BA-101-02 SU 2011 Introduction to Business

Week: 5 Assignment: Operations Plan rough draft Due Wed. July 7/27 by 8 AM
Loretta (Barnhurst) Reed
1 | P a g e

Business Plan
for
Grab-N-Go Snax




I. Tuble of Contents
I. Tuble of Contents....................................................................................................1
II. Executlve Summury..............................................................................................2
III. Quullflcutlons...........................................................................................3
IV. Products und Servlces.........................................................................................3
V. Murketlng Plun.....................................................................................................4
VI. Murket Reseurch..................................................................................................5
VII. Operutlonul Plun................................................................................................6
VIII. Munugement Orgunlzutlon Churt...8
IX. Sturtup Expenses und Cupltullzutlon...............................................................9
X. Source of Sturt-up Funds...................................................................................10
XI. References..................................................................................................11


Owner: Reed Enterprises, LLC
Business Manager: Loretta Reed
Telephone: 503-880-6182
E-mail: haleysc0met@student.clackamas.edu
Address: P.O. Box 40205. Portland, OR 97240
Web address: http://www.grab-n-go-snax.com



II. Executlve Summury & Generul Compuny Descrlptlon
BA-101-02 SU 2011 Introduction to Business
Week: 5 Assignment: Operations Plan rough draft Due Wed. July 7/27 by 8 AM
Loretta (Barnhurst) Reed

2 | P a g e
Grab-N-Go Snax are a selection of prepackaged, single serving snack foods which will be sold out of food
carts conveniently located around the core downtown Portland business district. Our new enterprise
caters to the need for downtown office and business workers to gain quick and easy access to healthy
breakfast, break and lunch snack food options. Grab-N-Go Snax offers a wide selection of high quality
fresh fruits, vegetables, dairy, grain and gluten-free products. Products are cleaned, cut, portioned,
packaged in re-sealable recyclable packaging and refrigerated for immediate consumption. To augment
our name brand product selection, well offer a variety of products in this category offered by other
name brand companies, such as granola bars, trail mix, bottled water, fruit juices and energy drinks.

To start, activities of the business will include stationary food cart vending in the high activity food cart
vending groups, called PODS. Supplemental activities of the business will be to participate in special
events vending. Special events include city wide water front events, Saturday Market, sporting events
and holiday celebration activities.

In a preparation area that will be set up for processing, packaging, and storing food products, work will
be done each day to prepare products for delivery. Products for the days sales will be transported in
refrigerated storage containers to the food carts early each morning. Vendor services will stock their
carts and displays in preparation of opening for business.

Customers and passer-bys will notice the brightly lit awning, colorful displays, smells of fresh fruit and
sounds of nature in a clean environment open early in the morning for their convenience. They will see a
wide selection of food items for breakfast, or to eat later for workday snacks. Customers can grab items
for purchase for themselves from the on-board displays or refrigerated cases. Vendor services will scan
the UPC codes and processes the sale quickly via POS system.

For the future of the business, it is our plan to promote the sale of our own Grab-N-Go Snax name brand
product selection through refrigerated vending machines, fitness health clubs and in-office delivery. Our
catering services will accommodate the need for refreshments during company meetings and parties to
businesses in and around the core downtown area.

Our goal is to develop a strong business model, brand name and reputation so that as the business
continues to grow into other locations and communities, becoming more recognizable, we can develop
Grab-N-Go Snax into an operation that can be franchised. We like the flexibility a LLC provides to allow
the option to hire professional management that would not necessarily be owners. This would allow us
to offer employees (potential new franchisees) the opportunity to learn the ropes of the business and
experience what it might be like to operate their own Grab-N-Go Snax food cart before they make the
decision to invest in our business as a franchisee.

