food truck business plan in kerala

• Starting a Food Truck Business in India: A Complete Guide

Published on : 22/03/2022

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The Indian food industry has witnessed many evolutionary changes, one of them being the introduction of food trucks. Even though food trucks have been prevalent since the last decade, it wasn’t until a couple of years back that the food truck business caught on.

Starting from burgers and hotdogs to delicious South Indian foods and oh our favourite Chinese cuisine, you will come across food trucks selling a variety of cuisines in the country. Several factors have contributed to the growth of this industry type, out of which financing is a primary attribute. Considering everything, the capital required to open and run a restaurant is colossal. However, a food truck can be opened with a total capital of about INR 9 to 10 lakhs, which is most certainly an affordable range.

However, owning a food truck business is undoubtedly a blossoming idea. That’s why many aren’t aware of all the prerequisites one has to meet to open and operate a truck restaurant successfully. However, like all dreams, your food truck business is also possible if you stick around and read how to proceed! On this account, we have discussed everything you need to know to open a food truck business.

1. Decide your Cuisine

Your first job to do is to decide the type of food you want to serve. Like other industries, the food industry is divided into several categories based on the food type and the cuisine. 

Without deciding your cuisine and menu first, proceeding further will set you on a path of failure. This decision determines the truck size, the prospective location for business setup, the types of equipment you need, and many other attributes. inresto’s restaurant management solutions are built to optimize your ideal cuisine and menu types and enable you to avoid wastage and manage your food inventory effectively. 

Here are some of the popular food cuisines that are perfect for a food truck business:

• American dishes like burgers, hotdogs, sandwiches, wraps, burritos, bagels, and others.
• Various fruits and vegetable juices, beverages, shakes, and smoothies.
• Authentic South Indian dishes like idli, sambar vada, dosa, uttapam, etc.

2. Understand the cost differentiation of starting a food truck

Every startup business needs capital. Usually, for a standard food truck, the total setup cost is around 8 to 11 lakhs. However, if you want a fully equipped food truck with advanced equipment and setup, the price can increase up to INR 16 to 20 lakhs.

Before we move further, let’s take a glimpse at the price differentiation so that you can understand how much to spend for which purpose.

• For types of equipment like cooking stations, refrigerator, microwave oven, furniture, will cost you up to INR 2 to 2.5 lakhs.
• Since you need to buy a truck, you need to spend around INR 3.5 to 5 lakhs based on the truck’s volume, features, and other attributes.
• You will need an inventory of raw materials for cooking which will cost you around INR 15 to 25 thousand every month based on the amount, the ingredient types, and sales. Click here to know more about inventory management.
• If you are working independently at the start of the business, you won’t have to worry about the staff cost. But, if you hire a staff, their salary will be about INR 15 to 20 thousand per month, per person. We definitely suggest that you hire at least one person on board so that there is effective management. While one is cooking, the other can take orders, serve, and collect payments.

3. Get the required food licenses

Without proper licenses issued by the government, you will not be able to register your business and make your dream come true. So, before you jump with excitement at the idea of owning a food truck, prepare for obtaining the licenses. Following are the legal documents you will need for conducting the food business:

• If your business gross turnover is more than INR 12 lakhs annually, you will have to get the FSSAI license.
• NOC is needed from the Chief Fire Officer since owning a food truck means fire hazard, which means that people’s lives are in danger, including yours.
• Allowance letter from the municipality body of the area where you will be setting up the business.
• Vehicle license to register your food truck business with the government.

4. Choose a proper location for the food truck business

Since it is a truck, you cannot set it like an old, traditional restaurant. You have to focus on the area and the road from where you will start the food business. For choosing the location, you need to consider the three most important attributes.

• You need to confirm with the municipality body about your truck’s parking since every food business needs a spacious ambiance to operate and serve meals smoothly.
• Another factor that will matter is visibility. Make sure to choose a location that is regularly visited by flocks of people. This will help you to earn more revenue because most people like to grab a small meal on their way rather than going to a restaurant.
• To beat your competition, you should look into ways to make your customer service and marketing unique and intuitive to build a loyal diner base.

5. Get the required finances for the truck business

If you cannot arrange all the money required for opening the food truck business, you can take help from different financing methods. For example, a loan will help you with the capital needed to start the truck and get everything in motion.

6. Look for brand marketing and promotion

Lastly, you need to market your brand, and for that, you need to rely on advertisements and social media. Many companies offer promotion and marketing services on the digital platform. You can integrate inresto’ s marketing solutions to simplify your marketing activities such as social media marketing, customized website and online delivery platform creation for your restaurant business, and much more. This will give you much-needed exposure to your business, and soon your customer base will grow.

Final verdict

Opening a food truck business might seem overwhelming at times. But, in reality, it is one of the easiest business models to set up. Follow these easy steps and build a successful food truck business for yourself.

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Food Truck Business Plan in India [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Food Sector » Food Truck & Cart

Are you about starting a food truck business in India? If YES, here is a complete sample food truck business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a food truck business in India. We also took it further by analyzing and drafting a sample food truck marketing plan template backed up by actionable guerrilla marketing ideas for food truck companies. So let’s proceed to the business planning section.

What is a Food Truck?

A food truck is a large truck or means of transportation that is equipped to cook and sell food, ice cream and snacks. It is also common to see food trucks sell French fries, sandwiches, hamburgers, and fast food. Little wonder food trucks and other portable food kiosks are on the front line of the street food industry and they serve an estimated 2.5 billion people daily.

If you want to start a food truck business in india, then you should ensure that you carry out thorough feasibility studies and market survey. This will enable you properly launch the business in a good location and then hit the ground running.

Business plan is yet another very important business document that you should not take for granted while launching your own food truck business. Below is a sample food truck business plan template that can help you to successfully write your own with little or no difficulty.

A Sample Food Truck Business Plan Template India

1. industry overview.

Food trucks and businesses in this industry are designed to service areas where it might be difficult to construct the conventional restaurant such as carnival sites, construction sites, sporting event centers, camp grounds, beaches etc. Food trucks also take advantage of places like campuses, office complexes, military bases, mechanical villages, industrial parks, farmer’s markets, cinemas, religious centers etc. to sell their foods, snacks and drinks.

A recent research conducted in India shows that Indian fast food market is expected to grow at a CAGR of 18 percent by 2022 due to changing consumer behavior and demography.

The fast food market in India is expected to be worth US$ 27.57 billion by 2022 and about 10 percent of the fast food market in India is organized. NOVONOUS estimates that the organized fast food market in India is expected to grow at a CAGR of 27 percent by 2022.

The report also shows that vegetarian fast food constitutes around 45 percent of the whole fast food market in India and it is expected to grow at a CAGR of 18 percent by 2022. Fast food Casual dining restaurants (CDRs) market in organized fast food sector in India is projected to grow at a CAGR of 27 percent by 2019-20.

Non-casual dining restaurants (NCDR) or fast casual dining restaurants have gained tremendous market share in the last 10-15 years. Non-Casual dining restaurants market in organized fast food sector in India is also projected to grow at a CAGR of 27 percent in next 5 years. Quick Service Restaurants (QSRs) market in organized fast food sector in India is projected to grow at a CAGR of 20 percent by 2019-20.

Food trucks have been around for years, they are popular when it comes to serving construction sites, camp grounds, factories, and other blue-collar work locations.

The industry is meeting a need in the society as people who don’t have the time to search for restaurants find it time saving and cheaper to patronize food trucks. Food trucks are not only patronized for their affordability but also because they save time.

Recently, there has been appreciable increase in the number of food truck businesses in India. This increase can be attributed to creativity, the change in lifestyle of the average Indian and of course post – recession and economic factors. In essence the food industry is growing and the future is still bright for the industry.

Conventional restaurant owners are venturing into the food truck business because it is easier for them to attract sales when they are mobile as against being positioned in one location. For example, a food truck can visit more than two event venues in a day to sell food and drinks.

The food truck business is indeed a profitable line of business in India and it is open for any aspiring entrepreneur to come in and establish his or her business; you can choose to start on a small scale servicing a community or you can choose to start on a large scale with several food trucks in key cities around India.

2. Executive Summary

Karina Mahatma® Food Truck, LLC is a licensed food truck business that will be based in Bangalore – Karnataka, India. Bangalore, formally designated as Bengaluru, is the capital of Karnataka state and the fourth most populous Indian city with a population of 10.6 million people.

Bangalore uses a large number of spoken languages including English, Kannada, Hindi, Konkani, Telugu, and Malayalam. Different branches of Hinduism chose the city as a place to build a large number of temples. Bangalore is also the birthplace of famous scientific and educational institutions of the nation like IISC and NCBS.

We are a unique food truck brand simply because we do not just sell assorted fast food, but we will also engage in the sale of our franchise and also offer training and consultancy services in line with our area of business.

Karina Mahatma® Food Truck, LLC was founded by the awarding winning food nutritionist and business mogul – Mrs. Karina Mahatma who has a B.Sc. in Food Science Technology and a Master’s Degree in Business Administration (MBA).

She has robust experience in the food and drinks line of business having worked at senior management positions for some of the leading fast food companies in India prior to starting Karina Mahatma® Food Truck, LLC.

Because of our corporate goal of becoming one of the leading food truck companies in India, we are willing to invest in some of the finest professionals we can find and also, we have set plans in place to acquire the best of mobile food trucks and cooking utensils.

Our food trucks will be customized to fit into the kind of ideas we have of how a top – rated food truck should look like. When it comes to hygiene, we have put plans, processes and structures in place that will ensure that we are always at the top of our game. We have been able to secure permits from all relevant departments in the state of Karnataka.

Karina Mahatma® Food Truck, LLC is set to redefine how the food truck business should be run, not just in Bangalore – Karnataka, but also in the whole of India and Asia, which is why we have put plans in place for continuous training of all our staff.

It is a known fact that the demand for fast food via mobile food truck is not going to plummet any time soon, which is why we have put plans in place to continue to explore all available market around the cities where our mobile food trucks will transverse.

At Karina Mahatma® Food Truck, LLC, our strongest selling point is the unique taste of the different types of fast foods that we sell. There is hardly any customer that will taste any of our products who would not want to come back and make more purchase.

Karina Mahatma® Food Truck, LLC will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

3. Our Products and Services

Karina Mahatma® Food Truck, LLC is an establishment that primarily prepares, serve / sell fast food, as well as drinks. As part our strategy to create multiple sources of income in line with our core business concept, we will run consultancy services and training.

Our intention of starting Karina Mahatma® Food Truck, LLC is to make profits from the industry and we will do all that is permitted by the law in India to achieve our aim and ambition. Here are some of our products and services;

• Selling burgers, sandwiches, pizza, pasta, chicken and chips, barbecued beef, fish, bacon, pork, chicken, turkey et al, coffee and other beverages, such as water, juice and sodas
• Training, Advisory and Consultancy Services
• Selling Franchise

4. Our Mission and Vision Statement

• Our vision is to be amongst the top 5 leading food truck companies in India before our 7 th year anniversary.
• Our mission is to build a food truck business in India that will meet the needs of all our customers and potential customers in the regions/cities where we our food trucks will cover and to sell franchise all across India and Asia.

Our Business Structure

As part of our plan to build a top – flight food truck business in Bangalore – Karnataka, we have perfected plans to get it right from the onset which is why we are going the extra mile to ensure that we have competent employees to occupy all the available positions in our company.

We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all our stake holders. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more depending how fast we meet our set target.

The picture of the kind of food truck business we intend building and the goals we want to achieve is what informed the amount we are ready to pay for the best hands available in the food truck industry in India as long as they are willing and ready to work with us to achieve our business goals and objectives.

Below is the business structure that we will build at Karina Mahatma® Food Truck, LLC;

• Chief Executive Officer
• Sales and Marketing Officer
• Accountants / Cashiers
• Truck Drivers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (Owner):

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions
• Creates, communicates, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Oversees the smooth running of the food truck business
• Responsible for training, evaluation and assessment of workers
• Ensures smooth operation of equipment by completing preventive maintenance requirements; calling for repairs as at when due.
• Ensures that the food truck meets the expected safety and health standard at all times.
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Defines job positions for recruitment and managing interviewing process
• Carries out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Oversees the smooth running of the daily office activities

Sales and Marketing Manager

• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company

Accountant 

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Truck Drivers:

• Drives the food truck
• Assists in loading and off – loading cooking utensils and accessories
• Delivers customer’s orders promptly
• Handles any other duty as assigned by the sales and marketing executive and manager
• Responsible for preparing and selling burgers, sandwiches, pizza and pasta chicken and chips, barbecued beef, fish, bacon, pork, chicken, turkey or corn et al, coffee and other drinks
• Handles customers enquiries
• Assesses customers’ needs and preferences and makes recommendations
• Provides recommendations and suggestions to customers
• Serves customers in a friendly and helpful manner
• Demonstrates a thorough knowledge of menus
• Responsible for cleaning the food truck at all times
• Responsible for washing serving wares and utensils used in the food truck
• Ensures that toiletries and supplies don’t run out of stock
• Any other duty as assigned by the manager

6. SWOT Analysis

Because of our drive for excellence when it comes to running a standard food truck business, we were able to engage some of the finest business consultants in Bangalore – Karnataka to look through our business concept and together we were able to examine the prospects of the business and to access ourselves to be sure we have what it takes to run a standard food truck company that can compete favorably in the industry.

In view of that, we were able to take stock of our strengths, weakness, opportunities and also the threats that we are likely going to be exposed to in Bangalore – Karnataka and even in India as a whole. Here is a of what we got from the SWOT Analysis conducted for Karina Mahatma® Food Truck, LLC;

Our strength lies in the fact that we have a wide range of fast foods and drinks that can meet the needs of a wide range of customers. We have state of the art food trucks and utensils that has positioned us to meet the market demand of food even if the demand tripled over night.

Another factor that counts to our advantage is the background of our Chief Executive Officer; she has a robust experience in the industry and very good academic qualification to match the experience acquired which has placed her amongst the top – flight professionals in India. We are not ignoring the fact that offering consultancy services and running a standard training center is going to count as a positive for us.

The fact that we are setting up a food truck business in a city with other food trucks and of course fast food restaurants may likely pose a challenge for us in breaking into the fast-growing market in Bangalore – Karnataka. In essence our chosen location might be our weakness. But nevertheless, we have plans to launch out big.

• Opportunities:

The opportunities available to us are unlimited. Loads of people consume fast foods on a daily basis and all what we are going to do to push our products to them is already perfected. There are also loads of people who would want to learn how to operate a food truck business and they will readily find our government approved training center ideal for them to fulfill that goal.

The threat that is likely going to confront us is the fact that we are competing with already established food truck companies and fast food restaurants in Bangalore – Karnataka and also there are other entrepreneurs who are likely going to launch similar businesses within the location of our business.

Another threat that we are likely going to face is unfavorable government policies and of course economic downturn. Usually economic downturn affects purchasing/spending powers.

7. MARKET ANALYSIS

• Market Trends

Food Truck is becoming a growing trend in India and one interesting aspect of it is that it’s the youths who are taking it up as careers and they are living up to all our expectations. Let it be healthy, of good quality, cheap and most importantly freaking delicious. The main objective of a food truck is handy, cheap and tasty food. This makes people want to go there between office breaks or college breaks or just to hang out with friends.

8. Our Target Market

When it comes to fast food, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who love fast food and those who would want to try them out. In view of that, we have conducted our market research and we have ideas of what our target market would be expecting from us.

We are in business to engage in the sale of fast food and drinks to the following groups of people;

• Corporate Executives
• Business People
• Military Men and Women
• Sports Men and Women
• Everyone who resides in our target locations

Our Competitive Advantage

We are aware of the growing competition in the food truck industry in India and we are prepared to compete favorably with other food truck companies in Bangalore – Karnataka and throughout India.

Karina Mahatma® Food Truck, LLC is launching a standard food truck company that will indeed become the preferred choice of residents of Bangalore – Karnataka and every city where we intend deploying our food trucks.

Part of what is going to count as competitive advantage for Karina Mahatma® Food Truck, LLC is the vast experience of our management team, we have people on board who understand how to grow a business from the scratch to becoming a national phenomenon. So also, the wide varieties of fast food that we retail and our excellent customer service culture will count as a strong strength for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Karina Mahatma® Food Truck, LLC is established with the aim of maximizing profits in the food truck industry in India and we are going to go all the way to do all it takes to sell a wide range of fast foods and drinks to a wide range of customers.

