Do you want to start food preparation business?

Executive Summary

Company Summary


Marketing Analysis of Food Preparation Business 


Personnel plan

Financial Plan

Do you want to start food preparation business?

Are you curious to know about a business in which you will be constantly interacting with people, helping them in their lives while generating a large amount of profit? You can start that dream business by opening a food preparation center.

To know how to start a meal prep business, read this document thoroughly in which we have provided a sample business plan of food preparation business startup named, ‘Cooking Court.’

Executive Summary

2.1 The Business

Jolie Swinton will be starting a meal prep business  in Denver, named as Cooking Court. Cooking Court will be a food preparation service  in which people can cook by themselves, or with the help of our chefs or can also purchase cooked food.

2.2 Management

If you are starting your business by renting a space or if you are starting in your own house, you will need to plan very carefully in both cases. So, if you are looking for how to start a meal prep business from home  or outside you have to devise management plan first. As food preparation business is a business in which you have to take care of many details such as providing fresh material to your customers timely and managing the place where they will have to cook.

2.3 Customers

We are fortunate in a way that we have a very large group of people who can prove to be our long term customers. Our customers will be young, men and women who have to manage home tasks along-with jobs and senior citizens who want to have a good social interaction while doing work for themselves.

2.4 Target of the Company

Our target is to serve our customers with the best. If they want to cook by themselves then we’ll be a source of continuous help for them, otherwise, we’ll be serving them by putting in time and effort to make according to what they want.

Food Preparation Business Plan 1

Company Summary

3.1 Company Owner

Jolie Swinton will be the owner of the company. Jolie is an educated landlady, famous as an effective woman in her area. She has six years’ experience in managing resorts as well and a two-year experience while being a chef.

3.2 Why the Business is being started

Jolie is the owner of a large piece of land and lives with just her husband and two children in that home. To indulge her in a socializing and interesting activity whilst using the space in her home, she has decided to open up a meal prepping business. This will be a great platform for her to use her intellect, resources, and experience to benefit herself and others.

3.3 How the Business will be started

Jolie will hire chefs and assistants to prepare food for the customers, to bring the required things needed by customers, and to manage the dining lists and schedules, and lastly to clean the facility. To be organized, and deciding the strategy, Jolie has decided to study various personal chef business plans before actually making one for her.

Food Preparation Business Plan 3

The detailed start-up requirements, start-up funding, start-up expenses, total assets, total funding required, total liabilities, total planned investment, total capital and liabilities as forecasted by company’s analysts, is given below:

Start-up Expenses 
Research and Development$32,750
Expensed Equipment$32,750
Start-up Assets$0
Cash Required$332,500
Start-up Inventory$32,625
Other Current Assets$232,500
Long-term Assets$235,000
Total Requirements$245,000
Start-up Expenses to Fund$11,875
Start-up Assets to Fund$15,000
Non-cash Assets from Start-up$18,750
Cash Requirements from Start-up$0
Additional Cash Raised$18,750
Cash Balance on Starting Date$21,875
Liabilities and Capital$0
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$0
Other Current Liabilities (interest-free)$0
Planned Investment$0
Investor 1$332,500
Investor 2$0
Additional Investment Requirement$0
Loss at Start-up (Start-up Expenses)$313,125
Total Funding$255,000


Before looking for how to start a food prep business, you have to decide several important things one of which is the range of services you’ll provide. The products and services decided by Jolie to be provided to her customers are:

  • Kitchen equipment: Facility of kitchen equipment, kitchen utensils, menus and ingredients according to the order of customers for if they want to prepare their food by themselves
  • Assistant chefs: Assistant Chef to help if one hasn’t much experience of cooking
  • Homemade foods: Prepared delicious homemade traditional and American foods
  • Desserts and drinks

By providing these facilities we’ll be saving our customers from the worry of buying grocery and cleaning the kitchen equipment. Moreover, we’ll be offering packaging facilities for those who want to take food home.

Marketing Analysis of Food Preparation Business 

Before starting a food prep business, do quick research on the market in which you are starting your home based cooking business to know whether that market needs your services or not. In a very well-off society no one will come to your house to prepare food for themselves, and in an area where there are a lot of resorts, no one will come to buy your homemade foods. This shows that how much important it is to do accurate marketing analysis in your   food service business plan.

