mobile food business plan

Table of Contents

• August 22, 2023
• Business Tips & Strategies

A Complete Guide to Starting Your Mobile Food Business

In the world of culinary entrepreneurship, concession trailers have emerged as an innovative and lucrative way to bring delectable treats and unique products to the masses. These mobile units offer flexibility, low overhead costs, and the freedom to reach diverse markets. Whether you’re a passionate foodie or an aspiring entrepreneur, this comprehensive guide will walk you through everything you need to know about starting your own concession trailer business.

Table of contents

Introduction.

Concession trailers, also known as mobile food units, have gained immense popularity as a versatile platform for entrepreneurs to showcase their culinary skills and products. These trailers allow you to take your business on the road, serving customers at events, festivals, markets, and even street corners. With the freedom to move and the potential for high profits, the concession trailer industry has become a thriving sector in the food and beverage market.

Types of Concession Trailers

Exploring different categories.

Concession trailers come in various categories, each tailored to different businesses. Food vending trailers are the most common, designed to serve a wide range of delectable treats, from gourmet hot dogs to artisanal ice cream.

Food Vending Trailers

Food vending trailers are a popular choice for those who want to bring their culinary creations to the masses. From serving gourmet sandwiches to flavorful ethnic dishes, these trailers offer a platform to showcase your culinary talents.

Retail Merchandise Trailers

Retail merchandise trailers are a unique take on the traditional concession trailer. These trailers allow entrepreneurs to sell products like clothing, accessories, and novelty items, making them an excellent choice for artisans and boutique businesses.

Choosing the Right Concession Trailer

Factors to consider.

Selecting the right concession trailer is a crucial step in launching your business. Consider factors such as size, layout, and equipment when making your decision.

Customization Options

Custom concession trailers offer a way to stand out in a competitive market. Tailoring your trailer’s design to match your brand’s identity can attract more customers and leave a lasting impression.

Legalities and Regulations

Licensing and permits.

Before hitting the road with your concession trailer, it’s essential to understand the legal requirements. This includes obtaining the necessary licenses and permits to operate in different locations.

Health and Safety Standards

Maintaining high health and safety standards is paramount in the food industry. Adhering to hygiene regulations not only keeps your customers safe but also builds trust and credibility.

Setting Up Your Trailer Business

Selecting high-traffic locations.

Choosing the right locations for your concession stand can significantly impact your business’s success. Consider events, festivals, markets, and areas with high foot traffic to maximize your customer reach.

Designing an Appealing Menu

Crafting an enticing menu that showcases your specialty dishes is key to attracting customers. Offering a diverse range of options ensures that there’s something for everyone.

Running a Successful Concession Stand

Maximizing revenue.

To ensure the profitability of your concession stand, focus on strategies to increase revenue, such as upselling, offering combos, and implementing loyalty programs.

Building a Loyal Customer Base

Building a loyal customer base is essential for the long-term success of your business. Providing exceptional customer service and consistent quality can turn one-time visitors into loyal patrons.

Maintenance and Upkeep

Ensuring longevity.

Regular maintenance is crucial to keep your concession trailer in top condition. Addressing minor repairs promptly can prevent major issues and extend the lifespan of your investment.

Regular Cleaning and Maintenance

Maintaining a clean and inviting concession stand is essential to attract customers. Regular cleaning of both the interior and exterior creates a positive impression and ensures a safe environment for food preparation.

Financing Your Concession Trailer

Exploring financial options.

Financing your concession trailer may involve various options, such as personal savings, bank loans, or investors. Consider the pros and cons of each to determine the best fit for your business.

Securing Small Business Grants

Exploring available grants for small businesses can provide a valuable source of funding. Research and apply for grants that align with your concession trailer venture.

Concession trailers offer a unique opportunity for culinary entrepreneurs to take their passion on the road and share it with a wide audience. From choosing the right trailer to navigating legalities and building a loyal customer base, this guide has equipped you with the knowledge to embark on your journey. Remember, success in the concession trailer industry requires dedication, creativity, and a commitment to delivering exceptional products and experiences.

FAQs: Concession Trailers

• How much does it cost to start a concession trailer business? Starting costs can vary widely based on factors like trailer size, equipment, and location. A basic setup can start from a few thousand dollars, while more elaborate setups can require a substantial investment.
• Do I need a special license to operate a concession trailer? Yes, you’ll need specific licenses and permits to operate a concession trailer legally. Requirements vary depending on your location and the type of food you’re serving.
• Can I serve a variety of foods from my trailer? Absolutely! Concession trailers are versatile and can serve a wide range of foods, from snacks to full meals. Just ensure you have the necessary equipment and preparation space.
• What are some popular locations for setting up a concession stand? Popular locations include events, festivals, farmers’ markets, sports games, and busy street corners. These places attract a diverse crowd and offer ample foot traffic.
• How can I make my concession trailer stand out from the competition? Focus on unique menu items, eye-catching branding, and exceptional customer service. Engage with your customers on social media and offer promotions to create a strong presence in the market.

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How to Write a Food Truck Business Plan – Download Template

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Want to look inside the business plan of a real food truck business? We’ve organized detailed business plan templates from successful food trucks and made them available to you in PDF and Word doc in this post. In addition to offer templates, we give you detailed instruction how to complete each section of the plan using this guide.

Before we dive in, keep in mind that it could take weeks if not months of planning to develop a business plan that’s helpful. Whatever time takes for you to write the business plan will be well spent. When researched correctly this document serves as the “game plan” for operating your entire mobile food business and sets the direction of your company.

Approach this document seriously because it can become the roadmap to operate your business and ensure you’re set up for success. When you’ve finished writing your plan, you should know where you plan to vend, estimated food costs, the marketing plan, and how you’ll raise money for the food truck. Pretty important stuff right? Let’s dig in.

Introduction

I want you to get the most value possible out of your business planning process. Why? I believe having an accurate business plan gives you the best odds of success for operating a profitable food truck.

And if you’re going to be investing tens of thousands of dollars into a food truck or trailer, cooking equipment, and permits, why not invest a few days creating a detailed plan for how to run the business.

Here’s one example why going through this process can be helpful from our Annual Food Truck Academy class, where train future food truck owners how to start a food truck. One student completed her research estimating food cost, overhead, and anticipated sales as part of her business plan. Then she came back and revealed that based on her current plan, the food truck wouldn’t be profitable. After factoring in tax, labor, and food costs there were no profits left over.

Our student was initially discouraged by the numbers, but I was happy. It’s much better to identify a revenue short-fall before you start the business than months after when you see sales coming in, but can’t figure out why there’s nothing left in the bank account. As a result of the work invested on the front end through planning, she was able to evaluate her ingredient cost and pricing to create a business plan that set herself up for success.

Still, many first time food vendors don’t take the time to put in this work. It’s a shame because it’s so easily avoidable.

One more tip before we get into researching and writing the business plan, don’t get overly hung-up on the structure of the document. Unless you plan to apply for a small business loan (then you will need to be more concerned about formatting, but let’s worry about that later), you’re not going to be graded on how pretty the document looks or how nice the nice fonts and illustrations. This isn’t an assignment for school where you’re going through the motions to get a B.

Instead focus your energy on making this plan useful for your business. Find specific locations that you plan to sell food. Get the contact information for these venues to learn how you can get into them. Figure out your exact food cost and how much it’s going to cost to get permits in your area. Putting ink to paper or word document is going to make the operations of your business real.

Now let’s get on with making your game plan!

Note to Reader: This is part of a series of posts following the process of starting a food truck with Anthony Salvagno (featured in the image below) as he writes a business plan, seeks funding, develops a concept, builds a menu, and ultimately launches his first food truck. Listen to the audio lesson inside this post to learn more about writing a winning food truck business plan.

The person that doesn’t have one [a business plan] sets themselves up for failure. – Anthony Salvagno on the importance of thinking before leaping into a business.

Serious about Starting a Food Truck?  Click Here To Get Our Free Food Truck Business Kit.

Download Business Plan Templates

In my opinion, this case study is most effective when listening to the audio and downloading the example that Salvagno was kind enough to provide for this post. I’ve also linked to other resources that can help you write your own business plan.

Download Business Plan – Yes, this is the PDF business plan used to acquire $5,000 for a food truck during a business pitch competition. This document is referenced in the companion podcast.

Download Business Plan Template – Here’s a sample template you can use and edit for your own truck.

SBA – Create Your Business Plan – The Small Business Administration (SBA) does an excellent job outlining the steps needed to create a business plan. It’s not food truck specific, but it gives you what you need and there’s plenty of valuable information here.

You can learn a lot by reading business plans for other food businesses like restaurants as well. Operating a profitable restaurant is similar to operating a successful mobile food business. The main different is that a trailer is that it’s mobile.

Components of a Business Plan

Below is an outline of the key sections you’ll need to complete for a standard business plan with a description of how each section applies to a food truck or trailer business. Complete each section and you’ve got yourself a real plan for your business my friend.

Keep in mind that if you’re creating this document for yourself and not a banker you don’t need to get fancy with the formatting. The important thing is to have a detailed plan for the business before you open. If you feel the burning desire to make this look nice, you can make formatting updates after the

Executive Summary:

This is an overview of the information contained in the business plan and should introduce the name of your food truck and the food you plan to serve. This section should only be one page in length. Give readers the high-level overview of what the plan. You’ll have plenty of opportunity to dive into the nitty gritty in the next sections of the document.

The purpose of this section in most business plans is to give prospective investors information about your startup. Lenders reviewing a small business loan might be another audience, although they will be much more focused on financial side of things. But for most of our readers this section is for you, a business partner, and potentially a spouse.

For our Executive Summary we included 2 – 3 sentences describing these important aspects of the business. The provides anyone reading this document with a general understanding of what the business is and how it expects to make money:

• The food item we plan to sell and specialize in.
• The key people that will manage the business. In this case, the food truck will be owned and operated by two partners.
• The business entity we plan to form. We formed an LLC.
• Where you plan to operate the business and hours of operation. Our initial plan had us operating 5 days per week for lunch and dinner.
• The basic marketing plan. Again you’ll dive into the details in the marketing and sales portion of the document.
• Projected cost to fund the business and anticipated revenue.
• Future goals. How will you know you’ve won? For some this will be a specific revenue number and for others this could be opening up a franchise with 100s of locations.

Again, unless you plan to bring on outside investors don’t worry too much about perfect formatting in the executive summary. This is to ensure you and your partners are clear on the high-level plan for the business.

Food Truck Mission Statement:

The mission statement for a food truck can be as short as a sentence or as long as a paragraph. This statement should define what you plan to serve, who you will serve, and the ultimate vision for the business. When done right the mission statement should guide every major decision you make for the business.

Here’s the mission statement from our business plan as an example: 

To provide the residents of our city, young and old, an out of this world gourmet peanut butter and jelly inspired sandwich experience. We use local ingredients and provide gluten-free, contaminant-free products for those with special dietary needs.

When a mission statement is done right it should actually influence how you operate and run your business day to day. For example, since the utilization of local ingredients is part of our mission statement, we’ve got to actively be looking for local suppliers to buy inventory. If we don’t, we’ve failed.

We also need to consider the dietary needs of different groups of people. This impacts the sandwiches we put on our menu every day. Again, if we don’t do this, won’t reach the goal we’ve set out to achieve.

A mission statement can be the most influential part of the business plan when it’s used the right way. On the other hand, this guide can be forgotten when it’s not used to guide decisions. To learn more about making impactful mission statements, watch this interview to go deeper on the subject.

Company Concept and Description:

This is the fun part. Here you will describe what you hope the food truck will become, the food you plan to serve, and why you believe it will be a successful business. For most food trucks this section only needs to be a few paragraphs in length.

Make sure to include information on why your food is both desirable and unique to customers in the area. Also, if you have some type of theme, like an island theme for example, include little details like this in the description.

If you plan to operate something more mainstream like taco truck, take the time to express what it is that makes you different in your market. A common way food trucks differentiate themselves is through their ingredients or style. For example, you could be the only taco truck in town that uses organic, locally raised meats. Or you might be the only one in town that specializes in making fish tacos. Find a way to standout and offer something that isn’t available elsewhere.

You want folks that read this section to be able to clearly envision the kind of overall experience they’ll enjoy when visiting your food truck. Here are a few guidelines for writing this section:

• What food will you serve?
• How is your food different than other vendors in the area?
• Is there a specific type of consumer you want to attract?

As you can see from our own business plan, we differentiated ourselves through seasonal menu changes all the time and have menu options that cater to people that require a gluten-free diet. It’s also worth noting that our core product of peanut butter and jelly sandwiches is unique to the market.

Market Analysis:

Understand the players in your market before starting a business.

For smaller markets with a couple hundred thousand people living nearby this section might be short and include just 4 – 5 other trucks. However, if you’re entering a market like Los Angeles this section will be larger and more in-depth.

If you’re planning to enter a market that has 10 traditional taco trucks and you plan to start a traditional taco truck too, it will be to differentiate yourself from other vendors in the area.

Consider adding a spin to your own food concept like serving Asian tacos instead to provide local consumers will more variety and fill a potential need. If you’re not sure about the type of truck you want to create yet, looking at the market and seeing what type of food is missing can be a smart way to approach this.

In this area you’ll also want to identify the type of customer that will frequent your establishment. Any data about local trends that you can find will be useful to include as well like this report from IBIS World that forecasts growth in the United States food truck industry for the next 5 years. Google can be a good friend in locating the data to include in the document.

Management Structure:

Most food truck owners start with a management structure of one.

This section is straightforward for most food vendors. You can list yourself as the owner and operator if that applies. But don’t forget about key employees or partners too. Many food trucks need a team of 3 – 5 employees to operate successfully during a lunch rush. Make sure these long-term players are accounted for.

In our business plan, it’s a partnership between brothers. The work load is split up between one brother operating the front of the house and marketing: accepting orders, booking new business and events, emailing and calling catering leads. The other brother focuses more on the chef duties including sourcing ingredients, cooking food, working with suppliers, and ensuring food quality.

Industry Survey Results: What is the Average Income of a Food Truck Vendor?

If you have more than one owner of the business this is where you want to take the opportunity to clearly define roles. This is an extremely important section of the document when multiple parties and their money are involved. By outlining everyones responsibilities in this document, it serves as a record of who was in responsible for certain aspects of the business. The more people involved, the more diligent you need to be with assigning tasks.

If it’s not written down, it’s easy for partners to recall things differently. This will help avoid conflict in the future for all parties involved. You need this.

The more stakeholders involved, the more complicated this section will be. You should also include investors and advisors in this section even when people aren’t excepted to help with the daily business operations. Outline what value these people have delivered to the business and what return they can expect in the future.

Product Line:

Ready-made meals can be a great way to diversify your product line.

Finally… This is the section you finally get to describe your food. I recommend outlining the main menu items and any signature dishes that you have in this section. But don’t stop at just the food that you plan to serve.

Other products and services that you plan to offer could include corporate catering gigs or weddings. These can be the biggest money makers for a mobile food vendor.

It pays to think outside the box too in this section. Some vendors that started out by serving food out the window of a truck exclusively have now begun to sell their trademark dishes in stores, online, or at restaurant. Don’t forget to think about possible paths for growth in the business.

• Previous guest of the show Martie Richie of Motley Crews is an excellent example of someone that is doing just that. They’ve expanded to selling snacks online through their e-commerce website and at local gas stations.
• Malcolm decided to open a restaurant to attain more consistent sales, especially through the slow winter months.

Sales and Marketing:

A food truck can serve as a mobile promotional platform.

How do you plan to market your business and get sales? One of the biggest factors that determine the success / failure of a lunch truck is location. Will you be able to get into major events or areas with a lot of potential customers?

One of the biggest favors you can do for yourself to input into your sales and marketing plan is to create a tentative list of places you might be able to vend. Get extremely granular with this task. In fact, it might even help to print out a map to evaluate where the best potential vending locations are in your area.

Here’s the information you should gather as part of this process. You can add this information inside the sales and marketing section of the business plan as you gather it. 

• Name of the vending location and cost details.
• Contact information including telephone, email, and address. Ideally a dedicated point of contact in charge of booking vendors.

Here are some locations that work well for food trucks:

• Farmer’s markets: You can usually find vendor information listed on the website.
• Annual events: Browse your cities website for a list of upcoming events like car shows, fairs, or parades.
• Social Media: One of the easiest ways to find good vending locations is to monitor the social media accounts of popular food trucks in your city. If they are vending somewhere, it’s probably a lucrative location that you might be able to vend at as well.
• Corporate Workplaces:  Big corporate employers with a few thousand employees working at a single location can be a good option for generating consistent lunch sales.
• Breweries and Wineries: Places like this often don’t want to build in a restaurant into their operations and partner with mobile food vendors to supply food to guests.

Pro Tip: Make sure to have a a lot of  different parking location options before getting started. Not every location you try is going to be profitable. By developing a big list of opportunities upfront, you won’t feel stressed about vending options because your dream vending location didn’t work out.

There are an endless number of tactics you can use to attempt to drum up business in the early days, but for most successful food business getting into events with big hungry crowds is the first step to building a brand locally and gaining traction. Learn more about finding profitable vending locations here.

Funding Request:

Just another day on the food truck.

The key to a good funding request is knowing exactly how much money you need and having a detailed plan explaining how you plan to use it. For food truck owners, the biggest early expense will be in buying a food truck and the kitchen equipment installed onboard.

You should also account for the amount of money you’ve raised or have on hand in this section. In our business plan for example, we were looking at $55,000 all-in to start the business. This would include the purchase of a food truck, our initial inventory of food, and permits. Be extremely diligent in outlining how you intend to spend every dollar in this section. It will safe you time late in the process and lenders will appreciate your attention to detail.

We were able to bring $14,850 or 27% of that total investment to the table that was raised mostly through personal savings, a small crowd funding campaign, and winning a business plan contest. The remaining 73% was acquired through the help of a small business loan. Being able to start a real food business like this for below $15,000 out of pocket is pretty cool.

Reader’s Note: If you’re not planning to seek funding through a traditional bank (or are simply planning to take out a personal loan based on your credit history) you can technically disregard this section, although you should still analyze closely how you intend to spend your money.

If you plan on asking for friends and family for money this attention to detail can help too. Even if they’re not in the food industry, it’s easy to understand that a commercial oven or fridge could cost a few thousand dollars. If you have a specific use for funds that makes sense, it increases the likelihood of obtaining a loan with friendly terms amongst family.

Financial Projections:

This is an extremely important area to spend time on before starting a food truck. I’d argue this section is as important as the product, sales and marketing plan of the business plan. This section will offer your first insight into whether or not the business idea you have is going to work or not in its present form.

From a practical standpoint, the main thing you want to figure out is what your break-even point for the business is. In other words, how much food do you need to sell in order to pay all of your monthly expenses? This is a simple, but critical question you must find the answer to before getting started.

You can determine the break-even point for a food truck business with this formula: 

Fixed Costs / (Price – Variable Costs) = Bread Even Point

Here’s the due diligence you’ll need to complete to find the break-even point for your food truck:

• Add up the total monthly expenses you expect for the food truck to find your fixed cost number. This number will include loan payments, insurance, cell phone, and everything else you need to pay on a monthly. Use our guide to create a quick estimate of monthly costs.
• The price refers to how much you plan to charge customers and how many sales you anticipate in a given month. From your perspective the less sales you need to break even the better as it will.
• The variable costs is the expenses you put into cost of goods sold. In your case this if the food you’re selling. As you sell more, your variable cost will also increase because you need to buy more product. This is a good thing!

Based on your current fixed cost and variable cost estimates, find out how many total sales of your food total you would need to generate to pay all your bills. Does that number seem seem attainable based on the frequency you plan to vend each month?

Figuring out what your sales is going to be in the future will be the biggest leap of faith you make in the business plan. I always urge people to be being super conservative with sales estimates. You are going to have slow days and extremely busy days when you get out into the real world. Being financially ready for challenging times will make your business more resilient.

Forecasting Financial Projections:

In the financial projections, focus on estimating how much money you will make in the first year of the business. Investing too much time on longterm projections 5-years out doesn’t make any sense since you haven’t actually started the business yet. After the business has been operating for about a month, you’ll want to go back and review the previous estimates to ensure everything is making sense.

While estimating the projected revenue will require some guessing, figuring out startup and monthly operating expenses once the business gets going is much simpler. While there might be unexpected expenses that pop up before opening the business, you already know the monthly bills like insurance, phone, inventory, loan payments (if you have one), commissary.  Read our post that includes a spreadsheet on the Complete Breakdown of Food Truck Operation Costs for help researching this section.

