A THREE-YEAR BUSINESS PLAN FOR TACO LOCA FOOD STALL

Presented to The Faculty of College program in

University of Mindanao, Matina Campus,

Davao City

In Partial fulfillment of the Requirements

In the subject of

The Entrepreneurial Mind

DRACY BEATRIZ CAVERO

JEMARLYN VILLARIN ROMERO

I. EXECUTIVE SUMMARY
Business Overview

Food consistently pleases us. People have their cravings especially when they are
hungry and it often many times during a day. Foods taste good and it can be fun
sometimes especially when we are with our loved ones or with friends. Most of the
Filipinos are used to follow some trends. When we say trends, it can be in fashion or
styles but it also includes the foods. People are looking for a place to eat that will surely
satisfied their cravings at a very affordable price. That is why we have come up to this
business that will serve them at a very affordable price and truly gives what they desire
when it comes to food.

Davao City has a lot of places where trade and work is done and it is a great
opportunity to place our food stall where most people are to attract customers and make
profit. Products that we offer are much cheaper than other but rest assured that it is made
with quality ingredients and will reach their expectations. We can also prove to you that
we are serving aspetic foods and fresh servings.

Our business name was inspired by a Mexican delicacies. “Taco loca” means crazy
taco which is our main dish. We focus in serving tacos but we also serve shawarma,
nachos and drinks. Since Philippines is know to be colonized by the Spaniards in the
1950’s we Filipinos has since then adapted to the Mexican foods which are introduced to
our country. And as of today we continue to love authentic mexican snacks with a
Filipino twist served with a little bit craziness or Loca as they call in spanish.

Taco Loca N’ Drinks sells Mexican foods that is also well known to the Philippines,
just like the tacos, nachos, and shawarma, we are also serving drinks. We choose this
kind of business since people love these kinds of foods. It is already a big advantage in
pursuing this business. And we can assure that it will grow.
Partners/Management Team

In order to ensure a comprehensive management structure, our management team

is made up of people with the necessary competencies. Dracy Beatriz Cavero, one of

the business owners is a graduate of Accountancy Business Management and owns

small businesses through the years. Her first business was a retail shop that

successfully boomed in the pandemic with a gross profit margin of 60%. Her second

one is a cosmetic line that is still running till today with a stable gross profit of 50%.

She has years of experience in the business, business plan and marketing plan

creation.

Service Strategy

To ensure that the "taco loca" will have a good service and product to serve to the

customers, the business will hired employees who are suitable and perfect for every

job description that the business provided. The business will offer the highest quality

they can provide with very affordable price. To ensure that the Students and

Professionals will be surely satisfied their cravings. Taco loca will provide a good

services for both students and professionals in terms of how we treat our customer we

will make sure that they will be satisfied in our products. To make sure that

everything goes according to plan, We will hire a trained manager to observe the staff

and held a small meeting every end of the day give credits on what is

lacking.
Marketing Plan

In order for our business to well-shown its advertisement, we will use social

media since most of us is now more on technology and socializing through the use of

internet. We will also use the common traditional way of marketing our business

which is the flyers and tarpaulins. We discourage paid advertisement because flyers

and tarpaulin are more tangible. As we can see, social media is very popular right

now. The youngs, teens and even adults uses social media in their daily lives. People

are really into this kind of phenomena, when we are outside, all we can see is people

are always holding their phones checking and scrolling their social media accounts.

With this, we have decided to do an advertisement in relation with our business and

our products and post it on social media so we can easily persuade the people

especially our target audience. Otherwise, we will also lend some budget to print

flyers and tarpaulins since these traditional marketing strategies are the most common

and most useful. We also make sure that we reached our maximum number of people

in our target audience in the most efficient manner.

Financial Plan

Taco Loca will have an active role in providing excellent quality of food and in providing

other relevant product for the business. We make sure that the sales will increase by

10%-20% every year. We will ensure Improvements of our business every year and

even innovation as the market changes. In year one, partners will invest Php 100k cash to

jump start the operation. The equity capital will be used to complete the development of the
 Company’s space and initiate the operation. Based on our projections, we will not need to

finance the business through short or long-term liabilities. By the 8th month of year 1, the

company is expected to breakeven. On the 2 nd and 3rd year the business is expected to earn

Php 2 million and Php 3 million, respectively. Ownership of the business will be engaged

Business Plan -through a profit sharing basis hence no regular salaries will be paid. Partners

will have an ownership portion of the venture that is equivalent to the equity investment

contributed.

