Foodstop Business Plan Submitted To: Hugh Samson 24/04/2010

Submitted by:

Kerim Can Kiziler Bhavishya Sudan Justin Pulikodan Manshi Seksaria Samandeep Kaur
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Table of Contents Sr. No 1. Executive Summary Topics

Mission statement Values Objectives Logo Business Overview

2.

Services

Indian, Thai and Mexican Cuisine Music Television Bell phone facility

3.

Marketing plan

Web/Internet Print Strategic Partnerships Surveys Macro-environmental factors SWOT Analysis Flyer design Poster design Demographic Information

4.

Operations

Supply and delivery Quality Management Managing material and employee Equipment maintenance Scheduling and management Analyzing customer trends Regulating the process Training Process Flow Chart

5.

Location

Centennial College Humber College George Brown College

6.

Competition

Competitors Our indirect competitors Competitive Analysis

7.

Supply Chain

Supply chain design Our Suppliers Zero Inventories Out of stock situation Packaging and other materials Handling the food Food safety

8.

Organizational Structure

9. 10. 11.

Licensing and Certification Financial Plan Bibliography

Executive Summary

The last recession made people save money for their future and nowadays they do not want to spend their money going to luxurious restaurants. Especially young generations are trying to find cheap activities to spend their time and enjoy. Young Canadians and people who try to spend less but have fun can have a wonderful experience in our mobile food van restaurants. Foodstop restaurants offer three different cuisines (Indian, Mexican and Thai) to young college generation and for people who want to experience different cultures for a while. Foodstop restaurants will be located in near Humber lakeshore campus, George Brown College and Centennial College on week days. The college areas are ideal for Foodstop restaurants because of the younger population of these demographics. Students will experience the culture and the cuisines of these countries in our mobile food van restaurants. During the weekend we plan target the college residence, entertainment hubs, sport clubs and downtown area.

Foodstop restaurants will be located near Humber lakeshore, George Brown and Centennial colleges and Downtown area. The three mobile food van restaurants will be managed and controlled by six people. The food will be provided by the restaurants that the business has tied up with.

Foodstop restaurants will be more than a restaurants experience. Students teachers and Torontonians will enjoy the Indian, Mexican, and Thai culture by flat screen televisions, pictures, music and the costume of our staff while they have their meal. Our mobile food van restaurants will make them experience these three lovely cultures and spend time with their friends.

Foodstop restaurants will focus on Humber lakeshore, George Brown and Centennial colleges first and then downtown area.

Foodstop restaurants are different because these restaurants will make their customers feel the Indian, Mexican, and Thai culture. We believe that our business model will be the beginning
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of a new mobile food van restaurant concept.

Mission Foodstops mission is to make students learn more about different cultures and by providing this cultural environment to students, their teachers and the people from that area will enjoy spending time in our mobile food van restaurants. One of our missions is also change the concept of restaurants in Toronto. Nowadays people are afraid to spend money, so our restaurants will be cost effective and enjoyable. While they are having their meals they will experience the cultures, which our mobile food van restaurants provide. Foodstop restaurants can change the concept of restaurants in Toronto.

Values We believe that consumers are trying not to spend their time in luxurious restaurants, so it is important for them to find cheap activities to spend time with their friends or families. It is the duty of the restaurants to provide their customers cost effective and a wonderful experience. We will not provide them food only we feel make our customers feel and experience a different culture while they are in our restaurants. Having a meal and spending time in mobile food van restaurants will be a different experience for people in Toronto because we will have a cultural atmosphere. We want to entertain our customers and make them learn different cultures. We want to change the concept of restaurants in Toronto. The city of Toronto can be known for its different kinds of mobile food van restaurants.

Objectives

Change the way concept of restaurants in Toronto and entertain our customers. Make Torontonians be aware of mobile food van restaurants. Provide our customers a warm and a friendly environment. Be number one in this market. Make Torontonians learn about Indian, Mexican and Thai cultures. Building long relationships with our customers and make them feel at home. Give them a unique experience Promote city of Toronto with its mobile food van restaurants.

Foodstop truck design

The description of the logo

1) The red colour is used in the logo to attract the attention of our target audience which is the college students. 2) Dynamic font type is used in the logo. Foodstop will focus on college students, so our font type is dynamic.

3) Our icon in our logo has a big fork and a knife which refers to hunger, so students will directly understand that this logo is for a restuarant.

Business Overview

Food Stop: A place where culture blends with quality authentic food. Food Stop promises to offer a variety of quality multi cuisine food to students in various colleges. There are many students studying in various colleges and universities across Toronto who are staying away from their home including International Students. These students are so busy attending colleges, making assignments and many other things that they dont get proper time to cook their food and hence have to compromise. This is where Food Stop comes in the picture. We provide authentic multi cuisine food i.e. Indian, Mexican and Thai through a food van. We have different suppliers for different cuisines, which have been in this business for a long time, provide quality food. We do not want the students to compromise on the taste and quality of the food. To start with we are aiming at targeting three of the Torontos hugely populated college Humber College (Lakeshore Campus), George Brown College and Centennial College. Our trucks will be placed outside these colleges 5 days a week in from morning to afternoon so that the students can get easy access to our services. And we supply food to the people at downtown during evenings and on weekends as the number of people moving out of the houses is high on weekends.

Services offered by foodstop Food Menu Foodstop restuarants are commited to offer variety of cuisines to their consumers. Students want more variety in their school cafeterias, but they have the same kind of food everyday, so foodstop restuarants will offer them different kinds of menus.

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Our menu will comprise of the following cuisines: Indian Cuisine

Vegetarian Entrees PaneerMakhani Dal Makhani Rajma Chicken Entrees Butter Chicken Chicken TikkaMasala

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Tandoori Chicken Rice Steamed Rice Vegetable Biryani Chicken Biryani

Breads Naan Chapati AmritsariKulcha

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Thai Cuisine

Noodles & Rice Phad Thai (Thai Rice Noodles) Stir-fried Thai Noodle with Chicken, Shrimp, Egg, Tofu, Tamarind Sauce, and Sprinkled with Roasted Peanuts served with fresh sprouts and green onion. Vegetarian version is also available.

