Writing a business plan is essential for any startup or new business idea, including food trucks. It can help you set out your vision and give a company overview to potential investors, and it’s a valuable way of getting your grandest plans down on paper to see how realistic they are. But writing a food truck business plan isn’t always easy for new entrepreneurs.
The food truck industry in the United States is worth an enormous $2.7 billion. It’s a huge sector that looks set to continue growing. If you want to join the ranks of the 36,000-plus food trucks in the U.S., writing a business plan should be your first step.
To help you get started, we’ve put together this step-by-step guide to writing a food truck business plan. We’ll show you exactly why you need one and tell you what to include in yours, giving tips to ensure you run a successful food truck business.
All small businesses need a business plan before they begin operating, and food trucks are no exception. Starting a new food truck is not just about making great food on the go. It’s like a brick-and-mortar restaurant business on wheels, so you need to be prepared to operate it as a business.
A food truck business plan will set out detailed market analysis to help you understand the demographics of your target market. This can help you decide what kind of food you’ll serve and what menu items might be popular.
Your business plan will also include a thorough financial plan to help you work out a budget for your food truck. You’ll need to lay out all expected costs (food costs, equipment costs, start-up costs, etc.) before you apply for a business loan or reach out to potential investors. This will show your investors that your management team is a professional unit and that you know the financial side of your food truck business.
Compiling all this information can also help your management team understand what you’re aiming to achieve. A food truck business plan will clarify what type of food truck you plan to run and how you’ll organize your business structure.
If you’re unsure how to structure your business plan, follow the seven steps below to ensure you’re heading in the right direction.
Start your food truck business plan with a concise executive summary. An executive summary is a brief overview of the overall report. It should include the key points you’ll address in the business plan and summarize your food truck business’s statement of purpose.
Although the summary should be the first element of your business plan, most entrepreneurs write the executive summary last. By this point, you’ll have a good idea of what your business is about, so you can simply summarize the key points.
Write a clear description of your food truck business and its intentions. This is the section of your business plan where you can go into detail about the type of food truck you want to run — the food you’ll serve, the areas you’ll visit, the customers you’ll target, and more.
Use this section to:
Lay out your business ethos
Highlight your goals
Describe the type of cuisine you’ll serve
Consider your unique selling point (USP) — what makes your food truck special?
Next, do some market research into your target market and other mobile food businesses in your area. Consider what they do well and what you think they could improve on. You can then apply your findings to your own food truck marketing plan.
Write up your research and use it to develop your marketing strategy and food truck branding.
Remember that marketing doesn’t have to be expensive. You can use social media to your advantage! As long as you have effective restaurant branding, it’s easy to spread the word about your food truck and entice customers.
Use your market research to help you plan your menu. Think about your target customers and their spending habits — this should inform your menu items and prices.
One of the most important aspects of running a food truck is ensuring you’re serving quality food. Whether you sell street food like tacos and burgers or higher-end dishes like pasta to-go, you’ll need to plan a menu that you (or your chef) know how to cook to a high standard.
Once you know what you plan to cook, you can put together a thorough food truck equipment list. Include details of everything you need to buy to cook each item on your menu. This may include:
Cutting boards and sharp knives
Pots and pans
Fryers and griddles
Refrigerators and freezers
Food service items (such as takeout containers and cutlery)
Think carefully about every element of your service, and write a list of all the equipment you’ll need.
An often-overlooked aspect of running a food truck is a food-ordering system. You need to have a simple process to let customers place and pay for orders — either with cash, credit card, or both.
A sound point-of-sale system (POS system) is essential to ensure efficient service. Many food cart business owners also decide to use self-service systems so they can focus on preparing and serving the food rather than taking payments.
KioskBuddy is an excellent option for self-service in a food truck. It lets you turn your tablet into a self-service kiosk. In addition to your tablet, all you need to get started is the KioskBuddy app and a Square Kiosk. This mount removes the need for additional hardware because it has a contactless reader included, so customers can place their orders on the screen and pay with a quick tap. Easy!
A clearly structured financial plan is the final (and arguably most important) element of a food truck business plan. You’ll need to tally up the startup costs, food costs, and ongoing expenses you expect to incur, as well as your expected income from food sales. Use these figures to create accurate financial projections for your business.
Writing a detailed summary of your expected turnover and profit margins is essential to help you manage your cash flow. However, it’s also a crucial step in applying for funding, as all potential investors or crowdfunding donors will want to see that you know how to finance and run a business.
When you’ve finished working on the financial section of your food truck business plan, you can include it in the loan application you send to lenders and small business loan providers.
Writing a detailed food truck business plan will give your new business a competitive advantage. You’ll clearly understand your potential customers and how to appeal to them, which can help you secure a loan or source funding from investors.
KioskBuddy can be an excellent addition to a food truck business because it makes it easier for customers to place and pay for their orders. Turn your tablet into an easy-to-use self-service device so that you can focus on what matters: serving up great food to your customers.
Sign up for KioskBuddy today and receive a 30-day free trial.