Here are a few other quick tips for the financial projections section: 

• Always start a business with some extra capital on hand and establish an emergency business fund. We suggest $3,000 – $5,000 minimum. You don’t want to find yourself underfunded going into the second week so and not be able to purchase supplies. Unfortunately, break downs also happen in this business so you want to be ready for them.
• You’ll need to be comfortable making a few “educated guesses” in this section especially when it comes to revenue projections. Always be conservative with sales estimates. If you do end of exceeding expectations then that’s fantastic.
• The primary goal of completing this process is to understand how much money you’ll require to operate the business and break even on a monthly basis. After determining a break-even, find out how much it will require to pay yourself a comfortable wage after taxes.

This is the place to include your permit from the health department, photos of the vehicle, and other legal documents needed to operate a mobile food business. This is a good spot to add photos of food or people smiling and enjoying your meals at events (if you’ve vended at an event already). Add in anything else you feel could be helpful too.

Bonus Tips When Creating Your Building Plan

Here are a few key concepts pulled straight from the audio companion of this guide.

• Don’t be afraid to ask current food truck owners for help when writing a plan. They have the best understanding of what the market looks like and may even help you to create more accurate market projections. Not everyone will be willing to lend a hand, but some might.
• The financial projections section is the most important and practical element of the business plan. You need this to be able to evaluate how much money you’ll to start the business and what prices you’ll need to charge for longterm success.
• Don’t invest a ton of your time into longterm projections especially years 3, 4, and 5 of the food truck. Restaurants come and go. You won’t be able to make accurate projections out that far anyway.
• You should be extremely detailed when estimating expenses. Including often overlooked items like sandwich wrappers, napkins, mops, buckets, and cleaning supplies. Knowing how much cash you need for day one of starting the truck right is critical.

Is Creating a Business Plan a Total Waste of Time?

Good question. That really depends on who you ask.

There’s a whole group of like savvy entrepreneurs and business people who don’t believe in the business plan at all. They’re like okay, you have this written document that you never ever use again. But then there’s this whole other group of people that actually believe in the business plan.

If you’re planning to try to get a traditional bank loan you will need to create a business plan. Having a written plan does not guarantee you will be approved for a loan. In fact, you might get turned down even with an okay credit history.

While it’s not perfect, I firmly believe going through the process of writing a business plan, when taken seriously improves your chances of success. You want to understand your competition. You want to understand where you plan to park. You want to have a few ideas about how you might market your business and what your overhead is going to be before starting the business. This document helps you make more educated decisions based on the work you’ve put in.

The Bottom Line: Will drafting a detailed business plan like this one take a long time? You bet it will. If you do it right, it could easily take a month or two to complete. But the benefits of doing so can be worth it and pay dividends for the life of your business.

So what’s the next step? I suggest enrolling in our free food truck business kit to learn more about the startup process. 

Want to start your own food business?

Hey! 👋I’m Brett Lindenberg, the founder of Food Truck Empire.

We interview successful founders and share the stories behind their food trucks, restaurants, food and beverage brands. By sharing these stories, I want to help others get started.

If you liked this story, sign up for our newsletter that includes our food business startup kit and most popular interviews sent straight to your inbox.

Know someone interesting that should be interviewed on the website? Tell us about them here. 

About the Author: Brett Lindenberg

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How to Write a Real Business Plan for a Food Truck in 9 Steps

A business plan is vital for most new businesses but it is an absolute must imperative for a prospective mobile food vendor. By creating food truck business plans, you accomplish some important things:

• Make a step-by-step plan for getting your food truck up and running.
• Learn about the different aspects of running a food truck, as well as finding out who your local competition is and who in your market will be your potential customers.
• Document important your menu, kitchen layout, ingredient costs, marketing plan and more!

A business plan is especially helpful to those new to the mobile food industry. It creates a blueprint for building your food truck business, and will tip you off to problems you may not have previously considered, such as the hoops you need to jump through for licensing and health codes.

Page Contents

Questions a business plan should answer:

The 9 sections of a food truck business plan, 1.) executive summary, 2.) company description, 3.) market analysis, 4.) business operations plan , 5.) management & ownership, 6.) service or product line , 7.) marketing strategy, 8.) financial section, 9.) appendix section , before you submit the business plan, plan to update your business plan.

• What problem or problems exist that your business is trying to solve?
• What is the potential consumer’s pain?
• How deep and compelling is this pain?
• What solutions does your business have to resolve the problem(s)?
• How much will it cost to solve these problems now?
• How big can your business growth if given the requested capital?
• What will the customer pay you to solve this problem?
• How will solving this problem make your company a lot of money?
• What alliances or relationships can you leverage with other companies to help yours?
• How much cash do you need to find a path to profitability?
• How will the skills of your business team, their business knowledge, and track record of execution make this happen?
• What will be the investors’ exit strategy?

Here are the key sections of a business plan you’ll need to write a in-depth food truck business plan.

Start out with an overview of the meat and potatoes of your business plan. Think of it as the introduction. Develop it so it keeps your readers attention. Here are two tips for writing an executive summary geared toward a food truck business plan.

Give the reader (potential investors or yourself) the basics of your business concept. What is the style or cuisine of food you’ll be serving from your new food truck, the name of the business and your primary parking locations (parts of the city, events, catering).

Explain why you are well suited to operate a food truck. Do you have previous cooking experience in food trucks or restaurants? If not, do you have any experience in the food truck business? If the answer is no, then you need to be prepared to sell them on the idea that despite your lack of experience, you are still the perfect person for this new food truck business. You could also include a short mission statement in this introductory section of the business plan.

This part of food truck business plans is sometimes referred to as a business analysis. It explains in more detail (than the executive summary) to the reader the operation location, legal name and the concept of the food truck you want to create. This is where you will give details on your local competition. This includes food trucks and restaurants, population of the areas you will operate and other information you have gather during your research.

This part of food truck business plans is where you lay out your marketing strategy. There are three primary parts to a market analysis section :

Who will be your customers? Is your food truck going to serve business professionals at lunch time? The bar crowd on late nights? Explain your customer base and why they are going to flock to your new food truck, not the competition.

Competition

Who is your competition? Many people opening a new food truck assume everyone will prefer their truck to the existing trucks in the area. Don’t underestimate them. Many of them have already built a loyal customer base. Poaching poach customers from them will not be easy.

Find out as much as you can about your competition, including their menu, parking locations and prices. Then explain in a paragraph or two how you will compete with the already established businesses.

Attending food truck festivals can be a smart strategy for vendors.

This section is where you explain about your when and where you plan to operate. Creating a business operations plan for a hot dog truck involves outlining the daily activities, logistics, and strategies that ensure the business runs smoothly and efficiently. Below is a sample operations plan tailored for a food truck business. In this example, Monday and Tuesday serve as off-days for the food truck.

Vending Locations List

Creating a list of vending locations with detailed contact and address information is essential for a food truck owner for several reasons. First, it helps in planning the truck’s route and schedule efficiently, ensuring that you maximize your presence in high-demand areas and during peak times. Second, having a list facilitates building relationships with location managers or event organizers, which can lead to more regular vending opportunities.

This list acts as a reference for planning your daily, weekly, or monthly schedule, allowing you to contact the right people and secure spots ahead of time. It also helps in creating a diversified plan that includes a mix of high-traffic locations like business parks, universities, food truck festivals, breweries, city parks, as well as special events like night markets, ensuring a steady supply of customers.

As a food truck owner, you always to be on the look out for potential vending locations. When you find new opportunities, add them into your business plan so you’ve got plenty of people to reach out to in the event a profitable location drys up.

Who is going to run the business? What role will you play in daily operations? Are you going to be the accountant, driver, head chef and marketing guru? If so, how do you plan to get this all accomplished? Many new food truck owners start out on their own others bring in staff to help with day to day operations. Explain who is going to do what, including any potential employees whom you feel will be a great benefit to your new food truck.

Sample Management Section

The management team of Urban Dog is committed to building a brand that stands for quality, efficiency, and innovation in the food truck industry. Our team combines culinary expertise, business acumen, and a passion for delivering exceptional dining experiences.

2. Management and Execution Team

• Alex Johnson, Founder, CEO, and Head Chef : With over 10 years of experience in the restaurant industry, including managing a successful chain of casual dining restaurants, Alex brings a wealth of operational knowledge and leadership skills. Alex is responsible for overall business strategy, financial management, and partnership development.
• Jamie Lee, Cashier and Operations Manager : A culinary school graduate with a passion for American street food, Jamie has worked in various capacities in kitchens across the country. Jamie oversees menu development, food quality control, and day-to-day operations of the food truck.
• Morgan Rivera, Line Cook Marketing and Customer Relations Manager : With a degree in marketing and experience in brand management for food and beverage companies, Morgan leads the marketing efforts, social media presence, and customer engagement strategies to build a loyal customer base and increase brand visibility.

Even if you only have two people running the food truck, I would still make this section if only to clearly divide some of the responsibilities on paper. For example, who is going to manage the social media marketing? Who is going to source ingredients? You can sort of the various tasks here.

This section descriptions of the food truck’s menu items, ingredients, and preparation methods. This section can also discuss sourcing policies, menu flexibility, and any merchandise or additional services offered. If you plan to offer catering services, make sure to include this as part of the plan too. Here’s an example on what this could look like on a food truck.

Other notes you could include in this section: 

• Sourcing Policies: This food truck prioritizes locally sourced ingredients to support the community and ensure freshness. Beef and vegetarian sausages come from local farms known for their organic and sustainable practices, while cheese and beer are sourced from nearby dairies and breweries.
• Menu Flexibility: The menu is designed to cater to a variety of dietary preferences, including vegetarian and gluten-free options. Seasonal specials and new items are introduced regularly to keep the menu exciting and aligned with customer feedback.
• Merchandise and Additional Services: In addition to the main menu, the truck may offer branded merchandise such as t-shirts, hats, and reusable cups. Special catering services for events and private parties are also available upon request.

A strategy for attracting and retaining customers, including branding, pricing, advertising, promotions, and sales tactics. It should also cover the food truck’s online presence, social media strategy, and participation in events or partnerships.

Here’s an example of a marketing and sales strategy that aims to build a strong brand presence, foster customer loyalty, and establish “Urban Dog” as a premier choice for hot dog enthusiasts. Through a combination of competitive pricing, strategic promotions, active online engagement, and participation in local events, “Urban Dog” will strive to attract and retain a diverse customer base.

The Urban Dog is ready to roll.

• Name and Logo : “Urban Dog” – a modern and memorable name with a logo that reflects the urban, quick-service nature of our hot dog cart. The branding will be consistently displayed across the cart, packaging, and digital platforms.
• Brand Message : “Quick, Delicious, and Uniquely Yours” – emphasizing speed, taste, and customization options to cater to individual preferences.

Pricing Strategy

• Competitive Pricing : Prices will be set to remain competitive with other street food options while ensuring profitability. Menu items will range from $3 to $7, allowing for affordability and encouraging add-on purchases.
• Dynamic Pricing for Events : Special pricing packages for local events, offering deals that cater to the event’s theme and expected foot traffic.

Advertising and Promotions

• Local Partnerships : Partner with local businesses and event organizers to promote “Urban Dog” through cross-promotional deals and shared advertising efforts.
• Special Promotions : Regular promotions, including ‘Happy Hour’ discounts, ‘Buy One Get One’ deals on National Hot Dog Day, and loyalty cards for repeat customers.

Sales Tactics

• Event Participation : Regularly participate in local markets, fairs, and festivals to increase visibility and reach a broader audience.
• Catering Services : Offer catering services for private events, office lunches, and parties, creating another revenue stream and marketing channel.

Online Presence and Social Media Strategy

• Website : Launch a simple, user-friendly website showcasing the menu, location schedule, and catering information. Include a blog for updates, promotions, and engaging content related to hot dogs and street food culture.
• Social Media : Actively use platforms like Instagram, Twitter, and Facebook to engage with customers. Share daily locations, menu specials, behind-the-scenes content, and user-generated content to build a community around “Urban Dog.”
• Online Reviews and Feedback : Encourage satisfied customers to leave reviews on platforms like Yelp, Google, and food-specific forums. Respond to feedback to show customer appreciation and address any concerns.

Participation in Events and Partnerships

• Local Food Truck Rallies : Attend food truck rallies and competitions to increase brand visibility and engage with the food truck community.
• Collaborations : Collaborate with local breweries, coffee shops, and other food trucks for special events, creating unique dining experiences and cross-promotion opportunities.

Now comes the part of food truck business plans that scares most inexperienced entrepreneurs. So how much is this mobile food business ultimately going to cost? This is where you want to list the projected growth of your new food truck empire. Include a profit and loss statement that projects how much are you going to spend versus how much you are going to make. Other items you should include in the financial section of a business plan include:

• Break even analysis
• Cashflow statement
• Balance Sheet
• Food Truck Industry Data

If seeking financing, include the amount of funding needed to cover the cost to start a food truck , how the money will be used, and the loan terms in this section. It should also include future financial planning, such as paying off debt or funding expansion into multiple food trucks or a restaurant if that’s part of the plan.

Possible Risk. Show investors that you understand that all food trucks don’t succeed by explaining how you plan to pay them if you fall into that category.

Supplementary materials such as resumes of the food truck owner and management team, detailed menu descriptions, market research data, legal documents like vehicle title, proof of insurance, vending permits, and any other relevant information. Another thing I’ve seen food truck owners do is include pictures of their dishes in this section.

One additional word of advice; once you have written your food truck business plan but before you pass it on to a lender, do as our earlier example did, have it reviewed and read by a friend or relative. After they have read it, have them give you a verbal explanation as to how they think your new business will work, based on your plan. If they don’t understand or can’t explain the concept from what you have provided, there’s a very good chance that a financier will not understand the business concepts either.

If they have questions, incorporate the answers into the plan. You should also clarify an answer so that the question is automatically resolved when the financier reads it. In most cases, this is a business that you know about. This becomes another stumbling block people will run into. They write their business plan so that it is self-explanatory, but leave it at that. The business plan you write for your future food truck must make sense to those who are reading it. Remember that most of them, know nothing about our industry.

Food truck outside a craft brewery.

Don’t buy a food truck business plan sample

When purchasing a food truck business plan sample , people often force their concept into the boilerplate template rather and creating a plan that highlights it. A friend of MCM had recently made this type of purchase, filled in the blanks and gave it to us to review. Our first question was how he had determined that within his first five years he would have 15% growth annually. His sheepish answer, “it was in the food truck business plan sample .”

There are certain points that financiers will look at when reviewing your loan application. This will include a food truck business plan. Too many of the available templates just don’t cover the specifics of our industry and using one could create the appearance of a unprofessionalism. And let’s be real here. Do you really want to build a game plan for your business based on a template?

Many food truck owners create a business plan only to let it gather dust after they open for business. If you are doing this you are missing out on a useful management tool. For that reason alone, it’s best to update your food truck business plan regularly. I suggest reviewing and updating this document at least once a year.

The trouble that I hear, from vendors consistently, is that they are busy. It’s not always easy to find the time to update their food truck business plans. Don’t let this be a problem for you. The key to remember; you don’t need a big, formal business plan. Instead, use bullets, lists and tables that you can review and update fast.

An annual review (minimum) of your food truck’s financials makes it possible to look at the difference between what you planned for and what’s actually happening. Your food truck business plan provides specific insight for making changes when the unexpected happens.

Your business plan is not just a map, it’s also the GPS that shows you where you are on the map. It’s the real-time information about what has changed. It’s like having the map, weather and traffic.

Update your food truck business plan more in-depth annually. This should be a time when you review your local market and the competition, and then evaluate what’s changing. Your food truck  business plan should include key strategies, tactics, milestones and essential numbers (projected sales, spending and cash flow). Adding a lot of text isn’t necessary unless you plan to get additional funding. Instead, think of your business plan as an internal management tool for your use.

As an added bonus, you can use your food truck business plan for team collaboration. During monthly meetings, you can ask your trusted employees to share goals and milestones and respond to any changes. This will help you build a way to develop accountability among your staff.

It’s easy to get lost in the daily details of running a mobile food business. Food truck owners need to always look towards their next phase of growth. If you continually update your food truck business plan, it can help you do that.

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About the author: richard myrick.

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Food Truck Business Plan Template

Written by Dave Lavinsky

Food Truck Business Plan

You’ve come to the right place to create your food truck business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their food trucks.

Food Truck Business Plan Example & Template

Below is a template to help you create each section of your food truck business plan.

Executive Summary

Business overview.

Zesty Zane’s Food Truck is a new food truck located in Portland owned by local critically acclaimed chef, Zane Benedict. The menu will consist of popular food options that consist of burgers, sandwiches, gyros, and tacos uniquely made with the creativity and uniqueness that Chef Zane can offer. Chef Zane’s eclectic style and consistency make him a favorite among Portland foodies and his food truck will garner a loyal following amongst young professionals and college students.

Zesty Zane’s Food Truck will be located in the immensely popular food truck pod known as Cartopia. Chef Zane will receive lots of exposure by being a part of this community as there are plenty of neighboring food trucks, bars, nightlife, and entertainment options nearby. With the popular location of Cartopia and an impressive Instagram social media following, Zesty Zane’s Food Truck is destined to become a local go-to dining destination for anyone craving delicious, interesting fare at an affordable price.

Products Served

The following are the products to be offered by Zesty Zane’s Food Truck:

• Sandwiches & paninis
• Assorted non-alcoholic beverages

Customer Focus

Zesty Zane’s Food Truck will target customers in Portland who live, work, or socialize near Cartopia. This area is frequented by numerous young professionals, college students, and the late-night crowd who regularly eat at food trucks. Anyone seeking trendy dining options are the target customers of Zesty Zane’s Food Truck.

Management Team

Chef Zane has worked in the culinary industry for over ten years and is accustomed to the long, demanding hours of operating a kitchen. He attended culinary school in San Francisco and returned home to Portland to be a part of the world-renowned food scene that Portland has built for itself. After working under three award-winning chefs, Chef Zane is ready to venture out on his own and start his own business as a food truck.

Chef Zane Benedict will be the food truck owner and operator of his food truck. He will operate the food truck Tuesday through Sunday from 11:00 am until 1:00 am. Chef Zane will also employ two part-time cooks to assist him during peak hours of operation.

Success Factors

The following success factors will set Zesty Zane’s Food Truck apart from the competition:

• Exceptional cuisine made fresh with locally sourced ingredients.
• An eclectic menu that is unlike any other in the Portland food scene.
• Convenient location: Zesty Zane’s Food Truck will be located in a highly-trafficked food truck pod that is frequented by college students, young professionals, and night-life regulars.
• Delicious food at a good price. Zesty Zane’s food items will be cheaper than other food truck dishes without sacrificing quality.

Financial Highlights

Zesty Zane’s Food Truck is seeking $40,000 in debt financing to open its food truck. The funding will be dedicated for the purchase of the food truck, cooking supplies and equipment, working capital, three months worth of payroll expenses and opening inventory. The breakout of the funding is below:

• Purchase of food truck – $20,000
• Food truck kitchen supplies and equipment – $10,000
• Opening inventory – $2,000
• Working capital (to include 3 months of overhead expenses) – $3,000
• Marketing (website design and management) – $5,000

The following graph outlines the pro forma financial projections for Zesty Zane’s Food Truck:

Company Overview

Who is zesty zane’s food truck.

Zesty Zane’s Food Truck is a startup food truck business located in Portland, Oregon. The menu offerings are eclectic, made-to-order, bistro-type dishes served fresh and fast in the entertainment district of Portland. The ingredients are locally-sourced from independent food growers and artisans in and around the Portland region. The dishes are incorporated with an ingenious twist to commonly known popular food menu items. The menu options are simple dishes commonly seen at food trucks, but Chef Zane adds his own spin to the typical fare – sandwiches, gyros, burgers, and tacos all made his way unlike any other food establishment.

Zesty Zane’s Food Truck is owned and operated by Zane Benedict, a local Chef classically trained in culinary school and under the most prestigious chefs in Portland. Chef Zane is known for his creativity, consistency, and quickness in the kitchen and his dishes receive multiple positive reviews in the restaurants Zane has been employed. Chef Zane specializes in fine French, Italian, and Mediterranean cuisine with a creative twist not typically found in other restaurant establishments.

Zesty Zane’s Food Truck History

After graduating from culinary school in 2008, Chef Zane Benedict worked as a sous chef in three different restaurants in Portland. All of the chefs Zane worked under were award-winning, locally-acclaimed chefs that frequently trained their apprentices to prepare dishes up to their expectation and standards.

Chef Zane learned a great deal from these chefs and garnered a reputation himself for his creativity and consistency. Now that Zane feels he has learned as much as he can from the senior chefs, he would like to venture out on his own and start his own business. Due to the large amount of capital required to open a full-scale restaurant, Chef Zane decided a food truck business was the most cost-effective option for his operation.