Phad Kee Mao (Thai Spicy Noodles) Fresh Rice Noodles stir-fried with basil leaves and hot-chilies. Chicken or vegetarian
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Chicken & Rice Thai fried rice with chicken, egg and peas.

Khao Phad Supard (Pineapple Fried Rice) Basil Rice Steamed Rice Sticky Rice Steamed Rice with Coconut milk

Chicken Gai Yang (Marinated Grilled Chicken) Chicken marinated with garlic and special Thai spices, grilled and served with Thai chili-garlic sauce.

Panang Gai (Red Curry Chicken) Chicken in red curry sauce, coconut milk, vegetables and basil leaves.

Gai Phad Krapao (Basil Chicken) Chicken with sweet basil leaves, garlic and chili peppers. Chicken with Peanut Sauce and lightly breaded chicken stir-fried with cucumbers, red peppers, tomatoes, pineapple and mango.
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Mexican Cuisine

Tacos Tacos a La Plancha Soft corn tortillas filled with one of the following choices: beef, chicken or vegetables, mixed with sauted onions three (3) per serving.

Tacos de Chorizo Mexican Chorizo sausage, served in a soft corn tortilla three (3) per serving.

Grilled Chicken Four corn tortillas filled with delicious grilled chicken and onions.

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Taquiza Different types of tacos.

Specialties Enchilada Two corn tortillas stuffed with your choice of beef, pork. Chicken or vegetables covered with today's sauce, topped with melted cheese and sour cream, served with rice and salad.

Burritos All burritos come in a 8 flour tortilla filled with a spread of black beans, lettuce and one of the following choices: beef, chicken, pork or vegetables (most choices are prepared with green peppers and onions) topped with ranchero sauce, melted cheese and sour cream, served with rice and salad.

Quesadillas Flour tortilla filled with melted mozzarella and your choice of: beef, chicken, chorizo, or vegetarian. Topped with drizzle sour cream and a touch of feta

Every week our food vans will change the weekly menu according to these lists, so the consumers will have different food every week. The consumers can give feedbacks about our menus from our website www.foodstop.ca.

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Music offered Our food vans will provide music to our customers, so while they are having their meals they can listen Indian, Thai or Mexican music. Cultural information and travelling to these countries The flat screens that the truck has will give general and cultural information about these countries. The flat screens will provide virtual tours to these countries, so it will be a different experience for our consumers to buy food from our food vans. In addition our staff will wear cuktural customes of these countries while they are serving to our customers. The two tour companies will sponsor our business because we will advertise these two tour companies through our flat screens and try to make our consumers contact these agencies to travel India, Mexico and Thailand. The two tour companies that will sponsor us: 1) Industravel http://www.industravels.ca/ 2) Traveldiscounters.ca http://www.traveldiscounters.ca/

Bell phone services Our food vans will have a charger from bell, therefore; our customers can charge their mobile phones through the chargers that we provide. Bell will also sponsor us for having their charge machines.

Why will foodstop be successful? As we all know Toronto is a multicultural city and Torontonians love variety because there are lots of different ethnic groups living in Toronto. Torontonians can reject fast food culture if a perfect food service is provided for them. Foodstop restaurants will offer them healthy and different cuisines to them, so Torontonians will like our restaurants and we will be successful.
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Marketing Plan Foodstop restaurants focus on younger generation because the restaurants will offer costeffective meals and feel them travel to exotic countries such as (India, Mexico, and Thailand). The restaurants will be located near college areas Humber lakeshore, George Brown and Centennial. Our target group is students who are dynamic and adventurous, so mobile food van buses will provide them experience and adventure while they are having their meals. The students will explore a different experience in restaurants. After the college students our business will focus to everybody who lives in Toronto. Firstly we plan to market our business to the colleges that we want to focus that is Humber Lakeshore, George Brown and Centennial. In our second year of business we plan to spread all over Toronto and during the weekends Foodstop restaurants will use different channels to be able market itself successfully to its target audience. Web/Internet, Print, and Strategic Partnership channels will be used to have a strong position in our market.

Web/Internet In this century every business has a website, so Foodstop will have its own website www.foodstop.ca. With the help of our website we plan to reach a larger target audience. The website will provide information about the locations of the restaurants, menus, promotions, and the cultural events of our mobile food van restaurants. People love to surf in social networking sites, so we plan to advertise our business in social networking sites. With this way we will reach the young generation in Toronto easily.

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1) Facebookwww.facebook.com

2) LinkedInwww.linkedin.com

3) Myspacewww.myspace.com

4) Twitter www.twitter.com

5) Flickrwww.flickr.com

6) Bloggerwww.blogger.com

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In addition we plan to advertise our business in these useful websites: www.Restaurantica.com/ www.TorontoLife.com www.InsideToronto.com Print Foodstop will use billboards in school areas to attract attention. Flyers will be distributed to the students School newspapers will be used to advertise our food business to the students Community newspapers will be used near school areas to make people know more about our food business. Business cards will be distributed to the students Promotional posters will be used There will be posters about our cultural events Strategic Partnerships Forming strategic partnership is crucial for Foodstop restuarants because the food of the Foodstop will be provided by different restuarants, so the business will have long-term relationship with several restuarants. The list of restuarants that Foodstop will have relationship are listed in suppliers list. The other strategic partners are travel agencies 1) Industravel http://www.industravels.ca/ 2) Traveldiscounters.ca http://www.traveldiscounters.ca/ Through our plasma screens we will advertise these two travel agencies, which have routes to India and Mexico, so we will have advertising revenue from these two travel agencies.
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Surveys

Variety of food at cafeteria

12.5%

45.83% 41.67%
strongly disagree
disagree

agree
strongly agree

Frequency of eating food in a restaurant off campus

4%

17%
29%
0 3-4

50%

5-8 More than 8

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Would like to try different cuisine?

