SAPORITOA Nutrition and Dietetics Learning Lab Food Truck

Business Plan

FIRST-STEP TEAM MEMBERSOliver EmsallemNavika GangradeAndrew KuczmarskiJoshua VogelEmily Wareheim

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Table of Contents

I. Table of Contents ..................................................................................................................pg. 2

II. Executive Summary..............................................................................................................pg. 3

III. General Company Description .......................................................................................... pg. 4

IV. Educational Component......................................................................................................pg. 6

V. Products and Services...........................................................................................................pg. 8

VI. Competitive Analysis.........................................................................................................pg. 15

VII. Marketing Plan ................................................................................................................pg. 18

VIII. Operational Plan ............................................................................................................pg. 20

IX. Legal Requirements for Operation....................................................................................pg. 23

X. Startup Expenses and Capitalization .................................................................................pg. 24

XI. Financial Plan ...................................................................................................................pg. 26

XII. Appendix..........................................................................................................................pg. 28

XIII. References......................................................................................................................pg. 32

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Executive Summary

Saporito is an innovative approach to delivering healthy food and nutritional knowledge to the University of Delaware communities. Nutrition and Dietetics students at the University of Delaware will operate and promote this food truck to fulfill a laboratory requirement for their “Onsite Food Production” class. The food truck will provide Nutrition and Dietetics students a unique educational advantage expanding their experiences beyond the traditional food service settings. Through operating the food truck as a hands-on laboratory, Nutrition and Dietetics students will learn the preparation of flavorful, healthy meals as well as the fundamentals in managing an independent business through experience in budgeting, menu planning with nutrient analyses, customer service, customer analysis, and market forecasting. Another salient purpose of the food truck will be to compliment the University of Delaware’s foodservice. The food truck will add a foodservice option that will provide healthful meals at an affordable price that accommodate regular, as well as special dietary needs. The proposed product to be served on this food truck will be a “build-your-own” meal with flavors inspired from Southeast Asia. Southeast Asian food is inherently gluten-free, dairy-free, and can easily be made vegetarian and vegan. Thus, the food truck will provide vegetarian, vegan, gluten-free, and dairy-free options, while preserving taste and quality of fresh ingredients. Additionally, the meal will comply with the American Heart Association's heart check certification program to ensure healthfulness.1

Saporito will utilize a commissary to prepare and store food on the University of Delaware campus. The truck will be located at designated campus areas such as the STAR and North Campus during lunch hours. In this way, a widespread range of students can be served, as their schedules and locations vary. In addition, to serving as a laboratory experience, the food truck can be used to serve food at special university events, including but not limited to discovery days, sporting events, and open houses. Initially students majoring in Nutrition and Dietetics will operate the food truck under the supervision of a Registered Dietitian with foodservice management experience. As the learning experiences expand outside the classroom requirement, students from different disciplines such as Hotel, Restaurant and Institutional Management and Food Science can be employed to operate the truck, thereby promoting a diverse learning environment. This arrangement will foster an organic exchange of ideas and methodologies can be shared. According to the Academy of Nutrition and Dietetics, the job demand for dietitians in foodservice will increase by 35% in the upcoming years.2 As foodservice options expand and innovate, the food truck has emerged as a viable profit center because of its mobility and flexibility. The addition of a food truck as a learning laboratory will expand the knowledge and education of students but also provide flavorful, healthful meals to all of the University of Delaware community.

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General Company Description

The mission of Saporito is to serve flavorful heart healthy meals at an affordable price to the University of Delaware community. The immediate goal is to provide students majoring in Nutrition and Dietetics the experience of translating theories learned in foodservice management classes into real life experiences; i.e. the management and operation of a food truck. Another goal of this truck is to provide Nutrition and Dietetics students with a venue to receive a more interdisciplinary education experience through interacting with students in different majors (i.e HRIM and Food Science). These experiences should provide the dietetics students with a competitive edge when applying for internships and jobs.

Long term goals:Initially, it will be operated by Nutrition and Dietetics students during lunch hours (11:00am- 2:00pm) from Monday through Friday and at select large scale university events. As morestudents become aware of the food truck, it will be open for longer hours and on weekends.Extended hours can be worked by certified and trained students who share an interest and desire. Through marketing and branding the food truck will be seen as a viable option for meals and areputable business. This incremental model reveals the potential for this food truck to growfinancially while maintaining its quality and integrity.

The philosophy of Saporito is to provide quality education and food. Quality education is defined by achieving the academic standards established by the Academy of Nutrition and Dietetics which requires each dietetic major to have a working knowledge of foodservice management and food preparation methods. Quality in the products is defined as the characteristics of the product that bear on its ability to satisfy customer needs. The primary target customers are the students who demand healthy, flavorful, quick, and affordable meals.

The company goals are aimed at expanding healthy food options on campus, as well as broadening Nutrition and Dietetics education. The field of nutrition is becoming concentrated and refined, leading to careers in Nutrition and Dietetics requiring more training and viewed as more prestigious. According to a workforce demand study conducted by the Journal of the Academy of Nutrition and Dietetics,1 there is more than a 3% increase in the need of Dietetics professionals annually. Due to this, “leaders in the dietetics profession should consider expanding programs and internships to produce competitive practitioners.”1 The food truck will provide Nutrition and Dietetics students with a venue to receive a more interdisciplinary education experience and create these students into better potential candidates in the field.

