Business Plan

The Currywurst Van

Gourmet Street Food

Group: Alex Neumann 836100

(Energy Systems)

Fakhri Bohang 863374

(Energy Systems)

Nick Temple 863410

(Energy Systems)

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 1. TABLE OF CONTENTS
2.! Introduction 4!
Background 4!

The Business 4!

Project Ethos 4!

3.! Market assessment 6!

The Market 6!

The Market Potential 6!

Target Market 7!

4.! Competition 9!

Beatbox Kitchen Food Truck 9!

Taco Truck 9!

Gumbo Kitchen 9!

Dhaba Food Truck 10!

Big Moose’s Food Truck 10!

Smokin Barrys Slow Cooked 10!

Cornutopia Taco Van 10!

Souvlaki Cart 11!

Jakob’s Kitchen 11!

White Guy Cooks Thai Mobile 11!

5.! Marketing Mix 12!

Product 12!

Price 12!

Place 13!

Promotion 13!

6.! Trading at Events 14!

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7.! Legal Requirements 15!
Business Registration and Street Trading Permits 15!

The Food Act 17!

Public Liability Insurance 18!

8.! Company Form 19!

9.! Organizational Structure and Functions 19!

Marketing Manager 19!

Operational Manager 20!

Finances and Accounting Manager (FAM) 21!

The Servers 21!

10.! Menu 22!

Van Operation 23!

11.! Cost Calculation 25!

Investment and Depreciation Costs 25!

Financing costs 25!

Consumption costs 26!

Salary Calculation 27!

Labour Costs 27!

Self costs 27!

Revenue 28!

Cash flow 29!

Profitability 30!

12.! Conclusion 30!

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 2. INTRODUCTION

BACKGROUND

Australia doesn’t really have a national dish (shrimp on the BBQ, kangaroo,
crocodile and lamingtons don’t count). It doesn’t have the equivalent of what
pizza is to Italy or what Tacos are to Mexico. But Australian chefs and food
vendors have imported the best and most famous dishes from all over the
world. Melbourne, in particular, has developed a huge culinary scene that
incorporates a fusion of international cuisines. Dinning out and enjoying
good food has become a core part of Melbourne’s culture. Due to this
exposure to gourmet international foods, people who are looking for a quick,
cheap meal are now less inclined to go to a fast food outlet such as
McDonalds or KFC, and are instead searching out alternatives that are
healthier and a bit unusual. As a result, a number of businesses have recently
sprung up offering exactly this – simple, relatively inexpensive, tasty food
that is a bit different and with a strong emphasis on using quality, organic
ingredients.

THE BUSINESS

The idea is to bring currywurst to Melbourne. Currywurst, with its long

history, its humble beginnings and its culture-defining image will fit perfectly
into the Melbourne food scene. It is not a meal for top restaurants but if
marketed as an organic, homemade product it is the perfect fast food for
Melbourne. A shop selling primarily currywurst can be small so we have
chosen a mobile shop, in the form of a Van. This allows us to sell in more
areas of the city and at big events and gives us access to many more potential
patrons.

PROJECT ETHOS

There are a few people in Melbourne already doing a similar thing. The
Beatbox Kitchen and the Taco Truck are both food Vans and both offer a
limited menu of quality, healthy meals (relative to other fast foods). The

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Beatbox kitchen sells burgers, including vegetarian mushroom burger and the
Taco Truck sells tacos.

Both are quite small-scale operations that provide a sort of subsistence living
for the owners. This is to a large extent what makes them so appealing to
Gen-Y Melbournians. Customers admire that the owners appear to be “living
the dream” of owning and operating their own business, doing something
that they enjoy, apparently not working too hard and making some money on
the side.

This is the image that The Currywurst Van needs, but in reality, it can be a
much more ambitious commercial enterprise. Cultural aspects aside, there are
numerous large events held in or around Melbourne where people may be
tempted by a currywurst. Every weekend, at least three games of Australian
Rules Football (AFL) are played at the two large stadiums. At any one time
there will be at least one comedy, art, music, movie or street festival where
people will be gathering in numbers. Currywurst is essentially a very basic
meal that will undoubtedly satisfy the greasy, fried, saucy needs of sports
fans and music-festival goers. And when presented as authentic, gourmet and
homemade, this quintessential German dish could appeal to a range of more
refined customers, from art festival patrons to young hipsters rolling by on
their fixes.

Please note that all costs throughout this document are in Australian Dollars
(AUD).

5
 3. MARKET ASSESSMENT

THE MARKET

Our main target market is set on the young generation of Melbourne

population, those who fall in the 18 to 28 years old age bracket. This is
primarily due to the brand of our product that sets to appeal to this age
bracket. Our product targets the municipality within the inner urban area of
Melbourne whose population’s median age below 30 years of age. According
to Australian bureau of Statistics the population of Melbourne has been
estimated to be over four million as of 2011. Particular age bracket is
projected to grow at a higher rate compared to other age brackets within the
population age structure. Those whose age fall within the age bracket of 18 to
30 years old are estimated to observe this trend and hence effect the projected
median population to weigh towards this age range.

THE MARKET POTENTIAL

The food truck business is arguably the coolest movement in the F&B
industry currently happening in Melbourne. Since the ignition of Taco Truck
and Beatbox Burger in Melbourne F&B business, both being the mobile food
van equipped with complete kitchen serving tasty food on the go, the food
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 truck trends has rippled and, since, established a certain lifestyle tag to those
who subscribe to their mobile food providers. Currently there are more than
ten active and competitive food trucks in the Melbourne food truck business.

Induction to the market primarily by virtue of social networking platforms

such as Twitter and Facebook, helps create a “cool” image, which appeals
largely to young customers. The unprecedented presence of the young
Internet users who spend most of their cyber activities within social network
platforms suggests an opportunity for an inexpensive but effective marketing
campaign through this platform. Establishing brand awareness through social
network can help retain potential young customers through online presence.
This is of course to be emphasized through appealing brand images such as
logo, tagline and overall theme of the product.

The two current most prominent players of food truck business in Melbourne
are namely Taco Truck and Beatbox Kitchen. Both have already established
brand image and have retained loyal customers who identify well with the
brand and the product. The idea of enjoying food on the go after disclosure of
location online induces a food-truck lifestyle that has successfully developed
by both early movers, Taco Truck and Beatbox Kitchen. Thus, tapping into a
business that has a lifestyle label tagged on it, we, The Currywurst Van, being
the second-mover in the industry, has advantage on the already excited
market who is responsive to the “new-comer” and hence focus should be on
creating online presence through brand image and product positioning and
differentiation.

