How to write a Food Truck

Business Plan

Executive Summary

No matter what type of business you're starting, even a food truck business, you need a structured business plan. 

And the best way to get started with your food truck business plan is with the executive summary.

Here, you can introduce your business concept and key elements of your business plan. These can include:

• The name, location, and primary focus of your food truck business
• A quick overview of the food you plan to sell
• Target market, including key demographics
• The current state of operations (optional)
• Revenue and profitability projections
• Initial funding requirements

Provide all the necessary key information about your food truck business. Explain who you are and what you plan to do with your food truck. 

If you're already in business, explain the current state of operations and any major achievements. 

The funding requirements section is optional. But if you're writing a business plan to acquire funding, it's highly recommended. 

When writing this part of your business plan, make sure not to give too much away. It's just supposed to serve as an overview of your business plan. 

That's why one page is the ideal length. You'll have a chance to go into more detail about individual aspects of your business later. 

Business Description

This is also called the company overview section or the "About Us" section.

It provides a detailed overview of your business, including its mission, vision, and goals.

Divide this section into the following sub-sections:

1. Business overview/company description
2. History
3. Mission statement
4. Vision statement
5. Business goals
6. Critical success factors

Start with an overview of your food truck business. Here's an example:

Flavor Wheels is a mobile food business catering to busy professionals, students, and food lovers. Our goal is to provide high-quality, affordable street tacos using locally sourced ingredients. We will operate in high-traffic areas and leverage social media marketing to attract and retain customers.

The mission and vision statement are of special importance. 

A mission statement defines the core purpose of your food truck business. It explains what you do, who you serve, and how you do it. 

A vision statement describes the long-term goal or aspiration of your food truck business. It should be future-focused, ambitious, and inspiring.

When discussing your future plans, you can also do a section on business goals. 

Divide your goals into short-term, medium-term, and long-term goals. 

An example of a short-term goal is to successfully launch your food truck within the next 3 months, securing all necessary permits and licenses.

A long-term goal can be to start a small chain of food trucks or to franchise your food truck model in different cities.

You can also add a section on critical success factors, like in this example:

Market Analysis

Starting a food truck business might be a risky venture, depending on where you live. 

That's why it's important to do research beforehand. This includes researching:

• Industry trends
• Local demand
• Growth trends
• Consumer preferences
• Your competition

First, take a look at your industry and the current trends. Is the food truck industry expanding where you live? What are the latest trends?

Then, you can identify popular cuisines and gaps in your city's food scene.

Highlight trends that support why your business will succeed in the food truck industry. These could include health-conscious dining or technology integration. 

You can also talk about consumer preferences. Mention trends like vegan, organic, or fusion food, which are shaping the market right now.

The competitive analysis is one of the most important parts of your market analysis.

List all your top competitors (direct and indirect) and explain what they have to offer compared to you. 

Direct competitors are other food trucks offering similar cuisine. Indirect competitors can include restaurants, fast food chains, and meal delivery services.

When you make this chart, you can then compile a list of your own competitive advantages. Explain what makes your food truck unique. 

Organisation and Management

This section outlines your food truck's ownership structure, key team members, and their roles. 

It provides insight into how your business will operate and who will be responsible for its success.

Readers will use this section to assess whether your team has the skills and experience to run a successful food truck.

These are some key points to include:

• Business ownership 
• Legal structure
• Key team members and roles
• Staffing plan
• Growth strategy
• Organisational structure

Explain who owns the business and the legal entity under which it operates.

Then, outline your legal structure. Is your food truck business a sole proprietorship, a partnership, or a limited liability company?

You can then describe your management team and employees. List their responsibilities and relevant experience.

Here's an example of what it should look like:

1. John Doe (Owner & Head Chef) - Manages food preparation, menu development, and inventory control; 10+ years as a professional chef.
2. Jane Smith (Co-owner & Marketing Manager) - Handles social media, promotions, branding, and partnerships; 5+ years in digital marketing and brand management.
3. Michael Lee (Truck Manager) - Ensures smooth daily operations, oversees staff, and maintains truck cleanliness and safety; 7+ years in restaurant and hospitality management.

Describe how many employees you'll need at the start and your plans for hiring as the business grows.

If you have a team, consider adding a simple organisational chart. This will help illustrate the structure of your food truck business.

Products or Services

This section should describe your food truck's menu offerings, pricing strategy, and any additional services. 

This section should also highlight:

• What makes your food unique
• Why customers will love it
• How your offerings align with market demand

Explain the concept of your food truck business. It should define your brand and set you apart from competitors.

Here are some points you can consider:

1. Cuisine type: What food will you serve? (e.g., tacos, BBQ, vegan bowls, fusion dishes)
2. Unique Selling Proposition (USP): What makes your food special? (e.g., organic ingredients, fusion flavours, oversized portions)
3. Branding and aesthetic: Your truck's name, logo, and design should match your concept.

