Coe, Nguyen, Pelcastre, Phoeun 1

Business Plan
11/20/2013

Contact Information:
FASTANDFRUITIEST@GMAIL.COM
WWW.FASTANDFRUITIEST.COM

Chandinet Phoeun
Ana Pelcastre
Hannah Coe
Annalie Nguyen

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1. Table of Contents
2. Executive Summary
2.1 Business Opportunity
2.2 Product/Service Description
2.3 Current Business Position
2.4 Financial Potential
3. Business Description & Vision..
3.1 Company Background
3.2 Company Mission and Vision
3.3 Business Description
3.4 Current Position and Business Objective
4. Definition of the Market.
4.1 Industry Definition
4.2 Primary Competition
4.3 Market Size
4.4 Market Growth
4.5 Customer Profile
5. Description of Products and Services
5.1 Product Overview
5.2 Suppliers
5.3 Competitivity
6. Ownership, Organization & Management
6.1 Ownership
6.2 Organization Structure
6.3 Business Management
6.4 Business Licenses
7. Marketing and Sales Strategy.
7.1Business Goal
7.2 Competitive Advantage
7.3 Pricing
7.4 Distribution Channels
7.5 Promotion Plan
7.6 Feedback
8. Operating Plan.
8.1 Location
8.2 Facility and Operating Equipment
8.3 Hours of Operation
8.4 Suppliers and Vendors
8.5 Operating Table
9. Financial Management
9.1 Financial Assumption
9.2 Project Balance Sheet
9.3 Project Income Statement
9.4 Project Cash Flow
10. Appendices..

pg. 3

pg. 4

pg. 6

pg. 9

pg. 10

pg. 12

pg. 15

pg. 17

pg. 23

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2. Executive Summary
Fast and Fruitiest is a food truck business that aims to promote healthy eating through
preparation of healthy fruits and vegetables smoothies. Our company is unique because we are
provide healthy smoothies with quick and easy access. We supports sustainability and our local
economy by buying fresh ingredients from local farmers daily.
2.1 Business Opportunity
The interest for organic and local foods is one of the latest food trends in the food
industry. Under this umbrella we find organic smoothies as one of the most demanding organic
products in the industry due to their versatility and convenience. Also, according to statistics the
popularity in organic products will continue to grow, outpacing the growth of conventional foods
in the US by 2015.
2.2 Product/Service Description
Our company sells fruit and vegetable smoothies from fresh ingredients, made only once
ordered and quickly produced for our busy customers. Our selection of fruits and vegetables are
organically grown in San Diego, and we are proud to support our local economy. And with our
food truck times and locations posted on the company website and other social media outlets,
customers can always know where well be for their convenience and the best service.
2.3 Current Business Position
As of November 2013, Fast and Fruitiest owns one food truck, a warehouse for inventory.
Our primary method of advertisement and promotion is through social media and word of mouth
thus allowing us to lower the cost of advertisement. Through this link we can also get instant
customer feedbacks to ensure the greatest customer services and a fluid and open dialogue with
consumers.
2.4 Financial Potential
In our assumption of first year of business, we have already begin to make a low net
income and profit. Our goals as a company are to purchase a second food truck within the next
three years, to later expand our business to neighboring cities in Southern California, and to
increase net profits and make our company grow.

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3. Business Description and Vision