Three main goals of the business include: (1) Educate students working on Saporito through menu planning, preparing healthful food, budgeting, menu planning, service, customer analysis, interpersonal skills, and market forecasting. (2) Provide customer satisfaction through offering

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affordable and healthy options for individuals, accommodating several dietary conditions and restrictions. (3) Become a reliable campus food option by integrating into the University of Delaware dining services, and expanding hours of operation.

The goals of the business will be achieved by implementing a set of specific tasks that are based on principles of nutrition, excellence in education, quality of product, safety, business management, and customer service:

1. The “Nutrition and Dietetics Learning Lab Food Truck” will be heart healthy, following the nutritional recommendations prescribed in the Dietary Guidelines for Americans, 2015 (when released).

2. The expansion of student knowledge will be gauged and evaluated by a Registered Dietitian through students’ weekly reports about their employment experiences. Improvements will be recommended as needed.

3. Quality of the product will be maintained through total quality management, continuous quality improvement, and quality assurance practices.

4. All employees on the truck will be ServSafe certified.5. Customer satisfaction will be evaluated through the use of periodic customer surveys.

Action items will be generated and implemented as a result of these surveys.6. The success and growth of the business will be monitored using a monthly P&L

(Profit/Loss) spreadsheet that will provide the details of financial aspects such as the revenue and profit against a plan and a forecast. The costs will be monitored and reported regularly to the managing body. Quarterly and half-yearly bridges will be reported in the business analysis to monitor and show the financial performance of monthly sales.

“Build-your-own” meal will be the main food product. Students will pick from protein foods, vegetables, and grains to make their own Southeast Asian inspired global bowl. This product will be ensured nutritious as it will follow the new 2015 Dietary Guidelines for Americans. In addition dietary restrictions including vegetarian, vegan, gluten-free, nut-free, and dairy-free will be accommodated. Product recipes will be focus group tested and properly standardized to ensure customer satisfaction. To meet the goal of convenience, service time will accommodate the time restraints of students traveling between classes ideally under 7 minutes to order and receive one’s meal. Lastly, the food truck will be affordable, as all menu options will be $7 or under.

The Nutrition and Dietetics Learning Lab Food Truck brings more to the table than other University of Delaware foodservice competitors. It offers food options which should appeal to every individual, regardless of dietary concerns and restrictions, which would be a positive asset to the University. Finally, it benefits the education of Nutrition and Dietetics students, as it provides a real life, competitively advantageous experience.

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Educational Mission

The education mission of Saporito will focus on several educational objectives. As part of their work on the food truck and at the commissary, students will:

1. Identify and use food production equipment properly 2. Perform cooking activities of food production 3. Learn how to prepare flavorful, heart healthy meals by following a standardized recipe4. Observe and practice portion control and plating5. Become familiar with quality assurance related to the food being served (temperature,

portion control, sanitation, presentation)6. Develop their own healthful, nutrient dense food option, which entails:

a. Following the American Heart Association and Dietary Guidelines for Americans, 2015

b. Using customer analysis c. Setting a menu price, according to the budgetd. Perform nutrient analyses to document American Heart Association certification

criteria are achieved7. Interact with customers to hone service skills8. Develop marketing techniques to promote and advertise the truck9. Utilize forecasting techniques to plan preparations at commissary 10. Become familiar with all aspects of cleaning and sanitation11. Design customer materials (i.e. napkins) which contain recipe and nutrient content of

These education objectives will be accomplished by rotating students through roles in both the commissary and food truck. Ten students will work in one lab section at a time. There will be 5 lab sections per week (Monday-Friday). The roles of each student in lab are prescribed as follows:

Commissary Roles:1. Record Keeper/Inventory Control

a. Responsible for reading forecasts and instructing other lab members on amounts of ingredients to prepare

b. Responsible for logging inventory and finished prep items2. Prep cook 1

a. Responsible for vegetable preparation3. Prep cook 2

a. Responsible for sauce and topping preparation4. Prep cook 3

a. Responsible for grain preparation5. Prep cook 4

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a. Responsible for meat preparation

Food Truck Service Roles: 1. Cashier

a. Responsible for transactionsb. Responsible for giving order to expeditor

2. Expeditora. Responsible for organizing the ordersb. Responsible for reading out orders to the line cooks

3. Cook 1a. Responsible for grilling proteins

4. Cook 2a. Responsible for adding vegetables

5. Cook 3a. Responsible for adding toppings and sauces

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Products and Services

The food truck layout and logistics and the menu are explained in this section.