Karina Mahatma® Food Truck, LLC will generate income by offering the following products and services;

• Selling burgers, sandwiches, pizza and pasta chicken and chips, barbecued beef, fish, bacon, pork, chicken, turkey or corn et al, coffee and other beverages, such as water, juice and sodas

10. Sales Forecast

One thing is certain when it comes to food truck business, if your meals are tasty and if your food truck is easily accessible, you will always attract customers cum sales that will sure translate to increase in revenue for the business.

We are well positioned to take on the available market in Bangalore – Karnataka and every city where our fast food will be sold and we are quite optimistic that we will meet our set target of generating enough profits from our first six months of operation and grow the business and our clientele base.

We have been able to critically examine the food truck industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Bangalore – Karnataka, India.

• First Fiscal Year: INRs. 200,000
• Second Fiscal Year: INRs. 450,000
• Third Fiscal Year: INRs. 750,000

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products as we do within same location where our food trucks will transverse. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing and Sales Strategy

Before choosing a location to launch Karina Mahatma® Food Truck, LLC, we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available market where we intend positioning our business. We have detailed information that we were able to utilize to structure our business to attract the number of customers we want to attract per time.

We hired experts who have good understanding of the food truck industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Bangalore – Karnataka and subsequently throughout India.

In summary, Karina Mahatma® Food Truck, LLC will adopt the following sales and marketing approach to sell our fast foods and drinks;

• Introduce our food truck brand by sending introductory letters to residents, park managers and other stakeholders both in Bangalore – Karnataka and in other cities in India
• Engage in roadshows in targeted communities from time to time to sell our products and promote our food truck company
• Advertise our products in community-based newspapers, local TV and radio stations
• List our business and products on yellow pages ads (local directories)
• Leverage on the internet and mobile apps to promote our food truck brands
• Engage in direct marketing and sales
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Despite the fact that our food truck company is a standard one with a wide range of meals and drinks that can favorably compete with other leading brands in India, we will still go ahead to intensify publicity for all our products and brand.

Karina Mahatma® Food Truck, LLC has a long – term plan of deploying our food trucks in various locations all around India and also to sell our franchise which is why we will deliberately build our brand to be well accepted in Bangalore – Karnataka before venturing out to other cities in India.

As a matter of fact, our publicity and advertising strategy is not solely for selling our foods and drinks but to also effectively communicate our brand. Here are the platforms we intend leveraging on to promote Karina Mahatma® Food Truck, LLC;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like Instagram, Facebook, twitter, et al to promote our brand
• Install our billboards in strategic locations all around Bangalore – Karnataka
• Engage in roadshows from time to time in targeted communities
• Distribute our fliers and handbills in target areas
• Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing our products.
• Ensure that all our staff members wear our customized clothes, and all our food trucks are customized and well branded.

12. Our Pricing Strategy

The prices of our burgers, sandwiches, pizza and pasta chicken and chips, barbecued beef, fish, bacon, pork, chicken, turkey or corn et al, coffee and other beverages will be what is obtainable in the market. In fact, we will try as much as we can to sell below the industry’s average so as to attract loads of customers.

We are aware that pricing is one of the key factors that gives leverage to a food truck business, and it is normal for consumers to go to places where they can get good deals. We are aware of this trend which is why we have put structures in place that will enable us retail our products a little below the industry’s average.

We will ensure that we reduce our overhead, and we are ready to run on low profit margin for the first six months of launching the business just for the purpose of attracting loyal clients and build our clientele base. We also have plans in place to discount our fast foods and drinks once in a while and also to reward our loyal customers.

• Payment Options

The payment policy adopted by Karina Mahatma® Food Truck, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the government of India.

Here are the payment options that Karina Mahatma® Food Truck, LLC will make available to her clients;

• Payment with cash
• Payment via online bank transfer
• Payment via check
• Payment via Point of Sale Machines (POS Machines)
• Payment via mobile money transfer

In view of the above, we have chosen banking platforms that will enable our clients make payment for food and drinks purchased without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our fast foods and drinks and training services.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place for your back office, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a food truck business; it might differ in other countries due to the value of their money.

When it comes to starting a food truck business, the major areas that you will look towards spending the bulk of your cash is in the purchase of food trucks, latest grillers and accessories. Aside from that, you are not expected to spend much except for paying of your employees and the purchase of supplies.

These are the key areas where we will spend our startup capital on;

• The total fee for registering the business in India – INRs. 9,200
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – INRs. 27,300.
• Marketing promotion expenses for the grand opening of Karina Mahatma® Food Truck, LLC; in the amount of INRs. 13,500 and as well as flyer printing (2,000 flyers at INRs. 1.00 per copy) for the total amount of – INRs. 2,000.
• The cost for hiring Business Consultant – INRs. 22,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – INRs. 22,400.
• Other start-up expenses including stationery ( INRs. 5,000 ) and phone and utility deposits ( INRs. 12,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – INRs. 100,000
• The cost for start-up inventory (beef, oil, sugar, eggs, butter, flour and milk, chocolate chips, nuts, coconut, cocoa powder, pudding, mini-marshmallows and peanut butter and packaging materials et al) – INRs. 80,000
• Storage hardware (bins, rack, shelves, food case) – INRs 13,720
• The cost for counter area equipment (counter top, sink, ice machine, etc.) – INRs. 19,500
• Cost of purchase of a well – equipped mobile food trucks – INRs. 120,000
• The cost for store equipment (cash register, security, ventilation, signage) – INRs. 14,750
• The cost of launching a website – INRs. 7,000
• The cost for our opening party – INRs. 15,000
• Miscellaneous – INRs. 10,000

We would need an estimate of seven hundred thousand Indian Rupees ( INRs 700,000 ) to successfully set up our food truck business in Bangalore – Karnataka.

Generating Startup Capital for Karina Mahatma® Food Truck, LLC

Karina Mahatma® Food Truck, LLC is a family business that is owned and financed by Mrs. Karina Mahatma and her immediate family members. They do not intend to welcome any external business partners which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

These are the areas we intend generating our startup capital;

• Generate part of the startup capital from personal savings and sell of stocks
• Source for soft loans from family members and friends
• Apply for loan from the bank

N.B: We have been able to generate about INRs. 700,000 ( Personal savings INRs. 180,000 and soft loan from family members INRs. 20,000 ) and we are at the final stages of obtaining a loan facility of INRs. 500,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Karina Mahatma® Food Truck, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to retail our fast foods and drinks a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.

Karina Mahatma® Food Truck, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Conducting feasibility studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Packaging, Marketing/Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress
• Purchase of mobile food trucks with standard kitchen: Completed

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How to Start Food Truck Business in India | Cost and Profit

Introduction.

Starting a food truck business in India can be an exciting and profitable venture for aspiring entrepreneurs. With the growing popularity of street food and mobile dining experiences, food trucks offer a unique and convenient way to serve delicious meals to customers on the go. In this article, we will guide you through the process of starting a food truck business in India, covering the necessary steps, costs, and potential profits.

Research and Planning:

Before diving into the food truck business, conducting thorough research and planning is essential. Begin by understanding the current market and analyzing the competition. Identify your target audience and niche market, as this will help you differentiate your offerings and stand out from the crowd. It is crucial to create a solid business plan that outlines your goals, target market, menu, pricing, and marketing strategies.

Legal Requirements:

Operating a food truck in India requires complying with certain legal requirements. Acquire the necessary licenses and permits from local authorities, which may include food safety licenses, health permits, and vehicle permits. Register your business by obtaining the appropriate certifications and documents. Adhere to food safety guidelines and practices to ensure quality and maintain customer trust.

Setting up a Food Truck:

Choosing the right truck or vehicle for your food truck business is crucial. Consider factors such as size, mobility, and kitchen layout when selecting a truck. Design the layout efficiently to optimize space and functionality. Equip your food truck with high-quality cooking equipment, refrigeration units, serving counters, and storage compartments.

Menu and Pricing:

Designing a unique and enticing menu is key to attracting customers. Consider the local food preferences and trends, while also providing a variety of options for different dietary requirements. Developing a competitive pricing strategy is essential to strike a balance between profitability and customer affordability.

Sourcing Ingredients and Suppliers:

Maintaining the quality of your food is crucial for the success of your food truck. Find reliable and cost-effective suppliers who can consistently provide fresh and high-quality ingredients. Establish relationships with local producers and farmers to support local businesses and ensure the freshness of your ingredients.

Marketing and Promotion:

Building a strong brand identity is crucial for the success of any business. Develop a unique brand name, logo, and visual identity that reflects the essence of your food truck. Utilize social media platforms and online food delivery apps to reach a wider audience. Participate in local food festivals, events, and collaborations to create buzz and attract more customers.

Operations and Management:

Efficiently managing the operations of your food truck is crucial for smooth functioning. Hire a team that is passionate about food and customer service. Provide thorough training to ensure consistency and quality. Implement systems for inventory management, waste reduction, and hygiene practices to maintain cleanliness and comply with food safety standards.

Also Read: How to start Chick blast franchise india | Cost and profit

Cost and Profit Analysis:

Starting a food truck business requires an initial investment that includes purchasing or leasing a truck, equipment, licenses, and permits. Calculate your startup costs accurately to avoid any financial surprises. Additionally, consider operational expenses such as fuel, ingredients, labor, and maintenance costs. Estimate your potential profits by analyzing sales projections, customer demand, and market trends.

Challenges and Tips for Success:

Running a food truck business comes with its own set of challenges. Unpredictable weather conditions can affect customer footfall, so it’s important to have contingency plans in place. Long working hours and continuous food preparation can lead to fatigue, hence prioritizing self-care is vital. Building customer loyalty through excellent service and consistently delivering quality food is key to long-term success.

Conclusion:

Starting a food truck business in India can be a rewarding and profitable endeavor if done right. By conducting thorough research, complying with legal requirements, focusing on menu development, effective marketing, and efficient operations, you can create a successful food truck brand. Remember, patience, perseverance, and dedication are crucial qualities to navigate the challenges and establish a strong presence in this booming industry.

How much does it cost to start a food truck business in India?

The cost of starting a food truck business in India can vary depending on factors such as the size and condition of the truck, equipment, licenses, permits, and initial inventory. On average, it can range from INR 5 lakhs to 20 lakhs.

How can I find the right suppliers for my food truck business?

To find reliable suppliers for your food truck, research local markets, ask for recommendations from other food truck owners, and attend food industry trade shows. Establishing personal connections and conducting quality checks will help you find the right suppliers.

Is it necessary to have a presence on social media for a food truck business?

Having a presence on social media is highly recommended for a food truck business. It provides a cost-effective platform to promote your brand, engage with customers, and inform them about your location, menu updates, and upcoming events.

Can I operate a food truck business part-time?

Yes, operating a food truck business part-time is possible depending on your availability and target market. However, bear in mind that it may require substantial effort and coordination, especially during peak hours and events.

How can I stand out from the competition in the food truck industry?

To stand out from the competition, focus on offering unique and high-quality menu items, providing excellent customer service, implementing creative branding and marketing strategies, and continuously adapting to emerging food trends.

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Food Trucks Just Don't Work the Way as Shown In Movies, says This Entrepreneur Basically a restaurant on the go, the concept of food trucks is growing fast in India. This is how you can start one

By Shipra Singh Jan 30, 2020

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Jyoti Ganapathy and Satya Sashikanth Koniki always wanted to start a restaurant serving south Indian cuisine. Due to permit issues and inability to find the desired location, the duo instead started a food truck just to start off and build a customer base. What started as a stop-gap arrangement is now a full-fledged business for the Delhi-based couple. "Once the truck and the business got moving, we realized that this is an untapped business opportunity in India," says Ganapathy, co-founder of Dosa Inc.

Started in 2013, Dosa Inc now serves over 13,000 customers across Delhi-NCR every month and claims to be the largest food truck company in India offering south Indian cuisine.

The concept of food trucks is growing fast in India, albeit in metro cities. A food truck is basically a restaurant on the go.

What is a Food Truck

Largely a Western idea, food trucks function in two formats.

The first type is the stand-alone eateries in the shape and size of trucks generally parked outside office buildings and malls. However, they are regular food hawkers parked in the same spot every day.

Another type is the ones that drive around the city and park in different areas on different days. They are a mobile eatery in true sense as they cook and serve while on move. Food trucks typically don't have a fixed location and serve in several parts of the city by reaching customers. Under this model, one can also set up a base kitchen for bulk cooking when the volume of work increases.

Why Start a Food Truck

Food truck is emerging to be a preferred food business model over restaurants for a variety of reasons.

Flexible location: A wrong location in restaurant business can break your business. In the case of a restaurant, location once fixed cannot be changed. However, a food truck gives you the freedom to choose and operate from multiple locations.

Lower investment: Setting up cost of a food truck is 30-35 per cent lower compared with a brick and mortar restaurant. You need lesser space, equipment, cutlery and furnishing. Even running costs of a food truck work out cheaper as you save substantially on staffing, electricity and rent/lease.

Room for experimenting: Lower costs make food trucks a better entry point for beginners as you have plenty of room to experiment and hone your product without worrying about financial risk.

Better outreach: Mobility factor gives food trucks an upper hand in customer outreach compared with a restaurant. "A stand-alone restaurant is dependent on the customer to find it, whereas a food truck can get itself out there to as many places and get customers to taste its food," says Ganapathy.

But, a word of caution here, food trucks are anything but what is shown in movies. "A lot of people start a food truck with a certain perception having seen the movie Chef or something on Eat St show. They imagine a big truck on the street, they imagine people flocking to it and eating the food. But that is just not the way a food truck works," says Ganapathy.

Running a food truck requires much more footwork and marketing to pull customers to try your food.

How to Start?

The foremost requirement of a food truck is the vehicle. The size of the vehicle mainly depends on the kind of cuisine you're looking to serve. For instance, a regular fast-food truck serving burgers, sandwiches and shakes may not require heavy infrastructure. So, a medium-size tempo traveler will serve the purpose. But if you want to open a pizza parlor, that'll require heavier fittings, such as an oven, a bigger vehicle like a traveler or a medium-sized truck will suffice.

Another food truck business model is to set up a base kitchen in the city where all the food is prepared and the truck is used to sell the food on the go. Dosa Inc works on this model. "In the case of south Indian cuisine, sambhar and chutneys have to be prepared in bulk and not separately with each serving. We had set up a dark kitchen quite early in our business because of the volume of food we had to prepare at once," Ganapathy explains.

Similarly, for an ice cream parlor, you need bigger machinery to prepare different flavors of ice-creams. So for such models, you can open a base kitchen for bulk cooking and set up a last-mile kitchen in the vehicle with basic fittings like a stove, fridge and a sink for heating and selling the food on the go.

Licenses and Permissions

Like any food business, you have to register with Food Safety and Standards Authority of India to start a food truck. You won't need a license at the beginning as it's required only when your annual revenue is more than INR 12 lakh.

Get a state or national permit for the vehicle depending on how many cities your truck will be moving in. For instance, Noida falls in Uttar Pradesh, whereas Gurgaon is in Haryana; so a national permit is mandatory for operating in Delhi-NCR.

You may also have to get a health trade license from the Municipal Corporation of Delhi if you have a base kitchen and fire no-objection certificate if the space of your kitchen is over 90 sq. mt.

Choosing Location

After licenses, the most important step is to choose the right locations for your truck and how to market it. Ganapathy says the target audience of food trucks is families and residential neighborhoods. "We worked out our model not in streets or commercial areas because that's not where the demand of our food was. It was in residential areas," she says. She recommends choosing gated colonies, societies, lanes around hostels as your primary locations.

For marketing, you can distribute pamphlets and run campaigns on social media. WhatsApp has become the new-age method of marketing, explains Ganapathy. "Lot of societies are on MyGate or SocietyConnect; so we market our visits through WhatsApp groups." Most importantly, the truck will market your business so make sure to design it nicely and park it in areas where it is properly visible.

Once you have located the areas you want to operate in, work out a monthly schedule with dates assigned to different locations. For instance, Dosa Inc has fixed different residential colonies they go to on different days in a week. This way, their customers also know when to expect them.

Investments and Costs

You will have to make an initial investment on the vehicle and fittings, while the other costs will be your operational expenses.

One-time Investment

Truck: Key expense in starting a food truck is a fully-equipped vehicle whose price will depend on its size. A smaller tempo kind of vehicle will cost INR 3-4 lakh whereas a bigger vehicle like traveler will cost upwards of INR 8 lakh. A used vehicle will obviously cost 50-60 per cent less compared with a new vehicle.