Other advantage that we have in the potential market is the non-currently

available German gourmet food within this food truck business. This helps
creates market buzz by exciting curiosity within the potential market.
Melbourne food grower has always been positively responsive towards exotic
food choices. And hence being a food truck offering German currywurst in
the Melbourne food truck market proposes a positive and lucrative business
case.

TARGET MARKET

We mainly target the young generation of Melbourne, those who are

categorized under the Y-Generation label. They are primarily within 18 to 28
years old age bracket. We set our target on this age bracket primarily because
of the mentality of the Y-Generation, which is parallel with the philosophy
behind our product and brand. Generation-Y those born in the realm of
information technology revolution where people are connected,
bombardment of information and commercial products are adamant. These
affect traits imbued within those belonging to this generation that differ to
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that of previous generations. Traits such as entitlement, non-conforming, and
ambitious are evident within this generation. These of course influence their
decision in consuming a certain product and subscribing to certain lifestyle.

Products such as Facebook, Twitter and iPhone are products popular among
this generation. Strong brand imagery, values identifiable with the restless,
ever-connected, gen-Y help such products achieving tremendous success in
gaining popularity among this generation. Commitment and consistency in
providing the intended perceived values towards the Gen-Y help as well such
products to retain customer loyalty.

Entering a food truck business, with existing market in Melbourne, the real
challenge for our business marketing case is to attract customers to gain
market share alongside with pre-existing competitors. While providing good
quality food with affordable and competitive cost to our customers is
essential, we believe that developing a brand image and values that appeal to
our target market is necessary. Hence, we aim not only to serve tasty
affordable exotic gastronomy from Germany, but also to provide unique
experience and lifestyle to our customers, and provide value entitlement that
is identifiable to them. Therefore we focus our marketing plan on developing
our marketing mix that essentially and continuously working, developing
and delivering brand imagery, perceived value, and quality products to our
customers.

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 4. COMPETITION

Currently there are about ten food trucks operating in Melbourne. While,
from the point of the origin of food that we serve, we do not currently have
direct competitors, these various options provide substitutes for our target
market to our products. The followings are the ten food trucks:

BEATBOX KITCHEN FOOD TRUCK

It is one of the oldest running and pioneer of the food truck trend in
Melbourne. This gives the business of tapping into a, then, unsaturated
market and hence has since acquired loyal customer to date. The primary
menu offered by Beatbox Kitchen food truck is primarily burger with
accompanying fries and coke as a drink that together sell for $18. The success
of beatbox kitchen is contributed a lot to its good tasting raph burger, which
as well serve as their trademark product. The idea of publishing their
operating location just a few hours before selling their goods via Facebook
and twitter adds ingredient of mystery to their business operation, which
sells well to their targeted market. They operate in the various spots within
area of Carlton North.

TACO TRUCK

Taco truck is another truck that is owned by the same owner of Beatbox
Kitchen truck. It diversifies from beatbox kitchen in the menu offered.
Predictably, the Tack truck provides option for those with Mexican appetite.
Being under the same ownership, the way that it was operated and marketed
are similar to that of beatbox kitchen food truck. A typical menu consisting of
Taco and drinks would cost between $8 up to $14 depending on the size of
the taco and drink. The business operates in the area of Collingwood.

GUMBO KITCHEN

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 Gumbo kitchen enter the food truck business as of December 2011. It offers a
trademark “Po’boy” and “Gumbo” within the price range of $11 up to $13. A
complete menu of Po’boy or Gumbo with a lemon ice sold within the price
range for $15 up to $17. The truck can be found within the inner north
(Thornburry and Northcote) or at Lux Foundry in Brunswick after-work each
Friday.

DHABA FOOD TRUCK

Dhaba food truck serves a mixture of northern and southern India gourmet
with changing menu every two weeks. In any given business operation day
they serve various entrees and about six different types of curries. They cater
both meat lovers and vegitarians. They operate in Woodlend and
Castlemaine. For a typical full meal of Papadi chat, a curry with chosen beef
or chicken and drink, it costs within the range of $22 up to $25.

BIG MOOSE’S FOOD TRUCK

Serving uncomplicated American menu such as hot dog, fries and burger. It
primarily operates within the CBD area and the price range is quite
inexpensive that for a decent meal one may fork out $10.

SMOKIN BARRYS SLOW COOKED

They offer barbeque meat product under the tagline “You don’t need teeth to
eat our menu”. It is suggesting a special technique of barbequing that ensures
a succulent quality of the grilled meat. Apart from the typical usual food
truck operation within the CBD area, they also offer catering for parties and
charge $27.95 per head count for 50 or more people and $29.95 per head for 30
– 49 people. The price range for a typical meal offered within their menu is
between $15 – 25.

CORNUTOPIA TACO VAN

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 It offers Mexican food such as tacos, nachos and corn in el cupo. It operates
within CBD (Central Business District) area and offers price range between $8
up to $15.

SOUVLAKI CART

It brings in Geek and Mediterranean food into the various choices within the
food truck market in Melbourne. It operates in CBD area and offer a price
range $10 up to $18 for a set meal.

JAKOB’S KITCHEN

It serves Kransky and Chevapy. It concentrates its operation around CBD

area. The price range is around $8 up to $10.

WHITE GUY COOKS THAI MOBILE

The white guy cooks Thai food truck provides choices of food coming from
countries such as Thailand, Japan and Korea. Its location varies within the CBD
area and it offers food within the price range of $10 up to $15.

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 5. MARKETING MIX

PRODUCT

Primarily our product is a gourmet German gastronomy, Currywurst,

prepared in a mobile kitchen of a food van and sold to customers on the go.
We provide an experience of German gourmet, currywurst, on the go to the
curious food truck lovers of Melbourne. We aspire to spread our passion of
German currywurst by establishing a product that identifies with our
customer’s craving for entitlement to belong to “a cool, alternative young
community”.

Apart from our core products, being the tasty quality food product, we
extend our product presence to the cyber world via catchy website that serves
as our online community forum that linked to our Facebook page and twitter
page. The website enable our customers to engage to one another, to get
informed on the coolest hangout places in Melbourne, the events to go, and to
simply share their favorite Currywurst experience with one another. We are
aiming to gain enormous online presence by acquiring voluminous followers
that is targeted to be our loyal customers. This is achieved by extensive online
campaign and online marketing via social media platform and edgy website.
Our website’s features include a landing page that contains basic information
and menus offered, galleries that showcase our customer’s “currywurst”
experience in the form of photos and videos, blogs to keep our customer’s
updated on our location and the different events we go to, newsletters, and
customer’s forum.

