Theodore Wilm Suzanna Zak Carson Trobich Stephanie Veljacic

Big Dipper Food Truck Ice Cream Milkshakes Operating Hours Convenient Location

Mission Statement “Our Big Dipper food truck strives to provide the highest quality ice cream and milk shakes to those in the greater Philadelphia area. In responding to customer recommendations, we provide top quality customer service from the most personable employees while serving delicious ice cream and shakes. In addition, we aim to create a friendly, exciting, and encouraging atmosphere for our employees and customers to enjoy.”

SWOT Analysis

Target Market Business Professionals Family Sporting Events Villanova College Students

Order Winners High Quality Ice Cream and Customer Service Quick, Easy and Convenient Location Depends on Demand Unique Flavors of Ice Cream

Perceptual Map

Operations Strategy Front Office Approach High Customer Involvement Moderate to high resource flexibility Low capital intensity Customer Service is the backbone of the business

Operations Strategy: Products Batch Process and Make to Order Truck will be stocked with batches of ice cream flavors and toppings for the day Ingredients are assembled through a make to order strategy

Inputs From Suppliers

Equipment, Utensils, and Tools Ice Cream Truck 2 Freezers 5 gallon tubs Ice cream scoops Milkshake blender Sink Spoons and Straws Cleaning Supplies Miscellaneous

Quality Approach Lean Systems to eliminate wasteful steps Taste Consistency Size

Total Quality Management High Quality Supplier Low Cost to Ensure High Value High Quality Inputs Quality Circles Inspect Inputs upon Delivery Identify Quality Complications Quality Management

Quality Characteristics Conformance to Specifications Consistency of High Quality Products, Fast Production Speed Value Top Quality Ingredients with Low Cost Operations Support Helpful, Cheerful Employees with Top Tier Customer Service and Energetic Attitudes Psychological Impression Cheery Positive Interactions with Employees and Friendly Environment Attachment to Brand Image

Suppliers Ice Cream Haagen Das Dairy Products Lancaster Farm Fresh Cooperative Basic Ingredients Cedar Farms Corporation Toppings and Mix-ins JAS Wholesale Ice Cream Serving Supplies JAS Wholesale Marketing Materials Ridgway Consulting Equipment JAS Wholesale

Demand for Big Dipper Seasonal Pattern – Focus on the Fall and Spring semester for heavy traffic, lowest season is Winter Three target markets make up Main Line population – 20,000 college students in the immediate area, creating main demand drive – 20% of area’s population is under 18, makes up large part of customer – 33% of area’s population aged 18-34, young professionals targeted during lunch hours 70% of this segment, on average, eats out twice a week

Expected Beginning Sales

Forecasting Causal methods – Regressions Seasonality – Naïve forecast – Simple moving averages – Weighted moving averages – Exponential smoothing – Multiplicative seasonal demand Trend Progression with Regression

Sales Forecast

Annual Fixed Costs Accounting and Legal Fees 2.10% Repairs and Maintenance 1.6% Advertising1.7% Salary Expense19.7% Payroll Tax Expense.6% Supplies1.1% Utilities6.5% Insurance1.3% Depreciation.4%864.68

Fixed Start-Up Costs Initial Ingredients6,753 Accounting and Legal Fees2,500 Permits and Licenses2,000 Dipping & Storage Freezers8,000 Under Counter Fridge1,600 Hot Fudge Warmer400 Glass and Metal Shake Tins350 Shake Mixers600 Parking and Maintenance300 Kitchen Supplies1,000 Cash Register300 Marketing and Promotion300 Advertising500 Paper goods, cleaning supplies, office supplies750 Plumbing1,500 Insurance Premium400 iPhone with Square reader210

Variable Costs Cost of Goods Sold – $2.12 per milkshake – $0.47 per scoop of ice cream – $0.75 per ounce of toppings Fuel – Currently 3.75 per gallon of diesel – 10 miles per gallon – About 38 miles per day

Inputs Based on $216,170 of annual sales Milkshake – components: 3 scoops of ice cream, one cup of milk, 2 tablespoons of syrup, half ounce of whipped cream, to-go cup, straw, napkin Scoop of ice cream – Ice cream from vendor, cups, cones, napkins, plastic spoons, toppings

Pricing Decision One Scoop…………$2.60 Two Scoops………..$3.50 Three Scoops………$3.99 Milkshake…………..$4.00 Additional Toppings $.50 extra

Queues Organized Menu listed on truck Segregate duties Efficient technology Additional staff

Questions?