Since incorporation, Zesty Zane’s Food Truck has achieved the following milestones:

• Developed the food truck’s branding image, social media, and website.
• Has a soft hold on a used food truck that recently went out of business.
• Developed and finalized the menu of the dishes Chef Zane will serve.
• Obtained a food permit license to be able to prepare and sell food and drinks in Portland County.
• Obtained a sales and use tax permit for use in Portland County.

Zesty Zane’s Food Truck Products

The following are the types of menu items Zesty Zane’s Food Truck will produce:

Food Truck Industry Analysis

Food truck vendors will continue to perform well over the next five years, benefiting from consumers with deeper pockets who are able to spend on pricier gourmet food options. Revenues are expected to increase to $1.4 billion during this time period.

Food Truck industry operators are expected to continue to experience growth, as generally positive economic conditions and momentum from the gourmet food movement propel growth.

Consumers nowadays demand higher-quality food, a wider variety of styles and tastes, better presentation and, most importantly, more healthy menu options. Therefore, operators that include healthy options on their menus will be best situated for success over the next five years. 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.

The food truck industry will also benefit from an increase in the urban population, which is expected to comprise the majority of the US population in five years. The food truck 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 above-average incomes and limited spare time.

Customer Analysis

Demographic profile of target market.

Zesty Zane’s Food Truck will target the population of Portland that frequently dines in the entertainment district. There is a large food truck area of Portland known as Cartopia, where Chef Zane will set up his business. This area is home to numerous dining establishments, nightlife, bars, clubs, and food trucks. The target market of this area are usually young professionals and college students who have disposable income.

The precise demographics for Portland, Oregon are:

Customer Segmentation

Zesty Zane’s Food Truck will primarily target the following customer profile:

• Local residents of Portland who partake in late-night activities such as socializing with friends or bar-hopping
• Business professionals that work and reside in the Portland Cartopia area – law offices, hospitals, clinics, insurance agencies, retail, and schools
• College students who are in search of fast, cheap, and trendy eats

Competitive Analysis

Direct and indirect competitors.

Zesty Zane’s Food Truck will be competing with other food trucks in the Portland community. A profile of each competitor is below.

Potato Champion

Potato Champion is a local favorite of Portland foodies that is also located in Cartopia. Started in 2008, Potato Champion quickly established itself as a fan favorite for late night food. Potato Champion serves a limited menu of hand cut, twice fried Belgian style fries, a variety of dipping sauces, and their own version of the Canadian classic Poutine, as well as other fry related dishes. They pride themselves in using the highest quality ingredients and focus on an inventive menu that combines tastes from all over the world with one of the most popular foods found on the globe, the french fry.

Potato Champion is open for lunch, dinner, and late-night. They are available for catering and delivery through Postmates. Followers of Potato Champion are also able to purchase swag from their store that includes music, bags, pins, and hoodies.

Started by John Eads in 2009, Pyro Pizza was built out of a 8’x16’ food cart that he custom-built with a cast iron wood fire oven. Aside from wood fired pizza, John also makes his own sodas using all real ingredients and natural cane sugar. John’s belief is that good ingredients make good food. His crew makes many components in-house and sources regional flour, pepperoni, sausage, blue cheese, soda ingredients, and seasonal produce all from Portland businesses and farms. In 2015, Pyro’s expanded to a new sandwich cart, Pyro’s Wicked Wiches – a scratch-made sandwich, soup, chips and cookie food cart.

Pyro’s serves an assortment of wood fire pizzas made from scratch. Their choices are margherita, marinara, arugula and mushroom, pepperoni, quattro formaggi, fennel sausage, veggie bianca, breadsticks, salads, and sodas.

Chicken and Guns

Chicken and Guns is another local favorite among Portland foodies. Also found in Cartopia, Chicken and Guns serves up Latin American chicken, wings, tacos, salad, soup, and their “guns” are crispy seasoned potatoes. The chicken is served by the quarter, half, or whole bird. Another item they are acclaimed for is their peruvian aji sauce, habanero carrot sauce and chimichurri sauce. They have been named the best fried chicken in Portland by the PDX Eater.

Chicken and Guns is open everyday from 11:00 am to 10:00 pm for takeout and delivery options. With a large Instagram and social media following, there is always destined to be a line at the Chicken and Guns food truck.

Competitive Advantage

Zesty Zane’s Food Truck offers several advantages over its competition. Those advantages are:

Food Truck Marketing Plan

Zesty Zane’s Food Truck will offer a unique value proposition to its clientele:

• Delicious food made fresh with locally sourced ingredients using exquisite techniques.
• Located in the ultra-hip food truck area known as Cartopia.
• Great food at a great price. The menu offerings of Zesty Zane’s Food Truck will be accessible to customers of all walks of life.

Promotions Strategy

The promotions strategy for Zesty Zane’s Food Truck are as follows:

Social Media

Zesty Zane’s Food Truck’s main source of marketing will be through social media, primarily their Instagram page. Chef Zane has become adept at taking appealing photographs of his dishes. He will post pictures of his menu and add details on the location and hours of operation. His food truck account already has over 3,000 followers and he posts daily “Coming Soon” teaser photos.

Zesty Zane’s Food Truck will be parked in the immensely popular food truck hub known as Cartopia of Portland. There are dozens of food trucks located in this pod and there is always a crowd of people. Cartopia hosts bands, art shows, shopping events, and other social gatherings to enhance the entertainment vibe of the pod. By being part of Cartopia, Zesty Zane’s Food Truck will receive lots of exposure and traffic.

SEO Website Marketing

Zesty Zane’s Food Truck plans to invest funds into maintaining a strong SEO presence on search engines like Google and Bing. When a person types in “local food truck” or “top food trucks in Portland”, Zesty Zane’s Food Truck will appear in the top three choices. Zesty Zane’s will also invest in their website also to ensure that it is user friendly, always up to date, and displays professional photographs of its menu items and location.

Third Party Delivery Sites

Zesty Zane’s Food Truck will maintain a presence on sites like GrubHub, Uber Eats, Doordash, and Postmates so that people looking for local food with the option of delivery will see Zesty Zane’s listed.

The pricing of Zesty Zane’s Food Truck will be moderate and on par with other food trucks so customers feel they receive value when purchasing their menu items.

Operations Plan

The operations plan for Zesty Zane’s Food Truck is relatively simple as its overhead and cost is small. The functional roles for its employees are as follows:

Operation Functions:

• Chef Zane will run the food truck operation. He will be in charge of inventory, menu creation, food truck marketing, customer service, and bookkeeping. Chef Zane will work every day that he chooses to open the food truck. Chef Zane plans on operating the food truck Tuesday through Sunday 11:00 am to 1:00 am.
• Two part-time cooks that will alternate helping Chef Zane during the hours of operation. As business picks up, there will be two cooks at the same time assisting Chef Zane during peak hours.

Milestones:

Zesty Zane’s Food Truck aims to open in the next 3 months. The following are the milestones needed in order to obtain this goal.

4/15/202X – Purchase food truck

5/1/202X – Finalize menu

5/15/202X – Social media and advertising campaign begins

6/1/202X – Finish cleaning up the food truck and prepare it for operation

6/10/202X – Purchase food and drink inventory, stock truck, and park it at Cartopia

6/11/202X – Grand Opening of Zesty Zane’s Food Truck

Zesty Zane’s Food Truck will be owned and operated by Chef Zane Benedict.

Chef Zane Benedict, Food Truck Owner

Chef Zane Benedict is a Portland native who attended culinary school in San Francisco and returned to Portland to become a part of the world-renowned food scene Portland is uniquely known for. Zane was trained under three different chefs at fine dining establishments in downtown Portland and was awarded Best Sous Chef of Portland in 2017. Chef Zane has won two local culinary competitions, placed runner-up in a statewide competition, and participated in a cooking competition show on the Food Network.

Chef Zane has received numerous awards for his creativity and consistency of his food while being able to prepare dishes in a short amount of time. His ability to prepare food under pressure allows him the unique skill of serving numerous customers without having them undergo long wait times. This will keep customers happy and coming back for more.

Financial Plan

Key revenue & costs.

The revenue drivers for Zesty Zane’s Food Truck will come from the menu items being offered daily.

The cost drivers will be the ingredients and products needed to make the menu items (oil, bread, meat, chicken, produce, drinks) as well as the cooking materials (pots, pans, bowls, plates, utensils, etc.). Other cost drivers will be the overhead expenses of payroll for the part-time employees and propane for the food truck.

Funding Requirements and Use of Funds

• Food Truck Marketing (website design and management) – $5,000

Key Assumptions

The following table outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the business loan.

Initial Number of Customers Per Day: 50

Average Menu Item Cost: $9.00

Average Order per Customer: $15.00

Annual Cost for Maintenance of Truck: $10,000

Financial Projections

Income statement, balance sheet, cash flow statement, food truck business plan faqs, what is a food truck business plan.

A food truck business plan is a plan to start and/or grow your food truck business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your food truck business plan using our Food Truck Business Plan Template here .

What Are the Main Types of Food Truck Companies?

There are a variety of types of food trucks, each specializing in a specific type of cuisine or food item. There are food trucks that sell burgers, cookies, ice cream, tacos, pizza, sandwiches, salads and more.  

What Are the Main Sources of Revenues and Expenses for a Food Truck Business?

The primary source of revenue for food truck businesses is its food and beverage sales. 

The key expenses for a food truck business are food costs, salaries, and transportation expenses. 

How Do You Get Funding for Your Food Truck Business?

Food truck businesses are typically funded through small business loans, personal savings, crowdfunding and credit card financing.  A well-crafted food truck business plan is essential to securing funding.

What are the Steps To Start a Food Truck Business?

Starting a food truck business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Food Truck Business Plan - The first step in starting a business is to create a detailed business plan for your food truck that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your food truck business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your food truck business is in compliance with local laws.

3. Register Your Food Truck Business - Once you have chosen a legal structure, the next step is to register your food truck business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your food truck business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Food Truck Equipment & Supplies - In order to start your food truck business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your food truck business. Food truck marketing includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful food truck business:

• How to Start a Food Truck Business

Where Can I Get a Food Truck Business Plan PDF?

You can download our free food truck business plan template PDF here . This is a sample food truck business plan template you can use in PDF format.

Other Business Plan Templates

Catering Business Plan Template Bakery Business Plan Template Coffee Shop Business Plan Template Event Venue Business Plan Template

Small Business Trends

Food truck business plan: everything to include.

If you buy something through our links, we may earn money from our affiliate partners. Learn more .

Every business needs a plan — including food trucks. If you want to run your own food truck but don’t know where to start, here’s a guide that explains how to write a business plan in this industry.

What to Include in Your Food Truck Business Plan

A plan for a mobile food business includes many of the same elements as other business plans. But there are also some unique elements. Here’s a food truck business plan template to guide your own journey.

A plan for a mobile food business includes many of the same elements as other business plans, but there are also some unique elements that are specific to the food truck industry. To start, the cover page is crucial, as it provides potential investors, team members, and readers with a glimpse of what to expect from your food truck business plan. A professionally designed cover page can make a positive first impression and enhance the credibility of your venture.

Table of Contents

A table of contents is another essential component of your food truck business plan. It serves as a roadmap for readers, allowing them to quickly locate specific information they might be interested in. Since food truck business plans can be quite extensive, a well-organized table of contents is invaluable for easy navigation.

Executive Summary

The executive summary is a concise and compelling overview of your food truck business. It should not only provide a clear explanation of what your business does but also highlight its unique selling points and competitive advantages. Briefly mentioning key elements such as market analysis and operational challenges can give readers a glimpse into the comprehensive nature of your business plan.

Company Overview

Your food truck’s company overview should succinctly describe its purpose and the goals you hope to achieve. This section sets the stage for the entire plan and should reflect your passion and dedication to your food truck venture. Consider including a brief history of your food truck concept and how you came up with the idea to add a personal touch to this section.

Food Truck Mission Statement

Your mission statement should explain your reason for existence.  A well-crafted mission statement is a powerful tool that conveys the purpose and values of your food truck business. Your mission statement should go beyond merely stating what you do; it should also reflect your passion for serving your community and bringing joy to people through your food. For instance, your mission might focus on providing high-quality and innovative dishes that cater to diverse tastes while promoting sustainability and supporting local farmers.

Target Markets and Market Analysis

Identifying your target market is essential for the success of your food truck business. By narrowing down your audience based on location and demographics, you can tailor your offerings and marketing efforts more effectively. Conduct a comprehensive market analysis to understand the preferences and needs of your potential customers better. For example, if your food truck is primarily focused on offering gourmet desserts, target areas with a high concentration of dessert lovers or near popular event venues.

Food Truck Industry Summary

In the food truck industry, finding your niche is crucial for standing out from the competition. Research the existing food truck market in your area to identify gaps and opportunities. Determine how your food truck concept fits into the overall landscape, ensuring there is a demand for your unique offerings. Understanding the broader trends and challenges in the food truck industry can also help you make informed decisions and adapt your business strategies accordingly.

Read More: how to start a food truck business

Analysis of Local or Similar Niche Food Trucks

Studying your competition is an essential aspect of shaping your food truck’s unique identity. Analyze other food truck businesses in your area, especially those that offer similar cuisine or target similar demographics. By understanding their strengths and weaknesses, you can identify areas where you can differentiate yourself and create a competitive advantage. This analysis can also inspire you to innovate and bring a fresh perspective to your offerings, making your food truck stand out from the rest.

Food Offered

Create a basic menu. Consider your niche, demand from your target audience, and costs of ingredients and cooking equipment. The food you serve is the heart of your food truck business, so creating a well-thought-out menu is crucial. Consider your niche and target audience while designing your offerings. Conduct market research to identify popular dishes and food trends that align with your concept. Additionally, analyze the cost of ingredients and cooking equipment to determine the pricing and profitability of each item on your menu.

Planned Food Truck Locations

Planning your locations in advance can help you stay up-to-date with inventory and streamline marketing. Find local food truck festivals, special events, and areas with lots of foot traffic that are popular with your target market.

Food Truck Marketing and Delivery Plan

Your business plan’s marketing and sales portion should detail how you’ll communicate with potential customers to sell food. Your marketing plan may include listing on food truck finders, local advertising, and social media or search marketing.

Financial Plan and Funding

This section should include realistic financial projections based on how much food you can sell at various locations. Factor in startup, equipment, and food costs as well.

Legal Structure

Food truck businesses can have various legal structures. For example, a solo venture may be a sole proprietorship. However, most food businesses are LLCs or corporations to limit personal liability. Work with a business lawyer and/or tax professional to find the best structure for your needs.

Organization and Management

Outline your team and hierarchy to determine how everyone will be managed. For example, you may be the primary decision-maker. Or you may specify a few shift managers to answer questions when you’re unavailable.

Customer Experience Strategy

Detail your approach to customer service and the overall experience you aim to provide. This might include unique service methods, customer interaction policies, or how you plan to create a memorable experience for your customers.

Sustainability Practices

In this section, outline any sustainable practices your business will adopt. This could include using locally sourced ingredients, eco-friendly packaging, or waste reduction strategies.

Social Media and Online Presence

Elaborate on your strategy for building and maintaining a strong online presence. This could include plans for engaging with customers on social media, content marketing strategies, and leveraging online reviews and feedback.

Expansion and Scalability

Discuss your long-term vision for growth. This could involve adding more trucks, expanding to new locations, diversifying the menu, or even branching into catering services.

Partnerships and Collaborations

Outline potential collaborations with local businesses, event organizers, or other food trucks. These partnerships can increase visibility and provide mutual benefits.

A business planning appendix may include any supporting documents for the various parts of your plan. For example, financial statements or market research reports may complement your projections or competitive advantage.

Tips for Food Truck Owners to Write an Amazing Business Plan

Food truck businesses can follow these tips to create a concise yet effective business plan:

• Get acquainted with your local food truck scene: Many elements of a food truck business plan rely on your local market and competitors. So spend time patronizing other businesses and attending events where food trucks may park.
• Create a clear vision: Determine the type of food truck business you want to start and how you want it to stand out and operate to ensure all the sections match your vision.
• Read other food industry business plans: If you’re not sure where to start, looking at examples from other food businesses may help.
• Back up your claims: Don’t just guess about things like finances and legal structure. Get expert help and/or documentation if needed.
• Remember your why: Keep in mind why you’re writing a business plan. This can help you speak in verbiage that will serve you in the future.

What is a Food Truck Business Plan?

Business plans outline what a company does and how it makes money. It includes everything from a summary of your business to your marketing plan. When creating a food truck or restaurant business plan , you may use it to pitch investors or refer to it when making future business decisions.

Why You Should Write a Food Truck Business Plan

A food truck business combines culinary creativity with entrepreneurial spirit. However, diving into this business without a solid plan can lead to a host of challenges. Like any business, the road to success is often filled with unexpected twists and turns. This uncertainty is where the importance of a food truck business plan comes into play.

A Guiding Light

A business plan is more than just a document filled with numbers and marketing jargon. It serves as a guiding light, illuminating the path that you intend to follow. With it, you know where you are headed, why you are going there, and how you intend to reach your destination. Without it, you might find yourself lost in the complex world of entrepreneurship.

Understanding Your Business Inside and Out

The process of writing a business plan forces you to delve into every aspect of your food truck business. From understanding your target audience to financial forecasting, you get a 360-degree view of what it takes to run your venture. This insight ensures that no stone is left unturned, preparing you to face challenges with confidence.

Demonstrating Commitment and Professionalism

Investors, bankers, partners, or even key employees may want evidence of your business’s viability and your commitment to the project. A well-crafted business plan is that evidence. It shows that you are serious about your food truck business and that you have considered the necessary elements to make it a success.

Risk Mitigation

Every business encounters risks, and having a plan enables you to identify and mitigate them. A business plan provides you with a structure to analyze potential pitfalls and develop strategies to avoid or overcome them. This foresight can save you time, money, and frustration in the long run.

Financial Health Check

Money is the lifeblood of any business, and a business plan helps you manage it effectively. Understanding your financial needs, projections, and how cash will flow through your business ensures that you keep your financial health in check. It enables you to make informed financial decisions that align with your business goals.

Continuous Evaluation and Adaptation

The business environment is always changing, and what works today may not work tomorrow. A business plan gives you a baseline that allows you to evaluate your performance continually. It enables you to make necessary adjustments, ensuring that your business stays relevant and competitive.

An Exit Strategy

Every entrepreneur needs to think about the future, including what will happen to the business down the line. Your business plan will allow you to consider and plan for various exit strategies, whether that involves selling the business, passing it on, or winding it down. Thinking about this in advance ensures that you are prepared for all eventualities.

A food truck business plan is not an option; it’s a necessity. It’s the backbone of your business that provides direction, insight, risk management, and continuous alignment with the ever-changing business environment. Writing a business plan reflects a deep understanding and commitment to your business idea. It’s an essential tool that can set your food truck venture on the path to success, helping you navigate the thrilling yet challenging journey of entrepreneurship.

The Pros and Cons of Writing a Business Plan for a Food Truck Business

This table provides an at-a-glance view of the benefits and potential drawbacks of creating a food truck business plan, which can be helpful for aspiring entrepreneurs in the food truck industry.

Ultimately, the decision of whether or not to create a food truck business plan is a personal one. However, there are many potential benefits to having a well-written and comprehensive business plan.

What are the first steps to start a food truck business?

The first steps include conducting market research, defining your target audience, planning your menu, finding a suitable food truck, securing necessary licenses and permits, and creating a comprehensive business plan.

How much does it cost to start a food truck business?

Costs can vary widely based on the location, equipment, and the type of cuisine, but you can expect to invest anywhere from $50,000 to $200,000, including the cost of the truck, equipment, licenses, insurance, and initial inventory.

What are the legal requirements for operating a food truck?

Legal requirements vary by location but may include business licenses, health permits, food handler permits, vehicle licenses, fire certificates, and local zoning compliance.

How can I finance my food truck business?

You can finance your food truck business through personal savings, bank loans, investor funding, crowdfunding, or small business grants.

How do I create a menu for my food truck?

Your menu should reflect your brand and target audience. Consider researching popular food trends, using quality ingredients, and offering unique dishes that set you apart. Price your items accordingly to cover costs and generate profit.

How do I choose the right location for my food truck?

The location should be determined by the target audience, local regulations, competition, foot traffic, and accessibility. It’s essential to find a legal spot with good visibility and foot traffic.

How can I market my food truck business?

Marketing strategies might include social media advertising, local event participation, partnerships with local businesses, loyalty programs, and traditional advertising methods.

Read More: food truck ideas

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Sample Business Plan For a Food Truck Business

Writing a business plan is an essential part of starting a successful food truck business. It acts as the guiding document that outlines the goals and objectives, informs decisions, and helps to secure the financing needed to launch the venture, whether it be from lenders or investors. For new food truck business owners, having access to a sample business plan can provide invaluable direction and insights on how to create their own food truck business plan .

