Dear Mr. Moakley, thank you very much for the meeting yesterday. We are extremely excited to start our Food Cart business on Alberta Street, Portland, and looking forward to your company investing in it. We have been in the Food Cart Business for the past 3 years and would like to expand our business now.
We have prepared this proposal for you, with all the details. We would like your company to have a look at the entire investment opportunity and share your business advice to assist us. ABC has provided capital to a lot of companies with experienced management and we would appreciate it if you would provide these services to XYZ to make it a success. Let us know if you have any reservations or queries. Regards, Diego Mark.
Diego Mark and Anthony Marcel are the owners of the XYZ food Cart business. XYZ has 1 food cart operating on the Main Boulevard, Portland, and now wants to expand the business by placing another Churro selling Food Cart at Alberta Street, Portland. We take pride in maintaining a high-quality Churro serving Food Cart. Our Churros are the best in town. Our original Mexican Churro recipe is a secret family recipe that has been passed down through generations, with a few improvisations. XYZ Food cart attracts customers from all over Portland. We serve a variety of steaming hot Churros with a huge range of toppings.
We serve 2 types of box servings with a variety of fillings and toppings. The details are provided below:
Contains 3 mini churros
Contains 3 big churros
Hours of operation:
Monday -Saturday: 12pm-3pm, 6pm-10pm
Alberta Street, Portland
Churros (Mexican Dessert)
2 workers will be hired for serving and preparation tasks.
Alberta Street is next to one of the busiest bus stations and a walking distance of several offices and 3 universities. The street has a great view and is a happening place for people to unwind and interact socially. There are usually a lot of activities being held at this place, attracting hundreds of people. The most wanted and demanded thing at a place, with such a footfall, is food. Currently, there is only 1 dessert cart operating on the street.
XYZ will provide clean, hygienic, and high-quality churros to the customers. All the food will be freshly prepared on the cart. The ingredients will be bought on a weekly basis, except for the dairy products which will be bought daily. The cart will have a stove for deep frying and a refrigerator for keeping the fruits and toppings and dairy products. All the tabletops will be made of stainless steel for easy cleaning purposes.
We are 2 partners currently operating our XYZ Food Cart business. We have been in this business for the past 3 years. We will be managing the Food Cart business.
Our target audience is teenagers and adults, age-group ranging from 13- 40, especially people who are working or studying in the offices and universities nearby.
Market Analysis: Food Cart business is a fast-growing business. It has grown 5% more than the restaurant business in the past 5 years. The basic reason for the success and growth of a Food cart Business is its low initial investment. Moreover, carts are used for marketing and promotion purposes. They offer a chance to taste a variety of cuisines at exceptional locations.
Customer Analysis: Everybody has a hidden sweet tooth whether they confess it or not. The percentage of confectioner Food carts is a lot higher than the Savory Food carts. Consumers prefer trying new flavors and the availability of a wide range boosts the product market growth. Food carts tend to be fresh, fast, and easily accessible. People prefer convenience and reasonable pricing.
Competitive Analysis: We did a little research and found out that there are currently 7 Food carts operating at Alberta Street. Most of the carts sell savory items. We saw an opportunity to sell desserts in the area.
The details of daily fixed expenses are provided below:
Needed sales (Daily): $50-$90
We want both of us to invest $50,000. Expected expense details are:
|Total startup Expense||$50,000|
We have prepared a sales forecast based on our current Food cart business. This will help you make an informed decision.
Average daily Churro’s sales: $158
Average daily Drinks Sales: $60
Average Sale (Daily): $218
Approximate Annual Churros Sales: $49,296
Approximate Annual Drinks Sales: $18,720
Approximate Annual Sales: $68,016
We would like to open more Food carts all over Portland and eventually open our own chain of restaurants.
We would like to seek your approval to proceed with the necessary arrangements. After your approval, we will inform the relevant departments to initiate the process and work on the Terms and Conditions for the future.
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