Food Truck Business Plan sample
Are you passionate about bringing delicious bites to the masses? Are you ready to turn your love for food into a thriving mobile venture? Look no further—you’ve arrived at the hub of innovation for the food truck industry.
We understand that the recipe for success in the food truck business involves more than just exceptional cuisine; it requires a well-crafted and strategic plan. As aspiring or established culinary entrepreneurs, you know that a robust business plan is the roadmap to turning your food truck dreams into reality.
In this section, we present a comprehensive guide to the foundation of your mobile culinary empire: the Food Truck Business Plan. Whether you’re seeking a food truck business plan example, a sample in PDF format, or a detailed template to kickstart your journey, we’ve got you covered. Our meticulously curated content encompasses key insights, strategic frameworks, and actionable steps to set your business on the path to success.
Explore our free food truck business plan resources, including a downloadable sample food truck business plan in PDF format. Equip yourself with the knowledge and tools needed to navigate the challenges of the mobile culinary landscape, and turn your passion into a thriving enterprise.
Welcome to the next chapter of your culinary adventure – let’s roll into success together!
Company Description
Street Flavour Express is a startup food truck park concept, based in Vancouver, Washington, in the United States of America. We plan to have 20-25 carts that will sell breakfast, lunch, and dinner, selling classics like burgers and fries, cuisine Chinese, India, Mexico, and other regions of the world. We would also help bring in potential clients with social media and their customers would also benefit from the traffic.
We will make it in such a way that guests will sit under a covered roof. We aim to provide quality home-cooked authentic cultural food for the community in a fast and affordable way.
The idea of having a food truck has a huge business that draws huge crowds but there are no such food parks in the city of Vancouver. Moreover, these food trucks or carts have much lower start-up costs than brick-and-mortar restaurants, they are a way for new chefs to establish themselves in the community. And these food truck parks stand to make a major impact on the way Americans eat.
Our revenue model will be rental based we will earn through renting space for food carts or food trucks. We will expand our reach and scale up our business to its maximum potential. We have made this business plan after analyzing demand and market needs, to avail opportunities that lie in the market.
We have calculated the amount to be required to execute our plans, and we are very confident that our plans and strategies will prove to be successful in the market and which will help us to deal with clients and potential investors and ultimately which will generate positive cash flow for the company.
We know that our customers are the reason why we are in a business which is why we will go the extra mile to get them satisfied when they visit our food park and to become our loyal customers and ambassadors because we are aware of the trend in this industry, and we are not only going to operate a system where our customers would have to come to enjoy their favorite food and drink.
Our marketing strategy will allow us to communicate the brand values, develop close working relationships with our customers, vendors, and suppliers, and identify the needs of our customers effectively. Continued differentiation and growth are two goals we have set for our business that will work.
Street Flavour Express will always demonstrate its commitment to sustainability as a firm, by actively participating in the communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our customer’s needs precisely and completely.
Value Proposition
The City of Vancouver does not have an established food park. Vendors are currently using parking lots of gas stations and convenience stores. We will also be promoting our business with paid advertising.
Vision
Our vision is to be a well-recognized food park where people get a chance to enjoy a diverse range of food cultures from all over the world. Within five years of business operations.
Mission
Our objective is to create a food park where people enjoy quality home-cooked authentic cultural food for the community in a fast and affordable way.
Keys to Success
Our business keys to success will be the following:
- The only brand that offers this kind of food park in the city of Vancouver.
- Offers affordable food and drinks for all your breakfast, lunch, and dinner.
- Vast varieties of food and drinks from different cultures all over the world.
- Focused on customer relationships and loyalty.
Best place for social gatherings such as family and friends.
Strategic Goals & Objectives
Street Flavour Express strategic objectives are as follows:
- Achieve handsome sales revenues during the first year of operation.
- Increase sales modestly during the second year of operation.
- To continue to communicate our strategic objectives to our target markets effectively.
- To accomplish our growth targets within the given time and budget and expand and identify new markets for our product.
