Food Truck Business Plan
If you want to start a successful food truck business or expand your current mobile food business, you need a business plan.
Fortunately, you’re in the right place. Our team has helped develop over 100,000 business plans over the past 20 years, including thousands of food truck business plans.
The following food truck business plan template and example gives you the key elements you must include in your plan. In our experience speaking with lenders and investors, the template is organized in the precise format they want.
Food Truck Business Plan Sample
Below is an outline of each of the key sections of an example food truck business plan to help you write your own business plan.
I. Executive Summary
Business Overview
[Company Name], located at [insert location here] is a new, upscale food truck focusing on providing organic, healthy breakfast and lunch items. Our product line fits nicely with health trends nationwide – as individuals are seeking healthier lifestyles complimented by natural, low-fat, and organic foods.
Menu
[Company Name] will offer a menu of salads, soups and sandwiches. All products will use 100% all natural and organic ingredients. Several products on the menu will be highlighted as being lower in fat, cholesterol, or sodium.
Customer Focus
[Company Name] will primarily serve the residents within a 15-mile radius of our food truck. The demographics of these customers are as follows:
- 27,827 residents
- Average income of $74,700
- 58.9% married
- 49.6% in Professional occupations
- Median age: 38 years
In addition to this prime adult demographic for an upscale and healthy food truck, there are five elementary school, a middle school, and a high school. This will make [Company Name] an ideal location for parents to spend time while waiting for their children or to bring their children to after school.
Management Team
[Company Name] is led by [Founder’s Name] who has been in the food truck business for 20 years. While [Founder] has never run a food truck himself, he has taught cooking classes at the local culinary institute for 20 years and has worked as a sous-chef at some of the most upscale food trucks in the community over the past 10 years. As such [Founder] has an in-depth knowledge of the food truck business including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- There is currently no upscale and healthy food truck in the community we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to frequent our business when launched.
- Our location is in a high-volume area with little direct traffic, and will thus be highly convenient to significant numbers of passerby’s each day
- The management team has a track record of success in the food truck business.
- The upscale and healthy food truck business is a proven business and has succeeded in communities throughout the United States.
Financial Highlights
[Company Name] is currently seeking $320,000 to launch. Specifically, these funds will be used as follows:
- Truck purchase and customization (Design/build): $200,000
- Working capital: $120,000 to pay for Marketing, salaries, and lease costs until [Company Name] reaches break-even
II. Company Overview
Who is [Company Name]?
[Company Name], located at [insert location here] is a new, upscale and healthy food truck focusing on providing organic and delicious foods to the local community.
[Company Name] was founded by [Founder’s Name]. While [Founder’s Name] has been in the food truck business for some time, it was in [month, date] that he decided to launch [Company Name]. Specifically, during this time, [Founder] took a trip to Fort Lauderdale, FL. During his trip, [Founder’s Name] frequented a food truck that enjoyed tremendous success. After several discussions with the owner of the food truck, [Founder’s Name] clearly understood that a similar business would enjoy significant success in his hometown.
Specifically the customer demographics and competitive situations in the Fort Lauderdale location, and in [insert location here] were so similar that he knew it would work. Furthermore, after surveying the local population, this theory was proven.
[Company Name]’s History
Upon returning from Fort Lauderdale, surveying the local customer base, and finding a potential location, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].
[Founder’s Name] has selected three initial locations and is currently undergoing due diligence on each property and the local market to assess which will be the most desirable location for the food truck.
Since incorporation, the company has achieved the following milestones:
- Developed the company’s name, logo and website
- Created the menu
- Determined equipment and inventory requirements
- Began recruiting key employees with experience in the food truck industry
[Company Name]’s Menu
Below is [Company Name]’s initial menu. All items will be 100% natural and organic:
- Soups
- Salads
- Sandwiches
III. Industry Analysis
Industry Statistics & Trends
The following industry size facts and statistics bode well for [Company Name].
- Food Trucks will continue to perform well over the next five years, benefiting from consumers with deeper pockets able to spend on pricier gourmet food options. The industry is expected to enjoy a strong five years due to positive economic conditions and the gourmet food movement.
