Streetfire Kitchens Business Plan — Appendix D: Risk Register
Detailed risk register scoring likelihood and impact, with mitigations and the pre-committed trigger points adopted as policy.
Appendix D: Risk Register
Jump to section
- Overview & contents
- i. Important Notice and Basis of Preparation
- 1. Executive Summary
- 2. The Operating Model
- 3. Licensing, Food Safety and Trading Rights
- 4. Market and Customers
- 5. SWOT and Competitive Position
- 6. Operations and Team
- 7. Financial Plan
- 8. Break-Even and Debt Service
- 9. Investment Analysis
- 10. Sensitivity and Scenario Analysis
- 11. Risk Analysis
- 12. Implementation Roadmap
- 13. Key Performance Indicators
- 14. Key Assumptions
- 15. Conclusion and Recommendation
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Truck-Day and Trading Schedules
- C. Appendix C: Funding, Debt and Working Capital Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Glossary
|
Risk |
Likely |
Impact |
Mitigation and residual position |
|---|---|---|---|
|
Covers per service below plan |
High |
Severe |
The dominant risk. Break-even is 100 covers against a plan of 106.6. Mitigated by trading one truck for a quarter before expanding, short menus and pre-ordering; residual risk stays high until proven |
|
Loss of a key weekday pitch |
Medium |
Severe |
Weekday trade is 43.1% of revenue and pitches are held at the discretion of landlords and municipalities. Mitigated by holding more pitch agreements than trucks and by rotating sites |
|
Certificate of Acceptability refused or withdrawn |
Low |
Severe |
Trading without one is unlawful and an Environmental Health Practitioner may order immediate closure. Mitigated by certifying the commissary first and building a bench of trained Persons in Charge |
|
Event pipeline does not develop |
Medium |
High |
Events are 30.1% of gross profit. Mitigated by funding a dedicated sales role from launch and by investing in portfolio photography |
|
Weather and cancellations above plan |
High |
Medium |
The plan assumes 5.5% of days lost. A wet summer or a run of cancellations removes trading days that cannot be recovered later |
|
Food cost inflation |
High |
Medium |
Food is 30.8% of revenue. Mitigated by central purchasing through the commissary, menu engineering and quarterly price reviews |
|
Crew availability and turnover |
High |
Medium |
Service quality depends on trained crew. Mitigated by paying R58 an hour against a minimum of R30.23, per-service scheduling and a training pipeline |
|
Truck breakdown |
Medium |
Medium |
A truck off the road earns nothing. Mitigated by a maintenance budget of R74 000 per truck a year and by fleet redundancy once above three trucks |
|
Competition for pitches and market slots |
High |
Medium |
Popular markets are oversubscribed. Mitigated by reliability, early payment of stand fees and a differentiated offer |
|
Fuel and gas cost increases |
High |
Low |
Running costs are R583 per truck-day. Material but small relative to food and crew |
|
Food safety incident |
Low |
Severe |
Reputational and regulatory consequences are severe. Mitigated by commissary control, cold chain discipline, training and public liability cover |
|
Fleet expansion ahead of demand |
Medium |
High |
Adding trucks without pitches multiplies losses. Mitigated by the gate requiring confirmed pitch capacity before each addition |
D.1 Pre-committed trigger points
|
Point |
Trigger |
Committed response |
|---|---|---|
|
End of first quarter |
Average covers below 100 per service |
Do not commission trucks two and three. Fix the offer, the pitch or the menu first |
|
Month 9 |
Event days below 8% of the calendar |
Review the sales role and the portfolio. Events carry the margin and cannot be left to chance |
|
Month 12 |
Food cost above 36% of revenue |
Menu engineering and supplier review before any price increase is considered |
|
End of Year 2 |
EBITDA still below break-even |
Engage the financier before the fourth truck is ordered, not after |
|
Before each truck addition |
Confirmed pitch capacity not in place |
Defer the truck. A truck without a pitch is a depreciating vehicle |
|
Any month |
Cash below R250 000 |
Draw against a written plan, not to fund ordinary losses |