3.1 Company background
Fast and Fruitiest is an up and coming business that promotes healthy eating through
preparation of healthy fruits and vegetables smoothies. Our company is unique in that it utilizes
food truck which provides quick and easy access to customers. We take pride in our commitment
in using the freshest ingredients from local farmers that supports sustainability and local
economy. We are looking to expand our business by increasing the numbers of healthy food
choices from the college area to local San Diego.
3.2 Company Mission and Vision
Our Company mission is to promote healthy smoothies choices throughout San Diego
county and increase accessibility of affordable healthy foods. Our company vision is to expand
our food truck business in order to provide customers with high quality and nutritious smoothies
with affordable and quick delivery. In order to achieve that, our products will be mainly made
with fresh and seasonal locally grown products from local farmers market.
Fast and Fruitiests mission statement is:
Fast and Fruitiest guarantees to provide healthy smoothies choices to all consumers
with reasonable and affordable prices.We aim to meet the needs of our wide consumer
demographic from across San Diego with the best customer service and the freshest and most
nutritious ingredients, grown locally and organic.
3.3 Business description:
Fast and Fruitiest was established in September 2012 under the partnership of four SDSU
nutrition students. We started as a vendor at the San Diego State farmers market on Thursdays.
Due to the high demand, we decided to expand our business into a smoothies food truck
business, to increase accessibility to greater portions of San Diego, providing fresh and healthy
food to the community. Our smoothies truck will be moving to different location throughout San
Diego in order to offer healthier smoothies choices to people. Fast and Fruitiest smoothies will
offered reasonable and affordable prices to consumers. Fast and Fruitiest will also follow the
food safety rules and maintain environmental conscious in order to promote sustainability.
There are many food trucks in San Diego, but few specialize in healthy foods, and none
currently concentrates in smoothies and healthy beverages (13). That is why we create our fruit
smoothies truck to deliver another healthy option to our San Diego community. Fast and Fruitiest
strives to create accessible and convenient healthy juices to expand our services out to all of San
Diego while supporting local farmers and local businesses.

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3.4 Current position and Business objective:

Fast and Fruitiest is currently at its starting phrase in business. Under our partnership
organization, we were able to gained profits while selling smoothies at the San Diego State
University Farmers Market and we were able to invest on a food truck to further our business to
the San Diego community.
Our business objective is to expand our one food truck to two food trucks in the next
three years, and by our third year of operation Fast and Fruitiest would like to expand our
business to other major cities in southern California such as Los Angeles, San Jose, Santa
Barbara and beyond.

4. Definition of the Market

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In the last several years, the interest on eating healthy has been growing rapidly. Also the
farm to table philosophy has achieved greater popularity among younger generations in the US
society (1). More people ages 19 to 36 are interested now on eating healthy and safe foods. The
City of San Diego is not left behind as there has been an increase in local restaurants adding
healthier options to their menus including organic entrees (2). However, even though San Diego
has upscale in healthier food options, there has been little to none on the promotion of healthier
beverages. San Diego has one of the largest niches for the organic food market including
smoothies because the majority of the population is between ages 25 to 34 years old (3) one of
the strongest driving force for this type of market (4).
Another problem is accessibility because these foods are mainly available in stationary
locations such as restaurants, retail stores or Farmers Markets. Further more, the food truck
industry in the city is not meeting this need as there is not currently food trucks that specialize in
healthy beverages. Therefore, our company Fast and Fruitiest will take advantage of this interest
and will specialize in nutritious organic smoothies using food trucks to target the healthenvironment conscious population of local colleges and the San Diego community.
4.1 Industry Definition
For almost twenty years we have seen a dramatic increase in the demand for organic
foods. The US organic production doubled in quantity and the consumer market increased at a
faster rate for the last seven years (4). Also According to the Organic Trade Association, organic
food and beverage sales in the US grew from $1 billion in 1990 to $26.7 billion in 2010.
Regarding organic smoothies, there was a 74% increase during the past five years making
them one of the most demanding organic products in the market. The top drivers of these
beverages were health concern and interest in consuming more nutrients (5). Other favorite and
leading foods included vegetables and fruits with a demand of 54% and 34% respectively (6).
Also according to experts in the beverage industry, smoothies are high margin drinks
that can give profits a boost due to their versatility and are a perfect fit for those who are always
on the rush. The latter, being one of the characteristics of Fast and Fruitiest targeted Market.
In addition, growth of organic foods for the next two years are promising with projected
sales of more than double by 2015, outpacing growth of conventional foods in the US (7).
4.2 Primary competitors
There are about eighty food trucks operating in the City of San Diego. Of them about
fifty are in the Gourmet food industry and a very small number (13) specializes in beverages
such as coffee and tea. Currently there is not food truck specializing in fresh nutritious
smoothies. This will open doors to our company to grow in popularity and take the lead in the
region.
Also taking into account the smoothie industry in the entire region of San Diego, our

