INTRO PROFIT market DATA TIMELINE
HUMAN CAPITAL
Identify project leads early & build rock star support squad.
SITE LEADER - $60,000 to $70,000 annualized
The on the ground tribe leader, comparable to a high performing store GM identified as a transfer to new market or hired as a local candidate. Alternatively, this bucket can be used to finance a 9-month stay of a high-level corporate market leadership support.
ROLE: manage miami tribe, identify neighborhood sites, manage inventory, operate food truck, report daily sales.
CORPORATE SUPPORT - $55,000 to $65,000 annualized
The in-office muscle & market liaison, a dynamic up and comer in the corporate space who is transitioning into a corporate role and has one project to manage. Alternatively, half-time of an extant marketing team member resource.
ROLE: build site schedule, generate local content, manage miami customer base, integrate tech, report progress
hourly staff - $2200 weekly
Miami’s best & brightest. Modeled to provide living hourly wage of $13 and to facilitate the constant peak hour staffing of three people to operate truck with precision.
NOTE: 3 daily overlapping 8-hour shifts over 7 day at 13 an hour ≈ $2,200 per week. More than enough to provide for three stellar staff (including the site leader) to be always on during business hours.
WEEKLY EXPENSES
Map out what goes out the door to keep the diesel flowing every week.
Human Capital - $4600
Cost of Goods - $2150
Operating Expenses - $500
Fuel, marketing materials, repairs, licenses & usage fees
Debt Service - $1250
Build out, equipment, wrap & truck purchase. Estimated debt to repay $65,000. Project investment funds repaid at 0% interest over 52 weeks.
NOTE: cost of goods calculated as 35% (30% food & 5% packaging) of total sales covering EXPENDITURES at break eveN.
WEEKLY SALES TARGET
$8500
Hitting sales goal plus achievement on expenses equals profit.
Combined with managing expenses to fall below the above targets, achieving an average weekly sales number of $8500 over 52 weeks represents a full break-even - salaried & hourly staff, COGS, OPEX & build out - for Y1 and an annualized profit of $65,000 in Y2 of truck operations and beyond.
Alternatively, a Y2+ mobile kitchen can adjusted all the way down to $6000 - $7000 depending on hourly labor division to maintain profitability but still test new market performance.
BUDGET & PERFORMANCE
Sales goal will be backloaded with a 90-day market gestation period.
Budgetary performance will be expected within 30-60 days with generous expenditures allowing for ample operational wiggle room.
Debt service is always in play to maintain profitably in lower performing test markets by extending truck investment payoff - as mobile units, no additional cost is incurred to move to a more profitable market
Fleet scale provides a potential reduction in single unit human capital through efficiencies of corporate support.
External value of market data and launch mechanism justifies a break-even success rate.
PROJECT TIMELINE
ZERO DAY
Evaluate Human Capital Assist in ramping up staffing and finalize market leadership team.
30 DAY
Manage Expenses Heavily focus on operating efficiently and managing COGs & OPEX to budget.
60 DAY
Performance to Budget Arrive at optimization of hourly labor and achieve full budgetary success.
90 DAY
Hit Sales Target Achieve profitability by reaching sales target and building upon budgetary performance.