Download our Ultimate Food Truck Business Plan Template

Having a comprehensive business plan in place is vital for any successful food truck venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can also give you clarity on realistic financial projections and help secure financing from lenders or investors. An example of a food truck business plan is a great resource to draw upon when creating your own business plan to ensure that all the key elements are included in your document.

Below is an example food truck business plan to help you see what one should look like. It can provide a good starting point for writing a business plan for your food truck. However, it is not nearly as comprehensive and successful in raising capital for your food truck as Growthink’s Ultimate Food Truck Business Plan Template . But it can help you write a food truck business plan for your business.

Food Truck Business Plan Example – Barbecue Brothers On Wheels

Table of contents, executive summary.

• Company Overview

Industry Analysis

Customer analysis.

• Competitive Analysis

Marketing Plan

Operations plan, management team, financial plan.

  Download the Food Truck Business Plan Sample PDF here.

Barbecue Brothers On Wheels is a family-owned and operated BBQ food truck business founded by brothers John and David. After successfully operating their flagship mobile kitchen for the last five years, they are now looking to expand their operations and open up a second location. To do this, the Barbecue Brothers have crafted a comprehensive business plan that outlines their goals and objectives, as well as the steps they will take to achieve them.

The Barbecue Brothers plan to open their second food truck in the heart of downtown Los Angeles. With over one million people living within a five-mile radius, the brothers intend to capitalize on this large population by providing delicious and affordable BBQ cuisine that is prepared on-site with high-quality ingredients. To stand out from their competition, the Barbecue Brothers will offer unique menu items such as pulled pork sandwiches, beef brisket tacos, and smoked turkey wraps.

To fund this expansion effort, the Barbecue Brothers are seeking $250,000 in startup capital from Angel investors. This money will be used for purchasing a new truck and equipment as well as setting up the necessary kitchen space. With a successful track record of satisfied customers, the Barbecue Brothers believe they have what it takes to succeed in this highly competitive industry and are eager to get started on their next venture.

By following this business plan, the Barbecue Brothers will be able to reach their goal of becoming one of the top BBQ food truck businesses in Los Angeles. With your support, we can make our dream a reality and bring delicious BBQ cuisine to even more people.

Company Description

Barbecue Brothers On Wheels is a family-owned and operated BBQ food truck business that has been serving customers in Los Angeles for the past five years. Founded by brothers John and David, the business has quickly become one of the most popular mobile BBQ kitchens in town. With an emphasis on using only high-quality ingredients, they specialize in mouthwatering pulled pork sandwiches, beef brisket tacos, smoked turkey wraps, and other savory favorites.

The Barbecue Brothers have forged successful partnerships with many local businesses as well as organizations such as schools and corporate events which helps to expand their reach beyond just downtown Los Angeles. Their flagship food truck has been consistently recognized for its excellent customer service rating across all online sites helping them build a loyal following throughout their community.

John and David recognize the importance of giving back to those who are less fortunate than them so all profits generated from catering jobs are donated to local charities such as soup kitchens around Los Angeles county. Through these efforts combined with delicious recipes unique to this business, Barbecue Brothers On Wheels has achieved great success in developing its brand identity over the last five years but now they look towards further expansion into more locations within the Los Angeles area.

The food industry in the Los Angeles area is growing rapidly and becoming increasingly competitive. Food trucks offer an exciting alternative to traditional restaurant dining, allowing customers to enjoy high-quality, fresh, and affordable meals without having to commit to a single location. Over the past decade, food trucks have become increasingly popular in major cities across the US, with cities such as Los Angeles boasting over 2,000 licensed food trucks.

The main competition for Barbecue Brothers On Wheels is other food trucks in the area offering similar menu items. This competition forces businesses to stay ahead of their competitors by constantly innovating and reinventing their recipes and menu offerings. In addition, they must create a strong customer loyalty program that will encourage repeat customers and remain competitive on pricing due to a large number of options available to consumers.

Finally, Barbecue Brothers On Wheels must be prepared to scale quickly in order to keep up with the growing demand for mobile dining options in LA county. With careful planning and strategic investments, Barbecue Brothers On Wheels can succeed in this highly competitive market by setting itself apart from the competition.

The customer analysis for Barbecue Brothers On Wheels should focus on two main target markets: mobile diners, and BBQ aficionados.

Mobile Diners : Mobile diners are those individuals who prefer to dine outside of a traditional restaurant setting, either at food trucks or other outdoor locations like events or festivals. These customers tend to be younger, single professionals or families with young children who are looking for convenience, affordability, and delicious meals. They also care about being able to support local businesses and the community.

Psychographics of this target demographic includes people on the go; tech-savvy consumers who are comfortable using online platforms for research and ordering; adventurous eaters who enjoy trying new foods; and those looking for a unique dining experience.

To reach these individuals, Barbecue Brothers On Wheels should invest in an effective digital marketing strategy that includes social media channels as well as online advertising.

BBQ Aficionados : The second target demographic for Barbecue Brothers On Wheels is barbecue aficionados – customers who have an affinity for barbecue cuisine and a preference for authentic flavors. These customers often look beyond just the taste of the food but also seek out restaurants that can offer something special in terms of atmosphere, customer service, quality ingredients, and presentation.

Psychographic characteristics of this group include adventurous foodies seeking out the best barbecue in town; those with a strong appreciation for craftsmanship in their meals; fans of small businesses looking to support local entrepreneurs; and those with a passion for cooking will appreciate the emphasis on high-quality ingredients used by Barbecue Brothers On Wheels.

To reach this audience effectively, Barbecue Brothers should consider investing in traditional print marketing materials such as flyers or brochures that can be distributed at popular BBQ joints around Los Angeles County. Additionally, they could participate in local festivals that draw large numbers of barbecue enthusiasts from all over California making sure to bring enough samples so everyone can get a taste of their signature dishes.

Competitor Analysis

For a BBQ food truck business like Barbecue Brothers On Wheels, competitor analysis is essential for success. In the highly competitive Los Angeles food truck industry, it is important to identify the main competitors and understand their strengths and weaknesses. Doing so will allow Barbecue Brothers to set themselves apart from the competition by offering something unique that will draw in customers.

The main competitors of Barbecue Brothers On Wheels are other BBQ-focused food trucks in Los Angeles County. These include notable names such as The Rib Whip, Pig Out Delights, Smoke N’ Grillers, and Hog Heaven BBQ.

The Rib Whip is known for its specialty sandwiches featuring slow-cooked meats paired with signature sauces and fresh vegetables on a hoagie roll. They cater to both lunchtime and evening crowds alike, serving up large portions at a reasonable price. Strengths of The Rib Whip include quality ingredients, generous portion sizes, affordability, convenience, and excellent customer service. However, one area where they could improve is the level of creativity in their menu offerings which may not be appealing to more adventurous or experimental eaters looking for something new every time they visit The Rib Whip.

Pig Out Delights serves classic BBQ favorites such as ribs, pulled pork sandwiches, macaroni and cheese topped with bacon bits, and sweet potato fries. Their signature dishes are made using locally sourced ingredients whenever possible and come in generous portions that can easily be shared among two or three people. Strengths of Pig Out Delights includes freshly prepared meals made with high-quality ingredients at very fair prices as well as attentive customer service that many customers have come to expect from this establishment. Unfortunately due to its location away from popular downtown areas like Hollywood or Downtown LA, some customers are unable to try out this delicious cuisine unless they make a special trip out there- something many LA locals might not be willing to do just for some good BBQ!

Smoke N’ Grillers offer classic American BBQ fare such as brisket sandwiches slathered in house-made barbecue sauce along with sides like cornbread muffins or coleslaw salad. They focus on providing generous portions at an affordable price point while allowing customers to customize their own meals with various toppings and condiments. Strengths of Smoke N’ Grillers include their location in a busy part of town, competitive prices, and their ability to accommodate special dietary requests. On the other hand, Smoke N’ Grillers could improve its menu by offering more creative and unique dishes that can differentiate them from the competition.

Finally, Hog Heaven BBQ is a gourmet BBQ food truck that serves up only the finest cuts of meat prepared with signature rubs and sauces. They focus on delivering high-end dining experiences at an affordable price, setting them apart from other BBQ establishments in the area. Strengths of Hog Heaven include their commitment to using only the freshest ingredients, their quality service, and their delicious dishes that consistently wow customers. However, they could improve by diversifying their menu with more budget-friendly options or dishes that cater to different dietary needs.

By understanding their competition, Barbecue Brothers On Wheels can identify areas of improvement as well as opportunities to stand out and attract more customers. They can focus on providing unique dishes that are only available at their food truck and focus on delivering excellent customer service. Additionally, they can look into utilizing local ingredients whenever possible in order to appeal to customers who are conscious of where their food is coming from. By doing these things, Barbecue Brothers On Wheels can become a leader in LA’s BBQ scene.

Barbecue Brothers On Wheels is the newest BBQ food truck to hit Los Angeles. Our mission is to provide customers with an unforgettable dining experience that combines quality ingredients, generous portions, and unique flavors for a price that can’t be beaten.

Our Product : We offer classic American BBQ fare such as brisket sandwiches slathered in house-made barbecue sauce enhanced by our signature rubs and sauces. All of our dishes are freshly prepared using locally sourced ingredients whenever possible and come in generous portion sizes that can easily be shared among two or three people.

Price : At Barbecue Brothers On Wheels, we understand that value matters just as much as flavor so we strive to keep our prices competitive without sacrificing quality or taste. You won’t find better deals anywhere else!

Promotion : We will promote through digital channels such as Facebook, Instagram and Twitter along with local advertising campaigns like print ads in newspapers and magazines. Additionally, word-of-mouth referrals from satisfied customers are key to helping us spread the word about Barbecue Brothers On Wheels!

Place : Our food truck is conveniently located on busy city streets where commuters have easy access during their lunchtime break or while they’re running errands. We also offer catering services for events such as office parties and family gatherings.

At Barbecue Brothers On Wheels, our goal is to provide customers with an unforgettable and unique dining experience. Our daily operations focus on delivering quality food that is freshly prepared using locally sourced ingredients whenever possible. Every day we will start by preparing the sauces and rubs for our signature dishes as well as preparing the sides. Once all of the ingredients are prepped and ready, we will begin cooking on-site to ensure that every order is served hot and fresh.

Staff Requirements:

For the successful day-to-day operations of Barbecue Brothers On Wheels, we need a team of dedicated individuals.

• Chef – To prepare the signature dishes using fresh ingredients and signature sauces.
• Cashier – To take orders and process payments in a timely manner.
• Food Runner – To deliver orders to customers quickly and accurately.
• Cleaner – To make sure the food truck is clean and presentable for customers.

We need a variety of supplies in order to run our business effectively. This includes ingredients, paper products, cleaning supplies, and small wares. We will focus on sourcing all of our supplies from local vendors to ensure that we are using quality ingredients while supporting the local economy.

Our menu consists of classic American BBQ fare such as brisket sandwiches, pulled pork, and ribs. We also offer sides like slaw, potato salad, and baked beans. In addition to our regular menu, we will offer daily specials that can range from tacos to nachos.

Customer Service:

At Barbecue Brothers On Wheels, we strive to provide our customers with the best possible experience. Our goal is to make sure every customer is satisfied by delivering excellent customer service that is prompt and friendly. Additionally, we will listen to feedback and make changes as necessary to ensure that customers are always happy with their experience.

The safety of our customers and staff is paramount. We will adhere to all regulatory standards and best practices when it comes to food handling and sanitation. Additionally, anyone working in the food truck must wear protective gear such as gloves, masks, and hats.

John and David are the co-founders of the Barbecue Brothers On Wheels. John, who has a background in culinary arts, is the head chef and primary visionary of the business. He oversees operations and ensures that all dishes are made with the finest ingredients. His passion for barbecue stems from his childhood in Texas where he fell in love with the art of making authentic, mouth-watering barbecue.

David is an experienced business professional and handles the administrative side of the operation. He focuses on marketing, financials, and customer relations. His goal is to make Barbecue Brothers On Wheels a household name by providing unbeatable quality and service.

With their founding Members John and David teaming up, Barbecue Brothers On Wheels is set to be the go-to BBQ food truck for city dwellers.

At Barbecue Brothers On Wheels, we understand that the financial aspect of running a business is integral to its success. We have formulated a financial plan that will help us achieve our goals and ensure the longevity of our business.

Startup Costs:

To get our business up and running, we need to cover a variety of startup costs such as purchasing equipment, leasing a truck, and acquiring ingredients.

Operating Costs:

Once we are open for business, our operating costs will include labor and overhead expenses. We plan to keep these costs in check by implementing cost-saving methods and leveraging technology to streamline processes.

Revenue Model:

Our revenue model relies on selling our signature products and daily specials at a fair price. We will also pursue additional revenue streams such as catering and delivery services.

Profitability:

Our goal is to achieve profitability within two years of launching the business. We plan to do this by increasing revenue through catering services and expanding our customer base, as well as reducing expenses by maximizing efficiency and maintaining ongoing cost-saving practices. Additionally, any profits will be reinvested into the business to further expand our services and capabilities.

Commitment to Excellence:

At Barbecue Brothers On Wheels, we are committed to delivering the highest quality product and service possible. We strive to use only the freshest ingredients and prepare our dishes with care. Our staff is highly trained in customer service, food safety, and proper food handling techniques.

We understand that quality is paramount and that is why we will never sacrifice our standards. We want to build a long-lasting business that customers can trust and rely on for delicious, mouth-watering barbecue cuisine.

Sample Menu

• Fried Catfish
• Pulled Pork Sandwich
• Smoked Sausage Platter
• Hand-cut French Fries
• Baked Beans
• Collard Greens
• Corn Bread Muffins
• Cobbler Pie

Financial Projections

Balance sheet.

[insert financial statement]

Income Statement

Cash flow statement, food truck business plan example pdf.

Download our food truck business plan pdf here. This is a free food truck business plan example to help you get started on your own food truck plan.  

How to Finish Your Food Truck Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your food truck business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

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Food Truck Business Plan

With the expanding popularity of street food and drinks, trying global cuisine, and busy schedules, the street vendor culture is increasing. The interesting thing is you are going to join this market in the period when the demand is growing.

With the selection of the food truck, buying equipment, and hiring the right people, have you forgotten to plan your business thoroughly? If yes, then here is our food truck business plan template with examples that will help you plan yours.

From industry trends to various examples; we have covered it all. So, let’s wait no more and proceed.

Key Takeaways

• A business plan offers strategic direction for your food truck business, helping you set and achieve your goals.
• The executive summary is an important part, so keep it briefly engaging.
• Conducting a thorough industry analysis is crucial to understanding the food truck market, including its size, trends, key players, and local demographics.
• With high competition in the food industry, you need a robust marketing plan.
• Keep your financial projections practical and do not have extravagant expectations.

Food Truck Industry Highlights

Before diving right into the business plan guide, let’s go through some food industry trends and statistics:

• The industry size of street vendors in the USA was around $2.29 billion in 2021.
• In the US, there were 67,271 food trucks in 2022, growing at an average annual rate of 18.1% per year over the five years 2017-2022.
• The popularity of plant-based diets as in vegan options is growing.
• From Thai food to spicy Mexican food, food trucks are serving everything and anything showcasing the popularity of street food.
• Food trucks are not limited to evenings, they are exploring new markets like corporate campuses, universities, and residential areas for breakfast and lunch time too.

How to Write a Food Truck Business Plan (Description + Examples)

1. executive summary.

An executive summary is the summary of the whole business plan. It is the first section of the business plan and probably the only section your readers will go through.

It is normally the part that business owners prefer to write at the end because, till then they will have a keen understanding of the whole business plan.

Start your summary with a brief introduction to your business (about who you are and what services you will provide). After that, mention the other things like:

• Products and services
• Business goals
• Food truck objectives
• Mission statement
• Market Opportunity
• Target market
• Food truck business concept
• Financial summary
• Financial projections

Here is an example of a mission statement:

Tip: the executive summary is a quick overview, so keep it simple and engaging.

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2. Company Overview

Provide detailed information about your food truck business in this section. It includes the food truck concept, name, location, legal structure of your business, and everything else about your business.

Here is an example of a business description made by the use of Upmetrics:

Also, do not forget to mention the type of food truck you are going to start, for instance, your business might be the one from below: 

• Gourmet food trucks 
• Taco trucks 
• Pizza trucks 
• Burger and sandwich trucks 
• Dessert trucks 

If you already have another local food truck and this is the other one, then write the business history about your food business.

After that, mention the vision and mission of your food truck business along with the future goals. Include the names, qualifications, and specializations of the owners.

3. Industry Analysis

The industry analysis will give you all the details about the food industry you are going to enter. It will support you in a better understanding of your business.

Here are some types of questions you might ask while conducting a food industry analysis:

• What is the current size of the food truck industry in the USA?
• What are the major trends in the food truck industry?
• Who are the huge players in the industry and what is their market share?
• How is technology affecting the food truck industry?
• What is the average price range and spending limit of the customers?

In short, industry analysis will help you have a better understanding of the market and support you in making informed decisions.

4. Competitive Analysis

Competitive analysis will help you to know the price point and positioning of your business in the food industry. This way you will also get to know about your direct and indirect competitors, as in other food trucks in your location.

Start your competitive analysis section by listing all your competitors with all their plus points and negative points. Some of the questions you might ask to know your competitors are:

• What food items does their menu include?
• What is their market share?
• What are their USPs and what do their customers like about them the most?
• How much does a food truck cost?
• What is their pricing strategy?
• What are the weaknesses through which you can have a competitive advantage?

After getting all the above answers, analyze your strengths, weaknesses, opportunities, and threats to get a better understanding of your USPs.

This way you can get to know the USP of a food truck business. Once you get the USP, flaunt it in your own business plan.

5. Market Analysis

Competition in the restaurant industry is high, and to get a small gap to enter the market is a huge opportunity. Once you enter the market, it is time to define and mention your target market first.

Your target audience will depend on the type of food truck services you provide and the location of your food truck.

Once you know who you are going to serve, then understand the market by knowing the current trends and customer preferences. For example, some of the market trends for a food truck are:

• Health conscious diet
• Local sourcing
• Food transparency
• Kiosks (contactless ordering and payment)
• Creative menu items

At the end of the market analysis, do mention the regulatory environment a food business needs to follow in the particular location.

6. Sample Menu

One of the most necessary steps to launch your food truck business is designing the sample menu. Generally, food truck businesses provide fast-preparing meals.

A sample menu forces you to think about what will you make and serve your customers. Consider where you will store uncooked food, what you will need to prepare that food, and what you will use to serve that food to your customers.

Your menu should be in coordination with your target customers; for example, if you have students around the corner then design your menu with fast-serving dishes.

The menu is also a part of your branding, so keep the color and design of the menu the same as your food truck. Here is an example of including your menu in the food truck business plan:

7. Sales and Marketing Plan

You can see a food truck in the corner of every alley, so you need to reach customers and not wait for them to come to you. For that, you will need a food truck marketing strategy in place. Some of the strategies are:

Create a professional and mobile-friendly website including your location, contact information, and images of the food items you offer. This will help local customers find you online.

Social media marketing

Maintain active profiles on TikTok, Twitter, FaceBook, Instagram, and all other major social media platforms to spread your reach. It will help your target market to recognize you and will interest them to visit your food truck.

Loyalty programs

Think of implementing a loyalty program to reward your existing customers. You can offer free food dishes, BOGO offers, discounts, or any other such thing. These programs can help you increase the customer retention rate and encourage them to visit your business more.

Community engagement

Participate in food truck gatherings, local events as a stall, and other fun food festivals. Engage with the local community by sponsoring or collaborating with local organizations. Building a strong local reputation can help you reach a wide customer base.

Email marketing

Send regular newsletters, special offers, discounts, and event invitations to everyone whose details you got from your website. Email marketing can be a powerful tool for customer retention and engagement.

8. Management team

Letting your readers or investors know who is behind your food truck will allow them to understand your business more.

The management team is all about who is behind the wheels of your food truck and what are their roles. If you are starting a new food truck, then showcasing your experienced managers or head chef will make your business look stronger.

Here is an example of a management team:

9. Business Operations

In the entire business plan we have talked about goals, but here is the point where you have to mention what will you do to fulfill those goals.

Everyday goals

They are the heart and soul of your food truck business. From buying the most qualitative food items to fulfilling customers’ needs and everything in between is included.

Long-term goals

It’s all about milestones: the moments that make you pop the champagne. Picture celebrating your 10,000th delivery, hitting that milestone sales figure you’ve dreamt of, or expanding your team.