PRICE

We are to adopt the “price-skimming” strategy to our product. Our

marketing campaign and online presence are targeted to build customer’s
curiosity during the introduction phase of our product to the food truck
market in Melbourne. Being the second-mover in the food truck business
industry in Melbourne gives us an advantage on gauging the customer’s
behavior towards price variability and products offered. The trend shows
that Melbourne food truck lovers are responsive and excited about new,
“exotic” food options that come to the market. This is suggested by the

12
 various kinds of food offered in this industry following the initial success
observed by both Beatbox burger and Taco Truck. Various trucks such as White
Guy Cooks Thai Mobile Truck, Dhaba Food Truck, Souvlaki Cart, and among a few
more other that offers gastronomy of exotic origins such as Thailand, India
and Greece to the Melbourne food truck market. Bringing in yet another food
option to the food truck with price-skimming strategy helps us, Currywurst
Van, to deliver a perceived value of good quality gastronomy product from
Germany to an anticipating market. We also provide special price with bulk
ordering such as that for catering or private events.

PLACE

Through out the year Melbourne youngsters are busy with activities
comprising from cultural to musical festivals. This provides a solid platform
for the Y-generation of Melbourne to meet those of their kinds, excited about
the same interest and gives entitlement to these youngsters. Events such as
those would be our main targeted places to sell our tasty Currywurst. Apart
from youngsters events, we also cater to muggers in universities during
certain periods. We believe our online presence and catchy van would attract
our targeted young customers who identify well with the quality and value
we offer through our tasty currywurst.

PROMOTION

Our promotion, during the introduction phase will be done through our
online campaign such as that via facebook and twitter. Catchy website and
online presence is to be achieved by online campaign such as getting our
product reviewed by popular food blogger of Australia, online food websites,
and some online portal that keeps the young people informed of the newest
and latest events. This means of promotion will be done intensively as we
believe is the most cost effective means of promotion to market our product
especially to our targeted young market, which form the majority of Internet
users.

We will also print limited free vouchers during the first two weeks of our
operation to be exchanged with some items of our menu. These vouchers are
to be distributed in schools, universities and youth hostels. It is targeted to
capture our first batch of customers expected to be the catalyst of “word-of-
mouth” marketing.

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6. TRADING AT EVENTS

There are three main sports stadiums in Melbourne. These are the Melbourne
Cricket Ground (MCG), Olympic Park (OP)– where the Australian Open is
held, and Etihad stadium. The MCG and Etihad regularly hold sporting
evens and they all hold numerous concerts and corporate conventions
throughout the year. There are often small food vendors operating outside
these stadiums, but these vendors are generally part of national or
international organisation that has a corporate affiliation with the stadiums
management group or catering group. So while we will not be able to trade at
the ground we might, with the relevant approvals, be able to setup in a
location where large numbers of sporting fans pass before and after the game.
For example between the sport stadium and the nearby train stations.

An important component of Melbourne’s sporting calendar is the Spring

Racing Carnival where Melbourne hosts a series of top-class horse races,
including the infamous Melbourne Cup. Again for these events there are
large numbers of people (often drunk) taking public transport to and from
the racetrack.

The music festival organisers (organizing festivals around Melbourne) always

contract a number of small food businesses, similar to ours, to serve to their
patrons. We have received indicative quotes from a number of festival
organisers that are in the order of $3000 for a 3-day event.

It will also be possible to trade at the many street festivals and the cost is
estimated to be in the same order, approximately $1000/day.

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 7. LEGAL REQUIREMENTS

BUSINESS REGISTRATION AND STREET TRADING PERMITS

Operating a mobile food van in Melbourne requires various permits from

local councils. All councils across victoria use a central online system to
handle the registration of mobile food vans. In this system you only need to
register your business in one council, your Primary Council, but you are
allowed to trade in all other councils. However, separate to this, each council
requires a trading permit that must be obtained before you can operate in that
council. Follow is a map of Melbourne and it’s city councils.

Melbourne City Council Borders

The permit varies depending on which area you want to operate in. The inner
most council is called the City of Melbourne contains the CBD and
surrounding streets. It has a different system of regulating mobile food
traders than the surrounding councils. It only allows trading in 9 specific
locations. Permits are available for one location only, they last 3 years and the
next period starts in 2014. There is an online tendering process, to obtain one
of these permits, and one must demonstrate how the business will contribute
15
to the Melbourne community and to tourism. These 9 locations do not allow
us to access our main target markets so we do not plan to operate in this
council.

The surrounding suburbs are where we find a large university crown and
many young professionals. This is where our Gen-Y target market is
concentrated.

From the City of Yarra and the City of Moonee Valley councils we can access
the pedestrian traffic to and from the MCG and the Flemington racecourse
(home of he Melbourne Cup.

The principle council is defined as:

• The district in which your business prepares or stores food that is
to be sold from a van, stall or vending machine; or
• If food is not usually prepared or stored beforehand by your business
- the district in which you usually store the equipment for a stall, or
garage your food van or water transport vehicle,

Moreland will be our principle council as this is where the van will be
garaged. The permit costs are ~$350 per year. Registration costs for other
councils is provided for information, in the following table.

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!"#$%&'%(&&)**%+,--*$ ./01
!"#$%&'%(&2*-,)3 4.567
!"#$%&'%8,22, 9./67
!"#$%&'%:&2#%:;"--"< .=77
9%!&>)?"-%;,@%)&#%$*#%3*#*2A")*3%,%<2"?")B%@?;*A*%
C>#%'**@%D"--%,<<-$E%F;*%?&@#%@;&D)%"@
%&>2%,@@>A*3% ?&@#E

Based on the close proximity to our principle council and the access to our
target markets we have decided to operate in, and require trading permits
for, the following 3 councils:

- City of Moreland

- City of Yarra

- City of Moonee Valley

The permits last for 1 year and are as shown in the following table.

16
 !"#$%#&'()*+,$%#') -"./#$0)!("1#2)3((
!"#$%&'%(&&)**%+,--*$ ./01222
!"#$%&'%(&3*-,)4 /51622
!"#$%&'%7,33, /01222
!"#$%&'%8&3#%89"--":.. /01222

.%=**4>%#&%?*%)*@&A",#*4%B"#9%A&C)A"-D%E9*%
A&>#%>9&B)%">%&C3%,>>C<*4%A&>#D
..%;&3%")'&3<,#"&)

Once registration and local permits are obtained it is necessary to also lodge a
Statement of Trade 5 days before trading. This is to notify the local council of
the time and location that you will be trading. This can simply be done online
though the same central online system as for registration.

