If you like cooking and often receive compliments for the food you make, then you might have thought of getting into the food business at least once.
But restaurants require large funds and are not for everyone. If that is the case with you too, go savvy and minimal with a food truck.
A food truck is one of the most financially viable ways of getting into the food business.
So if you have great cooking skills, the right resources, help, and a food truck business plan you are ready to get going. Here we’ll discuss a few things you should keep in mind before getting started.
The food truck business stood at a massive value of 1.4 billion dollars in the US in 2019. It takes close to $55,000 to set up a food truck and it generates an annual revenue between $250,000 and $500,000.
As per the survey, 34% of the mobile chefs experiment and create new menu ideas & concepts for their customers. The expansion of the food truck market has happened due to the increased consumption of fast food, flea markets, and urbanization.
The increase in the working population who find food trucks more accessible for grabbing a quick snack has also contributed to the growth of the food truck business.
Comparing the food truck industry growth in 2019, it grew by 20% in 2020. The food truck industry is going to grow by 2.4% by 2021.
It sounds like a great business idea, right? Let’s look at how to jump into it with a successful business plan.
Things to Consider Before Writing a Food Truck Business Plan
Choose the right vehicle and location
The right size and type of vehicle will decide how convenient or inconvenient it would be for you to function every day.
Do your research and choose the vehicle that fits your needs the best. Apart from that, a good location is crucial to the success of a food truck business. The main source of attraction for a food truck is its accessibility. Hence, make sure you choose a super accessible location for your food truck.
Know your target audience
Knowing what kind of food your target audience prefers, what marketing message they can relate to, what are their preferred hang-out spots, and what qualities matter the most for them when it comes to food helps you build a customer-centric and profitable business.
Hence, before you do anything else try to figure out who your target audience is.
Get kitchen equipment and raw materials
The right ingredients and kitchen equipment are important, both to make your work easier and get the desired result with your food. Hence, it is important to get the right equipment before getting started but at the same time, you should ensure that you don’t go overboard with it.
Also, figure out a good source for acquiring your kitchen ingredients and raw materials to maintain consistency in the taste of your food. It is also a good practice to have a backup resource in case things don’t go as per the plan.
Get the required permits and licenses
Lastly, it is important to figure out all the legal formalities before you start planning. According to various resources, it takes up to 30 days to get all the required licenses for your food truck business.
Also, it is good to keep a checklist of all the necessary documents to make sure you don’t miss any.
Chalking out Your Business Plan
Despite the growing industry, not every food truck business can stand successful. A business plan is a guide to direct your efforts into a successful food truck startup. Let’s look at why you should have a food truck business plan.
Your income sources and budgeting your procurement require planning. The end-moment cash crunch and interrupted supply of items may hamper your smooth operations of the kitchen. The food truck business has never been a one-person job.
Your roadside adventure becomes enthralling when you standby nearby your favorite food truck. Being a food junkie, the sound of a favorite food truck on your street brings joy and a feeling of happiness. A restaurant on wheels at your place with your favorite food is mesmerizing.
Hungry during lunch hours? You just wanted to bite something soothing or something never tried before? Street food is the answer to all, and when it all comes to bringing your favorite kitchen on wheels at your place, then it’s a foodies heaven. Modern entrepreneurs are putting their kitchens to serve the best creations of their chefs.
If you are planning to start a new food truck business, the first thing you will need is a business plan. Use our sample Burger Boon – Food Truck Business Plan created using upmetrics business plan software to start writing your business plan in no time.
Before you start writing your business plan for your new food truck business, spend as much time as you can reading through some samples of food truck and restaurant business plans.
Reading sample business plans will give you a good idea of what you’re aiming for and also it will show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.
We have created this sample Burger Boon – Food Truck Business Plan for you to get a good idea about how a perfect food truck business plan should look like and what details you will need to include in your stunning business plan.
Food Truck Business Plan Outline
This is the standard food truck business plan outline which will cover all important sections that you should include in your business plan.
