BUSINESS PLAN

Paboritos Food Truck.

San Francisco Street
Butuan City, ADN 8600

Gabriel Henry C. Aguila

December 20, 2021

Executive Summary
Gabriel Henry Aguila has been in the food and culinary business since 2017. At the
young age of 21, he has established their family-owned Mexican food online business. He was
well-versed in the Mexican culinary scene but what stood out the most from the vast menu of
his online food business is his very own Birria recipe. He plans on playing towards its notoriety
and expanding his specialty to other parts of the Philippines
Mr. Aguila’s Birria recipe has been used in multiple dishes in his food business that
serves Mexican food with a Filipino twist. He plans on making his Birria the center point of his
Food Truck expansion, the Birria itself has a fridge life of 1 week and can last a month when
stored in a freezer. He will be using 16–32oz Styrofoam soup containers to be used by
customers when ordering soup and stew-based products. Regular paper plates will be used for
the more traditional foods like tacos, posoles, enchiladas, and others. The food truck would also
be offering traditional Mexican and Filipino drinks and desserts in 17-24oz cylindrical
containers.
The distribution of the products will be from their very own Food Truck in Butuan City, it
will travel from CSU, Ampayon to Libertad, Butuan, and make 2-hour stops in between travels
to sell their food products infamous parts of the Butuan route.

Background and History

Gabriel Henry Aguila has been in the food and culinary business since 2015. At the
young age of 21, he has established his own Mexican-Filipino fusion food online business. He is
well-versed in the Mexican culinary scene but at the same time incorporates Filipino flavors
which share the same flavor profile with Mexican foods but what stood out the most from the
vast menu of his online food business is his very own Birria recipe. He plans on playing towards
its notoriety and expanding his specialty to other parts of the Philippines through his food truck.
But as of right now he is focusing on taking advantage of his local consumer market.

Description of Products
Mr. Aguila’s Birria recipe has been used in multiple dishes in his online food business
that serves Mexican food with a Filipino twist. He plans on making his Birria recipe the center
point of his Food Truck expansion.
 The Birria itself has a fridge life of 1 week and can last a month when stored in a freezer.
He will be using 16–32oz Styrofoam soup containers to be used by customers when ordering
soup and stew-based products like Birria, Pozole, Mole, and Menudo.
Regular paper plates will be used for the more traditional foods like tacos, burritos,
enchiladas, and others. The food truck would also be offering traditional Mexican and Filipino
drinks and desserts in 17-24oz cylindrical containers namely Agua Fresca and Sago’t Gulaman.

Market Description
Food Service Market: The foodservice market is those businesses that prepare meals
outside of the house. Independent restaurants in the Philippines foodservice market are rapidly
growing which at the same time increases the number of establishments. The foodservice
market in the Philippines is highly driven by the rise in value-conscious consumers willing to try
new restaurants with a wide range of menu options. Those include international and local
cuisines which also cater to increasingly busy lifestyles. With the increasing average age of the
Philippines population from 24.1 in 2015 to 25.2 in 2020, they play towards millennials who are
known to be the biggest spenders.
Specialty Products: According to a study in 2018, Filipinos have a strong preference for
imported products. With the growing sophistication among consumers, demand for gourmet
and healthy foods other food ingredients for home meal replacement is increasing. A recent
market study done by De La Salle University revealed that Filipinos are only willing to patronize
a restaurant offering non-mainstream if the chef, proprietor, or face of the brand hails from
that country.
Food Truck Market: Due to the high rental costs and market cannibalization among
malls and commercial centers, restaurateurs will begin mushrooming in uncustomary sites.
These include food trucks in high-traffic areas, residential villages, commercial spaces in the
upper floors of buildings, and even home dining rooms. (Masigan, 2019)

Competition
Paboritos have no direct competitors in Butuan City when it comes to the food truck
business or the food they serve as the concept of the food and the food truck has not been
done yet in Butuan. But with the introduction of Paboritos Food Truck in the area might start a
trend that might lead to more food trucks being established in the hustle and bustle of life in
Butuan. When we talk about the foodservice market itself, they would be going up against big-
name franchise companies like Jollibee, Mang Inasal, Mcdonalds, Greenwich though they are
not direct competitors of Paboritos they share the same target market which are students,
office workers who are on their lunch break; In a sense, Paboritos would be competing with
them when it comes to satisfying customer needs and cravings.
The strength of these franchise companies is that they are already well-established in
the market and have gained market acceptance due to the name of the franchise itself and the
duration they have stayed in the Butuan consumer market. Due to it being a franchise they can
afford to price their products lower than Paboritos in which our product ranges from ₱75-300
which is a price considerably higher than those of the said franchise companies.
The weakness of the products of the said franchise companies is that they don’t offer
the same amount of mobility as much as our food truck due to the ability of our food truck to
travel on the go from Libertad to Ampayon. Another weakness of the indirect competitors is
that they are limited to the products that the Main Corporation offers and authorize them to
offer, among its weaknesses is that it doesn’t offer the same Mexican and Filipino fusion that
we offer.