Fittings: Equipment fittings will cost INR 4-5 lakh that includes both base kitchen and truck fittings.

Payment infrastructure: You will need a Web-based point-of-sale (PoS) terminal for billing, inventory keeping, CRM, analytics, etc., which will be INR 16,000-20,000 per terminal. You may also have to buy a computer or laptop and a printer for PoS that can cost you up to INR 35,000.

Miscellaneous: Apart from these defined expenses, add another INR 50,000 that will be spent initially for marketing, license fees and other miscellaneous costs.

Recurring costs

Staffing : Bulk of your costs will go into staffing. One head chef and one assistant to handle operational tasks can put you down by INR 50,000-60,000 per month. Of course, if you are the chef you'll save on this cost to a great extent and will only be required to hire assistants.

Utilities: Smaller repeat expenses will include fuel of the vehicle, annual insurance renewal, electricity bill and groceries and these will not be more than 25 per cent of your revenue.

Parking rental: The RWAs or local municipality of the area where you park charge a nominal rent every time you visit that locality.

Base Kitchen Rent (optional): If you plan to set up a base kitchen, a medium size shop in an inexpensive location will cost you around INR 18,000-22,000 per month.

What You Earn

Like any food business, a food truck will also take 3-6 months to start getting sizeable customers. But you have to ensure that you start serving a minimum of 50 orders per day to build a sustainable business. A more effective way to achieve this would be to visit fixed residential areas on specific days to establish a base of repeated customers. You can also look at taking bulk orders for offices and parties.

To give you an estimate of what you can earn from a food truck business, once you have a sizeable customer base of 80-100 orders per day, you can easily book a profit of 35-40 per cent on your revenue after removing all the costs borne by you. While staffing will be 30-35 per cent of the revenue, groceries and other utilities will be another 30 per cent.

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How to Start a Food Truck Business in India: Legal Permits, Locations & More

Opening a food truck means less investment and maintenance compared to a restaurant and covering as many locations as possible. Here’s a simple guide to get you started

O perating a food truck is much more than just making delicious food. It is about finding the right vehicle, acquiring necessary legal permissions, choosing your staff and finally identifying locations to maximise sales.

Take for example the case of Delhi-based Dosa Inc, a food truck business started by Jyoti and her husband Satya in 2012. After eight years, the truck caters to a network of 50,000 households across Delhi, Gurugram and Noida. They also have to be alert about the legal permits and hygiene protocols even today.

Like most food truck ventures, Dosa Inc was also started after the couple realised they wanted to take their local (South Indian) cuisine to people but at a low investment and easy maintenance of the vehicle. Another advantage of opting for movable eatery was to cover as many localities as possible. This included both, residential and commercial areas.

Dosa Inc was established with an initial investment of Rs 10,00,000 and today it clocks revenue up to Rs 1.5 crores. They may sell their food items at lower prices compared to restaurants but they have still managed to churn profits and expand their business over the years. Read their full story here .

Knowing how tedious the process can get, Jyoti shares her experience of setting up a food truck in a hassle-free manner.

Infrastructure

Infrastructure includes truck, base kitchen, staffing and locations.

The size and type of truck will depend on the cuisine you want to serve. Also, take into account the purpose of your truck, if it will be driven around or parked in a fixed location.

“The cost can be anywhere between Rs 5,00,000 to Rs 25,00,000. This will depend on the purpose of the truck, its cuisine and if it’s a second hand or a new truck. Our fully fitted out trucks have cost us Rs 10,00,000,” says Jyoti.

If opting for an old or second-hand truck, check for fitness certificate, registration, road tax receipt, and insurance. Refrain from purchasing really old trucks as they emit heavy pollution.

In the beginning, the couple had purchased a tempo traveller but soon realised it was bulky and couldn’t move with heavy equipment in it. So, they switched to a CNG-run TATA Ace. The truck is environment-friendly as it does not cause vehicular emissions. Plus, while crossing borders at Gurugram and Noida, they don’t have to pay the Green fee, which amounts to Rs 800.

Next is the base kitchen (is optional) where the majority of the heavy cooking and cleaning is done, this needs to be in a commercial location and can be in a quiet place with lower rents. Dosa Inc’s sambhar and chutney is prepared at the base kitchen.

Staff hiring depends on the size of the truck and the type of cuisine served. In the case of Dosa Inc, the founders multi-trained the staff. For example, the driver of the truck is also the cashier.

Location is the most crucial factor that determines the growth of your business. “Decide the location as per the purpose of your truck – do you intend to remain in one location or intend to move between locations. You will also need permissions from local authorities, residential buildings and cops to function. Do not forget to study the footfall and demand analysis of the location,” she adds.

Cost Break Up of Running the Truck

• Raw materials, packaging material, cylinder, electricity, etc: 25% COGS
• Staff salaries, accommodation, food for staff: 30%
• Rent of base kitchen rent and location: 15%
• Equipment and vehicle repair and maintenance: 10% (fitness/permits/insurance, and other wear and tear)

Legal Permits

According to the FSSAI website, you will need the following licences and permits:

• Employer Identification Number: The Revenue department uses this number to recognise your business and collect the relevant taxes from you, and employees.
• FSSAI License: Needed only during registration, the license is needed if your turnover crosses Rs 12 lakh.
• Business License: This is needed to run a food business. Depending on the city and state, and scope of services given, you may be charged a portion of your total sales or an annual fee, along with the license fee.
• Vehicle License: You will require a truck and driver license. Depending on the width and weight of the vehicle, some states may need a commercial driver’s license to run the vehicle.
• Seller’s Permit: In some states, food truck owners require you to apply for a seller’s permit so you can buy food and other goods at wholesale prices without paying sales tax.
• Health Department Permit: The inspection and approval of your local health department will check if the quality of the food you serve is being maintained and under hygienic conditions.
• Fire Certificates: The fire department will inspect your food truck if you’re practising cooking equipment on board. Fire Department
• NOC for the kitchen is needed if it is over 90 sq meters in area.
• Vehicle permits and fitness: Most of these have to be renewed yearly.
• GST registration: This is needed once the turnover crosses Rs 20 lakhs

For each of the above-mentioned permits/licenses, you will need documents like PAN card, Proprietor’s KYC, some architect’s drawings of the kitchen, vehicle ownership related documents (for permits & fitness) and insurance.

Click here to know more.

All images are sourced from Dosa Inc

Edited by Yoshita Rao

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Food Truck Business Plan Template

What is a Food Truck Business Plan?

A food truck business plan outlines the concept, target market, and financial projections of a food truck business. It also includes a detailed strategy outlining the focus areas, objectives, targets (KPIs), and related projects that need to be implemented in order to achieve the desired financial goals. The food truck business plan serves as a blueprint for the entrepreneurs and owners to follow as they start up their business.

What's included in this Food Truck Business Plan template?

• 3 focus areas
• 6 objectives

Each focus area has its own objectives, projects, and KPIs to ensure that the strategy is comprehensive and effective.

Who is the Food Truck Business Plan template for?

This food truck business plan template is designed for entrepreneurs and owners looking to start their own food truck business. The template provides a comprehensive structure for them to outline their concept, target market, and financial projections, as well as a detailed strategy for achieving their desired financial goals.

1. Define clear examples of your focus areas

Focus areas are the major components of your food truck business plan. Within each focus area, there should be defined objectives and related projects that help achieve those objectives. Examples of strategic focus areas that could fall under a Food Truck Business Plan could be: Develop Food Truck Concept, Establish Legal Structures, and Develop Financial Models.

2. Think about the objectives that could fall under that focus area

Objectives are the goals that need to be achieved in order to reach the desired outcome of the focus area. They should be detailed and specific, and should include measurable targets (KPIs) that can be used to assess progress. Examples of some objectives for the focus area of Develop Food Truck Concept could be: Define Target Market, and Create Unique Menu.

3. Set measurable targets (KPIs) to tackle the objective

KPIs (Key Performance Indicators) are measurable targets that help evaluate progress. They should be set for each objective and should be specific and measurable. Examples of KPIs include number of customers, sales, or costs.

4. Implement related projects to achieve the KPIs

Projects are the actions that need to be taken in order to achieve the KPIs. They should be related to the objectives and should be detailed and specific. Examples of projects include market research, recipe development, and applying for licenses and permits.

5. Utilize Cascade Strategy Execution Platform to see faster results from your strategy

The Cascade Strategy Execution Platform helps entrepreneurs and business owners quickly and efficiently track the progress of their business plans. The platform helps to identify areas that need improvement, set measurable targets, and track progress in real-time, enabling faster results from their strategy.

Food Truck Business Plan Template

Written by Dave Lavinsky

Food Truck Business Plan

You’ve come to the right place to create your food truck business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their food trucks.

Food Truck Business Plan Example & Template

Below is a template to help you create each section of your food truck business plan.

Executive Summary

Business overview.

Zesty Zane’s Food Truck is a new food truck located in Portland owned by local critically acclaimed chef, Zane Benedict. The menu will consist of popular food options that consist of burgers, sandwiches, gyros, and tacos uniquely made with the creativity and uniqueness that Chef Zane can offer. Chef Zane’s eclectic style and consistency make him a favorite among Portland foodies and his food truck will garner a loyal following amongst young professionals and college students.

Zesty Zane’s Food Truck will be located in the immensely popular food truck pod known as Cartopia. Chef Zane will receive lots of exposure by being a part of this community as there are plenty of neighboring food trucks, bars, nightlife, and entertainment options nearby. With the popular location of Cartopia and an impressive Instagram social media following, Zesty Zane’s Food Truck is destined to become a local go-to dining destination for anyone craving delicious, interesting fare at an affordable price.

Products Served

The following are the products to be offered by Zesty Zane’s Food Truck:

• Sandwiches & paninis
• Assorted non-alcoholic beverages

Customer Focus

Zesty Zane’s Food Truck will target customers in Portland who live, work, or socialize near Cartopia. This area is frequented by numerous young professionals, college students, and the late-night crowd who regularly eat at food trucks. Anyone seeking trendy dining options are the target customers of Zesty Zane’s Food Truck.

Management Team

Chef Zane has worked in the culinary industry for over ten years and is accustomed to the long, demanding hours of operating a kitchen. He attended culinary school in San Francisco and returned home to Portland to be a part of the world-renowned food scene that Portland has built for itself. After working under three award-winning chefs, Chef Zane is ready to venture out on his own and start his own business as a food truck.

Chef Zane Benedict will be the food truck owner and operator of his food truck. He will operate the food truck Tuesday through Sunday from 11:00 am until 1:00 am. Chef Zane will also employ two part-time cooks to assist him during peak hours of operation.

Success Factors

The following success factors will set Zesty Zane’s Food Truck apart from the competition:

• Exceptional cuisine made fresh with locally sourced ingredients.
• An eclectic menu that is unlike any other in the Portland food scene.
• Convenient location: Zesty Zane’s Food Truck will be located in a highly-trafficked food truck pod that is frequented by college students, young professionals, and night-life regulars.
• Delicious food at a good price. Zesty Zane’s food items will be cheaper than other food truck dishes without sacrificing quality.

Financial Highlights

Zesty Zane’s Food Truck is seeking $40,000 in debt financing to open its food truck. The funding will be dedicated for the purchase of the food truck, cooking supplies and equipment, working capital, three months worth of payroll expenses and opening inventory. The breakout of the funding is below:

• Purchase of food truck – $20,000
• Food truck kitchen supplies and equipment – $10,000
• Opening inventory – $2,000
• Working capital (to include 3 months of overhead expenses) – $3,000
• Marketing (website design and management) – $5,000

The following graph outlines the pro forma financial projections for Zesty Zane’s Food Truck:

Company Overview

Who is zesty zane’s food truck.

Zesty Zane’s Food Truck is a startup food truck business located in Portland, Oregon. The menu offerings are eclectic, made-to-order, bistro-type dishes served fresh and fast in the entertainment district of Portland. The ingredients are locally-sourced from independent food growers and artisans in and around the Portland region. The dishes are incorporated with an ingenious twist to commonly known popular food menu items. The menu options are simple dishes commonly seen at food trucks, but Chef Zane adds his own spin to the typical fare – sandwiches, gyros, burgers, and tacos all made his way unlike any other food establishment.

Zesty Zane’s Food Truck is owned and operated by Zane Benedict, a local Chef classically trained in culinary school and under the most prestigious chefs in Portland. Chef Zane is known for his creativity, consistency, and quickness in the kitchen and his dishes receive multiple positive reviews in the restaurants Zane has been employed. Chef Zane specializes in fine French, Italian, and Mediterranean cuisine with a creative twist not typically found in other restaurant establishments.

Zesty Zane’s Food Truck History

After graduating from culinary school in 2008, Chef Zane Benedict worked as a sous chef in three different restaurants in Portland. All of the chefs Zane worked under were award-winning, locally-acclaimed chefs that frequently trained their apprentices to prepare dishes up to their expectation and standards.

Chef Zane learned a great deal from these chefs and garnered a reputation himself for his creativity and consistency. Now that Zane feels he has learned as much as he can from the senior chefs, he would like to venture out on his own and start his own business. Due to the large amount of capital required to open a full-scale restaurant, Chef Zane decided a food truck business was the most cost-effective option for his operation.

Since incorporation, Zesty Zane’s Food Truck has achieved the following milestones:

• Developed the food truck’s branding image, social media, and website.
• Has a soft hold on a used food truck that recently went out of business.
• Developed and finalized the menu of the dishes Chef Zane will serve.
• Obtained a food permit license to be able to prepare and sell food and drinks in Portland County.
• Obtained a sales and use tax permit for use in Portland County.

Zesty Zane’s Food Truck Products

The following are the types of menu items Zesty Zane’s Food Truck will produce:

Food Truck Industry Analysis

Food truck vendors will continue to perform well over the next five years, benefiting from consumers with deeper pockets who are able to spend on pricier gourmet food options. Revenues are expected to increase to $1.4 billion during this time period.

Food Truck industry operators are expected to continue to experience growth, as generally positive economic conditions and momentum from the gourmet food movement propel growth.

Consumers nowadays demand higher-quality food, a wider variety of styles and tastes, better presentation and, most importantly, more healthy menu options. Therefore, operators that include healthy options on their menus will be best situated for success over the next five years. Vendors that continue to offer unique food options will also be in a strong position by carving out a niche and developing a loyal customer base.

The food truck industry will also benefit from an increase in the urban population, which is expected to comprise the majority of the US population in five years. The food truck industry benefits from agglomeration because it relies on high foot traffic. Additionally, urban dwellers are also more likely to purchase meals rather than cooking at home due to their above-average incomes and limited spare time.

Customer Analysis

Demographic profile of target market.

Zesty Zane’s Food Truck will target the population of Portland that frequently dines in the entertainment district. There is a large food truck area of Portland known as Cartopia, where Chef Zane will set up his business. This area is home to numerous dining establishments, nightlife, bars, clubs, and food trucks. The target market of this area are usually young professionals and college students who have disposable income.

The precise demographics for Portland, Oregon are:

Customer Segmentation

Zesty Zane’s Food Truck will primarily target the following customer profile:

• Local residents of Portland who partake in late-night activities such as socializing with friends or bar-hopping
• Business professionals that work and reside in the Portland Cartopia area – law offices, hospitals, clinics, insurance agencies, retail, and schools
• College students who are in search of fast, cheap, and trendy eats

Competitive Analysis

Direct and indirect competitors.

Zesty Zane’s Food Truck will be competing with other food trucks in the Portland community. A profile of each competitor is below.

Potato Champion

Potato Champion is a local favorite of Portland foodies that is also located in Cartopia. Started in 2008, Potato Champion quickly established itself as a fan favorite for late night food. Potato Champion serves a limited menu of hand cut, twice fried Belgian style fries, a variety of dipping sauces, and their own version of the Canadian classic Poutine, as well as other fry related dishes. They pride themselves in using the highest quality ingredients and focus on an inventive menu that combines tastes from all over the world with one of the most popular foods found on the globe, the french fry.

Potato Champion is open for lunch, dinner, and late-night. They are available for catering and delivery through Postmates. Followers of Potato Champion are also able to purchase swag from their store that includes music, bags, pins, and hoodies.