THE FOOD ACT

Under the Australian Food Act the van will be Food Business Class 2. As a
result the business needs a food safety supervisor and a food safety program.

The food safety supervisor is someone who has completed the follow food
safety training courses and obtained a Statement of Attainment issued by a
registered training organisation (RTO):

• SIRRFSA001A - Apply retail food safety practices

or;

• SITXOHS002A - Follow workplace hygiene procedures, and

• SITXFSA001A - Implement food safety procedures

A food safety supervisor needs to be present whenever the food is being sold.
The above courses can be completed online for approximately $250. The
following table gives some specific examples.

!"# "$%&'&'()*+,- .+-/,

!"#$ %&'( )*+,*-
./#0,123++,!*4- %5(6 &27!/2"8!,*,*9
:*;14<= %>?6 )*+,*-

A food safety program is simply a set of records that need to be kept and
which indicates that safe food handling and preparation practices have been
adhered to. The local council provides guidelines and templates that can be

17
 used. There are no costs associated with this, other than labor costs, however
it will be an important administrative task.

The construction and fit out of the van must be in accordance with the
Australian food Safety Standards. The registered tradesman that will do the
work on the van will need to provide certification that the work has been
done in accordance with the relevant standards.

PUBLIC LIABILITY INSURANCE

Generally the trading permits issued from the local councils will require
Public Liability Insurance of $10,000,000. This is specifically noted on the
registration form (for Primary Council) for the City of Morland and City of
Yarra Councils.

This is available from, for example, Australian and New Zealand Nationwide
Insurance Services, for $780 per annum. This company indicates that the
going rate is around $1200 per annum. We will assume this value of $1200 per
annum.

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 8. COMPANY FORM

To protect our personal assets we will form as a Limited Liability Company.

There is no minimum share capital required Australia, however in-line with
good business practices the partners will put up approximately 40% of the
investment costs. There are 3 business partners contributing equal shares to
the capital and receiving equal share of the dividends. The 3 partners will
also contribute actively, as the managers, in the running of the business.

As a Limited Company we will be required to register the Company and

company name with the Australian Security & Investment Commission
(ASIC). In doing so will an Australian Company Number (ACN). This costs
$70 for 3 years.

Obtaining an Australian Business Number (ABN) is not compulsory but is, in

general, helpful for the administration of the business. In particular when it
comes to company payments and tax related administration. The Currywurst
Van will obtain an ABN and it is free to do so.

9. ORGANIZATIONAL STRUCTURE AND

FUNCTIONS

Primarily the organizational structure consists of two levels of hierarchy that

is management and servers. The management consists of three personals with
equal distribution of power each carries out different functions and roles in
the business to ensure day to day objective and as well as sustainability of the
business operation are to be achieved. The following management functions
are elaborated as follows:

MARKETING MANAGER

The marketing manager primarily is responsible for any activities within the
company involving publicity, branding, and online development as well as
maintenance of The Currywurst Van. Its primary function is to set a target

19
 acquired customers each mind by developing a semester plan of different
marketing activities that is expected to meet this target. The marketing
manager creates monthly budget plan for marketing activities needed for
each month. On a day-to-day basis the marketing manager carries out
maintenance function of the website and must meet online objective to the
expected traffic driving to our website. This is done by virtue of social media
marketing, blog entries, and responses to enquiries or any inputs of any mean
from our customers or future potential customers. The marketing manager
also creates a yearly plan of potential venues of operation such as in festivals
and events. The yearly plan must content sufficient marketing research that
shows weather the expected target market and forecasted volume of revenue
justify the cost of operating in such events.

Marketing manager also carries out a procurement functions that the person
is responsible for outsourcing companies, such as that logo design, theme
design, or any other marketing material such as web designer and or web
developers. The procured companies are expected to provide the most cost
effective and efficient for the rendered services to meet The Currywurst Van’s
marketing objectives.

Marketing manager is also responsible for any publicity and publications to

penetrate the food truck market in Melbourne.

OPERATIONAL MANAGER

The operational manager is the only function in the company that has direct
subordinates. The operational manager is responsible in managing the
operation during the serving dates throughout the year. The manager is
responsible for operational logistics such as the amount of raw materials to be
made available during operation, the rotation of the inventories, the number
of staffs to be dispatched, and so on. It also carries out inspection or in other
words controlling function to ensure that operation is going smoothly and
that the servers carry out their duties with their best possible behavior.

The operational manager recruits the servers of The Currywurst Van’s. These
servers are dynamic young students between the age of 18 to 25 years who
work on part-time basis and paid minimum wage of $15/hour. The
operational manager must be able to know his or her recruits and flexibility
of working availability. The operational manager must ensure that there is
enough quantity of available servers within the pool of servers to be
dispatched in any operating days. The operational manager also must be able
to predict the turn over rate of part timers and must ensure that sagging of
servers supply to be avoided.

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 The operational manager makes the check of daily inventories of the end of
each day of operation by checking the physical amount and as reported by
the servers. Also every two weeks stocks in raw material for cooking and
making sure that fuels and gas are sufficient.

FINANCES AND ACCOUNTING MANAGER (FAM)

The FAM is an important part of the management team. Essentially every

bills, checked, cash registry must be reported to the FAM. The FAM also
ensures that the financial needs are met at all time. The FAM must ensure
there are enough cash during operation. Apart from it, FAM also carries out
the bookkeeping function that is primarily accounting function of the
business.

Apart from accounting and finances related activities, the FAM also
responsible of the acquisitions of necessary certification and legal documents
in order for the business to be allowed for operation.

THE SERVERS

Under the management the servers carries out serving functions during the
operation of the food truck. The servers are employed on a part time basis
and recruited by the operational manager. The servers are student between
the age of 18 and 25 years old. They form a pool of students managed under
the operational manager. The servers, who normally would be students, have
flexible hours and should not exceed the maximum amount of hours allowed
as a part time worker in Melbourne, which is 37 hours per week. One
operation day or one shift is estimated to be 8 hours, and hence the maximum
amount of shifts per server allowed in one week amounts to four and a half
shift per week or 18 shifts per month. Given our working operation days that
would only amount to four shifts per week 16 shifts per month and 176 shifts
per year (we calculate only 11 working operation months).

