Are you about writing a food truck business plan? If YES, here is a sample SWOT analysis for a food truck company to help you form a competitive strategy.
Food Truck Business Plan – Economic Analysis
The annual food truck revenue in the United States is about $1,200,000,000 and the Industry revenue increase by 12.4% over the past five years. The total number of food trucks in U.S. is put at 4,130. Food truck Industry revenue increased over the past five years at the rate of 12.4 %.
The average revenue generated per food truck in the United States is about $290,556 and the average spending per order at a food truck is $12.40. The average amount required to own a food truck is about $85,000.
In the United States, Canada, Australia and even Europe, the percent of sales generated by food trucks based on market segments are; Street locations or street corners accounts for 55%, construction work sites and industrial sites accounts for 15%, shopping malls accounts for 12% and other locations, venues and event centers accounts for 18%.
Food truck business is subject to the same range of economic concerns as other food related businesses such as restaurants and fast food eateries et al. For example, despite the fact that food trucks are mobile restaurants, they generally require a fixed address to accept delivery of supplies like normal restaurants.
In some cases or cities, they are required to prepare their food in a commercial kitchen that can be inspected and not on the truck. These factors contributes to increase in the running cost of the business.
In addition, there are a number of permits that is required to run a food truck business, and of course there are also public health codes to observe. Other cost that should be considered during planning and budgeting are overhead cost; labor cost, supply of raw ingredients and foods, and fuel and maintenance costs.
It is important to try as much as possible to cut down on overhead costs when making plans to start a food truck business and also to operate in cities where you can be allowed to cook and prepare your food inside your truck. Well for now it is only in Chicago that food trucks aren’t allowed to cook their food inside their truck.
A Sample Food Truck Business Plan SWOT Analysis
As a team together with our paid business consultants, we have been able to look both inward and outward, as well as critically assess ourselves and business ideas to know if we are truly ready to launch our mobile food truck business in Los Angeles.
No doubt, we have a lot of factors working in our favor but at the same time we have some factors that we must contend with if we intend becoming the number one brand when it comes to mobile food truck business in Los Angeles and the whole of North America.
Below is a summary of the SWOT analysis that was conducted on behalf of On the Track® Mobile Food Company;
Aside from the trainings that have been acquired, as well as the hands on experience attained over the years prior to starting On The Track ® Mobile Food Company, our strength lies in our financial capacity and determination to succeed in the business at all cost. We have been able to acquire a brand new mobile food preparation vehicle (MFPV).
It has the capacity to meet the needs of well over 500 customers per day. Our strength also lies in the fact that we have relationship with brand experts who are working almost for free for us. With that, will be able to build our brand to a level where we can start selling franchises and offer trainings and consultancy services on mobile food truck business.
The fact that we are planning to roll out our mobile truck business alongside other similar business offerings like training, consultancy services and sale of franchise could distract us from concentrating and channeling our energy in one direction. We are quite aware of that and we are working towards blocking any area that will sap our energy and make us under performed in our core business area – sale of foods and drinks from a mobile truck.
The opportunities that we stand to leverage on are much. The fact that we are not tied down to a location is indeed a good opportunity for us to grow our business to the level we want to grow it to. For example; we can afford to trade foods, snacks and drinks in more than two locations within a day. It is all about knowing when to arrive and leave for another location.
There is hardly any business venture that doesn’t face its own threat. Regarding mobile food truck business, one of the threat that we may likely face is; vehicular traffic in key cities. Traffic can delay one and as a result of that one may get to the location where one intend selling the foods and drinks late- this could be when the lunch break is over (basically for organized events). Yet another threat is; the government policies, which could also pose a great threat to the mobile food truck industry.