10. Financial Plan

For a successful food truck business, you will need a proper financial plan with realistic financial projections. In this section add the financial statements like income statement, cash flow statement, and balance sheet for 3-5 years.

• Income statement

An income statement is also known as a profit and loss statement, which describes the profitability of the business by deducting expenses from revenue.

The income statement is one of the important things your investors will focus on. So, don’t be greedy and display huge impractical numbers.

• Balance sheet

Balance sheets display your assets and liabilities. Although they can contain a lot of details, like equity, goodwill, other intangible assets, etc.

• Cash flow statement

Your cash flow statement helps you see how much money you need to start or grow your business and avoid running out of money. This cash flow should be maintained even for certain months after launch that is before you start making profits.

Surprisingly, you can make a profit but still face financial problems that could lead to bankruptcy. Therefore, you will need proper cash flow planning to avoid such circumstances. Here is an example of a 5-year cash flow statement:

Why Do You Need a Business Plan for Your Food Truck?

If you are wondering why there is a lot more voice for a business plan, then consider this:

• A food-truck business plan offers a strategic direction to your business goals and helps you achieve them.
• A business plan will also help you understand the finances of your business and help you to secure funding.
• It will clarify the vision of your food truck, so you can focus on the daily operations.
• Also, it allows you to know specific risks you might face in the future, as a result, you will be prepared.

Now that you have plenty of reasons to have a food truck business plan, start writing one.

Related Food Truck Resources

• Food Truck Financial Plan
• How Much Does It Cost To Start A Food Truck
• How to Start a Food Truck Business

Download a Food Truck business plan template

Ready to kick-start your business plan writing process? And not sure where to start? Here you go, download our free food truck business plan pdf , and start writing.

This intuitive, modern, and investment-ready template is designed specifically for food truck businesses. It includes step-by-step instructions & examples to help in creating your own food-truck business plan.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Write Your Business Plan with AI

Lastly! With the help of our food truck business plan template, you know how to write a business plan. So, you are a step closer to starting or expanding your food truck business exciting, right?

You know what else is exciting? Making your business planning process a lot smoother than this; yes, it is possible with the AI assistant of Upmetrics.

So, take a deep breath as we will take care of your business plan, and focus only on your business operations.

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Frequently asked questions, can i start a food truck business without a formal business plan.

You can start a food truck business without a professional business plan, but it is not advisable, as a business plan will act as your roadmap. If you are going to start your business with bootstrapping, then you can take the risk of not writing a food truck business plan.

How often should I update my food truck business plan?

Your food truck business plan is a live document. So, you can edit it wherever and whenever you want. Ideally, you can read and edit your business plan once a month or as many times as required.

What should I include in the financial projections section of the business plan?

In a food truck business plan, you will need various estimated financial statements like

• Break-even analysis
• Sales forecast
• Uses of Funds
• Financial ratios

What are some tips for writing a food truck business plan template?

Some tips for writing a food truck business plan are:

• Be clear and concise about your goals
• Use data and statistics to support all your claims
• Be practical and realistic about your financial projections
• Ask friends and family to give feedback on your plan
• Read and re-read it before presenting it to your investors

What is the ideal length for a food truck business plan template?

Generally, the length of a business plan is around 15-35 pages. It also depends on the audience of your business plan, the type of your business, and the type of your business plan. As for a one-page business plan, the length is going to be 1 page.

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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How to Start a Food Cart Business: a Step-by-Step Guide for Beginners & Entrepreneurs

Wondering how to start a food cart business?

The timing couldn’t be better: it seems that the street food craze is sweeping the world.

From bustling cities to small towns, food on wheels is a growing trend. And it’s not just drawing street food fans, it’s bringing in big bucks too: according to Intuit , the street-food business, including food trucks and mobile food carts, is a $2.7 billion industry that has seen a 12.4% growth in the last 5 years alone!

Traders are encouraged by the growing number of urban street markets, private events and street food festivals, while the entire trend is supported by the global rise of the “foodie” culture, making the public increasingly open to new taste experiences and quality cuisine.

Which begs the question:

What Makes Street Food So Popular?

From the entrepreneur’s perspective , street food comes with important benefits such as low start-up costs and mobility. Kiosks, food carts , trailers, and food trucks have a lower overhead than restaurants and can be moved if one location does not generate enough business.

For customers , street food is convenient and cost-friendly, which makes it attractive for basically everyone: locals and tourists, students and busy professionals, frugal singles and large families.

The most popular street foods?

There are the classics: hot dogs, hamburgers, ice cream and doughnuts.

Then there are those inspired by ethnic cuisines such as tacos, empanadas, sushi and crepes. The possibilities are endless and it’s up to you, the entrepreneur, to find the dishes and recipes that will set you apart from the rest and, most importantly, that will help you build a good reputation and a loyal customer base.

But, before you decide what foods you’re going to sell, you’ll have to consider:

The PROs and CONs of a Food Cart Business

There are many advantages to starting your own food cart business, which is why a lot of people choose to do just that. The PROs include:

• Low start-up costs
• Less risky than opening up a restaurant
• The ability to be your own boss
• The flexibility to work when and where you want
• Little restaurant experience required
• The growing popularity of the street food trend

But, as with all business endeavours, there are also CONs to examine. A food cart business is no walk in the park: there’s a lot of hard work to be done and you’ll only see significant profits after your business picks up.

The biggest CONs are:

• Being self-employed can be testing for some
• Long hours, early mornings and night shifts required
• Fierce competition
• There are many regulations and laws to comply with
• Seasonal reliance
• Finding a suitable location that you’re allowed to trade in
• Customer service can be challenging if you’re a solo-preneur

From our experience as food carts manufacturers , people are attracted by affordable start-up costs and by flexibility; at the same time, the most common complaints – at least in the initial phase – are long working hours and industry volatility in terms of trends and business opportunities.

However, if you are passionate about good food and you start with solid and well-researched plan, there is every chance you could make a roaring success of your food cart start-up.

How to Start a Mobile Food Cart Business? A Step-by-Step Guide

First step: market research.

Market research involves finding out the “who, what, where, why and when” of your business, and while it’s not the most exciting part of your endeavour, it’s certainly an essential one.

It can be risky and even silly to assume that you already know the answers to these questions and then get caught out later on.

Here’s what you need to address at this stage:

Operational

• Where will you set up your food cart business?
• When will you open to ensure the best business?
• How will the weather affect your trade?

Target Market

• Who are your customers? What is their demographic?
• Competition
• Is there any competition? What do they offer?

Locations & Business Opportunities

Finding a couple of great locations will play a major factor in your success and it depends on several key factors:

• Where you’re allowed to park by law
• Where the customers are
• The prime hours for each location

Some great places and opportunities to consider for trading are:

• Office parks
• The business district
• Shopping districts or malls
• Popular tourist locations
• Sports venues
• Parks and beaches
• Bus and train stations
• College campuses
• Festivals and events
• Conferences and conventions
• Private events (weddings, birthdays, etc)
• Corporate events

Most of these locations will require permits and/or owner agreements, so make sure to check with your local authorities & institutions beforehand.

When it comes to festivals, events, conferences and conventions the best thing to do is to get in touch with organizers and lease your space well in advance.

Determining Your Food Cart Business Legal Requirements

You’ve probably noticed that most How-To guides on this subject place sorting out the legal requirements at the bottom of their To-Do list.

And here’s why: the permits and licensing requirements for food cart businesses vary from country to country, state to state, and even city to city, so making a definitive list with everything you need is close to impossible.

Only your local Health Department can provide you with the information that applies in your case.

At this stage, you’ll address issues such as:

• The street food vending regulations in your city
• Licenses and permits required
• The types of food you’ll be selling and how they’re handled, stored, thawed, and cooked
• Commissary requirements (the requirement to operate from a licensed commercial kitchen)*
• The size, make and the equipment of your street food vehicle
• The vehicle’s fresh water and waste water holding capacity
• Safe food handling course requirement
• Hygiene policies
• Pre-approval inspection of the equipment

* Most municipalities don’t allow food vendors to operate a food cart business from a residential kitchen and they require the use of a commissary – a licensed and inspected commercial kitchen.

Vendors have to report to the commissary each day of operation to prepare the food that will be served from the cart and to clean the vehicle’s equipment at the end of the day.

If you are selling prepackaged foods, you are not considered a food handler and may have less stringent requirements than if you are actually preparing foods or even scooping ice cream.

But as long as food is unwrapped, you are typically considered to be a food handler and must meet specific regulations.

While your cart or truck manufacturer will not know the nuances of each city’s requirements, they can usually help you meet specific health standards.

For example, all of our food carts are manufactured using food-grade materials for countertops and other parts/areas where food may be stored and prepared.

In addition, we work closely with each of our clients to adapt the carts’ cooking & water systems so they will meet all the health and safety standards specific to the vendor’s area.

Getting all the trading, health and safety qualifications in order will not only allow you to operate legally (and avoid hefty fines), but it will also help enforce the public’s hard earned perception that that those running a street food business are doing their utmost to meet and surpass sanitary requirements.

Basically, your legal status and reputation are on the line.

In addition to the food service permits and health requirements, you may also need to apply for:

• Business license
• State sales tax permit
• Truck/cart registration

To sort these out, the city hall or the county clerk’s office will usually point you in the right direction.

Keep in mind that before you can hit the road, health inspectors will check your vehicle. Usually, they look for:

• Proof of ownership, proper identification and license (of the vehicle)
• Proof of District-issued Food Manager Identification Card
• Food-purchase record storage and record keeping
• That your depot, commissary or service support facility meets your vending unit operation needs
• Copy of license for the service support facility and/or a recent inspection report

Food vehicles are typically inspected at least once a year by a health department inspector, sometimes randomly.

The inspector checks to see how food is stored so that it does not spoil and that it is kept at the proper temperature. All food equipment as well as sinks and water supplies are checked.

Commercial kitchens and garages in which food vehicles are kept are also inspected frequently and can be given high fines if they do not meet health and fire codes.

Some have been shut down because of too many violations. Likewise, trucks and carts have lost their licenses over repeated violations.

Editor’s Note: if you want to learn more about what it takes to launch a business, from a more general perspective, here’s a great resource to get you started: How To Start A Business: A Complete Playbook

Choosing Your Street Food Business Platform/Vehicle

Mobile street food businesses come in a variety of shapes and sizes, and deciding which is the right one for you depends on your:

• Start-up budget
• Time commitment
• Vision and the ability to fulfill it
• Experience at running a business
• Target demographic

Your options are: food stands, food carts , concession trailers and food trucks. Each of them has its own unique benefits as well as some disadvantages:

Food Stands

Food stands are essentially booths or stalls that are either temporary or mobile, and are used to sell everything from quick snacks such as bagels, pretzels and ice cream, to more elaborate meals.

Most food stands are usually operated indoors and they are an excellent choice in areas where outdoor selling is limited by cold or unpleasant weather.

Pros: low start-up and running costs, flexibility. Cons:  limited trading areas, limited inventory.

Mobile Food Carts

Pros: affordable, easy to customize, easy to move between locations (they can be pulled by a bicycle/car or pushed by hand), easy to park, easy to maintain, suitable for both indoor and outdoor use, may require less licensing than a food truck. Cons: not too much space for preparing elaborate dishes.

Concession Trailers

Same as food carts, concession trailers have been around for a long time and are often found at fairs, carnivals and sporting events.

Pros: low overhead costs compared to food trucks, more space for cooking. Cons: more difficult to move between locations, require bigger parking space both on/off-duty, involve higher operating costs.

Food Trucks

We believe food carts are the best choice, especially for first-time entrepreneurs. Their size, mobility and low running costs make them ideal for starting a profitable food cart business with the potential to grow and expand at a rapid pace.

Are Food Carts Profitable?

A food cart business can be very lucrative right from the start; however, this depends on many factors such as location, footfall, weather, product type etc.

According to our customers, if you can secure a good location for your business, you can expect between 100 to 400 customers per day (during weekends, festivals and public events), bringing in anywhere from $500 to $3,000 daily.

Choosing Your Concept, Menu & Suppliers

Whether they’re food carts , concession trailers or food trucks, most successful street food businesses out there have themes or concepts that are consistently reflected in all their elements: exterior design, branding, menus and recipes.

Your concept should be a means of distinguishing you from your competition and building your niche market. And, if you get it right, it can even draw media attention to your business.

This brings us to menu planning. Choosing what kind of food you’ll prepare and sell can be a fun task, and if you look at the carts, trailers and trucks operating on the streets, you’ll find that almost anything edible can be served as street food.

But there are a lot of factors to consider when it comes to menu planning, such as:

• What foods do you know how to cook?
• What foods do you enjoy cooking?
• What are the most popular foods in your area?
• What foods can you prepare relatively fast, repeatedly and without difficulty?
• What foods could your customers take with them easily?
• What foods have a good profit margin?
• What times of day will you be open for business?
• What are you going to specialize in?
• How many items will your menu have?
• Where are you going to get the ingredients from?

After deciding on the type of food you’re going to sell, it’s time to start working on recipes and experiment with various ingredients.

Once you’ve found a few favourites, test them on your friends and family first. Don’t be afraid or dismissive of criticism: it’s better to receive it from them.

The bottom line is, don’t start out with foods you have not thoroughly tested. This means you need to perfect each recipe to be sure it has the following qualities:

• It tastes consistently good
• It’s easy to make repeatedly in large quantities.
• It’s easy to serve
• It’s easy to store & carry

Next in line is figuring out your sourcing – where will you buy your ingredients from?

Sourcing your food can be an important factor in planning your purchases, schedule and menu items.

Common sources include wholesale food distributors, food manufacturers, local and regional suppliers, green markets and farmers markets.

Determining the right quantities is another matter that you’ll need to deal with, initially by trial and error. If you have the time, spend a couple of hours observing the street food vendors in your area. How many customers do they have per hour? When’s their busiest period? This will help you estimate a potential sales volume, which you can use to draft your shopping list.

Pay special attention to foods and ingredients that lose their freshness quickly; learn which are the items you can safely keep throughout the day and how many of them you can sell before they go bad.

Creating Your Food Cart Business Plan

Despite the low start-up costs involved, jumping in to street food without any kind of plan is a sure-fire recipe for disaster. The space is extremely competitive, and you need to have a very clear idea of the niche you plan to fill before taking the plunge.

Writing a business plan isn’t a complicated job and it doesn’t have to be very long. Keep it concise, to the point and ensure that you cover each of the following topics:

• Your business’s name
• Business management: who’s going to be in charge?
• Your mission statement: in one sentence, summarize the aim of your street food business.
• Your vehicle: are you going to use a stall, a cart, a trailer or a truck?
• Start-up costs: what do you need to buy to get started? What fees to you need to pay in advance?
• The daily operational costs: how much will you spend on ingredients and what are the overhead costs on a weekly or monthly basis?
• Funding and financial projections; where do you plan to get the money from to start the business and what are your projected profits/losses for the next month, year, 2 years etc? How will you maintain the cash-flow?
• Your schedule: will you work on the business full-time or alongside your day job?
• What’s your main competition and how will you differentiate yourself from it?
• What is your marketing strategy?
• Do you have the logistics in place to deal with delivery and customer service?

If you plan to focus on events, your food cart business plan should include a clear targeting strategy. Pitch fees will vary widely, and there are a whole host of other variables to take into account including total attendance, other traders present, and the demographic of customer that will attend.

A good idea would be to create a spreadsheet with all the events and street food opportunities in your area. The amount of options available could seem daunting in the beginning, so start by thinking about what kind of event or environment you would expect to see a street food business similar to yours.

The next step would be to attend a few events yourself, taking note of the businesses that appear to be doing well and why.

As a general guide, generic fast-food businesses that focus on sales volume fare well at large music festivals and other events where the food is incidental to the main experience, whilst high-end street food traders perform better at events in which the customer will be searching for a new taste experience.

However, all the preparation in the world can’t account for the unexpected, and you will find some events simply fail to produce the expected revenue.

Your business plan should account for this, and you should always have enough spare cash in reserve to act as a safety net when you run up against the worst case scenario

Your approach to branding and marketing is a vital part of your business plan. A strong brand will help you stand out from the crowd, which is important for attracting customers as well as for securing spots at venues.

Remember: you are often selling a lifestyle with street food, so your brand should have a good slogan and a clear identity which reflects this.

Social media should obviously be central to your marketing plan and a strong Facebook and Instagram presence will help you raise your profile and create an army of online followers who you can spread your message to.

Regularly update your profiles with good quality photos as they generate a lot of interest and always display your social media handles so your customers /potential customers can connect with you

Estimating Costs: How Much Does It Cost to Start and Run a Food Cart Business?

There’s no set formula for determining how much starting a street food business is going to cost you since the niche is very broad and there are too many possibilities.

But even so, if you were to estimate, here’s a general expense breakdown:

Food Cart Business

• $3,000 – $5000 on a fully equipped food cart
• $500 – $700 on your ingredients & initial food stock,
• $400 – $ 600 on permits and registrations,
• $500 – upwards on marketing,
• $500 for the first month to park and clean the cart
• $500 in other miscellaneous costs

For comparison purposes, here are the estimates for a food truck business:

• $50,000 – $75,000 on a retrofitted food truck
• $1,000 – $1,500on initial ingredients
• $2,000 on permits and licenses,
• $2,000 for the first month of a commercial kitchen rental
• $500 for the first month of parking and maintaining the truck
• $1,800 on kitchen supplies
• $3,000 on marketing and promotion
• $2,000 on packaging
• $500 in miscellaneous costs

Huge difference, right? Regardless of your choice, you need to do the math before spending any money so that you do not run out before you get started.

Final Words of Advice

Speaking with our customers about their businesses, we’ve learnt that a background in catering or hospitality isn’t necessary to succeed – indeed, a lot of successful food cart businesses were founded by people with no prior experience of serving food.

Their biggest allies? Great food, flexibility – the ability to pivot according to the market’s trends and demands, marketing – a well-thought strategy for promoting their business across multiple channels, and outstanding customer service.

Do you have any questions concerning our food carts ? Contact us and we’ll do our best to help you out!

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7-Step Plan For How To Start A Mobile Food Truck Business

Just imagine that you can earn money by going where the people go and making them happy. By what? By food, of course! Fairs, outdoor parties and celebrations, and just busy spots in general tend to be accompanied by mobile food carts. As opposed to buying a restaurant, it is cheaper and more convenient.

The idea of starting a mobile food business attained its popularity among entrepreneurs, as it is cheaper than opening a restaurant. Why do people love food trucks? They create a special atmosphere and sell delicious food/drinks at affordable prices. Swarms of people who want to try something delicious on the go are your potential customers, as well as lovers of taking photos of unusual things.

Starting a food truck ? Check out the following steps of your future business plan. Before expanding your own culinary ideas and creating a community, it is better to use the previous experience. Here are the basic SEVEN steps needed to launch a winning food truck business!

Sign up to receive the FoodTruckr Newsletter and we’ll throw in our free guide: 6 Free Social Media Tools to Get People Talking About Your Food Truck.

1st Step: Buy A Food Truck

Have you already thought about the vision of your brand and the menu? The truck is the base of operations and foundations for your ideas! There are several situations: you may have your own truck (generally unequipped), or you may have to buy a food truck. Let’s start with the beginning!

In the first case, you only need to prepare all the necessary documents. Every city has its special requirements. Contact your local government to get the information considering policies, truck permissions and parking restrictions, let alone the availability of a driver license and health department certificate.

There is a wide range for starting up a food truck. If you want to save your money, the best way is to buy a used vehicle. However, there is a 100 percent chance the previous owner equipped and customized the outside dining establishment. Make it over according to your specific idea by finding the unpainted truck. Is it expensive? Actually, there are a lot of websites where you can purchase your first food truck. The price can start at $15,000.

2nd Step: Make Customization

If you want to sell food that customers can’t buy from another truck, you should emphasize your uniqueness by design. If your food truck has a pretty unusual design, people will appreciate sharing the pictures of it on social media and it will be a nice additional promo for your brand.

By what means can you do this?

• Buy vinyl food truck wraps.
• Paint your food truck.

Vehicle wraps are considered to be highly effective. According to some studies, wraps are the most eye-catching forms of advertising, but they are actually more expensive than painting.

3rd Step: Develop A Menu

The winning menu should be a combination of unique dishes and old favorites, but it shouldn’t be a huge list of items. Your menu dishes should be easy and fast to prepare. Fit the season by offering specials. If you are afraid to fail, hire a chief or another expert to help you with menu creation.

4th Step: Use Social Media

Even if you haven’t organized everything completely, you may intrigue your potential customers by sharing pictures of the creation process and general ideas of your future project. You shouldn’t be an expert in social media marketing and sacrifice most of your time on maintaining accounts. Present the main advantages of your food truck on free Facebook and Twitter accounts by interacting with your fans, friends and followers. For instance, post short videos about your special of the day, use “#” and report your location to promote.

