Snow Cones to The People Of Richmond

There is nothing more refreshing than a snow cone, on any day. Whether it’s hot, cold, rainy or even snow (in Richmond, Texas don’t worry it won’t happen often) every day is a good day for a snow cone from Frozen. Frozen is a local food truck that’s goal is to serve the spectacular snow cones to the community of Richmond, Texas. We only use the best ingredients available provide a welcoming and shaded area for our customers.

This menu should be liked by anyone from any age and comes in different sizes so people can enjoy how little or how much they want of our snow cones. Frozen will be a LLC so that all personal assets will be protected for the individuals funding the company. While not the first treat truck in Richmond area it is the first of its kind. In this way and the amenities that it gives like free Wi-Fwe it hopes to break itself into the market and prosper.

We want customers but more importantly we want return customers and referrals. Our goal is to be the go to snow cone food truck in the area.

With a later goal of having multiple food trucks. That can only happen by satisfying our customers and getting referrals. Frozen offers a fresh take on the snow cone. We use ice, fresh juices, and fresh fruit to make tropical blends; we also offer ice, various candies, with a nondairy creamer to make smooth blended snow cones of limitless different combinations.

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Frozen is a local food truck that serves fresh, delicious, snow cones. We are located in the Richmond, TX area. Our primary customers are residents of the area and travelers passing through. Our ingredients are as fresh as our ideas. We hope to be a great little place for anyone to visit. Our balcony is welcoming and provides shade and Wi-Fwe so our customers can relax and enjoy their treats. Each product is custom made for the client and we pride ourselves on providing a quick turnaround in the event that the customer needs to get back on the road or to class or work.

Frozen will purchase their supplies and food on a bi-weekly schedule (Monday A.M. and Thursday A.M.) The storage of the products will be on site in the refrigeration units. Upon arrival the tables and chairs will be set out for services. Then prep work will begin. Fruits will be cut and supplies (cups napkins, straws etc.) will be stocked for the day. Systems checks on the ice maker and blender will be performed. Once we start to receive customers the senior employee will take the order and the order slip will be passed to the second employee so they can begin preparing the order. Once payment is accepted the order for the snow cone will be filled by the employee on duty. The average order takes less than 2 minutes to fill.

A. We has two ways to order your snow cone. First you can just show up. We don’t care if you’re on foot/skateboard/ bicycle/ Segway/pickup truck/garbage truck or you name it you can order face to face. Once your order is placed we begin to make it. We attempt to give it to you by the time you pay. Speed is the key. Once it is prepared we hand it to the customer so they can enjoy it. The second option we have is to order from our app. We accept your payment and you can tell us your approximate arrival time and the type of vehicle you will show up in. Once we receive the notification of your order we do a soft prep of the snow cone. Once you actually show up, we finish the order and bring it out to your car. Before opening we plan on having an app based ordering system. The app is free for our customers. With this app you can order your drink and pay online. You can leave reviews for our products and services.

Frozen will be operated out of a food truck. We will occupy a small place in the corner of HEB. This lot is currently zoned for commercial use. The owner is willing to offer a $300 dollar a month rent for the first 3 years. There is ample space for customers to park and can easily be accessed from the main thoroughfare. Additionally there is an area for the placement of a small patio for 3 small tables with chairs. This will give our customers a place to enjoy our free Wi-Fwe while they finish their treats Our target audience is families with children. Although anyone can enjoy one of our fresh and amazing snow cones, children tend to want them more than anyone else. After a long day at school kids want something cool and refreshing to kick start their evening. With our snow cones being made from the freshest ingredients parents are willing to indulge their children with this afternoon delight.

While they are there, of course they have to order one for themselves as well. It wouldn’t be fair to deny yourself of a Frozen Snow Cone. Targeting families with children guarantees that we will have more than one snow cone purchased per order. The secondary target audience would be millennial adults. Snow cones were extremely popular during their childhood. A local hip place like Frozen will surely catch their attention. We offer amenities, like WiFi that every millennials needs. When you add that to a fresh and amazing snow cone, you get success. There are many uncontrollable conditions that could affect the start of this snow cone venture. First we will look at the general environment and demographic trends, national food industry trends, Environmental and demographic trends in Richmond and the local food industry trends to include our competition’s strengths and weaknesses.

