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Executive Summary

Overview: The Go-Go Truck is a mobile food truck that serves locally produced, farm-fresh fare. Our food truck has meticulously designed a menu consisting of San Diego’s freshest dishes, serving breakfast and lunch meals that go above and beyond traditional food truck cuisine. Ari and Liam met at a catering firm in San Francisco and formed a bond focused on food, laughter, and travel. The Go-Go Truck was created to fulfill a lifelong goal. We promise Fresh Food Fast to individuals in San Diego searching for a great and locally sourced dinner, combining Liam’s vast expertise as a chef of numerous cuisines with Ari’s comprehensive understanding of food systems’ sustainability and agriculture from across the globe.

Mission: To provide excellent, fresh cuisine for breakfast, lunch, or your next event and high-quality, genuine cuisine conveniently and affordably.

Vision: To become the most well-known mobile food truck brand in Los Angeles and throughout the United States and Canada.

Industry Overview: Between 2016 and 2021, the food truck sector grew at an annualized pace of 12.1%. The food truck industry in the United States has expanded consistently over the previous decade, and it has continued to grow rapidly in the last five years, with annual growth of 12.1%. The food truck sector grew at an annual pace of 8.6% from 2016 to 2021. Except for a short drop from 2016 to 2017, the pace of growth has been steadily increasing. The rate was already at 8% in 2021. Between 2016 and 2021, the market for food trucks grew by an average of 6.6 percent every year. The industry’s market value is $1.16 billion in 2021, up from $1.1 billion in 2020. The market continuously increased from 2016 to 2019, reaching $1.21 billion in 2019, before declining in 2020 and rising again in 2021.


Financial Overview

financial overview of food truck business plan

Financial Highlights

Liquidity2020A2021A2022F2023F2024F
Current ratio612233242
Quick ratio611223140
DSO88888
Solvency
Interest coverage ratio8.211.114.2
Debt to asset ratio0.010.010.20.180.16
Profitability
Gross profit margin51%51%53%53%53%
EBITDA margin12%14%21%22%22%
Return on asset5%6%13%14%14%
Return on equity5%6%16%17%17%

Fund Usage

fund usage of food truck business plan

Industry Analysis

The increasing popularity of the food truck sector has transformed the public’s impression of food trucks from inexpensive eats to intriguing local – or foreign – meal stops. Food trucks have evolved into full-fledged restaurants, providing anything from burgers to ice cream to cupcakes to exotic cuisine. This shift is reflected in the industry’s patterns, indicating an increase in truck numbers and revenue.

Food truck growth was first slowed by COVID-19. Most people are working from home; several of the most successful pre-pandemic customer-gathering areas, such as parking lots near business hubs, were temporarily unprofitable. However, unlike conventional eateries, this business is more mobile and has had fewer losses and closures. Indeed, despite epidemic limitations and social distancing measures, the food truck sector continued to thrive, letting individuals “eat out.”

Instead of conventional direct mailing marketing tactics, food truck owners use specialized websites, social media campaigns, and geolocation capabilities to contact their consumers. They also use social media marketing to promote engagement by engaging with their local audience, hosting events, and spreading the word.

Food truck fans are mostly millennials (47%), and many are repeat customers. Food truck clients aged 18 to 34 are the most likely, followed by those aged 35 to 44. Over 80% of food truck eaters go there for a thrilling, new, and unusual experience. The food truck industry’s success is fueled by customer happiness. More than 90% of customers say their experience was outstanding.

Food Trucks have seen a growth in popularity in the five years leading up to 2021, owing to an increase in gastronomy in the United States. During this time, the industry has outperformed the rest of the foodservice industry. On city streets and parking lots, in parks, and during festivals, the industry comprises operators who cook and sell a wide variety of cuisine from mobile food trucks. Since its inception, the business has developed swiftly. Many new food truck operators are joining the market to meet shifting customer expectations for gourmet fare and creative culinary ideas. Industry revenue is predicted to increase by 6.6 percent annually to $1.2 billion after five years due to these developments.