Image 1 presents the ideal walk up representation for a food truck. The truck that is pictured is a 24-foot long delivery truck, which has been modified in order to operate as a food truck. The truck itself has two walk-up windows. The window on the right serves as the window where customer will wait in line to place their orders, while the window on the right is where customers where pick up their orders. Located above the windows, awnings will enable the truck to serve patrons regardless of weather conditions. The height of the windows is just shy of 5 feet from the ground, making it an accessible height to customers. Image 1

Image 2 shows where the fresh water tanks will be placed on the truck. Located on the left underside of the truck, the freshwater tanks will take up minimal space and will help to properly balance the truck’s weight. The freshwater tanks will be utilized to provide running water for hand washing and cooking purposes. Image 2

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Image 3 depicts the location where propane tanks are typically stored. By being placed in the right underside of the truck, these tanks will balance the truck’s weight, while being stored out of view from the consumer. Propane, being highly flammable, as well as toxic, is best situated under the truck to protect from any leaks, which could cause sickness to employee as well as the potential of combustion. Image 3

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Image 4 displays the wastewater tank, which will be located on the right underside of the truck. The wastewater tanks will store the contaminated water, which is collected from the truck’s sink. Image 4

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Image 5 shows the rear of the truck. The rear is equipped with a set of double doors that enable workers to easily enter and exit the food truck. This will allow for easy loading of food onto the truck. Rear doors will also provide easy access to the truck for cleaning, as well as equipment servicing access. The wide opening in the back of the food truck will permit instructors to demonstrate and teach students the food truck’s functions. Even if students are not standing on the truck during these demonstrations, they will be able to view all of the vehicle’s equipment. Image 5

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Image 6 displays the interior layout of the kitchen. The kitchen has state-of-the-art cooking equipment that is both ideal for foodservice and to function as a proper learning environment. The kitchen will contain a quad French door refrigerator hooked with a dual single paneled freezer. It will also have a three-compartment sink for hand washing, as well as proper cleansing of certain foods. In order to keep food hot and ready for service, there will be a three-compartment steam table, which will ensure food warmth and freshness. For cooking food, the truck will have a propane-powered flattop and grill. There will be both a refrigerated prep table as well as a hot food prep table in order to deliver the final product. The prep tables will store the final product as well as sides and sauces to accompany the food being served. This kitchen will be fully equipped and able to comfortably handle up to 5 individuals at any given time. Image 6

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For menu items, Saporito will offer healthful and flavorful food to create well balanced meals at a consumer valued price point. The current menu is inspired by Southeast Asian cuisine. At an affordable price of about $7, customers can design their own meal by choosing their base (starch), protein, sauce, and toppings. This approach is a unique way to provide options for even the pickiest of eaters. Customers also have individual option of choosing a main entree ($5 per unit) or a side ($3 per unit), allowing for the customer to satisfy their energy needs while maintaining their budget. The entrees consist of sesame/honey sriracha satays or tofu/chicken summer rolls. The sides include brown rice, vegetable satay, cucumber tsunami salad, and a sesame edamame salad.

This variety of options provides the company with several competitive advantages. Not only are the prices reasonable, but options are available for an individual with a common dietary restriction. For example, the food truck’s menu will consistently contain vegetarian, vegan, gluten-free, nut-free, and dairy-free options. Most importantly customers will receive a healthful meal while enjoying excellent taste and quality. On the next page, is a copy of a sample menu illustrating the unique concept of “build your own lunch.”

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Menu

Satay; Served with light sriacha mayo (3 per order)

Signature Chicken Satay (Chicken skewers marinated in the house marinade which consists of blackened sesame oil, toasted sesame seeds, sweet soy sauce, freshly sliced scallions, and orange zest)

Lemongrass Tofu (firm tofu marinated in hand crushed spices, ginger, lemongrass, and citrus ponzu)

Sassy Summer rolls; served with a coconut peanut sauce (2 per order)

Tofu or Chicken accompanied with our crunchy slaw, Vietnamese vircimilli noodles, and crisp cilantro wrapped in rice paper

BYOL: Build Your Own Lunch

Step 1: Choose what you want (choose 1)

Bahn Mi - served on a toasty baguette with jalapeños, cilantro, with vegan or regular mayoBi Bim Bap Rice Bowl - Rice, pickled veggies, choice of proteinVietnamese rice noodles - chilled rice noodles, crunchy slaw and your choice of protein Lettuce taco - we use lettuce instead of a tortilla and it is topped with crunchy slaw and choice of protein Refresher salads - tomato, avocado, choice of protein

Step 2: Choose your protein

Mommas Special Chicken (Marinade in the house marinade and char broiled to order)Grilled Lemongrass Tofu (Firm Tofu dusted in hand crushed lemongrass and spices charred over an open flame)Bali Beef (juicy marinated steak which has been braised for 4 hours in a ginger and sesame reduction)

Step 3: choose your sauce (choose 1)

Mommas House dressing (blackened sesame oil, toasted sesame seeds, sweet soy sauce, freshly sliced scallions, and orange zest)Light Honey Sriracha Mayo Sweet SoyGinger Miso aioli Teriyaki SauceCoconut peanut sauce

Step 4: choose your toppings (choose up to 3)

California Avocado /Crunchy Slaw ( Pickled daikon, carrots, cucumber, and cabbage tossed with cilantro and toasted sesame seeds)/House Cured Sweet and Spicy Kim chi /Toasted Sesame Seeds /Flash blanched Broccoli /Snapping Snow Peas /Chilled Edamame /Crunchy Water Chestnuts

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Competitive Analysis

The company will be competing with grab and go food stations, as well as fast food vendors hosted by the University of Delaware dining services. The companies Saporito is competing with are fast food type companies that are located within student centers and academic buildings. The products will not have the same variety but will have a similar level of consistency. The truck will be offering healthy and tasteful eating options. Saporito is mainly competing with the healthy options offered by UD dining. Depending on the selected menu of the food truck, direct competition would be the cuisine presented in the menu items. Depending on location the truck would be competing against UD food vendors within a customers 10 minute walk or ½ mile. The customer population is also location dependent; the truck is marketing to people with an appetite who value eating healthy. Indirect competitors will be vendors with store presence, allowing for restaurant style dining allowing for year round dining. Saporito will have higher quality, healthier, and value driven products. The price will be comparable, with some of the healthier items costing more. Service will be unique as customers will be engaged in an educational experience as well as social media. A competitive analysis table is on the next page section.

