How a Food Truck Business Plan Looks in Practice
We learned from, “How to Write a Food Truck Business Plan,” about the importance of having a plan before jumping into purchasing a food truck. It covers why you need a plan, what should be included and the structure to follow.
Creating a comprehensive plan gives you, and your investors, a roadmap to success for your food truck business. It also gives you milestones on which to judge your progress and helps avoid common mistakes. As a reminder, winging it without a plan, regardless of your experience, can be a recipe for disaster.
So, to further help you along the path of food truck business success, here’s an example of how the hypothetical Steve’s Mobile Coffee Shop built their business plan. Although you’ll need to tailor the plan to your needs, market, costs, and budget, you’ll receive some inspiration from the plan.
So, get after it and share your excellent gifts and skills with an adoring food truck public.
Steve's Mobile Coffee Shop Business Plan
Steve's Mobile Coffee is a new business concept that will provide quality coffee products and services to customers in the Orange County area. We will be a mobile coffee shop operating out of a converted van. Our food truck will sell a range of hot and cold drinks and pre-packaged food items, such as sandwiches and pastries.
We have identified a niche in the market for quality coffee products that are convenient and affordable. Our target market is busy professionals who don't have time to queue for coffee at a traditional cafe. Our food truck will operate in high foot traffic areas such as office buildings, shopping malls, and public transportation hubs.
We have a strong management team with experience in the coffee industry and successful start-up businesses. We've secured funding from private investors to cover the costs of setting up our business. Additionally, we're confident that we can make Steve's Mobile Coffee a success and generate significant profits within our first year of operation.
Steve's Mobile Coffee will be structured as a sole proprietorship. The business will be owned and operated by Steve Mitchell.
Products and Services
Steve's Mobile Coffee will sell a range of hot and cold drinks and pre-packaged food items, such as sandwiches and pastries. We'll source our coffee beans from a local organic and sustainable roastery, and all our beverages will be made to order. We will also offer a “loyalty card” option that uses the customers’ phone number instead of requiring that they carry a card, whereby customers can earn discounts on future purchases.
The coffee market in the United States is currently worth $48 billion, and it is forecast to grow to $52 billion through 2022. Most of this growth is expected to come from the sale of specialty coffee, which is currently worth $21 billion.
The specialty coffee market has seen significant growth in recent years, with the number of independent coffee shops increasing by 12% in 2021. This trend is driven by consumers' willingness to pay more for better-quality organically sourced fair-trade coffee.
There are currently 3,200 coffee shops in Orange County, California, and the number is expected to grow to 3,400 by 2023. As a positive for us, most of these coffee shops aren't conveniently located near newer office centers and consumers are looking for convenient and affordable food options, driving this growth.
Currently, no mobile coffee food truck businesses are operating in the South Orange County area. As a result, we believe there is a gap in the market for a quality fair trade coffee product that is both convenient and affordable.
Our primary target market is busy professionals who don't have time to queue for coffee at a traditional coffee shop. In addition, we will operate in high foot traffic areas, such as office buildings, family public events, and public transportation hubs.
We have identified two segments within our target market:
Segment 1: Office workers in densely populated office complexes in South Orange County.
- This segment consists of office workers who work in, for example, the Irvine Business Corridor. They are 25-55, have a college education, and an annual income of $65,000 - $200,000. They are looking for a convenient and reasonably affordable way to get their coffee fix during the day.
Segment 2: Families at family sporting events
- This segment comprises after-work office workers and extended families who frequent their childrens’ local sports events. They are 18-65, have a high school education or higher, and have an annual income of $35,000-$200,000. They are looking for a quick and easy way to get their caffeine fix while enjoying their families’ sports practice and games.
The coffee shop industry is highly competitive, with most businesses operating on a regional or national basis. The three most prominent players in the industry are Starbucks, and Dunkin' Donuts. These companies have a significant presence in the Orange County area, with over 100 stores.
There are also many smaller independent coffee shops in the area, such as Tru Bru Coffee. These businesses have a more niche appeal and tend to be in high-end neighborhoods.
There are also several smaller independent mobile food businesses in the area. However, these businesses have a more niche appeal and tend to be in high-foot traffic areas, such as malls and public transportation hubs.
Strategy and Implementation
Steve's Mobile Coffee will compete in the coffee shop industry by offering quality products at a competitive price. We will source our coffee beans from a local roaster carrying fair trade coffee, and all our drinks will be made to order using fresh ingredients.
We will also differentiate ourselves from competitors by providing a convenient and affordable service. For example, our mobile coffee cart will be in high-foot traffic areas, and we'll offer a delivery service to office buildings, city sports parks, and homes.
