If you are new to the entrepreneur lifestyle, odds are you’ve done A LOT of research lately. Not only did you have to research the different kinds of business plans to find out which is best for your business model, but now you find yourself tasked with actually writing a business plan on your own.
If you feel overwhelmed, we completely understand. While there are tools out there to help you write a business plan from scratch, we also understand that few things are more helpful than seeing a fully fleshed out example for yourself. And so, that’s exactly what we’re going to provide you with today.
Below you’ll find a complete Lean Business Plan Sample for the “Hamburger Joe Food Truck” company, including a Table of Contents, Executive Summary, Company Description, Keys to Success, Marketing and Sales, and Exit Plan.
And remember, the closer your business model is to that of a food truck, the more similar your lean business plan will look to this one. But, even still, all businesses of all types should reflect this format when writing their lean business plan – keep reading to see what we mean.
Table of Contents
- Executive Summary
2. Company Description
Management & Structure
3. Keys To Success
4. Market Research
Mobile food industry
5. Hamburger Joe Segmentation and Targeting
6. Market demographics
7. Marketing Channels
8. Cost Structure
9. Cost structure and Profit
10. Revenue Streams
11. Value Proposition
12. Unique Value Proposition
13. Exit Plan
Hamburger Joe is a food truck business that will offer hamburger meals 7 days a week during lunch, dinner, and late-night hours at various locations around Dallas, Texas. We will sign contracts with small and mid-sized businesses for their events, meetings, and softball games along with serving various nightclub venues around town, along with frequenting business centers and business parks. We will operate 3 shifts – Lunch from 11am to 2pm, Dinner from 5pm to 8pm, and Late Night from 11pm to 2am. We will also participate in annual events and festivals like the State Fair of Texas as well as catering services.
We will be offering hamburger meals made from 100% ground beef for lunch, dinner, and late night customers. Wait time from order placement to completion is around 10 minutes on average. Hamburgers can be topped with cheddar cheese, bacon, lettuce, tomato, pickles, red onions, bell pepper slices, and our secret sauce. Other products include French Fries, Potato Chips, Can Sodas and Bottled Water. Meal prices start at $5.99 and go to $9.99. We expect to average 45% profit after expenses.
Our target market includes people aged 18 to 50 years old including blue collar and white-collar workers with low to medium income. We are also targeting families, friends, and late-night crowds.
Furthermore, we will target any large gatherings happening around Dallas that will afford us with the opportunity of selling meals and increasing our regular customer base.
As per industry analysis, there are currently 23,873 active food truck businesses in the US. The mobile food truck industry earns $2B+ in revenue per year in the United States. The growth of the food truck industry is outgrowing the overall commercial restaurant industry, at 5.4% vs. 4.3%.
Hamburger Joe will run different marketing activities and campaigns to attract new customers and retain old customers. Hamburger Joe will encourage its customers to use our mobile food service which is unique from our competitors as we ensure farm fresh food ingredients, reasonable prices, and fast, friendly customer service. Our goal is to provide a fresher, more health-conscious alternative to unhealthy franchised fast food chain options by offering higher quality food and a more unique, memorable experience within a comparable wait time and price range.
Hamburger Joe will also use online social media marketing to actively promote our Mobile food services on Facebook, Twitter, Instagram, and YouTube. This might involve an ongoing campaign promoting the mobile food service concept through online PR, groups, and networks. Customers from all over Dallas, Texas will be encouraged with incentives to promote Hamburger Joe to their networks of friends and work colleagues. We will also advertise on Google to obtain catering contracts.
Hamburger Joe is a food truck business that was started and registered as a Limited Liability Company on January 1st, 2021. Our main products are hamburger meals which include a hamburger, order of fries and your choice of a can soda or bottled water. We will offer hamburger meals during lunch time hours, dinner time hours, and late-night hours at various locations around Dallas, Texas. We will visit multiple sites during lunch time and during dinner time to sell our hamburger meals. We will also be offering contracted catering services for events and companies in the Dallas area.