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Table 1Factor Business

Food truck

Competitor B

P.O.D

Competitor

A

Trabant

Ranking of

customer

importance

1 = highest

5 = lowest

Strength of

business

Weakness of business

Products hot/cold food,

drinks

grab and go grab and go,

fast food

3 healthy, gluten free limited selection

Price 5-7$ 3-9$ 3-9$

meal - 10

1 quality at low cost might be too much

Quality Fresh, made to

order

poor, pre made pre made,

grease, salt

2 tastes better, looks

better

takes time to prepare

Selection small -

medium

small, routine medium

same items

3 quicker order time customer taste

Service fast (5-7min)

personable

fast, waiting in

line

slow -

medium

1 can see the food

being made

wait time, customer

service skills

Reliability constant

schedule

constant hours constant

hours

2 have standard hours only serve during

lunch hour

Stability grants and

profit

yes yes 4 have school funding might not break even

Expertise many years of

experience

none required none

required,

min training

3 multidisciplinary

experts

learning curve for

students

Company UD health

sciences

UD dining UD Dining 4 good name to back it might have legal

constraints

Reputation positive,

student based

known as an

option, not

positive feelings

dissatisfied

but only

option

3 strong student

following, word of

mouth

have to be maintained

by the current class

Location mobile, high

people volume

near dorms and

in academic

buildings

at all

student

centers

2 mobile, easy to bring

to students

weather might be an

issue

Appearance positive, food locker cafeteria 3 Friendly and inviting Some may not want to

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approachable,

engaging

style have food from food

truck

Customer students,

faculty, staff,

special events

students and

professors

students,

visitors

3 people value health

and will pay for the

concept

might not have enough

variety in menu

Sales

Method

in person

transaction -

order per hour

cash, credit, flex

points

cash, credit,

flex points

1 direct income, good

for making

projections

only reach people at

truck

Credit

policy

cash, points,

credit (square)

All types All types 1 many ways to pay UD dining plan, use of

points

Advertising social media,

flyers, news

little to none very little,

social

media,

posters

2 student based, know

their population

lack of training could

be an issue

Image fun,

professional 1

The main competitive advantage is that Saporito will be adding another option for students and staff to eat healthy, convenient, delicious food. Through design, the menu avoids common allergies allowing more people to choose our location. Furthermore, there is a lack in engagement between the food provider and the customer and Saporito will fill this gap in a fun and motivational way that promotes the customer to make healthy choices. The customers’ health is valued and Saporito will use food as a tool to communicate to the customer and start a “conversation” regarding healthy living.

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Marketing Plan

Marketing Objective: The following are objectives for maintaining Saporito’s image and reputation:

1. To create a place where Nutrition and Dietetics students can get hands-on experience in foodservice and food service management.

2. To establish the food truck as a convenient place to eat, where customers can expect great service and an array of food options.

3. To provide food that fits the needs of individuals with selected food allergies/sensitivities.

4. To provide customers with recipes and nutrient content of menu items

Initially, products will be marketed to individuals at STAR campus during lunch hours, Monday through Friday, which is expected to be about 90 transactions/day.

Upon entering a new market, finding the right location, providing quality service, and spreading the word to earn customers are opportunities to raise awareness and build a presence on campus. The food truck will begin in a location with a high volume of foot traffic, but little competition, such as STAR campus and North Campus. This will help gain customer loyalty, as they will now have a convenient place to grab a bite to eat. Promoting the business and informing customers is discussed in detail later on.

Product:Our company offers 4 unique features:

1. Fresh ingredients turned into quality products. 2. Food options for specific dietary restrictions, such as gluten free, dairy free, nut free,

vegetarian, and vegan. 3. Customer service by University of Delaware’s Nutrition and Dietetics students. 4. An education component: the staff will learn proper food handling and food management

skills, while the customers will learn interesting nutrition facts (printed on their napkins and plates).

Customers:With the company being a part of such a large University, the customer demographics is set on a rather wide scale. The food truck will be available to a diverse clientele, including students, faculty, and the Newark community. Marketing efforts will focus on students and professors in the health sciences. As the customer base grows it may include individuals of younger and older ages and more ethnicities, who may share different values and beliefs. The STAR campus will be the initial site to pilot the food truck. Individuals on the STAR campus who represent some of faculty and students in the College of Health Sciences most likely value their personal health and