- We will be spent on expanding our opportunities. Street Flavour Express will strive to create and maintain an image and reputation in the industry as an honest, cooperative, and creative business, characterized by ethics and fair dealings.
- To ensure success, we will focus on the development of a strong relationship with all our customers.
- Expand our customer base to retain a sufficient level of profitability.
- Increase customer retention by renting out space to food trucks.
Target Market
When it comes to food trucks or food parks, there are no restrictions on the target market, if we are operating within the law of the state where we are conducting our business. We do not need to intend to place any limit on the scope of our target market because everyone who loves to eat out can be our potential customers. However, we can explain our target customer demographics in such a way:
-Age – Youngsters, single, currently enrolled in college and high school.
-Family unit – We will also appeal to families (young families) with children.
-Gender – We will target both sexes, male, and female.
-Income – We will appeal to the medium to the upper-income group.
Our Business Structure
We are aware that the success of any business lies in the foundation on which the business is built, which is why we have decided to build Street Flavour Express on the right business foundation.
We are setting out to build a business that will be well accepted all over the city of Vancouver and gradually other parts of the USA. We want to build a dedicated workforce that will ensure that our customers are satisfied when they come to us.
We are aware that it takes a business with the right employees/staff and structure to achieve all that we have set to achieve, which is why we will be putting structures and processes in place that will help us to offer quality products and services that will be convenient and affordable for everyone.
With the nature of our business, we are only expected to employ an adequate number of employees. Street Flavour Express will employ professionals and skilled people to occupy the following position.
-Chief Executive Officer
-Sales and Marketing Manager
-Accountants
-Customer Services Representative
Market Research
When businesses were ordered closed and social distancing requirements went into effect amid the COVID-19 pandemic, restaurants were among the hardest hit. But not all food service businesses were affected equally: “Food trucks” or Mobile Food Services by their very nature have more flexibility to continue to operate.
The Food Truck industry has experienced a boom over the five years to 2020, primarily because of the surge in gastronomy in the United States. The industry is composed of operators that prepare and serve a broad range of cuisine from mobile food trucks on city sidewalks, in parks, and at events. Over the past five years, the industry has outpaced the broader food service sector. Additionally, the industry has evolved quickly, as entrepreneurial food truck operators have entered the market to cater to changing consumer preferences in favor of gourmet offerings and unique food concepts.
Demographics
According to a survey published by the National Restaurant Association, consumers aged 18 to 34 years of age were the most likely to purchase a meal from a food truck, followed by 54 percent of diners aged between 35 and 44 years. Older generations were the least likely to patronize a food truck, with only 30 percent of survey respondents aged 65 and over having visited one. However, older diners would be much more likely to visit a food truck from their favorite restaurant, with 53 percent stating they would patronize a food truck from their favorite restaurant.
Even the top 20 states accounted for just 77% of the total, making this a very geographically distributed industry.
These data are from the Census Bureau’s County Business Patterns (CBP) program, which provides data on the nation’s nearly 8 million employer businesses (businesses with one or more paid employees) in the United States, Puerto Rico, and the Island Areas.
Nationally, the average sales per food truck establishment were $XX and the average sales per food truck employee were $XX in 2017.
These data are from the 2017 Economic Census, which provides detailed information (including sales) for nearly every NAICS code at the national, state, metro, county, and place levels. Geographic details vary by NAICS sector.
