Officer) Elosua will oversee
merchandising and branding; hence, she will be in charge of coordinating the

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production of public relations, media, and advertising. Elosua will also be in
charge of marketing the company’s service and image to the targeted audience
{Georgetown students} to meet sales objective. Lastly, her task also includes
designing Jack’s Truck social media sites and website.
 Elba Gonzalez: being the COO (Chief Operations Officer) Gonzalez will be in
charge of operations management, thus she will be responsible for the
improvement of the company’s operating systems [including computer systems
and accounting software]. Furthermore, she is in charge of maintaining order
within the lower ranking staff as well as monitoring their work. She will be in
charge of developing organizational strategies for the rest of the staff and will
also implement appropriate rewards and corrective practices to align employees
with the corporation’s goals.
 Andrea Lai: being the CBDO (Chief of Business and Development Officer) Lai is
responsible for the design and development of the company’s operating systems.
She is responsible for developing business opportunities in order for Jack’s
Buddies Corporation to grow based on the market. Lai will also be in charge of
proposing a strategic direction and planning for Jack’s Truck’s business
development and sales activities. Moreover, Jack’s Truck’s web development will
form part of Lai’s responsibilities as CBDO.
 Stephane Safar: being the CEO (Chief Executing Officer) Safar will oversee the
company’s day-to-day jobs, including store planning and organization. He will
supervise the decisions and reports of fellow chief officers, coordinating and
maintaining a smooth flow within the company’s operations. Lastly, Safar will be
in charge of employee policies, customer services and policies, as well as hiring
new staff members.
7.3 Personnel Plan
Jack’s Buddies Corporation’s aim is to increase employee’s salaries and
compensations as the business expands. This is expected to happen until Jack’s Truck’s
sixth year of business, since it will be when all loans are paid off. The personnel cost
chart figure is subject to change, as the business demands it. Furthermore, if the
company’s sales grow as predicted, a new Truck and or additional employees will be
considered to assist the increased administrative and market demands.
8. Financial Plan

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8.1 Important Assumptions
The financial plan depends on important assumptions. The key underlying assumptions
are:
 Economical
o We assume a stable economy, without major recession.
 Technology
o We assume that there are no unforeseen changes in technology to make
equipment immediately obsolete.
 Financing
o We assume access to equity capital and financing sufficient to maintain
our plan. We assume we will be given $220,000 at a 5% fixed interest to
start our business. This money will be used to purchase the truck, décor for
the truck, equipment to make the food, and ingredients and utensils to
serve the food.
 Each year, we will pay $44,000 in capital and the respective interest.
 Student Life
o We will assume that students and faculty are our main customers; hence
our estimates will be based on 16,437 students and 3673 staff members,
including academic teachers and administrative staff.
 Fluctuations
o Seasonal changes will have an impact on our business. We will assume
that smoothie sales will drop in winter and spike in summer.
 Inflation
o We will assume that the economy is experiencing low inflation rates, and
therefore our loan will be fixed.
 Other
o We assume that we are given permission from Georgetown University to
allow the truck to sell food and beverages on campus.
8.2 Break-Even Analysis
A break-even analysis serves to calculate how much money a company needs to
earn in sales in order for the revenue minus the expenses to equal zero. We will analyze
each part of the formula in the following sections:
8.2.1 Variable Costs
Monthly Monthly Total Yearly
Cashier $9/hour $756 $9,072.00

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Cook $11/hour $3,696 $44,352.00
Gasoline $300 $300 $3,600.00
Maintenance/Cleaning $200 $200 $2,400.00
Food/Materials $2,000 $2,000 $24,000.00
Marketing $2,431.89 N/A $2,436.04
Total $85,860.00
*We are assuming that cashiers and cooks work a total of 84 hour a week each altogether.
8.2.2 Fixed Costs Year One
Cost Unit Total
Truck $90,000 1 $90,000.00
Parking Fee $20 365 $7,300.00
Car Insurance $2,700 1 $2,700.00
Total $110,000.00
8.2.3 Total Costs Year One
Amount
Fixed Costs $110,000.00
Variable Costs $85,860.00
Total $195,860.00
8.2.4 Calculating the Breakeven Point
Expenses: $89,860.00
*This does not include the $24,000 on food because it is variable, this will be included in
the proportion. We included the proportion because food costs vary.
Expenses = Sales * [1 – (24,000/136,577)]
Sales = Expenses / 0.824
Sales = $109,053.39
Therefore, the company needs to sell $109,053.39 to break even.
8.3 Projected Cash Flow