8%

42%
strongly disagree

50%

disagree
agree

strrongly agree

Cost of cafeteria food

21%

46%
33.33%
strongly disagree disagree agree strongly agree

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Take away food?

17%

13%

strongly disagree

71%

disagree

agree
strongly agree

Pie Chart Explanation A research analysis was conducted by our team by doing a survey asking students of Humber College, Lakeshore Campus about their frequency of visiting a restaurant, whether they would prefer trying different cuisines and whether they will prefer take away food near their campus, etc. Following are the results: 1. Around 50% of the students said they eat food outside the campus around 3 to 4 times in a week. 2. More than 40% of the students said the variety of food at the college cafeteria is sufficient. (x) 3. 50% of the students said they would like to try different cuisines other than what they get at the cafeteria. The cuisine which they would prefer to try includes Indian, Mexican and Thai. 4. About 45% students said the cost of the food at the cafeteria is quite expensive. 5. Around 70% students disagreed in trying taking away food from/near the college. (X)

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The population of our target audience:

Our restaurants will focus on Humber Lakeshore, George Brown, and Centennial College, so approximately our target audience is around 44.600.

Situation Analysis We plan to provide healthy food to students and the Torontonians with the help of mobile food vans. The students, teachers, staff of the school and the people from that area will have different cuisines and it will be cost-effective for them. The Foodstop restaurants will create a different environment for our consumers. Most of the food vans are just distributing food for their consumers, but in our business we will also provide them a cultural environment. The Foodstop restaurants will be an opportunity for our consumers to learn more about India, Thailand, and Mexico. The aim of this business is to provide our consumers a lovely meal and a cultural atmosphere.

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The consumers will have the opportunity of trying different world cuisines such as Indian, Thai, and Mexican. The question is to how to attract the students to our food van business? Do students have the opportunity of trying different cuisines that is cost effective and healthy? The students use their school cafeterias, which are expensive, and the school cafeterias only offer fast food to students. Some of the places outside school are cost-effective for students but the places outside school do not offer healthy food to students. The students do not have variety for food in school and near school areas. In addition, students must have an environment, which they can learn more about different cultures because they are living in a multicultural city (Toronto).

Situation of the Market: Are there any food van catering service near college areas, which provides students variety of cuisines, which is healthy, and provide a cultural environment? The school cafeterias of Humber Lakeshore, George Brown, and Centennial College do not have variety of cuisines and they do not offer a cultural environment to the students. The places outside school do not offer students healthy food and they do not provide a cultural environment to the students. The school cafeterias and the fast food places near college area have limited quality of service for students.

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Unfulfilled Consumer Needs Students do not have the opportunity to access a variety of cuisines and a cultural environment in school and near school environment.

Reasons The fast food culture in Canada The food in the cafeteria and eateries near school area is not healthy. The students do not have the opportunity to learn a different culture while they are having their meals. The only way for students to have a healthy and a complete meal is if they prepare their lunch pack before the going to school.

Advantages of Foodstop restuarants for the students They will have different options for lunch They will have a healthy and fresh meal It will be cost-effective for them They will have a cultural environment while having their meal They will learn more about India, Thailand and Mexico They will experience a different atmosphere for a while It will be practical for them The students who live in the residence can have their healthy meals even on weekends. Foodstop restaurants will be there for them during the weekends. They will have a delicious meal by buying food from our food vans.

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Macro-environmental factors Competitive structure The idea of the Foodstop restaurants is aimed to serve consumers need in a different way. It is important to clarify that there are food vans in Toronto that serves food to their customers. However, these vans do not provide healthy food to their consumers and they do not have different options for their customers. Furthermore, these vans only distribute food to their customers and the consumers do not feel special while they are having their meals from these vans. The foodstop restaurants can differentiate it from these vans and enter the market in a perfect way. Under the light of this structure, the food vans to provide healthy and different cuisines, which create a cultural environment for their consumers, can be mentioned as a new idea. This leads us to be the leader of the market.

Market coverage Differentiated market coverage will be followed. The foodstop restaurants will provide a service that has not been offered to consumers. The target group will be; College students, school staff, teachers and the Torontonians.

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SWOT Analysis Strengths: Our basic strength lies in variety of cuisines and the cultural environment to our consumers. The way of how our consumers eat is expensive and not healthy plus they do not get informed fully about their meals. There is no food van near school areas that provide variety of cuisines, which is healthy and provides a different environment to the college students.

Weaknesses: Our food vans will only provide Indian, Thai, and Mexican food. Consumers might want to taste different cuisines later on.

Marketing Opportunities: Our business can be a beginning of a new trend and in the future we can even franchise our business. Foodstop restaurants can be all over Canada as well as in different countries in the near future. We will provide healthy meals to everyone from youngsters to baby boomers. Consumers can learn the importance of eating healthy food; also consumers who want to travel to India, Thailand and Mexico will get a chance to travel through us at cheaper rates as we have tie ups with travel agencies. The city of Toronto can be famous for its own mobile food vans, which can be lively and enjoyable. After several years we can franchise our business to different cities of Canada or even different countries.

Marketing Threats: A food van, which offers more cuisines such as European meals, can be a big threat for our business. In addition, students who do not wish to spend money for meals and have their own lunch pack. Some problems can occur with the other food vans since they would not like new

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entrants to this business. Safety of our employees (Other food van employees can attack our employees. The economic crisis affects the income of our target audience.

