Chapter 152: A New Proposal

"No, no, no, Mr. Blake! Your budget is too high. With your plan for building the supply chain, we can't achieve extreme cost control. Especially for your burrito business, which requires a wide variety of supplies. Compared to competitors like McDonald's, which has simple items like soda, fries, and the fixed ingredients of a 'Big Mac'..."

While Bass Bank was probing around to gauge Blake Bank's current strength, Carter was in his office meeting Montgomery Ginas, a regional manager from Walmart recommended by Benjamin.

"So, this is where I need your help, isn't it? If I could manage this on my own, why would I offer such a high salary, potentially including future shares?"

Carter spread his hands, not at all bothered by the direct criticism of his flawed plan.

As the saying goes, one should rely on experts. When it comes to building a supply chain, Carter only had a general idea. For the specifics, it was better to listen to the expert.

"Mr. Ginas, please share your thoughts."

"Alright! Here's what I think: long-distance cold chain transportation trucks are necessary, but not everything needs to be transported by road. HT's initial strategy is to use ample funds and manpower to open restaurants in the top 20 most populated cities nationwide, right?"

Expressing one's opinion means providing a solution. If he could pass this test, the $20,000 annual salary would be secure!

Thinking about the high fixed salary and potential bonuses, Montgomery took a deep breath before carefully asking Carter about his goal.

Carter nodded affirmatively. Then...

"With all due respect, Mr. Blake, given the current investment budget, it's not cost-effective to just expand to 20 cities. Firstly, from New York, the most populated city, to El Paso, ranked twentieth, these cities span the entire US, from east to west and north to south."

"From Texas in the south to Wisconsin in the north, the distances are extensive. However, this isn't the main issue. On my way here, I reviewed our primary raw material needs at HT."

Starting by dismissing the boss's plan is a workplace taboo. But after weighing his options, Montgomery decided to take a gamble. He believed Carter's plan had significant flaws, and succeeding could lead to greater rewards for himself.

"First, corn. Major production areas include Iowa, Illinois, and Nebraska, mainly in the Midwest. Then, there's meat. The three primary meats—chicken, beef, and wild boar—are concentrated in the south. Specifically, the south-central to southeastern regions. Even the wild boar, despite their roaming nature, seem to prefer the southern air."

"Next are cucumbers, pickles, and shredded potatoes. Potatoes are in the north, while cucumbers come from southern Florida or Mexico. Walmart has always had good sales for these imported cucumbers, with customer reviews far exceeding those for locally grown cucumbers."

"So, if we aim for a certain taste quality, cucumbers must be sourced from the south. This significantly expands the supply chain range, creating a mismatch between supply and demand."

Seeing that Carter didn't interrupt, Montgomery grew more confident. He stood up and moved to the map in Carter's office, signaling for Carter to follow.

"Based on city population rankings, neither Georgia nor Florida would have a city in the top twenty. Yet, Georgia already has one or two restaurants. Florida is a crucial cucumber production area, and possibly for pineapples, tomatoes, and other produce. These fruits and vegetables, if grown in the sunny south, offer a dining experience unmatched by northern produce."

"Since we'll be sourcing from places like Florida anyway, why not expand our stores there too? Mr. Blake, take a look at this."

Montgomery pulled out a city population ranking list, causing Carter to frown.

In his American history classes, Carter had learned about the massive northward migration of the southern population. Unlike many New Yorkers considering a "run" to the south to places like Orlando, the current south, especially Georgia and Florida, were still underdeveloped.

In the entire Southeast, the only notable city was Atlanta, which, even then, stood tall among its peers. However, nationwide, Atlanta's population was still less than that of Seattle in the Northwest.

If he only considered city population rankings, potential locations for his stores would be in the Northeast Industrial Belt and California's new industrial cities, constantly bouncing between these extremes. Perhaps Texas could be included, but Texas... let's not go there.

"According to your current plan, establishing a corn processing center in Illinois would be feasible. The corn would be processed into cornmeal on-site, then made into uniformly sized corn tortillas, boxed, and sent to the Northeast and Southwest. This would largely solve the supply issue."

"For meat products, transporting from Texas to Arizona or Georgia using cold chain vehicles could keep the longest route under 1,500 kilometers. For cold chain drivers, this would be a manageable round trip within three days."

"For distances over 1,500 kilometers, I recommend using air transport. We could sign a long-term agreement with FedEx. Given their current rates, this would cost far less than using our own drivers and cold chain trucks across the entire US. If possible, I suggest using air transport for distances over 1,000 kilometers. A mix of self-operated and third-party logistics."

"Wait, hold on. Did you just say FedEx?"

Calculating transport costs isn't simple, and Carter wasn't in a rush to know the exact figures. He had been quietly listening to Montgomery's operational strategy, but the mention of FedEx made him interrupt.

"Yes, is there a problem?"

It didn't seem to be a big issue.

"Uh, not really. It's just that I registered a logistics company called FedEx the other day. Never mind, you can continue. I'll change the name later."