BA-101-02 SU 2011 Introduction to Business
Week: 5 Assignment: Operations Plan rough draft Due Wed. July 7/27 by 8 AM
Loretta (Barnhurst) Reed

3 | P a g e
III. Quullflcutlons
My background of working downtown Portland for the past 30 years and being a customer of a lot of the
food carts in the downtown area has provided me with the drive to make this unique business concept a
true success story among the growing trend of food carts here. I have worked as Administrative
Assistant to Directors of companies and Project Manager and coordinator for projects that required
budgeting, multi-tasking and attention to detail. My strengths are with organization, human relations,
patience and dedication. Besides devoting a lot of my own funds that will go into this venture that I
believe in, I will be committing a lot of my time and energy to making sure every aspect of the business
operational needs are met to meet the customer demands. Outside of the day to day product
preparation, on-site vending and management of business affairs, I will be networking and connecting
with other Administrative Assistants, Event and Meeting Planners and with businesses in the downtown
area to sell our in-office delivery and catering services.

IV. Products und Servlces
Products: See Appendix A (not included in this document) for examples of wholesale costs and
pricing comparisons of local retail & grocery store competition.
Fruits: apples, bananas, oranges, grapes, grapefruit, melons, cherries, berries,
Vegetables: carrots, celery, cauliflower, broccoli,
Nuts: almonds, peanuts, cashews, walnuts, soy, trail mix, granola mix
Dairy: milk, yogurt, cheese sticks, pudding, vegetable dips
Beverages: water, vitamin water, sports drink, fruit drinks, fruit juices, vegetable juices, dairy
drinks, fruit smoothies,
Products will be displayed in a highly lit environment while activating physical senses. (e.g. sight-
lighting of colors & textures; sound-background musical sounds of fresh water falls, breezes, birds ,
etc; smell-odors from fresh fruit juices)
Services:
Parked truck/trailer: Daily on-the-street vending.
Mobile truck/trailer: Special events vending - fairs, markets, entertainment venues, promotional
events, sports events,
Catering: Regularly scheduled in-office supply replenishment, meeting room delivery.
Customer service is highlighted with a smile, cheerful attitude, immediate attention to the
customers inquiries, recommendations for specials and new products, appreciation for their
business and request for feedback via our web page.
These items are offered fresh, dried and refrigerated from early in the morning, to catch people before
work and school, to late afternoon. Products are intended to fulfill the desires of those seeking healthy
and nutritional breakfast, pre-lunch, lunch and post lunch time snack options. Snacks and drink items
represent alternatives to those high in sugar, fat, cholesterol, caffeine or carbonation.
Grab-N-Go Snax objective is to promote the image of providing high quality healthy snack food options,
quick and easy to obtain with freshness guaranteed. Products being offered will be healthy, pre-
packaged, single serving, ready-to-eat snacks and drink items.
BA-101-02 SU 2011 Introduction to Business
Week: 5 Assignment: Operations Plan rough draft Due Wed. July 7/27 by 8 AM
Loretta (Barnhurst) Reed

4 | P a g e
V. Murketlng Plun
Currently the food cart business is growing and thriving in the downtown Portland area. Owners of parking
lots and open spaces are looking to expand and convert available space for this business use because of the
increase in space revenue and the ease of which the city has made it a viable optional use of their property.
Because of the local and nationwide publicity for many of the local food cart businesses, more downtown
workers and visitors to the downtown area now consider experiencing a food cart meal.
The advantage of Grab-N-Go-Snax is that there are a lot of busy downtown workers who do not tend to eat
breakfast, they dont remember to purchase snack items in advance, do not remember to bring them to work
when they do, and when they do want a snack for a break, do not have a lot of healthy snack options
convenient for them to choose from. Busy professionals know they want and need to move towards healthier
food selections, but need convenience and speed of ownership to change their current habits. They need a
place close by their work for that quick turn-around time during a break or before they enter their office
building in the morning.
Promotional objective will be to change downtown workers behavior, not only around the kind of snack
foods they do select, but actually adding the activity of taking time in the morning and during breaks to
include snacks for nutritional and health reasons. Within the promotion is the message of how quick and
easy it is to obtain a selection of quality healthy snack foods. I want our customers to see the convenience
and ease of taking a new step that contributes to their health and well being.
I plan to communicate this message with colorful unique signage outside the food cart to grab attention with
matching post card size business cards. I have also planned to promote the cart through the nearby business
office building tenant newsletters, providing coupons and a drawing with on-line website registration. The
purposes of the registration and drawing would be for obtaining e-mail addresses for on-going
communication and promotions. There will be bonuses and discounts offered for frequent customers. I will
be listed in the website created to promote Portlands food cart businesses www.foodcartsportland.com and
I will create a press release with a twist on the food cart business. The purposes of the press release will be to
create a buzz around the food cart concept not only in the local market, but nationally in order to get free
press stories and media attention.

