A Sample Coffee Van Business Plan Template for Australia

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A coffee van business is a business that sells coffee from a van. Coffee vans are designed to service areas where it might be difficult to quickly construct coffee bars or cafés, areas such as carnival sites, construction sites, sporting event centers, campgrounds, beaches et al.

Coffee vans also take advantage of places like campuses, office complexes, military bases, mechanical village, industrial parks, farmer’s markets, cinemas, and religious centers to sell their coffee and snacks. Statistics have it that the Australian Coffee Market recorded a revenue of USD 2.36 billion in 2020, and it is projected to reach a CAGR of 2.19 percent during the forecast period.

Steps to Write a Coffee Van Business Plan

Executive Summary

Cosmas Collins™ Coffee Van Company is a registered and licensed food truck company that will be based in Melbourne, Victoria but will operate across major cities in Minnesota serving delicious coffee drinks. Cosmas Collins™ Coffee Van Company has been able to secure all relevant licenses and permits to operate throughout Australia.

We will ensure that we abide by the rules and regulations guiding the industry and we will only hire experienced and qualified drivers with valid driver’s licenses to handle our vans. Cosmas Collins is the founder and CEO of Cosmas Collins™ Coffee Van Company.

Company Profile

a. Our Products and Services

Cosmas Collins™ Coffee Van Company. will be involved in the sale of;

Coffee beverages are served in different forms
Snacks

b. Nature of the Business

Our coffee van business will operate the business-to-consumer model.

c. The Industry

Cosmas Collins™ Coffee Van Company. will operate in the coffee van and food truck industry.

d. Mission Statement

Our mission is to build a coffee van business that will meet the needs of all our customers in the regions and cities where our coffee vans will cover and to sell franchises all across Australia and New Zealand.

e. Vision Statement

Our vision is to establish a coffee van business that will become the number one choice in the locations we intend to cover.

f. Our Tagline (Slogan)

Cosmas Collins™ Coffee Van Company – Bringing Rich Coffee to You!

g. Legal Structure of the Business (Sole Trader, Partnership, Company, or Trust)

Cosmas Collins™ Coffee Van Company will be formed as a Company.

h. Our Organizational Structure

Chief Executive Officer (Owner)
Manager
Accountant (Cashier)
Coffee Van Drivers (Attendants)

i. Ownership/Shareholder Structure and Board Members

Cosmas Collins (Owner and Chairman/Chief Executive Officer) 52 Percent Shares
Rodman Brisbane (Board Member) 18 Percent Shares
Jeff Nelson (Board Member) 10 Percent Shares
Henry Peter (Board Member) 10 Percent Shares
Maggie Benson (Board Member and Sectary) 10 Percent Shares.

SWOT Analysis

a. Strength

Excellent operational history
Superb menu list
Trained professionals
Well-equipped coffee vans
Excellent customer testimonials
Reliable and efficient coffee vans

b. Weakness

Financial Constraints
The owner will need a loan to purchase the latest coffee vans and coffee making equipment
A new business that will be competing with well-established coffee van businesses and other bars that retail coffee.
Inability to retain our highly experienced employees longer than we want

c. Opportunities

Online market, new services, new technology, and of course the opening of new markets.

i. How Big is the Industry?

The coffee industry is highly thriving in Australia. Approximately 19 Million Australians drink coffee, that’s 75% of the entire population! Of those, 28% have three or more cups of coffee daily.

ii. Is the Industry Growing or Declining?

It will be safe that the coffee van industry is growing industry even though the industry revenue is expected to decline by an annualized 1.1 percent over the five years from 2020 to 22. This decline is primarily due to the social distancing restrictions in place following the outbreak of COVID-19.

iii. What are the Future Trends in the Industry

The future trends when it comes to the coffee van business will revolve around technology. Software that is meant to predict what customers want from a coffee van business.

iv. Are There Existing Niches in the Industry?

No, there are no existing niches when it comes to the coffee van business.

v. Can You Sell a Franchise of your Business in the Future?

Cosmas Collins™ Coffee Van Company has plans to sell franchises in the nearest future and we will target major cities with thriving coffee markets in Australia and New Zealand.

d. Threats

Loans diminish profitability until they are paid off
The first year will be financially tight while we gain customers and pay off loans
Competition in the area could increase
Management of employees requires time, money, and efforts
The regulatory department could change its regulatory status and decide to enforce strict regulations that can strangulate new businesses.

i. Who are the Major Competitors?

Cappuccino Xpress Coffee Vans
Cafe2U
Hart’s Coffee Cart
Very Melbourne Coffee Van
Coffee Addiction Mobile Coffee Van
Perth Coffee Express
YahavaKoffee Van
Zumo Mobile Coffee Van
The Big Coffee Van
MyBarista – Sydney Mobile Coffee Catering
Clive’s Mobile Coffee
Van Wild Coffee
Common Ground Coffee Van
Xpresso Mobile Café
Lava Carts
Custom Coffee Vans
Xpresso Delight
Jim’s Mobile Café
The Coffee Guy.

ii. Is There a Franchise for Coffee Van Business?