5th Step: Calculate Additional Expenses

You should remember that purchasing a vehicle is not the last important investment. $25,000 is recognized as an average sum of money for starting a food truck.

Calculate how much you spend on:

• Workers’ Salaries
• Cooking appliances, etc.

All additional and regular expenses have to be included in your financial plan . By the way, plan the budget in such a way that you are ready for unexpected situations.

6th Step: Find Location And Parking

As a food truck is a mobile food cart, you should always be where the people are. For instance, selling near educational establishments is a great idea, as students seek for dining options around the clock. Consider your customer, meet the demand and earn money! As this type of vehicle is large, you may have difficulties with parking. Will it be safe to leave your truck overnight? The place of your parking should be safe and legal.

7th Step: Improve Step By Step

It is okay that not everything will be perfect from the very beginning! Work on the development of your brand, expand your idea, create a community of fans and collaborate with local restaurants and shops. The more unique your idea is, the more people will become your regular clients. In order to make your food truck a household name, you should prove your quality by means of point-by-point improving process.

Editor’s Note: This article was a guest post from Lisa Griffin. Lisa is a blogger and freelance writer for  Edubirdie . Her lifestyle credo is “Your behavior is the sum total of your action and reaction to issues and people around you.”

To dig your teeth into what FoodTruckr has to offer, make sure to like us on Facebook and follow us on Twitter , and also make sure to check out more content that we bring to the table.

About the Author

FoodTruckr is the #1 online destination for current and aspiring food truck owners looking to succeed in the mobile food industry. Self described “food truck devotees,” the FoodTruckr team enjoys reading about successful entrepreneurs, salivating over photos of burritos on Twitter, and long walks through food truck parks. Chat with FoodTruckr on Facebook or check out the FoodTruckr School podcast for more awesome tips to level up your business.

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Beyond the Food Truck: Six Ideas for Mobile Food Businesses If you want to start a food business, but don't have the dough for a full restaurant, check out these mobile options.

By Entrepreneur Press and Rich Mintzer Sep 26, 2011

Opinions expressed by Entrepreneur contributors are their own.

Even when you don't have a lot of money or time, you still want a tasty meal, and mobile food businesses are uniquely positioned to provide it. Whether serving crepes from a splashily painted food truck, a bacon-wrapped hotdog from a push cart, or Baskin-Robbins ice cream from a franchised kiosk, food is going where consumers are.

Even though street food is enjoying a resurgence, this is a tried-and-true business model that's fed generations of eaters. Today, there are approximately 3 million food trucks operating in the U.S., more than 5 million food carts, and an unknown number of kiosks.

If you multiply the following six mobile options with the myriad cuisines and foods you can serve, possible locations, and the time of day you are open, your options for a mobile food business are endless.

1. Food kiosks Food kiosks are temporary booths or stands used to prepare and sell foods like pretzels, ice cream and hot dogs. The low overhead, flexibility and ease by which a kiosk can be opened and closed are among the reasons why they're so popular. Because they are usually operating indoors, kiosk owners typically sign licensing agreements at malls, stadiums, movie theaters or other locations. Many major food businesses such as Ben & Jerry's franchise express kiosks.

2. Food carts and concession trailers

This style of mobile food business has been around for decades and is a multibillion-dollar industry. Cart owners prepare food in advance or purchase ready-made food like ice cream bars. Then, the food is heated up or pulled from the freezer. Food carts used to focus on simple fare like ice cream and hot dogs, but have expanded their menus in recent years to include dishes like kebobs, gyros, salads, and fish and chips.

Related: Food Trucks 101 -- How to Start a Mobile Food Business

Food carts usually either have room for the vendor to be inside and serve food through a window, or they utilize all the cart space for food storage and cooking equipment. Concession trailers, on the other hand, are often found at fairs, sporting events, or other places where they can be unhitched and sit for awhile. Unlike most carts, trailers allow for cooking and have room for two or three people inside.

Carts are less expensive than food trucks, and are usually pulled by a vehicle or pushed by hand. They're fairly easy to maintain and, in many areas, require less licensing than the full-sized food trucks.

3. Food trucks Larger than carts, trucks can carry more food and handle more business. However, food trucks need more space to park both when doing business and when off-duty.

A food truck can carry more sophisticated equipment for storing, serving, cooking and preparing foods. Food trucks can serve traditional quick lunch fare, be stocked with food from concessionaires, be run by a chain restaurant like In-n-Out or California Pizza Kitchen, or serve gourmet fare by an up-and-coming chef. They can do big business in corporate parks and places that have limited access to restaurants.

Related: A Retail Spin on the Food-Truck Model

There are two types of food trucks: the mobile food preparation vehicle (MFPV), where food is prepared as customers wait, and the industrial catering vehicle (ICV), which sells only prepackaged foods. An MFPV costs more than an ICV, and both cost more than a food cart. A used hotdog cart may cost under $2,500, while a retro-fitted used food truck typically costs $30,000 or more. A new MFPV could cost upwards of $100,000. Complying with additional health department rules and regulations can also drive up food truck costs.

4. Gourmet food trucks Basically the same as a food truck, the gourmet food truck takes food quality to a higher level. Of the 4,000 food trucks licensed to do business in the Los Angeles area, only about 115 are considered gourmet. They are run by ambitious young chefs who offer cuisine not typically found in food trucks, such as specialty crepes, Korean-Mexican fusion, osso buco or velvet cupcakes. Many gourmet trucks have specialties and themes. In addition, they let their clientele know where they'll be parked through their websites and social media sites like Twitter. While food trucks need not have kitchens, gourmet trucks are more likely to have food prepared on the spot -- and high-end food at that.

Related: How to Start a Food Truck

5. Mobile catering businesses Mobile catering trucks are similar to mobile food trucks, but are hired for specific events. The client chooses food from a catering menu, and the truck then serves the food at the event.

The differences between catering trucks and food trucks are primarily in the manner of doing business. One particular advantage of a mobile catering business is you're not risking as much in inventory because you are cooking and bringing food as ordered for the party. You also have a specific destination, so you need not worry whether your favorite destinations will be busy or not.

6. Bustaurants As the name implies, a bustaurant is not a truck but a bus, often a double-decker with the lower level for the kitchen and the upper level for customers to sit and eat. This is a new concept and hasn't really been proven yet, especially since the idea tests a rash of licensing issues. They also require more room to park, and are more costly to start because the buses need to be fully refurbished.

Related: Franchises Hop on the Food-Truck Trend

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Home » Sample Business Plans » Food

A Sample Food Truck Business Plan Template

The food truck concept has been around for centuries, right from when street vendors in ancient Rome made and sold delicacies to the public using wooden street carts. Today, that concept and the accompanying menus have evolved from just simple street food to different, complicated cuisines.

If you are looking to start a food truck business, you need a well-researched and detailed business plan. Aside from helping you cover all your bases, it makes available vital information about your new endeavor to potential investors. Since putting together a food truck business plan is such a vital step, it is advisable you write it before you even purchase a food truck.

Steps on How to Write a Food Truck Business Plan

Executive summary.

Beta Life Chops will be located in a large food cart pod near Portland’s Jade district known as Eastport Food Center. Our menu will include popular food options made with the creativity and uniqueness that our truck represents. Our eclectic style and consistency will make us a favorite among Portland foodies and ensure that our food maintains a loyal following amongst young professionals and college students.

With Eastport Food Centre nestled in one of the city’s most diverse neighborhoods and with an impressive social media following, Beta Life Chops is well-positioned to become a local go-to dining destination for anyone eager for a good, delicious, interesting fare at an affordable price.

Company Profile

A. our products and services.

• Hot Products: Burritos, tacos, flautas, Hunan Vegetables, Shanghai chicken, grilled chicken, Grilled cheese, pretzels, the chef specialty of the day
• Cold products: Seafood, sandwiches, rolls, wraps, and salads
• Drinks: Soda, freshly squeezed juices, hot chocolate, wine, beer, coffee
• Create your own: We will make available raw materials for our clients to combine anyway they want

b. Nature of the Business

• Specifically for food-conscious modern buyers
• Attending to all age groups
• Healthy choices
• Top menu customization
• Website and mobile app
• Festive truck event catering
• Customer feedback is an utmost priority
• Consulting chefs developing recipes
• Create your own recipe

c. The Industry

Our business will operate in the food truck industry. This industry is made up of businesses that are engaged in preparing and serving meals from a mobile truck.

d. Mission Statement

Our mission at Beta Life Chops is to create and serve a product line that fits nicely with health trends nationwide.

e. Vision Statement

Our vision at Beta Life Chops is to offer our customers out-of-this-world meals inspired by our eclectic style and consistency. We will always maintain a simple philosophy – serve only the highest quality product, prepare it in a clean and sparkling environment, and serve it in a warm and friendly manner.

f. Tagline or Slogan

Beta Life Chops – Trendy with Happiness

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Beta Life Chops will be a member-managed Limited Liability Company, formed in the state of Oregon and operating out of a custom-built food truck in Jade District Portland. We believe that the LLC provides us adequate cover and protection to grow and diversify our revenue streams.

h. Organizational Structure

• Food Truck Manager
• Assistant Food Truck Manager
• Window Attendant
• Truck Cooks

 i. Ownership/Shareholder Structure and Board Members

Beta Life Chops will be a member-managed Limited Liability Company, formed in the state of Oregon and operating out of a custom-built food truck in Jade District Portland. Our Head Chef and Truck Manager Lillian Birch and Michelle William the Assistant Food Truck Manager remain the owner-operators and will share the responsibilities of day-to-day operations.

SWOT Analysis

A. strength.

Aside from the hands-on experience of our founders and chef, our strength lies in our financial capacity and eagerness to succeed in the business.

We have purchased a brand new mobile food preparation vehicle (MFPV) that can meet the needs of over 500 customers per day. We have also developed relationships with brand experts who will help to build our brand to a level where we can start selling franchises.

b. Weakness

Our intention of running our mobile truck business alongside other similar business offerings like training, consultancy services, and sale of the franchise can distract us from focusing our energy in one direction. We totally understand this and are striving to block any area that will sap our energy and make us underperform in our core business area – the sale of foods and drinks.

c. Opportunities

Our business location presents a massive opportunity for us at Beta Life Chops. Eastport Food Center is a large food cart pod near Portland’s Jade District, well situated in one of the city’s most diverse neighborhoods, and the 25 carts that reside here reflect that.

i. How big is the Industry?

According to industry reports, the market size of the US food truck industry measured by revenue is $1.2bn in 2023.

ii. Is the Industry Growing or Declining?

The US food truck industry is growing rapidly and has outpaced the broader foodservice sector. Reports have it that it experienced a boom over the five years to 2022 owing to the surge in gastronomy in the United States. It is still expected to grow at an annualized rate of 6.6% in the coming years.

iii. What are the Future Trends in the Industry

Here are the top trends in the industry according to experts.

• Rising demand for environmentally friendly food
• Growing vegan options and meat-plant blends
• More event partnerships and promotions
• More commercial restaurants experimenting with food trucks
• Increased technology and social media
• More peanut butter alternatives
• Flour alternatives
• West African cuisine
• Refined sugar alternatives

iv. Are There Existing Niches in the Industry?

When looking to start a food truck business, here are some niche ideas to look into;

• Preparing and serving food from a mobile truck
• Preparing and serving beverages from a mobile truck
• Preparing and serving dessert from a mobile truck
• Serving prepackaged food and beverages from a mobile truck

v. Can You Sell a Franchise of your Business in the Future?

Yes, our plan at Beta Life Chop is to build our brand to a level where we can start selling franchises and offer training and consultancy services in the mobile food truck industry.

At Beta Life Chops, one of the threats that we may likely face is vehicular traffic in key cities. Traffic can delay not just our clients but our truck from getting to our business location before lunch break is over. In addition, government policies could also pose a great threat to the mobile food truck industry.

i. Who are the Major Competitors?

• LGM Delicacies
• Eastport Beer Garden
• Grubtopia Comfort Soul Food(BBQ)
• Los Parceros (Colombian Food)
• Indian Hunger Point
• Lei’d Back Hawaiian Cuisine
• Samurai Sushi
• Off the Leash (Chicago Hot Dog)
• Japanese Express
• Northwest Gyros(Gyro &Shawarma)
• Bobablastic (Drinks & meals)
• Esan Thai (Thai Food)
• Mas Sabor ( Mexican Food)
• Turkish Agha (Turkish Cuisine)

ii. Is There a Franchise for Food Truck Business?

• Repicci’s real italian ice & gelato: $152,150 – $176,400
• Wayback burgers: $209,000 – $524,500
• Little caesars mobile pizza kitchen: $221,000 – $654,000
• Kona ice: $150,400 – $174,150
• Dairy queen: $1,101,135 – $1,856,655
• Cousins maine lobster: $187,150 – $815,450
• Johnny rockets: $597,100 – $1,189,000
• Toppers pizza: $292,146 – $530,652
• Gigi’s cupcakes: $226,700 – $425,500
• Captain d’s seafood: $709,300 – $1,231,400
• Cafe2u: $109,146 – $154,621
• Cheezious: $499,000 – $1,158,000
• Ice cream emergency: $129,700 – $179,650
• Sweet pea homemade ice cream: $40,250 – $110,500
• Mister softee: $158,500 – $181,000
• Tikiz shaved ice & ice cream: $132,000 – $144,000

iii. Are There Policies, Regulations, or Zoning Laws Affecting Food Truck Business?

Yes, the requirements to start a food truck business in the United States varies from state to state and even city to city. Food truck regulations most often fall into three major categories: health, zoning, and vehicle requirements. Health regulations handle the sort of equipment your truck must have, what permits you and your employees need, and whether you need a commissary kitchen.

Zoning regulations note the places you are permitted to park your truck for service, what types of neighborhoods are not allowed, and where you can park your truck overnight. There will also be laws on what type of vehicle you can use, what emissions regulations your truck must meet, where you need to register your vehicle, and if your truck driver needs to have a commercial driver’s license (CDL).

Marketing Plan

A. who is your target audience.

i. Age range

At Beta Life Chops, we believe our target audience will fall within the age range of 14 to 45 years.

ii. Level of Educational

The level of education of our target audience will vary exponentially. There is a middle school and high school in our town. We expect students from these schools to frequent our business location.

iii. Income Level

The income level of our target market will be individuals that earn from $2,400 annually and above.

iv. Ethnicity

Our target market at Beta Life Chops will include anyone who is looking to taste local cuisine without having to pause what they’re doing and take time to go to a restaurant.

v. Language

There are no language restrictions at Beta Life Chops.

vi. Geographical Location

Our aim at Beta Life Chop is to serve the residents of Portland, Oregon, and surrounding areas as well as those who work in the Jade District.

vii. Lifestyle

• Families and Couples
• Local office workers
• Soccer/stay-at-home moms

b. Advertising and Promotion Strategies

• Interact with the local establishments like unions and service organizations and inform them about our business. In addition, offer them catering service for their events.
• Align with the right people that can be advantageous to our food business like event coordinators, tour guides, hotel personnel, etc.
• Speak to local companies’ management and offer to cater their events.
• Attend all the local events, like a farmers market, arts festivals, and carnivals.
• Always be easygoing and friendly with our prospective customers and never try to be too insistent.
• Always get involved in the local community’s activities
• Distribute our promotional business flyers and paper menus. We believe that the more we advertise the more advantage we will have over competitors.

i. Traditional Marketing Strategies

• Ensure that our food truck exterior is extra appealing to attract passing customers
• Distribute food samples outside our food truck
• Advertise in local papers and magazines
• Sponsored listings on Yelp or other websites
• Participation in delivery services such as Uber Eats, DoorDash, etc

ii. Digital Marketing Strategies

• Reaching out to local bloggers and websites
• Social media advertising
• Partnerships with local organizations (e.g., gym members get a free fruit cup with each wrap they purchase)
• Local radio advertising
• Develop a customer loyalty program

iii. Social Media Marketing Plan

• Pay Per Click
• Use Facebook Advertising.
• Show Your Truck and Coils At Work On Instagram
• Encourage Engagement
• Post Consistently
• Make Posts Visual and Add Relevant Hashtag
• Engage with Customers and Followers
• Post About Food and Food Trucks

c. Pricing Strategy

At Beta Life Chops, our pricing will be moderate so customers will feel that they are getting great value when patronizing our trucks. We will also ensure that our pricing stays moderate and at par with competitors.

Sales and Distribution Plan

A. sales channels.

At Best Life Chops, our website and mobile app will bring our products to the eyes of the public. In addition, our presence at Eastport Food Centre will not go unnoticed as we will have nicely decorated trucks, food tasting events, and mini-contests. We will participate in fairs and local events and we will cater to weddings and parties.

b. Inventory Strategy

After extensive research, we intend to achieve a level of order accuracy and make everything easier by leveraging mobile POS software.

We believe that the Tablet-based ordering screens will offer our customer-facing person an easy way to input orders. This will ensure that sending orders to the cook, or remembering the nuances of each order becomes easier.

c. Payment Options for Customers

• Payment with cash
• Payment via credit cards
• Payment via online bank transfer
• Payment via mobile money transfer

d. Return Policy, Incentives, and Guarantees

At Best Life Chop, we will have an easy refund policy, with a 100 percent satisfaction guarantee. Since we are great at what we do, we will always take care of every customer complaint, including a full refund if that’s what it takes. Our other refund options include offering customers a replacement meal or coupons that give free meals for their use in the future. If they choose a refund for their meal, we will only refund in the same form of currency used for the purchase.

e. Customer Support Strategy

• Always make delicious food made fresh with locally sourced ingredients using exquisite techniques.
• Ensure that foods maintain their quality and taste.
• Having multiple foods for customers to choose from.
• Being flexible enough to cater to special requests by customers.
• Ensuring to get customers’ feedback and being open to suggestions.
• Leveraging social media and other tools to increase business reach.
• Using CRM to manage the database of clients.
• Considering customers’ opinions before making any major decision

Operational Plan

A. what happens during a typical day at a food truck business.

In this line of business, this is how a normal day goes;

• You have to begin early by picking up the truck and heading to the commercial kitchen space where you’ll prepare your menu items.
• After preparation, you have to move your truck to your parking location as soon as possible.
• See to the culinary needs of your customers as swiftly and efficiently as possible, especially if you have a weekday lunchtime location.
• Drive your truck back to the commissary or storage location where you can legally dispose of grease, wastewater, and other cooking waste, and thoroughly clean your vehicle.
• When not cooking or serving clients, you will have to reach out to your market via social media or the production of flyers, and other means of marketing your business.
• Gas up your vehicle and inspect it for repairs.
• Shop for your food ingredients daily or every few days. Your storage space will be limited, so you’ll shop often.

b. Production Process

At Beta Life Chop, one of our USPs (unique, selling, point) is that our foods will be cooked fresh in front of our customers. We understand that people want fresh food and not something that has been cooked a day or so before. Owing to that, our production process involves preparing and cooking their food in front of them.

c. Service Procedure

At Beta Life, we need to prepare the truck and pick up daily fresh food supply, after which we will proceed to our commissary kitchen to prepare some of the meals. We then have to load up the truck and head to our sales location where we will now finish the meal preparation as each customer demands.

We will consult with specialized chefs to develop our base of proprietary food recipes and sauces. Also note that we will offer desserts, drinks, and also cater special events. For such occasions, we will use our festive truck specially painted and decorated for the event.

d. The Supply Chain

Our aim is to only make use of fresh products sourced from locally grown organic crops. Have it in mind that our prices will be almost the same as those of any fast food, which will encourage the vast majority of customers to want to try our food.

e. Sources of Income

Our primary source of revenue includes;

• Food and beverage sales
• Food truck consultation

Financial Plan

A. amount needed to start your food truck business.

We need around $40,000 to $200,000 to start up Beta Life Chops.

b. What are the Cost Involved?

• Purchasing a Food Truck: $5,000
• Vehicle Inspection: $500
• Retrofitting and Bringing Our Truck to Code: $25,000
• Generator: $2,500
• POS Software System and Hardware: $1,500
• Paint: $1,000
• Truck Wrap: $2,500
• Initial Food Purchases $2,000
• Utensils, Papers, and Goods: $2,000
• Permits and licensing: $2,300
• Website Design: $500
• Initial Office Equipment and Supplies: $1,000
• Advertising and Public Relations: $2,000
• Professional, Legal, and Consulting Fees: $2,000

c. Do You Need to Build a Facility?

No, Beta Life Chops will be started in Eastport Food Centre and operated out of a custom-built food truck in Jade District Portland.

d. What are the Ongoing Expenses for Running a Food Truck Business?