Plan for success: I plan to expand the business by offering products and services for catering to the
downtown business offices. I also plan to make consignment agreements to sell product through the local
fitness health clubs, whose customers workout early in the morning, on breaks and through their lunch hour.
I will be expanding the business to include personnel needed for developing orders, product preparation and
delivery. I will promote the catering side of the business by selling face to face to the local business office
administrative staff, typically responsible for making in-office food arrangements for meetings, parties and
for employee benefit.
Customers
Our customers are middle class, educated at or above a high school education, mostly white, men & women
that work, play and go to school in the downtown Portland area, though most do not live in the downtown
area. For lunch, most all of our customers walk within a one to 3 block radius of a group of food carts called
pods. The majority of these target customers ages range from their mid 20s to their mid 50s, most of
which are already getting messages of healthy eating and control of obesity from multiple media sources as
well as their employers health benefit provider. From my experience and relationships with colleagues that
work downtown, they lead extremely busy and sometimes stressful lives at work, try to work out to stay fit
when they can and dont always eat right or as often as they should. From my visual survey of workers
entering offices in the morning and exiting during breaks and lunch hours, very few bring food from home.
BA-101-02 SU 2011 Introduction to Business
Week: 5 Assignment: Operations Plan rough draft Due Wed. July 7/27 by 8 AM
Loretta (Barnhurst) Reed

5 | P a g e
VI. Murket Reseurch
Competition
From my visual survey of existing food carts in both the high density target markets, there is no other food
cart offering fresh, healthy, pre-packaged, single serving, ready-to-eat snacks and drink items. Since I will be
offering more nutritional beverage options consistently at a lower price, I will also be targeting to gain their
lunch hour beverage business, even though they may be purchasing their lunch food at a food cart nearby.
This strategy will also serve to allow customers to view all the snack options available for their future
consideration.
Pricing
Our pricing objective is to beat everyones price on beverages and be competitively priced on like items
offered at other food cart vendors and local corner convenience stores nearby. The more desirable items,
pre-packaged mixed product sets and items not offered elsewhere is where I will make a higher profit
margin.
Using a Loss Leader strategy Beverages will be offered at lower prices consistently every day. This will
ensure the customer remembers that the place to always get a great price on healthy beverages is specifically
at our food cart.
For specific like items that can be found at in-office building vending machines and indoor convenience
stores nearby, we will set our price lower than the indoor store to encourage customers to venture outside of
the building for the savings.
Prices on identical food items that can be found at the customers local supermarket outside the downtown
area will be priced higher for the benefit of convenience and freshness. Based on research of urban grocery
store pricing, we expect to be able to set our product prices at least 20% above what customers would pay
outside the downtown Portland center.
Distribution
Our distribution objective is to be situated where there is the highest density of daytime office workers in the
downtown Portland market, close to other businesses that customer frequent. Currently the two desirable
pods (groupings of food carts) are located on SW 5
th
Avenue near Stark and around the block of SW 10
th

