Food Truck Start up Business Plan Sample

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.

Executive Summary

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
• Parents-on-the-go
• School Children
• Tourists

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:

Franchise Business Plan

Helps the franchisee get business case approval from the franchisor

Company Summary

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.

Start-up Expenses
Legal	$172,400
Consultants	$0
Insurance	$25,100
Rent	$35,100
Research and Development	$10,000
Expensed Equipment	$52,200
Signs	$3,400
TOTAL START-UP EXPENSES	$298,200
Start-up Assets	$271,400
Cash Required	$181,000
Start-up Inventory	$35,100
Other Current Assets	$251,000
Long-term Assets	$217,000
TOTAL ASSETS	$955,500
Total Requirements	$1,253,700
START-UP FUNDING
Start-up Expenses to Fund	$298,200
Start-up Assets to Fund	$955,500
TOTAL FUNDING REQUIRED	$1,253,700
Assets
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
TOTAL ASSETS	$1,522,000
Liabilities and Capital
Liabilities	$18,200
Current Borrowing	$0
Long-term Liabilities	$0
Accounts Payable (Outstanding Bills)	$61,500
Other Current Liabilities (interest-free)	$0
TOTAL LIABILITIES	$79,700
Capital
Planned Investment	$1,253,700
Investor 1	$0
Investor 2	$0
Other	$0
Additional Investment Requirement	$0
TOTAL PLANNED INVESTMENT	$1,253,700
Loss at Start-up (Start-up Expenses)	$188,600
TOTAL CAPITAL	$1,442,300
TOTAL CAPITAL AND LIABILITIES	$1,522,000
Total Funding	$1,253,700

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Services

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:

• Burgers
• Salads
• Wraps
• Meat & Rice Combos
• Catering

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.

• Delivery

Eat Out will also list itself on online food ordering services such as Uber Eats to that people can order from anywhere.

• Fresh Drinks

Marketing Analysis of Food Truck Company

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.

Business Plan for Investors

5.2.2 Parents-On-the-go

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.

5.2.4 Tourists

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.

Market Analysis
Potential Customers	Growth	Year 1	Year 2	Year 3	Year 4	Year 5	CAGR
Office Employees	35%	46,100	55,320	66,384	79,661	95,593	10.00%
Parents On-the-go	30%	32,100	38,520	46,224	55,469	66,563	10.00%
School Children	25%	22,100	26,520	31,824	38,189	45,827	10.00%
Tourists	10%	18,100	21,720	26,064	31,277	37,532	11.00%
Total	100%	118,400	142,080	170,496	204,595	245,514	10%

 

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.

Marketing Strategy

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

Sales Forecast
Unit Sales	Year 1	Year 2	Year 3
Food on-the-go	13,500	14,310	15,169
Fresh Drinks	12,500	13,250	14,045
Delivered Food	12,000	12,720	13,483
Catering	6,500	6,890	7,303
TOTAL UNIT SALES	44,500	47,170	50,000
Unit Prices	Year 1	Year 2	Year 3
Food on-the-go	$30.00	$34.80	$40.37
Fresh Drinks	$30.00	$34.80	$40.37
Delivered Food	$32.00	$37.12	$43.06
Catering	$100.00	$116.00	$134.56
Sales
Food on-the-go	$405,000.00	$497,988.00	$612,326.04
Fresh Drinks	$375,000.00	$461,100.00	$566,968.56
Delivered Food	$384,000.00	$472,166.40	$580,575.81
Catering	$650,000.00	$799,240.00	$982,745.50
TOTAL SALES	$1,814,000.00	$2,230,494.40	$2,742,615.91
Direct Unit Costs	Year 1	Year 2	Year 3
Food on-the-go	$10.00	$11.00	$11.55
Fresh Drinks	$10.00	$11.00	$11.55
Delivered Food	$12.00	$13.20	$13.86
Catering	$40.00	$44.00	$46.20
Direct Cost of Sales
Food on-the-go	$135,000.00	$157,410.00	$175,197.33
Fresh Drinks	$125,000.00	$145,750.00	$162,219.75
Delivered Food	$144,000.00	$167,904.00	$186,877.15
Catering	$260,000.00	$303,160.00	$337,417.08
Subtotal Direct Cost of Sales	$664,000.00	$774,224.00	$861,711.31

 

Personnel plan

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

Personnel Plan
	Year 1	Year 2	Year 3
Manager	$30,000	$33,000	$36,300
Professional Chefs	$245,000	$269,500	$296,450
Chef Assistants	$125,000	$137,500	$151,250
Social Media Manager	$62,500	$68,750	$75,625
Drivers	$22,500	$24,750	$27,225
Total Salaries	$485,000	$533,500	$586,850

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Financial Plan

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

General Assumptions
	Year 1	Year 2	Year 3
Plan Month	1	2	3
Current Interest Rate	8.12%	8.20%	8.26%
Long-term Interest Rate	8.40%	8.44%	8.47%
Tax Rate	24.03%	24.21%	24.60%
Other	0	0	0

 