5.1 Marketing Segmentation

After identifying the people who can serve as their potential customers, Cooking Court has divided them into groups of three to focus on their expectations out of this business separately. The marketing segmentation done by Cooking Court is given in this personal chef business plan sample.

Food Preparation Business Plan 5

5.1.1 Family Households: Our major customers will be the families living near to our business area. They will find it convenient to cook the food they want with the help of an assistant without the worry of buying groceries and cleaning kitchen equipment. We also expect them to buy our prepared homemade foods.

5.1.2 Senior Citizens: This category will include the elderly people who will have a chance to socialize with people while preparing quality food for themselves by themselves. It is difficult for elders to prepare food for themselves from scratch i.e. buying ingredients, cleaning them, cooking them and then cleaning the utensils especially when they don’t have any helper.

5.1.3 Young & Adults: Last group of our target customers will comprise of the young people who have a tough routine doing jobs. Through us, they will be saved from the strain of such a tedious task of preparing a meal.

The detailed market analysis of our potential customers is given in the following table:

Market Analysis
Potential CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
Young & Adults32%11,43313,34416,55318,74520,54513.43%
Family Households48%22,33432,34443,66552,54466,43210.00%
Senior Citizens20%12,86714,43315,99917,56519,13115.32%

5.2 Business Target

Our target is to serve our customers either by providing prepared food or by helping them in preparing theirs. Besides, the financial target which we want to achieve is:

  • To achieve the net profit margin of $10k per month by the end of the first year, $15k per month by the end of the second year, and $25k per month by the end of the third year

5.3 Product Pricing

The price of our products and services is neither very high nor too low. We want our customers to have a perfect experience and that is only possible when we don’t have to compromise on prices.


Your strategy to start and run your business successfully is also an important part of your meal prep business plan. In this sample food business plan, we are presenting a way to plan your business, specifically in this part we will be focusing on the methods to advertise your food preparation business.

6.1 Competitive Analysis

Our biggest competitive advantage is that we don’t have any direct competitor near to our business area. The area in which we are starting our business is more of residential than commercial, so we have a very bright chance to attract the category which we identified as our target customers. Secondly, we will not only provide our customers with space but also with fresh and cleaned vegetables, meat, dairy and whatever they order us.

Another thing that counts in our competitive edge is Jolie’s social relationships with the residents and community groups. Lastly, we will make a website through which our customers will be able to read the schedules and order the required things if they want some change in the menu we have made.

6.2 Sales Strategy

We will adopt the following methods for the advertisement of the business.

  • We’ll advertise our services and products through the local newspaper
  • We’ll arrange a free dinner party on the inauguration day to let people know about the taste and quality of our products
  • We’ll give free service for the first three days of launch

6.3 Sales Monthly

Food Preparation Business Plan 7

6.4 Sales Yearly

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6.5 Sales Forecast

We believe that due to our unique idea, the opportunity to socialize with groups and the facility of preparing and buying homemade foods will eventually result in increased profits day by days. Our sales on a yearly basis as forecasted by marketing analyst is summarized in the following column chart.

Food Preparation Business Plan 11

The detailed information about sales forecast, total unit sales, total sales is given in the following table:

Sales Forecast   
Unit SalesYear 1Year 2Year 3
Homemade foods1,887,0302,680,3202,588,240
Desserts and drinks802,370815,430823,540
Kitchen equipment539,3207702301,002,310
Assistant chef265,450322,390393,320
TOTAL UNIT SALES3,494,1704,588,3704,807,410
Unit PricesYear 1Year 2Year 3
Homemade foods$140.00$150.00$160.00
Desserts and drinks$600.00$800.00$1,000.00
Kitchen equipment$700.00$800.00$900.00
Assistant chef$650.00$750.00$850.00
Homemade foods$2,149,800$2,784,000$3,383,200
Desserts and drinks$120,050$194,500$268,500
Kitchen equipment$50,110$71,600$93,000
Assistant chef$139,350$194,600$249,850
Direct Unit CostsYear 1Year 2Year 3
Homemade foods$0.70$0.80$0.90
Desserts and drinks$0.40$0.45$0.50
Kitchen equipment$0.30$0.35$0.40
Assistant chef$3.00$3.50$4.00
Direct Cost of Sales
Homemade foods$989,300$1,839,000$2,679,700
Desserts and drinks$66,600$119,900$173,200
Kitchen equipment$17,900$35,000$52,100
Assistant chef$19,400$67,600$115,800
Subtotal Direct Cost of Sales$1,294,100$1,699,400$2,104,700

Personnel plan

You don’t need very large manpower to run meal preparation business, even if you are starting in your home you need just three to four persons for your help.

