Business Profile: Javier Lopez

Business name: Dulceria JenniferType of business: Churritos and candy
Number of employees: 8
Production per month: 200 lbs/day churros; 25 lbs/day candy

Recent successes or changes: As of December 23, 2009, he signed a contract with La Union and Pali to increase his distribution to them for both candy and churros. He is in negotiations with La Colonia to sell there with fewer restrictions. He continues to sell at informal markets, but is trying to increase the formal markets from 30% to 80% this year. He is undergoing litigation against his brother-in-law over a machine that will improve his costs of production and output.

Current challenges: The litigation regarding the machine will help him increase churro production from 200 lbs/day to 1000 lbs/day is underway. This machine is incredibly specialized and will decrease his cost of production from C$9.50 to C$3.50 per candy.  He already has paid a $2,500 USD down payment for the machine, but it was recently sold to a family member for $15,000 USD. He is confident that he will win with his evidence, but the process could take up to a year. Additionally, he is in the process of moving locations. He currently lives where he works and will move within 2-3 months, so that his business place is dedicated to production only. He hopes to be back at a regular manufacturing schedule by March. He is also working on increasing candy production. All of his flavors have been approved by the sanitation standards.

Recommendations from the most recent Wake Forest Consulting Project:

• Produce more candy and track sales; after 6 months, if you are selling out, then increase production of candy in the formal markets.

• Conduct market research to find popular flavors to reduce the cost of different candies.

• Keep the same branding/labels for churros and candy to create brand awareness. Ensure that they are sold near each other in the different outlets.

• Continue to increase presence in supermarkets and become less dependent on the success of churros since there is a larger profit made from candy (without the machine).

-Written by Ashley Bangan, MA '10