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main competition will be stationary restaurants such as Jamba Juice which also serves part of our
target market. However, there are only 17 restaurants distributed throughout the county and as of
today, they dont include local organic products on their menu (8). Other competition of less
concern includes fast food restaurants which only very few non-organic smoothie options (9).
The competition on universities and colleges will include Juice it up located at SDSU and
Jamba Juice at UCSD. Schools such as CSU San Marcos and community colleges dont have any
smoothie restaurant on their campus. The same situation is similar to other Universities and
junior colleges that may or may not have smoothie restaurants in their institutions. However, as
mentioned before, these restaurants are only found in the food court of the campuses which will
make it easier for Fast and Fruitiest to target students outside the food court.
4.3 Market Size
The population of San Diego is approximately 1.37 Million. Of this number, about 18%
are people between ages 20 to 24 years old. The largest population group however is people ages
25 to 34 years old with about 35%. Adding these two groups together, we can say that a little
more than half the population in San Diego is between ages 20 to 34 years old.
San Diego is also home to 18 major Universities and junior colleges. Further more, San
Diego is also considered the number one county in the state of California with the highest
number in organic farms (10). The organic local produce gross sales were of 28.6% Millions in
2011 (11).
4.4 Market Growth
The city of San Diego possesses all the right qualities for Fast and Fruitiest to grow. For
example, there are a vast number of local organic farms which will make it very easy for us to
procure all the fruits and vegetable we need without difficulty. It will also allow us to bargain and
lower our expenses in food. The target market is more than ideal, since over 50% of the
population is considered the millennium generation; the generation who is actually interested in
healthy and safe foods (3). Also our competition will mainly consist of stationary restaurants but
we dont expect that to be a problem since we will have the privilege to drive around the city and
reach out to our target market. Taking into account this information and the managementnutrition expertise of the owners, we expect Fast and Fruitiest to potentially grow to $191,305 in
profits by its third year of operation.
4.5 Customer Profile
Although Fast and Fruitiest wont make discrimination among customers, the niche
market will be the health-environment conscious population. The key features of this market are
mainly people in the millennium generation who in most of the cases posses a higher education
degree. They seek natural, organic and unmodified products. They avoid chemicals or pesticides

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that can harm their health or the planet. They expect truthful information and often reward the
company for using sustainable methods by willing to pay at premium. They are also looking for
convenience and want to know the source of the food. Ultimately, they feel that by buying
environmentally-friendly products they become healthier and are also making a difference in the
world (12).

5. Description of Products and Services

Fast and Fruitiest specializes in fruit and vegetable smoothies as our main products.

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These smoothies are hand-crafted from fresh local ingredients, and are prepared as soon as they
are ordered, not beforehand. Our smoothie selection includes: strawberry, peach, mango, berries,
vegetables, and seasonal items such as pumpkin smoothies in the fall and peppermint smoothies
in the winter. Along with smoothies, our food service also sells fresh organic whole fruits, such
as individual apples to customers at affordable pricing.
5.1 Product Overview:
Strawberry Smoothie: This smoothie is a simple and sweet treat, just fresh strawberries and
water go into this basic and inexpensive beverage.
Pineapple Mango Smoothie: This smoothie is a blend of pineapple and mango make for a
nutritious and delicious exotic taste.
Berry Smoothie: Blackberries, raspberries and strawberries are used for this fun and tasty
smoothie.
Fruit and Vegetable Smoothie: For a meal that gets you your servings of both food groups, go for
the fruit and vegetable smoothie, made with fresh vegetables like carrots, tomatoes and
avocados, and fruits like mangos, oranges and pineapples.
Fresh Apples: Locally grown red delicious apples are also for individual sale and make a quick
inexpensive snack.
See Appendix A for more details on pricing.
5.2 Suppliers:
One of the goals of our company is to support locally grown organic suppliers. This is
why we have chosen Moceri Produce, based here in San Diego, as our main product supplier.
They have flexible delivery and a wide product range, a necessity for the ever-changing needs of
our food trucks.
5.3 Competitivity:
Our company is competitively viable for a number of reasons. For one, Fast and Fruitiest
is the only food truck in San Diego that specializes in smoothies. Because of this, there is little
competition with other food trucks for our niche market. And to compete against other smoothie
companies, our food trucks will reach markets inaccessible by stationary smoothie shops. Our
increased mobility allows for greater and more convenient access to customers all over San
Diego.