Lava Carts: From $180,000
Xpresso Mobile Café: $122,500 + GST
Fibonacci Coffee: From $100,000
Hudsons Coffee: From $350,000
Degani: $125,000 – $650,000
Fields: $180,000 – $247,000
Coffee Club: $450,000 + GST – $750,000 + GST
Cafe2u: From $136,000 + GST
Xpresso Delight: From $59,900
The Coffee Guy: From $44,000 + GST
Jim’s Mobile Café: On Demand.

iii. Are There Policies, Regulations, or Zoning Laws Affecting Coffee Van Business?

Yes, there are regulations and zoning laws for the coffee van business in Australia. When looking to start a coffee van business in Australia, it is recommended you first look at the existing laws and zonal regulations in the state or council you reside in to know what is expected of you.

Have it in mind that every council is different, so you need to understand if there are any restrictions, fees, or anything else that may be required of you. It is always a good idea to call your local council and have a chat with the food and health officer.

Also leverage that opportunity to ask questions concerning where you can and cannot operate, the approved distances to be kept from competing cafes, etc. You will also need to research other regulations relating to your coffee business like:

Hygiene policies
The size of the cart and the equipment needed
How to handle, store and prepare the products
The street vending rules.

Marketing Plan

a. Who is Your Target Audience?

i. Age Range

Our target market comprises adults above 18 years old who have the finance to purchase coffee drinks from us.

ii. Level of Educational

We don’t have any restrictions on the level of education of those who will purchase coffee drinks from us.

iii. Income Level

There is no cap on the income level of those who will purchase coffee drinks from us.

iv. Ethnicity

There is no restriction when it comes to the ethnicity of the people who will purchase coffee drinks from us.

v. Language

There is no restriction when it comes to the language spoken by the people who will purchase coffee drinks from us.

vi. Geographical Location

Anybody from any geographical location is free to buy our coffee drinks.

vii. Lifestyle

Cosmas Collins™ Coffee Van Company. will not restrict any customer from purchasing coffee drinks from us based on their lifestyle, culture, or race.

b. Advertising and Promotion Strategies

Deliberately Brand All Our Vans.
Tap Into Text Marketing.
Make Use of Bill Boards.
Share Your Events in Local Groups and Pages.
Turn Your Social Media Channels into a Resource
Develop Your Business Directory Profiles
Build Relationships with players in the key industry.

i. Traditional Marketing Strategies

Marketing through Direct Mail.
Print Media Marketing – Newspapers & Magazines.
Broadcast Marketing -Television & Radio Channels.
OOH, Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
Leverage direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.

ii. Digital Marketing Strategies

Social Media Marketing Platforms.
Influencer Marketing.
Email Marketing.
Content Marketing.
Search Engine Optimization (SEO) Marketing.
Affiliate Marketing.
Mobile Marketing.

iii. Social Media Marketing Plan

Start using chatbots.
Create a personalized experience for our customers.
Create an efficient content marketing strategy.
Create a community for our target market
Gear up our profiles with a diverse content strategy.
Use brand advocates.
Create profiles on the relevant social media channels.
Run cross-channel campaigns.

c. Pricing Strategy

When working out our pricing strategy, Cosmas Collins™ Coffee Van Company. will make sure it covers profits, insurance, premium, license, economy or value, and full package. Our pricing strategies will reflect;

Cost-Based Pricing
Value-Based Pricing
Competition-Based Pricing.

Sales and Distribution Plan

a. Sales Channels

Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, strategic alliances in the event and party planning industry, and freelancers to help refer customers to us.

Cosmas Collins™ Coffee Van Company. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, so we can have a visible, in-demand service that is competitively priced and promoted to our customers.

b. Inventory Strategy

The fact that we will need supplies such as coffee, sugar, milk, cups, and straws mean that Cosmas Collins™ Coffee Van Company. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, and processing items. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.

c. Payment Options for Customers

Here are the payment options that Cosmas Collins™ Coffee Van Company. will make available to her clients;

Payment with cash
Payment via credit cards
Payment via online bank transfer
Payment via mobile money transfer

d. Return Policy, Incentives, and Guarantees

At Cosmas Collins™ Coffee Van Company., our customers are our top priority hence if you receive coffee drinks that are different from what you paid for, we will sincerely apologize. You can call us as soon as you notice that there was an error in your order you may come to pick up the correct order.

For credit card payments, you will be refunded the sales price amount associated with the error and be charged for the new items’ price.

For cash payments, you will be asked to pay the difference of the balance if the new coffee drink has a greater value than the one received in error. In the same way, you will receive the difference of the balance back as credit if is less than the one received in error. In some cases, we may offer you store credit.

Your order will be a priority if you come to pick it up. In all cases, please return the order in the original container(s) to our host. Please, if you have any questions regarding the Return & Refund Policy, you can call our customer care service.

e. Customer Support Strategy

Our customer support strategy will involve seeking customer feedback. This will help us provide excellent customer service to our clients. We will work with effective CRM software to be able to achieve this goal. Regularly, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.