Started by John Eads in 2009, Pyro Pizza was built out of a 8’x16’ food cart that he custom-built with a cast iron wood fire oven. Aside from wood fired pizza, John also makes his own sodas using all real ingredients and natural cane sugar. John’s belief is that good ingredients make good food. His crew makes many components in-house and sources regional flour, pepperoni, sausage, blue cheese, soda ingredients, and seasonal produce all from Portland businesses and farms. In 2015, Pyro’s expanded to a new sandwich cart, Pyro’s Wicked Wiches – a scratch-made sandwich, soup, chips and cookie food cart.

Pyro’s serves an assortment of wood fire pizzas made from scratch. Their choices are margherita, marinara, arugula and mushroom, pepperoni, quattro formaggi, fennel sausage, veggie bianca, breadsticks, salads, and sodas.

Chicken and Guns

Chicken and Guns is another local favorite among Portland foodies. Also found in Cartopia, Chicken and Guns serves up Latin American chicken, wings, tacos, salad, soup, and their “guns” are crispy seasoned potatoes. The chicken is served by the quarter, half, or whole bird. Another item they are acclaimed for is their peruvian aji sauce, habanero carrot sauce and chimichurri sauce. They have been named the best fried chicken in Portland by the PDX Eater.

Chicken and Guns is open everyday from 11:00 am to 10:00 pm for takeout and delivery options. With a large Instagram and social media following, there is always destined to be a line at the Chicken and Guns food truck.

Competitive Advantage

Zesty Zane’s Food Truck offers several advantages over its competition. Those advantages are:

Food Truck Marketing Plan

Zesty Zane’s Food Truck will offer a unique value proposition to its clientele:

• Delicious food made fresh with locally sourced ingredients using exquisite techniques.
• Located in the ultra-hip food truck area known as Cartopia.
• Great food at a great price. The menu offerings of Zesty Zane’s Food Truck will be accessible to customers of all walks of life.

Promotions Strategy

The promotions strategy for Zesty Zane’s Food Truck are as follows:

Social Media

Zesty Zane’s Food Truck’s main source of marketing will be through social media, primarily their Instagram page. Chef Zane has become adept at taking appealing photographs of his dishes. He will post pictures of his menu and add details on the location and hours of operation. His food truck account already has over 3,000 followers and he posts daily “Coming Soon” teaser photos.

Zesty Zane’s Food Truck will be parked in the immensely popular food truck hub known as Cartopia of Portland. There are dozens of food trucks located in this pod and there is always a crowd of people. Cartopia hosts bands, art shows, shopping events, and other social gatherings to enhance the entertainment vibe of the pod. By being part of Cartopia, Zesty Zane’s Food Truck will receive lots of exposure and traffic.

SEO Website Marketing

Zesty Zane’s Food Truck plans to invest funds into maintaining a strong SEO presence on search engines like Google and Bing. When a person types in “local food truck” or “top food trucks in Portland”, Zesty Zane’s Food Truck will appear in the top three choices. Zesty Zane’s will also invest in their website also to ensure that it is user friendly, always up to date, and displays professional photographs of its menu items and location.

Third Party Delivery Sites

Zesty Zane’s Food Truck will maintain a presence on sites like GrubHub, Uber Eats, Doordash, and Postmates so that people looking for local food with the option of delivery will see Zesty Zane’s listed.

The pricing of Zesty Zane’s Food Truck will be moderate and on par with other food trucks so customers feel they receive value when purchasing their menu items.

Operations Plan

The operations plan for Zesty Zane’s Food Truck is relatively simple as its overhead and cost is small. The functional roles for its employees are as follows:

Operation Functions:

• Chef Zane will run the food truck operation. He will be in charge of inventory, menu creation, food truck marketing, customer service, and bookkeeping. Chef Zane will work every day that he chooses to open the food truck. Chef Zane plans on operating the food truck Tuesday through Sunday 11:00 am to 1:00 am.
• Two part-time cooks that will alternate helping Chef Zane during the hours of operation. As business picks up, there will be two cooks at the same time assisting Chef Zane during peak hours.

Milestones:

Zesty Zane’s Food Truck aims to open in the next 3 months. The following are the milestones needed in order to obtain this goal.

4/15/202X – Purchase food truck

5/1/202X – Finalize menu

5/15/202X – Social media and advertising campaign begins

6/1/202X – Finish cleaning up the food truck and prepare it for operation

6/10/202X – Purchase food and drink inventory, stock truck, and park it at Cartopia

6/11/202X – Grand Opening of Zesty Zane’s Food Truck

Zesty Zane’s Food Truck will be owned and operated by Chef Zane Benedict.

Chef Zane Benedict, Food Truck Owner

Chef Zane Benedict is a Portland native who attended culinary school in San Francisco and returned to Portland to become a part of the world-renowned food scene Portland is uniquely known for. Zane was trained under three different chefs at fine dining establishments in downtown Portland and was awarded Best Sous Chef of Portland in 2017. Chef Zane has won two local culinary competitions, placed runner-up in a statewide competition, and participated in a cooking competition show on the Food Network.

Chef Zane has received numerous awards for his creativity and consistency of his food while being able to prepare dishes in a short amount of time. His ability to prepare food under pressure allows him the unique skill of serving numerous customers without having them undergo long wait times. This will keep customers happy and coming back for more.

Financial Plan

Key revenue & costs.

The revenue drivers for Zesty Zane’s Food Truck will come from the menu items being offered daily.

The cost drivers will be the ingredients and products needed to make the menu items (oil, bread, meat, chicken, produce, drinks) as well as the cooking materials (pots, pans, bowls, plates, utensils, etc.). Other cost drivers will be the overhead expenses of payroll for the part-time employees and propane for the food truck.

Funding Requirements and Use of Funds

• Food Truck Marketing (website design and management) – $5,000

Key Assumptions

The following table outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the business loan.

Initial Number of Customers Per Day: 50

Average Menu Item Cost: $9.00

Average Order per Customer: $15.00

Annual Cost for Maintenance of Truck: $10,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Food Truck Business Plan FAQs

What is a food truck business plan.

A food truck business plan is a plan to start and/or grow your food truck business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your food truck business plan using our Food Truck Business Plan Template here .

What Are the Main Types of Food Truck Companies?

There are a variety of types of food trucks, each specializing in a specific type of cuisine or food item. There are food trucks that sell burgers, cookies, ice cream, tacos, pizza, sandwiches, salads and more.  

What Are the Main Sources of Revenues and Expenses for a Food Truck Business?

The primary source of revenue for food truck businesses is its food and beverage sales. 

The key expenses for a food truck business are food costs, salaries, and transportation expenses. 

How Do You Get Funding for Your Food Truck Business?

Food truck businesses are typically funded through small business loans, personal savings, crowdfunding and credit card financing.  A well-crafted food truck business plan is essential to securing funding.

What are the Steps To Start a Food Truck Business?

Starting a food truck business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Food Truck Business Plan - The first step in starting a business is to create a detailed business plan for your food truck that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your food truck business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your food truck business is in compliance with local laws.

3. Register Your Food Truck Business - Once you have chosen a legal structure, the next step is to register your food truck business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your food truck business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Food Truck Equipment & Supplies - In order to start your food truck business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your food truck business. Food truck marketing includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful food truck business:

• How to Start a Food Truck Business

Where Can I Get a Food Truck Business Plan PDF?

You can download our free food truck business plan template PDF here . This is a sample food truck business plan template you can use in PDF format.

Other Business Plan Templates

Catering Business Plan Template Bakery Business Plan Template Coffee Shop Business Plan Template Event Venue Business Plan Template

How To Start A Food Truck In 2024

Updated: Apr 30, 2024, 10:28pm

Table of Contents

First steps to take, obtain permits and licenses, budgeting for truck and equipment, research locations, marketing and promotion, bottom line, frequently asked questions (faqs).

Launching your own food truck business can be an exhilarating venture for culinary entrepreneurs. Food truck owners enjoy having the freedom of taking their delicious creations directly out onto the streets for customers to experience, creating a unique dining experience while building customer loyalty. From conceptualization to marketing, we’ll cover everything you need to know to get started on this culinary adventure.

As with any business, starting a food truck requires setting up a solid foundation. This is accomplished by conceptualizing your menu, crafting a thorough business plan and registering your business. Developing a unique concept, outlining a comprehensive business plan and adhering to legal regulations will set you up for success in mobile gastronomy.

Conceptualizing Your Food Truck

Brainstorming food truck concepts blends culinary expertise, market research and innovative thinking. Feel confident exploring various ideas and combinations while gathering feedback from family, friends and potential customers to gauge interest. Here are a few things to consider:

• Begin with researching the market
• Recognize your passions and expertise
• Establish your target market
• Explore unusual cuisines
• Consider fusion cuisine and creative combinations
• Evaluate diets and dietary restrictions
• Integrate local and seasonal ingredients in your menu
• Establish an eye-catching brand and story

Writing a Business Plan

A comprehensive business plan serves as a roadmap for your venture, outlining your goals, strategies and financial projections. Here’s an outline of the key sections to include in your food truck business plan:

• Executive Summary: Provides an overview of your food truck concept, mission statement and critical points in the plan.
• Company Description: Introduces your food truck business, legal structure of your company (such as a limited liability company (LLC) ), ownership, management and location.
• Market Analysis: Analyzes the target market demographics, competition, industry trends and opportunities or challenges.
• Menu and Cuisine: Describes your menu offerings, unique selling points, ingredient sourcing and pricing strategy.
• Marketing and Sales Strategy: Outlines branding, marketing channels, pricing, promotions and customer acquisition and retention.
• Operations and Management: Covers daily operations, staffing requirements, vendor relationships and compliance with regulations.
• Financial Projections: Recognizes startup costs, revenue projections, cost of goods sold, operating expenses and profitability.
• Funding and Financing: Identifies funding needs, personal investment, loan options and potential investors or partnerships.
• Risk Assessment and Contingency Plans: Identifies risks, strategies for risk mitigation and contingency plans for unforeseen circumstances.
• Appendix: Includes supporting documents such as licenses, permits, leases, sample menus, market research data and resumes of key team members.

Business Structure and Registration

Establishing the appropriate business structure is an important next step to beginning a food truck. Selecting an ideal business structure, whether a sole proprietorship, partnership or limited liability company (LLC) , will significantly impact your personal liability, taxes and legal obligations.

You should research and may consult with an accountant or business attorney before making a choice. Once chosen, you must register with the appropriate government agencies. Adhering to all legal requirements and registering your business correctly allows you to legally operate your food truck.

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Most businesses need some form of license to operate, and that is no different for food trucks. Operating a food truck involves adhering to specific health, safety and operational regulations. Familiarize yourself with these requirements so you can navigate the licensing process efficiently.

Permits and Licenses Needed

Starting a food truck requires several permits and licenses. The specific permits required can vary depending on your location, so it’s essential to research the requirements of your city, county and state. Here are some common permits and licenses you may need:

• Food service establishment permit: This permit verifies the food truck meets health and safety standards. It typically requires an inspection of the kitchen and equipment.
• Mobile food vendor license: This license grants permission to operate a mobile food business within a specific jurisdiction. It may involve submitting an application, paying a fee and meeting specific requirements.
• Business license: Depending on your local regulations, you’ll need a general business license or a specific license for mobile food vendors. This license allows you to operate a business in the designated area legally.
• Parking permit: Some cities require a parking permit for food trucks to ensure that they are parked in designated areas and comply with parking regulations.
• Fire safety permit: Depending on local fire codes, you may need a fire safety permit to operate a food truck. This may involve inspections of your cooking equipment, fire extinguishers and ventilation systems.
• Seller’s permit: This allows you to collect and remit sales tax . This permit is typically obtained from your state’s taxing authority.
• Vehicle permits and inspections: Ensure your food truck meets the requirements of your local transportation department, including vehicle permits, registrations and inspections.

Remember to check with your local government agencies, such as the health department, business licensing department and municipality, to obtain accurate and up-to-date information on the permits and licenses required for your specific location.

How To Obtain Permits and Licenses

Obtaining a business license or permit for your food truck involves following specific steps. While the exact process can vary depending on your location, here are some general guidelines to get started:

• Research local requirements: Research the specific city, county and state requirements. Visit the official website of your local government or contact the local business licensing department to understand the necessary licenses and permits for operating a food truck. The state and county departments of health are other important resources that likely have requirements you must meet. You also may need a state and/or county sales tax license.
• Complete the application: Obtain the appropriate application form for the desired license or permit. Fill out the application accurately and provide all required information, such as your business details, ownership structure and contact information.
• Gather supporting documents: Determine the supporting documents needed to accompany your application. These may include proof of identification, vehicle registration, insurance coverage, food handler certifications and any other documentation specified by the licensing authority.
• Pay the fees: Most licenses and permits have a fee. Be prepared to pay the applicable fees, which vary based on the license type and jurisdiction. Check the accepted payment methods, such as cash, check or online payment options.
• Submit the application: Submit the completed application, along with the supporting documents and fees, to the designated licensing office or department. Ensure you meet submission deadlines and provide all necessary information to avoid processing delays.
• Await review and approval: Once submitted, your application will undergo a review process by the licensing authority. This may involve inspections, background checks or additional documentation requests. The review process can take several weeks or longer depending on the jurisdiction.
• Receive the license or permit: Upon approval, you will receive your business license or permit. It is important to display it prominently within your food truck as local regulations require.
• Renewals and compliance: Keep track of the expiration date of your license or permit. Ensure timely renewals to avoid operating without a valid license. Also, stay informed about ongoing compliance requirements, such as regular inspections or reporting obligations.

Understanding the various costs involved is important for budgeting and securing adequate funding. By comprehending each expense, aspiring food truck entrepreneurs can make more informed decisions and secure sufficient funding for their mobile culinary adventure.

Budgeting and Cost Planning

While the specific expenses can vary depending on location and menu complexity, here is an overview of typical costs to consider when starting a food truck:

• Vehicle cost
• Equipment and appliances
• Licenses and permits
• Kitchen supplies and utensils
• Initial inventory and ingredients
• Marketing and branding expenses
• Rental or leasing costs for commissary kitchens
• Insurance coverage

Some additional expenses to consider are operational expenses such as repairs, fuel, maintenance, registration fees, utilities and staffing and payroll. You can establish a detailed budget by researching and consulting industry professionals or experienced food truck owners to help plan finances efficiently.

Procuring Your Truck

Purchasing a food truck is one of the most expensive parts. Start by outlining your specific criteria, such as size, layout and equipment needs. Check online marketplaces, classified ads and specialist food truck websites to search for food trucks available for sale. There are even options to rent food trucks . You should also consider attending industry events or auctions to procure one at an affordable price.

You can verify ownership by obtaining necessary documents such as title and registration papers. When you make your decision on a truck, consider any customization or upgrades desired when making an offer. And of course, remember to get insurance and register your vehicle with the local regulations.

What Equipment Do You Need?

Operating a food truck requires specific equipment that allows you to prepare, cook, store and serve food and drinks. While the exact requirements depend on your offerings, here are some essential items commonly needed on food trucks:

• Cooking equipment: Grills, fryers, ranges, ovens, steamers and griddles
• Food preparation surfaces: Worktables and cutting boards
• Refrigeration and storage: Coolers, refrigerated prep tables and upright freezers
• Ventilation and exhaust systems: Exhaust hoods and fans
• Display and serving equipment: Hot holding cabinets, warming drawers, heat lamps, display cases and sneeze guards
• Kitchenware and utensils: Pots, pans, knives, cutting boards, measuring utensils, mixing bowls and serving utensils
• Handwashing and sanitation: Sinks with hot water, soap dispensers and paper towel dispensers
• POS systems and cash handling: Point-of-sale (POS) system to streamline order taking, payment processing and inventory management

Be mindful of local health department regulations and guidelines when purchasing equipment. Requirements can differ depending on where you reside. When making these choices, ensure they comply with safety and sanitation regulations.

A prime spot ensures maximum exposure, serving as a marketing and brand recognition tool for success. Selecting an area that aligns with your target demographic increases the odds that customers interested in your cuisine or concept will show up, creating an engaged clientele and eventually building up loyal clients.

An easily accessible location benefits you and your customers, streamlining their experience and increasing customer satisfaction. Deliberately choosing a site compliant with permits and regulations ensures legal operation. Consider the following when looking for a parking spot:

• Is your target audience nearby?
• Are any competitors parked there?
• What permits are required?
• Is there good visibility and accessibility?
• Does the area have any events or amenities (such as restrooms)?
• How much does it cost to park?