Management & Structure
Hamburger Joe is managed and operated by a team of highly experienced food industry professionals, “Joe Hoffman and Susan Hoffman”, who will run this food business as a Limited Liability Company and will purchase liability insurance to mitigate any risk.
Owners have the following expertise and skills in mobile food and restaurant industry:
- Creative menu design
- Guest relations
- Purchasing and inventory control
- Containment and reduction
- Staff leadership and training
- Food and kitchen safety
- Small business development
- Highly effective communicators
- Leadership and strong management skills
- Product development
- Business operations
- Budgeting expertise
- Employee relations
Being a mobile food truck, Hamburger Joe will position itself to profit in various places around Dallas, Texas. Locations we intend to frequent and/or be contacted by for contracted catering services include:
- Construction sites
- Business parks
- Night clubs
- Large gatherings
- Sports clubs
- Corporate events
- Private Parties
Keys To Success
The follow local businesses will be crucial in keeping our inventory stocked at a reasonable, reliable price:
- The Jones local family farm has agreed to supply us with farm fresh hamburger patties and potatoes for making french fries. They have guaranteed us a price locked one year contract for their ground meat and potatoes.
- The Farmers market in Downtown Dallas will be our reliable source for all other hamburger toppings, including onion, tomatoes, and cheese. It is crucial for us to use and partner with the Downtown Dallas Farmers Market to stay consistent with our trustworthy, local brand identity.
- We have entered into a contract with the Small Business Solutions Center in Dallas for most other supplies, including: napkins, disposable food trays, straws, and carry-out bags.
Our daily, weekly, and company-wide goals are as follows:
- Sell $1,000 of hamburger meals per day at an average of about 45 meals per shift or 15 meals per hour, operating 3 shifts lunch, dinner, late night with an average sales price of $7.99
- Retain employees to work late night shifts
- Secure at least 5 special event contracts per month to increase brand visibility, client base, and profit
- Innovative social media advertising that highlights our brand as fresh, reasonable priced, and a healthful fast food alternative and unique experience all in one
- Developing strong, ongoing relationships with event organizers, party planners, and business parks
- Delivering outstanding customer service through high-quality food production, fast order delivery time, and attentiveness to customer needs and concerns
- Implement a membership incentive program to encourage previous customers to return on a recurring, regular basis; and/or bring in new customers
- We will use Sam’s Club and other wholesale stores to maintain a stock of sodas and bottled water at a reasonable price
- In-house prep station where we prep and restock as needed before each shift
- Cooking staff who are experienced in delivering high-quality, made-to-order food in minimal time with minimal space
- Customer-facing staff who are experienced in providing outstanding customer service
- Joe Hoffman and Susan Hoffman, who are highly experienced in staff training, business development, and the food industry as a whole
- Our customer database, which Joe Hoffman and Susan Hoffman have already begun to develop with previous contacts from previous food business dealings
- Our food truck, which has been custom built according to Joe Hoffman’s designs, which will maximize productivity and safety
Mobile food industry
- $1.1B Food Trucks in the US Market Size in 2020
- 0.5% Food Trucks in the US Market Size Growth in 2020
- 4.1% Food Trucks in the US Annualized Market Size Growth 2015–2020
Food Truck Industry Statistics
- In 2020 there are 23,873 active food truck businesses in the US. (IBISWorld)
- In 2020, there are 28,916 food truck industry employees in the US. (IBISWorld)
- The mobile food truck industry earns $2B+ in revenue per year in the US. (Food Truck Nation)
- The food truck industry has experienced an overall revenue increase of 300% from 2014 to 2017. (Food Truck Nation)
- The growth of the food truck industry is outgrowing the overall commercial restaurant industry, at 5.4% vs. 4.3%. (Food Truck Operator)
- The legal bottleneck is slowing down the growth of the food truck industry, which is expected to grow only .4% in 2020. (Food Truck Nation)
- Compare that to 2019, where the food truck industry grew by an estimated 20%. (Food Truck Nation)
- In 2019 the overall revenue stream from food trucks grew by $985M. (Forbes)
Statistics on Food Truck Demographics
- The most likely demographic to order from a food truck are people aged 18 to 34, followed by those aged 35 to 44 at 54%. (Statistics Portal)
- 47% of Millenials have eaten from a food truck at some point. (BigThink)
- Over 90% of food truck diners rated their quality of experience as either excellent or good. (Mobile Cuisine)
- Over 80% of food truck users called the dining experience “fun”, “exciting”, “new”, or “different and unique.” (Mobile Cuisine)
- Nearly all food truck diners surveyed said they will continue to frequent food trucks in the next year. (Mobile Cuisine)
- Food truck lovers cited the fast serving times, convenience, high-quality and low price of the food truck service experience as reasons for loving them. (Mobile Cuisine)
- The top 10 states for food trucks (California, Texas, Florida, New York, Oregon, Washington, Pennsylvania, Ohio, Colorado and Virginia) accounted for 57% of the US total.