Marketing Strategies
Since Mr. Aguila has already established himself in the online food business he assumes
that he will not encounter as much resistance from the people as his product is already known
and well-received. The distribution of the products of Paborito will be within Butuan city only
for the time being specifically along the road of Libertad to Ampayon.
A strategy that Mr. Aguila plans to employ is through the form of Social Media Marketing. He
plans on creating social media accounts for Paboritos where its patrons can leave reviews of the
food and post pictures that promote social interaction between the customer and our brand.
The social media platform can be used to put in reservations or food delivery aside from that it
will also serve as an avenue for Paboritos to update its customers regarding incoming
giveaways, discounts, or schedules. Paboritos would also be handing out flyers with a 10%
discount when presented to the food truck to increase customer interaction and rapport with
them and use word of mouth to increase their popularity.
Aside from social media marketing, Paboritos would also be making a website for people
to put in their party or event reservations, the website will showcase our location schedule to
let them know where we are since our business has no fixed location. It would also provide the
typical hours and locations we park on to let our patrons know our availability and of course, it
would contain the menu of our offerings. Another form of marketing strategy would be our
food presentation, we aim to make our food look visually appealing in that way the food
markets itself through the lens of everyday foodies and food bloggers alike. With this in mind, it
increases the exposure of the food truck to the public and studies have shown that people tend
to pay more when a portion of food is aesthetically pleasing.

Process selection and facility layout

The type of process that Paboritos would be employing is Batch Processing as the
products we offer allows people some flexibility when it comes to the food they want since our
very own Birria recipe would be used as a base for all our other products as well aside from the
drinks they can customize the food they want through our chefs by asking what they want in
their tacos or burritos or maybe in their Birria stew as well. Since our products require a lot
more preparation time than the usual fast food we expect to be experiencing some scheduling
complexity as each product requires different preparation times a great example would be the
Birria itself it requires 2-3hrs of cooking time compared to our enchiladas that require 45mins.
To an hour of prep. time. As you know timing is everything when it comes to cooking products
When it comes to facility layout since we are working out of a truck food preparation
will be made in the house that includes chopping vegetables and meat and cooking of the meat.
The cooked vegetables and meat will then be transferred to the truck to simmer while on the
move along with the necessary condiments. Since we are operating out of a food truck the
layout would be fixed as the constant movement of people and equipment isn’t possible due to
limited space. The truck would be manned by two people, each would be in charge of their
stations, namely the “sopa y guiso station” where soup and stew-based products will be
handled by one of the chefs along with his/her equipment specific to his/her station. The next
station would be the “taqueria station” where tacos, burritos, and enchilada will be served,
each station has its equipment to avoid conflict with the other station and reduce time lag.

Inventory Management System (work in progress)

A system keep track of inventory
We would be using a perpetual inventory system because we can track the amount of
food being sent out the truck through portioning and estimation of the amount of food we
bring onto the truck and how many people it can feed.
A reliable forecast of demand
 As for the forecast of demand we would be using our social media accounts and website
to prepare the amount of food that was reserved by our customers along with that we would
constantly bring onto the truck at least enough food to feed 100 people during the travel stops
we make from Libertad to Ampayon.
Knowledge of lead time and lead time variability
When it comes to lead times and its variability, we have set up a schedule for that.
Preparation process takes around 5 hours in total that included cooking and loading of the
equipment and food onto the truck. After loading we start with the drive from Libertad to
Ampayon and make 2 hour stops in famous and populated areas of the route, we put in place
leeway of 30 mins every part of the process in case that a problem or a variability arises.
Reasonable estimates of
We would also be making estimates when it comes to holding, ordering and shortage
cost. Since we would be making daily trips to the farmer’s market at early mornings to make
sure produce is as fresh as possible our estimated percentage of holding cost would be 30%
which was calculated through:
Holding costs
Ordering costs
Shortage costs
A classification system for inventory items

Supply Chain Management

Since we are a family-owned business and a relatively small food business our supply
chain is much shorter compared to franchise companies. As for our suppliers, we buy our daily
produce for the food truck in a local farmers market as it makes sure that produce are fresh and
pricing is cheaper due to it being bargainable. When it comes to the storage of said produce it
would be kept in the Aguila household until use for preparation at the same day, this process
would be overseen by Mr. Aguila himself and will serve as its SCM manager. Mr. Aguila will also
be responsible for the inventory management and quality assurance along with purchasing and
scheduling for the day. He would be the one to do the daily runs on local markets to buy
produce that is enough to fulfill reservation for the day and serve the people buying on the
route, no outsourcing will be done as the products will be made in house.
Service Plans
Mr. Aguila has been operating through their family’s kitchen to cook for their online
food business and he plans on using it still to cook the food he plans on selling in Paboritos.
Their online business has all the necessary BIR requisites along with Health and Sanitation
permits to operate out of their home. They plan on operating under their own Industrial over
and industrial stove to cook their products, the truck is also equipped with its own industrial
stove to be able to maintain heat and be able to simmer the food while being in the road.
Paboritos also plans on doing drive by deliveries to its customers who booked a reservation the
day before and are also open for party and event reservations.