Do you want to start a Food Truck business plan?
Do you want to learn how to write a business plan for a food truck? If it is the case, then you are probably thinking about starting a food truck business. The business can be a great choice as it requires very little investment. You don’t need any specific education either for starting a business in this domain.
A business plan for food truck will contain everything from the scale of the business to the services it provides and the costs vs profit analysis. In this way, it is very much like any other business plan such as a spices business plan. Now, if you want to write a business plan, you have two options. You can either write the plan yourself from start to finish or you can hire a business plan consulting service to handle everything for you.
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2.1 About the Business
Eat Out will be a food truck business that will be owned and managed by Henry Gilman. The main idea behind the business is to provide on-the-go food options to people so that they don’t have to spend precious time commuting from one place to another. It will offer a wide variety of services and menu options so that it quickly becomes a favorite of its customers.
2.2 Management of Food Truck Company
This section will describe the food truck business plan executive summary. Thus, it will contain all the key takeaways of the whole plan. To ensure that the business plan for a food truck is thorough, it needs to contain all the details necessary to manage a food truck. This can contain anything from owning and managing the truck on its own to menu options, locations, and financial analysis as mentioned in this sample business plan food truck.
To make sure that this business plan for food truck template had all the details to make Henry’s business a success, a business planning expert was also hired to oversee the listing and planning of resources.
2.3 Customers of Food Truck Company
The customer base of Eat Out will belong mostly to the working class who don’t have enough time to spend searching for good food in their day. The main customer groups of the business will include:
- Office Employees
- School Children
2.4 Business Target
The main target of Henry’s Eat Out is to provide sustainable alternative food options to people who are often very busy. The business will try to achieve its base goal to occupy a considerable market share in the fast-food/cart food market.
For this example business plan food truck, the financial targets that Eat Out wants to achieve within the first 2 years of operation are:
3.1 Company Ownership and Management
As mentioned before, Eat Out will be owned and operated by Henry Gilman. As Henry has a considerable background and experience in management, he will act as the primary manager of the operation while the operations on the ground will be handled by the sub-operation managers hired by Henry.
3.2 Company History
Eat Out was ideated when Henry realized that many people, especially in the working class often had to spend a considerable amount of time if they wanted to eat something healthy as the options were few and far between. Here, he saw the opportunity to create change in a way that fast-food chains originally set out to do.
3.3 How the Food Truck company will be started
Step1: Look into the Market
The first step before you learn how to write a food truck business plan is to look into the market you are targeting. Henry wanted to target the residents and workers of New Orleans so he conducted market research to see if it was even worth it to write a food truck start up business plan for the city. He was pleased to find out that there was a significant need for a food truck business in the area and hence decided to develop this food truck business plan sample pdf.
Step2: Plan the Business
Once he dug out the viability of the business, Henry had to plan out all the details of Eat Out including things like financial viability, operations, location, marketing, etc. For this purpose, Henry decided to look into all small start-ups in the area including an open frozen yogurt business to find out how they were conducting their operations.
Step3: Find a Truck
Next, Henry had to find a truck model that would perfectly fit his business needs. For this, he looked into as many food truck businesses as he could to find a perfect truck. He decided that what he needed would require some customizations, so he agreed upon a contract with a workshop business to get 3 trucks customized and ready for operation.
Step4: Select Location of Operations
Reading free business plan template for food truck had educated Henry enough for him to realize that the location of a food truck was essential to the success of the business. Therefore, he scoped out different areas in New Orleans and decided on 6 locations where his food trucks would transition between morning and evening.
Step5: Marketing and Branding
Henry decided that he could get a jump start on business by setting up at least one of his food trucks at the local carnival area every day. This would not only bring him customers but also help in a lot of marketing efforts.
|Research and Development||$10,000|
|TOTAL START-UP EXPENSES||$298,200|
|Other Current Assets||$251,000|
|Start-up Expenses to Fund||$298,200|
|Start-up Assets to Fund||$955,500|
|TOTAL FUNDING REQUIRED||$1,253,700|
|Non-cash Assets from Start-up||$1,262,000|
|Cash Requirements from Start-up||$175,000|
|Additional Cash Raised||$50,000|
|Cash Balance on Starting Date||$35,000|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$61,500|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$1,253,700|
|Loss at Start-up (Start-up Expenses)||$188,600|
|TOTAL CAPITAL AND LIABILITIES||$1,522,000|
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There are many steps to learn how to make a business plan for a food truck. However, just like any other business plan such as shaved ice business plan, a list of services or products offered by the business is a must.
To ensure that he could plan his business well, Henry set out a list of services and products that his business would provide. Already deciding on these services as part of his food truck park business plan enabled Henry to adequately organize the business idea for investors.