Avenue and Alder for their proximity to high density population of workers. (12/13)
Being located at either the 5
th
Avenue or 10
th
Avenue pods would be most desirable because of the foot
traffic from the surrounding businesses and transit mall. From my visual count, there averaged 100 165
people on one side of one block throughout the 12:00 to 1:00 hour being served by 13 to 15 trailers per block
length. During their lunch hour, most customers are drawn to the area because of the variety in choices of
food from the high density of food carts. These two food cart groupings are close to our customers offices
and on their way to and from transportation options. (parking garages, Max train, Tri-met buses, etc.)
Because both pods are located within parking lots, there is a lot of flexibility for delivery of goods and
situation of the trailers.
When the weather is wet or windy, being located outside office building retail space, is not as convenient,
but does reach more customers from a variety of businesses all around the pod. If it is possible, it is our goal
to incorporate clean solar energy as part of our uniquely designed cart to be able to operate at special events
where electricity may not be conveniently located or expensive to purchase.
BA-101-02 SU 2011 Introduction to Business
Week: 5 Assignment: Operations Plan rough draft Due Wed. July 7/27 by 8 AM
Loretta (Barnhurst) Reed

6 | P a g e

VII. Operutlonul Plun
We have selected to start the business with a fresh new trailer concept, rather than take over an
existing business or invest in someone elses franchise. Our food cart and catering operations have many
elements that are not currently offered from any food cart currently in the Portland markets.

Physical Resource Requirements:

Business Office:
Office and production spaces
Government licenses & permits
Business insurance policy
Computer/printer with business software
Business telephone, directory listings
Marketing media supplies

Food Preparation area:
Refrigerated storage unit with racks/shelving
Transport supply containers
Sink/drain
Hand sanitizer/wipes/towels
Food scale
Can opener
Work table
Utensils: knives, peelers, slicers
Cutting board
Food handling gloves
Surface cleaning supplies
Packaging supplies (trays, wraps, tapes, boxes,
sheets, containers, moisture sheets)
Label paper stock
UPC label maker

Vending Area:
Trailer Transport costs
Monthly rental for location of trailer
Short term auto parking for load/unload
Trailer with hitch (new or used)
Wheel locking and Stabilization system (Jacks)
Door locks, keys, and security chain for trailer
Refrigerated lockers and display bins/cases
Ice maker machine
Generator/backup battery
Data/internet service plan
P.O.S. System: (UPC scanner, Credit/debit card
reader, Cash register)
Product description and price displays
Vending racks and baskets
Lighting and sound systems
Air freshener dispenser and scent supplies
Anti-fatigue mat
Food handling gloves
Napkins and dispenser
Plastic utensils and containers
Waste container and bags
Cleaning supplies
Sidewalk A frame signage
Trailer sideboard and rooftop signage
BA-101-02 SU 2011 Business Plan Project - Grab-N-Go Snax
Loretta Reed
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Human Resource Requirements
Annual estimated employment costs includes factors for Social Security, Medicare, Workers
Compensation and Unemployment Insurance required by law. No health benefits offered at this time.
For our new food cart business, my partner and I will be providing the initial labor force and
management for the operations of the business until business necessitates expanding our workforce to
support the demand.
CEO Business Manager a.k.a. Marketing & Sales/Financial & Accounting Manager: Beginning salary
base $24,000.00 annually + vacation/sick leave days, + phone, parking and mileage reimbursement.
Bonus 25% net quarterly profit.
Annual cost: $30,000.00 + bonuses (unknown)
Direct, oversee and responsible for final decisions for overall business activities
Use business system software to manage financial, accounting and payroll
Sign checks for purchase orders, payroll, taxes and fees
Develop catering & special events business opportunities
Negotiate and plan for commercial vending orders
Oversee collection of vending receipts, order payments and deposits.
Work closely with Operations Manager; providing sales forecasting and catering order
requirements

COO - Operations Manager a.k.a Human Resources Manager: (to be filled by Business Manager until
such time profitability allows jobs to be split)
Make decisions for locations, processing facility & food cart layouts, and servicescape elements.
Plan, organize and implement processes and procedures for material handling, production and
delivery
Negotiate pricing agreements and contracts with suppliers, wholesalers, distributors and
storage.
Purchasing - purchase orders for raw materials, equipment and supplies
Inventory Management & Quality Control - Determine quantity and quality of food to be
purchased.
Inventory Control Determine/manage optimal amount of raw/finished goods held in inventory
Inspect food and packaging from suppliers and Food Services, prior to processing/vending.
Responsible for item returns to suppliers and customer replacement, guarantee satisfaction
Implement and manage continuous process, lean and quality improvements programs
Use business system software to manage work schedules, time reporting, orders and inventory
Human Resources; Recruitment, training, supervision and management of Food and Vendor
Service employees (allocate and divert manpower where/when needed.)
Monitor business activities and take action to ensure product delivery remains on schedule and
customers needs are met.
Work closely with Business/Marketing/Financial Manager; providing implementation plans,
status updates, feedback, inventory and sales reports