OBJECTIVES STRATEGIES ACTION PLAN

 We make sure  Give them a Give the customer a
that the sales will loyalty card and loyalty card for their first
increase by 10%- give a free of any purchase and explain
20% every year. in our products if how to get a free of any
 Improvements of they reach 10 of our products. • Ask
our business every for a feedback to the
year  Always go for the customers. Since we
trend in the have a fb page, they can
market. put their feedback there.
• Do some survey for the
loyal customers.

II. INDUSTRY ANALYSIS

Description of the industry.

Taco Loco engages in the food industry. It supplies food that gives convenience

and healthiness for the customers. According to the Philippine Standard Industrial

Classification (PCIS) Taco Loco is classified under Mobile food service industry.

This industry gains the highest number of establishment based on the Annual Survey

of Philippine Business (APSBI), there were 5, 540 establishments. A Total

Employment of (TE) of 20 with a growing rate of 12.4% according to Philippine

Statistics Authority (PSA) over in the formal sector of the economy that were
 engaged in the accommodation and food service activities. According to (PSA)

Mobile Food services is included as one of the most employed highest number of

workers with 152,276 or 61.0 percent of the total. This industry also generated a

biggest share of total income estimated at PHP306.4 billion in 2019. With a growing

rate of 4.5 % during the forecast period of (2019-2024).

Success Factors and Metrics

Having space that is popular and community driven may still not be enough to make the

business a success, and sustainable revenue and positive cash flow are still crucial.

According to the Global Coworking Survey, the three main factors that help a coworking

space succeed are number of members, age of space, and other sources of income.

1. Number of members in a coworking space

2. Age of space (maturity of community)

Naturally as the space grows, the community of members evolves and matures. This

will take some time as the members will help define the space. The longer the space

is operating, the more time the community can develop naturally. Research has

shown that spaces struggle in the first year, not only to become profitable, but also to

capture the intended audience and community members. Every potential customer is

unique and will be in a different situation. According to the Global Coworking

Survey, 72% of cooperatively operated coworking spaces become profitable after

 two years of operations and the rate is even higher, at 87%, for private, commercially

operated spaces.

3. Other sources of income

Looking at coworking spaces around the world has shown that the majority of owner

operators have other sources of income. Owners tend to be freelancers themselvand

be an expert in a certain area. Many spaces are not established with the goal of

lucrative profits, but rather to provide a mutually beneficial solution to a group of

similar professionals. However, many spaces are successful and have become

profitable sources of income for the operators. Having a secondary income or day

job helps reduce the pressure of operating the coworking space and breaking even

every month.

Porter’s Five Forces Analysis

Michael Porter’s five forces analysis is helpful to determine the relationship among

competitive forces in a particular marketplace.

Potential New Entrants

This kind of business is very popular to people especially who loves this kind of mexican foods

as their snacks. Thus, Taco Loca food stall has a weak force of potential new entrants.

Bargaining Power of Buyers

Bargaining power of buyers is one of the most significant forces affecting the business. Since

they are the one who buys our product it exchanges with the revenue. We have sa strong forve

for the bargaining power of buyers.

Threats of Substitute Products

The table above indicates that there is a weak force of substitute products against our business

because it doesn’t have any products that could substitute ours. Unlike other business they have

substitute for their products.

Bargaining Power of Suppliers

The ingredients of our products is manufactured by the supplier. The bargaining power of

supplier is strong because our business can’t operate without the suppliers. We depend on their

supplies or stocks in order for us to produce our products and serve our customers with high

quality.

Rivalry among Existing firms

Mexican foods and snacks are now popular to the Filipinos. Before we build this kind of

business we determine other food stall just like ours. Within the industry, there are a lot of

competitors who has a lot of loyal customers and the said competitors above is our biggest

rivalry. These business are really spending much money for advertising to attract many

customers which make the rivalry among existing firms have a strong force against our business.