Are you writing a food truck business plan? If YES, here is a sample food truck financial projection, sales cost, profit & loss statement. There is no hard and fast rule when it comes to determining how much it will cost an individual to start a business. The size and capacity of the business you intend starting is what will determine the size of your budget.
We have decided to start On The Track® Mobile Food Company with just one truck with the hope of growing it to fleets of truck few years down the line. So, our budget is based on starting small but with class. As such, here is a picture of the areas we will spend our start – up capital;
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Generating Funding / Startup Capital for Our Mobile Food Company
We don’t have the intention of bringing business partners outside the family to invest in the business, at least for the first 5 years of running the business that is why we have restricted raising our startup capital to;
- Generate part of the start – up capital from my savings
- Source for soft loans from family members and friends
- Obtaining loan from the bank
N.B: We have been able to generate well over 60 percent of the money we would need to kick start the business and most of the gadgets that we purchased are based on installment payment for a period of time. As regards our brand new retrofitted food truck we have the arrangement to spread the payment for a period of 48 months.
Our Startup Budget and Expenditure
- The Fee for Registering the Business: $725.
- The budget for insurance, permits and license: $10,000
- The Amount needed to rent an office facility with store and parking for 6 months in Inglewood, Los Angeles: $50,000.
- The Cost for the purchase of a brand new retrofitted food truck with all the required gadget (oven, rotisserie, coffee pots, grill, hot – dog roller and refrigerator): $120,000.
- The Cost for kitchen utensils, and pots et al: $15,000
- The Cost for supply of raw foods, ingredients, drinks and beverages for a month: $5,000
- The cost for food packaging: $2,000
- The cost for a food cart: $3,000
- The Cost of Launching a Website: $600
- The cost for parking and maintenance of the truck for one month: $300
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al): $5,000
TOTAL EXPENSES: $211,625
The total cost we are likely going to spend from start to when the business is fully operational is estimated to be at about $250,000 (please note that the payment for the brand new retrofitted food truck is spread over a period of 48 months).
Financial Plan – Profit & Loss Statement
Businesses that do pretty well are businesses that have more than one source where they generate revenue. It is risky to run a business where you can only generate income from just one source. The truth is that if anything goes wrong with the source of income, the business might likely collapse.
This is why we worked hard to provide you with a sample food truck marketing plan template to help you through the process. The big picture we have for On The Go® Mobile Food Company is to generate income from the following sources;
Sources of Income
- Sales of launch (meals)
- Sales of Snacks
- Offering training services
- Offering consultancy services in line with our business goal
- Sales of drinks
- Sales of our franchise
INCOME for First Year:
Sales of lunch: Per person will purchase a plate of food at the rate of $20
- 30,000 persons will cost $600,000
Sales of snacks: Per person will purchase a pack of snack at the rate of $5
- 50,000 persons will cost $250,000
Sales of drinks: Per person will purchase a bottle of drink (coke) at the rate of $1.5
- 80,000 persons will cost $120,000
TOTAL INCOME: $970,000
ON-GOING OPERATIONAL EXPENSES for First Year:
- The Amount needed to rent an office facility with store and parking for the remaining 6 months in Inglewood, Los Angeles: $50,000.
- Operational cost for the year (salaries of employees, payments of bills et al) – $160,000
- Food / Beverage Restock (flours, sugar, margarine, packaging materials, wheat, drinks, food items,et al) $80,000.
- Office supplies (stationeries, Paper Products, Plates / Napkins, et al) – $20,000
- Credit card processing fees – $1,000
- Other miscellaneous expenses – $24,000
It is important to state that our sales forecast is based on the data gathered during our feasibility studies and also assumptions. This is for sales projections based on what we saw.
- 1000 lunches per day (on average), 12 months per year
- $20 per person on the average
- 1500 snacks per day, 12 months per year
- $5 per person on the average
Sales of Drinks and Water et al:
- On the average over 80% of people who purchase lunch (meal) and snacks would normally consume drinks as well.