The importance/need of quick and quality food The lifestyles of people living in Canada does not permit them to cook food and carry it to colleges, offices, also their busy schedules do not allow them to spend huge amount of time in eating at restaurants during college or office breaks, so the demand for quick and quality food increases. People pay huge amounts having a meal at a restaurant. They need quick food which saves their time quality food which satisfies them and less expensive food which they can afford to buy. The percentage of obese people in Canada is increasing day by day. They need healthy food because nobody wants to be out of shape. Everybody wants to live a healthy lifestyle without compromising on the quality and the variety. Today the customers have become more demanding in case of price, quality, hygiene etch. The customers are more concerned about the ingredients of the food products and hence we aim at maintaining optimum quality standard in the food we provide. The demand for quick food is immensely high today. For example KFC, Mc Donalds provide quick and quality food and this is what makes them one of the most successful food providers in the world. Our target markets who are students need quick food at a reasonable rate as they stay away from their families and the schedules they follow do not permit them to cook food on a daily basis. 70% of the people who filled in the survey forms provided by us want take away food and are ready to spend a reasonable amount on it.

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Flyer design

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Poster design

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Demographic Information

Humber Lakeshore campus (Etobicoke-Lakeshore Profile) Population by Age Group

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Total Population for education (Our target group)

33

George Brown St.James campus area:

34

The target group

35

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Centinnal College Progress campus (Centennial Scarborough area)

Our target group

37

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Operations: Foodstop is the first of its kind which focuses on supplying food that is less costly and of high quality. The emphasis on high quality is important to us and the customers as well, this is because we will not compromise on the quality aspect no matter what. Our primary customers are students across 3 different colleges, for the first half of the day, and everyone else who wants to have quality food are the customers for the other half of the day. The colleges that we aim at serving in the early stages of our business are Humber Lakeshore, George Brown, Centennial and Downtown because they have huge number of students which is a combination of local Canadians and international students from China, India, South America, Mexico and many other countries. Our business will serve customers that want to eat good, healthy and tasty food at decent prices. The students who stay away from their families want food that is nutritious and homely. In order to make this business of serving meals we need employees that are efficient and customer oriented. Since our food trucks will be on the campus from morning till evening serving the college students and will not be moving around, the driver who drives the truck to the college will be the sole employee handling everything from the serving the customers to order taking. He will be handling the heating of food and serving it to the customers accordingly. We aim at utilizing our workforce and resources to the maximum. So each food truck will have one employee. There will be a manager who will be responsible for handling the employees and managing the trucks in a much better way by serving them quick and in an organized manner wherein the customer need not wait for long or get angry. So the three food trucks serving Humber Lakeshore, George Brown and Centennial will have 3 employees in total. The second part of the day we plan to serve or cater the people at the malls or around crowded places such as Eaton centre, Richmond Street etc. The number of employees will be the same as those working from morning. It will be 6 hours from morning till late afternoon and then 6 hours for the late evening shift and they will be paid accordingly for the 6 hours they put in. Apart from the operations team, there will be a finance manager who will be responsible for managing the day to day expenses, accounts, payment to suppliers, salaries to employees and
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other expenses, he will also deal with banks, handle the loan payments. There will be another employee who will play the role of manager, he will supervise and see to that day to day operations are being performed with great efficiency and also there is less or no damage possible.

As the manager of the operations department, activities that need to be performed include: 1. Supply and delivery: The food supplied at different destinations will arrive at the locations where we will operate from at the right time ( an hour before we sell the food). In case of stock out, the supplier will supply the food directly to the trucks within a span of hour to 1 hour from the time it is ordered.

2. Quality management: As quality is the major aspect of our business, we need to ensure that the food supplied is fresh and well cooked, apart from food we even need to ensure that our food trucks and employees are quality and hygiene conscious. Also the level of customer service provided should be of high quality.

3. Managing material and employee: We will hire 6 employees, three for each shift, an employee who will play the role of handling operations and an accountant for managing day to day transaction. Apart from the employees the material that is used for packaging and serving has to be appropriate and ordered in bulk in order to meet the future shortage demand.

4. Equipment maintenance: Every bus will have an appropriate heating appliance installed in them, so that the server can manage more than two orders at time which would reduce the customers waiting time in the queue.

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5. Scheduling and management: The entire process from food arrival to serving the customer has to be well organized and scheduled, i.e. the activities that need to be performed at each stage should be on time, so that the meals are made available to the customers fresh and on time.

6. Analyzing customer trends: In order to meet the changing demands of the customer, our business has to analyze the frequent changes in the customer trends. This will help the business to serve their customers better.

7. Regulating the process: In order to make the business process effective and efficient, every organization has to review and regulate its process and systems and make changes to them as required. In our case, we will have to review the pattern (of supplying as well as delivery) and the design and make the required changes. Training The employees working on the truck will undergo a specialised training which will train them in food handling, customer service, heating process, hygiene factors, serving food and environmental measures to be taken. The employees will receive a special food handling certificate after completing the training and in this way they will be efficient and well trained before hitting the floor. They will also be trained on how to control damage, since increase in damage will increase the cost and thereby decrease the profit margin. The training will be conducted by a qualified person from the hospitality sector. They will be trained on safety measures since there will be heating equipments on the truck, also about the safety of the customer, so they will be well

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Process Flow Chart

Deciding on what food (without compromising on the quality) and from which restaurant has to be supplied to the customers.

To arrange human resources (employees) and materials (menu, serving plates etc) that would help in serving the customers in a better and an efficient manner.

Installing appropriate heating appliances that would help employees attend to many customers within a time period.

Ones the menus have been decided, the next step is to assign employees at each location.

Proper co-ordination between the supplier (restaurants) and the food truck employees for timely distribution.

Attaining high quality customer service

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Truck layout

SERVING COUNTER

STORAGE

Serving Table with food holder

Three door Heating System FREEZER

Standard Model Dimensions: 285"L x 86"W x 118"H

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Location Locating our food trucks at the prime locations is important for the success of the business. Our service targets customers like college students, staff and faculty in the morning batch and the general public or late eater in the night batch. In the morning batch, our trucks will be located outside three college campuses i.e. Centennial College, George Brown College and Humber College. Our food trucks will be placed as such that it can catch the eyes of students (entering or leaving the college premises). By parking our trucks outside these three campuses, we will be able to cater to at least 1/3 rd of the crowd which includes the college crowd and the passer bys as well. The areas that we cover are Progress Avenue, Scarborough Centennial College. Kings Street, Downtown George Brown College. Lakeshore Blvd Humber College. Downtown area in the evenings. For the Morning batch our food trucks are scheduled to arrive at these locations by 9 a.m. and will leave for the next destination by 5 p.m.

