1.0 Executive Summary
The purpose of this business plan is to secure $100,000 in order to establish the operations of a Barbecue fare focused food truck and mobile catering service. Matt’s BBQ LLC (“the Company”) is a Princeton, New Jersey based business founded by Matthew Deutsch. The business intends to launch operations in the fourth quarter of this year. The business will operate on a daily basis through highly populated areas of the city. On the weekends, the Company will attend major events while also providing catering services for personal and corporate events.
The Operations
The business will provide a wide range of premium Barbecue fare that will be freshly prepared daily. The business will rent space in a commissary kitchen as it relates to pre-route food preparation. Popular dishes that will be served include smoked ribs, brisket, chicken dishes, corn on the cob, corn bread, collard greens, and okra. The business will complement its fare with a wide selection of beverages including freshly pressed juices, bottled beverages, and water. The Company will produce contribution margins of 75% on each sale. The average ticket price will be $20.
A major driver of the Company’s growth will come from mobile catering. These engagements will produce $1,500 to $3,000 of revenue while concurrently increasing the brand name visibility of the business. Beyond directly marketing these services to the general public, the business will also maintain ongoing relationships with event planners within Princeton.
The third section of the business plan will further discuss the operations of Matt’s BBQ.
The Financing
At this time, the Company is seeking $100,000 via a private investment. The terms of this financing are to be determined during negotiation. The funds will be principally used for the following:
• Acquisition of the Company’s food truck
• Working capital for expansion and ongoing monthly expenses.
• General furniture, fixtures, and equipment purchases
The next section of this document will further document the usage of foods. Given the highly predictable income generated from the Company’s operations, the business could easily secure additional capital for expansion on an as needed basis. This business plan assumes that no further capital will be acquired during the first five years of operation.
The Future
Over the next five years, the Company will make ongoing and sustained reinvestment into its marketing operations so that the business becomes one of the premier mobile food service businesses specifically for Barbecue fare. The Company will also continually expand the scope of its operations as it relates to providing onsite catering services. This will be accomplished through direct outreach with event planners within the Princeton market as well as through ongoing market efforts. After the fifth year of operation, the business may acquire additional food trucks.
Revenue Forecasts
2.0 The Financing
2.1 Funds Required and Use of Funds
At this time, Management is seeking $100,000 in order to launch the operations of Matt’s BBQ.
2.2 Investor and Management Equity
On a tentative basis, Management intends to sell a 40% interest in the business.
2.3 Exit Strategies
If it is financially prudent to do so, the Company will work with a business broker to divest Matt’s BBQ to a third party. Based on historical sales of food trucks and mobile food service businesses, the Company could be sold for up to three times the previous year’s earnings. This event is not expected to occur within the first five years of operation.
3.0 Operations
The Company will provide a wide range of premium BBQ from its food truck. All food will be prepared at a commissary kitchen that will house the Company’s smoker for ribs and brisket. The Company will operate on a daily basis throughout Princeton with a major focus on targeting students and faculty at Princeton University. The Company’s website and social media pages will be updated daily to indicate the planned stops and route of the truck.
The Company’s primary fare will include:
• Brisket
• Chicken Dishes
• Pulled Pork
• Smoked Ribs
Side dishes will include:
• Coleslaw
• Collard Greens
• Corn Bread
• Mac n’ Cheese
• Potato Salad
During the weekends, the Company will provide mobile catering services. The Company will coordinate these efforts with regional event planners that will have Matt’s BBQ come to events that they are managing. This will be a major profit center for the business.
4.0 Overview of the Organization
4.1 Registered Name
Matt’s BBQ, LLC. The business is registered as a limited liability company in the State of New Jersey.
4.2 Commencement of Operations
The business will commence revenue generating operations the fourth quarter of this year.
4.3 Mission Statement
Matt’s BBQ’s mission is to provide the Princeton public with a wide range of premium Barbecue fare.
4.4 Vision Statement
The Owner expects to build a business that will achieve over $333,000 of revenue by the fifth year of operations.
4.5 Organizational Objectives
• Properly retrofit the truck once the capital has been secured.
• Maintain an expansive online presence with a focus on social media in order to create substantial brand name visibility in Princeton.