General Environment and Demographic Trends – Overall the United States is coming out of an economic slump. The Dow Jones industrial Average is at all-time highs. The Department of Labor reports that the U.S. has seen the creation of 15.5 million jobs since February 2010, and has increased the wage rate 2.8% in the last year. National Food Industry Trends – Between 2007 and 2012 there has been a 47% increase in the amount of mobile food services In the United States. With a total of 2852 establishment’s annual sales in 2012 was $661 Million. The average amount of employees per establishment was 3. Local Environmental and Demographic Trends – The economy in Richmond allows a median household income of $50,633. This is $2849 less than the overall U.S. average median income of $53,482. Also, Richmond’s 17.6% poverty level is 2% higher than the U.S. average of 15.6%. Local Food Industry Trends – In 2014 Richmond County employed 3763 in the accommodation and food services sector according to census.gov. The total population of the county was approximately 89,000 people. The annual payroll was 57,217,000 of this industry in Richmond County during 2014.

Competitor Assessment

• Rainbow Snow is located near the Sugar Land/Richmond border cut off is one of our top competitors. This company has been serving this community for decades. I’ve personally visited this location numerous times. Frozen will bring a fresh experience to enjoying a snow cone. With added customer perks, we are excited to welcome our customers.
• McDonald’s is located in different locations in Richmond. Their strengths include their ability to fulfill multiple needs of meals and desserts; familiarity of the business by a majority of the market.
• Jack in the Box’s is located on the feeder of the major road Grand Parkway. Strengths include their ability to fulfill multiple needs of meals and desserts, familiarity of the business, and their location.
•  Dairy Queen is located on FM 1093, the location could easily be missed by those unaware of the new location. Strengths include their ability to fulfill multiple needs of meals and desserts, familiarity of the business, location.
• Convenient stores and gas stations dominant every major intersection with the ability to provide a significant value to get a snack or cool treat instead of coming to Frozen.

Marketing Strategy

Frozen objective is to gain a significant market share of the dessert market in the surrounding area of Richmond Texas. We will do this by providing high quality treats to cool our customers down. We will make our Snow cones affordable to everyone. Thirdly, we will ensure every customer leaves satisfied. And finally we will have a plan to get those satisfied customers back into the door. Based on our analysis of our competitors substitute products we are choosing to price our custom snow cones at a single price of $4. At this price we will be competitive and keep our snow cones cost of goods sold fewer than 25% of each unit sold.

Marketing Budget

• Sandwich board sign $250
• Vehicle Wrap $2450
• Every Door Direct Mailing $200
• Remote Tastings supplies to provide samples $500
• Facebook, Twitter, Instagram $100

Frozen will base its EDDM budget on whether or not it sees a return of the buy one get one 50% off coupons included on the initial mailing. Staying up to date on social media is free so Frozen will make every effort to use this marketing tool to bring in customers. Frozen will post happy hour deals that will allow it to push the sale of fruits and juices that it may need to get rid of due to expiration. Frozen will budget 2 hours of payroll weekly for one of its employees to go to the University campus and Citizens Medical Center. They will pass out buy one get one 50% coupons in the form of a business card to students

Forecast

The mobile food service industry in Texas more than doubled from 94 establishments to 193. With the growth of entrepreneurial ventures and businesses beginning to operate smaller and smaller, this industry is projected to grow over the next 5 years. Statista shows a forecasted growth of $128.6 Million between 2014-2019.The controls We are going to implement are to not focus on one trait of the price of my supplier, We will also need to verify quality of the produce and the service provided by the supplier. Only time may tell which of my flavors will be demanded most often but We will be closely tracking these statistics.

The weakness of this business is that we are unknown to the general public. Our competitors are all name brand fast-food chains and ice cream parlors. Another Major risk of the business is that we are serving food to the public. This means we are subject to the liability of making people sick. With the food safety training this risk can be avoided. The proper level of liability insurance will protect me against the risk of a lawsuit. The risk of new technologies affecting Frozen is very low. Maintaining a market share will solely fall to the uniqueness and quality of our product. As a contingency and alternate source of revenue We intend to begin an event schedule after my first year in business. We will offer mobile services for private parties and social events in the community. This will include but is not limited to charity organization events, birthday parties, quinceaneras, engagement parties, bachelor/bachelorette parties, weddings, sporting events and so much more.

Another contingency is to start offering food services. My main competitors for substitute treats offer food as well. This will allow me to gain more of a market share although it will come at a cost of hiring another worker and maintaining more food Also a food truck that would not be in competition with us could be added to the area where they would make all the food while we provide the treats. The plus side of this is that it would increase the traffic and reduce bills because we would share the rent. The negative is that while this does increase traffic it doesn’t mean it will increase the buyers just the potential buyers.