8.2 Break-even Analysis

Break-Even Analysis
Monthly Units Break-even	5340
Monthly Revenue Break-even	$132,500
Assumptions:
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
Sales	$1,814,000	$2,230,494	$2,742,616
Direct Cost of Sales	$664,000	$774,224	$861,711
Other	$0	$0	$0
TOTAL COST OF SALES	$664,000	$774,224	$861,711
Gross Margin	$1,150,000	$1,456,270	$1,880,905
Gross Margin %	63.40%	65.29%	68.58%
Expenses
Payroll	$485,000	$533,500	$586,850
Sales and Marketing and Other Expenses	$145,000	$148,000	$156,000
Depreciation	$2,300	$2,350	$2,500
Leased Equipment	$0	$0	$0
Utilities	$2,900	$3,000	$3,100
Insurance	$2,100	$2,100	$2,100
Rent	$2,900	$3,000	$3,200
Payroll Taxes	$24,000	$25,000	$27,000
Other	$0	$0	$0
Total Operating Expenses	$664,200	$716,950	$780,750
Profit Before Interest and Taxes	$485,800	$739,320	$1,100,155
EBITDA	$485,800	$739,320	$1,100,155
Interest Expense	$0	$0	$0
Taxes Incurred	$97,160	$147,864	$220,031
Net Profit	$388,640	$591,456	$880,124
Net Profit/Sales	21.42%	26.52%	32.09%

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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 Sales	$51,000	$55,080	$59,486
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
Cash Spending	$42,000	$42,000	$45,000
Bill Payments	$27,000	$28,000	$31,000
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
Dividends	$0	$0	$0
SUBTOTAL CASH SPENT	$69,000	$74,520	$80,482
Net Cash Flow	$21,000	$23,000	$25,000
Cash Balance	$27,000	$30,000	$33,000

 

8.5 Projected Balance Sheet

Pro Forma Balance Sheet
Assets	Year 1	Year 2	Year 3
Current Assets
Cash	$275,000	$308,000	$338,800
Accounts Receivable	$24,000	$26,880	$30,213
Inventory	$4,300	$4,816	$4,900
Other Current Assets	$1,000	$1,000	$1,000
TOTAL CURRENT ASSETS	$282,000	$315,840	$355,004
Long-term Assets
Long-term Assets	$10,000	$10,000	$10,000
Accumulated Depreciation	$19,400	$21,728	$24,444
TOTAL LONG-TERM ASSETS	$24,400	$27,328	$30,744
TOTAL ASSETS	$294,000	$329,280	$370,440
Liabilities and Capital	Year 4	Year 5	Year 6
Current Liabilities
Accounts Payable	$18,700	$20,944	$23,541
Current Borrowing	$0	$0	$0
Other Current Liabilities	$0	$0	$0
SUBTOTAL CURRENT LIABILITIES	$19,000	$21,280	$23,919
Long-term Liabilities	$0	$0	$0
TOTAL LIABILITIES	$15,000	$16,800	$18,883
Paid-in Capital	$30,000	$30,000	$31,000
Retained Earnings	$53,000	$57,770	$63,547
Earnings	$193,400	$210,806	$231,887
TOTAL CAPITAL	$285,000	$310,650	$341,715
TOTAL LIABILITIES AND CAPITAL	$300,000	$329,280	$370,440
Net Worth	$293,400	$319,806	$351,787

 

8.6 Business Ratios

Ratio Analysis
	Year 1	Year 2	Year 3	INDUSTRY PROFILE
Sales Growth	7.25%	8.03%	8.90%	3.00%
Percent of Total Assets
Accounts Receivable	9.21%	10.20%	11.31%	9.80%
Inventory	5.39%	5.97%	6.62%	9.90%
Other Current Assets	2.11%	2.34%	2.59%	2.40%
Total Current Assets	149.80%	151.00%	152.00%	158.00%
Long-term Assets	11.55%	11.60%	11.64%	12.00%
TOTAL ASSETS	100.00%	100.00%	100.00%	100.00%
Current Liabilities	4.90%	4.94%	4.98%	4.34%
Long-term Liabilities	0.00%	0.00%	0.00%	0.00%
Total Liabilities	7.59%	7.65%	7.72%	7.38%
NET WORTH	100.45%	101.25%	102.19%	110.00%
Percent of Sales
Sales	100.00%	100.00%	100.00%	100.00%
Gross Margin	94.60%	97.15%	99.87%	99.00%
Selling, General & Administrative Expenses	93.56%	96.09%	98.78%	97.80%
Advertising Expenses	1.52%	1.56%	1.60%	1.40%
Profit Before Interest and Taxes	41.50%	42.62%	43.81%	33.90%
Main Ratios
Current	34	35	36	32
Quick	33	33.8	34.645	33
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.
Activity Ratios
Accounts Receivable Turnover	7.7	7.8	7.8	N.A.
Collection Days	100	100	100	N.A.
Inventory Turnover	32.4	34.02	35	N.A.
Accounts Payable Turnover	15.6	16	16.3	N.A.
Payment Days	27	27	27	N.A.
Total Asset Turnover	2.5	2.5	2.6	N.A.
Debt Ratios
Debt to Net Worth	-0.04	-0.03	-0.04	N.A.
Current Liab. to Liab.	1	1	1	N.A.
Liquidity Ratios
Net Working Capital	$244,000	$257,664	$272,093	N.A.
Interest Coverage	0	0	0	N.A.
Additional Ratios
Assets to Sales	0.85	0.87	0.89	N.A.
Current Debt/Total Assets	1%	0%	0%	N.A.
Acid Test	29	29.12	29.16	N.A.
Sales/Net Worth	2.1	2.2	2.2	N.A.
Dividend Payout	0	0	0	N.A.

 

FAQ

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:

Barbeque

Slider

Tacos

Pizza

Drinks

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.

 

 

Download Food Truck Business Plan Sample in pdf