Effective marketing relies on employing multiple strategies and tactics, which are outlined below:

• Social media: Establish a solid social media presence on Facebook, Instagram and Twitter. You can take advantage of them to share photos of delicious dishes, updates regarding the menu or location announcements.
• Online presence: Positive online reviews play an integral part in building trust and credibility. Encourage satisfied customers to leave reviews on popular platforms such as Yelp, Google or Tripadvisor after experiencing excellent service. Also, remember to leverage technology by offering online ordering options through websites or food delivery apps.
• Email marketing: This marketing strategy provides regular communication channels between you and your target customer base by sending newsletters detailing promotions, new items or upcoming events.
• Signage: As part of your food truck marketing efforts, invest in eye-catching signage to showcase your brand, logo and menu offerings..
• Partnerships: Collaborations with local businesses, organizations or event organizers can expand your food truck’s exposure. Consider joining food truck events and festivals. You can also offer customer loyalty programs or incentives to foster repeat customers and generate word-of-mouth recommendations that could bring additional customers.

Consistency, creativity and adaptability are keys when creating and executing a marketing plan for food truck business owners. Evaluate the success of your tactics periodically while listening to customer feedback and keeping abreast of market trends to stay informed and drive success for your food truck venture.

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Starting up a food truck business can be both exhilarating and fulfilling for those interested in culinary entrepreneurship. However, it’s essential to approach this venture with careful planning, thorough research and sufficient funds. Combining your culinary expertise with a strategic business mindset allows you to navigate the challenges and reap the rewards of running a thriving food truck operation.

How profitable is a food truck?

The profitability of a food truck can typically vary between $25,000 to $150,000-plus per year depending on various factors such as location, menu pricing, operating costs and customer demand.

Can I park my food truck anywhere?

Parking depends on local regulations, zoning laws and specific restrictions in different areas. Research and understand the parking regulations and obtain necessary permits or licenses to ensure legal operation and avoid potential fines or penalties.

Do I need a permit for a food truck?

Yes, a permit is typically required to operate a food truck. The specific permits and licenses needed may vary depending on the jurisdiction, but they often include food service permits, health department inspections, fire safety certifications and vehicle permits.

How much is a food license?

The cost of a food license can vary between $50 to $500 depending on the location and the specific requirements of the jurisdiction.

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29 Proven Food Truck Business Plans (PDF, Word)

The food truck business has recently gained progress in catering for ordinary working folks. It’s really not that expensive to set up and it’s a cheaper alternative to starting your own restaurant . Of course, this doesn’t mean that food trucks are either free or cheap. To ask for financial help, you need to sell the idea to investors and for this, you can make a comprehensive food truck business plan.

• 1 Food Truck Business Plans
• 2 Why do you need a food truck business plan?
• 3 Food Truck Business Models
• 4 How to write a food truck business plan?
• 5 Food Truck Business Plan Templates
• 6 Starting your food truck business

Food Truck Business Plans

Why do you need a food truck business plan.

Just thinking about food trucks roaming around today makes you think that it must really be very simple to put up such business. But even this simple undertaking requires a lot of planning. Opening such a business without planning and investigating might lead to many problems. But if you do some market research for your food truck business plan, this can help you thresh out significant details and redefine your concept.

One of the most important factors of success for a restaurant is the location. People wouldn’t want to travel too far to get to a restaurant and if you have the wrong location, your long-term plans might not even last. This goes the same for food trucks as the location is a crucial component for success.

The most successful food trucks have a relatively consistent schedule on where they park and they spread the word through various social media platforms. There is also the fact that not every location allows food trucks to set up shop. For instance, school zones and public parks generally disallow commercial businesses . So, you need to consider this too when making your food truck business plan sample.

Food Truck Business Models

How to write a food truck business plan.

You need to have the answers to many questions when you are trying to learn how to start a food truck business. The best way to get all these into perspective is to make a comprehensive food truck business plan template. This helps you list all of the essential information about the business while assisting you in getting funding from investors.

The food truck business model is always the first step because you will use this to gain the funding needed to get your food truck off the ground. Here are some things to consider when creating your food truck outline for your business plan:

• Executive Summary This is the first section of your food truck business plan. Think of it as an introduction to whoever you will address on your final product. Don’t make it too wordy or lengthy. First impressions are the beginnings of something great. Make your executive summary interesting and concise without having to delve on details. This section gives you the opportunity to highlight what your company is, how you expect to grow your business, and more. Another good idea is to explain how your background and knowledge can benefit you in the pursuit of your goals of opening this kind of business. Although this will be the first item that potential investors read, this must be the last section you write.
• Company Description Describe in this section your planned food truck business. This is where you give an explanation of the details of your business and how its entry into the food truck business could be a crucial addition to the existing market. In essence, it’s here where you explain more in detail everything you have touched on in the executive summary.
• Market Analysis This section of your food truck business plan sample gives you the chance to detail and explain how your plans fit into the market. Remember that you will present this to potential investors. It is, therefore, important to do a lot of research on how to start a food truck business before composing this section. This demonstrates that you have enough knowledge about the food truck market and industry.
• Organization and Management Next, make a food truck outline of your organization and management plan where you explain the structure of your food truck business. This may not appear to be that essential if you intend to put up a food truck business manned only by two or three people. But if your plans go beyond a small enterprise, then you need an organization and management plan that includes: A complete profile of your team. Information regarding the business’ ownership. The salaries and benefits your employees will receive. Growth opportunities you plan to offer to your employees . One great way to show your business’ organizational structure is through a chart that illustrates how you have all the bases covered. It is in this section where you can let your passion shine through. This could leave a memorable impression on your prospective investor as they will feel encouraged to support your plans.
• Product or service line The next section in the food truck business plan template details the product or service line that your food truck business plan will offer. You need to display your creative ideas by making a description of your services or products and a plan to keep your customers coming back.
• Marketing and Sales You also need a marketing and sales plan for your food truck business that focuses on strengthening customer loyalty. Define your overall strategies. How you do this is up to you. Just remember that people appreciate originality, whether when adapting a cool truck design or coming up with an interesting selling point for your business.
• Request for Funding Although a funding request section isn’t included in every food truck business plan template, it is still something worth considering. It could be a challenge to make an estimate on how much a food truck would cost but you need to do this so you can determine where your funds will come from. If you have plans to request funding, you have to explain clearly how much you need, what you need the funds for, and how you will repay the money that you owe. You can explore other options for funding by checking out sites that can allow you to crowdfund by raising money from different sources. Just remember that some of these sites take a percentage of the amount you raise. Therefore, you have to do more research before accepting any offer.
• Financial Projections If you’re starting from scratch on the food truck business, it can be difficult for you to determine any realistic financial projections. It’s essential for you to analyze your target market then set specific financial goals so that you can allocate your funds more efficiently. As a newcomer, you need to estimate how much your business will potentially make over the next 5 years using realistic assumptions. You have to make sure that your projections are in alignment with the funds you requested in your funding requests.
• Appendix This section is optional for any food truck business plan but it can be the best place to add information that cannot fit elsewhere. These may include product photos, letter of reference , building permits, and more.

Food Truck Business Plan Templates

Starting your food truck business.

Surprisingly, what were once often referred to as “roach coaches” have already become some of the most sought-after and popular eateries in the biggest cities across the nation. If you want to start your own small business without referring to traditional offices or storefront routines, you may consider starting a food cart or truck business. You need to create first a food truck business model or plan then consider the next steps:

• Get your licenses Entering this business is not as simple as it may seem. To begin with, you cannot just set up stall anywhere to conduct your business. There are various requirements by the city including certificates from the health department, parking restrictions, and truck permits. Every city has its own policies so you should get in touch with your local government to get the requirements.
• Get the best vehicle for your business A food cart would suffice for the meantime if you’re working on a tight budget. The health department has the same rules for food trucks and restaurants. This means your cart will require special equipment that’s usually expensive. Before choosing either a cart or a truck, you should know exactly what you need to operate the business. For instance, if you intend to sell pizzas or other hot foods that you prepare on-site, then you will need a big truck. On the other hand, if you can prepare your food in advance, either at home or in a commercial kitchen, then a cart or a smaller truck will do just fine to keep your products warm.
• Find a niche Surprisingly, many food trucks today are already serving gourmet cuisine and delicacies from other countries, sweets like designer cupcakes and exclusive sweet treats, health foods, and more. They have gone a long way since the times when what they had were just cold sandwiches and hot tacos. One of the keys to success in this relatively new and improved business is to find your own niche and become an expert on it. To keep up with the demands of the business, you have to constantly do research to find out what’s already covered in your area then come up with your own creation.

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How to Write a Food Truck Business Plan (2024 + Template)

Noah Parsons

12 min. read

Updated May 10, 2024

Free Download:  Food Truck Business Plan Template

Starting a food truck business is an attractive alternative to opening a restaurant .

The initial costs are significantly lower than opening a traditional restaurant and the popularity of food trucks only continues to grow. This doesn’t mean that food trucks are cheap, though. It can cost anywhere from $5,000 to over $100,000 to open a new truck, so you’ll want to make sure you understand the risks.

Want some extra guidance as you read through this article? Download our free food truck business plan template .

• What makes a good food truck business plan?

A business plan is a critical part of opening a food truck. A good plan is like having a recipe for your business and gives you the best chance of success. It will guide you through the process of getting up and running and make sure that you plan for all of the expenses and risks that will be involved. It’s worth the time and will greatly increase your chances of success.

After all, if you’re going to invest tens of thousands of dollars in a food truck, kitchen equipment, labor, and permits, why not spend a little time creating a solid business plan that will be your guide to launching a successful food truck business.

A well thought out business plan can be the difference between success and failure. For example, you might create an initial financial plan and discover that your idea simply isn’t profitable. 

It’s so much better to make this discovery when all you’ve invested is a few hours of your time in front of the computer. Instead of scrambling to figure things out when you’re already up and running and you’ve got no money in the bank, you can take the time during the planning phase to go back to the drawing board and rework your concept until you have a business that is profitable. You can use the time before you invest your (or other people’s) money to figure out where you can cut costs so that your business can be a success out of the gate rather than a struggle.

As you write your food truck business plan, remember that you’re doing this for you, not for anyone else. You aren’t going to get graded on what the plan looks like so don’t worry about that. Make your plan work for you so you and your business can be successful.To start on yours, download our free food truck business plan template.

One caveat: If you are going to be raising money from investors or going to the bank for a loan, you may need to dress up your business plan a little. But, to get going, focus on the content, not how it looks.

• Food truck business plan template

A food truck business plan follows the same general format as a traditional business plan but has a few differences that you’ll want to pay close attention to. Here are the sections that you’ll want to include in your business plan for your food truck:

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1. Executive summary

Your executive summary is a very brief overview of your business. Try and keep it to just one or two pages. Anything more than that just isn’t useful.

Food Truck Business Executive Summary Tips

This is an overview of your business that you’ll share with your business partners and your family. It’s a summary that describes, very briefly, the concept for your food truck, your core hours of operation, your locations, a summary of your marketing plan, and the amount of money you’ll need to get up and running.

Write your executive summary last after you’ve written your complete plan. Because the executive summary is an overview of all the work that you’ve put into your plan, spend the time on the rest of the plan first and then come back and summarize everything on one page.

A good rule of thumb is that someone should be able to just read your executive summary and get a solid overview of your business.

This is the fun part of your business plan. Use this section to describe the general concept or company description for your food truck. What kind of food will you serve? What makes you stand out?

Food Truck Business Concept Tips

It’s important to think about your key differentiators and write those down here. If you’re opening a taco truck, what makes your tacos special? Why will people choose your taco truck instead of going to all the other taco trucks? Or, perhaps there are no taco trucks in your area. That’s a “gap in the market” that your food truck concept will fill.

It’s also worth discussing why you want to open a food truck instead of a traditional restaurant. Does your food lend itself to a food-truck experience?

3. Menu & Costs

Following up on your concept, you need to think through your menu. What items will you sell and how much will you sell them for? How much will it cost you to produce each item? How much time will it take you to prep and cook each item? You can look through some food truck menu examples to get an idea of how you might want to structure yours.

Food Truck Menu and Costs Tips

Thinking through these questions and writing down the answers is a critical step in the planning process. You’ll want to make sure that the food you plan on serving can be served quickly enough and that your prices are set so that you cover food costs. Of course, you’ll have to cover other costs as well, but you’ll explore that more when you do your financial plan.

Once you have explored what your menu and pricing looks like, it’s worth sharing your menu with friends and family to get input. Ideally, you should also try and share your menu with strangers as well to get their input. What do they think about your prices? Do your item descriptions make sense?

4. Target Market

Your target market section of your business plan describes who your key customers will be. What age group are they part of? What are their demographics? Where do they live and work

Food Truck Business Target Market Tips

You’ll use this information to determine the size of your target market. This is the total number of potential customers that you could have.

You’ll also use this information to inform your branding and marketing strategy. If your target market is millennials, then your branding and marketing may lean towards the values of healthy eating, for example.

5. Location(s)

Just because your business is mobile doesn’t mean that every day will be a new adventure to find “the best spot”. You’ll want to have a plan ahead of time so you don’t waste time every day finding the right location .

Food Truck Business Location Tips

First, you’ll want to consider locations where your target market is going to be. If you’re going after the “working lunch” crowd who’s looking for a quick lunch near their offices, you’ll want to have a location that’s convenient for them.

Customers also value consistency. They’ll want to know where you’re going to be and when you’re going to be there. If you’re in one location one day and gone the next, you might lose out on repeat customers who think that you’re inconsistent.

If you’re going to be part of a more established food cart “pod”, what does it take to get a spot? What is the cost and what permits are required? Figure this out now so you can factor parking and permitting costs into your overall expense plan.

If you’re planning and serving from multiple locations during any given day, think through and write down your schedule. How often will you move? How long does it take you to break down one location and set up at a new location?

6. Branding, Marketing, and PR

With the explosion of food trucks, figuring out how you’re going to attract an audience is critical. Thankfully, you’ll be driving a mobile billboard, so you can leverage that to your advantage and use that for marketing and advertising.

Food Truck Business Branding, Marketing, and PR Tips

It’s important to ensure that your social media handles are part of your branding and marketing strategy so that people can easily find you online and know where you are. Equally important is that you religiously update your social media profiles. There’s nothing worse than a profile that hasn’t been updated in days or weeks. Many customers will think that you’re closed if you don’t appear to be active online.

Beyond social media, you’ll want to make sure that you’re listed in Yelp and any other local food truck directories and apps. Getting a presence in these apps and getting positive reviews is critical, especially in the early days.

If you can get local press, that’s worth chasing down as well. Often, the weekly arts and culture papers will review food trucks, so it’s worth announcing your presence to them. When you do, think about your story – what makes you unique? What’s special about your food? What pushed you to start a food truck business in the first place? Everyone has a story to tell, so tell yours and try and get some coverage that will drive customers to your truck.

7. Company and Management

Food truck businesses are usually structured fairly simply. There’s usually just one or two owners and the business is usually an LLC. 

Food Truck Business Company and Management Tips

Even if things are fairly simple, it’s always worth writing things down, especially if you have business partners. You’ll want to have agreements about who owns what, what stake in the business each person has, and what happens if one of the partners wants to walk away.

While everything is always optimistic and positive in the beginning, the hard work of running a food truck business can put a strain on any relationship and you’ll want to have a plan in place in case things don’t go exactly the way you think they will. Even the best of friends sometimes have to deal with difficult business situations and it’s always much easier if everything is written down and agreed upon before the business is actually up and running.

8. Financial Plan

The financial plan is potentially the most important part of your business plan. Here’s where you’ll figure out exactly what it will take to make your business work so that you can make a living.

Forecasting Sales for Your Food Truck Business

First, you’ll want to forecast your sales . How many meals do you think you can serve on an average day? On average how much will each customer spend? What about seasonality? When the weather is bad, will you sell as much as when it’s warm and sunny?

Next, you’ll want to look at your “cost of goods”. This is how much it costs you in food and supplies to serve the food that you are serving. Subtract your Cost of Goods from your Sales and you’ll get what’s called your Gross Margin. Of course, you’ll want this to be a positive number, but that’s just the beginning.

Food Truck Business Expenses

Next, you’ll need to look at your expenses. In addition to food costs, you’ll have labor costs including your own salary as well as any additional help you need. You’ll also need to consider insurance, licensing from the city and county, as well as fuel and commissions to event hosts. It’s fairly common for food trucks to pay a flat fee plus a percentage of revenue to event hosts, so if you’re going to consider taking your truck to events you’ll need to factor those costs in as well.