- $1.5 for a bottle of coke
- This equates to 2000 drinks in a day when you multiply 2000 by 1.5 we will make an estimate of $3000 daily from the sale of drinks alone.
N.B: The possibility of the figure to increase or even reduce cannot be ruled out. Since most of the figures quoted above are partly based on the report from our market survey and feasibility studies and partly on assumptions.
Frequently Asked Questions
What Is The Average Revenue For A Food Truck?
The average food truck revenue ranges between $250,000 and $500,000 annually.
2. What Are Five Reasons That Food Trucks Fail?
Here are five major reasons food trucks fail:
- Not knowing themselves
- Not knowing their audience
- Cutting corners on equipment
- Not marketing their business
- Choosing quality over quantity
What Are The Benefits Of Owning A Food Truck?
- You get to be your own boss
- You’ll work in a small space
- You can create your own menu
- There’s always ample opportunities
- It’s less risky than opening a brick-and mortar restaurant
How Do You Prepare A Restaurant Income Statement?
To prepare an income statement, you will need to generate a trial balance report, calculate your revenue, determine the cost of goods sold, calculate the gross margin, include operating expenses, calculate your income, include income taxes, calculate net income and lastly finalize your income statement with business.
How Much Do Food Trucks Make A Day?
A food truck vendor would expect to make approximately $1000-2000 net profit per day at a fair.
How Can You Get A Loan To Start A Food Truck?
- SBA microloans
- Equipment financing
- Business credit cards
- Crowdfunding campaigns
- Business lines of credit
What Equipment Do You Need In A Food Truck?
The listed below are some equipment needed in a food truck business;
- Food prep surfaces
- Freezers and refrigerators; Ice maker
- Sinks; Compartment sinks and disposal sinks
- Safety equipment; Gloves, aprons and first aid kit
- Food prep equipment; Knives, cutting boards, pots and pans
- Range; Grills and ventilation, gas range, flat range and induction
How Many Items Should A Food Truck Menu Have?
A good number of items most food trucks can handle is about five to twelve different menu items at any given time. The fewer the better to keep your quality top notch.
How Much Money Do Food Truck Owners Typically Make?
It costs between $28,000 and $114,000 to set up a food truck business and keep it running, with the average food truck earning around $300,000 per year.
What Is The Average Startup Cost For A Food Truck?
Food truck owner in smaller, more mid-sized cities make approximately $5,000 to $16,000 a month. According to the website Profitable Venture, any popular food truck in major metro cities can possibly make up to $20,000 to $50,000 sales per month.
How Do You Start A Food Truck Park?
- Register your business
- Write your business plan
- Conduct your feasibility studies
- Draw up business agreement document
- Acquire the needed license and permits
- Lease and construct the food truck park
- Market and advertise your food truck park
How Many Customers Do Food Trucks Get Per Day?
By calculation, if it takes four minutes to prepare a meal for a customer during a rush, you’ll be able to serve up to 15 customers per hour, 45 customers per three-hour shift, or 90 customers a day if you’re open for two three-hour shifts.
13. Is Pl Same As Income Statement?
Yes! A P and L statement is often referred to as an income statement. It is a financial statement that summarizes the revenues, costs, and expenses incurred during a specific period of time, usually a fiscal year or quarter.
14. How Much Should I Charge Food Trucks To Vend At My Food Park?
Food trucks will more or less pay around $500 to $1000 to park in an event.
15. What Is A Good Profit Margin For A Food Truck?
While a high-end catering business can pull in profits of 15% or more, the overall average profit margin for a food truck is about 7 to 8%.
16. How Do You Create A Restaurant Profit And Loss Account?
Here are some guidelines on how to create a restaurant profit and loss account;
- Choose a time-frame
- Record sales for the selected time-frame
- Enter cost of goods sold
- Operating expenses
- Occupancy costs
17. How Do You Read A Restaurant Pl Statement?
Simply subtract total (COGS) from total for that week, to get gross profit. Add all numbers in Operating Costs from each week to get this number. Then add labor cost and total Operating Cost for that week as well; subtract that number from the gross profit for that week to get net profit/loss.