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will welcome a food truck serving healthful meals. This population maintains a curiosity toward health, making them a good candidate to test the educational components of the food truck Promotion:As a new and upcoming business, the truck will project a positive message to customers: a healthy and convenient spot to find food during lunch. There will be 5 methods implemented to market the business; to inform customers of promotions, changes and opportunities. (1) University Media Outlets, such as Review, UDaily, and OCM, will promote the business to student, staff, alumni. (2) Social media, such as Facebook, Instagram, Twitter, Food Spotting, and Yelp! will provide daily updates to followers about specials, the location of the truck, and changes to hours. Fans and followers can also be rewarded with exclusive offers. (3) Posting flyers and giving away brochures, on a monthly basis, around campus will press publicity and help spread the word about the truck. (4) Student Central can promote the business through clubs such as, the Nutrition and Dietetics Club, Healthy Hens, Gluten Free at UD, the Vegetarian Club, and several others. (5) Offering free samples during heavy foot traffic, will provide customers the opportunity of tasting the products before choosing to dine at the food truck. A mix of strategies was chosen for various reasons. First, it gives the target customer the best chance to learn about the business in a method that is convenient for them. Second, by keeping customers updated on a daily/weekly/monthly basis, they will learn to trust the company and make the choice to dine there. Third, these campaigns are simple enough for the students working in the food truck to learn through some quick training. The best way to follow through with these tactics is to have the Nutrition and Dietetics students working in the food truck learn some basics about public relations and have them take turns advertising and marketing the food truck.

Pricing:Pricing plays a critical role in the development and sustainability of our business. Customers consider price when making a decision about where and who to buy their food from. Since a large portion of customers will be students on a limited dining budget, proposed prices will be set at a slightly lower if not equal level when compared to the competition. When setting our menu prices, food costs were considered, which can be found in the financial section of this business plan. The actual prices will be set to make sure that the truck breaks even with the budget, thus maintaining sustainability and keeping prices low. Another important feature to customers is the convenience of paying. The food truck will be capable of accepting all types of payments: points/flex, cash, coupons, debit/credit, and gift cards. This is a key component when it comes to widening the audience.

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Proposed location:Another important component to the food truck is location. The location must offer several features, such as enough room for lines and customers waiting, space for tables and chairs, space for a generator, and most importantly, convenience. A convenient location is important when attracting customers. The truck must be strategically placed, so students can access it with only a 5-10 minute walk (less than a ¼ mile) from major academic or residential locations. Much of the competition, such as food trucks on Academy Street, Main Street restaurants, Trabant, the POD, Bleeker Street, and the Scrounge offer the ideal location for customers, which raises a mild concern. However, with the truck’s variety of products, healthy options, and unique customer service experience, the proposed food truck will be competitive among its competitors. Distribution channels:The business will be capable of selling the products and services in a variety of ways. It will offer in person transaction, but also have the advantage of phone and online ordering once established, setting it apart from the rest of the competition. Also, in the future, a phone app will be devised to give live updates.

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Operational Plan

As this business doubles as a learning laboratory for students, the daily operations will initially be limited to the confines of the class laboratory schedule, as well as other university activities. Eventually, the goal of the company is to expand past the limitations of the class laboratory schedule.

The “Nutrition and Dietetics Learning Lab Food Truck” will normally operate on a weekly schedule from Monday through Friday. The commissary will operate from 9 am - 12 pm. The food truck will operate on campus from 11 am - 2 pm. The times 11 - 2 pm are ideal lunch times, according to the university class schedule.

In the commissary, from 9 - 12 pm preparation for service will take place. Students will arrive at the commissary location in STAR campus at 9 pm. The commissary will be located in the STAR building on South Campus. This location is optimal as it is convenient for suppliers. The expenses for using this commissary, including maintenance, utilities, insurance, and initial remodeling costs. The rotating role of “Recorder/Inventory Control” will read the forecast and instruct the 4 other students on how much of each ingredient (grains, vegetables, sauces and toppings, and meat) to prepare. While the 4 prep cooks are preparing, the fifth student will be taken an inventory recording, monitoring the maintenance of food temperatures, assisting with sanitation, and being the liaison between the truck and commissary. From 11 - 12pm, the food truck will be parked outside of the building with the commissary. Therefore, any extra provisions can be brought from the commissary in that time. Afterwards, the truck will travel to a different location. In the commissary, a Teacher’s Assistant will oversee and assist the 5 students in these tasks.

The food truck will be in operation from 11 - 2 pm. At 11 am students will arrive at the food truck’s first location outside the commissary. The commissary will transport the prep ingredients to the truck at 11. At 11, the food truck will start servicing STAR campus. Then at 12, the food truck will move to a different location based on a rotation pictured in the table below . By 12:30, the second round of operations will start. Two students will be at the window. One will accept the order form. The order form will be posted outside the food truck. Students can check off which protein, vegetable, topping, and sauce they want. Then, they bring the order form and payment to the window. The cashier will accept the order form and conduct the transaction. The order form will then be passed to the expeditor, who will read off the order to the line cooks. Then, the cashier will hand the finished meal to the customer. At 2, the food truck will stop business.

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Monday Tuesday Wednesday Thursday Friday

11-12 STAR Campus STAR Campus STAR Campus STAR Campus STAR Campus

12:30-2 East Delaware/North Green

Townsend Hall Amstel Avenue STAR Campus South College Road/Smith Hall

Costs will be associated with production and maintaining the inventory. Production costs will include fuel, food, and paper supplies. Without an electrical outlet, a generator running on propane will have to be used, contributing to the fuel cost. There will also be a daily food cost. The daily food cost will correlate to the paper supplies cost. The inventory will include raw ingredients and leftover finished products, such as sauces, grains, and vegetables. The inventory and food will be built through suppliers. Bulk suppliers will be used to reduce the cost of ingredients.