Area Description 1. Location: Centennial College Located in Torontos culturally diverse communities of Scarborough and East York. Centennial college being one of the most culturally diverse institute represents almost 100 ethno-groups and about 80 and more languages are spoken on campus. Progress campus is one (out of four) of the Centennials largest location. Centennial College supports enrolments of 14,500 full-time students and 25,000 part-time learners annually. Our this location is a most student centric location as there are not many firms or companies around the corner and so our audience are more or less the college students and staff.

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2. Location: George Brown College George Brown, A college community at the heart of Canada's biggest and most exciting city. Currently, there are about 15,000 full-time students, as well as over 60,000 part-time and continuing education students. This college is exactly located on King Street, which is a major east-west commercial thoroughfare in Toronto. In the recent years, this street has become one of the highest populated areas with the entrance of many new restaurants, clubs and galleries. This street has the most number of office towers and so these streets are filled around with working people and professionals. This location gives our food truck a tough competition, as this street has a many small and big restaurants which serve (Chinese, Thai, Italian, and Mexican food etc). 3. Location: Humber College Institute of Technology & Advanced Learning (referred to as Humber). Humber-Lakeshore Campus sits on the quiet shores of Lake Ontario in a park like setting. This college is located in Etobicoke which is one of the densely populated areas. It covers 13% of the Torontos population. This area more or less looks like a small town, with its? Houses and small store around. Our food tuck will not only attract college student and staff but also the residents and the small vendors around the college. Competitors As our business is to cater quality meals to people on wheels, there are other organizations that provide the same service but are not our direct competitors. They serve food or beverages to the public within the campus whereas we serve them outside the campus as take away.

Our indirect close competitors are: Pizza Pizza, Tim Hortons within the campus of Centennial College.
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McDonalds, Subway, Taj Mahal Sweet (Indian restaurant) competitors near the college Subway, Tim Hortons within the George Brown campus. Gabbys, Humber cafeteria, within the campus. Subway, Pizza depot, Bombay by the lake, Pizza and wings located near the campus. Also those restaurants which provide take away food packages. Our direct competitors are caterers who provide quality food at low cost, have been in the business for long and are known for their food supply. We do not face a lot of direct competition as of now, as there are no other food trucks of any the other organization located within or outside these campuses.

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Competitive Analysis

FACTOR Products

Me Provide Indian, Mexican and Thai meals that are cooked by different restaurants.

Direct competitors Provide proper cooked meals. Different caterers specialize in different dishes. These caterers have been in the market from a long time and have established a position because of the quality of food and services they have been providing. The standard price charged by these caterers for the same amount of quantity is twice the price offered by us.

Indirect competitors Provide food that is easy to carry and consume also known as junk food, they do not provide meals. The quality of food offered by these organizations is neither to good nor too bad, as they provide easy consumable food.

Quality

Quality is our main priority. In order to attain customer satisfaction and growth our organization has to concentrate on quality factor.

Price

Our standard price for every meal is $6.50. The quantity offered by us at this price is higher than the proportion.

The price that they offer to their customer is not in proportion to the quantity offered to them. Customers end up paying a high price.

Services

Our service is to supply meals cooked by different restaurants to the customers.

Their service is to provide

Location

Our food trucks will be located outside the college campus.

They are all over Toronto.

These are either located inside or near to the college campus.

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Supply Chain of Foodstop What is Supply Chain management? DEFINITION - Supply chain management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply chain management involves coordinating and integrating these flows both within and among the companies. It is said that the ultimate goal of any effective supply chain management system is to carry minimum inventory (with the assumption that products are available when needed). Design of Supply Chain for Foodstop

Food from restaurants

Food Trucks

Packed food sold near colleges and Downtown area

Foodstops Supply Chain is simple but requires proper handling. It starts from the Food that is supplied by the restaurants. Maintaining the quality and taste of the food is our main goal. Foodstop also needs to have a continuous flow of food from the suppliers. Our main aim is to satisfy the customer, we do not aim at increasing short term profit margins by compromising on quality and other factors.

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Our Suppliers The meals provided by foodstop will be supplied from these restuarants

For Indian cuisine Rangoli 1392 Yonge St (South of St.Clair) Tel: 416-967-4111 www.rangolirestuarant.ca

For Thai cuisine Lees Thai Spring Roll 2976 Lakeshore Blvd. West (At Islington Ave) Tel: 416 252 8868

For Mexican cuisine Dos Amigos 1201 Bathurst Street in downtown Toronto, ON M5R 3H3 Tel: 416 534 2528 http://www.dos-amigos.ca/

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In case of any problem we have sub-suppliers to provide food for our restaurants. This is very important because our entire business is dependent on providing food to the Torontonians and any sort of delay would hinder the business. The following are our subsuppliers who would provide us food in case there is a delay or a breakdown. For Indian cuisine Everest Indian Cuisine 2356 Lakeshore Blvd. West, Etobicoke, ON M8V 1B6 Tel: 416 253 5047 www.everestindiancuisine.com

For Thai cuisine Bua Thai 753 The Queensway, Etobicoke, ON Tel: 647 724 3378

For Mexican Cuisine El Trompo Restaurant 277 Augusta Av. Toronto, ON M5T 2M1 Tel: 416 260 0097 www.eltrompo.ca/