Other expenses can include access to a shared kitchen space. As a food business, you won’t be legally allowed to prep food in your home, so food prep will have to be done either in your truck or in rented kitchen space.

With your sales forecast and expense budget, you’ll be able to calculate your profitability. If your business isn’t looking profitable to start, you can make adjustments to expenses, potentially increase the price of your food, or explore how you can serve more meals.

Food Truck Business Startup Costs

Of course, you’ll also have to consider your startup costs. It’s not at all unusual for a food truck and equipment to cost north of $50,000 and can easily extend beyond $100,000 depending on how custom of a setup you need. Of course, there’s a healthy market for used food trucks, so that’s worth exploring as well.

In terms of startup costs, $100,000 is relatively modest compared to many other businesses and certainly substantially less expensive than opening a restaurant. Many food truck entrepreneurs may find that they can fund their startup with savings and loans from friends and family. Bank business loans for food trucks are also a possibility since most of your startup costs are going towards a physical asset that the bank can reclaim if things go horribly south.

Food Truck Business Cash Flow and Profit and Loss Forecasts

With all of these numbers, you’ll be able to assemble a Profit and Loss forecast and Cash Flow forecast . These two financial forecasts will help you determine exactly what your funding needs will be to get your business off the ground.

If you’re struggling with the financials, it’s worth investing a small amount in a business planning tool to help you get your plan done without having to worry about learning the details of financial forecasting in Excel.

With your food truck business plan in hand and a financial forecast that shows that you can indeed run a profitable business, the next step is to actually get started building your business.

For further reading, check out these articles:

• How to start a food truck business
• 10 strategies to increase your food truck revenue
• Keeping your food truck business rolling

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

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Small Business Trends

Food truck business plan: everything to include, what to include in your food truck business plan.

A plan for a mobile food business includes many of the same elements as other business plans. But there are also some unique elements. Here’s a food truck business plan template to guide your own journey.

Table of Contents

Executive summary.

The executive summary is a concise and compelling overview of your food truck business. It should not only provide a clear explanation of what your business does but also highlight its unique selling points and competitive advantages. Briefly mentioning key elements such as market analysis and operational challenges can give readers a glimpse into the comprehensive nature of your business plan.

Company Overview

Food truck mission statement, target markets and market analysis.

Identifying your target market is essential for the success of your food truck business. By narrowing down your audience based on location and demographics, you can tailor your offerings and marketing efforts more effectively. Conduct a comprehensive market analysis to understand the preferences and needs of your potential customers better. For example, if your food truck is primarily focused on offering gourmet desserts, target areas with a high concentration of dessert lovers or near popular event venues.

Food Truck Industry Summary

Analysis of local or similar niche food trucks, food offered, planned food truck locations.

Planning your locations in advance can help you stay up-to-date with inventory and streamline marketing. Find local food truck festivals, special events, and areas with lots of foot traffic that are popular with your target market.

Food Truck Marketing and Delivery Plan

Financial plan and funding, legal structure, organization and management.

Outline your team and hierarchy to determine how everyone will be managed. For example, you may be the primary decision-maker. Or you may specify a few shift managers to answer questions when you’re unavailable.

Customer Experience Strategy

Sustainability practices, social media and online presence, expansion and scalability.

Discuss your long-term vision for growth. This could involve adding more trucks, expanding to new locations, diversifying the menu, or even branching into catering services.

Partnerships and Collaborations

A business planning appendix may include any supporting documents for the various parts of your plan. For example, financial statements or market research reports may complement your projections or competitive advantage.

Tips for Food Truck Owners to Write an Amazing Business Plan

What is a food truck business plan, why you should write a food truck business plan, a guiding light.

A business plan is more than just a document filled with numbers and marketing jargon. It serves as a guiding light, illuminating the path that you intend to follow. With it, you know where you are headed, why you are going there, and how you intend to reach your destination. Without it, you might find yourself lost in the complex world of entrepreneurship.

Understanding Your Business Inside and Out

Demonstrating commitment and professionalism, risk mitigation, financial health check, continuous evaluation and adaptation.

The business environment is always changing, and what works today may not work tomorrow. A business plan gives you a baseline that allows you to evaluate your performance continually. It enables you to make necessary adjustments, ensuring that your business stays relevant and competitive.

An Exit Strategy

A food truck business plan is not an option; it’s a necessity. It’s the backbone of your business that provides direction, insight, risk management, and continuous alignment with the ever-changing business environment. Writing a business plan reflects a deep understanding and commitment to your business idea. It’s an essential tool that can set your food truck venture on the path to success, helping you navigate the thrilling yet challenging journey of entrepreneurship.

The Pros and Cons of Writing a Business Plan for a Food Truck Business

What are the first steps to start a food truck business?

The first steps include conducting market research, defining your target audience, planning your menu, finding a suitable food truck, securing necessary licenses and permits, and creating a comprehensive business plan.

How much does it cost to start a food truck business?

What are the legal requirements for operating a food truck, how can i finance my food truck business, how do i create a menu for my food truck, how do i choose the right location for my food truck, how can i market my food truck business.

Calypso Tree

Food truck business plan examples: 20+ templates & success guide.

Are you dreaming of your own food truck? A solid business plan is your first step. But where to start? Don’t worry! This guide covers everything from defining your concept to finding hungry customers. We’ll even share 20+  food truck business plan examples  and templates to make it easy. Let’s get cooking!”

Table of Contents

What are the essential components of a food truck business plan?

Executive summary: the quick intro.

This is a short snapshot of your idea. What’s your food truck all about? What makes you special?

• Example:  “Fresh Eats Food Truck is all about healthy and tasty food on the go! We’ll serve awesome salads, wraps, and juices to busy people who care about eating well.”

Company Description: Your Story

Tell us who’s behind the truck and why you’re doing this.

• Example:  “Fresh Eats was started by chef Sarah, who loves creating healthy dishes, and Michael, who knows how to run a business. Together, they’re the perfect team!”

Market Analysis: Know Your Customers

Who will buy your food (customer demographics)? Are there other food trucks nearby (competitor analysis)?

• Example:  “Fresh Eats is perfect for office workers who want a healthy lunch but don’t have much time. Other food trucks are around, but none focus on super healthy options like us.”

Menu and Pricing: What’s for Lunch?

Your menu is the star! Please tell us what you’ll serve, where you’ll get your ingredients, and how much things will cost (profit margins).

• Example:  “We change our salads with the seasons! You can build your wrap and add tasty toppings. We use the best stuff, so our prices might be slightly higher than the taco truck.”

Marketing and Sales Strategy: Spreading the Word

How will you find customers and excite them? Consider social media, partnering with businesses, and offering special offers.

• Example:  “We’ll post drool-worthy pics on Instagram and Facebook! We can park near office buildings at lunchtime and even bring food to company events.”

Operations: The Behind-the-Scenes Stuff

This is the practical part: where will you cook, who will help you, and how will you follow all the food safety rules and get the right permits?

• Example:  “We’ll rent space in a special kitchen to prep our food. We need a chef and a cashier when it’s busy. We’ll make sure to follow all the health department’s rules!”

Financial Projections: The Money Part

Here’s where you get serious about money. How much will it cost to start (startup costs)? How much will you earn (revenue forecast)?

• Example:  “We need money for the truck, kitchen stuff, and food to start. We think we can make $15,000 each month. Our goal is to start making a profit within six months!”

Why Do You Need a Food Truck Business Plan?

Think of your food truck business plan as your recipe for success. Here’s why:

• A Clear Map: Your plan forces you to think through every part of your awesome idea. What kind of food will you serve? Where will you park? How will you be different from other food trucks? Answering these questions gives you a solid direction.
• Show Me the Money! Need a loan or investor to get your truck rolling? A business plan shows them you’ve done your homework. It proves you understand the money side – how much things cost and how you’ll make a profit.
• Plan for the Unexpected: Your plan helps you think “what if?” What if your best ingredient gets super expensive? What if it rains the day of a big event? Having a backup plan means those problems won’t ruin your business.
• Reach Your Goals: Did you sell as much as you hoped? Are customers happy? Your plan lets you track your progress so you can see what’s working and what might need a change.
• Fuel for the Long Haul: Running a food truck is hard work, but also exciting! Your plan reminds you why you got into this in the first place and helps you stay motivated.

It’s More Than Just Paper:

• Opening Day Checklist: Your plan tells you which permits you need and the steps to get your truck up and running legally.
• Finding Hungry Customers: Think office lunch crowd or late-night party crowd? Your plan helps you figure out the best places to sell your food.
• Pricing for Success: Make sure you’re charging enough to make money but still keeping your prices fair. Your plan helps you find the perfect balance.
• Building Your A-Team: Will you need helpers? Your plan makes sure you hire the right number of people for those busy times.

Remember: Your plan can evolve along with your business! Look it over often, make changes when you need to, and use it to make smart decisions to keep your food truck on the road to success!

What are the Typical Startup Costs for a Food Truck?

Launching a food truck is like opening a restaurant on wheels – there are some costs you just can’t avoid. Here’s the rundown:

Food Truck Examples

• Buying New: Can cost as much as a small house!
• Buying Used: A cheaper option, but be sure to get a mechanic to check it out.
• Leasing: Like renting a truck – monthly payments instead of one huge upfront cost.

Your Mini-Kitchen Setup

• This depends on your food. Simple menu = cheaper equipment.
• Ovens, fryers, fridges…think of what a tiny restaurant would need.
• Don’t forget storage for napkins, utensils, and all that stuff!

The Official Paperwork

• Every city/state is different. Some places have lots of strict rules.
• Licenses: Give you permission to operate.
• Permits: Think food safety, parking spots, and fire inspections.

Branding and design:

• Your truck is your billboard! Think eye-catching paint or a wrap.
• Logo design: Makes you memorable.
• Menus: Need to be clear, easy to read, and look tasty.

Initial inventory: 

• Start with enough ingredients for your first few days.
• Overbuying means food going bad and wasted money.
• You’ll learn what you sell the most of as you go!

Important Note: Costs change depending on where you live, your menu, and if you buy new or used. Do a ton of research specific to your area!

What are the Legal Requirements for Starting a Food Truck?

Think of your food truck as a mini-restaurant with extra rules since you’re always on the move. Here’s the basics:

Become an Official Business

• Business License: This tells your city/state you exist. You’ll need one to get everything else.
• Picking a Name: Make sure no other business has the same name!

Food Safety is #1

• Health Permits: These prove your truck passes food safety inspections.
• Rules are STRICT – clean surfaces, proper food storage, etc.
• Each place you want to sell might have its own permit!

Your Truck Needs to Be Legit

• Just like a car, it needs registration (license plates) and insurance.
• Some places have rules about how big your truck can be, or where you can park.

You’re the Boss – Get Certified

• Food Safety Training: You (and probably your staff) need to take a class.
• This proves you know about keeping food germ-free and safe for your customers.

Rules can be totally different depending on where you live. Don’t just trust online info – contact your local health department and city hall!

How Specific Should Your Food Truck Concept Be?

How Specific Should Your Food Truck Concept Be

Finding the right balance between specific and too narrow is key for food truck success. Here’s what to think about:

• Stand Out From The Crowd: “Burgers and fries” isn’t going to cut it! You need something unique. Maybe it’s loaded burgers with crazy toppings, or all-vegan burgers.
• But Don’t Go Too Niche: “Kale smoothie truck”? Probably too limited. You need enough options to keep customers coming back, even if you do have a specialty.
• It’s More Than Just Food: Your concept is also about the vibe. Are you a gourmet hipster truck? A late-night comfort food spot? Matching this to your target audience is important.
• Location Matters: A seafood truck in the desert? Might be tough. Make sure there’s a demand and that your concept fits the area.

Finding the Sweet Spot: Examples

• Too Broad: “Sandwiches”. Boring!
• Too Narrow: “Peanut butter and banana sandwiches ONLY”. Gets old fast.
• Just Right: “Gourmet grilled cheese with a twist”. Specific but offers room for creativity and variety.

How To Conduct Market Research for Food Truck?

Food Truck Festival Business Plan Examples

Market research is like spying on your potential customers! It helps you figure out what they want and where to find them. Here’s how to tackle it:

Who’s Your Perfect Customer?

• Don’t just say “everyone”! Be specific.
• Age: Are you aiming for college students or busy families?
• Habits: Do they grab lunch on the go or hang out late?
• Tastes: Spicy food lovers? Health nuts?

Scope Out the Competition:

• Food Trucks: What other trucks are nearby? What do they sell? What do they do well? Where are their weaknesses?
• Restaurants: Even regular restaurants compete for your customers’ dollars. Check them out too!

Get Out There!

• Talk to People: Ask friends, neighbors, anyone who fits your target customer what they think.
• Visit Food Truck Events: Taste the competition, see what crowds they attract.
• Online Sleuthing: Social media, restaurant review sites – what do people say about the food scene in your area?

Dig into the Data:

• Local Chamber of Commerce: They have stats on your area (population, income, etc.)
• Foot Traffic Websites: These can show how busy spots are at different times of day, perfect for choosing where to park!

Remember: Market research is ongoing. Keep an eye on trends, what other trucks are doing, and what your customers are saying to stay ahead of the game!

How Do You Price Your Food Truck Menu?

How Do You Price Your Food Truck Menu

Pricing your food right is tricky! You need to make a profit, but you can’t scare customers away with crazy high prices. Here’s what to consider:

The True Cost of Each Dish

• Ingredients: Don’t just think about the main items. Every single topping, sauce, even the bun adds up!
• Labor: How long does it take to make? More complicated dishes should cost more.
• Overhead: The boring stuff – gas, permits, napkins…all these costs need to be covered.

Know Your Customers

• What can they afford? Fancy ingredients in a student area is a bad idea.
• What else is around? You can charge more if you’re the only gourmet option, but not if you’re parked next to a dollar hot dog cart.

Spy on the Competition

• What do similar food trucks charge for similar items?
• Are you offering something better? Then you can charge a little more.

Don’t Forget About Profit

• You’re doing this to make money!
• Aim for a profit margin – this means after paying for everything, you still have some cash leftover.
• Most restaurants aim for around 30% profit margin on each dish.

Menu pricing is flexible! If something isn’t selling, lower the price. If you have a crowd-favorite, maybe raise it a bit.

How Do You Market Your Food Truck?

Bazaar Food Truck Festival Business Plan Examples

Food trucks need to get noticed! Here are the best ways to spread the word:

Strong social media

• Social Media is King: Instagram for drool-worthy pics, Facebook to post your schedule. Short, funny videos on TikTok can go viral!
• Get Chatty: Answer questions in comments, be friendly, and build an online following.
• Location, Location: Always tell people where your truck is each day!

Participate in events

• Events Are Your Friend: Food festivals, street fairs, even concerts – wherever hungry people gather.
• Food Truck Roundups: Some cities have special events just for food trucks. Great way to find new customers.

Partnerships

• Partner Up: Is there a coffee truck nearby? Offer a “brunch special” together.
• Businesses Love Lunch: Park near offices and offer delivery for the whole group.

Positive reviews

• Reviews Matter: Yelp, Google, anywhere people talk about restaurants.
• Ask Nicely: Put a sign on your truck asking happy customers to leave a review.
• Great Service = Great Reviews: Being friendly and having yummy food is the best way to make this happen!

What are the Risks of starting a food truck business? (And How to Fix It)

Food Truck Business Plan Examples

Food trucks are great, but they’re also a lot of work. Here are some  risks of starting a food truck business  you might face:

Weather dependency

• Rainy Day Blues: No one wants to stand in line in the rain, even for fantastic food.
• Solution: Have a backup plan! Indoor events and partnerships with businesses that have covered areas nearby.

Limited space

• Tiny Kitchen: Cooking and storing everything gets cramped.
• Solution: Smart menu design is key! Dishes that use a few fresh ingredients are easier to manage.

Finding reliable locations

• It’s taken! Popular spots for food trucks get snatched up fast.
• Solution: Network! Get to know other truck owners, check online calendars for your city, and scout new locations

Work All Day & Night

• Long Hours: Prep before you open, serving customers, cleanup afterward…it adds up!
• Solution: You can’t do it alone! Hire good staff, even if it’s just part-time helpers for busy times.

Challenges can turn into opportunities. Bad weather special? “Cozy comfort food for a rainy day!” Limited space? “Simple menu means your food gets to you faster!”

Where Can You Find Resources to Help Your Write My Food Truck Business Plan?

Don’t worry, you don’t have to do this alone! Here are places to find support:

Help from the Government (Yes, Really!)