6. Ownership, Organization, and Management

6.1 Ownership:

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Fast and Fruitiest will be owned by four nutrition students: Annalie Nguyen, Hannah
Coe, Chandinet Phoeun, and Ana Pelcastre. They were all graduation students from the Nutrition
program at San Diego State University. Thus, all were able to understanding the value of
nutrition, and allowing greater advance in developing healthier smoothie choices to introduce to
consumers.
6.2 Organization Structure:
Fast and Fruitiest operated under the equal partnership. In which all four holders: Ms.
Nguyen, Ms. Phoeun, Ms. Coe, and Ms. Pelcastre share equal power in controlling and operating
the business. They all have invested the same amount of money into the business so all
shareholders decided to share equal partnership in the operation. Based on the voting system and
personal strong point, all holders agreed that all four partners would hold different positions in
the business but remain equally in power. Ms. Chandinet Phoeun, Ms. Ana Pelcastre, Ms.
Hannah Coe and Ms. Annalie Nguyen are all going to be the managers in different department in
the business. However, all decisions will be base on the voting system that must be agreeable by
all four partners or by the mass choices.
Fast and Fruitiest is only at its starting phrase of business so hiring other employees
would not be considerable smart for our budget and should be minimize. Therefore, all business
with the food truck will be divide among the four partners. Monthly schedules will be developing
to allow all four partners to participate. The food truck business needs one to two partners
everyday to help produce the products as well as serving customers. There will be two workers
during peak hours and one worker during normal hours. So the four partners will work
exchangeable equally throughout the week following the fix monthly schedule. Each partner will
be responsible for three working days a week and thus remain as part-time employees .
6.3 Business Management:
All Fast and Fruitiest partners are all majored in nutrition and are considerate to be an
expert in nutrition and health aspect. Therefore, all management positions in the business are
decided based on the vote of each partners and also based on their own personal skills.
Hannah Coe will be responsible for managing inventory supply for the business. Any
transitions between the suppliers, such as farmer markers, will be with Hannah. With her
experiences in working with many different farmer markets in the past, Hannah was able to
understand how the market work and will be able to get the best deal for Fast and Fruitiest
supplies. With her strong human relations skills and verbal skills, Hannah is the strongest
candidate for working with suppliers and managing the materials.
Annalie Nguyen is also majored in nutrition but she focused more the financial part and
will be responsible for managing the account function of their business. Any transitions involve
expenses will be conduct through Annalie and she will be the one doing inventory check on the

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business account in order to calculates the business profits and assets. Annalie has extensive
finance experiences in the past three years working as a supervisor for a supermarket and with a
strong numeric reasoning skills, thus making her a strong candidate for being Fast and Fruitiests
financer.
Chandinet Phoeun is great with customer services and planning skills so she will be
responsible for working with the customers to create more business plans with bigger
corporations to gain more profits and valuable customers. Extra businesses such as catering will
help further introducing our name to the greater community as well as better profits. With her
logical reasoning skills and social skills, Chandinet will help prepare more business plans that
will improve the Fast and Fruitiest business and profits.
Ana Pelcastre is great with ideas and very creative; therefore, we all voted for her to
become the manager of strategies and organization for the business. With Anas visual-spatial
reasoning skills and creativity, she will develop different menu ideas and flyers to advertise and
attract different customers market to accept Fast and Fruitiest smoothies.
6.4 Business Licenses
According to the San Diego food law, all food truck workers will be asked to provide a
Food Handler permits in order to practice in the food industry (14). So all partners who works in
the kitchen will be ask to become certified before practice. Fast and Fruitiest business will also
need to obtain a business license and a mobile food facility permit in order to run business in San
Diego county (14). More than one of the business partners will need to pass a state-approve Food
Safety Certification exam in order for the business to operate. Based on the San Diego food law,
all food business need to obtain a health permit before selling any edible products (14).