The number of servers dispatched are two servers during regular days and
four servers during non-regular days such as festivals and events where
volume of the potential customers are estimated to be double the number of
regular operation days.

The operation manager manages the number of servers in the pool.

21
 The tasks of the servers apart from the serving the customers, also to keep
record of the raw material used and later to be reported and confirmed by the
operational manager at the end of every operational days. The server also
prepares the meal to be served to customer and ensure that the quality
produced to be consistent. The server is the most important part of branding,
as they are the face of the food truck. Thus the best possible behavior in
serving and carrying out good spirited young attitude are expected to be
observed at all times.

10. MENU
We offer dishes that are popular in Germany and. The variety is not so large
because we want to keep the costs for the ingredients and the time for
preparing the dishes as low as possible, but do not want to save money on the
quality of the food. For preparation we need only a deep fryer and a cooking
plate with pans and pots. In addition we need a fridge and a coffee machine
and some auxiliary gadgets that will help in preparation. The Menu looks like
this:

For meat lovers:

Currywurst

Cutlet (Schnitzel)

Currywurst on Spit

For Vegetarian :

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 Arme Ritter (Eggy Bread)

Potato Fritter

Potato Salad With Oil

Dessert
Cellar Cake (kalter Hund)

Topping and Sauces:

Apple Sauce, Curry Sauce, Chilli Sauce, Sour Cream, Ketchup, Mayo,
Vinegar, Fresh/Dry Onions
Drinks
Coffee, Cola, Fanta, Mineral Water, Juice

The following ingredients are needed to prepare the items in the menu:

Chips, potato wedges, potatoes, potatoes in their jacket, oil, instant stock, salt
with herbs, paprika, pepper, curry spice, salt with garlic, sugar, cinnamon,
mustard, water, vinegar, palm oil, vanilla sugar, cacao powder, coconut
rasps, Bavarian veal sausages, schnitzel, curry sausage, onion, tomatoes,
green paprika, white mushroom, cucumber, red paprika, spring onion,
tomato paste, ketchup, flour, eggs, milk, butter, shortbread, coffee. !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

VAN OPERATION

For our day-to-day trading (ie. not at a special event) we will have permission
to trade in 3 Councils of Melbourne. People can vote through an online
system (Facebook or our website) to tell us where they would like us to stop
and sell our food. This way we will be able to go where the most customers
are. We will sell our food approximately 4 days per week for 11 months of the

23
year (176 days per year). So the route is going through 3 councils of
Melbourne on normal days. For these days there will be 3 Servers operating
the Van and the Operations Manager will help out as required. In addition
we can count on trading at one event each month. At event days the
operation might need an extra staff member

The operational costs (or variable costs) are spitted into the following cost
centers:

• Fuel for van and generator

• Gas for food preparation
• Water for food preparation
• Food ingredients
• Waste-handling
• Salary for the casual employees (the Servers)
The fuel costs are calculated according to a fuel prize of $1.45/liter. The
annual fuel use of the van and the current generator is estimated to be around
2640 liters.

The gas for food production is used to supply the cooking plate and the deep
fryer with heat, as well as fueling the generator when required. For our
purpose we can count with a consumption of one medium sized camping gas
vessel for one working day. Camping gas vessels can be bought in the
surrounding area of Melbourne for about $20/9kg ($20/20liters).

A sink and drinking Water must always be available by law. So we stipulate

the costs for water to an amount of $2/day.

24
 11. COST CALCULATION

INVESTMENT AND DEPRECIATION COSTS

Following are our investment cost estimates. Depreciation rates have been
obtained from the Australian Tax Office. The corresponding depreciation
costs are also given.

!"#$%&'%() *+(,)'- !"&."$%/'%()-%)-0-&1/1 !"&."$%/'%()-2(#'#

3.(4,$'%()-56,%&+")'- "########################!
$%& "##'()(((*(( +,*-(. "###############-)(((*((
/01#23345&6#078590:0&; "####-)(((*(( +(*((. "##################-((*((
$%&#:3<5=52%;53&>#13?4 "####-)(((*(( +((*((. "###############-)(((*((
@0&0?%;3? "####A)(((*(( -*((. "##################+-(*((
@0&0?%B#C3345&6#078590:0&;D8;0&>5B> "####+)(((*(( -(*((. "##################-((*((
7'8".
E33<#>;3?%60#078590:0&; "####,)(((*(( +(*((. "##################,((*((
F==520#G7859:0&; "#######,((*(( ,(*((. "####################'(*((
H0I>5;0 "####+)A((*(( +((*((. "###############+)A((*((
J?%5&5&6 "#######-((*(( +((*((. "##################-((*((
K&0L902;0< "####,)(((*(( (*((. "########################!
C5?28B%;5&6#C%95;%B "##+()(((*(( (*((. "########################!
9('/:-;)<"#'+")'-2(#'# @-=>?>>>1>> @-------------AB?AC>1>>

FINANCING COSTS

Based on the above investment cost estimate, a loan of $40,000 will be sought.
The remaining $30,000 will be put up by the partners. The following yearly
repayments will be required.

!"#$ %#&#'(")*+),"-. /'."$"0.)1#.") /'."$"0.)(*0.)23#3 1"2#45"'.)23#3

! &'''''''"#$###%## !#%##( &'''''''''''''''''"#%## &'''''''''')$*#+%,-
- &'''''''..$*.#%!, !#%##( &'''''''''''''''''..%*. &'''''''''')$*#+%,-
. &'''''''-/$#*.%+# !#%##( &'''''''''''''''''-/%#* &'''''''''')$*#+%,-
" &'''''''-#$*/!%!" !#%##( &'''''''''''''''''-#%*/ &'''''''''')$*#+%,-
* &'''''''!"$#,!%,+ !#%##( &'''''''''''''''''!"%#, &'''''''''')$*#+%,-
) &'''''''''/$*,)%!) !#%##( &'''''''''''''''''''/%*+ &'''''''''')$*#+%,-
/ &'''''''''!$#,.%+. !#%##( &'''''''''''''''''''!%#, &'''''''''')$*#+%,-
, 0&'''''''''*$"-"%,# !#%##( 0&'''''''''''''''''''*%"- &'''''''''')$*#+%,-
+ 0&'''''''!!$+"#%#" !#%##( 0&'''''''''''''''''!!%+" &'''''''''')$*#+%,-
!# 0&'''''''!,$")!%,# !#%##( 0&'''''''''''''''''!,%") &'''''''''')$*#+%,-
6*.#& :))))))))))))))789389 :)))))));<=8>937;

25
CONSUMPTION COSTS

Our estimates of the production costs of each menu item are provided in the
following table along with the other consumption costs. We have also
estimated the daily sales / usage to give an overall daily consumption cost.
This will be used in following calculations. This is our estimate maximum,
average consumption costs per day and is based on the numbers of expect
sales and the expected spread of sales across the menu items.

