If you have seen the iconic movie, Chef in recent times and if you have always wanted to be an entrepreneur, there are chances that you are already considering a food truck business.
But you don’t believe that even food truck business needs a business plan.
Although it may look easy, even a food truck business plan has its own complications.
Though food trucks have come a long way from the times those ugly grey trucks sold greasy and often slightly unhealthy food, the journey is not as simple as the movie.
Perhaps it is, for this reason, that of the nearly 1500 food trucks in Austin, Texas alone, you barely have a handful of them being showcased on shows like National Geographic and the like.
While the content of the food truck is crucial, it is not really the only driver for robust sales.
A reasonably strong food truck business plan takes into account a lot of other factors.
Along with serving quirky food or some healthy innovative inspirational food, it is important to understand the time and location where it would be serving it.
Different locations have a different demand profile and its own set of challenges that a food truck owner must handle.
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Features of the Food Truck Business Plan
Here is quick step by step outlining of a food truck business plan that can help you make money while you make your dreams into a reality.
1. Get the Legal Formalities out of the Way, Ensure You Have All Permits
This is perhaps one of the biggest and most important aspects of your food truck business plan.
Before anything else, you must get these in the plan.
As food truck owner, Jordan from Mustache Mike’s says,
“As an owner, it can get quite confusing trying to keep up with and understand all of the different mobile vending laws & to obtain all of the required credentials.”
Therefore first and foremost, draw up a list of all the permits you require at the chosen location clearly, understand the dos and don’ts and then go ahead with the actual business of getting the food truck on the road.
Different cities have different requirements and licenses from the health department, traffic authorities as well as parking formalities.
Therefore it becomes very important to plan out the whole game plan very minutely and then take a call on how and why you should plan your move going forward.
It is the most crucial catalyst that can enable your food truck business plan to move forward.
2. Decide on a Cart/Truck
While the shot of Jon Favreau on the steering wheel of the food truck as Chef Carl Casper surely glamorized the profession, reality is not that simple.
Buying a food truck needs a significant bit of funding, and if you are working on a tight budget, perhaps you could even start with a low budget cart.
While drawing up your food truck business plan, it is very important to fix the budget and look at organizing resources.
This is the only way to ensure you have that kind of money that you need for buying a truck.
Remember apart from the cost of the vehicle alone; you also need to spend a significant amount to equip it.
More often than not health departments have pretty many similar rules for food trucks as you might have seen for restaurants.
A completely equipped food truck can cost anywhere between $20,000-40,000.
Sometimes it could be a good idea to check online stores for a great bargain.
3. The Menu Is Important
The greatest element of a food truck business plan is decidedly the food that it peddles.
For this, you need to conduct a deep market research.
For example, the taco and sandwiches market is pretty saturated.
Therefore, if you are planning to peddle the same product, you need to figure out the special factor that will drive up sales.
Think about the food item that will showcase your ultimate expertise and at the same time, come across as a money making idea.
The important factor in your food truck business plan is no doubt about creating your niche.
Remember that when Chef Carl Casper decided to sell the same old sandwiches, he made the Cubanos, the hero of his truck and went big on the authentic flavors of Cuba.
4. Organize Financing
The next pit stop in your food truck business plan is no doubt organizing the funds to execute your overall plan.
Remember that the food truck business requires quite a bit of financing and how you organize the funds remains a primary concern.
You can either look at approaching banks, at crowdfunding or get into a partnership with a friend or family to start off operations.
As a result, you need to concentrate on working out deep-pocketed funding sources for smooth execution.
Remember the initial years throw up a number of challenges that need efficient handling.
5. Get Insurance
Well, running a food truck can be a rather dangerous proposition.
You are dealing with a wide range of inflammable fuel starting with the cooking medium to the fuel used for running the truck.
Therefore, it is important to ensure that your food truck business plan makes sufficient provision for a strong insurance plan.
It is advisable that you talk to a proper agent and explain the exact purpose you need the food truck for.
They will be then able to suggest the most profitable proposition for you.
This will also enable them to help you getting the maximum possible cover.
It can, therefore, be concluded that your food truck business plan has to be multi-pronged.
You cannot rest easy concentrating on any one aspect.
You have to be alert and pay attention to a wide number of factors.
From the menu to the location, every aspect of the food truck business plan need attention.
The ultimate success of the food truck is deeply dependent on all these elements coming together in a cohesive manner.
As we wish you and your clients bon appétit, we also emphasize the need to be alert and active in scanning the multiple requirements of running the food business on wheels.