How to write a food truck business plan

Getting your own food truck business off the ground requires a business plan. Here is a food truck business plan template that includes the important elements you need to include in your business plan.

Food trucks have become increasingly popular in recent years, as people are drawn to their convenience and affordability. Starting a food truck business can be a great way to get into the food industry without the high upfront costs of opening a traditional restaurant.

However, it’s important to note that food trucks are still a significant investment. The cost of a new food truck can range from $5,000 to over $100,000, and there are many other expenses associated with starting a food truck business, such as permits, insurance, and inventory.

That’s why it’s essential to have a well-written business plan in place before you launch your food truck business. This document will help you to map out your goals, identify your target market, and develop a strategy for success.

As a business plan writer and consultant,I have helped over 5,000 entrepreneurs create business plans to start and grow their food truck businesses.If this is your first time writing a business plan,we’ll provide a step-by-step guide on how to write a food truck business plan. We’ll also cover some of the key elements that you should include in your plan.

What makes a good food truck business plan?

A good food truck business plan is your roadmap to success. It helps you clarify your goals, identify your target market, and develop a strategy to turn your passion into a profitable business.

Food Truck Business Plan Template PDF and Word

Download our food truck business plan template in PDF and Word here.

How to write a food truck business plan step by step

1. Executive summary

Your executive summary is a concise overview of your business plan. Aim for one or two pages, as anything longer is likely to be ignored.To make a good first impression with your executive summary, be concise and interesting, without getting bogged down in the details.

Essential Elements of a Food Truck Business Plan Executive Summary

For example, if you plan to launch “Bite on Wheels” in downtown Los Angeles, your executive summary could begin like this:

Bite on Wheels is a gourmet food truck that will be located in the heart of downtown Los Angeles. Our mission is to bring high-quality, locally-sourced, and globally-inspired cuisine to the bustling urban food scene. With a focus on sustainability and convenience, we aim to provide a memorable dining experience to the busy professionals and food enthusiasts of Los Angeles. We anticipate revenue growth of 15% in the first year, aiming to become a staple in the downtown culinary landscape.

2. Company Description

In this section of your food truck business plan, provide a detailed description of your company. Explain what type of food you serve, your target market, and your competitive advantage. Also, discuss how your food truck business will be a valuable addition to the existing market.

Essential Elements of a Food Truck Business Plan Company Description

For example, you can describe your company description as follows:

At Bite on Wheels, our concept revolves around fusion cuisine with a focus on Mexican and Mediterranean flavors. Our branding combines vibrant colors and bold design elements that mirror the energetic spirit of downtown Los Angeles. Our USP is our ‘Build Your Bite’ concept, allowing customers to customize their own dishes from a variety of fresh and savory ingredients. The idea for our food truck was born from a shared passion for culinary adventures and a love for creating unique, flavorful dishes that delight the senses.

3.Market Analysis

Understanding your market is the meat and potatoes of your food truck business plan. Here, you will dig into the details of your target audience, competition, and industry trends.The market analysis section of your food truck business plan is where you will explain how your business will fit into the existing market. This section should include your findings from extensive research on the food truck industry and your target market.

Evaluating Food Truck Marketing Strategies as Part of the Business Plan

For instance, you might describe the market in this way:

Los Angeles is a bustling urban center with a diverse population and a thriving food scene. Our target market includes professionals, students, and tourists looking for quick, affordable, and gourmet food options during their busy schedules. We face competition from a variety of food trucks and nearby brick-and-mortar restaurants, but our commitment to using local, organic ingredients and our innovative menu sets us apart. With the food truck industry experiencing double-digit growth annually, we see tremendous potential for success in this vibrant market.

Want to Hire Someone to Write a Business Plan?

It will be helpful to have someone else write your business plan, as they can take a more objective approach and stick with the facts.

4. Organization and Management

Food truck enterprises typically have straightforward structures, often with just one or two owners, and they are commonly organized as limited liability companies (LLCs).

Details Regarding Food Truck Ownership

What type of business entity will your food truck be? This could be a sole proprietorship, partnership, LLC, or corporation.
Who are the owners of the food truck business? What is their full name and percentage of ownership?
What type of ownership do the owners have in the business? This could be common stock, preferred stock, or general partnership interest.
If the food truck business is incorporated, what is the total number of shares outstanding and the type of stock that each owner holds?

5. Service or Product Line

Elaborate on the specifics of your products or services. Discuss their features, benefits, and how they address customer needs.If applicable, explain the development process and any intellectual property.

Description of Food Truck Menu for Inclusion in the Business Plan

6.Marketing and sales

Marketing is the sauce that brings customers to your food truck. This section outlines your plans for promotion and customer acquisition.

Queries Regarding Marketing and Sales for the Food Truck

For example, you can describe your marketing strategy as follows:

We will leverage the power of social media to create a strong online presence. Regular posts on platforms like Instagram, Facebook, and Twitter will showcase our mouthwatering dishes and engage with our audience. We’ll run ‘Taco Tuesdays’ and ‘Mediterranean Mondays’ campaigns, offering discounts on selected menu items. Additionally, we’ll implement a loyalty program where customers receive a free item after a certain number of visits, encouraging repeat business.

Free: Business Plan Examples

Do you need help creating a business plan? Check out these six free, proven business plan examples from different industries to help you write your own.

7. Funding Request

In this section, you detail the amount of capital you need to launch and operate your food truck.

Food Truck Funding Plan

8. Financial Projections

The financial plan may be the most critical component of your business plan. It’s where you determine the precise requirements for your business to succeed and enable you to earn a livelihood.

Projecting Sales for Your Food Truck Venture

Once you have a forecast for your sales, you need to calculate your cost of goods. This is the amount of money you spend on food and supplies to serve your meals. Subtracting your cost of goods from your sales will give you your gross margin. This is a key metric that measures the profitability of your business.

A positive gross margin is a good start, but it’s important to remember that there are other expenses to consider, such as labor costs, rent, and marketing. You’ll need to make sure that your revenue is high enough to cover all of your expenses and generate a profit.

9. Appendix

While not mandatory in every food truck business plan, the appendix section serves as a valuable space to incorporate information that didn’t find a place elsewhere, encompassing product images, construction permits, and letters of recommendation.

FAQs

What is the best food truck business to start?

Consider a gourmet burger food truck, crafting unique creations with premium ingredients. Alternatively, explore authentic Mexican street food with tacos, burritos, and fresh salsas. Another option is to delve into Japanese cuisine, serving sushi rolls, sashimi, and visually appealing dishes.

What is a good budget for food truck marketing?

A good budget for food truck marketing typically ranges from $5,000 to $10,000 per year, but it can vary based on specific marketing strategies and goals.

What sells most in a food truck?

Gourmet Burgers.
Tacos.
Korean BBQ.
Grilled Cheese. Sandwiches.
Authentic BBQ Ribs.

What kind of food trucks are most successful?

The most successful food trucks often offer unique and high-quality cuisine, cater to local tastes, and provide excellent customer service. Adapting to trends like vegan options and sustainability can also boost success.

What is the business case for food?

The business case for food revolves around its universal demand, offering a wide range of opportunities in various niches such as restaurants, catering, and food trucks. Success hinges on quality, innovation, and understanding local tastes.

Who is your target market for a food truck?

Prior to developing an effective food truck marketing strategy, it’s essential to have a clear understanding of the intended audience. In this context, the billion-dollar food truck industry primarily caters to middle-class millennials.