18. Which Is Better Food Truck Or Restaurant?
To run a food truck business is preferable. Even a small-scale restaurant requires a lot more capital when compared to food trucks. So if you have less capital and a limited budget, you can go with food trucks. Not only the initial investment, but food trucks also require a less operational cost.
19. What Are The Disadvantages Of Running A Food Truck?
Here are the three major issues in running a food truck business;
- Local zoning laws
- Be aware of the vehicle-related costs
- Competition is keen in the food truck industry
20. How Much Does It Cost To Operate A Food Truck In New York?
Starting a food truck in New York City ranges from $100,000 to $150,000, with the biggest variable being the truck itself. Though trucks can vary from $50,000 to $200,000 in NYC.
21. Which Is Profitable, A Food Truck Or Owning A Franchise?
Over the years, a food truck business has barely seen success compared to the proven, tried and tested franchising. So practically, owning franchise is profitable and preferable.
22. What Type Of Business Is More Profitable, A Food Truck Or A Shop?
Food truck is more profitable. Food trucks tend to have lower startup and overhead costs than sit-down shops.
23. How Much Of An Investment Is Required To Start A Food Truck Business In The USA?
To start a food truck business in the US, you can estimate to invest anywhere from $75,000 to $150,000 on a new, made-to-order truck.
24. Is A Food Truck A Good Investment?
25. How Much Will It Cost To Hire Legal And Accounting Help To Get Your Business Registered?
Typically, accountants nationwide cost between $30 and $300 per hour. Accounting costs are determined by the size of your business and your accounting needs.
26. Why Do Food Trucks Fail?
The major reasons why food trucks fail are due to improper inventory management and underestimated food costs. Without planning the future may not prove very bright for a business. Some food truck owners devise a way to diversify and gain extra profit by providing services such as catering.
27. How Often Should You Update Your Restaurant Pl Statement?
It is usually best to review your P&L at least every four weeks. However, if you’re using bar management software like BinWise Pro, it’s available instantly for your review whenever you want. It is the most important document your accountant or restaurant accounting software generates.
28. How Much, Per Month, Can You Make By Having A Food Truck In Vancouver Or Toronto?
The average food truck salary in Toronto is about $35,100 per year or $18 per hour. Entry-level positions start at $31,200 per year, while most experienced workers make up to $45,630 per year.
29. Is Food Truck Business Risky?
Yes, for some reasons. Food-related illnesses such as food poisoning, auto accidents, and slips and falls are just some of the risks that are apparent when running a food truck business.
30. How Much Net Profit Can A Successful Food Truck Make Per Year In The Us?
According to IBISWorld, profit for a food truck in US may be around 7.7% of your entire revenue, after accounting for overhead costs and wages. That means a food truck making $400,000 in sales each year would possibly make over $30,000 in profit annually.
31. What Is The Most Profitable Food Truck?
The following are the most profitable food truck items;
- Mac N cheese
- Loaded fries
- Grilled cheese
- Stone baked pizza
- Indian Street food
32. How Much Will It Cost To Get Your Truck Wrapped So It Properly Explains Your Brand?
Multiple factors determine the cost of wrapping a truck, but most trucks cost between $1,500 and $5,000 to wrap. Some of these determining factors include the wrap’s size, the complexity of the design, and the vehicle type as well.
33. What Are The Most Popular Food Truck Foods?
- Lobster Rolls
- Ethiopian Food
- Grilled Cheese
34. How Can You Start A Food Truck With No Money?
- Hire a van
- Rent equipment
- Buy second hand
- Join mobile catering Facebook groups
- Start with a minimum viable product (MVP)
- Get a zero per cent interest credit card
- Start with a food stall instead of a food truck
- Get some food waste from local businesses and supermarkets