If you have been following some of the world disasters news- especially as it concerns some countries where innocent victims are being displaced as a result of wars, and bombings, then you will find that one of the core relief materials that some mighty world bodies send there is food.
This is because food is as essential to life, as the clothes that we wear. It is a result of this that there are a thousand and one folks who daily start food business. Whether it is cooked food or the raw and freshly processes ones, the truth is that food sure provides some sense of life to the consumer.
Over the years, we have come to see different food business spring up. There is the food restaurant business, the food processing business, the food truck business, the food farming business, amongst many others. However, we want to look at the food truck business here.
Food truck businesses, over the decades just like other line of trades, have continued to welcome newbies into the profession. Meals like; local and intercontinental delicacies are being whipped up and it is important to add that it is indeed one trade that assures profit.
Commencing this type of business on the right footing should not be looked down upon. This is why those who have started the business before you and have made it really big knew that drawing up a business plan would be one of the best things to embark on.
So, it is now widely given that starting your business with a well-drawn out business plan, is what starting your business on the right foothold all is about. On the other hand, it is no longer news that business consultants may only prefer to charge cut throat prices for the service of writing a business plan.
Consequently, if you are like many who have no inkling about how to write a business plan, then you just might want to save yourself some good bucks by finding respite with a sample food truck business plan as provided below. This means that you can use the business plan template provided below to work out how your own business intends to thrive, as well as project for the future.
A FREE Sample Food Truck Business Plan Template
- Food Truck Business Overview
Food truck business can simply be classified as a restaurant on the go (mobile restaurant). Food truck is essentially a large truck that is equipped with the necessary gadgets to cook and conveniently sell food. It is a business venture that has come to stay; a business that is gaining momentum as the years roll by.
It has been estimated that truck food business serves about 2.5 Billion people daily worldwide (according to Wikipedia). The food truck business is a thriving business in some parts of the United States of America, Asian continents, Australia, United Kingdom, Canada, France, Belgium, Germany and Mexico et al.
Recent research and statistics rolled out by a Los Angeles-based industry-research firm called IBIS World, stated in their report that the street-food business which include mobile food trucks and non – mechanized carts rakes in about a $1 billion yearly. They went onward to state that the industry has experienced an 8.4 percent growth rate from 2007 to 2012.
One good thing about the food truck business is that it is far cheaper to start and operate when compared to the usual restaurant business with a fixed location. As a matter of fact, 78 percent of those who operate food truck business have four or fewer employees under their payroll.
For those who want to really make it big in the business, their best bet is to acquire larger trucks that can conveniently carry more foods and also accommodate more clients – the bigger your truck, the larger the quantity and variety of foods you can carry per time.
The only challenge you are likely going to face when you make use of a large food truck might be; sourcing for ideal space to park the truck in order to sell food to your customers and also a parking lot for the truck when you are off duty.
Basically, we have two types of food trucks. One of them is the mobile food preparation vehicle (MFPV). It is a truck where food is prepared based on customer’s need whilst they wait. Usually, these customers do not have to wait for a very longtime before getting their orders. The second one is called the industrial catering vehicle (ICV). The industrial catering vehicle sell only prepackaged foods – as customers pay, they get their food immediately without any form of delay.
Typically, the mobile food preparation vehicle (MFPV) is far more expensive when compared to the industrial catering vehicle (ICV). The average cost of a brand new retrofitted food truck with all the required gadget is about $120,000 and a fairly used one can cost as much as $35,000 depending on the condition at the point of sale. A fairly used hotdog cart may likely cost $2,500, or lower.
In essence, the smaller the truck and the fewer the equipment in it; the lower the cost. In case you have a food truck that is not well equipped, you will just have to create an option of cooking your food in a kitchen before transferring them inside the truck.
No doubt the truck food business industry is regulated by key agencies to ensure that they meet the required food, drinks and drugs standard of the state where they operate. Complying with health-department rules and regulations is a must, especially if you want to legally and successfully run this type of business.
Usually in the United States, food trucks that are in active use are inspected at least once a year by a health department inspector, and most often they do it randomly. The inspectors check to see how food is prepared and how they are stored so that it does not spoil and that it is kept at the proper temperature.
Over and above, the truck food business is the way to go, if you don’t want to bother yourself with the cost of securing a location to build a restaurant, as well as if you want to make fast money from the restaurant cum food industry.
A FREE Sample Food Truck Business Plan Template – MARKET ANALYSIS
- Market Trends
In this dispensation more than ever before, people no longer have sufficient time to do all they would want to do within the available 24 hours. Hence, the rise of fast food restaurants all over the cities. As such, mobile food truck business is another business that is designed to fit into a dispensation like ours. Part of the marketing and sales strategies that we shall adopt include but not limited to the following;
- Submit proposals to event management companies to become their official mobile food vendor
- Submit proposals to management of public facility (sport centers, beach and schools, et al) to become their official mobile food vendor
- Send proposals to schools and corporate organizations to become their official mobile food vendor
- Sponsor relevant events, such as cooking competitions, and cultural events, et al.