BA-101-02 SU 2011 Business Plan Project - Grab-N-Go Snax
Loretta Reed
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Food Services: One part-time - Wages $8.50 hr + vac/sick days, +mileage, parking & phone
reimbursement
Annual cost employee: $15,000.00
Process food items (wash, cut, slice, peel) for single serving, pre-packaged mixed packs
Package and label food items for sale.
Clean Food Services and preparation area, disposes of waste
Fill daily product supply containers for the next day
Pick up and deliver product to/from storage unit/trailer
Conduct inventory of daily product supply going out and coming back in to storage unit

Retail Vendor Services: One full-time & one part time (as needed for special events and break fill ins)
Wages $8.50 hr. +Bonus (commission on daily receipts) +tips, + vac/sick days, + phone reimbursement
Annual cost 1 employees: $45,000.00 (includes estimated bonuses of 9,000.00)
Open trailer and startup systems: Lights, sound, refrigeration, ice maker, generator, POS,
Stock/replenish refrigerated lockers/product displays, confirm delivery and return supply
inventory
Greet, promote products/catering services and thank customers for their business
Scan UPC product labels, bag order and collect/process customer payment.
Balance transactions and receipts at the end of each shift
Shut down systems and lock up trailer.
VIII. Munugement Orgunlzutlonul Churt
Business Manager
|---- Marketing & Sales Manager
|---- Accounting & Finance Manager
|---- Operations & Human Resources Manager
|---- Food Services
|---- Retail Vendor Services
|---- Catering Services

We will be establishing a Limited Liability Company as co-owners. Though we have three highly
experienced business entrepreneurs consulting us, conducting the business ownership as a LLC will
allow us to have the independence, flexibility and control to operate the business the way we envision it
and to be able to make adjustments quickly as changes in the marketplace arise without consuming
time, processing decisions through a board of directors. As a LLC, the company would be subject to
fewer regulations and would be taxed similar to a partnership, avoiding double taxation on us as owners
taking an income from the business, without risking our own personal finances outside the initial
investment. (1)
BA-101-02 SU 2011 Business Plan Project - Grab-N-Go Snax
Loretta Reed
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IX. Sturtup Expenses und Cupltullzutlon
Grab-N-Go Snax
Monthly
Expenses
Start-up
Expenses
Business Office:

Rent for office and production spaces $200

Business license & governmental permits / Multnomah Co.

(3) $500
Business insurance policy $150

Computer and printer with MS Office, business software Used, from owner
Business telephone service, cell phone $35 $200
Marketing media supplies: business cards, catering brochures

$500
Directory listings and advertising $200

Web page design and host server fees for catering business $20 $200
Merchant account and processing fees (9) $220 (9) $50
Wages for Business Manager & 2 service workers $5,500


Food Preparation area:

Refrigerated storage unit with racks/shelving

$2,000
Refrigerated supply containers for transport/delivery

$1,200
Work table with sink/faucet

$600
Food scale & Ice bucket

$125
Utensils, cutting board, can opener, knives, peelers, slicers

$200
Vacuum packer and supplies

$500
Initial packaging supplies

$300
Surface cleaning & sanitation supplies (vendor also)

$200
UPC label maker & paper stock

(9) $410



Vending Area:

Trailer Transport costs

$200
Monthly rental for location of trailer (8) $550

Short term auto parking for load/unload (8) $210

Trailer with hitch with security & stabilization system

(7) $15,000
Refrigerated lockers and display bins/cases

$1,600
Ice maker machine

$200
Generator/backup battery

$400
P.O.S. System Software

(9) $1,500
PC CPU and monitor for POS Used, from owner
UPC scanner, card reader, register, pin pad, receipt paper (9) Free w/merchant acct
Data/internet service plan $30