Similar to a restaurant business plan, there should be a section on your core menu offerings. You can list menu categories, signature dishes, ingredients, dietary options, etc. 

Add a section about your pricing strategy. 

Explain how your pricing is competitive, profitable, and aligned with customer expectations.

If you have any bundle deals or combos, make sure to mention them here. Also, mention any limited-time or seasonal menu items to attract repeat customers.

If your food truck offers more than just street service, include those extra revenue streams. This can include catering services, food truck pop-ups, or online delivery. 

Marketing and Sales Strategies

Next is the marketing and sales section of your food truck business plan.

If you're new to the business, it's important to think of a solid marketing plan that will attract your target customers. 

Your marketing strategy can include the use of the following:

1. Social media: Promote your truck on Instagram, TikTok, and Facebook.
2. Website and online ordering: A simple site with location updates and an online menu.
3. Local events and collaborations: Partner with breweries, festivals, and businesses.
4. Loyalty programs: Offer discounts for repeat customers.
5. Food delivery apps: Partner with popular food delivery apps in your region.

These marketing tactics aren't just supposed to help you find new customers, but keep repeating ones as well. 

It's also essential to develop a good positioning statement. Describe how you want customers to perceive your food truck.

Here's an example of a positioning statement for a food truck business:

Flavor Wheels is positioned as a high-quality, affordable gourmet taco truck that brings unique international flavours to the streets. With a vibrant and modern truck design, an engaging social media presence, and a focus on fresh, locally sourced ingredients, we aim to attract young professionals, college students, and food enthusiasts.

You should also go through your sales strategy. Describe how you convert first-time customers into loyal fans.

Will this include exceptional service, a loyalty program, or special deals?

Operations Plan

Your operations plan should detail the daily logistics of running your food truck.

Here are some of the most important elements of your operations plan:

1. Daily operations
2. Location
3. Supplier and inventory
4. Equipment
5. Health and safety compliance
6. Permits and licenses

Explain how your food truck will operate on a daily basis, from opening to closing. Include the daily setup, preparation, and the service workflow.

Choosing the location for your food truck is very important, and it can make all the difference. Explain why you have chosen that location and how it will benefit your business. 

This may include a daily/weekly rotation schedule. 

Outline how you will manage ingredients, packaging, and other inventory items.

You can go through ingredient suppliers, order frequency, storage management, and cost control. 

Here is some equipment you might use on a daily basis in your food truck:

• Cooking appliances (grill, fryer, oven, etc.)
• Refrigeration and storage units
• Prep stations and utensils
• POS (Point of Sale) system for payments
• Generator for power supply

To start a food truck business plan, you need certain permits and licenses. Explain how you will meet local regulations and ensure food safety.

Each city has different regulations. Make sure to check with your local health and business authorities.

This can include:

• Business license
• Food truck permit
• Health department permit
• Fire safety permit
• Parking permit

Financial Plan

The financial plan is one of the most important parts of your food truck business plan. 

Investors and lenders will look for it because your financial plan should demonstrate your business's financial feasibility.

Your job is to show readers that you understand the costs of starting and maintaining this business venture. 

Here's how to write a financial plan for a food truck business:

1. Break down the initial investment required to launch your food truck business.
2. Estimate how much revenue your food truck will generate per day, month, and year.
3. Outline your monthly expenses to show how much it costs to run your business.
4. Do a break-even analysis to determine when your food truck will start making a profit.
5. Provide a summary of your cash flow statement, income statement, and balance sheet. 
6. Specify how much funding you will need to start your business.

Make sure to break down all the costs. Investors need a clear financial picture.

To make your financial plan even better, add tables and spreadsheets of all your financial data. 

If you need funding, specify how much you need and how it will be used, like in this example:

We are seeking a $100,000 small business loan to cover startup expenses, including food truck purchase, equipment, and initial inventory. The loan will be repaid over five years with expected profitability by month six.

Conclusion

The conclusion is the final section of your food truck business plan. 

It's your final chance to leave a strong, positive impression on readers.

You can do this by summarising the key points and reinforcing the viability of your food truck business.

You can also add a section on future milestones.

This will help readers understand you're ready to start your business.

If you're seeking funding for your food truck, make sure to end with a call to action (CTA). State how the reader can get involved, like in this example:

We are seeking a $100,000 investment to support our launch, secure premium locations, and fund initial marketing efforts. With your support, we are confident that Flavor Wheels will become a staple in the local food scene. We invite you to be part of this exciting journey.

Appendix

Last but not least is the appendix.

Even though it's not a mandatory section, it's useful for attaching supporting documents. It also provides potential investors with extra information if needed.

Here's what you can include in the appendix of your food truck business plan:

• A copy of the menu and pricing list
• Business license and permits
• Market research and industry data
• Detailed financial documents
• Equipment and supplier agreements
• Marketing and branding materials
• Resumes of key team members