• Commercial Kitchen and Commissary Rent
• Monthly Credit Card Processing Fees
• Truck maintenance

e. What is the Average Salary of your Staff?

• Food Truck Manager: $48, 072
• Assistant Food Truck Manager: $35,734
• Window Attendant: $31,330
• Truck Cooks: $28,442
• Prep Cooks: $21,780

f. How Do You Get Funding to Start a Food Truck Business

• Equipment loan/financing program
• Rollover for business startups (ROBS)
• Business credit cards
• Personal loan
• A microloan from Small Business Administration (SBA)

Financial Projection

A. how much should you charge for your product/service.

To find out a good price point for your products and offerings, you should observe other food trucks in your location. Find out how many meals they serve on a typical lunch hour and how much they charge. However, remember to be conservative in your estimation, and figure out how much you need to make to be profitable daily. Divide the number of meals you expect to serve by this number and this is what each meal should cost to hit that number.

b. Sales Forecast?

• First Fiscal Year (FY1): $120,000
• Second Fiscal Year (FY2): $270,000
• Third Fiscal Year (FY3): $490,000

c. Estimated Profit You Will Make a Year?

At Beta Life Chops, we expect to make;

• First Fiscal Year (FY1): $36,000 (30% of revenue generated)
• Second Fiscal Year (FY2): $121,500 (45% of revenue generated)
• Third Fiscal Year (FY3): $269,500 (55% of revenue generated)

d. Profit Margin of a Food Truck Business 

In this line of business, a 30 percent profit margin is encouraging, but it will depend on your location, competition, efficiency, among other factors.

Growth Plan

A. how do you intend to grow and expand .

Our plan at Beta Life Chop is to build our brand to a level where we can start selling franchises and offer training and consultancy services in the mobile food truck industry.

b. Where do you intend to expand to and why?

• Bethany, Portland, OR
• Cedar Mill, Portland, OR.
• Oak Hills, Portland, OR
• West Linn, Portland, OR.
• Lake Oswego, Portland, OR
• Camas, Washington
• Stafford, Portland

Our reason for choosing these locations is because trucks flourish in their culinary scene, though in Portland they are called food carts.

At Beta Life Chops, we envisage family succession as our business exit strategy. We strongly believe that this business exit strategy, unlike others, does not require that much involvement of external parties. In addition, it is also one of the easiest and most straightforward options when done right, and we hope to put together a well-detailed plan to ensure success.

More on Food

Mobile Catering Business Plan

The food and beverage industry is a booming business where many successful entrepreneurs thrive. Besides the usual sit-down restaurants and retro-inspired diners, another popular trend has made a lasting mark in the field, which is none other than everyone’s favorite mobile catering. Launching a mobile catering business—be it a food cart, truck, van, or trailer—can be a unique and rewarding business venture for any entrepreneur. You may also see importance of business plan .

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Yet, it can also be a highly challenging process with its own distinctive set of considerations that business owners must take into account before they can officially launch. Like any other endeavor, there’s a lot to take in, and it can often be a bit overwhelming. This is why having a well-defined catering business plan in place is vital to the company’s success.

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Mobile Catering Business Plan Guidelines Example

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Types of Mobile Catering Businesses

Hot dog stands. Ice cream trucks. Mexican food vans. Breakfast trailers. You name it, and you can find them just about anywhere!

Mobile catering is a type of business that involves selling food and/or beverage items from some sort of vehicle. Unlike the traditional street-side restaurants we’re accustomed to, most mobile catering businesses do not have a permanent service location.

Most of these businesses park around busy streets, concert arenas, sports stadiums, schools, parks, or any venue that generates the most traffic. And since the whole point of this type of catering is to transport goods to different consumer bases, having a good vehicle to make your rounds is beneficial in a lot of ways. You may also see annual plan examples .

Here are some of the most common types of mobile catering vehicles that businesses invest on:

1. Food Trucks

Food trucks are considered to be the most preferable vehicle choice of most vendors in the mobile catering industry. This has a lot to do with their wide range of sizes and mobility.

A food truck is to be defined to be a licensed, motorized mobile food unit used to sell a company’s offered items to the general public. The whole concept of a food truck usually varies from city to city. In some places, you can find food trucks with heating units attached to the back of a pickup truck. You may also like company plan examples .

But in other areas, a food truck is basically a delivery truck with a built-in mobile kitchen. These trucks typically carry fully functional kitchens that are specially regulated like any other commercial kitchen. These food trucks are also required to meet certain standards to ensure that the customized vehicle is safe to travel with in between uses. You may also check out how to make a business plan .

The great thing about food trucks is that it’s far more mobile compared to an average food cart or trailer. Drivers can also settle in parking spaces designated for one or two cars, which can be convenient along street-side locations.

2. Food Carts

If you don’t have the money to invest on a food truck, or if you think the size of the vehicle is too large for your own liking, then you could opt for a food cart instead.

Food carts are different from food trucks not just in size, but because of how they do not travel under their own power. These carts are usually towed by another vehicle and are dropped off at a particular location for the time they’re permitted, which can last for a few years or so. You might be interested in catering receipt examples .

Take note that the capacity of a food cart are also limited due to its size. Cooking equipment, ingredients, and other stocks may be difficult to store alongside staff members inside the vehicle. While being smaller in size does have its downsides, if you look at it from a different perspective, it also carries several advantages in terms of cost-effective alternatives. You may also see catering invoice examples .

With less space, powering your cart would require lower costs in propane and electricity. Having a lower power head to operate gives you the opportunity to maintain a lower price range than that of competing mobile businesses.

3. Food Trailers

Similar to food carts, food trailers also require a drive-train system to tow them around. You might have heard about people camping or living in trailer houses, so you can just imagine the amount of space that vendors can maximize inside the vehicle. The size of the trailer allows business owners to install much larger kitchens and storage equipment to cater to a much larger crowd. You may also like examples of catering logo designs .

However, the size and limited mobile capacity of a trailer has its disadvantages as well. Most cities do not allow trailers to park on public streets, which means that owners must only station their vehicle in a static location, or even limit its services toward serving customers at large events, such as music festivals and sports arenas. You may also check out strategic plan examples .

4. Bustaurant

Every heard of a restaurant in a bus?

If you’ve tried eating at a food truck before and thought it was a unique dining experience to remember, then you’re sure to enjoy eating at the newest craze of mobile food catering: the bustaurant.

Rather than standing at a curb to order and eat your food or beverage meals, customers of these eateries are given the option to step on board and eat their meals at special dining tables built inside the bus.

Although the state-of-the-art designs and kitchen equipment is a fresh concept that appeals to many consumers, city ordinances still prohibit kitchen operations to push through while the vehicle is moving. This is to avoid fatal kitchen injuries or accidents from occurring. You might be interested in business plan guidelines examples .

Hence, most of the food served at the restaurant are either prepared off-site or while the bus is parked at a designated location.

Mobile Catering Business Plan Template

Mobile Food Catering Business Plan Example

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Printable Mobile Catering Business Plan Example

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Advantages of the Mobile Catering Business

Is mobile catering really for you?

You may be on the fence with your decision, especially when mobile catering seems like a risky business to invest your capital on. To help you figure out a wiser choice, here are some reasons why the mobile catering business is a good option:

1. Maneuverability

Unlike the average brick-and-mortar businesses you find along the streets and inside of shopping centers or malls, mobile catering covers a wider audience from different demographics. It’s the best solution if you need to get around to different sites or event locations within the day. You may also see how to create a business plan ?

There could be a minor league playing at the local ball park from 10 a.m. to 2 p.m., and a huge rock concert held at Madison Square Garden from 6 p.m. to 2 a.m. In both occasions, you can expect a lot of hungry event-goers hoping to grab a bite from a food stand serving affordable delights.

Operating a mobile catering business is so easy! You drive up a designated location, park, open the hatch of your van or truck, and start serving customers. It’s the quickest and easiest restaurant unit to operate from, leaving you with enough time to do other things as well. You may also like hotel business plan examples .

3. More Opportunities

With the right vehicle unit and mobile vehicle design, grabbing a slot at crowded events would be a lot easier. Visually appealing units often attract more customers thanks to its exterior design.

This is a perfect touch for Instagram-worthy events such as outdoor music festivals and town fares where aesthetics are everything. Some people might not even care about the type of food you serve, as long as they could take a good photo with your van and food items. The amount of exposure generated from these events is also a great form of brand marketing .

4. More Profit

The more work you get, the more profit you receive. These days, a converted vintage van is already considered as a fashion statement that can attract many buyers to your business.

Drawing more people to your mobile business would also raise the demand on your goods. Although most restaurants tend to increase their product prices once they have established a name for themselves, don’t be too quick to jump in on the bandwagon. Price hikes may possibly destroy the reputation of a business among former and current customers.You may also check out market analysis business plan examples .

5. Good Investment

Perhaps your uncle or grandfather owns a vintage van that he doesn’t use anymore. Rather than waiting for the van to rot in your garage and have it sold to the junk shop, converting the van into a mobile catering vehicle is a great investment. You can remodel the whole vehicle and keep some of its key features for a more classic vibe. It’s also a good business opportunity if you feel like leaving the 9-to-5 cycle of a corporate slave. You might be interested in risk plan examples .

Short Mobile Catering Business Plan Example

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Simple Mobile Catering Business Plan Example

Standard Mobile Catering Business Plan Example

How to Launch a Mobile Catering Business

While the thought of operating a mobile catering business can be enticing, the initial process of running a successful catering company demands careful and precise planning on every aspect of the business.

That being said, here are some useful tips to get you started:

1. Prepare a business plan.  

Before you begin, no matter how sure you are about your decisions, always remember the value of planning.

A comprehensive  business plan serves as your road map to success. It should define your company goals, target audience, and market competitors in a clear and concise manner. The outline of your plan must contain everything from your initial start-up budget to your yearly sales as well.

2. Secure legal permits and licenses.

City ordinances and laws will limit the scope of your proposed plans, which is why you need to have these identified and settled before your launch. To do so, research applicable laws in your area regarding food and alcohol distribution, as well as trailer regulations in terms of equipment and catering sites. You would also need to have the necessary licenses and the right insurance in place to operate your business. You may also see  how to do market analysis of a business plan .

3. Set your price list.

Once you have decided on your catering menu , you may want to consult your financial adviser about food markup rates and employee pay. Discuss the types of food you plan to serve, the costs needed to produce that food, and the amount you need to charge in order to make a profit. Remember to have a clear pricing with the inclusion of VAT as per legal regulations.

4. Purchase a transport vehicle and other equipment.

Decide on the type of vehicle you wish to use for your catering business. This will help you determine an efficient layout on the vehicle’s interior and exterior arrangements, along with the equipment and health and safety features that come with it. You do have the option to convert a new or used unit for your vehicle, as long as it meets the legal standards. You may also like business operational plan examples .

5. Hire a staff.

You don’t need a lot of people to manage your daily operations, as a total of two to four staff members would be enough, depending on the number of people that could fit into the van or truck.

6. Look for food suppliers.

If you want to save money and ensure that your customers are served with fresh and high-quality produce at all times, building a relationship with an affordable, yet reliable, food supplier is crucial. Many suppliers offer great discounts for bulk orders, the kind of deals you won’t find at grocery stores or even the farmer’s market. You may also check out business plan outline with examples .

7. Market your business.

The right location plays a huge factor in the success of your business. But considering how fierce the competition can be, you might want to start handing out restaurant flyers and food coupons to draw in customers. You could also develop a website and a social media profile to reach out to a wider audience.

From simple street food to haute cuisine, the mobile catering business covers a wide variety of food and beverage specialties to cater to food-lovers and hungry customers everywhere. So whether you plan on opening an ice cream van, a taco truck, or a mobile hot dog cart around your neighborhood, you should always have a good catering company business plan in place to ensure the success of your new venture.

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How to Start a Food Business: A Step-by-Step Guide

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For many food-lovers, the ultimate dream is to open up their own food business. What many people don’t realize in the beginning is that starting a food business is no easy feat. There’s a lot of business operational skills that are necessary to get started.

But the steps below can help you understand what you'll need to start a food business, and what you should consider before you jump in.

How to start a food business in 9 steps

Step 1: assess your skills.

If you’re reading this article, we can assume that you have a food business idea in mind that you’re interested in starting. That’s great! While interest is the number one step in starting a business, you also need to take a good hard look and assess your skills and assets before jumping into starting a business.

Passion can get you a long way, but when it comes to how to start a food business you’re also going to need hard work and business smarts. While many first-time business owners don’t know everything off the bat, they know how to seek out resources for help when they bump into something they don’t know how to do or don’t understand. That’s a lesson you should learn quickly.

While much of how to start a small food business consists of concrete steps such as choosing your business structure and finding funding, there’s also the soul-searching question: Are you willing and capable to do this?

Before you start, take a moment to write down your strengths, consider your support network, and brainstorm your resources—better yet, research what resources are available to you.

Operating a food business means you’ll need to grapple with:

Hiring and firing employees

Buying from suppliers

Creating a menu

Real estate

Purchasing equipment

And so much more...

With that debate over with, it’s time to talk about the more nitty-gritty, concrete details of how to start a food business.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Step 2: Create a business plan

A business plan can have multi-fold benefits for your small food business. This is a great way to get your thoughts and plans on paper, which can be useful for you to refer back to you during the process of starting and operating your business. A business plan can also be beneficial if you’re looking for funding to start your food business.

SCORE offer great resources to help you write a business plan for your food business. It can seem intimidating to make one, but if you’re researching how to start a food business, it’s likely that you already have a lot of great thoughts to contribute to your plan. Below are a few of the steps you’ll need to take while creating a business plan.

1. Create a business budget

One of the most important parts of your business plan, especially if you’re seeking funding, is the business budget.

A business budget will include looking at all the costs you’ll need to cover to begin operation of your business, what funds you’ll need to operate the business once it’s up and running, and a more long-term look at how your business will make money and how much money you expect to make.

A few examples of the costs you’ll incur and what you need to consider while starting a food business include:

What type of food business you’re starting

Cost of employees and management team

Initial investment in food product

Design for a physical space

2. Study your competitors

As you’re putting together your business plan, you need to start looking at and assessing your competitors. The food industry is very competitive and many markets are saturated. Before you go any further in starting your small food business, you need to know who else is out there and what they’re doing.

As you’re finding your competitors, make sure to be assessing what they do well and where they’re lacking. That will tell you where there’s a hole that you can fill with your business.

This is also a great time to be looking at prices and assessing the cost of doing business and the reality of how much money you’ll be able to make.

3. Find a hole in the market

The ideal situation for starting a food business is to find a hole in the market. Where is there customer desire that no one else is filling? And just because no one is doing it, doesn’t mean there’s customer desire—to turn a profit, customers have to want it and be willing to buy it.

Finding a hole in the market will help you to decide what kind of food you want to sell and how you want to sell it. There are a variety of options to choose from when it comes to how to sell your food including:

Meal delivery

Baked goods sold to other food establishments

In-home food business

Wedding and special event catering

4. Choose a concept

When starting a food business, it’s important to decide what type of food business you want to have. The main options include: a brick-and-mortar restaurant, a food truck, and a home-based catering business.

Each of these options is a viable way to start and operate your business. You might choose to start with one type of operation in the hopes of moving to another one eventually. A food truck and home-based catering business both have complications, but tend to require less capital to get started than a full-fledged brick and mortar restaurant.

Step 3: Set up your business

Once you’ve studied your market, you know where there’s a hole that needs to be filled, and you’ve taken some time to create a business plan, you’re ready to take the first steps toward starting your food business.

1. Choose a business entity

The first step in setting up your food business is to choose a business entity. There are a few different choices and depending on your circumstances, one or the other will be right for your business.

The most common business entity for small food businesses are sole proprietorships, LLCs, and co-ops. Other business entity options includes partnerships, S-corporations, and C-corporations.

Sole proprietorship

One of the most straight-forward business structures available is the sole proprietorship. While a sole proprietorship is simple (and popular among food establishments), it’s also limited in protection. If someone gets sick eating your food and wished to do so, instead of suing your business, they’d have to sue you—and they could go after your personal assets as compensation.

An LLC is one step up from a sole proprietorship. An LLC or limited liability corporation is a legal business entity that separates the business from the owner. An LLC limits a business owner’s personal liability for the business. An LLC also provides businesses with tax efficiency and remains uncomplicated as to ownership structure, so it’s ideal for a food business owner who wants to be somewhat protected, but still have some flexibility when it comes to paying taxes.

Cooperative

A cooperative, which is more commonly known as a co-op, is a business structure that is formed and owned by multiple people. Each member or owner of the business owns a portion of the business. Co-ops are one of the most collaborative business types available and are very common among food operations, especially food production facilities, grocery stores, and farmers markets.

Choosing the right business structure for your future food business can be confusing and initially seem complicated. But, if you start your business and decide you’ve chosen the wrong structure, you can certainly change it. If that sounds like a headache, though, you can consult with a business attorney to help you decide which structure is right for your business.

2. Register your business

If your business is going to employ others, it’s recommended that you register for an EIN, or a federal employee identification number, from the IRS. If you apply online, you can get one in a matter of minutes. An EIN helps you get business loans, manage your taxes, open a business bank account, and more, so this step is highly recommended.

You’ll also probably need to register your business with the state you’re operating in. Rules for how to do this exactly vary by state, and even county, but generally this information can be found on your state’s Secretary of State website. You should do a business name search before registering your business to make sure your desired name isn’t already taken by another business in your area.

3. Register for all required licenses

One of the most important steps in starting a food business is to make sure that you’re legally licensed to prepare and sell food. There are many different certifications and licenses that are necessary for food businesses.

It’s also important to note that what licenses you need will depend upon what type of food establishment your opening, whether or not you’ll be selling alcohol, and where you’re located. Different local jurisdictions can have slightly different requirements for food establishments.

Here are some types of licenses and certifications you might need for your food business:

A food handling permit

A Certificate of Occupancy or CO for your restaurant

A liquor license or beer and wine license to sell alcohol

A food license to make and sell food out of your home

A resale license to be able to buy ingredients at wholesale

No matter what type of food business you’re starting, you’re going to need some permits and licenses. Your local government office should be able to help you figure out exactly which licenses you need for your type of business.

4. Get insurance

As a business that employs workers and has a physical location which hosts customers, you need certain types of insurance to make sure your business is covered in any situation. You might consider:

General liability insurance

Auto insurance for business vehicles

Workers’ compensation

Commercial property insurance

Mobile food vendor insurance

5. Separate your finances

No matter what type of business entity you’ve chosen for your business, it’s important to separate your personal finances from the business finances. This makes figuring out your taxes and expenses much easier.

When you start your small food business, simply start a second bank account for your business. This can be done with the institution you use for your personal banking, but if you want to switch things up, there are some newer banks allow you to open a business checking account online.

And, if you choose to, you can also get a separate credit card that’s used only for business purposes. If you use a business credit card , you’ll be able to build up your business credit (assuming you use it responsible and pay off your bills on time), which can ultimately help you secure a business loan down the line.

Step 4: Look for funding options

When you’re thinking about how to start a food business, one of the major concerns can be the funds you need to get started. The initial investment in a business can be costly and it can take months, even years, before a business is profitable.

To get started, many new food businesses ask for funding from investors, seek out loans, or ask for help from friends and family. Bank loans are one option for funding, though banks typically are hesitant to lend to first-time business owners. There are also alternate lenders you can look into.

1. Equipment loans

An equipment loan is a great option if you need to be expensive equipment for your restaurant or are looking at buying a food truck. An equipment loan is simple: You receive a loan to buy the equipment and the equipment serves as collateral. Meaning if you don’t pay back the loan, the equipment can be repossessed as payment.

This type of loan is easier to get than other types of loans.

2. Friends and family loans

If you’re starting up a food business, who better to get involved and help you out then your friends and family? If you’re saving up to get your business up and running, don’t be afraid to ask for help. Just make sure to write down a loan agreement with your lender and then to stick to it.

3. Line of credit

A line of credit is a fantastic option for someone starting a food business. A line of credit gives you access to a pool of funds. You can borrow from that fund and up to the limit of that fund anytime you need. This is a great option for a business that’s a little cash-strapped for short periods of time.

4. SBA microloan

For food businesses looking to start up a food truck business or for a restaurant that just needs a little extra cash to get going, there’s the SBA microloan. An SBA microloan is a loan of up to $50,000 that the Small Business Administration guarantees. A loan from the SBA is considered the best loan on the market due to its low interest rates and flexible repayment terms.

Step 5: Invest in product and tools

When it comes to how to start a food business, you need more than just cash and business entity to make your dream a reality: You need equipment, food supplies, and something to sell it all on.

1. Research suppliers

One of the most important relationships you form as a food business owner is with your suppliers. Your suppliers are the businesses who make sure you get the food and products you need to keep your business going.