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ZERO Inventories One of the best practices of a well developed Supply Chain is to reduce the inventory. Foodstop need not work on this aspect as our business has ZERO inventories. We get food from the restaurants and directly supply it to the vans. The office that we plan to have is only for purposes like accounts, data handling and operations. Zero inventory level is actually practiced by very few businesses and we are fortunate to be one of them. Out of stock situation In case of out of stock situation, consumers respond in following ways: - They switch stores and buy the item elsewhere - They delay the purchase and buy the item later, at the same store - They substitute the product with another of the same brand, but different size or type - They switch brands altogether - They do not buy the item at all, anywhere To prevent the customers from reacting in the above ways, we communicate regularly with the suppliers because anytime the demand is higher than expected and we do not have enough supply to full fill it we contact our supplier an hour before and he will deliver the food on our respected vans within an hour. As we do not want our customers to wait for the food nor do we want to lose customers we have everything planned to deal effectively with such a situation. We do not want our customers to go home without a good experience. And in this way we will maintain our image in the eyes of the customer. Since our approach is conservative we have a delivery van which will get the food from suppliers and deliver to the food vans in case of any break down from the suppliers end or any other circumstances wherein the supplier is not able to supply the food to our vans.

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Packaging and other materials Packaging as a whole is handled by the restaurants. Materials like tissues, pepper, and salt are all provided again by the restaurants. The cost of all these packaging material is covered in the price of food. We will provide two drinks coke and diet coke along with our meals. We will be buying these drinks from wholesalers in bulk as it will be less expensive for us. The cost of buying these drinks has been added in the meal price. Handling the Food The food will be supplied by the chains of restaurants we are tied up with. To keep the authenticity of the cuisine intact the food will be supplied by different restaurants. Indian food will be provided by an Indian restaurant, Mexican food will come from a Mexican restaurant and same in the case of Thai food. Since the food is pre-packaged, proper measures would be taken to maintain the quality and proper temperature for the food by providing refrigeration and heating facilities. At all the times the person serving the food to the customers will be wearing clean, full length aprons or smocks and a cap or a hair net. Since we are dealing with the takeouts proper use of foil compartments would be done and also proper storage to ensure the hygiene factor. Proper use of utensils like tongs, scoops would be used to serve the food. And also the person would regularly be checked for any communicable disease, or infected wounds. Food Safety Construction Floors should be finished with non-slip waterproof material ideally without joints. The edges should be sealed and rounded to make cleaning easy. Walla and ceilings must be smooth and easily cleaned. Joints must be sealed and kept to minimum. Stainless steel sheeting provides a good surface behind fryers or similar cooking appliances. There should be no ledges and dirt tapes. Bare wooden edges must be sealed.
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The design and construction of the van must prevent access for pests. Any infestation must be dealt with immediately. Water Supply There will be hot and cold water to both wash-hand basin and was-up sinks. Hot water would be around 80 degrees centigrade. At least 5 gallons of cold water and 3 gallons of hot water would be readily available. Water storage containers would be thoroughly rinsed before filling and occasionally cleaned by the use of a suitable disinfectant. Equipment All the equipments would be clean and in a good state of repair. The equipments in the van will be placed or installed in such a manner that the inside of a van is not cramped and can be cleaned easily. Ventilation There will be some form of mechanical ventilation inside the van. Vents discharging heat and fumes should be raised to at least 300mm above the roof and should not let water in. Ceiling vents will allow hot air to escape but wall vents all also required allowing fresh air to enter. The vents will be fly and insect proof. Food handling Open food would be kept off the floor. All open food will be covered. Food will be covered properly with lids that can be washed.

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Fresh food and waste food would be kept apart. No pets or animals would be allowed in the food van. Food will be protected against coughing and sneezing. Wrapping or the packages in which food will be given will be clean and stored in clean shelves. Newspaper will not be used for wrapping food. Temperature Since the food would be pre-cooked directly from the suppliers, it will be kept at or above 63C to ensure the freshness. Hybrid Microwave will be used to heat the food before giving away to the customers. There will be enough storage facility in the van to ensure that the stock is kept and preserved properly. Since the food would be reheated before giving to the customers an internal temperature of 75 C will be maintained to ensure that bacteria are destroyed. General Hygiene Bandages and waterproof plasters must be available at all times. Cleaning will be carried out on a regular basis and thoroughly and always at the end of each working day.

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Organizational Structure What is Organizational Structure? Organizational structure - is the formal system of task and reporting relationships that controls, coordinates, and motivates employees so that they cooperate to achieve an organization's goals. Some of the major advantages of a well designed organization structure are: 1. It encourages employees to work hard and to develop supportive work attitudes 2. Allows people and groups to cooperate and work together effectively.

Foodstops Organizational Structure

Foodstop Partners

Finance Manager

Cashiers, Drivers and Waiters

Operations manager

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Foodstop Partners: Foodstop Partners are people who have made the initial investment in the business. They would distribute the income among the staff first and then the rest among themselves. Partners would get the highest pay and that is because they have taken risk and invested money in Foodstop. They are also the major decision takers of the company.

Finance Manager: The Finance and Payroll would be managed by the Finance manger. He would be operating from the central office. Decisions like cost cutting, investment in technology etc would be taken care by him. He would also update the business heads of the laws and would file income tax for Foodstop.

Operations Manager: Operations Manger takes care of the daily functions of the business. If there is a breakdown in the business, Operations manager is the person who sorts out the problem and get the vans running. Some of the major functions of the Operations are: 1. Supply and delivery 2. Quality management

3. Managing material and employee 4. Equipment maintenance 5. Scheduling and management 6. Analyzing customer trends 7. Regulating the process

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Licensing and Certification License for the Business: FoodStop is a unique concept and business so it has to complete a number of formalities before it hits the road. Some of them include permissions, license, inspections etc. Now license is vital policy which needs to be given due consideration. City of Toronto has a special division which takes care of the Vehicular Businesses Requiring a License. It is called as Municipal Licensing & Standards Division and specifically it has Mobile Business Licensing Issuance Office to take care of our business concept. Mobile Business Licensing Issuance Office (Formerly Taxi Industry Unit) East York Civic Centre 850 Coxwell Avenue Third Floor Toronto, ON M4C 5R1 Food Handlers Certificate:

Other license includes that the food handlers need to pass the FOOD HANDLERS CERTIFICATE PROGRAM. Toronto Public Health offers Food Handler Certification Courses to provide food handlers with the knowledge of safe food handling practices to prevent food-borne illness.