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We expect to manage cash flow over the next five years with minimal new
investment required over the first two years. It is our expectation that revenue beyond
projected sales will be invested in retiring long-term debt early.
Year 1
Quantity Description Unit Cost Total
Revenues- Sales
Crepes, smoothies, ice cream, other $136,577.00
Expenses
1 Food/Materials $2000/month $24,000.00
84 Hours of cashier per week $9/hour $9,072.00
84 Hours of cooks per week $11/hour $44,352.00
88 Gallons of gas per week $300 $3,600.00
12 Maintenance per month $200/month $2,400.00
360 Parking Fee $20 $7,300.00
1 Car Insurance $2,700 $2,700.00
1 Marketing Costs $2,436.04 $2,436.04
Total Expenses $95,860.04
Net Income- Earnings
$40,716.96
Cash Flow
1 Income Loan $220,000 $220,000.00
1 Loan Payment (Capital) $44,000 $44,000.00
1 Food Truck $90,000 $90,000.00
1 Loan Interest Payment $11,000 $11,000.00
Cash Balance
$115,716.96
Year 2
Previous Cash Balance
$115,716.96
Revenues- Sales
Expenses

23
360 Parking Fee $20 $7,300.00
1 Car Insurance $2,700 $2,700.00
1 Marketing Costs $2,679.64 $2,679.64
Total $100,903.64
$62,968.36
Cash Flow
1 Income Loan N/A 0
Cash Balance
$125,885.32
Year 3
Previous Earnings
$125,885.32
Revenues- Sales
Expenses
360 Parking Fee $20 $7,300.00
1 Car Insurance $2,700 $2,700.00
1 Marketing Costs $2,679.64 $2,786.80
Total $102,710.80
$70,834.20
Cash Flow
1 Income Loan N/A 0

24
Cash Balance
$146,119.52
Year 4
Previous Earnings
$146,119.52
Revenues- Sales
Expenses
360 Parking Fee $20 $7,300.00
1 Car Insurance $2,700 $2,700.00
1 Marketing Costs $2,679.64 $2,679.64
Total $104,403.64
$79,383.36
Cash Flow
1 Income Loan N/A 0
Cash Balance
$177,102.88
Year 5
Previous Cash Balance
$177,102.88
Revenues- Sales
Expenses

25
360 Parking Fee $20 $7,300.00
1 Car Insurance $2,700 $2,700.00
1 Marketing Costs $2,679.64 $2,679.64
1 Rent for Headquarters $16,704 $16,704.00
Total $115,207.64
$81,780.16
Cash Flow
1 Income Loan N/A 0
Cash Balance
$327,890.68

26
9. Appendix
9.1 The Menu

27

28
9.2 Sources
Lubyansky, Alex. "How to Measure Foot Traffic." EHow. Demand Media, 31 May 2011. Web.
10 Aug. 2012. <http://www.ehow.com/how_8518281_measure-foot-traffic.html>.
Sonesson, PhD, Ulf. "Food Industry Life Cycle." SIK, n.d. Web. 10 Aug. 2012.
<http://www.earto.eu/fileadmin/content/01_Seminars___Conferences/AC_2010/3-
Ulf_Sonesson.pdf>.
"Fast Food." Fast Food. Palo Alto Medical Foundation, n.d. Web. 10 Aug. 2012.
<http://www.pamf.org/teen/health/nutrition/fastfood.html>.
"Fast Food Restaurant Business Plan." Fast Food Restaurant Sample Business Plan. N.p., n.d.
Web. 10 Aug. 2012.
<http://www.bplans.com/fast_food_restaurant_business_plan/company_summary_fc.php>.
"Food and Beverage Industry Global Report -- 2010." An IMAP Consumer Staples Report.
IMAP, n.d. Web. 10 Aug. 2012.
<http://www.imap.com/imap/media/resources/IMAP_Food__Beverage_Report_WEB_AD64
98A02CAF4>.
"Hello Scheduling Blog." How to Set Up Employee Shifts for Your Business. N.p., n.d. Web.
10 Aug. 2012. <http://www.helloscheduling.com/blog/how-to-set-up-employee-shifts-for-
your-business>.
"Market Analysis." SBA Direct. N.p., n.d. Web. 10 Aug. 2012.
<http://www.sba.gov/content/market-analysis>.
"Marketing Research: Demographic and Psychographic Consumer Data to Develop
Marketing Strategies." Yahoo! Contributor Network. N.p., n.d. Web. 10 Aug. 2012.
<http://voices.yahoo.com/marketing-research-demographic-psychographic-consumer-
3512903.html?cat=3>.

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