If there’s a restaurant in your area that has closed recently, you might be able to buy their equipment or furnishings for cheap, or take on extra stock they had saved up. Your food can often be sourced locally and trade publications or professional organizations, like the National Restaurant Association, can be helpful.

Find trustworthy, reliable suppliers to make sure you’re always getting your supplies on time and for the best price. Where you source your food from can also be a selling point for your food business, since sustainable companies have become more attractive to customers recently.

2. Point of sale system

A point of sale system, or POS, is the modern version of a cash register. The POS is how your waitstaff takes down orders, charges customers, and receives payment from customers.

There are many restaurant POS systems available on the market that offer enhanced usability for your staff, including:

Square for Restaurants

TouchBistro POS

Lightspeed Restaurant POS

Loyverse POS

Some, like Square, can be great for mobile companies since you only need a card reader to do business if you have a compatible phone or tablet you can use. Others, like TouchBistro, are better for full-service restaurants that might benefit from a POS that also offers tools for customer and floor planning management. The best POS system for you will depend on your food business’s needs.

» MORE: Best POS systems for food trucks

3. Buy or rent necessary supplies

Before your restaurant can open the doors to customers, there are a lot of supplies you need to make sure the restaurant is outfitted to be inviting to customers, serving up good food, and making money for you.

Aside from your POS system, here are some examples of supplies you might need:

Kitchen appliances

Cold storage

Flatware and utensils

Furnishing for the restaurant

Cleaning supplies

Some of these you can buy in bulk, but depending on the mobility of your food business, you might want to consider renting equipment—which might work out cheaper for you. As an example, if you run a catering business, you might not need to own tons of flatware and utensils just yet. Renting on a case-by-case trial will save you money and help you understand what a practical order might be when you’re actually ready to buy.

Step 6: Hire staff

Depending on what type of food business you’re starting, you may or may not need help. But, even the smallest establishment usually hires an extra set of hands to increase production. Who you hire and how many people you hire will all depend upon your needs. For example, a food truck probably can’t fit many employees, but a large-scale restaurant will require more employees to keep the floor running smoothly.

Some examples of staff you might need include: delivery drivers, hosts, waiters, dishwashers, bartenders, and busboys. Make sure you factor hiring staff into your business plan, since you may be required to take on added costs, like purchasing workers compensation, for them.

Step 7: Set your pricing

One of the most important steps in how to start a food business is setting your pricing. Without the right price on your food products, it will be impossible to make money.

1. Do market research

One of the first steps in figuring out what you should charge for certain foods is to do market research. Go to your competitors to see what they’re serving, what their portion sizes are, and how much they’re charging.

This gives you a starting place to assess the right price for food, but it’s only a starting point. While it gives you an idea, it doesn’t give you insight into whether that business is making money or not.

You should also be mindful of emerging food trends and what that says about consumer priorities. For example, the wellness trends in food indicate that your business might do well if there’s a health-conscious market you’re able to tap into and you’re able to sell them on the health benefits of your food products.

2. Price out the cost of your product

While it’s not easy, it is possible to calculate the total cost of a dish. You’ll have to be mindful of all the tiny ingredients that go into a dish, including oil, seasonings, and garnishes. This can seem like a lot, but there are actually a number of formulas and measurements professional kitchens use to determine these figures, so be sure to study up.

Then, with a little magic and math, you’ll be able to price your product accordingly, so that you make a small profit from it, even when including the cost of labor to make, serve, and clean up the dish.

Step 8: Create an online presence

While you might think that a food business is all about food—and it is—you also need to get customers in the door and eating your food. The food industry is notoriously difficult to break into. For example, 85% of consumer packaged goods products fail within the first two years. One important step to avoiding that fate is establishing your online presence and nurturing your consumer base.

1. Social media

While food is all about the taste, many diners shop with their eyes. If you want to establish an online presence for your food business, one of the fastest ways to do that is through social media.

Instagram is a food business’s best friend. Post delicious-looking pictures of your food and customers will want to try it. Make sure you interact with consumers and encourage them to see you as a company that will be responsive to their needs.

While not every food business has a website, this can be a way to establish your credibility as a business. A website can be a place to post information for customers including menus, restaurant hours, and specials. There are a number of ways to build your small food business website, so it’s easier than ever to either sell products online or add helpful features like reservation widgets to your site.

3. Online review sites

While many a food business owner loathes review sites, it’s a necessary evil for those who have restaurants, catering businesses, and food trucks. According to a TripAdvisor survey, 94% of U.S. diners will consult online reviews before trying a restaurant. That’s the vast majority of diners. As a food business owner, you can hate the sites as much as you want, but you need to have a presence. Try offering a free perk to incentivize customers to leave reviews.

Step 9: Serve up delicious foods

When you’re thinking about how to start a small food business, the big draw is, obviously, the food. What you’ll cook, how it will taste to the diners, and what seasonal changes you’ll make to the menu. Owning a food business is only partly about the food, though—there’s also a ton of time spent on operating and managing the business. Study up to ensure success.

But, make sure you’re just as dedicated to serving up delicious foods!

Start Your Dream Business

Final thoughts

There are a wide array of food businesses you can start and competition will be tough. To help you get a leg up, make sure you consult these nine steps for starting a food business. If you pay attention to foundational steps, like creating a solid business plan and registering for all licenses you might need, you’ll put yourself in a good place for your food business to grow. So, refine that menu and get ready to feed the masses. With a little elbow grease and planning, there’s nothing you can’t do.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

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Food and beverage industry overview

The food and beverage industry includes all businesses involved in the production, distribution, and sale of food and drinks.

The global food and drink market is expected to grow at an annual rate of 11.9%, reaching a market volume of $3.8 billion by 2027. This increase sharply contrasts the declining industry performance over the last three years.

Contributing factors to this performance are:

• Expected ease of inflation over the next year.
• Continued innovation in beverage and grab-and-go options.
• Increased interest in health-conscious options.
• Lifestyle changes as consumers increase travel and return to the office.

Additionally, the increased adoption of app-based and eCommerce purchasing options will continue to fuel discretionary spending in this category. Portable eating, tech-based purchasing, and alternative health and wellness products or services all show great promise for new entrants.

How to start a food and beverage business

To start a food and beverage business, you need to focus on the following:

1. Identify an idea that meets current demand

Identify your target market and potential competitors. Then, develop a unique product or service that serves a specific need—such as a particular cuisine, dietary need, or a unique dining experience.

2. Write a business plan

Create a business plan that thoroughly explains your business model, operations, pricing strategy, and financial projections.

3. Handle health, safety, hygiene and legal compliance

Food and beverage is a highly regulated industry with additional legal, health, and safety requirements. You must develop strict health and safety standards, prepare a staff training plan, and apply for permits or licenses relevant to your food or beverage offering.

4. Operations and relationships with suppliers

Establish relationships with reliable suppliers to acquire consistent quality ingredients. Focus on implementing an effective inventory management system that helps minimize waste and unnecessary expenses.

5. Location, layout, and staffing

Purchasing behavior and workflows are rooted in your business location and how your business is presented. Carefully choose a location and layout that fits your customers’ expectations and provides a healthy working environment for your employees.

Then, focus on training to ensure quality service, adherence to safety protocols, and the representation of your brand values.

6. Startup costs and financial management

Hefty upfront investments can be needed to start a food and beverage business. Kitchen equipment, menus, signage, POS systems, and mobile ordering technology scratches the surface.

You’ll likely be operating on thin margins, making effective financial planning necessary early on. Take direct inventory of what it will cost to start and run your business for the first year. Consider if you need funding and put a system in place to forecast and review your performance regularly.

7. Marketing and branding

You will have plenty of competition as a food and beverage business. Every restaurant, big brand, delivery service, grocery store, and mini-mart is a potential alternative.

So, don’t sleep on your branding and marketing efforts. Remember your target market, choose the proper channels, and develop a memorable visual identity that fits your mission.

For more on starting a business, check out our full selection of startup resources.

How to write a business plan for a food and beverage business

Here are some specific sections and information to focus on when writing a business plan for a food, beverage, or restaurant business.

Market analysis

The food and beverage industry is a highly competitive market with established competition and a steady influx of new entrants. Thoroughly document who you will be competing with, how you are different, and your ideal customers. This information will influence everything else about your business.

Business model

You’ll notice a trend through the rest of these, but you need a detailed description of how you will make money. As mentioned before, food and beverage businesses often operate on incredibly thin margins.

You need to be sure that your revenue streams make sense for the market, can consistently bring in cash, and will be sustainable long-term.

Menu and product offerings

Specific to this industry, you must cover what you offer and provide a sample menu or product list. It should directly relate to the interest of your clientele and showcase what you offer.

Describe your location, including a layout of your store or restaurant and details for how your business will operate—how you will work with suppliers, specific workflows, equipment needs, and staffing.

Focus on demonstrating quality and efficiency when outlining your operations, and don’t forget to revisit it as you run your business.

Financial projections

Provide detailed financial projections to map out your revenue and expenses. At a minimum, cover startup costs, break-even analysis, profit and loss forecasts, and cash flow statements.

Include any assumptions behind your projections and map out funding needs if you intend to pursue a loan or other investment.

You can use any of our food, beverage, or restaurant sample plans to ensure you cover the right information in your plan. For a detailed overview, check out our complete business plan outline.

What is an example of a food and beverage business?

Food, beverage, and restaurant businesses include:

• Agriculture and food production
• Food processing and packaging
• Alcoholic and non-alcoholic beverage production
• Restaurants
• Food transportation services

The quickest way to turn a business idea into a business plan

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Money latest: Interest rate cut blow as inflation drops less than expected

UK inflation dropped to 2.3% in April - down from 3.2% in March. This was less than expected - and the chances of a June interest rate cut are judged to have fallen. Read this and the rest of today's consumer and personal finance news - and leave a comment - below.

Wednesday 22 May 2024 09:39, UK

• Inflation falls to 2.3% - down from 3.2% in March
• Markets now not expecting interest rate cut in June
• Sunak: Today marks major moment for economy as inflation back to normal
• Ian King analysis : Do Sunak and Hunt deserve any credit at all for bringing down inflation?
• What is inflation?

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Let's start with the good news. After nearly three years in which inflation was well above the Bank of England's 2% target, it is finally back into what might be considered "normal" levels.

Inflation is the rate at which prices are changing over the past year, and that annual rate dropped from 3.2% in March to 2.3% in April. But while it's down into "normal" territory, there are a few reasons for caution.

The first is that actually the annual rate was expected to fall even further: the consensus forecast among economists was for it to drop to 2.1%. The second is that when you peer through the numbers, they look considerably more inflationary than you might have expected.

Core inflation - which is what you get when you strip out volatile items like food and energy, is still rising by 3.9%, which was not just higher than the overall rate, but considerably higher than economists expected. Even more worryingly, as far as economists are concerned, was the fact that services inflation - which measures the changes in prices of everything from haircuts to legal services - barely fell at all, dropping from 6% to 5.9%. Economists had expected that number to be down at 5.4%.

All of which is to say, while the overall fall in the big number is reassuring, there is quite a lot in there which is not. Indeed, in financial markets, where investors are constantly betting on the likelihood of interest rate changes, there was an instant reaction. While, in the minutes before the inflation data was released, investors were putting a 50% probability on the Bank of England cutting interest rates at its next meeting in June, that probability dropped to just 14% after the inflation data.

But there's a deeper reason to be wary of declaring "mission accomplished" on the cost of living crisis today, which is that for most people, the crisis doesn't yet feel over in the slightest.

The thing to remember here is that inflation typically just measures the changes in prices over the past year. And over the past year specifically, prices are indeed up by only 2.3%. In large part that's because energy prices fell over that period.

However, as we all know, while energy prices might have fallen in the past year, they are still way higher than they were a few years ago. The same goes for overall prices. Indeed, look at the difference between price levels today and mid-2021, the beginning of the period of higher-than-normal inflation, and they're up by a whopping 20.5 per cent. 

Now, much of that is the consequence of higher energy prices following Russia's invasion of Ukraine. But the point is that we've had a step shift here. It's not as if prices have gone down, and while wages are now rising more rapidly than inflation, they haven't kept pace with prices - meaning we are all worse off.

Still, inflation is now back to normal levels. The Bank of England is still expected to cut interest rates - albeit not as quickly as previously anticipated. And the economy is out of recession. Things are getting better. But we're not quite out of the woods yet.

We're now hearing from Chancellor Jeremy Hunt, who is asked whether government policies have helped keep inflation above the 2% target.

Mr Hunt said his two cuts to National Insurance were not "slightly inflationary", as the Bank of England previously suggested.

He said the Independent Office for Budget Responsibility had said the "impact was not inflationary".

Inflation falling less than expected in April - to 2.3% rather than 2.1% - has set back expectations for a June interest rate cut, with August now looking more likely.

Mr Hunt emphasised the Bank's previous confidence that we're entering a cutting phase.

"The precise timing is obviously something that we will all have to wait for," he told Burley, adding: "[Inflation is] very close to its target level now, it's returned to much more normal levels.

"And the Bank of England who decide these things independently, once they're confident that they have reached their target level and it's going to stay there, they can bring down interest rates.

"That's obviously good news for mortgage holders.

"But I think families will still be feeling quite bruised after the last couple of years, because although the inflation rate has gone down, prices are still higher than they were a year ago."

Mr Hunt also pointed to remarks by the International Monetary Fund yesterday, which said the UK's economy is due to grow faster than the likes of France in the next six years.

Inflation has fallen sharply in the UK - so how does it compare to other countries? 

The headline rate is now lower than the US, France, Germany and the Eurozone - but only slightly. 

Unlike the other comparable countries, Germany saw its inflation figure rise in April to 2.4%, up from 2.3% in March. 

Inflation has dropped to its lowest level since July 2021 - and there have been many contributing factors. 

According to the Office for National Statistics, housing and household services, particularly gas and electricity, were the biggest downward contributor. 

Alcohol and tobacco, food and non-alcoholic beverages, recreation and culture, and communication, also had a big impact - with price rises slowing.

However, there were some upward contributions as well, which stopped inflation edging even closing to the Bank of England's 2% target. 

These came from restaurants and hotels, and miscellaneous goods and services.

Inflation falling doesn't mean prices are going down - just that they're rising less quickly.

Markets had judged it pretty much 50/50 on whether the base rate would be cut in June - but those expectations have now fallen back.

Markets are pricing in an 84% chance of no change in the Bank of England's 20 June meeting.

An August cut is now seen as more likely.

The base rate stands at 5.25% - its highest level for 16 years.

The Bank has indicated it will only start cutting when it is clear inflation has reached, and can stay around, the target 2% figure.

Rates are kept high in order to tame inflation by squeezing the economy.

Our  data and economics editor Ed Conway has been analysing the latest inflation data released by the Office for National Statistics. 

He says while the 2.3% figure is down "sharply" from 3.2% in March, it's not as low as economists predicted. 

Some had thought it might come down to 2%, while the Bank of England had expected it to land at 2.1%. 

Conway says it's good news the figure is lower than it has been since July 2021, but 2.3% might not be enough to prompt a June base rate cut.

"There have been a lot of people out there thinking that maybe they are going to cut interest rates down from 5.25% as soon as next month," he explains. 

"This figure to me suggests they may hold on for a little bit longer, maybe they'll wait until August." 

He says the government will want to present the inflation figure as evidence the UK is going back to a "period of normality", but the key question is "do people feel better off now?"

He says people are still paying around 20% more than they were a couple of years ago.

Rishi Sunak says inflation is now back to normal - hailing it as a major moment for the economy.

"Today marks a major moment for the economy, with inflation back to normal," said the PM.

"This is proof that the plan is working and that the difficult decisions we have taken are paying off. 

"Brighter days are ahead, but only if we stick to the plan to improve economic security and opportunity for everyone."

See our 7.06 post for Ian King's explanation of why the government's "plan" is arguably not the reason for the inflation drop.

And shadow chancellor Rachel Reeves says these figures are not the time for ministers to be "taking a victory lap".

She said: "Inflation has fallen, but now is not the time for Conservative ministers to be popping champagne corks and taking a victory lap.

"After 14 years of Conservative chaos families are worse off. Prices in the shops have soared, mortgage bills have risen and taxes are at a 70-year high. Rishi Sunak is now putting family finances at risk again with his £46bn unfunded policy to abolish national insurance that will mean higher borrowing, higher taxes or the end of the state pension as we know it.

"It's time for change. Labour's first steps will deliver economic stability so we can grow our economy and keep taxes, inflation and mortgages as low as possible."

Commenting on today's inflation data for April, ONS chief economist Grant Fitzner said: "There was another large fall in annual inflation led by lower electricity and gas prices, due to the reduction in the Ofgem energy price cap .

" Tobacco prices also helped pull down the rate, with no duty changes announced in the budget. 

"Meanwhile, food price inflation saw further falls over the year. These falls were partially offset by a small uptick in petrol prices .

"The prices of goods leaving factories have risen a little over the last year. Meanwhile, the prices of raw materials and fuels grew in the last month, though they remain below where they were a year ago."

Core inflation - which strips out volatile elements and is seen as a better measure of the economy - also fell in April, but less than expected.

This is a key figure the Bank of England looks at when setting interest rates.

It came in at 3.9% - down from 4.2% in March.

However, it was expected to fall to 3.6%.

Core inflation doesn't include measures such as food and energy price rises.

From its 40-year high of 11.1% in October 2022, the headline rate of inflation – the consumer prices index (CPI) – is back within touching distance of the Bank of England's 2% target rate.

The government, naturally, will seek to take credit for it. Rishi Sunak, after all, promised to halve inflation last year and was quick to point to that when it happened.

It was a piece of chutzpah that brought to mind the old saying "success has many fathers, but failure is an orphan".

If anyone deserves credit for bringing down inflation to the target rate, it is arguably the Bank of England, whose interest rate rises from December 2021 to August last year bore down on demand and on some of the inflationary pressures that can build in an economy when demand is too high.

In so far as the government can take credit for bringing down inflation, it is because - since the debacle of Liz Truss's short spell in 10 Downing Street - Rishi Sunak and Jeremy Hunt have restored order to the public finances, calming the panic in markets which erupted when Ms Truss sought to introduce £45billion worth of unfunded tax cuts . 

From the depths it plumbed after the mini-budget in September 2022, sterling has rallied by 22% against the US dollar and by 8% against the euro.

All things being equal, that has brought down the cost of goods and services that the UK buys from the US and from countries in the Eurozone, which may at the margins have had an impact on inflation.

In other ways, though, government policies have helped push up inflation. Public sector pay between January and March, the latest period for which figures are available, was up 6.3% year-on-year. That obviously feeds into higher prices. 

The government has also just raised the national living wage by 9.8%, the biggest increase in history, which again will feed into higher prices, particularly in sectors such as hospitality. The chancellor has also actively increased inflation by raising taxes on tobacco, as he did last year.

So the government cannot really take that much of the credit for inflation falling to target.

The Bank's Monetary Policy Committee deserves more. So, too, do some of the UK's retailers. The latest figures published by the British Retail Consortium suggest Shop Price Inflation was running at an annual rate of just 0.8% in April - down from 1.3% in March. In other words, by bearing down on prices, retailers are contributing strongly to the decline in inflation. The market is competitive and consumers are benefiting.

In truth, though, most of the heavy lifting in bringing down inflation has come from so-called "base effects" – the impact of the corresponding "base" the previous year.

To use a real life example from the Office for National Statistics, meat prices fell by 0.5% between February and March this year, compared with a rise of 1.4% between those months last year. That resulted in an annual rate of inflation in meat prices of 3.1% in the year to March 2024, which was the lowest rate since November 2021.

Prices can still be rising, but contribute to a lower headline rate of inflation. If the price of an item in the inflation basket was rising by 10% in April last year but was only rising by 5% in April this year, that automatically feeds through to a lower headline rate of inflation.

That can be seen with today's figures: the cut in the household energy price cap introduced by Ofgem in April this year was a major contributor to lower inflation.

Inflation took off in 2022 mainly because of Russia's invasion of Ukraine, which pushed up the price of oil and – thanks to Ukraine's position as one of the world's biggest exporters of corn, seed oils, wheat and rapeseed – a whole clutch of foodstuffs.

It had another boost when, at the end of 2022 and beginning of 2023, China suddenly relaxed its COVID restrictions – unleashing a big burst of demand from the world's second-largest economy for commodities like oil. That pushed up prices elsewhere.

Some of the biggest elements in the UK inflation basket - food and non-alcoholic drinks, clothing and footwear, furniture and household goods – are not rising in price to the extent that they were a year ago and certainly not to the extent they were in the autumn of 2022.

That is the main reason inflation has come back down to the Bank's target rate.

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