Therefore, if you want to develop a business plan, this food truck business plan template free can be a great place to get started. The services offered by Eat Out as listed by this food truck business plan example pdf include:
- Food On-the-Go
The biggest selling point of Eat Out is that it will provide mobile, quick, and healthy eating options for its customers. Some of the foods offered by Eat Out will include:
- Meat & Rice Combos
Eat Out will also provide catering services for different events. The customers can visit the website for Eat Out or one of many social media profiles to get in touch with Henry to organize catering services for events like parties, birthdays, and weddings. The food will be presented and served in one of the food trucks at every one of these events.
Eat Out will also list itself on online food ordering services such as Uber Eats to that people can order from anywhere.
- Fresh Drinks
Since drinks are such an important part of every meal, therefore, Henry decided that his food trucks would also offer a range of hot and cold drinks (fresh and otherwise), to be served alongside their meals.
Marketing Analysis of Food Truck Company
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Writing a food truck business plan requires the collection of a lot of information about the target market including the gaps a new business can fill, the viability of a business in a particular market, and the challenges and competitions a business will need to face. Henry included all of this information in his mobile food truck business plan.
If you are looking at ways for starting a food truck business plan, this business plan for food truck pdf can serve as a great guide. Henry laid out all the necessary market information for establishing a successful food truck business in his business plan food truck example.
According to this business plan template for food truck, the customer groups served by Eat Out will include:
5.1 Market Trends
According to Zippia, the market size of the food truck industry is about $1.16 Billion as of 2021. The industry has been growing at a steady rate of 12.1% since 2016, making it one of the best businesses to invest in. People are always on the lookout for quick food options and the shift to look for the best healthy options leaves a huge gap that new food truck businesses can fill.
5.2 Marketing Segmentation
The potential customer groups of Eat Out will be as follows:
5.2.1 Office Employees
Office employees in the New Orleans area will be the primary target groups for Eat Out. As office employees are continuously working and need sustenance that is healthy and near, therefore, they will act as the main customers of our food trucks.
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Parents are often tired of constantly taking care of kids and working full-time and therefore, they sometimes need a good healthy food choice to feed not only their kids but for themselves. Henry decided to target this group of customers.
5.2.3 School Children
Teenagers and young adults love walking around and having fun when free and Eat Out will provide them a great way to stay refreshed and sate their hunger.
Tourists very rarely decide to go to big hotels and restaurants while on vacation. For such people, food trucks are a primary source of nutrition throughout the day. Therefore, Eat Out trucks will target locations with an influx of tourists.
|Potential Customers||Growth||Year 1||Year 2||Year 3||Year 4||Year 5||CAGR|
5.3 Business Target
- To provide a unique food option to people in New Orleans
- To expand food options little by little while maintaining the quality and health benefits
- To expand services to more locations throughout the city
- To gain a net profit of $20k/month by the end of the first year through 3 trucks
5.4 Product Pricing
The prices of food options provided by Eat Out will be comparable to the prices charged by other food truck businesses in the area. However, with the significant change in the menu as compared to other food trucks, prices will vary by a small margin.
The success of a business, especially a business in transit, like a food truck business requires thorough and continuous marketing. Understanding the importance of good marketing, Henry looked into the food truck industry of New Orleans to add details to his business plan for food truck sample. He not only looked into the market leader and trends but also compiled a list of the biggest competitors in his business plan food truck template.
To make a comprehensive food truck business plan, Henry also looked into other business plans. Some examples he studied included business plan for a lemonade company.
6.1 Competitive Analysis
The competitive advantages that Eat Out has over the market include:
- Versatile and Healthier options as compared to other food trucks
- Quick Service to customers so they don’t need to wait too long
- Food and Drink options all in one place
- Delivery Options for people who cannot make it to the food truck
6.2 Sales Strategy
No business plan for a food truck is complete without a sales strategy. For Eat Out, these will be:
- We will advertise through word of mouth by having at least one truck in carnival or tourist locations.
- We will offer free delivery to the first 100 customers
- We will advertise through all social media channels
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6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
|Unit Sales||Year 1||Year 2||Year 3|
|TOTAL UNIT SALES||44,500||47,170||50,000|
|Unit Prices||Year 1||Year 2||Year 3|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|Direct Cost of Sales|
|Subtotal Direct Cost of Sales||$664,000.00||$774,224.00||$861,711.31|
Employee lists are an essential part of food truck business description. These details are often part of every business plan including gourmet food store business plan. Just like business plans for food trucks that Henry looked into, he also figured out the capacity of employees he needed to run Eat Out.