• The SBA (Small Business Administration): They love helping new businesses! Their website ( https://www.sba.gov ) has tons of info.
• Local Business Centers: Search for ones near you. They often have free advisors to help with business plans.

Learn from the Pros

• Food Truck Websites: Lots have blogs with advice, like “The 3 Things I Wish I Knew Before Starting”.
• Industry Groups: Some areas have food truck associations – perfect for networking and getting tips.

Food Ideas for Your Food Truck Business

Choosing what to serve is a big decision for your food truck! Here are some ideas to get you started. Think about what you love to cook, and what people in your area might crave:

• Ice Cream: Classic! Offer fun flavors and toppings.
• Shaved Ice: Perfect for hot days.
• Popsicles: Make your own with fresh fruit – healthy and yummy!
• Grilled food: Burgers, chicken, even grilled veggies
• Fried Chicken: A crowd favorite, but it needs special equipment.
• Tacos: Endless options – fish, steak, vegetarian…
• Pizza: Fancy with a special oven, or simple slices to go.
• Salad: Freshest ingredients are key – boring salads won’t sell!
• Smoothies: Lots of flavor combos, can add healthy boosts.
• Wraps: Easy to hold, perfect for lunch on the go.
• Pastries: Who doesn’t love a fresh donut?
• Cookies: Gourmet cookies are trendy.
• Cupcakes: Get creative – decorate them with a cool theme.
• BBQ: If you’re a master smoker, this is a winner.
• Mac & Cheese: Dress it up with fancy toppings!
• Gourmet Hot Dogs: Not just for ballparks – think unique sausages and toppings.
• Soup: Homemade and comforting on cold days.
• Coffee/Tea: Perfect partner for another truck’s food!
• Pretzels: Warm, salty snacks are always popular.
• Ethnic Cuisine: Do you have a specialty? Share your grandma’s recipe!

Important: What’s popular in YOUR area? Does anyone else do what you want to do? Your idea needs to stand out!

20+ Food Truck Business Plan Examples & Templates

Pizza Food Truck Business Plan Examples

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Template for Food Truck Business Plan Examples

Minimal Food Truck Business Plan Examples

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A business plan is your roadmap to food truck awesomeness! It shows you’re serious and helps you avoid problems later.

Owning a food truck is hard work, but it’s super rewarding. A great plan is your first step towards making your food truck dreams come true!

Ready to turn your food truck vision into reality? A detailed business plan is your key ingredient for success. It’ll guide you through challenges, attract investors, and keep your dream on track. Need help getting started? Check out our food truck business plan template or other resources. Let’s make your food truck a delicious success story!

The content creator team at calipsotree.com is dedicated to making topics accessible to everyone, with over 9 years of experience in writing and breaking down complex concepts into easy-to-understand articles that answer readers’ financial questions.

About The Author

Calypsotree.com.

The content creator team at calipsotree.com is dedicated to making topics accessible to everyone, with over 9 years of experience in writing and breaking down complex concepts into easy-to-understand articles that answer readers' financial questions.

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How To Write a Food Truck Business Plan (+ Template)

With the increasing popularity of food trucks, it’s essential to prep your operation before you start prepping your mise en place. A solid food truck business plan puts you at the front of the grid when the race begins.

The US street vendor sector was valued at $2.49 billion in 2022, up from the previous year’s total of $2.29 billion. The market is expected to grow another 1.7% in 2023.

For those with aspirations of culinary greatness, a food truck is the perfect setting to develop new recipes while building a fan base, or even an online business, without the expense and risk of opening a brick-and-mortar restaurant. 

There is even a street food chef in Singapore with a Michelin star, proving that you don’t need a giant kitchen and 50 sous chefs to build a reputation for quality, innovation, and deliciousness.

How to write a successful food truck business plan, step by step

• Set aside a page for your executive summary
• Write an overview of your company
• Conduct a market analysis
• Lay out your products and/or services
• Create customer personas
• Put together a marketing plan
• Create a logistics and operations plan
• Write out your financial plan

Starting a mobile food business is subject to the same challenges and pitfalls as any other startup operation. But there are special considerations for food trucks to address before you open the window to start slinging sandwiches (or tacos, or barbeque, or …).

You may want to open up our handy business plan template so you can take notes, or jot down your brilliant ideas as they come to you. We also talked to seasoned food truck operators and entrepreneurs Natalie Basile and Mikey Wheeler-Johnson of Eats Amoré Mobile Italian Cuisine , who share their knowledge and experience throughout this guide.

From the executive summary to the financial details, we’ll show you how to build a food truck business plan for savory success.

1. Set aside a page for your executive summary

Even though this is the first section in your business plan, it’s the last section you should write. Your executive summary captures all the highlights from the rest of your business plan, so get those sorted out first.

This is Shopify’s business plan template. You can download it below.

When it’s time to write this section, think about your audience. If you’re writing a business plan for yourself as a way to stay organized, motivated, and focused on your goals, this summary can be quick and dirty.

Free: Food Truck Business Plan Template

Business planning is often used to secure funding, but plenty of business owners find writing a plan valuable, even if they never work with an investor. That’s why we put together a free business plan template to help you get started.

If your business plan is meant to secure a bank loan or impress potential investors, your executive summary will need to focus on profit, reliability, and the fact that you know what you’re doing—so your food truck feels like a safe bet.

While it’s important to mention what makes your food service model unique, spend plenty of time showing that you also understand the realities of running a small business.

2. Write an overview of your company

This section is your opportunity to explain what is going to make your vehicular vittles different and more successful than every other food truck on the road. 

As part of this section you’ll need to tell your audience what makes you capable of running a profitable food business. 

• Do you have professional cooking experience? 
• Have you managed a commercial pantry before? 
• Do you have an existing reputation for creating delectable meals? 

Lenders might invest in you based on the strength of your new business idea, but experience will improve your chances.

At Eats Amoré, even though neither Mikey nor Natalie has professional cooking experience, they do have a proud family history of producing delicious food. “Natalie learned to cook from her grandmother, who’s from Naples, Italy. And then her mom is an organic farmer, so she learned traditional recipes with fresh ingredients, which is the backbone of Italian cooking,” says Mikey.

In addition to your own position in your food truck business, this section is the place where you’ll outline the types of employees you have or will need to hire. Food trucks are small, so chances are you won’t need a lot of staff or a management team, but you could consider hiring prep staff, cleaners, etc.

The company overview is also the best place to set some goals. As a short-term goal, most food truck owners (and restaurateurs for that matter) aim to pay off the bulk of their startup costs (licensing fees, insurance, supplies, food, website, branding, etc.) within the first year, though this will depend heavily on your anticipated margins.

Other short-term goals may include building a social media following, finding predictable parking spots to encourage repeat traffic, or securing a spot at a big event.

Your largest capital investment is, of course, the truck itself. Although food trucks cost a lot less to set up compared to brick-and-mortar locations, they can still set you back between $50,000 and $175,000 , depending on what kind of food you’ll make and the equipment required to do it.

Paying off your food truck is likely to be your major long-term goal, which you can fulfill with your own funding or Shopify Capital .

3. Conduct a market analysis

A huge factor in setting your business up for success is understanding the target market where you will operate.

Restrictions

Since food trucks are mobile, you’ll enjoy some flexibility compared to a restaurant, but many cities still restrict where, when, and how you can serve your customers as part of the license that allows you to operate (which costs an average of $1,800 ).

If your ideal customers live in an area or work at a time when you can’t sell to them, you could be in for some difficulty. For example, if you were to open a food truck in Vancouver, you would find that restrictions include:

• Not operating during nighttime hours
• Avoiding certain neighborhoods
• Staying 100 meters away from brick-and-mortar restaurants
• Staying outside park boundaries
• And plenty more

In some cases, you may find that food trucks have not yet been considered in city regulations, and you may have to blaze a trail for your business, like Mikey and Natalie did. “We had very limited locations that we could pick from,” Mikey said. 

“The zoning in Kamloops was absolutely terrible. We were not looked very favorably upon. So after many council meetings and lots of emails with counselors and going back and forth, we finally got the city to give us a pilot project location in the downtown core.”

Every city has different restrictions that affect food cart and truck owners, so be sure to consult the city hall website in your area. And start early—licensing can take time, especially in locations with high demand.

Local conditions

Beyond the restrictions imposed by municipalities, each city is subject to conditions that could help or hinder your business. 

If you’re planning an ice cream truck for Edmonton, you might only have the warm, sunny weather you need for four months of the year, severely limiting profits. Conversely, the same ice cream truck in San Diego, with 266 days of sunshine on average, might be a sensation with lines around the block.

You should also take into account population in your city, demographics, foot traffic in your preferred neighborhoods, and the number of events that host food trucks, in order to establish an estimate of how many days per year you are likely able to operate.

Competition

Lastly, run a competitive analysis. 

• What’s the food truck market like in your city? 
• What do other food trucks offer? 
• What’s your competitive advantage? 
• Is there a robust restaurant scene driven by owners who don’t want food trucks diverting their customers ? 

Too much competition and you might have trouble finding customers or a place to park. Too little and you may find that there is a reason no one is running a new food truck.

4. Lay out your products and/or services

This section is your opportunity to outline your creative food vision, so keep in mind that there are some limitations and considerations when it comes to the meals coming out of your truck.

• Food should be easy to eat in a variety of settings, such as on a bench, standing on the sidewalk, or at a crowded concert, without spilling down the front of a CEO’s Brooks Brothers shirt.
• Keep it simple: While you may be able to make complex individual dishes, trying to offer a broad, complicated menu with limited space, staff, equipment, and storage could prove to be difficult or impossible.
• A long menu can be intimidating or time consuming for those trying to order quickly during their lunch break.
• Try to fill a niche in your city. If there are already a lot of pizza trucks but no Thai food, make som tam instead of a margherita pie. Or, for example, if you live somewhere with plenty of trucks making mediocre burgers, your ultra-high-quality version might corner the market. You can also differentiate your offerings based on overhead and food cost.

Go out and study the existing food truck scene in your area to get an idea of what might work. 

Alternate revenue

This section is a good place to consider additional revenue streams such as online sales of things like bottled sauces, spice packs, baked goods, etc. Selling online can be a lifesaver during quiet winter months, when festivals aren’t happening, or even during a global pandemic.

Eats Amoré has found that online sales and catering bookings via its Shopify website are becoming increasingly important to its bottom line. “It’s to the point where we have to turn it on and turn it off because it’s so busy,” says Mikey.

"We came up with this idea called the Ravioli Club, which is essentially a membership that you buy from our online store, and you get three mystery deliveries of ravioli delivered to your house every two weeks."

Mikey wasn’t always an ecommerce expert. “I was very green in learning how to do all the online sales, and I’m still learning a lot,” he says.

“And even with the small increments of learning that I’ve done, sales are going up exponentially. Not only has it boosted our sales, but it decreased the amount of time that I have to spend doing back and forth work with people. Because once you have all your information laid out on the website, you get a lot less tire kickers and you get a lot more people that call you and want to hire you [for catering].”

5. Create customer personas

This area of your food truck business plan is where you’ll outline your ideal customer. 

• Where do they live? 
• How old are they? 
• What kind of foods do they like? 
• How much disposable income do they have? 

You’ll need to do some serious demographic research to fill in this section, since every city and neighborhood is different. Then use it to inform your menu and pricing. 

If you plan to set up outside rock concerts and baseball parks, caviar and foie gras could be hard to sell, while home-cooked barbeque might not do well on the street in front of your local opera house. Ask questions to determine what your potential customers want.

6. Put together a marketing plan

You can make as much delicious food as you want, but if no one knows about it, you’re going to have a hard time making a profit. Your marketing strategy is essential to the success of your business and this section is where you’ll outline it for yourself or your business loan officer.

Branding and communications

Start by detailing where you’ll park and what your truck will look like , since these are the two biggest factors in attracting walk-by customers. Next, show how you’ll raise the profile of your business beyond passersby using traditional marketing techniques and, especially, social media.

If you intend to park in different locations on different days, having dedicated followers on Instagram, Twitter, and/or Facebook is a great way to let people know where they can find you. Social media is also the perfect place to update your followers on new menu items. Remember to take great photos of your food for maximum impact.

The food truck marketing and sales portion should also account for what makes your offerings different from everyone else on the road. In the Products and Services section, we discussed how your menu should fill a niche, whether it is the type of cuisine, quality, or cost.

In this section, you’ll need to provide details on how you plan to communicate those differentiators to your target customers.

Online ordering

Speaking of technology, this is a good time to explore the possibility of having your customers interact with you via smartphones and computers.

You may want to offer online ordering with delivery or pickup, which can be accomplished using third-party services like DoorDash , Skip the Dishes , Uber Eats , or any number of apps preferred in different markets around the world—be sure to find out which app most restaurants and delivery services use in your area.

A less obvious facet of your marketing plan is your start date. If you plan on opening right when the good weather hits, you’re likely to be too busy to spend a lot of time building a brand identity and online presence, though your cash flow will probably be in good shape.

“A huge mistake that we had in our first year’s business plan was that we were going to work through the winter,” says Mikey. “But what I forgot was that the people in Kamloops are very fair weathered. They’re used to nice weather. So a little bit of cold and they’re like, No, we’re out of here. It wasn’t until last winter that we actually did become a year-round business when we opened our Shopify account."

7. Create a logistics and operations plan

This section is where you’ll need to dig into the nitty-gritty day-to-day operations of your local food truck.

Supply chain

You need ingredients in order to sell food. But where will you get them? Let’s look at your options.

RESTAURANT WHOLESALERS

• Example: Sysco
• Pros: Reliable and cost effective.
• Cons: Large volume-packaged products could be hard to store on your truck.

WHOLESALE CLUBS

• Example: Costco
• Pros: Convenience—shop whenever you want.
• Cons: Prices may be higher than restaurant wholesalers.

GROCERY STORES

• Example : Trader Joe’s, local greengrocers, specialty markets
• Pros: The greatest variety of ingredients, including local, organic, and specialty items. Smaller package sizes.
• Cons : High prices.

Many food truck operators use a combination of suppliers to achieve their goals, so look at what is available in your area that fits into your menu and budget. 

Also consider your menu: If you have a fixed set of meal offerings, will you be able to reliably get the same ingredients throughout the year? If your menu rotates frequently, will you have time to source new ingredients on a regular basis?

Your truck is your facility. So think carefully about what kind of vehicle you decide to buy.

Mikey says, “We got this HandyDART bus for a steal, and we spent the beginning of 2013 turning it into a food truck. We learned so much. It’s a fiberglass vehicle, which wasn’t ideal compared to a big stainless truck. But we made it work.” 

Retrofitting a vehicle that isn’t perfect may be an option considering your budget and skill set, or you may want to purchase a vehicle that was purpose-built to be a food truck.

This is the place to outline the physical equipment and maintenance requirements for your business, such as:

• Specialized cooking equipment
• Fuel (cooking and engine)

Many cities also dictate that some aspects of food preparation, such as chopping vegetables, making soups, baking bread, or preparing other ingredients, be done in an off-site commissary kitchen outside of sales hours, rather than in the food truck or in your home. This is to ensure food safety, and you’ll need to factor the cost and logistics into your plan.

It’s also a good idea to determine if you can store additional ingredients at your commissary kitchen location.

Production capacity

How long does it take to make an item from your menu, on average? This is a major consideration that could limit how many customers you can serve in a day. 

How do you intend to cope with changes in pace and demand over the course of a day, week, month, or year? Mikey says, “I go home and do dishes for two hours. It’s far more labor intensive than people realize.” So don’t forget to factor in how much work you can realistically do yourself.

If you plan on offering products for sale online, you’ll need to sort out a plan to ship them to customers. Fortunately, shipping can be accomplished quite easily at reasonable prices .

8. Write out your financial plan

Like most businesses, yours will likely live or die on the strength of your financial plan. You have to know how much money is coming in, how much is going out, and how those numbers are likely to change in the future. 

So be sure to dig deep into your prospective balance sheet to truly understand how profits and costs will affect your operation. 

Manage your money where you make it with Shopify Balance

Shopify Balance is a free financial account that lets you manage your business’s money from Shopify admin. Pay no monthly fees, get payouts up to 7 days earlier, and earn cashback on eligible purchases.

Profit margin

Fortunately for you, startup costs on a food truck are a lot less than a brick-and-mortar restaurant, so your break-even point could come a lot sooner. That said, your profits could be limited by the food truck model.