!"#$%&'()$*+',$-.') /01,*#$-*2,$+ !1,.+',$&*34+($-*50)&*#$-*56.7, /01,*#$-*56.7,

8$%4*2,$+
!"##$%&"#'( ,--------------)*)+ .+ ,-----------//*++
01234(567 ,--------------)*.+ 8) ,-----------9:*/+
!"##$;"#'(-'<6;6# ,--------------)*8+ 8= ,-----------9=*8+
>#?6-@4((6#-A6BB$-C#6DEF ,--------------)*++ =G ,-----------8+*++
HI(D(I-J#4((6# ,--------------=*K+ )G ,-----------.9*G+
HI(D(I-'D7DE-;4(2-I47 ,--------------=*/+ =+ ,-----------=/*++
1677D#-1D<6-A<D7(6#-L"3EF ,--------------=*:+ =+ ,-----------=:*++
E#43<'-ADM6#DB6F ,--------------=*)+ 9+ ,-----------/.*++
9110:.',$&*;.1#01'()$*2,$+1
!"H' ,--------------+*+) 9+ ,-------------=*.+
N7D(6' ,--------------+*+) =:+ ,-------------8*)+
!"(76#$ ,--------------+*+) =:+ ,-------------8*)+
06#M46((6' ,--------------+*+) 8++ ,-------------:*++
<,.).,.$1
OD'-A74(#6'F ,--------------=*++ 8+ ,-----------8+*++
&D(6#-AH6#-<47I74(#6'F ,--------------)*++ = ,-------------)*++
P"67-1I'(-AH6#-74(#6'F ,--------------=*.G =G ,-----------)=*9G
=,6$-1
QD3-?D43(63D316-1I'(' % =+ ,-----------=+*++
!II<43B-6R"4H?63(-#6H7D16?63( % =+ ,-----------=+*++
>E?434'(#D(4I3-IM6#26DE' % ) ,-------------)*++
!76D343B-74R"4E'-S-6R"4H* % = ,-------------=*++
>0,')*/0%14+#,.0%*:01,1*#$-*56.7, C*********?@@AB?
>0,')*/0%14+#,.0%*:01,1*#$-*D$'- C***EBFGEGAHI

26
SALARY CALCULATION

The three partners / managers will be part-time employees as the work

involved does not amount to a full time job. They will have a fixed yearly
salary and have performance requirements and responsibilities set out in
their contract. The Servers will all be employed on a casual basis at a rate of
$15/hr. By law Casual employees need to be paid 1.5 times their hourly rate
on Sundays and 2 times their hourly rate on public holidays. This introduces
some uncertainty, as we need to estimate how many public holidays are
worked. We estimate that the casual staff will cost the company an average of
$25/hour including superannuation and tax payments.

! "#$%$&'!(%$%)'* +,'*%-#.$/!(%$%)'* (%*0'-#$)!(%$%)'*

1)*''2!3%4%*5 %&&&&&&&&&&&&&!"###$## %&&&&&&&&&&&&&&&&&'#"###$## %&&&&&&&&&&&&&&&(#"###$##
6'27&-#.$/
37,'*%$$7%-#.$!
8*'-#*'9'$-!,%5:;!<= %&&&&&&&&&&&&&&&&)!#$## %&&&&&&&&&&&&&&&&&&&("*##$## %&&&&&&&&&&&&&&&&&&&&+##$##

>$&.9'!?%@!A%-' # (+, #
>$&.9'!?%@ %&&&&&&&&&&&&&&&&&&&&&- %&&&&&&&&&&&&&&&&&&&."*##$## %&&&&&&&&&&&&&&&&&&&&&&&&&&-

3%4%*5!B'- %&&&&&&&&&&&&&)"!!#$## %&&&&&&&&&&&&&&&&&()")##$## %&&&&&&&&&&&&&&&&&+"(##$##

LABOUR COSTS

!"#$%&&"' (%$)*+"#*,%-# .-/0"# ,%-#$*1%#2"3 450%-#*(%$)

!"#$"#% *++++++++++++++&'()) , - *++++++.))())
/01213"+42125"# *++++++++++++++++++6 7 6 *++++++++&-(87
9:"#2;0<1%+42125"# *++++++++++++++++++6 7 6 *++++++77,(.8
42#=";015+42125"# *++++++++++++++++++6 7 6 *++++++++'.(-&
6%)5'*758'9*:5'5#9*(%$ ) @******;<=>=?

SELF COSTS

The utilization of capacity factor in the following calculation of self costs is

included to represent our growing number of customers in the first few year.
It also represents the fact that we are not expecting to have the opportunity to
work as all the festivals we would like to in the first few years.

27
 ! "#$!%&'( )*+!%&'( ,(+!%&'( -$.!%&'( /$.!%&'(
!"#$#%&"#'()'*)+&,&-#"./ 012 312 4112 4112 4112
56&7#(8)9&.% 4:0 4:0 4:0 4:0 4:0