Operational Plan

We plan to expand our revenue by 45 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting partnership and retainer deals that will enable the firm to boost our coffee van business sales and support revenue growth.

a. What Happens During a Typical Day at a Coffee Van Business?

The business is open for the day’s work
The coffee vans are washed, cleaned, and ready for business
Supplies such as coffee, sugar, milk, glass cups, and straws are purchased, and ready for use
Customer’s orders are taken and they are served or their orders are delivered to them
Cashier collect’s cash and reconciles account for the day
Administrative duties are carried out
Maintenance of food trucks is carried out
Marketing/website upkeep
The store or warehouse is restocked when required.
The business is closed for the day.

b. Production Process

The production process of coffee drinks involves;

Getting the supplies ready
Mixing coffee drinks.
Filling in cups and serving the coffee drinks.

c. Service Procedure

The service procedure for a coffee van business starts with a customer requesting coffee drinks. Once the request is gotten, it will be processed and the customer will be served or the order delivered to a location as requested.

d. The Supply Chain

Cosmas Collins™ Coffee Van Company will rely on key players in the event and party planning industry to refer business deals to us. So also, we have been able to establish business relationships with wholesale suppliers of coffee, sugar, milk, cups, straws et al.

e. Sources of Income

Cosmas Collins™ Coffee Van Company will make money from the sale of;

Coffee beverages are served in different forms
Snacks
Franchise

Financial Plan

a. Amount Needed to Start your Coffee Van Business?

Cosmas Collins™ Coffee Van Company would need an estimate of AUS$175,000 successfully set up our coffee van business in Australia.

b. What are the Costs Involved?

Business Registration Fees – AUS$417 – $506.
Legal expenses for obtaining licenses and permits – AUS$7,300.
Marketing, Branding, and Promotions – AUS$5,000.
Business Consultant Fee – AUS$2,500.
Insurance – AUS$5,400.
Rent/Lease – AUS$35,000.
Purchase of Vans: AUS$35,000
Operational Cost (salaries of employees, payments of bills et al) – AUS$30,000
Coffee Equipment and Utensils – AUS$24,750
Website: AUS$600
Opening party: AUS$3,000
Miscellaneous: AUS$2,000

c. Do You Need to Build a Facility? If YES, How Much Will it Cost?

Cosmas Collins™ Coffee Van Company. will not build a new facility for our coffee van business since we will be mobile.

d. What are the Ongoing Expenses for Running a Coffee Van Business?

Supplies such as coffee, sugar, milk, cups, straws et al
Utility bills (gas, internet subscriptions, phone bills, signage and software renewal fees et al)
Salaries of employees
Van maintenance
Insurance
Marketing costs

e. What is the Average Salary of your Staff?

Chief Executive Officer (Owner) – AUS$52,000 Per Year
Manager – AUS$38,000 Per Year
Accountant (Cashier) – AUS$37,000 Per Year
Coffee Van Drivers (Attendants)- AUS$34,000 Per Year

f. How Do You Get Funding to Start a Coffee Van Business?

Raising money from personal savings and sale of personal stocks and properties
Raising money from investors and business partners
Sell shares to interested investors
Applying for a loan from your bank/banks
Source for soft loans from your family members and friends.

Financial Projection

a. How Much Should You Charge for your Product/Service?

The price of our coffee drinks, to a large extent, depends on the type of coffee drinks, but on average, we will sell a cup of our coffee for AUS$4.13.

b. Sales Forecast?

First Fiscal Year (FY1): AUS$260,000
Second Fiscal Year (FY2): AUS$350,000
Third Fiscal Year (FY3): AUS$400,000

c. Estimated Profit You Will Make a Year?

First Fiscal Year (FY1) (Profit After Tax): 35%
Second Fiscal Year (FY2) (Profit After Tax): 40%
Third Fiscal Year (FY3) (Profit After Tax): 50%

d. Profit Margin of a Coffee van business

The ideal profit margin we hope to make at Cosmas Collins™ Coffee Van Company will be between 20 and 60 percent, all things being equal. This refers to our profit as a percentage of our total cost.

Growth Plan

a. How do you intend to grow and expand? By opening more retail outlets/offices or selling a franchise?

Cosmas Collins™ Coffee Van Company will grow our coffee van business by first opening other outlets in key cities in Australia within the first five years of establishing the business and then will start selling franchises from the sixth year.

b. Where do you intend to expand to and why?

Cosmas Collins™ Coffee Van Company plans to expand to;

Adelaide SA
Burswood WA
Osborne Park WA
Perth WA
Sydney New South Wales
Melbourne Victoria
Bondi Beach NSW
Brisbane QLD
Surfers Paradise Gold Coast QLD
Southport Gold Coast QLD.

The reason we intend to expand to these locations is that available statistics show that the cities listed above have the highest and most thriving market for coffee in Australia.

Exit Plan

The founder of Cosmas Collins™ Coffee Van Company plans to exit the business via family succession. We have placed structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another without hitches.