Quality control is a salient concern as students are running both the commissary and the food truck kitchen. Quality is integral to the maintenance and mission of the food truck. Quality will be continuously maintained through a Total Quality Management style. The Registered Dietitian who will oversee both the commissary and food truck will teach with quality embedded in the process. Furthermore, as the process continues Continuous Quality Improvement will be utilized. In each role, the student will be reminded of their individual contribution to quality. Lastly, Quality Assurance will be utilized in weekly reports where students will identify quality shortcomings and ways to improve them.3

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Legal Requirements for Operation

The following are legal requirements that will be necessary for the Sweet and Spicy Food Truck to adhere to in order to operate. More information about these requirements can be found in the Appendix.

● Delaware Plan Review and Approval for Mobile Food Units● United States Federal Government General Business Operating Requirements

○ IRS Employee Identification Number (EIN)● State of Delaware General Business Operating Requirements

○ Business License○ Prothonotary Registration○ Unemployment Insurance Taxes○ Workman’s Compensation○ State Withholding Taxes

● City of Newark General Business Operating Requirements○ Business License○ Fire License

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Startup Expenses and Capitalization

The startup costs for our food truck vary depending on the different types of vehicles, which are available for our food truck. As seen in Table 1, our food truck has four different options for a startup cost. The first one we have is a brand new Freight Liner Delivery truck, which consists of the aluminum food truck shell with no water lines or electrical lines. It runs at roughly $66,000 this option would need a more appropriate suspension in order to handle the weight of the equipment on the truck. In order to properly modify this truck with the appropriate water lines, electrical lines, and cutouts for windows it would cost roughly $9,500. This option would have a projected cost of $82,499 before equipment. The next option is a standard Freight Liner Delivery Truck fitted to support and function as a food truck. This option would cost roughly $72,000. The benefit of this truck being ready to go is that it does not to be outfitted additionally to support any equipment and function as a food truck. Although this is a last years model, It is still a brand new food truck and capable to be the vehicle which we use for our operation at a cost of $78,999. The next option is a previously used food truck without any equipment. This option is the most affordable option, yet it is also the most unreliable. A used food truck could pose problems for the operators of the truck due to age as well as wear and tear. Lastly we have a sprinter van option. This option is a newer approach due to fuel efficiency and space, which it takes up. This option would not be able to situate a great amount of people but would be very efficient in terms of fuel, storage, and parking.

The equipment priced in Table 2 is all the necessary pieces of equipment, which one could use on their food truck. The equipment needed was determined based on what would be the most efficient for an appropriate learning environment as well as what is needed for a properly functioning kitchen.

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Table 3 shows the projected costs of each food truck including equipment. Considering it needs to be a learning environment, the outfitted and fully equipped Freight Liner Delivery Truck is the most viable option. It is the only option, which can withstand the most appropriate learning environment. In the long run, this is the most cost friendly. Although it is last years model, it would be the safest learning environment considering it is a brand new food truck, which is ready to go. The cost of the renovation and modification of a brand new non-outfitted model is greater than the cost of the model from the previous year. It would also make more sense to use the pre-outfitted truck in order to support the new equipment as well. In the long run this option would prove itself to be the best option.

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Financial Plan

The following financial plan includes an evaluation of start-up costs, recurring costs, and monthly sales. Table 4 shows the total start-up cost for the “Dietetics and Nutrition Learning Lab Food Truck.” This is a total start-up cost based on the food truck and equipment costs calculated in the Start Up Costs and Capitalization section. Table 5 and Table 6 are more in-depth analysis of the permits and kitchen/extraneous supplies costs in Table 4.

Table 4: Total Start-up Cost

Food Truck $78,899

Equipment $8,680

Permits $300

Kitchen/Extraneous Supplies $500

Total $88,379

Table 5: Cost of Permits and Licensing

Food Establishment Permit $100

Business License $75

Plan Review Fee $100

Prothonotary Registration $25

Total $300

Table 6: Extraneous/Kitchen Supplies

Transaction System (Tablet) $250

Kitchen Utensils $250

Total $500

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Table 7 displays the recurring costs per month. The recurring costs are advertising costs, commissary fee, fuel (propane) fees, food costs, paper supplies, a preemptive maintenance fee, insurance costs, and a square reader cost. This totals to 81.5% of sales.

Table 7: Recurring Costs /Month (as percent of sales)

Advertising 3%

Commissary 10%

Fuel 5%

Food 25%

Paper 2.5%

Maintenance 20%

Insurance 10%

Square Reader Cost 6%

Total 81.5%

Table 9 displays the total sales per week and then extrapolates to sales per month. With an average of 90 customers a day and an average sale of 6 dollars per customer, each day there is a $540 revenue. This makes $2700 a week and $10,800 a month. That means the profit per month is: $10,800 - ($10,800 x .815) = 1998. To pay off the initial investment of $88,379, it will take 44.23 months: $88,379/$1998 = 44.23 months. This is equivalent 3.7 years.

