Table of Content

    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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    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:

    Food Truck Business Plans - 3 Years Profit Forecast

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    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.

    Food Truck Business Plans - Startup Cost

    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

    Note

    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.

    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