0$.!%&'( 1$.!%&'( 2$.!%&'( 3$.!%&'( "4$.!%&'(

4112 4112 4112 4112 4112
4:0 4:0 4:0 4:0 4:0

56#$# 56#$!7&(!8('+9*:!+'% "#$!%&'( )*+!%&'( ,(+!%&'( -$.!%&'( /$.!%&'(

9;,6;-#&"#'()+'%"% ?)))))))))))))))))))))))))))) <=>41 ?))))4<@4A1>11 ?))))))0@<A1>11 ?))))))B@3A1>11 ?))))))B@3A1>11 ?))))))B@3A1>11
C#(&(-#(8)+'%" ?)))))))))))))))))))))))))))) 4D>=0 ?))))))D@111>11 ?))))))<@:DA>1= ?))))))<@D:=>AD ?))))))<@40A>=B ?))))))=@3<B>4A
E&F'G6)+'%"% ?)))))))))))))))))))))))))):B1>A< ?))))3D@<01>11 ?))44=@D31>11 ?))4D1@011>11 ?))4D1@011>11 ?))4D1@011>11
H&I)J&";6#&$%)K)!"#$#"#;% ?))))))))))))))))))))))))))DA1>3= ?))))BB@4<A>1D ?)))):<@B43>:= ?))))A4@3A3>D1 ?))))A4@3A3>D1 ?))))A4@3A3>D1
L&()H;8#%"6&"#'()&(7)H;(;I&$// ?)))))))))))))))))))))))))))))) =>3D ?)))))))))B11>11 ?)))))))))B11>11 ?)))))))))B11>11 ?)))))))))B11>11 ?)))))))))B11>11
MG%#(;%%)H;8#%"6&"#'()&(7)H;(;I&$// ?)))))))))))))))))))))))))))))) =>4< ?)))))))))<:B>11 ?)))))))))<:B>11 ?)))))))))<:B>11 ?)))))))))<:B>11 ?)))))))))<:B>11
E'-&$)56&7#(8)N;6O#"%// ?)))))))))))))))))))))))))))) <=><A ?))))))B@:11>11 ?))))))B@:11>11 ?))))))B@:11>11 ?))))))B@:11>11 ?))))))B@:11>11
PQ;(")56&7#(8)N;6O#"% ?))))))))))))))))))))))))))4DD>=1 ?))))40@=11>11 ?))))=4@011>11 ?))))=:@111>11 ?))))=:@111>11 ?))))=:@111>11
86$'; >!!!!!!!!!!!!!!!!!!!!!!!"<-03=02 >!"13<-0-=4- >!))-<,")=1- >!)1/<-,0=,- >!)1/<",)=0/ >!)1-<132=/3
/5S;)G"#$#%&"#'()'*)-&,&-#".)6;,6;%;("%)'G6)86'I#(8)-G%"'O;6)
0$.!%&'( 1$.!%&'( 2$.!%&'( 3$.!%&'( "4$.!%&'(
F&%;>) ?))))))B@3B1>11 ?))))))B@3B1>11 ?))))))B@3B1>11 ?)))))))))3B1>11 ?)))))))))3B1>11
//N;6O#"R6;8#%"6&"#'()#%).;&6$. ?))))))=@D0:>:< ?))))))=@10<>B= ?))))))4@043>3A ?))))))4@4=A>31 ?)))))))))BA4>31
///)M&%;7)'()&()&Q;6&8;)'*)4>B);Q;(")7&.%),;6)O'("S)T)"S;) ?))4D1@011>11 ?))4D1@011>11 ?))4D1@011>11 ?))4D1@011>11 ?))4D1@011>11
!"#$#%&"#'()*&-"'6@)&(7)&(7);Q;(")"6&7#(8)-'%")'*)?4111R;Q;(") ?))))A4@3A3>D1 ?))))A4@3A3>D1 ?))))A4@3A3>D1 ?))))A4@3A3>D1 ?))))A4@3A3>D1
?)))))))))B11>11 ?)))))))))B11>11 ?)))))))))B11>11 ?)))))))))B11>11 ?)))))))))B11>11
?)))))))))<:B>11 ?)))))))))<:B>11 ?)))))))))<:B>11 ?)))))))))<:B>11 ?)))))))))<:B>11
?))))))B@:11>11 ?))))))B@:11>11 ?))))))B@:11>11 ?))))))B@:11>11 ?))))))B@:11>11
?))))=:@111>11 ?))))=:@111>11 ?))))=:@111>11 ?))))=:@111>11 ?))))=:@111>11
>!)1-<,3"=", >!)1,<320=3) >!)1,</-)=)3 >!)02<4/,=)4 >!)01</"/=)4

REVENUE

Using the predicted number of sales (discussed in the Consumption Cost

section) we have calculated our average daily income based on the menu
prices given in the following table.

!"#$%&' ()#*+!",- !.",)&+(/#)+0123) 4-)%+,/#),+5)1+6/7 8)9)&$)+5)1+6/7

!"##$%&"#'( ,----)*)+ ,--------------------.*++ /+ ,---------------0)+*++
12345(678 ,----)*/+ ,------------------9+*++ 0) ,---------------0)+*++
!"##$:"#'(-';7:7# ,----)*0+ ,--------------------<*++ 09 ,---------------)=<*++
>#?7-@5((7#-A7BB$-C#7DEF ,----)*++ ,--------------------G*++ 9G ,-----------------=G*++
HI(D(I-J#5((7# ,----9*<+ ,--------------------K*++ )G ,---------------9G+*++
HI(D(I-1D8DE-:5(3-I58 ,----9*.+ ,--------------------G*++ 9+ ,-----------------G+*++
!788D#-!D;7-A;D8(7#-L"4EF ,----9*K+ ,--------------------0*G+ 9+ ,-----------------0G*++
M#54;'-ADN7#DB7F ,----9*)+ ,--------------------0*++ =+ ,---------------)9+*++
:"-/# A+++++++++++';<=>?@@

From this we can calculate our expected revenue per year:

28
! "#$!%&'( )*+!%&'( ,(+!%&'( -$.!%&'( /$.!%&'( 0$.!%&'(
!"#$"#% +,,,,,,,,,&'()*' +,,,,,,,,,&-').' +,,,,,,,,,&/*)'' +,,,,,,,,,&/*)'' +,,,,,,,,,&/*)'' +,,,,,,,,,&/*)''
01213"1,$14,567 +,,,,,,&8-9:)'' +,,,,,,&8-9:)'' +,,,,,,&8-9:)'' +,,,,,,&8-9:)'' +,,,,,,&8-9:)'' +,,,,,,&8-9:)''
01213"1%% +,,&(&8:(.)-' +,,;';8*&&);' +,,;(98;*-)'' +,,;(98;*-)'' +,,;(98;*-)'' +,,;(98;*-)''
12$'3 7!"/,4/5,655 7!)5-4"8"655 7!)/-49:8655 7!)/-49:8655 7!)/-49:8655 7!)/-49:8655
%,<#=>=?6#=@3,A">#=$>=1B,C7,D@4E=3F,B67?
%%,!"#$"#,G,01213"1,$14,567 :$.!%&'( 9$.!%&'( 8$.!%&'( "5$.!%&'(
+,,,,,,,,,&/*)'' +,,,,,,,,,&/*)'' +,,,,,,,,,&/*)'' +,,,,,,,,,&/*)''
+,,,,,,&8-9:)'' +,,,,,,&8-9:)'' +,,,,,,&8-9:)'' +,,,,,,&8-9:)''
+,,;(98;*-)'' +,,;(98;*-)'' +,,;(98;*-)'' +,,;(98;*-)''
7!)/-49:8655 7!)/-49:8655 7!)/-49:8655 7!)/-49:8655