7. Marketing Plan
Marketing strategy for Fast and fruitiest is to educate the consumers about our high
quality products and our company principles that we adhere to. Customers will be reached by

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social media, fliers, coupon, contest, having sales and specials, and free samples. Fast and
fruitiest will target people of every age but especially health-conscious people who enjoy
healthy, fresh and nutritious beverage.
7. 1 Business Goals
Fast and Fruitiest are looking:
-To expand to two food trucks in three years.
-To expand our business to other major cities in southern California such as Los Angeles, San
Jose, Santa Barbara and beyond in 3 years.
-To produce a net annual income of $100,000 to $150,000 in the first two years of operation.
7.2 Competitive Advantage
Fast and Fruitiest competitive edge is based on the fact that we support and only buy high
quality produce from local farmers and certified distributors. We adhere to our slogan, which
states that "Fresh, fast, affordable smoothie. This means our products are daily fresh, on
demand fast, and reasonably inexpensive. Furthermore, we are on the move, which means we
will be able to locate in many locations and to reach more customers. We make it our priority to
buy locally grown produce not only to support local farmers, but also to reduce carbon footprint.
7.3 Pricing
Having to three different sizes for each items will increase cost. To maximise profit and
minimise cost, Fast and Fruitiest will only be offering one size for every item in a 16 ounces cup.
Our product will be price as follow:
1.
2.
3.
4.
5.

Strawberry Smoothie
Pineapple Mango Smoothie
Berry Smoothie
Fruit and Veggie Smoothie
Fresh Apples (Red Delicious)

$2.49 each
$2.99 each
$3.49 each
$3.99 each
$0.99 each

7.4 Distribution Channels

Fast and Fruitiest will make many stops around San Diego, such as school district
locations, parks, downtown district areas, any business crowded areas. We will also expand our

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business locations based on the event that happen around San Diego. Such as soccer games near
school district area or any football games. Any sport events will be mark in our business calendar
thus allow us to be able increase our sale.
7.5 Promotional Plan
Social media such as Facebook, Twitter, Instagram, is a great place to reach millions of
customs who live in San Diego county alone. This tool is going help with distributing fliers,
offering coupons and contest, broadcasting when and where we are having sale specials, and free
samples.
Fliers can be distributed in many outlet by Facebook, Twitter, Instagram, and onsite. On
the fliers, there will be a list of our usual locations. Each location will be noted to have its own
normal hours of operation. In addition, the flier will also have brief descriptions of each of our
hand crafted smoothies and its nutrition facts.
Coupon will be used as a promotional tool to draw new customers in and also to
appreciate old customers for their loyalties. Coupon will be distributed through major social
media described above. Furthermore, coupons can also be given onsite after purchases
preferably.
Contests are fun and creative ways to expose our product to new customers. Contests will
also give our customers a chance to win gift certificates for free smoothies or discounted price.
An contest can occur online or onsite. It could be as simple as posting questions for the
customers to answer. To win, they just have to have the right answer.
Sale special is a great way to spark customers' interests to keep a constant flow of
customers, especially after the menu has been status quo for a certain period of time. New special
items should be on the menu for every four months.
Free sample is a perfect way to draw new customers in, expose our new product, and
spark the customers interest.
7.6 Feedback
Customer's satisfactions is the most important element of successful business practice. There are
several ways that we can do to see if we have achieved customer's satisfactions.
* Survey/comment box is a direct way to get customer's feedback. We will ask each
customer to fill out a simple and short survey while waiting for the order. There will be
three questions in the survey and one free response question. The comment box will be
placed near the cash register.
* Profit/losses can also be a tool to get customer's feedback. High profit indicates high
customers satisfactions. Low profit indicates low customers satisfactions.
* Inventory is also another way to get customer's feedback. The numbers of certain item
being sold daily is a great indication of customer's satisfaction. The more the item being

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sold the higher the customer's satisfaction.