- Consumers are expected to demand higher-quality food, a wider variety of styles and tastes, better presentation, and, most importantly, more healthy menu options. Consumers are no longer willing to accept that choosing to eat street food means sacrificing quality or healthy options. Operators that include healthy options on their menus will be best situated for success. Vendors that continue to offer unique food options will also be in a strong position by carving out a niche and developing a loyal customer base. These customers will often visit the operator’s website or follow the company via social media to determine when the food truck is at a nearby location.
- The industry will also benefit in the next five years from an increase in the urban population, which is expected to comprise 81.9% of the US population. The industry benefits from agglomeration because it relies on high foot traffic. Additionally, urban dwellers are also more likely to purchase meals rather than cooking at home due to their higher-than-average incomes and limited spare time.
- The most successful food trucks will earn higher profit margins due to clever marketing and branding, which enables them to charge a premium for menu items.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the residents of [company location] and the immediately surrounding areas as well as those who work in [company location].
The area we serve is affluent and has an affinity to healthy and organic foods and beverages like we will be offering.
| Wilmette | Winnetka | |
|---|---|---|
| Total Population | 26,097 | 10,725 |
| Square Miles | 6.89 | 3.96 |
| Population Density | 3,789.20 | 2,710.80 |
| Population Male | 48.04% | 48.84% |
| Population Female | 51.96% | 51.16% |
| Target Population by Age Group | ||
| Age 18-24 | 3.68% | 3.52% |
| Age 25-34 | 5.22% | 4.50% |
| Age 35-44 | 13.80% | 13.91% |
| Age 45-54 | 18.09% | 18.22% |
| Target Population by Income | ||
| Income $50,000 to $74,999 | 11.16% | 6.00% |
| Income $75,000 to $99,999 | 10.91% | 4.41% |
| Income $100,000 to $124,999 | 9.07% | 6.40% |
| Income $125,000 to $149,999 | 9.95% | 8.02% |
| Income $150,000 to $199,999 | 12.20% | 11.11% |
| Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
We will primarily target the following four customer segments:
- Families: the town has a large family population. The food trucks will be perfectly positioned for an easy, grab and go meal for families.
- Local office workers: approximately 5,000 individuals work in offices within a quarter mile of our location and we expect a fair portion of these individuals to frequent us during lunch hours.
- Students: there is a middle school and a high school in the town and the high school are within one half mile. Students from these schools will be targeted to frequent [Company Name].
V. Competitive Analysis
Direct & Indirect Competitors
The following competitors are located within a 3-mile radius of [Company Name], thus providing either direct or indirect competition for customers:
Joe’s Tavern
Joe’s Tavern is the town’s leading local food truck and has been in business for 32 years. Joe’s offers a wide array of foods, with local bands as entertainment, and is a highly family friendly environment. .
Joe’s has an extensive menu, with some healthy options and some fried foods and bar favorites. While it has an established clientele, Joe’s Tavern does not differentiate itself as a healthy food choice.
My Time Organic
My Time Organic has been in business for 15 years. It offers a variety of baked goods, organic teas and coffees, and sandwiches served to-go.
While their food is entirely organic, they have a very limited selection of items and are not open for dinner. The location only has four sit down tables and is thus targeting to-go customers that are either stopping for a quick breakfast or picking up baked goods and coffee for work.
Kara’s Deli
Kara’s Deli is a recently opened food truck that offers breakfast, lunch, and dinner and is open until 1am nightly.
[Company Name] has several advantages over Kara’s Deli including:
- The Deli does not offer any menu items with organic ingredients.
- Kara’s has very little ambience and due to enormous portion sizes and low quality ingredients, the food is largely unhealthy.
While we expect that Kara’s Deli will continue to thrive based on its location and excitement about a new food truck, we expect that more and more customers will frequent [Company Name] based on the high-quality and organic ingredients we use and product selection.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- 100% Natural/Organic/High-Quality Ingredients: getting 100% Natural/Organic baked goods, soups, sandwiches and more in the local market is challenging and is being increasingly demanded by the local community
- Management: Our management team has years of business and marketing experience that allows us to market and serve customers in a much more sophisticated manner than our competitors.