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In June 2006, City Council passed a bylaw requiring Food Handler certification for Food Handlers in the food and beverage industry. Bylaw 678-2006 came into effect on September 1, 2006. The bylaw requires that the owner/operator of food establishments ensure that there is, at all times when the establishment is operating, at least one (1) certified Food Handler working in a supervisory capacity in each area of the premises where food is prepared, processed, served, packaged or stored. Furthermore, every person licensed, or required to be licensed under Municipal Code Chapter 545 Licensing, as a refreshment vehicle owner, operator, driver or assistant shall obtain a Food Handler certificate if such person sells or handles refreshments or is working in a refreshment vehicle from which ice cream, ice cream cones, frozen desserts and other frozen confections are sold. Every person with whom this bylaw applies shall produce for inspection his or her Food Handler certificate along with a photo identification card upon request by City of Toronto Officials. The photo identification card is a valid card integrated with a photograph of the holder of the card and issued by, or under the authority of, the Government of Canada, a Canadian province or territory, a Canadian municipality or the Medical Officer of Health. Certified Food Handlers without government issued photo identification can apply to have their photo on their Food Handler certificate with proof of identity and an additional fee of $5.25 per certificate. Any food premises that do not comply with this bylaw can be subject to further action by Toronto Public Health including issuing tickets and fines. Food Handlers may obtain their certification by one of three ways: Attend the Toronto Public Health Food Handler Certification Program course and pass the written exam at the end of the class; or Study on your own and then write the exam during regularly scheduled exam times; or

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 Attend a Food Handler certification course offered by a private company accredited by Toronto Public Health and then obtain a valid certificate issued by Torontos Medical Officer of Health. To comply with the requirements, one must obtain the certificate by successfully passing an examination from a recognized Food Handler certification course and applying for a Food Handler certificate issued by the Medical Officer of Health of Toronto. Food Handler training programs Course length - six hours of instruction followed by an exam Successfully pass the exam and receive a Food Handler Certificate valid for five years The Food Handler Certificate issued by Toronto Public Health is recognized by the Ontario Ministry of Health and other Health Departments in Ontario. Course instructors are Certified Public Health Inspectors. Attend any course offered in the Toronto area. Topics Role of the Public Health Inspector Public Health Legislation Safe Food Handling, Preparation, and Storage Factors contributing to food-borne illness Food Handler Hygiene Food Premises Sanitation

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Financial Plan

Start-up Cost Requirements Start up Expenses One Time Cost Set up and Installation charges Legal and professional fees Business license and permits One time Training Cost Other Total Start up Assets Required Office Equipments (computer, printer, cell phone, tv and music) Purchase of Equipments (Heating and cooling) Long term Asset - vehicle (4) Total Total Onetime Expense Recurring Expenses Estimated Monthly:
Selling Salaries

Amount ($)

3,000.00 1,500.00 2,200.00 4,000.00 2,000.00 12,700.00 8,000.00 12,000.00 48,000.00 68,000.00 80,700.00

18,000.00

Management Salaries 5,850.00

Rent Marketing and Advertising Insurance ( Health, vehicle, office) Maintenance Additional expenses ( parking) Total Monthly Recurring Expenses Total Yearly Recurring Expenses Total Estimated Start up cost

1,000.00 250.00 1,167.00 2,083.00 1,500.00 29,850.00 3,58,200.00 4,38,900.00

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Sales Forecasting

Year 1 Revenue Gross Sales Number of Customers Avg. Price/meal Total Less- COGS @ $4 TOTAL Income from Advertising Number of Customer Avg. revenue/truck/month - $1500.00 Total Other Income (Internet Ads) Number of clients Avg. cost Total

Q1

Q2

Q3

Q4

Total

38,750.00 $7.00 $2,71,250.00 1,55,000.00 $1,16,250.00

38,750.00 $7.00 $2,71,250.00 1,55,000.00 $1,16,250.00

38,750.00 $7.00 $2,71,250.00 1,55,000.00 $1,16,250.00

38,750.00 $7.00 $2,71,250.00 1,55,000.00 $1,16,250.00

1,55,000.00 $7.00 $10,85,000.00 6,20,000.00 $4,65,000.00

3 $13,500.00 $40,500.00

3 $13,500.00 $40,500.00

3 $13,500.00 $40,500.00

3 $13,500.00 $40,500.00

3 $13,500.00 $1,62,000.00

10 $30.00 $300.00

15 $30.00 $450.00

15 $40.00 $600.00

20 $50.00 $1,000.00

60 $150.00 $2,350.00

TOTAL REVENUE

$6,29,350.00

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Year 2 Revenue Gross Sales Number of Customers Avg. Price/meal Total Less- COGS @ $4 Total Income from Advertising Number of Customer Avg. revenue/truck/month - $ 1500.00 Total Other Income (Internet Ads) Number of clients Avg. cost Total

Q1

Q2

Q3

Q4

Total

38,750.00 $7.00 $2,71,250.00 $1,55,000.00 $1,16,250.00

38,750.00 $7.00 $2,71,250.00 $1,55,000.00 $1,16,250.00

38,750.00 $7.00 $2,71,250.00 $1,55,000.00 $1,16,250.00

38,750.00 $7.00 $2,71,250.00 $1,55,000.00 $1,16,250.00

1,55,000.00 $7.00 $10,85,000.00 $6,20,000.00 $4,65,000.00

5 $13,500.00 $67,500.00

5 $13,500.00 $67,500.00

5 $13,500.00 $67,500.00

5 $13,500.00 $67,500.00

5 $54,000.00 $2,70,000.00

25 $50.00 $1,250.00

25 $50.00 $1,250.00

30 $60.00 $1,800.00

40 $60.00 $2,400.00

120 $220.00 $6,700.00

TOTAL REVENUE

$7,41,700.00

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Year 3 Revenue Gross Sales Number of Customers Avg. Price/meal Total Less- COGS @ $ 4 Total Income from Advertising Number of Customer Avg. revenue/truck/month - $ 1500.00 Total