8. Operating Plan
8.1 Location

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The warehouse and our storage place will be located in San Diego, CA. Preparations will
be made to our food truck at this site. Such as transports fruit from our storage refrigerator into
our food truck, utensils and machineries. The truck in expected to be ready before the hours of
operation.
8.2 Facility and Operating Equipment
Our warehouse will be about 100 square feet in size. The primary purpose of this
warehouse is storage; therefore there will be storage equipments, like freezers, refrigerators,
utensils, storage containers and any inventory supplies.
All preparation for the food truck business, such as washing all the fruit and the blenders
will be done at the commissary place that we park our truck. The commissary place provide
supplies such as free water and waste disposal. Between preparation for smoothies, blenders will
be clean in the sinks of the food truck. Preparations area will consist a triple compartment sinks
that consist of one hand wash sink and two kitchen sinks, and high-pressure kitchen pray in order
to remove harsh contents.
Fast and Fruitiest food truck is a used bakery food truck, therefore most of the appliance
are already included and no need for replacement. We decide to used the include air condition,
the triple compartment sink, the small beverage refrigerator to display our fresh items, two
stainless steel prep tables. We purchase an extra reach-in 2 department refrigerator for more
storage on the go to prevent wilt in fruit by the temperature. Four blenders will be purchase for
the creation of smoothies. All process of making smoothies will be in the food truck to allow
freshness in the products. All cleaning of the product as well as the machinery will be in the
triple department sink.
8.3 Hours of operation
We will be operating 8 Hours a day and six days a week. During these hours, we will be
going to different locations to sell. Since our location will vary day by day, our company website
will post a monthly calendar of locations for quick use and reference by customers. Our calendar
will be up to date with all the football games as well as small competition game of different
schools in San Diego district. Our webpage on Facebook, Tweeter, and Instagram are update
weekly to make sure customers can follow our direction.
Monday: closed
Tuesday-Friday: 10am-7pm
Saturday-Sunday: 9am-6pm
8.4 Suppliers and Vendors
Fast and Fruitiest possible suppliers and vendors are Suzies Farm and Brians Farmers
Markets. We chose these vendors because their locations are very close to our business and they

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are organic, certified by the USDA. Suzies farm offers Community Supported Agriculture
services and are easily found in almost every local farmers market in San Diego. Brians Farmers
Markets as well as Suzies farm, offer CSA but its service also includes choosing or trading items
we may possibly need more of or less of with other farmers selling at Brians Farmers Market.
We will also make arrangements with them so we can procure our produce in bulk for the
fruits and vegetables we will use the most. If for any reason we find ourselves short in produce,
we will contact other local organic farms, for example, Archis Acress, Conellies Farm, Elis
Farm or Moceri Produce.
For non edible materials we will visit retail stores such as Costco and Sams club. We will
always be aware of seasons, discounts and coupons to save as much as we can in these type of
inventory. For other organic ingredients we will contact main manufacturers that are close to san
Diego to avoid long distance transportations.
8.5 Operating Table
Fast and Fruitiest purchase our used food truck through usevending.com (15). Our
storage unit will be rent monthly and sign an annual contract yearly (16). The machinery such as
refrigerators and blenders will be purchase through the Chef Essential website (17).
Transportation gas will be purchase through costco because every materials in food truck will be
purchase through costco due to their great cash back program for small business owner (18).
Utility usage will be conduct through the San Diego Gas Electric company (19).
Equipment

Source

Cost

Food Truck

Usevending.com

Storage Unit

Sparefoot.com

$1,020

Refrigerator

ChiefEssential.com

$5,000

Blender

ChiefEssential.com

$1,648

Transportation Gas

Costco gasoline

$250

Utility Cost (600 Kwh)

sdge.com

$130

$18,000