• Establish relationships with food reviewers that will promote Matt’s BBQ through positive reviews.
• Provide gainful employment opportunities for the Company’s staff.
• Leverage multiple forms of traditional advertising.
• Establish relationships with event planners that will call on Matt’s BBQ to provide catering services.
• Implement proper protocols to ensure that the business remains profitable in any economic climate.
5.0 Market and Industry Analysis
5.1 External Environment Analysis
This section of the business plan will focus on the current economic climate, the industry, the customer profile, and competition that Matt’s BBQ will face moving forward.
Currently, the economic outlook for the United States is moderate. There has been significant market volatility over the past quarter as a result of changes in global trade policy. Interest rates are continuing to remain steady, and the US Federal Reserve continues to implement appropriate fiscal policy to ensure that the economy continues to grow.
However, challenging economic climates will only have a modest impact on the Company’s ability to generate revenue. Matt’s BBQ is operating in the wealthy and population dense market of Princeton. Furthermore, the business is not bound by any specific location. The mobile nature of the Company’s operations will contribute to the stability of the business.
5.2 Industry Analysis
Within the Untied States, there are approximately 8,300 companies that specialize in providing mobile services (including food trucks) and catering events. Many of these businesses are affiliated with a restaurant or other food service business. Each year, these businesses aggregately generate more than $4.8 billion of revenue while providing jobs to 114,000 people. The CAGR of the industry is expected to remain near 4% over the next five years.
5.3 Customer Profile
The demographics of people that enjoy Barbecue fare span the entirety of the economic spectrum. As Princeton is a diverse market, the business will be able to provide its fare to a broad range of customers. Among parties that will have Matt’s BBQ provide catering operations, the business has developed the following profile that will be used during the course of marketing operations:
• Annual household income exceeding $75,000
• Lives within 20 miles of the Company’s location in Princeton
• Will spend $1,500 to $3,000 on catering services rendered by Matt’s BBQ
5.4 Competition
As this business plan is written as a sample, no formal competitive analysis was conducted. In any full-scale business plan, we would have examined numerous entities that provide Barbecue fare on a mobile basis throughout Princeton as well as caterers that specialize in this type of cuisine. This would include the number of years that they have been in business, their reviews, and other pertinent information about their operations.
6.0 Key Strategic Issues
6.1 Sustainable Operations
The Company will be able to maintain successful business operations because of the following:
• Substantial contribution margins generated from the sale of BBQ and beverages via the Company’s mobile operations.
• Very low operating costs as the business will operate on a mobile basis while using a commissary kitchen food preparation.
• The ability to move locations throughout the entirety of the Princeton market area.
• The ability to serve food at large scale events such as music concerts and sporting events.
• Experienced and motivated Founder/CEO, Matthew Deutsch.
6.2 Basis for Growth
Matt’s BBQ LLC will grow through three main avenues:
• Integration of additional trucks into the Company’s ecosystem.
• Expansion of the Company’s onsite catering services.
• Organic growth through increased marketing efforts (including direct outreach with food reviewers based in Princeton).
7.0 Marketing Plan
7.1 Marketing Objectives
• Leverage multiple social media platforms in order to showcase the daily location and route.
• Develop ongoing relationships with festival planners and events managers that will have the Matt’s BBQ truck on location.
• Establish relationships with event planners that will call on Matt’s BBQ when catering services are needed.
7.2 Revenue Forecasts
7.3 Revenue Assumptions
Year 1
• Matt’s BBQ will establish its operations in the fourth quarter of this year.
• Anticipated first year revenues will reach $201,000.
• Gross profits from sales will reach $150,000.
Year 2
• During Year 2 of operations, the business will generate $235,000 of revenue.
• Gross profits from sales will reach $176,000.
Years 3-5
• By the fifth year of operations, the business will generate $333,000 of revenue.
• Gross profits from sales will reach $250,000.
• Management may acquire and retrofit trucks that can service a greater portion of the Mercer County area.
7.4 Marketing Strategies
Management intends on using a number of marketing strategies that will pique the interest of Princeton residents. As noted earlier, the business will be one of the few mobile trucks that provides Barbecue. This will be a major differentiating factor for the business. The truck will feature an assortment of signage that is visually attracting. This will create substantial brand name awareness as the truck travels throughout Princeton.