- Relationships: Having lived in the community for 25 years, [Founder’s Name] knows all the local leaders, newspapers and other influences. As such, it will be relatively easy for us to build branding and awareness of our food truck.
VI. Marketing Plan
The Marketing Plan describes the type of brand [Company Name] seeks to create and the Company’s planned promotions and pricing strategies.
The [Company Name] Brand
The [Company Name] brand will focus on the Company’s unique value proposition:
- Offering organic, high-quality food items including baked goods, sandwiches, soups, salads and more
- Offering a convenient location that offers both eat-in or take-out options
- Providing excellent customer service
Promotions Strategy
[Company Name] expects its target market to be individuals working and/or living within a 15-mile radius. The Company’s promotions strategy to reach these individuals includes:
Direct Mail
[Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts and/or provide other inducements for people to frequent the food truck.
Public Relations
We will contact all local and area newspapers and television stations to tell them about the opening and unique value proposition of [Company Name].
Advertising
[Company Name] will initially advertise in local newspapers and sponsor community events in order to gain awareness.
Sampling
[Company Name] employees will initially give free food samples to passerby’s to enable them to taste the quality of our products and learn about us.
Ongoing Customer Communications
[Company Name] will maintain a website and publish a monthly email newsletter to tell customers about new events, products, and more.
Pre-Opening Events
Before opening, [Company Name] will organize pre-opening events designed for prospective customers, local merchants and press contacts. These events will create buzz and awareness for [Company Name] in the area.
Pricing Strategy
[Company Name]’s pricing will be moderate, so customers feel they receive great value.
VII. Operations Plan
Functional Roles
In order to execute on [Company Name]’s business model, the Company needs to perform many functions including the following:
Administrative Functions
- General & administrative functions including legal, marketing, bookkeeping, etc.
- Sourcing and storing ingredients
- Hiring and training staff
- Food preparation
- Ongoing menu creation and modification
- Order taking and fulfillment (for take-out and dine-in)
- Customer service
- Janitor/maintenance personnel to keep the food truck clean
Milestones
[Company Name] expects to achieve the following milestones in the following [] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Truck purchase and customization |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Launch [Company Name] |
| [Date 5] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is led by [Founder’s Name] who has been in the food truck business for 20 years.
While [Founder] has never run a food truck himself, he has taught cooking classes as the local culinary institute for 20 years. Two courses that he taught included:
- How To Cook for Everyday Eating – This course was designed to give students an overall understanding of basic dishes that could be cooked for everyday healthy home-style meals
- Vegetarian Cooking – This course was designed to give students an overall understanding of how to cook with the necessary vitamins and proteins needed to enrich a vegetarian diet without compromising on taste.
[Founder] has also worked part-time at food trucks throughout the region. Specifically, he has worked for Gerry’s Cafe and Mike’s Place, where he was responsible for overseeing kitchen quality.
[Founder] graduated from the University of ABC where he majored in Communications.
Hiring Plan
[Founder] will serve as the food truck manager. In order to launch the food truck, we need to hire the following personnel:
- Wait staff (4 full-time equivalents to start)
- Chefs (3 to start)
- Sous-chefs (2 to start)
- Assistant Food truck Manager (will manage cash register and other administrative functions)
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come from the sale of natural and organic food products to its customers.
The Company will have dine-in, takeout, and possibly delivery systems to cater to a broad spectrum of customers in its target market.
The major costs for the company will be food production costs and salaries of the staff. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.
Capital Requirements and Use of Funds
[Company Name] is seeking a total funding of $320,000 to launch its food truck. The capital will be used for funding capital expenditures, manpower costs, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Truck purchase and customization (Design/build): $200,000
- Working capital: $120,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions & Forecasts
Below please find the key assumptions that went into the financial forecast and a summary of the financial projections over the next five years.
| Menu Items | Utilization Percentage | Average Price Point |
|---|---|---|
| Breakfast | 25% | $7.00 |
| Lunch | 65% | $10.00 |
| Snacks | 10% | $6.00 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
