Sample Business plan Paper for a Food truck

The Outline

  1. Company overview
  2. Operational plan and management plan
  3. Products and Services
  4. Customers
  5. Marketing and Sales
  6. Financial Forecast
  7. Required Funds
  8. Insurance and permits
  9. Parking and connections
  10. Key success factors

Business overview

The fast-food mobile truck or restaurant will majorly deal with the sale of pizza in Amarillo Texas. The company’s objective will be to inspire and maintain a simple philosophy in the production and sale of highest quality pizza products. Any food truck should maintain a clean and sparkling business environment to ensure a warm and friendly customer services (Mintzer 3). Notably, the food truck business will maintain a positive market reputation of fresh pizza products and positive customer care environment. The food truck will provide clear information about the key ingredients used in making its pizza products. Our primary objective will be on maintaining a higher quality of food products and helping the consumers to make conscious decisions concerning their food choices.

Operational plan and management plan

The food truck business will operate 6 days a week and will serve breakfast, lunch, dinner, and late evening customers. The table below captures the captures the food truck’s operational schedule.

Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Breakfast 8am-10am 8am-10am 8am-10am 8am-10am 8am-10am 8am-10am Closed
Lunch 11am-3pm 11am-3pm 11am-3pm 11am-3pm 11am-3pm 11am-3pm Closed
Dinner 4pm-8pm 4pm-8pm 4pm-8pm 4pm-8pm 4pm-8pm 4pm-8pm Closed
Late evening 9pm-11pm 9pm-11pm 9pm-11pm 9pm-11pm 9pm-11pm 9pm-11pm Closed

 

Table 1: Proposed schedule

Source: Author’s own compilation

We will also offer special dining services and orders for different social events and occasions. The wait time will be less than 3 minutes, however, during peak periods, the customers will be forced to wait for about 5 minutes for the successful processing of their pizza orders. Our queuing system will incorporate about two workers providing services such as taking order, collecting payments, and preparing different orders from the clients. Overall, the pizza business will be a sole proprietorship with the owner sharing all the managerial risks and responsibilities and other daily operations of the mobile restaurant.

Products and Services

The food truck will produce and sell different types of pizzas to its targeted customers. The special pizza product is a terrific combination of onion, green pepper, and sausage. Similarly, the popular taco pizza is a special delight among residents of Amarillo Texas. The pizza is a unique combination of refried beans, cheddar beef, and lettuce cheeses, and tomatoes. Our chicken-flavored pizza steamed up with ranch sauce and other traditional family recipe will attract more consumers to the food truck restaurant. Other products such as the butternut squash and crispy sage pizza, buffalo chicken pizza sticks, brown butter lobster, cookie-dough dessert pizza, and our special meatball pizza. Furthermore, our charred corn and avocado pizza and the scrambled egg breakfast pizza are other special delicacies that the food truck will offer to its targeted consumer bases. These product ranges will target customers from different segments or socio-economic backgrounds. The pricing of the food-truck pizza products will be comparatively lower to those of other related business within Amarillo Texas. A lower pricing strategy will help the business to remain competitive and viable in food truck industry. Furthermore, such strategies will focus on the production of high value commodities to attract and retain more customers to its products. However, the pricing will emanate from a comprehensive review of other food truck businesses within the city of Amarillo Texas.

Customers

Amarillo is the 14th-most crowded city in the state of Texas, United States. Notably, with such high population, the food truck business hopes to record higher sales from its sales of pizza products. The food truck will also target a community of shoppers and professionals visiting and living within the city. The food truck will receive approximately 80% of its revenue from the repeat customer. Our focus will be on attracting both low and upper-income consumers. We will appeal to their innate desires for delicious and quality pizza products within their reach while exploring the beauty of the city of Amarillo in Texas. The food truck location will be within easy reach or access of students within the city, workers, and shoppers. We will also provide food truck services during special events such as frequent horseback riding activities. The business will rely largely on the goodwill, friendly, and welcoming folks of the Amarillo Texas. These events will increase the visibility of the food truck business among the attendants. These new clients may share the food truck’s services and products through their social media accounts further strengthening its market operations.

Marketing and Sales

The food truck business will create a unique or great environment for its consumers. The business hopes that the mouthwatering pizza menu options will meet the varied expectations of the customers. The primary marketing strategy will be the food truck impressive customer care services. Moreover, the food truck will employ internet-marketing processes to attract and retain more consumers. Different social website platforms such as Facebook and Twitter will enable the food truck to enhance its market presence. Other important strategies will include using flyers and word of mouth to market the company’s products to the targeted consumer bases. During its initial stages of operation, the food truck will offer the consumers a 10% discount on all the pizza products. These marketing and sales strategies aim to expand the food truck’s initial client bases and create a positive buzz within Amarillo Texas. Correspondingly, we will decorate our trucks with appealing graphic wraps displaying our name, menu, contact information, and social media accounts.