The COVID-19 (coronavirus) epidemic has impacted foot traffic in commercial district locations, where a big portion of the Food Truck sector operates. Many individuals have moved to work remotely, putting industry operators in a difficult situation. Food truck operators have changed their focus to residential areas, important businesses, and rest spots in response. Some food trucks have entered into parking agreements with hospitals and enterprises. Amid the epidemic, some food trucks have switched to selling groceries. Most tiny, independently owned food trucks, unlike brick-and-mortar businesses, do not qualify for the Economic Injury Disaster Loan (EIDL) or the Paycheck Protection Program (PPP)funds, causing some to leave the sector permanently.

industry analysis of food truck business plan

Since the 2008 recession, food trucks have become as popular as family dining or fast food as a restaurant concept. Because of the cheap cost, many would-be restaurateurs choose to establish food truck enterprises, which are increasingly considered legitimate places to start a career in the food industry. Food trucks now serve anything from cupcakes to grilled cheese to taco-waffle hybrids and anything else you can think of. Food trucks now provide gourmet, locally produced, artisan menu items beyond street food cuisine.

The target market for food truck enterprises is millennials in the middle class between the ages of 25 to 44 account for 43 percent of monthly food truck expenditure, with people under the age of 25 accounting for another 20 percent. The trendy nature of food trucks and the social aspect, convenience, and potential to support local companies frequently attract this group. Furthermore, although purchasing food from a food truck usually necessitates some discretionary cash, it also lets consumers taste new, high-quality foods without making a significant commitment, making them popular among middle-class clients.

industry analysis of food truck business plan

According to IBISWorld, more than 24,000 food trucks will be operating in the United States by 2021, generating roughly $1 billion in revenue. Meanwhile, growth is expected to reach 7.5 percent between 2015 and 2020. Food trucks may be more popular in certain locations than others because of state and municipal restrictions that differ by state. Cuisine trucks have long been linked with quick-to-prepare dishes like hot dogs and ethnic street food prevalent in congested metropolitan areas. Food trucks are now seen in more places than merely busy street corners in heavily populated cities, as their menus have expanded and their popularity has risen.

Some food trucks originated as low-cost alternatives to traditional eateries, while others are run as extensions of existing businesses. Popular restaurants sometimes add a food truck to their business to bring their meals to huge gatherings or other special occasions. Customers may discover about a restaurant by ordering meals from its food truck during an outdoor event. It may also be used as a marketing tactic to bring attention to a brand.

Marketing Plan

marketing plan of food truck business plan

Website: The Go-Go Truck website will provide complete information on where and how to order. We will be posting our updated menus for our delivery and catering services.

Social Media: The Go-Go Truck will constantly share photos of our delicious foods and actively answer online inquiries.

Geofencing Marketing: The Go-Go Truck will be using location-based ads. We will be sending ads to users in the area.

Delivery & Catering:  We will promote our delivery and catering services on our website and social media platforms. We will be giving business cards with information on where to order to those who visit our food truck.

Discounts and Promotions:  The Go-Go Truck provides regular discounts and offers like “bring a friend” combo deals and a complimentary drink.

Events: Attending food festivals and events is a perfect place for The Go-go Truck to shine. We will be giving promotional brochures and business cards.

Organogram

organogram of food truck business plan

Financial Plan

Earnings:

financial plan of food truck business plan

Break-Even Analysis:

financial plan of food truck business plan

Income Statement:

2020A2021A2022F2023F2024F
ANNUAL REVENUE
Item 19,21759,117175,410415,277781,357
Item 234,701222,558660,3681,563,3942,941,580
Item 34,06719,56146,43278,519114,905
Total annual revenue47,985301,236882,2112,057,1893,837,842
% increase528%193%133%87%
COST of REVENUE
Item 13602,2596,61715,42928,784
Item 24803,0128,82220,57238,378
Item 352,00065,00078,00091,000104,000
Item 47203,6158,82216,45823,027
Item 5140,000336,000560,000840,0001,120,000
Item 660,000144,000240,000360,000480,000
Item 732,00061,33385,533112,153141,435
Total Cost of Revenue285,560615,220987,7941,455,6121,935,625
as % of revenue595%204%112%71%50%
Gross Profit-237,575-313,984-105,583601,5781,902,218
SELLING & ADMIN EXPENSES
Item 128,00096,800154,880175,692193,261
Item 275,000105,000120,000120,000120,000
Item 336,00096,000108,000120,000120,000
Item 48,00012,00012,00012,00012,000
Item 53,83918,07444,11161,716115,135
Item 63,35912,04926,46641,14476,757
Item 75,60010,00012,90415,03417,376
Item 86,66714,00022,06730,94040,701
Total selling & admin expenses166,464363,924500,428576,525695,230
as % of revenue347%121%57%28%18%
Net profit-404,039-677,907-606,01125,0521,206,987
Accumulated net profit-404,039-1,081,947-1,687,957-1,662,905-455,918