Our marketing strategy will focus on online and offline channels. We will use social media platforms, such as Facebook and Instagram to raise awareness of our brand and use targeted online advertising to reach our target market.
We'll also use traditional marketing methods such as flyers and posters to promote our business in the local area. We believe that this multi-channel approach will allow us to reach the broadest possible audience.
Our business will be implemented by Steve, who has over ten years of experience in the coffee industry. He will be responsible for sourcing our coffee beans, training our baristas, and managing our marketing campaigns.
Steve himself will fund Steve's Mobile Coffee. He has saved $50,000 over the past five years and is willing to invest this money into the business.
We are also seeking a loan of $100,000 from the Small Business Administration. This loan will be used to fund the purchase of our coffee cart, and Steve's Mobile Coffee will repay it over five years.
Our start-up costs are outlined below:
Coffee Cart Truck $20,000
Total start-up expenses $31,500
Total start-up assets $50,000
Total start-up funding $81,500
We're projecting strong growth in the first year of operation. We project to generate sales of $120,000 in Year 1, and we are projecting a profit of $30,000. These figures are based on our market research and our experience in the industry.
In Year 2, we expect to generate sales of $200,000, projecting a profit of $50,000. In Year 3, we hope to generate sales of $250,000, projecting a profit of $75,000.
Steve's Mobile Coffee will generate sales through a combination of walk-up customers and delivery orders. We project that 60% of our sales will come from walk-up customers and 40% from delivery orders.
We will charge a flat fee of $3 for all regular coffee drinks, offering a discount for large orders. Our delivery charges will be based on the distance of the delivery address from our coffee cart.
Our pricing strategy is outlined below.
Regular coffee $3
Large coffee $5.00
Delivery (0-5 miles) $5
Delivery (5-10 miles) $7.50
Steve's Mobile Coffee will generate sales through online and offline channels. We will accept payments by cash, credit, and debit. We will also offer a discount for customers who pay in cash.
We project that 50% of our sales will come from online orders and 50% from offline orders. Our online ordering system will be integrated with our website, and we will also take orders over the phone.
We will promote our business through a combination of online and offline channels. We will use social media platforms such as Facebook and Instagram to raise awareness of our brand and use targeted online advertising to reach our target market.
We will also use traditional marketing methods, such as flyers and posters to promote our business in the local area.
Steve's Mobile Coffee will be based in Irvine, California. We have chosen this location because it is an urban area with a large population of coffee drinkers.
We believe this location will give us access to a large customer base and allow us to tap into the Orange County tourist market.
Our coffee cart will be near one of Irvine's busiest urban office centers. This location will give us high visibility, and it will also provide us with a steady stream of foot traffic.
Steve's Mobile Coffee will operate Monday to Friday from 6 am to 6 pm. We believe these hours will allow us to capture the morning and afternoon coffee rush.
We will also offer a delivery service for businesses within a 10-mile radius of our coffee cart.
Steve's Mobile Coffee will be owned and operated by Steve Mitchell. Steve has been working in the coffee industry for the past ten years and has gained a wealth of experience in this field.
Steve is a qualified barista and has also completed a course in business management. He is passionate about coffee and is confident that he can make his business a success.
Steve's Mobile Coffee will employ two full-time staff members and two part-time staff members. We believe this staffing level will allow us to meet customer demand effectively.
Steve's Mobile Coffee will require a start-up investment of $81,500. This funding will be used to purchase the coffee cart, pay for marketing and advertising expenses, and cover the costs of leasing a commercial space.
We are confident that we can generate strong sales from our coffee cart, and we believe this business will be profitable in the long term.
If you are interested in investing in Steve's Mobile Coffee, please contact us at (123) 456-7890.
Thank you for your time and consideration.
Food Truck Next Steps
Now that you know what’s required in a food truck business presentation, it’s time to put yours together. In the process, check out COMVOY for an excellent selection of trucks to build your business on.
At COMVOY, we feel it’s vital to find the right truck for your food truck, contractor, or delivery business. And we offer box trucks, catering vans, and other trucks on which to build your business. So whether it’s upfit or you want to start from scratch, we have what you need. And depending on your purchase, we know your truck and where you purchased it can be your trusted partner or your biggest obstacle. COMVOY is here for you.
Specially written for COMVOY.com by:
Steve grew up on a farm in East Texas. And his first experience with driving trucks was using the creeper gear as the driver in his great uncle Homer’s flat bed Chevy hay hauler. Even though he now lives in Southern California, he’s still filled with passion for four wheels. On sunny days, you’ll also find him playing as an endurance athlete on the bike in SoCal, but you'll know he's thinking about cars.
Published on: July 06, 2022