It is not the number of employees that is important, it is their dedication, customer care-oriented behavior and sense of responsibility which will be playing a part in making your reputation. So, you have to hire your staff by carefully testing their skills.

7.1 Company Staff

Jolie will supervise the customers by herself however, she will hire the following staff:

  • 1 General Assistant for bringing grocery, and performing packaging and salesman services
  • 4 Chefs to prepare food and help customers preparing theirs
  • 2 Cleaners for cleaning the facility continuously
  • 1 Accountant for receiving cash and managing financial accounts

7.2 Average Salary of Employees

The following table shows the forecasted data about employees and their salaries for the next three years.

 Personnel Plan   
Year 1Year 2Year 3
General Manager$85,000$95,000$105,000
Total Salaries$85,000$95,000$105,000

Financial Plan

Now, when you have gone through all the steps to start your own business the last decisive thing is your financial plan. Your financial plan must include the ways to balance your advertisement and startup costs with the profits earned and the amount you have to put in reserve for if you will be unable to earn your expected profits. It is the only part of your business plan in which you will need to make continuous revisions and alterations according to the revenues you are generating.

In this meal prep business plan template, we are providing the financial plan of Cooking Court, you can take help from it, but it is advised to get this important task done by an expert financial analyst according to your finances and investments.

8.1 Important Assumptions

The company’s financial projections are forecasted on the basis of the following assumptions.

 General Assumptions   
Year 1Year 2Year 3
Plan Month123
Current Interest Rate10.00%11.00%12.00%
Long-term Interest Rate10.00%10.00%10.00%
Tax Rate26.42%27.76%28.12%


8.2 Brake-even Analysis

Food Preparation Business Plan 13

 Brake-Even Analysis 
Monthly Units Break-even5530
Monthly Revenue Break-even$159,740
Average Per-Unit Revenue$260.87
Average Per-Unit Variable Cost$0.89
Estimated Monthly Fixed Cost$196,410


8.3 Projected Profit and Loss

 Pro Forma Profit And Loss   
Year 1Year 2Year 3
Direct Cost of Sales$15,100$19,153$23,206
TOTAL COST OF SALES$15,100 $19,153 $23,206
Gross Margin$293,969$366,781$439,593
Gross Margin %94.98%94.72%94.46%
Sales and Marketing and Other Expenses$1,850$2,000$2,150
Leased Equipment$0$0$0
Payroll Taxes$34,510$40,726$46,942
Total Operating Expenses$188,766$220,744$252,722
Profit Before Interest and Taxes$105,205$146,040$186,875
Interest Expense$0$0$0
Taxes Incurred$26,838$37,315$47,792
Net Profit$78,367$108,725$139,083
Net Profit/Sales30.00%39.32%48.64%