- Executive Summary
- Mission Statement
- Management Plan
- Operations Plan
- Marketing Plan
- Keys to Success
- Financial Statement
- Company Overview
- Legal Form of Business
- Management Team
- Anna Janicka
- Ewa Kameczura
- Advisory Board
- The Menu
- Secret Menu
- Protein Style
- Grilled Cheese
- Animal Style
- Industry Analysis
- Industry Profile
- Industry Structure
- Key External Drivers
- Products and services segmentation (U.S. data, 2015)
- Critical Success Factors
- Critical Risks
- Operations Plan
- Weekly Operations Plan
- Customer Queuing
- Taking Orders & Services
- Cleaning & Trash Plan
- Supply & Storage
- Working Hours
- Mobile Locations
- Strategic Truck Selling Locations
- Special Events
- Company Milestones
- Present (November)—January
- Years 1-2
- Years 2-3
- Weekly Operations Plan
- Competitive Analysis
- Basis of Competition
- Internal competition
- External competition
- SWOT Analysis
- Quality you can taste
- Competitive Advantage
- Basis of Competition
- Customer Analysis
- Target Market
- Major market segmentation
- Key Success Factors
- Proximity to key markets
- Must have license
- Effective quality control
- Offering a unique, differentiated menu
- Ability to control stock on hand
- Target Market
- Marketing Plan
- Marketing Objective
- Marketing Mix
- Local News Outlets
- Social media
- Getting Involved With Local Events
- Financial Analysis
- Capital Requirements and Use of Funds
- Income Statement (5 Year projections)
- Balance Sheet (5 Year projections)
- Cash Flow Statement (5 Year projections)
How to Write a Food Truck Business Plan?
Understanding the ecology of the food truck business is essential to plan out activities for implementation.
Approaching someone else to write the business plan for you may create a gap between your idea and write-up. A food truck business plan template provides the necessary structure to go on step-by-step in your business startup.
Your business needs such as goals, license, investment, recruitment, and financial management are all covered in synchronized format to go through smoothly. A business plan software is designed and structured by considering the needs of modern business requirements.
The business plan template provides you with seamless ease of writing and customizing your business plan.
By following the steps in the business plan, you become aware of how your business startup should go.
What to Include in the Food Truck Business Plan?
As a business person, you might be very concerned about the things considered in the business plan. It has a brief introduction of your business to the readers from starting scratch to cashing in profit.
The executive summary section covers the business plan summary in a short format to provide a quick glimpse. It contains a brief overview of the business, mission statement, products, marketing plan, operation plan, and management plans.
Company overview covers the key people in management and advisory board appointed for the business.
The main element of the food truck business is the mouth-watering menu. Experimenting, designing, and creating a unique menu for street food carving people is the key sales point.
Entering into something new without knowing the industry increases the chances of failure. In such a case, industry analysis of the business may bring clarity about the happening in the industry and keep yourself stay ahead in the industry. The industry analysis section covers the industry aspects, including risk factors and success factors too.
Managing a kitchen at a physical location and on wheels are two different things. Operational challenges like limited spaces, cleaning protocol, cleanliness & hygiene, and order processing are the topics covered under this section.
Beating the competition is hard when you are entering into a new industry. A well through knowledge about competitors and their strengths, weaknesses, and competitive advantages they established so far are covered under the competitor analysis section.
Understanding your target market and customer food habits may help you to stand with the creative food menu. The customer analysis section covers the market type and key success actors of the business.
A successful marketing plan for the business will lead you up all the way. Being available and letting people know that you are available are also important things. Designing a marketing strategy plan based on the target market provides the necessary ground to play boldly.
Sourcing funds for initial investment, careful spending, and budgeting for the smooth operation of the business is a key worth considering. An initial appraisal of the financial health of the business helps in the smooth transition of funds. All such financial data are covered and mentioned in this section with supportive lookouts.
Food Truck Business Plan Summary
A business plan template is an easy way to put your business planning in sequence to proceed step by step.
Modern business applications and ways of doing business evolved, and technology transfer helped in business transformation. Taking maximum helps from technology may help in reducing human efforts and ringing more outputs.
Writing an effective business plan through a business plan template is the technological advantage to replace the traditional way of writing a business plan.
After getting started with Upmetrics, you can copy this food truck business plan example into your business plan and modify the required information and download your food truck business plan pdf or doc file. It’s the fastest and easiest way to start writing your business plan.