Food Truck Startup Cost
The cost of getting a food truck business rolling is a lot cheaper than starting a brick-and-mortar restaurant, which makes it an attractive prospect for aspiring chefs. Of course, some expenses are inevitable: Getting the necessary licenses and permits, the right equipment, and kitchen implements are all things to consider before deciding to buy a food truck. Check out the ballpark estimates for the kinds of food truck profits and costs you might expect:
-An investment of less than $100,000 can result in an average food truck revenue of $250,000 to $500,000. (Food Truck Operator)
-The average cost of getting a food truck and all the necessary permits ranges between $50,000 and $60,000. (Food Truck Nation)
-Obtaining the required permits, ongoing legal compliance, and licensing will run you just over $28,000. (Food Truck Nation)
-An average of 45 government-mandated procedures need to be completed to open up a food truck. (Food Truck Nation)
-Completing these procedures and obtaining all the documentation takes 37 days, on average. (Food Truck Nation)
Food Truck Industry Trends
The food truck industry’s rising popularity has changed its reputation from that of places to get a cheap bite to exciting local – or exotic – food stops. Food trucks are now full-fledged restaurant venues, serving everything from burgers, ice cream, and cupcakes to foreign delicacies. The industry trends reflect this change, showing growth both in truck numbers and revenue.
Of course, COVID-19 reduced food truck development in 2020. However, this industry does have an advantage over traditional restaurants and suffered nowhere near as many losses and venue shutdowns. The food truck industry’s growth kept up its upward trend even with setbacks caused by the pandemic.
-Between 2015 and 2020, the industry grew by 7.5% on average. (IBISWorld)
-As of January 2021, there are 24,602 food trucks active in the US. (IBISWorld)
-At the beginning of 2021, the food truck market employs 29,608 people. (IBISWorld)
-The US food truck market worth for 2019 was 1.4 billion dollars. (IBISWorld)
-Due to COVID-19, the food truck business dropped to 1.24 billion dollars in market worth in 2020. (IBISWorld)
-In 20202, around 50% of food truck revenue for many businesses came from order-ahead sales. (Business Insider)
-A food truck industry analysis predicts an increase in market size of 2.4% in 2021. (IBISWorld)
Food Truck Market Engagement and Demographics
Instead of traditional marketing tools, food truck entrepreneurs utilize social media campaigns and geo-location tools to quickly reach their customers. They create engagement by connecting with their local audience, organizing events, and spreading the word via social media.
Every truck can create a unique brand, and special menus, and serve food that is more affordable to make and buy compared to restaurants. This is particularly appealing to the millennial and Gen Z population – another trend apparent in food truck statistics:
-Millennials make up most food truck connoisseurs – 47%, and many of them are returning customers. (Big Think)
-People between the ages of 18 and 34 are most likely to grab a meal from a food truck, followed by patrons between the ages of 35 and 44. (Statista)
-Over 80% of food truck diners choose to eat there because of the exciting, new, and unique experience. (Mobile Cuisine)
-Customer satisfaction is the biggest reason for the food truck’s success rate: More than 90% of patrons rate the quality of their experience positively, with 43% calling it excellent and 48% good. (Mobile Cuisine)
-Practically everyone who ate at a food truck once intends to enjoy the mobile restaurant adventure again. (Mobile Cuisine)
-Food truck fans cite convenience, great food at low prices, and short waiting and serving times as the most enjoyable aspects of this type of dining. (Mobile Cuisine)
The Entrepreneurs Responsible for the Growth in Food Truck Popularity
Food truck industry data show that innovation, variety, and convenience are the main factors responsible for the sustained growth of this business. Chefs must jump through fewer hoops and invest less to enter the market, while the inherent business mobility makes for an agile work environment accessible to a broader population.
Experimenting with new menus is a regular occurrence for 34% of mobile businesses. (Off the Grid)
Food truck entrepreneurs are an optimistic bunch – 26% of them have a “sky’s the limit” approach to risk-taking. (Off the Grid)
Only 11% of mobile chefs stated that they don’t experiment at all. (Off the Grid)
Food truck industry statistics show that immigrants own 30% of mobile restaurants, 30% are owned by women, 8% by members of the LGBTQ population, and 2% by military veterans. (Off the Grid)
31% of entrepreneurs started a food truck business as a concept test for a traditional restaurant. (Off the Grid)
Staying ahead of the ever-changing hospitality trends is why 24% of start-up chefs begin by owning a food truck. (Off the Grid)
Marketing Plan
Our marketing approaches will be directed toward achieving specific objectives that support the strategic goals of our business. The truth is that all we do will gear towards creating new market channels, increasing sales, and our market share.