Vending racks, baskets and displays

$200
Lighting and sound systems

$400
Anti-fatigue mats

$135
Customer supplies: Napkins, dispenser, Plastic utensils

$100
Marketing signage: street, trailer, building

$600
Totals $7,115 $27,320

BA-101-02 SU 2011 Business Plan Project - Grab-N-Go Snax
Loretta Reed
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X. Source of Sturt up Funds
1. $ 15,000.00 Loretta Reed - Personal savings for 75% ownership in the business.
2. $ 5,000.00 Carley Reed - Partner/Daughter/Employee- Personal savings for 25% ownership in
the business.
3. $ 5,000.00 - Private family loan negotiated @ 10 % interest rate.
4. $ 10,000.00 - $15,000.00 Secured Bank Loan to purchase trailer and make modifications for food
cart operation. Banks Collateral - Trailer, business owned equipment, promissory note from
Loretta Reed.
It is important to have adequate funds available to start the business complete with clean
equipment and good working systems. The initial opening of the business will present a good
impression and positive experience that will stay with customers from the first time they encounter
the Grab-N-Go Snax food cart.
Capital funds will be used to pay the above monthly and start up expenses. As the business begins to
generate revenues from the sale of products, regular negotiated monthly payments will be made
on-time 1
st
to the bank, 2
nd
to property management for space rental and utilities 3
rd
to service
providers, 4
th
on the family loan and 5
th
on staff wages. Since I and my daughter are the initial staff
working the business, if there is a short fall, we are prepared to allow the business to delay wages
until funds can be available.
S.W.O.T. Analysis

Potential Internal Strengths Potential External Opportunities
Low level training and experienced workforce required Increase in traveling visitors to downtown
Product capacity spread outside peak hours Publicity - New media attention and focus on food vendors
Positive Image of health and wellness Increase in downtown community activities
Low overhead Products promoted by Health Experts
High quality products Health Club networks for distribution channel
Attractive product mix/selection Refrigerated vending machines for distribution channel
Fast to implement innovation and change
Incentives to motivate sales
Potential Internal Weaknesses Potential External Threats
Debt ratio high during startup Weather - reduced business on rainy/cold days
Low initial return on investment Economic recession- cut back on spending
Poor initial location availability Increased competition in category
Inadequate financial Resources Increased city/government regulations
Working alone with no immediate back up
Perishable products


BA-101-02 SU 2011 Business Plan Project - Grab-N-Go Snax
Loretta Reed
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XI. References for reseurch
1. Textbook: BUSN3 Student Edition Kelly/McGowen
2. SCORE: Startup Business Plan http://www.score.org/resources/business-plan-startup-pdf
3. Multnomah County Plan Review & Fee schedule: http://web.multco.us/health/food-carts-
mobile-food-units
4. State of Oregon Mobile Food Unit general requirements:
http://arcweb.sos.state.or.us/pages/rules/oars_300/oar_333/333_162.html
5. Sherry McDonald, owner/operator of food cart located at Morrison Street pod.
6. Tamara Dennis, friend and fellow entrepreneur Provided examples from her experience
7. Manufacturer: Northwest Mobile Kitchens http://northwestmobilekitchens.com/food-cart
8. Pavel Parking Property Management 503-853-2549 (operators of the Morrison Street Pod)
9. Intuit Business Enterprise software and Point of Sale Systems www.intuit.com
10. A Guide to Food Carts in Portland www.foodcartsportland.com
11. Book: Cartopia: Portland's Food Cart Revolution available at Powells Books for $25.
12. Maps to Portland Food carts and categories: http://www.foodcartsportland.com/maps/
13. Google Maps and listings of Portland Food Carts:
http://maps.google.com/maps/ms?ie=UTF8&hl=en&msa=0&msid=102083663940634579118.00
047d50e37ba179a1eac&ll=45.540022,-
122.68055&spn=0.084163,0.145912&z=12&source=embed