The Company will maintain a massive presence among all social media pages. On a real-time basis, the Company will indicate the location of truck on Facebook, X, and Instagram. On these pages, the Company will showcase the unique Barbecue fare offered, images of the truck, and information about the Founder. In time, the business will receive a number of positive reviews from patrons that will further boost brand name recognition.
Prior to the launch of operations, the Company will conduct direct outreach with food reviewers and bloggers within Princeton. This will assist the business in its public relations related operations. It is expected that numerous reviews will be produced within the first six to twelve months of operation.
The business will also conduct direct outreach with event planners that will have Matt’s BBQ use the Company’s onsite catering services. As Barbecue fare is popular in this market, Management sees a substantial opportunity to increase revenue and profits through these types of operations. This type of relationship development will occur throughout the life of the business.
Matt’s BBQ will also maintain an expansive proprietary website. This platform will showcase the cuisine, daily location/route, images of the Company’s fare, and videos of the business attending events and serving food. This platform will be mobile device friendly, and it will be search engine optimized so that when searches for mobile catering services are conducted – the website will appear frequently within the body of the search results.
8.0 Organizational Plan
8.1 Corporate Organization
8.2 Organizational Budget
9.0 Financial Plan
9.1 Underlying Assumptions
The Company has based its proforma financial statements on the following:
• Matt’s BBQ, LLC will achieve an average annual revenue growth rate of 15% per annum (CAGR).
• The business will acquire $100,000, via private investment, in order to establish operations.
9.2 Financial Highlights
• Low operating costs as a function of anticipated revenues.
• Profitability in each year.
• Substantial secondary revenues from onsite catering for private events.
9.3 Sensitivity Analysis
The Company’s revenues are modestly sensitive to the overall conditions of the economy. Matt’s BBQ will generate substantial contribution margins from its sales. Furthermore, as a mobile focused business – the Company is not bound by any fixed which further reduces economic risks. The business is located in the population dense and wealthy market of Princeton, which will further ensure the ongoing profitability of the business.
9.4 Source of Funds
9.5 Financial Proformas
A) Profit and Loss Statement
B) Common Size Income Statement
C) Cash Flow Analysis
D) Balance Sheet
E) Expanded Sensitivity Analysis
9.6 Breakeven Analysis
9.7 Business Ratios
Appendix A – SWOT Analysis
Strengths
• Limited competition among mobile food service businesses that specialize in the sale of Barbecue.
• Low operating costs will ensure that profitability is quickly reached.
• A motivated Founder/CEO, Matthew Deutsch, who will be able to bring the operations of the business to significant profitability.
• The Princeton market area is population dense, which will further contribute to economic stability.
• The Company can attend festivals and events to further boost revenues.
• Matt’s BBQ can access expansion capital on an as needed basis.
Weaknesses
• This is a competitive industry.
• Complex operations regarding the safe handling of food that is served on a mobile basis.
Opportunities
• Continued expansion of the Company’s menu.
• Expansion of onsite catering operations.
• Acquire additional rounds of capital to further fuel the growth of the business.
• Potential development of additional food trucks to service a greater area within Princeton.
Threats
• Inflation could cause the operating costs of the business to increase.
Appendix B – Risk Analysis
Development Risk – Low
The Company has already sourced the truck and has made arrangements to have it properly retrofitted to provide food service. The primary development risk is Management’s ability to secure the capital sought in this document. The secondary development risk is Management’s ability to roll out its marketing campaigns within the Princeton market.
Financing Risk – Moderate
The risks associated with this $100,000 investment are ameliorated by the high margins derived from Barbecue sales as well as the large amount of divestible FF&E and tangible assets. The mobile nature of operations further contributes to economic stability.
Marketing Risk – Low/Moderate
Matt’s BBQ will use the marketing strategies outlined earlier to drive interest in the Company’s Barbecue. The business’ mobile food truck will feature substantial signage, which will be visible to all individuals that are nearby. The business will further temper these risks through aggressive use of social media.