Table 9 Monday Tuesday Wednesday Thursday Friday Total

Avg. No of Customers

90 90 90 90 90 450

Average Sale

6 6 6 6 6

Total Sale $540 $540 $540 $540 $540 $540

Total Sales/Week

$2700

Total Sales/Month

$10,800

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Appendix: Legal Requirements for Operation

Plan Review and Approval for Mobile Food UnitsThe first and main legal requirement that must be satisfied in the course of owning and operating a food truck or other mobile food unit is to complete the state’s plan review application and be approved. The authority that regulates mobile food units and other food service establishments is the Delaware Health and Social Services Division of Public Health. The organization is involved in every aspect of food and beverage within the state of Delaware. A relationship between the University of Delaware’s College of Health Science (CHS) (the prospective food truck owner) and the Division of Public Health (also known as the DPH) begins when a representative from CHS completes an application for “Plan Review and Approval for Mobile Food Units”. This very informative document can be accessed online or by directly contacting the DPH.

The application for Plan Review and Approval for Mobile Food Units contains 11 parts that must be completed by those who would like to open a food truck operation. It must be submitted to the Office of Engineering’s Plan Review, which is located in Dover, DE. Completed applications are read within 30 business days and are reviewed in the order that they are received. It is required for an application to be submitted “before construction of a food establishment; before conversion of an existing structure to a food establishment; before remodeling and/or renovation of a food establishment; or when there is a change in type of food establishment or food operation” (Delaware Health and Social Services Division of Public Health, 2012). No additional construction or alterations can take place after filling out an application until a party receives an Approval to Construct letter. All mobile food units need to pass a pre-operational inspection before being approved by the Division of Public Health.

Upon approval, CHS will be given a Food Establishment Permit, which will allow the college open up its food truck. The Department of Behavioral Health and Nutrition (BHAN), the operator of the food truck, will hold the permit. If the owner and operator of the establishment are two separate parties, then the Division of Public Health requires that the operator acquire a permit. A permit is valid for one year and must be renewed on an annual basis, for a yearly non-refundable fee of 100 dollars. Non-profit organizations are not required to pay in order to renew their Food Establishment Permits. Permits must be posted clearly in public view within the food truck. Permit holders are required to allow Division of Public Health representatives access to their establishments for an inspection during the property’s hours of operation. Inspections of mobile food units usually occur once each year, however they can occur more frequently if deemed necessary. If BHAN were to fail follow the rules and regulations that are put forth by the DPH in the State of Delaware Food Code, its operating permit can be revoked or suspended. Upon receiving a permit, BHAN representatives must follow all directives from its Hazard Analysis Critical Control Point (HACCP) plan and the DPH. BHAN is also required to stop all operations and notify the Division of Public Health if there is an imminent health hazard, such as a fire, foodborne illness outbreak, sewage backup, or misuse of toxic items. Additionally, if an employee from a food truck is ill with “Norovirus, Salmonella Typhi (Typhoid fever), Shigella spp., Shiga toxin-producing E. coli including O157:H7, or Hepatitis A virus” (Delaware Health and Social Services Division of Public Health, 2012) BHAN needs to inform the DPH. While a

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Delaware Food Establishment Permit is a very important document for the operation and success of a food truck, the permit and its conditions must be taken seriously.

Application for Food Establishment PermitThe Application for Permit to Operate a Food Establish is the first component of the Plan Review and Approval. This part of the application asks for general information about the applicant and prospective food service establishment. CHS must fill out contact information, the name and location of the proposed unit, type of food establishment, permit requested, and business entity structure (i.e. individual, partnership, corporation). This section of the Plan Review and Approval also indicates that upon approval, an invoice will be mailed requesting a 100 dollar payment for the Food Establishment Permit.

Plan Review FeeWhen submitting the Plan Review and Approval for Mobile Food Units application, a non-refundable fee is required to be made payable to the State of Delaware. For mobile food units that are planned to be 1,000 square feet or less, an applicant must pay 50 dollars. Operators who propose a food truck that is between 1,001 and 5,000 square feet are required to include payment of 100 dollars. Non-profit organizations are exempt from having to pay the Plan Review Fee. Organizations that decide to take advantage of this opportunity should attach a copy of their IRS 501[C][3] Letter.

While it may be rather lengthy, the application for Plan Review and Approval for Mobile Food Units is an essential and undoubtedly the most important element when planning to open and operate a food truck. Failure to submit this document to the Plan Review of the Office of Engineering will prevent BHAN from obtaining a Food Establishment Permit, which will make it unlawful for the University of Delaware to build and manage a mobile food unit. If necessary, help and guidance are available by contacting the Office of Engineering or Division of Public Health.

United States Federal Government General Business Operating RequirementsAll businesses (other than sole proprietors with no employees) that operate in the United States are required by the U.S. Federal Government to have an IRS Employee Identification Number (EIN). EINs are used by the IRS, Division of Unemployment Insurance, Social Security Administration, and state governments in order to identify businesses on documents, such as statements and returns. To apply for an EIN, CHS must complete a SS-4 form and file it with the IRS (City of Newark, Delaware, 2010). A sole proprietor who does not have any employees may use his or her own Social Security Number when filing tax returns.