Financial Forecast

The proposed food truck business is estimating to reach approximately $150,000 in annual sales in its first year of operation. Progressively, the business hopes to record increases in its annual sales and operational efficiency. Based on its marketing plans, management acumen, and operational efficiency, the company anticipates better performances in Amarillo Texas. With its primary focus on the production of quality pizza products, lower prices, and impressive customer services, the company is hoping to maintain its positive market trajectories and performances. Overall, the food truck will hit approximately $300,000 in its annual sales projections in its subsequent years of operation.

Required Funds

The food truck business will be a sole proprietorship. Accordingly, the owner will facilitate most of the operations including funding. Accordingly, the owner’s equity or personal savings will be crucial in funding the food truck’s operations. Nevertheless, the food truck will require additional funding to facilitate most of operational processes. For instance, the sole proprietor will seek money from different financial institutions and close associates to facilitate related operations. The table below captures the proposed sources required funds that will help the food truck business to remain afloat and operational.

Sources and uses of funds Owner Loan Total
Current Assets      
Cash 10,000 0 10,000
Food inventories 0 5,000 5,000
Total current assets 10,000 5,000 15,000
Fixed Assets      
Utilities 1,200 0 1,200
Kitchen equipment 0 1,500 1,500
Food truck 0 40,000 40,000
Total fixed assets 1,200 41,500 42,700
Total Assets 12,200 46,500 57,700

Table 2: Proposed funding sources

Source: Author’s own compilation

The food track will pay back the loan over a specified duration based on its agreements with the lending agencies or financial institutions. Every business such as the proposed food truck should ensure efficient utilization of the funds by avoiding wastage and reducing operational costs of production (Ideris et al. 85). With the impressive amount of working capital and assets, the food truck hopes to gain a larger market share in its proposed operations in Amarillo Texas.

Insurance and permits

The business will maintain a higher optimal level of business liability insurance. The insurance coverage will capture our specific business model. Accordingly, we will insure our business against accidents such as fire outbreaks in our kitchen and related injuries. Other important insurance coverage will address food-borne conditions among the employees and our consumers (The City of Amarillo). According to the state of Texas food truck insurance policies, food trucks are responsible for all irresponsible actions by their employees in public spaces. Commercial vehicle insurance of the food trucks will also cover the driver and protect such employees from various work-related accidents and problems. The food truck is also vulnerable or exposed to crime such as theft of money among the employees and other criminal elements. Therefore, the business will acquire insurance coverage to safeguard against such risks and challenges. According to Texas Department of Insurance, the food truck should regulate its insurance regulatory requirements on a regular basis to ensure its absolute compliance with local and state policies (The City of Amarillo). We also seek and obtain valid certificate from city’s public department on the food truck’s operations. Through such certificates, the food truck will maintain its ability to prepare and serve quality pizza products to its targeted consumer segments.

Parking and connections

The food truck business will operate based on the new Downtown Parking Management plan proposed by the city of Amarillo. The plan provides new regulations and policies for businesses planning to set up their operations within streets and parking garage spaces within the city. For instance, the city has an hourly packing charge of approximately $0.75 centers and a $0.25 transaction charges for food truck businesses within its streets (The City of Amarillo). The city has a digital payment system for these parking charges. The food truck business will utilize such platforms to remain compliant with different operational requirements. Most of our operations will be located next to shopping malls, business parks, bus terminals, train stations, office buildings, and rest stops.

Key success factors

The food truck will base its operations in busy locations within the foot traffic. The strategic operations will enable the business to maximize its projected sales. We will meet all the important licensing requirements by the city authorities of Amarillo Texas. Our food trucks will maintain higher quality standards to avoid unnecessary fines and sanctions from the city regulators. High quality pizzas and impressive customer services will be crucial in maintaining higher market standards.

 

 

Work Cited

Ideris, M. S., et al. “The Factors that Influenced Consumer’s Food Choice of Mobile Food Truck.” Management (STHEM), Universiti Utara Malaysia Postal Address: STHEM, UUM COLGIS 06010, Sintok Kedah Statement of review (2017): 85.

Mintzer, Rich. Start Your Own Food Truck Business: Cart Trailer Kiosk Standard and Gourmet Trucks Mobile Catering Bustaurant. Entrepreneur Press, 2015.

The City of Amarillo. Downtown Parking Management., www.amarillo.gov/departments/public-safety-and-organizational-services/municipal-court/downtown-parking-management (Accessed 4 September 2019)