Hamburger Joe Segmentation and Targeting
There are different strategies for dividing the market into segments including Geographic, Demographics, Psychographics and Behavioral. This segmentation for Hamburger Joe is advantageous because it allows us to engage in the business model design and marketing of Hamburger Joe in a focused manner.
The food truck industry has expanded over the past five years leading up to 2019 and is one of the best-performing segments in the broader food service sector. The industry’s remarkable rise is largely attributable to changing consumer preferences in favor of unique, hamburgers at less expensive prices. Cities such as Dallas and Austin, TX, have sought to differentiate themselves by crafting laws and creating areas specially designed for mobile food trucks. These trends have created a boom for the food truck industry, as consumers have sought to maximize their disposable income by indulging in small conveniences such as affordable food.
Given that our customer base is primarily 18 to 34 year olds, and secondarily 35 to 50 year olds, the following marketing channels are those that we predict will be the most successful:
- Google Ads – we will run CPC ads to attract catering jobs and corporate event contracts
- Facebook Ads – we will run ads to attract catering jobs and corporate event contracts
- Instagram Ads – we will run Instagram story ads to our target demographic who are frequenting areas that match our location schedule
- Email Marketing – we will send out a weekly email to our customer list of our location schedule to attract repeat customers. Example: “Join our email list and get a free soda or free bottle of water” We will also implement referral programs, such as “Bring a friend and receive a 50% off your order.”
|The following are the most cost-effective ways of Advertising Hamburger Joe:|
|Marketing Channel||Budget/ Cost to Advertise|
|Search Engines:||Hamburger Joe will use Google ads. The average cost per click in Google AdWords is between $1 and $2 on the search network. The average CPC on the display network is under $1. The most expensive keywords in AdWords and Bing Ads cost $50 or more per click.|
|Marketing Automation||Hamburger Joe will use marketing automation tools and sales acceleration tools to increase its sales in Texas. Hamburger Joe will sell 20% more per sale by using marketing automation.|
|Social Media Marketing||Facebook (target demographically) http://www.facebook.com/advertising Instagram (target demographically and geographically) http://www.instagram.com/advertising|
|Online communities related to Mobile food services niche||Posting different banners including Hamburger Joe benefits to customers and related communities (Banner ads, profile pages)|
|Hamburger Joe can set a daily or monthly budget. The cheapest option for Hamburger Joe will be the search engines which will cost around 25 cents per click. We will eventually build up to buying keywords or banner ads which will be more costly but more effective.|
|Digital strategies for Hamburger Joe.|
|Objective||Channel||Strategy plan with cost|
|To get 5000 impressions from the target market, specifically blue collar and white-collar workers with low to medium income.||Social Media (Paid)||Facebook advertising costs on average about $0.27 per click. For one thousand impressions (CPM), Facebook advertising costs about $7.19 CPM|
Instagram story advertising costs on average costs $0.75 per click. For one thousand impressions (CPM) Instagram advertising costs about $750.
|Hamburger Joe will be sending promotional flyers, brochures, and other reading materials for our target market emails per week = 10+||Email Marketing||Hamburger Joe will use mail chimp for $199/month and will send email to its different target audience.|
|Remarketing keyword-based ads for Hamburger Joe and specific website-based ad sets||Google adverts||The average cost per click in Google Ads is between $1 and $2 on the search network. The average CPC on the Display Network is under $1.|
The majority of Hamburger Joe’s costs are variable as they are reliant upon how much inventory is sold and how far the truck must travel for any particular shift. Our one reliable cost is employee pay as our hours of operations will always be the same.