State of Delaware General Business Operating Requirements

Business LicenseThe state of Delaware obliges all businesses that operate within the state to have a Delaware business license. These licenses are issued through the Delaware Division of Revenue. CHS can register for a business license either by using the One Stop Business Licensing and Registration Service on the State of Delaware’s website or by filling out the Combined Registration Application Form and mailing it to the Division of Revenue (Delaware Division of Revenue, 2014). Delaware business licenses are valid for a one year period, which ends on December 31

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of each year. The price for restaurants, including food trucks, to obtain a business license is 75 dollars per year (Delaware Division of Revenue, 2011). After the first year of holding a license, CHS and BHAN must renew its business license and can choose to either pay for an additional year or three years. Prothonotary RegistrationAll new owners of sole proprietorships and partnerships need to register their business and its name with the Prothonotary’s Office, which is located in the local county Superior Court. These owners are held accountable to ensure that there is not an existing organization or business that already has the same the name as their new business. To verify that a business name is unique, CHS can search an online database on the Delaware State Courts website that lists all used business names (City of Newark, Delaware, 2010). Upon determining that CHS’s new business name is not already being used, the College must complete a registration certificate and turn it in to the Prothonotary’s Office with a check payable to the State of Delaware for 25 dollars.

Special Requirements for Businesses with EmployeesWithin the state of Delaware there are three additional obligations that businesses that have employees must meet. The first requirement is that all employers must pay unemployment insurance taxes. These taxes must be paid with respect to the calendar year. In order to initially begin the process of paying payroll taxes, CHS must fill out Form UC-1 and submit it to the Delaware Department of Labor’s Division of Unemployment Insurance. (City of Newark, Delaware, 2010). Workman’s compensation is the second duty that businesses with employees must be concerned about. The Delaware Workers’ Compensation Law guards companies from liability for any work-related injuries and provides reasonable medical benefits and income to on-the-job accident victims or their dependents (City of Newark, Delaware, 2010). The state of Delaware highly encourages operators, such as BHAN, to enroll in workers’ compensation insurance through an independent insurance agent. Lastly, the Delaware Division of Revenue has mandated that all employers pay state withholding taxes. By completing Form CRA and sending it to the Division of Revenue, CHS will receive the appropriate forms and detailed instructions regarding the payment of state withholding taxes (City of Newark, Delaware, 2010).

City of Newark General Business Operating Requirements

Food Truck LocationThe city of Newark, Delaware has the authority to control a food truck’s site of operation. This means that the city can control where a food truck is permitted and prohibited to park. The locations where a mobile food unit is allowed to be located also vary based on the unit’s size. CHS and BHAN should speak with Newark’s Planning and Development Department, which is located on the second floor of the Newark Municipal Building to find out more about the a food truck’s potential sites of operation (City of Newark, Delaware, 2010).

Business LicenseBusinesses that operate in the city of Newark, Delaware are required to have a Newark business license. In order to apply for a license, BHAN should contact the Newark Finance Department, which is housed in the Newark Municipal Building on the first floor. Newark business licenses must be renewed on an annual basis and the cost is “based upon estimates of demand and cost for municipal services related to specific business classes, plus the occupancy/employment level” (City of Newark, Delaware, 2010).

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Fire LicenseBeing that food trucks have can have dangerous and hazardous processes, objects, and materials, the city’s fire marshal requires mobile food units and other businesses to obtain a fire license. BHAN will need to fill out an application for a fire license, which can be found on the second floor of the Newark Municipal Building in the Newark Code Enforcement Division (City of Newark, Delaware, 2010).

Owning and operating a food truck is a very profitable, innovative, and enthralling practice, which had to the rapid expansion of food trucks around the United States and across the world. The laws, statutes, and legal requirements that relate to mobile food units and businesses in general exist to protect the best interests of food truck owners, operators, employees, competitors, and consumers. Food trucks that stay abreast of past, present, and future laws will set up their businesses for nothing but success.

Works Cited City of Newark, Delaware. (2010, July). Starting a Business in Newark: A Resource Guide. Retrieved November 29, 2014, from City of Newark, Delaware - Business Services: http://www.cityofnewarkde.us/DocumentCenter/Home/View/185 Delaware Division of Revenue. (2014). Business License Frequently Asked Questions. Retrieved November 29, 2014, from State of Delaware Department of Finance: Division of Revenue: http://revenue.delaware.gov/information/faqs_lic.shtml Delaware Division of Revenue. (2011, June 21). State of Delaware Form CRA. Retrieved November 29, 2014, from State of Delaware Department of Finance: Division of Revenue: http://revenue.delaware.gov/services/current_bt/cra.pdf Delaware Health and Social Services Division of Public Health. (2012, November). Plan Review and Approval for Mobile Food Units. Retrieved November 28, 2014, from Delaware Health and Social Services: http://dhss.delaware.gov/dhss/dph/hsp/files/mfuplanreview.pdf

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References

1. American Heart Association. Nutritional Requirements for Certified Meals (Foodservice). (2013).

2. Hooker, R., Williams, J., Papneja, J., Sen, N., & Hogan, P. (2012). Dietetics Supply and Demand: 2010-2020. Journal of the Academy of Nutrition and Dietetics, S75-S91

3. Payne-Palacio, June, and Monica Theis. Foodservice Management: Principles and Practices. 11th ed. Upper Saddle River, NJ: Prentice Hall, 2008. Print

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