8.3.1 Profit Monthly

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8.3.2 Profit Yearly

Food Preparation Business Plan 17

8.3.3 Gross Margin Monthly

Food Preparation Business Plan 19

8.3.4 Gross Margin Yearly

Food Preparation Business Plan 21

8.4 Projected Cash Flow

Food Preparation Business Plan 23

 Pro Forma Cash Flow   
Cash ReceivedYear 1Year 2Year 3
Cash from Operations
Cash Sales$40,124$45,046$50,068
Cash from Receivables$7,023$8,610$9,297
SUBTOTAL CASH FROM OPERATIONS$47,143 $53,651 $59,359
Additional Cash Received
Sales Tax, VAT, HST/GST Received$0$0$0
New Current Borrowing$0$0$0
New Other Liabilities (interest-free)$0$0$0
New Long-term Liabilities$0$0$0
Sales of Other Current Assets$0$0$0
Sales of Long-term Assets$0$0$0
New Investment Received$0$0$0
SUBTOTAL CASH RECEIVED$47,143 $53,651 $55,359
ExpendituresYear 1Year 2Year 3
Expenditures from Operations
Cash Spending$21,647$24,204$26,951
Bill Payments$13,539$15,385$170,631
SUBTOTAL SPENT ON OPERATIONS$35,296 $39,549 $43,582
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out$0$0$0
Principal Repayment of Current Borrowing$0$0$0
Other Liabilities Principal Repayment$0$0$0
Long-term Liabilities Principal Repayment$0$0$0
Purchase Other Current Assets$0$0$0
Purchase Long-term Assets$0$0$0
SUBTOTAL CASH SPENT$35,296 $35,489 $43,882
Net Cash Flow$11,551$13,167$15,683
Cash Balance$21,823$22,381$28,239

8.5 Projected Balance Sheet

 Pro Forma Balance Sheet   
AssetsYear 1Year 2Year 3
Current Assets
Accounts Receivable$12,613$14,493$16,373
Other Current Assets$1,000$1,000$1,000
TOTAL CURRENT ASSETS$201,259 $237,468 $273,677
Long-term Assets
Long-term Assets$10,000$10,000$10,000
Accumulated Depreciation$12,420$14,490$16,560
TOTAL ASSETS$198,839 $232,978 $267,117
Liabilities and CapitalYear 1Year 2Year 3
Current Liabilities
Accounts Payable$9,482$10,792$12,102
Current Borrowing$0$0$0
Other Current Liabilities$0$0$0
Long-term Liabilities$0$0$0
TOTAL LIABILITIES$9,482 $10,792 $12,102
Paid-in Capital$30,000$30,000$30,000
Retained Earnings$48,651$72,636$96,621
TOTAL CAPITAL$189,360 $222,190 $255,020
TOTAL LIABILITIES AND CAPITAL$198,839 $232,978 $267,117
Net Worth$182,060$226,240$270,420


8.6 Business Ratios

 Ratio Analysis    
Year 1Year 2Year 3Industry Profile
Sales Growth4.35%30.82%63.29%4.00%
Percent of Total Assets4.35%4.71%5.80% 9.80%
Accounts Receivable5.61%4.71%3.81%9.70%
Other Current Assets1.75%2.02%2.29%27.40%
Total Current Assets138.53%150.99%163.45%54.60%
Long-term Assets-9.47%-21.01%-32.55%58.40%
TOTAL ASSETS100.00%100.00%100.00%100.00%
Current Liabilities4.68%3.04%2.76%27.30%
Long-term Liabilities0.00%0.00%0.00%25.80%
Total Liabilities4.68%3.04%2.76%54.10%
NET WORTH99.32%101.04%102.76%44.90%
Percent of Sales
Gross Margin94.18%93.85%93.52%0.00%
Selling, General & Administrative Expenses74.29%71.83%69.37%65.20%
Advertising Expenses2.06%1.11%0.28%1.40%
Profit Before Interest and Taxes26.47%29.30%32.13%2.86%
Main Ratios
Total Debt to Total Assets2.68%1.04%0.76%67.10%
Pre-tax Return on Net Worth66.83%71.26%75.69%4.40%
Pre-tax Return on Assets64.88%69.75%74.62%9.00%
Additional RatiosYear 1Year 2Year 3
Net Profit Margin19.20%21.16%23.12%N.A.
Return on Equity47.79%50.53%53.27%N.A.
Activity Ratios
Accounts Receivable Turnover4.564.564.56N.A.
Collection Days9299106N.A.
Inventory Turnover19.722.5525.4N.A.
Accounts Payable Turnover14.1714.6715.17N.A.
Payment Days272727N.A.
Total Asset Turnover1.841.551.26N.A.
Debt Ratios
Debt to Net Worth0-0.02-0.04N.A.
Current Liab. to Liab.111N.A.
Liquidity Ratios
Net Working Capital$120,943$140,664$160,385N.A.
Interest Coverage000N.A.
Additional Ratios
Assets to Sales0.450.480.51N.A.
Current Debt/Total Assets4%3%2%N.A.
Acid Test23.6627.0130.36N.A.
Sales/Net Worth1.681.290.9N.A.
Dividend Payout000N.A.