Cost Structure and Profit
|Cost||Sales Price||Gross Profit|
|The Little Joe Hamburger Meal||$3.25||$5.99||$1.99|
|The Big Joe Hamburger Meal||$3.50||$7.99||$3.74|
|The Double Joe Hamburger Meal||$4.25||$9.99||$4.99|
|Factor into the cost which covers our fuel and employee cost for our cook/driver.||.75 cents per meal|
|Cook Salary||$10 per hour + tips|
Revenue streams include hamburger meals, meal upgrades, beverages, and event fees (regular cost for customers plus we charge the host an event fee to cater parties and events, and booking fees to reserve our truck at corporate events).
Our goal is to sell $1,000 of hamburger meals per day at an average of about 45 meals per shift or 15 meals per hour, operating 3 shifts lunch, dinner, and late night with an average sales price of $7.99 operating 7 days a week.
Any lack in daily on the go location sales will be made up via catering and corporate events throughout the year helping us reach a hefty goal of $365,000 per year of which 40% to 45% is projected profit.
Unique Value Proposition
We have differentiated ourselves in the market based on providing best taste and quality mobile food service to our target audience with our memorable hamburgers and a memorable experience – the Little Joe hamburger, the Big Joe hamburger, and the Double Joe hamburger. Hamburger Joe offers a refined atmosphere and provides more than just a meal, our welcoming staff greets you and cares for you every moment you spend with us. We use fresh, healthy ingredients, and are chemical free to offer a premium taste to visitors. We also source our ingredients from the popular, local Dallas Farmers Market, which sets us apart from fast food franchises and garners the support of those who support fresh food and small businesses.
Hamburger Joe will take place following actions for the better growth of its food truck services:
- Integrity: We offer an affordable rate for the food services that we offer with complete transparency. Additionally, we use farm fresh local ingredients, which is the healthier choice for the environment, small businessmen, and our customer’s bodies.
- Passion: We don’t believe in the status quo; our goal is to not meet expectations but to exceed them with high-quality food, fast delivery time, and amazing customer service.
- Accountability: We are personally invested in customer satisfaction and as your trusted food truck business we deliver…guaranteed!
- Creativity: Hamburger Joe has an innovative way of delivering its food services – we come to you and we’re there when you want us to be (all the way up until 2am!)
- Professionalism: The company’s clientele is our top priority and we always treat them with the utmost respect and courtesy.
The following are the exit strategies for Hamburger Joe, LLC.
|Acquisition||On a smaller scale, Hamburger Joe can decide to buy a restaurant business so that they can sell their menu through brick and mortar. An acquisition or merger can be an appropriate approach as well.|
|Management buyout||Having management or employees buy our business may be a good idea for Hamburger Joe to save our legacy. Of course, we could consider passing the business on to family, but there’s always the risk that they won’t understand the business or won’t have the determination to make it succeed; and if we are to split the business between family members, there is the possibility of family rivalry.|
|Liquidation||It’s one of the fastest ways to close a Hamburger Joe food truck business and can be a viable option in case family members are not interested in or capable of taking over.|
Overall, we hope our fictitious Hamburger Joe lean business plan showed you everything you’ve been wondering about what it really takes to write a business plan.
As you can see, there’s nothing included in a business plan that you wouldn’t already want to know for yourself as the owner and CEO of this new venture. Therefore, we really do encourage new businessmen and businesswomen to do their best to write up their very own lean business plan!
While hiring out the task is always an option, there’s so much to learn by doing it yourself. But of course, with Business Plan King…you’re never really by yourself.
In addition to this free lean business plan example we’ve provided above, we also have a lean business plan breakdown here. And, more than that, we can even offer you our business plan builder software, so you can learn how to write a lean business plan for yourself, without breaking the bank.
Because let’s face it, the more skills you learn, the more valuable you become as a businessman or businesswoman, so why not get started today?
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