Management Risk – Low
The business’ Owner (Matthew Deutsch) is experienced, educated, and knowledgeable regarding all aspects of the Company’s mobile food service operations and products. The Founder will be able to bring the operations of the business to profitability very quickly.
Valuation Risk – Moderate
The valuation risk is offset by:
• Equity capital will be in moderately liquid business venture.
• Matt’s BBQ’s operations are mobile, which substantially reduces business failure risk.
Exit Risk – Moderate
There is a great demand for established mobile food service businesses, and the Management of the Company feels that the full sale of all Matt’s BBQ’s assets could occur within one year of marketing the Company for sale. In the event of a business sale, the Company will use a qualified business broker to affect all transactions.
The Food Truck Business Planning Process
Writing a food truck business plan is a complex undertaking as unlike a brick-and-mortar restaurant, the mobile-driven issues of these businesses needs to be addressed. Most importantly, when we develop a business plan for a food truck, we focus very heavily on the size of the market and the distance in which the operator will be willing to travel in order to provide service. Beyond operating the business on a day-to-day basis through predefined routes throughout the targeted city, we also thoroughly discuss the attendance of the business at major sporting events, venues, concerts, as well as other large-scale gatherings that allow food trucks to be present. There are numerous ways that a food truck operator can capitalize on their operations. Beyond directly providing food service to the general public, we also focus is very heavily on establishing ongoing relationships with event planners that can call on the food truck operator to provide service at their client’s event locations. In many instances, this is a highly profitable aspect of operating a mobile food service business.
The market analysis further extends to the industry as a whole. This includes discussing ongoing trends regarding the food truck and mobile food service industry. Over the past 20 years, these businesses have become very highly popular among smaller scale food focused entrepreneurs given their relatively low cost as well as their low risk. Unlike a restaurant, a mobile food service business is able to effectively relocate to more population dense areas on an ongoing basis. This is one of the primary reasons that funding sources like mobile food businesses as a result of the far lower operating risks. As of this year, there are currently 48,000 companies that own and operate one or more food truck related enterprises. These businesses accurately produce about $3 billion of revenue. It should be noted that a significant portion of this income is generated from catering focused engagements.
Once the market analysis is completed, we then focus on developing the financial model. Specific for a food truck we include a profit and law statement, cash flow analysis, balance sheet, common size income statement, breakeven analysis, and business ratios page. Depending on the type of capital that is being sought we then include a proforma valuation or DSCR analysis. One of the most important things that we also include in the food truck income statement is the ongoing cost related to the maintenance of the truck. In many cases, we have seen many entrepreneurs underestimate the ongoing cost related to fuel as well as maintaining the trucks operational status. Given that fuel is a major component of these operations, we also include a sensitivity analysis to show different scenarios based on potential increases of energy pricing.
Once this part of the process is complete, we then focus on developing a marketing plan specific for the food truck. Most importantly, these businesses benefit from the highly visually engaging signage that is fixed to the truck. Beyond the mobile nature of the type of business, we also thoroughly discussed the use of multiple online sales platforms in order to create online visibility and brand recognition. For a food truck that is going to operate throughout the course of the week, we discuss the use of GPS linked technologies to the food trucks website so that the business can be quickly found when someone visits the platform. We also thoroughly discuss the use of social media engagement in order to create significant brand of visibility which can lead to catering engagements. The marketing messages are specific for the types of cuisine that are offered on a mobile service basis.
After these primary chapters are completed, we then move onto the operating section of the business. It includes a discussion of the types of cuisine that are provided, signature dishes, as well as the general day-to-day operations of the business. Here we also discussed the use of a commissary kitchen if it is required by the food truck operator.
Now that the a primary chapters of the business plan are completed, we now focus our efforts towards the secondary chapters including the risk analysis as well as the SWOT analysis. These additional chapters provide a greater degree of insight into the food trucks operations.
Finally, we develop the food truck executive summary. In all business plans and pitch decks that we create, we always leave this aspect of the work to the very end. This is primarily due to the fact that it serves as a deep overview of the operations, including providing a snapshot of the anticipated financial results during the first five years of operation. This section of business plan also discusses the methods in which the food truck operator intends to grow their business over the five-year period.