Q1

Q2

Q3

Q4

Total

38,750.00 $8.00 $3,10,000.00 $1,55,000.00 $1,55,000.00

38,750.00 $8.00 $3,10,000.00 $1,55,000.00 $1,55,000.00

38,750.00 $8.00 $3,10,000.00 $1,55,000.00 $1,55,000.00

38,750.00 $8.00 $3,10,000.00 $1,55,000.00 $1,55,000.00

1,55,000.00 $8.00 $12,40,000.00 $6,20,000.00 $6,20,000.00

6 $13,500.00 $81,000.00

6 $13,500.00 $81,000.00

6 $13,500.00 $81,000.00

6 $13,500.00 $81,000.00

6 $54,000.00 $3,24,000.00

Other Income (Internet Ads) Number of clients Avg. cost Total

40 $50.00 $2,000.00

50 $50.00 $2,500.00

60 $60.00 $3,600.00

70 $60.00 $4,200.00

220 $220.00 $12,300.00

TOTAL REVENUE

$9,56,300.00

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INCOME STATMENT Particulars Sales Less- COGS. Other Income GROSS INCOME Expenses Salaries Wages Marketing & Advertisement Maintenance Rent Utilities Insurance (Health, Office, Vehicles) Depreciation (vehicle) Depreciation (heating appliances) Total NET PROFIT Before Tax Taxes Net profit after tax

2011 10,85,000.00 6,20,000.00 1,64,350.00 $6,29,350.00

2012 10,85,000.00 6,20,000.00 2,76,700.00 $7,41,700.00

2013 12,40,000.00 6,20,000.00 3,36,300.00 $9,56,300.00

70,000.00 1,86,000.00 3,000.00 25,000.00 12,000.00 18,000.00 14,004.00 7,200.00 1,560.00 3,36,764.00 $2,92,586.00 $3,000.00 $2,89,586.00

70,000.00 1,86,000.00 4,000.00 25,000.00 12,000.00 18,000.00 14,004.00 7,200.00 1,560.00 3,37,764.00 $4,03,936.00 $5,000.00 $3,98,936.00

70,000.00 1,86,000.00 5,000.00 25,000.00 12,000.00 18,000.00 14,004.00 7,200.00 1,560.00 3,38,764.00 $6,17,536.00 $7,000.00 $6,10,536.00

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BALANCE SHEET Assets Current assets Cash and Cash equivalents Total Fixed Assets Vehicle (39,000+9,000) Less - Depreciation Total Equipments Less - Depreciation Total

2011

2012

2013

3,38,346.00 3,38,346.00

7,46,042.00 7,46,042.00

13,65,338.00 13,65,338.00

48,000.00 7,200.00 40,800.00 12,000.00 1,560.00 10,440.00

48,000.00 14,400.00 33,600.00 12,000.00 3,120.00 8,880.00

48,000.00 21,600.00 26,400.00 12,000.00 4,680.00 7,320.00

Total TOTAL ASSETS Liabilities Current Liabilities Accounts Payable Total Stock Holder's Equity Paid in CAPITAL ($10,000*5) Earnings Total TOTAL LIABILITIES

51,240.00 3,89,586.00

42,480.00 7,88,522.00

33,720.00 13,99,058.00

50,000.00 50,000.00

50,000.00 50,000.00

50,000.00 50,000.00

50,000.00 2,89,586.00 3,39,586.00 3,89,586.00

50,000.00 6,88,522.00 7,38,522.00 7,88,522.00

50,000.00 12,99,058.00 13,49,058.00 13,99,058.00

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CASH FLOW Operating Activities Cash Inflow Sales Third party Advertising income Adwords Total cash inflow Cash outflow Cost of goods sold Wages Payable Operational Expense Tax Payable Total cash outflow NET CASH FLOW FROM OPERATING ACTIVITY Cash flow from Investing Purchase of long term assetvehicle Purchase of appliances NET CASH FLOW FROM INVESTING ACTIVITY Cash from Financing Acitivity Investment by owners Accounts payable NET CASH FLOW FROM FINANCING ACTIVITY NET CASH FLOW TOTAL CASH BALANCE

2011

2012

2013

10,85,000.00 1,62,000.00 2,350.00 12,49,350.00

10,85,000.00 2,70,000.00 6,700.00 13,61,700.00

12,40,000.00 3,24,000.00 12,300.00 15,76,300.00

6,20,000.00 2,56,000.00 72,004.00 3,000.00 9,51,004.00 2,98,346.00

6,20,000.00 2,56,000.00 73,004.00 5,000.00 9,54,004.00 4,07,696.00

6,20,000.00 2,56,000.00 74,004.00 7,000.00 9,57,004.00 6,19,296.00

48,000.00 12,000.00 60,000.00

50,000.00 50,000.00 1,00,000.00 3,38,346.00 3,38,346.00 4,07,696.00 7,46,042.00 6,19,296.00 13,65,338.00

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Bibliography

http://www.toronto.ca/quality_of_life/universities_colleges.htm http://www.toronto.ca/demographics/profiles_map_and_index.htm http://countryfest.ca/uploads/guidelinesformobilefoodoperations.pdf http://www.imaoutdoor.com/content/view/17/33/ http://www.citypostering.com/campus-postering.shtml http://toronto.olx.ca/on-off-campus-poster-flyer-distribution-iid-59851531 http://www.buzzle.com/articles/increase-sales-with-cost-effective-billboard-advertising.html http://www.restaurantica.com/on/etobicoke/c-thai/ http://www.braintree.gov.uk/Braintree/environment/food/Mobile+Food+Premises.htm

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