7.1 Company Staff
The employees required to sustain food truck business model of Eat out are:
- 1 Co-Manager to help in overall operations in each truck
- 5 Professional Chefs
- 2 Chef Assistants in each truck
- 1 Social Media Manager
- 4 Drivers for trucks
7.2 Average Salary of Employees
|Year 1||Year 2||Year 3|
|Social Media Manager||$62,500||$68,750||$75,625|
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Writing a food truck business plan, just like a vending machine business plan involves detailed information about operations including financial details. Financial planning isn’t just to ensure that a business makes a profit. As a business graduate, Henry knew the importance of financial plan for food truck in sustaining the business.
Therefore, the financial plan for business plan of food truck comparing all costs and profits is given as follows:
8.1 Important Assumptions
|Year 1||Year 2||Year 3|
|Current Interest Rate||8.12%||8.20%||8.26%|
|Long-term Interest Rate||8.40%||8.44%||8.47%|
8.2 Break-even Analysis
|Monthly Units Break-even||5340|
|Monthly Revenue Break-even||$132,500|
|Average Per-Unit Revenue||$231.00|
|Average Per-Unit Variable Cost||$0.62|
|Estimated Monthly Fixed Cost||$163,800|
8.3 Projected Profit and Loss
|Pro Forma Profit And Loss|
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||$664,000||$774,224||$861,711|
|TOTAL COST OF SALES||$664,000||$774,224||$861,711|
|Gross Margin %||63.40%||65.29%||68.58%|
|Sales and Marketing and Other Expenses||$145,000||$148,000||$156,000|
|Total Operating Expenses||$664,200||$716,950||$780,750|
|Profit Before Interest and Taxes||$485,800||$739,320||$1,100,155|
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8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
|Pro Forma Cash Flow|
|Cash Received||Year 1||Year 2||Year 3|
|Cash from Operations|
|Cash from Receivables||$22,000||$23,760||$25,661|
|SUBTOTAL CASH FROM OPERATIONS||$73,000||$79,570||$85,936|
|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||$74,000||$79,000||$85,000|
|Expenditures||Year 1||Year 2||Year 3|
|Expenditures from Operations|
|SUBTOTAL SPENT ON OPERATIONS||$69,000||$70,000||$76,000|
|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||$69,000||$74,520||$80,482|
|Net Cash Flow||$21,000||$23,000||$25,000|
8.5 Projected Balance Sheet
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$1,000||$1,000||$1,000|
|TOTAL CURRENT ASSETS||$282,000||$315,840||$355,004|
|TOTAL LONG-TERM ASSETS||$24,400||$27,328||$30,744|
|Liabilities and Capital||Year 4||Year 5||Year 6|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$19,000||$21,280||$23,919|
|TOTAL LIABILITIES AND CAPITAL||$300,000||$329,280||$370,440|
8.6 Business Ratios
|Year 1||Year 2||Year 3||INDUSTRY PROFILE|
|Percent of Total Assets|
|Other Current Assets||2.11%||2.34%||2.59%||2.40%|
|Total Current Assets||149.80%||151.00%||152.00%||158.00%|
|Percent of Sales|
|Selling, General & Administrative Expenses||93.56%||96.09%||98.78%||97.80%|
|Profit Before Interest and Taxes||41.50%||42.62%||43.81%||33.90%|
|Total Debt to Total Assets||0.18%||0.18%||0.17%||0.40%|
|Pre-tax Return on Net Worth||74.08%||74.89%||75.00%||75.00%|
|Pre-tax Return on Assets||96.30%||101.12%||106.17%||111.30%|
|Additional Ratios||Year 1||Year 2||Year 3|
|Net Profit Margin||33.56%||34.60%||35.67%||N.A.|
|Return on Equity||55.80%||57.53%||59.31%||N.A.|
|Accounts Receivable Turnover||7.7||7.8||7.8||N.A.|
|Accounts Payable Turnover||15.6||16||16.3||N.A.|
|Total Asset Turnover||2.5||2.5||2.6||N.A.|
|Debt to Net Worth||-0.04||-0.03||-0.04||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$244,000||$257,664||$272,093||N.A.|
|Assets to Sales||0.85||0.87||0.89||N.A.|
|Current Debt/Total Assets||1%||0%||0%||N.A.|
What is a Food Truck Business Plan?
A food truck sample business plan contains all the information you need to plan a successful food truck business. Mentioned here is a business plan food truck example.
What are the main types of food truck companies?
There are multiple food niches for which food truck business plans are written. These include:
1. What are the main sources of revenues and expenses for a food truck business?
According to the business plan food truck sample above, the main sources of revenue in a food truck include catering gigs, regular sales, and delivery services. You can look into this business plan food truck for more details.
2. How do you get funding for your food truck business plan?
You can get funding for your food truck business by developing a strong food truck business plan pdf, like the one given above.
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OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.