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1.0 Executive Summary
The purpose of this business plan is to raise $100,000 for the development of a food truck business that will provide a broad range of fare. Food Truck, LLC (“the Company”) is a Texas based business that will provide mobile sales of food to customers in its targeted market. The Company was founded by Peter Smith.
The business will provide a broad range of American food. In addition to providing services through established routes during the weekday, the Company will also provide service at festival and events throughout the target market.
1.1 The Services
The primary revenue center for the business will come from the ongoing sale of its American cuisine during lunch and early dinner hours. The Company will have several established routes that it will go through on a daily basis. The business will station the food truck near busy offices and commercial complexes during these hours. The location will be updated on the Company’s social media pages on a daily basis.
A major component of the Company’s growth will come from the providing services at events and festivals. The Company, for major gatherings, will enroll as a food service vendor at regional sporting events and community events. The Company will also develop ongoing relationships with event planners that will have the business provide catering at their locations.
Chapter three of this business plan will further discuss the operations of the business.
1.2 Financing
Mr. Doe is seeking to raise $100,000 via a bank loan. The terms of this loan are expected to be over a 10 year period and carrying a nine percent interest rate. The financing will be used for the following:
• Food truck acquisition and retrofitting
• Financing for the first six months of operation.
• Initial marketing
Management will contribute $50,000 towards the development of the business. Given the low operating costs and highly predictable streams of revenue generated, the Company would be a strong candidate for expansion capital as needed. The business, after the third year of operation, may acquire a second loan in order to develop additional food trucks.
1.3 Mission Statement
Management’s mission is to develop Food Truck, LLC into a widely recognized business that serves outstanding American cuisine at an affordable price.
1.4 Management Team
Peter Smith is a highly experienced food service entrepreneur. He will able to quickly bring the operations of this business to profitability with the intent on developing a entire fleet of food trucks.
1.5 Sales Forecasts
1.6 Expansion Plan
Management intends on using a number of marketing strategies that will further increase brand name awareness for the Food Truck. The Company will make ongoing reinvestment into its marketing campaign so that the business becomes well recognized in the target market. As stated above, the Company intends to develop additional food trucks after the third year of operation. The business will continually expand the number of food items available on the menu while concurrently fostering ongoing relationships with event planners.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Food Truck, LLC. The business is registered as a limited liability company in the State of Texas.
2.2 Required Funds
The Company is seeking $100,000. The Founder will contribute $50,000 towards the business. The funds are to be used as follows:
2.3 Investor Equity
At this time, the Company is seeking a loan rather than an investment.
2.4 Management Equity
Peter Smith retains a 100% ownership interest in the business.
2.5 Exit Strategy
In the event that it is financially prudent to do so, Management may sell the business to a third party. The Company may also have one of its employees purchase the Company from Peter Smith. However, this event is not expected to occur for at least ten years.
3.0 Operations
As stated in the executive summary, the Company will provide the general public with a broad range of American fare that is popular in Texas. These items will include specialty BBQ dishes and regional specialties. The Company will often integrate new menu items in order to develop a repeat customer base. The business will employ several people including people that will operate the truck as well as individuals that will prepare food in the Company’s commissary kitchen. The business, in time, may do direct delivery of food that is prepared at the commissary kitchen using third-party delivery applications. This would facilitate a much higher inventory turnover for the business.
For its operations, the Company will route throughout the target market on a daily basis. The Company’s website will have functionality that will show the location on a real-time basis. Given the popularity of the cuisine offered, the Company expects that many people that work in nearby office buildings will purchase lunch from the business quite frequently.
On weekends, the food truck will be geared towards providing services at festival events. This will allow the business to generate massive amounts of revenue (with $5,000 per weekend expected). The Company will also provide onsite catering services for weddings, anniversaries, and corporate events.
Management anticipates gross margins of 60% on all sales.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will showcase the food service industry, the competition, the customer profile, and the ongoing competition that the business will face moving forward.
Currently, the economic climate in the United States is great. While interest rates have remained somewhat high, inflation has decreased drastically. It is expected that the US Federal Reserve will continue to take a measured approach when adjusting interest rates as their target goals regarding inflation are being met.
However, any potential issues with the economy will not impact the revenues of Food Truck, LLC. The business is offering a wide range of American cuisine at an affordable price. Additionally, the business – as it is mobile – has low and controllable operating costs. This will ensure the profitability of the business at all times.