Our Target Market
When it comes to mobile food truck business, there are no restrictions to the market you can explore, as long as you are operating within the law of the state where you are conducting your business. We do not intend to place any limit to the scope of our target market and these are the places / locations where we intend operating our mobile food truck business with the aim of maximizing sales;
- Construction sites
- Tourism locations
- University Campuses
- Carnival ground
- Stadiums and sport centers
- Community Outdoor Events
- Blue Collar work locations
- Farmers Markets
- Industrial Parks
- Movie Recording Location
- Farmers Market
- Military Bases
- Office Complexes
- Mechanic Villages
- Open air shows and programs
Sample Food Truck Business Plan Template – Competitive Advantage
Loads of factors count towards our advantage as a mobile food truck business operator. The fact that we have the ability to determine where we want to sell our foods and drinks per time gives us the leverage to make as much sales as we can make in a day.
It has been observed that any organization that offers training and consultancy services is always amongst the leaders in their industry and we at On The Track® Mobile Food Company are set to tow along this part because we want to become experts and amongst the leading mobile food truck company in the whole of the US and Canada.
We have put plans in place to facilitate continuous improvement on what we do, because we know that is one of the factors that will be give us competitive advantage in the market place. Another competitive advantage that we have as a company is the size and condition of or food truck.
We have been able to purchase a brand new retrofitted food truck with all the required gadget. It is big enough to accommodate all that we would need for the business, we are going to spend less on maintenance and we can easily obtain approval from the appropriate authorities.
Sample Food Truck Business Plan Template – SALES AND MARKETING STRATEGY
Food truck business is one business that requires little adjustment on the field to be able to turn low sales into great sales. For instance; if you are in a location where the sale is very slow, you can decide to change location and move to a place where you feel you can generate more income and sell more of your foods. It is just a matter of driving to the location. There are several ways that we intend adopting to promote our mobile food truck business and here are some of them;
- Through Direct Marketing
- Submitting proposals and biding for contracts
- Sales Reps
- Online Marketing (via our official website, social media platforms and blog et al)
- Revenue Sharing Business Partners (Networking with Event Planners, Facility managers and Business Contractors et al)
Our Pricing Strategy
Generally food truck business sells meals, and snacks at a cheaper rate when compared to the conventional fixed – restaurant. We don’t have any plans to sell our foods, snacks and drinks beyond the prices that is obtainable in the industry.
That does not mean that we will fall below standard when it comes to the quality of our food. As a matter of fact, one of our strongest selling points will be the taste and perhaps the quantity of our foods when compared to our competitors.
From our market survey and feasibility studies, we are sure going to make reasonable profits even when we sell a little below the average price for package foods and snacks in the food truck industry, especially if the location we intend selling our foods and drinks is not far away from our base.
- Payment Options
Our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available to customers when they patronize us;
- Payment by cash
- Payment via Point of Sale (POS) Machine
- Payment via online bank transfer (preferably for those who would need our consultancy services, training or purchase our franchise)
- Payment via check (preferably for those who would need our consultancy services, training or purchase our franchise)
- Payment via Mobile money
Generating Funding / Startup Capital for On The Track® Mobile Food Company
We don’t have the intention of bringing business partners outside the family to invest in the business, at least for the first 5 years of running the business that is why we have restricted raising our startup capital to;
- Generate part of the start – up capital from my savings
- Source for soft loans from family members and friends
- Obtaining loan from the bank
N.B: We have been able to generate well over 60 percent of the money we would need to kick start the business and most of the gadgets that we purchased are based on installment payment for a period of time. As regards our brand new retrofitted food truck we have the arrangement to spread the payment for a period of 48 months.
Sample Food Truck Business Plan Template – Sustainability and Expansion Strategy
The joy of any business owner is to see the business grow to become as big as possible in their industry. But the truth is that for a business to experience growth, the business must be self-sustained. At On The Track® Mobile Food Company, our major goal and aspiration is to build a world class mobile food truck business from just one food truck in the city of Los Angeles to fleets of trucks in major cities in the US and Canada.
In order to sustain the business, we have been able to create channels that will help us access multiple streams of income within the same food industry. We are aware that in the bid of pursuing business expansion, we might lose focus which is why all what we intend to do with the business revolve around our core business offering.
Check List / Milestone
- Culinary Training Plan : Completed
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Obtaining a Commercial Vehicle Operator’s Registration for the truck: Completed
- Obtaining a food handler certificate
- Obtaining appropriate driver’s licenses for the driver: Completed
- Obtaining permits for each municipality we intend to operate our business : In Progress
- Purchase of business and liability insurance for the Business: Completed
- Renting and furnishing our office facility: completed
- Conducting Feasibility Studies: Completed
- Generating capital from family members and friends: Completed
- Applications for Loan: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: Completed
- Design of The Company’s Logo: Completed
- Graphic Designs (on the body of the truck) and Printing of Marketing / Promotional Materials: In Progress
- Recruitment of chef and other key employees: In Progress
- Purchase of the needed food truck: Completed
- Purchase of Kitchen Utensils, plates, cups, cutleries, and other accessories:Completed
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and in the neighborhood: In Progress
- Health and Safety and Fire Safety Arrangement: Completed
- Compilation of foods, snacks and drinks on our menu list: Completed
- Design and preparation of our training modules: Completed
- Establishing business relationship with vendors – suppliers of raw food ingredient and drinks: Completed
- Proof of ownership, proper identification and license (of the vehicle): Completed
- Proof of District-issued Food Manager Identification Card: Completed
- Food-purchase record storage and record keeping software: Completed
- Copy of license for the service support facility and/or a recent inspection report:Completed
-See more: http://www.profitableventure.com/food-truck-business-plan/