Food trucks can expect to average about 8% profit , which means they are a volume business. You’ll need to work fast to serve a lot of customers in order to earn a profit.

You’ll also need to outline your cash flow scenario . Since food trucks can’t store a lot of inventory (ingredients and supplies), you’ll need to sell and restock more frequently than a brick-and-mortar restaurant.

Additional costs

This section is also the place to factor in other costs, such as licensing, maintenance, and staff wages, if you have employees. And if you don’t plan on hiring help, remember that you probably can’t work 16 hours a day, seven days a week, which will limit your profits too. Be sure to write accurate financial projections so you get a good idea of how much you’ll earn.

Turn your business idea into a savory reality

The food truck industry is growing. Now that you’ve had a chance to think about how your food truck dreams will shape your food truck business plan, it’s time to actually sit down and write it.

Need a little push in the right direction? Check out some business plan examples , then start filling in your template once you’re inspired.

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Food truck business plan FAQ

How profitable is a food truck, how do i start a food truck business plan.

• Create customer personas 
• Put together a marketing plan 
• Write out your financial plan 

How much does a food truck cost?

Is a food truck business a good investment.

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How to create a food truck business plan – and stay on track

Starting a food truck business is exciting! You’re about to take your love of food and community out on the open road, setting up at a variety of locations, chatting with the locals and sharing those incredible recipes your friends and family can’t stop raving about. 

But first things first: how are you going to make your food truck dreams a reality? 

We hate to break it to you but 60% of food trucks fail within the first 3 years. Why? While there are many factors that contribute to this stat, the major reason is simply poor planning.

Get ahead of the most common obstacles and set yourself up for the long haul with a food truck business plan that will help inform, guide and drive your business to success. 

Do I need a food truck business plan?

Yes! A business plan is essential to running a successful food truck business because it provides a roadmap for getting started, tracking finances and growth milestones and reaching what success looks like to you. Plus, most professional services (like accountants, insurance providers, lawyers, banks and so on) will require a business plan to work with you. 

What’s included in a business plan? 

A food truck business plan includes everything from financial plans and essential personnel to marketing and competitor research to menus and service details to a growth strategy (hello second truck!) and more.  

How do I create a food truck business plan?

Make space both time-wise and mentally to work on your business plan. It takes a lot of work but is well worth it to beat that 60% fail rate. Below is a quick-reference outline to help you create a successful food truck business plan. 

Food Truck Business Plan Outline

Executive summary.

The executive summary is a quick overview of your food truck business and provides an introduction to the reader. It should be short, only 1-2 pages long, and is typically written last after the rest of your business plan is completed. Your executive summary should include: 

• Concept and type of food you’ll be selling
• Hours of operation and location(s)
• Target market and explanation of why this business fills a need
• Projected costs and profits 
• Business goal and what looks like success to you

Company Description

This section will include all the details about your food truck as a company – have fun with this! Describe your business and what makes it special, who’s involved and why it’s going to be successful. 

• Mission statement and core concept
• Management and team details such as owners, partners and employees
• Professional and advisory support (think insurance, bank, business associations, etc.)
• Goals and objectives

Products & Services

Ready to talk menu?! The Product and Services section of your food truck business plan will showcase your ideal menu and explain how you’re going to prepare and serve everything. 

• Menu items and what makes your offers unique
• Pricing for each menu item
• Food prep details like if you’re using a commissary kitchen and how to source ingredients
• Transaction plan such as accepting payments with a comprehensive POS , offering online ordering , and handling cash payments.

Marketing Plan

Every successful business needs a great marketing plan to get the word out about your amazing food and where you’ll be located. But before that, you need to understand the food truck business industry in your specific area, research your competitors and evaluate your customer base. 

• Branding that includes logo, color schemes and general vibe
• Target audience that describes who you’ll be selling to as well as ideal locations and events. 
• Competitor overview of other food trucks and even quick-service restaurants that sell similar types of food (take a close look at where you can stand out!) a SWOT analysis is handy here)
• Marketing plan to reach your customers (social media is essential!)

Strategy & Implementation

Now it’s time to dig into HOW you’re going to make this all happen with a solid strategy and method to implement and stay on track. 

• Checklists for each step needed to be done before your launch
• Quarterly goals and milestones 
• Reporting methods to stay on track
• Pricing and revenue model 

Financial Plan and Projections

If this is your first food truck business, creating financial plans and projections might feel like shooting in the dark. Be sure to keep in mind that you’ll have a mix of perfectly ideal sales days and days where sales are interrupted for a variety of reasons (seasonal, location availability, competitors, or a sick day here and there).

• Initial expenses and assets
• Sales forecast & projections
• Profit & Loss projections
• Business budget

Keep your food truck on the road to success using technology that supports your business

You already know that you’ll need a POS to accept credit card payments but there’s so much more that a great POS can do for your food truck business. The Table Needs POS is designed to support core areas of your business – from managing menus to accepting payments to reporting that keeps you in the know. 

The Table Needs POS for Food Trucks will help you: 

• Know what menu items are selling like crazy
• Understand which routes or events are most profitable
• Reveal customer preferences 
• Track weekly, monthly, and yearly sales by item
• And a whole lot more!

Running a food truck is hard work, but Table Needs can help make it easier! We’re happy to answer your questions, give you a pressure-free demo, and start building your free digital menu.

Follow us  for tips, news, and tutorials to run a successful small restaurant. 

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How Profitable is a Food Truck? Profits and Breakeven

• May 7, 2023
• Food & Beverage

If you are planning to open a food truck, you may want to know how much profits you can make with this business. In other words, you must know how much revenue you must generate to reach break-even and make profits.

Food trucks have become very popular: the US food truck industry represents $1.2 billion today with an impressive +7.9% CAGR from 2017 to 2022.

Despite the hype, there is also strong competition from other food trucks, but also restaurants in general. So if you’re wondering how much profits you can make with a food truck, you’d have to first consider all the operating costs to run such a business. Let’s dive in!

What is the average turnover for a food truck?

A 2017 study surveyed 300 full-time food truck owners in 5 US states and found that the average turnover for a food truck was $152,000.

What is the average profit margin for a food truck?

Profits margins for a food truck can vary significantly from one business to another, usually from 0% to 15%.

Your profit margin will vary based on your cost structure and turnover. Let’s now have a look how much it costs to run a food truck in general.

What are the startup costs of a food truck?

Here are a few estimates of how much it would cost you to start a food truck:

Food truck vehicle startup costs

The truck accounts for the most significant portion of your overall startup costs, and there are different options you may want to consider. They include: 

• Leasing or owning a truck 
• Purchasing a brand new or a used truck
• Choosing a reputable food truck dealer 
• Selecting the customizations to ensure the food truck serves your needs

Expect to spend anywhere from $80,000 to $150,000 on a new made-to-order food truck. Instead, used food trucks can cost between $40,000 and $80,000 , while the cost of renting it should be around $2,000 to $3,000 per month.

Food truck equipment costs

With the food truck ready, the next item to think about should be the kitchen equipment. If you decide to purchase a new food truck, all the essential equipment will be there (and included in the truck costs above).

Instead, second-hand food trucks might need a few adjustments to fit your menu. Therefore, the type of kitchen equipment you need for your food truck business depends on the kind of food you plan to serve.

While small cooking ware like pots, pans should cost around $1,000 to $2,000 total, cooking equipment can easily cost a few thousands. A few examples are:

• Convection ovens: $1,000 to $5,000
• Flat Top Grill: $500 to $1,500
• Charbroiler: $1,500 to $3,000
• Deep fryers: $250 to $1,000 each

Food truck permits & licenses startup costs

According to a Food Truck Nation report , entrepreneurs spend about $600 to $6,000 on permits and licenses costs (depending on the state they operate in) before they can start their food truck business.

How much does it cost to run a food truck?

Besides the on-time startup costs to open your food truck, you should also budget for the operating costs you must incur every month to run your business.

On average , food truck owners spends between $17,000 and $26,000 a month to run their business efficiently . Here are a few estimates of the different operating costs which you can expect for a casual food truck with 2 full-time employees:

Note that the operating costs above exclude other costs such as potential bank loan interest expenses and amortization and depreciation costs which you should also take into account.

• COGS : you must acquire raw materials for your food truck, and the price of the raw materials will vary depending on the type of food you sell
• Staff : your food truck will have at least one employee and you need to pay a salary
• Legal : you need to spend money for regular health inspections, permit renewal, etc.
• Utility : you need to spend on fuel, water, maintenance, etc.
• Bookkeeping: you will need a POS system and some bookkeeping software or an accountant  
• Insurance : you will need insurance cover for your vehicle, equipment, and staff

We’re including below the indicative cost structure a company with 4 food trucks could have ($1.8 million annual turnover and 10% profit margin).

How to forecast profits for a food truck?

In order to calculate profits for a food truck, you must first forecast revenues and expenses.

Profits = Revenue – Expenses

Forecasting revenue for a food truck

Revenue can easily be obtained by multiplying the number of covers by the average order value:

Revenue = Orders x Average Order Value

For example, if you have 150 orders in a day with an average order value of $15, monthly revenue is about $50,000 (assuming you’re open 5 days a week).

Forecasting expenses for a food truck

There are 2 types of expenses for a food truck:

• Variable expenses : these are the COGS as explained earlier. They grow in line with your revenue: if your turnover increases by 10%, variable expenses grow by 10% as well
• Fixed expenses : salaries, debt interest (or leasing) costs to acquire the truck, marketing and all the other operating costs listed above

Calculating profits for a food truck

When we refer to profits, we usually refer to EBITDA (Earnings before interests, taxes, depreciation and amortization) as it represents the core profitability of the business, excluding things such as debt interests, non cash expenses and other non-core expenses.

In order to get to EBITDA, we use the following formula:

EBITDA = Revenue – COGS – Operating Expenses

We’ve included below the illustrative profit-and-loss of a food truck (from our financial model template for food trucks ).

Whilst gross margin (after variable costs) is rather high (~60%) as explained earlier, EBITDA margin can go up to 10-15% depending on the food truck , and net profit margin up to 5-10% for the most profitable food trucks.

What is the break-even point for a food truck?

Break-even is the point at which total costs and total revenue are equal. In other words, the breakeven point is the amount of revenue you must generate to turn a profit.

Because you must at least cover all fixed costs (that aren’t a function of revenue) to turn a profit, the break-even point is at least superior to the sum of your fixed costs .

Yet, you also need to spend a certain amount for every $1 of sales to pay for the variable costs. As we just saw, food trucks typically have rather high gross margins (~60%). Indeed, a big part of expenses are actually fixed costs (salaries, leasing expenses, etc.).

The break-even point can easily be obtained by using the following formula:

Break-even point = Fixed costs / Gross margin

Using the same example earlier, let’s assume your food truck makes $50,000 in turnover per month and has the following cost structure :

The break-even point would then be:

Break-even point = Fixed costs / Gross margin %

= $25,500 / 60% = $42,500

In other words, you need to make at least $42,500 in sales per month to turn a profit.

Assuming the average order value is $10, your break-even is 4,250 orders per month. In other words, you make profits once your food truck serves 4,250 customers per month.

How to increase profits for a food truck?

There are various strategies you can use to increase profits for a food truck, and they include:

• USP : Start with a unique selling proposition to attract more customers
• Multiple Location : Don’t stick to a single location. Target multiple high-traffic locations
• Customer Relationship : Focus on creating lasting customer relationships who can then promote your business with word-of-mouth
• Get Listed on Food Truck Tracker Apps: This will ensure that potential customers get to know about your locations
• Upsell & Cross-sell: Consider upselling and cross-selling to maximize profits
• Partner with Food Delivery Service: Consider online presence and partner with food delivery services to increase your customer base and profits
• Include Proper Inventory Management: Inventory management helps to prevent understocking or overstocking, reduce food waste, manage cash flow, etc.
• Introduce Mini-Meals : Mini-meals are in trend and hence, consider introducing them to attract health-conscious customers
• Partner with Event Planner : Work with event planners to target business organizations, local groups, etc.
• Track COGS : Stay on budget by calculating food cost percentages
• Avoid Waste : Food waste reduces profitability. Consider using portion control equipment
• Purchase in Bulk : Wholesale purchases are eligible for bigger discounts, and hence, consider purchasing in bulk.

Food Truck Financial Model

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Planning Board scrutinizes plans for first food truck court in Waterville

Questions about traffic and noise were raised Tuesday as the board considered an informal preapplication for a food truck court on Kennedy Memorial Drive.

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Zhanpo “PoPo” Lu, center, holds her younger son, Tiandy Gu, 3, while standing with her husband, Linjie Gu, their other son, Tianky Gu, 6, and Lu’s mother, Xiurong Wang, in front of their food truck, from which they plan to serve traditional Chinese food at PoPo’s Food Truck Court, if their proposal is approved by the Waterville Planning Board. Anna Chadwick/Morning Sentinel

WATERVILLE — Planning Board members scrutinized plans Tuesday for a food truck court off Kennedy Memorial Drive, particularly in light of the fact the city does not have an ordinance regulating such operations.

Waterville has a food truck ordinance, but with up to 10 food trucks proposed for the new court, planners said they wanted to carefully consider whether the space would be adequate to accommodate the trucks, parking for customers and workers and space for customers to sit and eat.

It would be the city’s first food truck court. Working out the initial bugs will likely occur as the owner, Zhanpo “PoPo” Lu, begins to operate the business, officials conceded.

Waterville couple look to open food truck court on Kennedy Memorial Drive

“This is a new thing,” said Jeff Allen, an engineer with A.E. Hodsdon Consulting Engineers, who represented the project Tuesday. “This is actually the first food truck court that I’ve ever done.”

The plans that Allen presented were considered an informal preapplication review. If the board has a quorum July 23, a final plan is expected to be presented for consideration.

Lu, 38, and her husband, Linjie Gu, 32, are seeking to launch PoPo’s Food Truck Court on a vacant lot at 121 Kennedy Memorial Drive. They plan to serve traditional Chinese food and lease space to other food truck owners. Advertisement

The couple own the half-acre lot on Kennedy Memorial Drive and an adjoining lot behind it, off Merryfield Avenue, which they plan to use for food truck employee parking. Combined, the lots total about 1.25 acres.

Streets behind the proposed lot, such as Merryfield Avenue, Carver Street, Brigham Street and Yeaton Street, are in a residential area. The proposed food truck court would be across the road from Prompto 10 Minute Oil Change and Aroma Joe’s Coffee, near the main entrance and exit for JFK Plaza on Kennedy Memorial Drive.

Allen said the food trucks would be situated around the perimeter of the lot facing Kennedy Memorial Drive, with traffic entering off KMD and exiting right only onto that road. Water and sewer would be connected to a small building to be built on the front of the lot, he said. The food truck court would close at 8 p.m., which is required by the property’s zoning.

Board Chairwoman Samantha Burdick said she was concerned about maneuverability of the trucks in and out of the lot because they would remain on-site for varying periods of time. She recommended having fewer than 10 food trucks to accommodate the space needs.

Like other board members, Burdick said she loves the idea of having a food truck court, but she had many questions, including how it will work if a food truck wants to leave the site and has to maneuver around other trucks.

Allen said there would be about 8 feet between trucks and they would pivot to be moved off-site either on their own or by being towed. This would occur only when there are no customers at the food truck court, he said. Advertisement

Burdick and others told Allen they need to see various features on the site plan when he returns next month, including picnic spaces.

Board member Hilary Koch said she was not in favor of having picnic spaces on the site because they would encourage people to sit and eat. Instead, Koch said, customers should be encouraged to buy food and leave.

Burdick said she disagreed with Koch, and if Burdick were to meet friends there to dine, they would want to spend time at the site.

Board member David Johnson agreed with Burdick, saying he lives within walking distance of the site and would not want to just pick up food and walk back home.

Koch, who noted afterward she does not live near the site, also asked about noise that would be generated from the food truck court, likening the sounds of food trucks to those at a fair.

Lu said she would provide electricity to truck operators so there would be no need for them to use loud generators. Advertisement

Allen said a stockade fence is planned for the right side of the lot to obscure headlights from neighboring properties, and the fence should help block noise. A fence could also be installed on the left side of the lot, he said.

Board member Tom DePre asked if large delivery trucks would enter the site.

Lu said they would not, adding that vendors would bring food to the site.

Lu said she did not want to use the lot facing Merryfield Avenue for food trucks because she is sensitive to the needs of neighbors and does not want to bother them.

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