4.2 Industry Analysis
Currently, there are approximately 50,000 businesses that operate as a food truck. Each year, these entities generate over $3 billion of revenue. This industry works in tandem with the catering industry, which produces $4 billion of revenue among 6,000 companies.
This industry has enjoyed substantial growth over the past ten years. There have been numerous TV shows that showcase the operations of food trucks. Given the lower cost of establishing this type of business as opposed to a restaurant – many smaller scale food service entrepreneurs have taken to starting food trucks to enter this field.
4.3 Customer Profile
The Company will operate on a completely mobile basis. As such, it is extremely difficult to determine the average customer of the business as people of all backgrounds enjoy the type of cuisine offered. Generally, the average customer will have an annual household income of $50,000 to $100,000. The average ticket per transaction will be $15. This is affordable to people within this income range.
One of the most important things to note in this section of the business plan is to showcase the population density of the market, the average/median household incomes, and the number of people that have an interest in this type of fare. The average American spends over $3,000 per year on food that is consumed outside of the home.
4.4 Competition
As with any mobile food service business, the Company will face ongoing competition among food trucks that serve similar cuisine. The business will continue to differentiate itself by offering a number of specialties that will be updated on a daily basis. As stated earlier, this will facilitate a loyal customer base.
In this section, you should carefully identify any potential competitors that your business will face within your respective market. You should compare menu items and pricing points. You can also discuss restaurants that serve similar cuisine that may be ongoing competitor as well.
5.0 Marketing Plan
In order to ensure a repeat and loyal customer base, the Company will implement numerous strategies. Most importantly, the Company will leverage several online marketing strategies that will ensure that ongoing customers are aware of the location on a daily basis.
5.1 Marketing Objectives
• Use social media in order to showcase the daily location of the Food Truck.
• Foster ongoing relationships with event planners that will have the business provide fare at weddings, corporate events, anniversaries, and related gatherings.
• Maintain ongoing relationships with festival operators that will allow the business to offer food at these large-scale events.
5.2 Marketing Strategies
Most importantly, the Company intends to maintain an expansive presence among all social media platforms in order to create immense awareness for Food Truck, LLC. On a daily basis, the address and route of where the truck will be located will be updated. Pictures of the Company’s fare will be uploaded on a daily basis as well. The Company will have several videos created that will be uploaded to YouTube.
Management will develop ongoing relationships with event planners throughout the target market. This will allow the business to generate substantial revenues during weekend operations if the business is not going to be attending a major festival or similar event. The business will foster these types of relationships throughout the life of the business in order to further increase revenues.
The Company, in regards to additional revenue streams, will allow customers to place online orders through the Company’s website. The business will enroll among food delivery service applications. These drivers will then pick up orders and deliver them to customer locations. The business will also update the daily address on these platforms of where the food truck is stationed so that orders can be picked up from the daily location as well.
The business will maintain an expansive propriety website that showcases the American fare, beverages, and other content-rich information. This website will be search engine optimized specific for the target market. Additionally, the platform will be mobile device friendly and ecommerce enabled as discussed above.
5.3 Pricing
This part of the business plan should showcase the anticipated pricing of the American fare and beverages that will be offered. This section can also document the anticipated revenues that will be generated for event catering operations.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Payroll
6.3 Management Biographies
In this section you should discuss your experience in the food service industry, and your passion for developing your food truck. You can also discuss your educational background and relevant work experience.
7.0 Financial Plan
7.1 Underlying Assumptions
The Company has based its proforma financial statements on the following:
• Food Truck, LLC will have a compounded annual growth rate of 17%.
• The Owner will acquire $100,000 of capital to launch operations.
• The business will settle most short-term payables on a monthly basis.
7.2 Sensitivity Analysis
Food Truck, LLC’s revenues are only modestly sensitive to negative changes in the economy. The business’ pricing point is very reasonable as compared to the incomes of the target market. Additionally, the business has highly controllable operating costs, which further ensures that the business will remain economically viable at all times. These risks are further abated via the Company’s catering operations.
7.3 Source of Funds
7.4 Profit and Loss Statement
7.5 Cash Flow Analysis
7.6 Balance Sheet
7.7 Breakeven Analysis
7.8 Business Ratios