Cash Flow Statement:

2020A2021A2022F2023F2024F
CASH FLOW from OPERATING ACTIVITIES
Net profit before tax-$404,039-$677,907-$606,011$25,052$1,206,987
Depreciation$44,267$85,333$120,504$158,127$199,512
Payables
Item 1$4,333$5,417$6,500$7,583$8,667
Item 2$11,667$28,000$46,667$70,000$93,333
Item 3$6,250$8,750$10,000$10,000$10,000
Item 4$3,000$8,000$9,000$10,000$10,000
Item 5$667$1,000$1,000$1,000$1,000
Total payables$25,917$51,167$73,167$98,583$123,000
change in payables$25,917$25,250$22,000$25,417$24,417
Receivables
Item 1$320$1,506$3,676$5,143$9,595
Item 2$360$1,807$4,411$8,229$11,514
Total receivables$680$3,314$8,087$13,372$21,108
change in receivables-$680-$2,634-$4,773-$5,285-$7,736
Net cash flow from operating activities-$334,536-$569,958-$468,280$203,311$1,423,180
CASH FLOW from INVESTING ACTIVITIES
Item 1$16,000$13,200$14,520$15,972$17,569
Item 2$20,000$22,000$24,200$26,620$29,282
Item 3$28,000$22,000$14,520$10,648$11,713
Item 4$96,000$88,000$72,600$79,860$87,846
Item 5$20,000$22,000$24,200$26,620$29,282
Net cash flow/ (outflow) from investing activities-$180,000-$167,200-$150,040-$159,720-$175,692
CASH FLOW from FINANCING ACTIVITIES
Equity$400,000$440,000$484,000$532,400$585,640
Net cash flow from financing activities$400,000$440,000$484,000$532,400$585,640
Net (decrease)/ increase in cash/ cash equivalents-$114,536-$297,158-$134,320$575,991$1,833,128
Cash and cash equivalents at the beginning of the year-$114,536-$411,693-$546,014$29,978
Cash & cash equivalents at the end of the year-$114,536-$411,693-$546,014$29,978$1,863,105

Balance Sheet: 

2020A2021A2022F2023F2024F
NON-CURRENT ASSETS
Item 1$16,000$29,200$43,720$59,692$77,261
Item 2$20,000$42,000$66,200$92,820$122,102
Item 3$28,000$50,000$64,520$75,168$86,881
Item 4$96,000$184,000$256,600$336,460$424,306
Item 5$20,000$42,000$66,200$92,820$122,102
Total$180,000$347,200$497,240$656,960$832,652
Accumulated depreciation$44,267$129,600$250,104$408,231$607,743
Net non-current assets$135,733$217,600$247,136$248,729$224,909
CURRENT ASSETS
Cash-$114,536-$411,693-$546,014$29,978$1,863,105
Accounts receivables$680$3,314$8,087$13,372$21,108
Total current assets-$113,856-$408,380-$537,927$43,349$1,884,214
Total Assets$21,878-$190,780-$290,791$292,078$2,109,122
LIABILITIES
Account payables$25,917$51,167$73,167$98,583$123,000
Total liabilities$25,917$51,167$73,167$98,583$123,000
EQUITIES
Owner’s equity$400,000$840,000$1,324,000$1,856,400$2,442,040
Accumulated net profit-$404,039-$1,081,947-$1,687,957-$1,662,905-$455,918
Total equities-$4,039-$241,947-$363,957$193,495$1,986,122
Total liabilities & equities$21,878-$190,780-$290,791$292,078$2,109,122