CASH FLOW

! "#$!%&'( )*+!%&'( ,(+!%&'( -$.!%&'( /$.!%&'(

!"#"$%" ,--&'()'*(+** ,--.*/)&0&+** ,--.'/)120+** ,--.'/)120+** ,--.'/)120+**
3"45"67897:$-6:;9; ,----&()&0*+** ,------<)(0*+** ,------')10*+** ,------')10*+** ,------')10*+**
=8>:%5-6:;9; ,----1/)(<*+** ,--&&.)/1*+** ,--&/*)<**+** ,--&/*)<**+** ,--&/*)<**+**
!8?-@89"578A;-B-%97A797"; ,----'')&(0+*/ ,----2()'&1+2. ,----0&)101+/* ,----0&)101+/* ,----0&)101+/*
C7$8$67$D-6:;9; ,------/)***+** ,------()2/0+*. ,------()/2.+0/ ,------()&<0+.' ,------.)1('+&0
=:;;-68557"E-F:5?85E ,---------------G G,------()&1<+*/ ,---------------G ,---------------G ,---------------G
H5:F79->"F:5"-98I G,------()&1<+*/ ,------/)1<2+.. ,----&()*&2+<< ,----&()(.&+(' ,----&()<''+/&
J8I";-K(*LM ,---------------G ,------&)/<*+&2 ,------()0*'+(* ,------()00<+/* ,------/)*0<+<.
H5:F79-8F9"5-98I G,------()&1<+*/ ,------()/*2+*< ,------0)&&.+(< ,------0)(./+0/ ,------0)''1+21
N8;O-FA:? ,----&*)**(+0< ,------0)202+*< ,----&')**.+(< ,----&').&/+0/ ,----&')//1+21
=:8$-5"48P@"$9 ,------<)'*0+1. ,------<)'*0+1. ,------<)'*0+1. ,------<)'*0+1. ,------<)'*0+1.
0121+&*+ 6!!!!!!,3-4-5"- 6!!!!!!,3)785)- 6!!!!!!73-4)5// 6!!!!!!7389/5", 6!!!!!!734,7548

:$.!%&'( 8$.!%&'( 7$.!%&'( 4$.!%&'( "9$.!%&'(

,--.'/)120+** ,--.'/)120+** ,--.'/)120+** ,--.'/)120+** ,--.'/)120+**
,------')1'*+** ,------')1'*+** ,------')1'*+** ,---------1'*+** ,---------1'*+**
,--&/*)<**+** ,--&/*)<**+** ,--&/*)<**+** ,--&/*)<**+** ,--&/*)<**+**
,----0&)101+/* ,----0&)101+/* ,----0&)101+/* ,----0&)101+/* ,----0&)101+/*
,------.)/<2+2( ,------.)*<(+'. ,------&)<&1+10 ,------&)&.0+1* ,---------'0&+1*
,---------------G ,---------------G ,---------------G ,---------------G ,---------------G
,----&/)*<.+12 ,----&/)/<2+*1 ,----&/)0&&+2& ,----.*)/**+1* ,----.*)0(1+1*
,------/).&1+1< ,------/)(/*+&. ,------/)/2(+'& ,------<)&.*+./ ,------<).1&+</
,------0)1//+*& ,----&*)&.<+0' ,----&*)/(1+&0 ,----&/).1*+'< ,----&/)<'2+&<
,----&')<0/+*& ,----&')02<+0' ,----&<).11+&0 ,----&')&(*+'< ,----&')'*2+&<
,------<)'*0+1. ,------<)'*0+1. ,------<)'*0+1. ,------<)'*0+1. ,------<)'*0+1.
6!!!!!!43"7-5"4 6!!!!!!43-:85"- 6!!!!!!438875,7 6!!!!!!73:)958- 6!!!!!!734485,-

;<$'=!0121+&*+ 6!!!!8734:/57)

29
PROFITABILITY

! "#$!%&'( )*+!%&'( ,(+!%&'( -$.!%&'( /$.!%&'(

!"#$%& +,,,,,'()(((*(( +,,'()(((*(( +,,'()(((*(( +,,'()(((*(( +,,'()(((*((
-./0$%,10%2.,%13 8+,,,,,,,,')456*(7 +,,,,')7(9*(6 +,,,,:)44;*'6 +,,,,:)';7*:7 +,,,,:)<<5*95
=$>$?2@? +,,,,,,,,')7:7*47 +,,,,');59*;7 +,,,,5)7:;*<< +,,,,5)9(<*4' +,,,,5):'5*:9
A@%2.2B%,C1?2,/@,!"#$%& 44*6<D 4(*:6D ;5*'4D ;:*(;D ;:*5(D

0$.!%&'( 1$.!%&'( 2$.!%&'( 3$.!%&'( "4$.!%&'(

+,,,,,'()(((*(( +,,'()(((*(( +,,'()(((*(( +,,'()(((*(( +,,'()(((*((
+,,,,,,,,:)577*(4 +,,4()4;6*:< +,,4()7'5*4: +,,47);5(*<6 +,,47)6<9*46
+,,,,,,,,:)457*4: +,,,,:)769*47 +,,,,:)995*'5 +,,,,5)6;(*97 +,,,,5)::9*'7
'(*64D '4*<6D ';*<:D ;5*97D ;:*::D

12. CONCLUSION

Based on the above estimates and calculations The Currywurst Van has the
potential to be very profitable, with a continued return on investment of
around 30%.

From manipulating the various parameters in the calculations we found that

the profitability is very sensitive to the labour costs and the sale prices of the
food. Our prices are somewhat cheaper than our competitors, which is an
attempt to capture some of their business, but it also gives us some room to
increase profits. That is, if we do achieve a health market share and manage
to trade at many events / festivals we could put our prices up to be inline
with our competitors. This would be particularly effective during events and
festivals because we have a captive audience. This increased revenue would
allow us pay our staff more and achieve a higher staff retention rate.

Our marketing activities are aimed to gain prominent market share in the
market through our online presence and online community engagement.
However the growth of our market share is not fairly reflected on this
business case and hence the profitability reflected in this business plan is
pragmatic. Thus, given the applied marketing activities, with higher
penetration in the market and hence higher sales volume this business case
observes a profitable and sustainable business.

30