Our business goal is to grow Street Flavour Express to become one of the preferred choices for outings, lunch, and dinner in our city or area. This is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in the city of Vancouver but also in the whole USA. We are set to make use of the following marketing and sales strategies to attract the target audience.
Digital Marketing Strategies
According to a 2019’s research study, having a good website or a social media presence must have acted in today’s era. Following are the Digital marketing strategies for our food truck business:
Digital marketing methods including:
-A quality website
-SEO
-Social media presence (Facebook, Instagram, LinkedIn, Pinterest)
-Google AdSense
Website Marketing Strategy
Street Flavour Express will utilize the following means to promote its website as a marketing tool:
-Initial and ongoing search engine optimization by the Web developer and then with an SEO firm
-Google AdWords campaign, which can be reduced or defunded if organic search rankings are high enough.
-Mention the website URL in all brochures and advertisements.
Search Engine Optimization (SEO)
Internet searches are by far the most common activity on the internet, and therefore it is crucial to appear among the top results when a user searches for keywords related to our service.
The company will implement an aggressive search engine optimization strategy, whereby it will optimize content using keywords that are peculiar to diversity and relevant to our services. By optimizing the website’s content, Street Flavour Express will organically aggregate higher on Google, Bing, and Yahoo search engines.
Videos on the YouTube channel
YouTube is one of the best search engines used today. Using YouTube channels for food and innovation recipes and how people are enjoying them will improve business exposure in all local areas and must bring a new customer our way. Videos are the best source to introduce our business and its offerings and tell the buyer about its quality, varieties of food, and affordable prices in just a short video.
Referral incentive
One of the best sources of referral are our present customers, who feel satisfied with our fresh foods from our vendors. We ask them to refer that to their family and friends, and we know people.
Customer experience
Deliver consistent customer experiences from the ambiance to our customers, making our first impression count positively to those that use our product for the first time.
Email or SMS Marketing
SMS marketing strategies are quickly becoming the most effective business advertising tool to come onto the scene for a very long time. And it works for any type of business and any size of business we are dealing with. Marketing research has found that SMS text marketing is ten times more effective than an ad in the paper.
To make people aware, email marketing is a good way, especially for the professional network, as email marketing has a median return on investment of 122%, which is four times higher than channels like social media, direct mail, and paid search.
Testimonials
Social proof, or testimonials, always plays an important role in a buyer’s decision-making process. Very few people are comfortable being the first person to use a new brand of food. They want to know if others have had positive experiences. So, we will add a few positive testimonials and customer reviews to our social media pages and website, so it will have a positive impact.
SWOT Analysis
The following analysis highlights the internal strengths and weaknesses of our business and the opportunities and threats faced by the business in our external environment. We must work to improve our areas of weakness.
Organizational strengths must be leveraged to capitalize on external opportunities as they arise, and contingency plans formulated to deal with threats presented by the environment. The industry is exposed to the following strength, weaknesses, threats, and opportunities:
Strength
-
- More than 25 food trucks or food carts in one place.
- Physical existence as well as easy access to our website
- Multiple revenue streams (sponsored ads or banner, Rental revenue, and own food truck).
- Wide variety of Foods or cuisines.
- Unique ambiance experiences
- Excellent customer care service
- No other food park concept in the city
Weakness
-
- New Concept
- Takes time to rent a food truck.
- A concept can easily copy.
- Required big investment for park license, preparation of layout and ambiance.
Opportunity
-
- The huge demand for a food truck and its food offering
- People are becoming more health-conscious.
- Alliances can boost the business.
- Can introduce more categories.
- We can stand anywhere at festivals and exhibitions to get more sales.
Become a good place for marketing, hence earning more revenue.
Threats
-
- Food Park or truck does not have a storage capacity, so sometimes, a daily stock may end early.
- Big Brand is already doing well.
- Competition and imitation
- Government laws & regulations
- Any Seasonal impact/disease.
