Coffee Truck Business Plan [Sample Template]

A coffee truck business is a mobile venture that operates out of a specially designed vehicle, often a truck or a van, to serve and sell coffee and related beverages.

It is essentially a mobile coffee shop that brings freshly brewed coffee and other drinks directly to customers at various locations.

The primary advantage of a coffee truck business is its mobility. The truck can move from one location to another, allowing the owners to target different customer bases and attend events, festivals, office parks, construction sites, or busy street corners, depending on the target market.

Steps on How to Write a Coffee Truck Business Plan

1. Executive Summary

Stefan Bruce® Coffee Truck, Inc. is a mobile coffee business based in New York City, New York, poised to revolutionize the coffee experience for on-the-go customers.

We aim to establish a prominent presence in the thriving and diverse coffee market of the city by providing premium quality coffee and personalized service directly to customers at various strategic locations. Stefan Bruce® Coffee Truck, Inc. is a mobile coffee truck business founded by Stefan Bruce, a seasoned entrepreneur with a passion for specialty coffee and customer service.

Our coffee truck is uniquely designed to embody modern aesthetics and functionality, creating an inviting and cozy ambiance for customers seeking a delightful coffee experience.

2. Company Profile

a. Our Products and Services

Our menu features a wide array of handcrafted coffee beverages, including artisanal espressos, velvety lattes, rich cappuccinos, flavorful mochas, and refreshing iced coffee options. We pride ourselves on using only the finest ethically sourced coffee beans, ensuring every cup of Stefan Bruce® Coffee Truck, Inc. coffee delivers an unparalleled taste and aroma.

Additionally, we offer dairy alternatives and a selection of premium teas and hot chocolates to cater to varying preferences and dietary needs, making our coffee truck a welcoming destination for all.

b. Nature of the Business

Our coffee truck will operate with a business-to-consumer business model.

c. The Industry

Stefan Bruce® Coffee Truck, Inc. will operate in the food truck industry.

d. Mission Statement

At Stefan Bruce® Coffee Truck, Inc., our mission is to elevate the coffee experience for every customer we serve. We are committed to delivering premium quality, ethically sourced coffee beverages that ignite the senses and create moments of joy and connection.

With a focus on excellence, innovation, and personalized service, we aim to be the preferred choice for coffee enthusiasts and a symbol of warmth and hospitality in the heart of New York City.

e. Vision Statement

Our vision at Stefan Bruce® Coffee Truck, Inc. is to establish a ubiquitous presence in the New York City coffee culture, redefining the way people experience and enjoy coffee on the go. We aspire to be more than just a mobile coffee truck but a cherished part of the communities we serve.

f. Our Tagline (Slogan)

Stefan Bruce® Coffee Truck, Inc. – “Fuel Your Day, Elevate Your Senses!”

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Stefan Bruce® Coffee Truck, Inc. will be formed as a Limited Liability Company (LLC).

h. Our Organizational Structure

• Chief Executive Officer (Owner)
• Manager
• Accountant (Cashier)
• Coffee Vendors (Baristas)
• Truck Driver

i. Ownership/Shareholder Structure and Board Members

• Stefan Bruce (Owner and Chairman/Chief Executive Officer) 52 Percent Shares
• Ally Mayweather (Board Member) 18 Percent Shares
• Humbard Brown (Board Member) 10 Percent Shares
• Emma Hulk (Board Member) 10 Percent Shares
• Emily Newton (Board Member and Secretary) 10 Percent Shares.

3. SWOT Analysis

a. Strength

• Stefan Bruce® Coffee Truck offers handcrafted beverages made from the finest, ethically sourced coffee beans, providing a unique and memorable taste to customers.
• The Stefan Bruce® brand embodies sophistication, modernity, and approachability, setting it apart from competitors and attracting a diverse customer base.
• Being a mobile coffee truck allows the business to explore various strategic locations, respond to customer demands swiftly, and participate in events, festivals, and high-traffic areas.
• The highly trained baristas prioritize customer engagement, building strong relationships with patrons, and fostering a loyal customer base.
• Operating a coffee truck incurs lower initial investment and ongoing costs compared to brick-and-mortar coffee shops, enabling the business to achieve profitability more quickly.

b. Weakness

• Inclement weather conditions may impact foot traffic and sales, especially during harsh winters or rainy days.
• The compact nature of the coffee truck may limit the range of menu items that can be offered compared to larger coffee shops.
• New York City has a highly competitive coffee market, with numerous established coffee shops and other mobile vendors vying for customers’ attention.

c. Opportunities

• The increasing interest in specialty coffee and coffee culture presents an opportunity for Stefan Bruce® Coffee Truck to tap into a receptive and evolving customer base.
• Introducing seasonal drinks and limited-time offers can attract more customers and create a sense of urgency to visit the coffee truck.
• Partnering with local businesses, events, and community organizations can expand the coffee truck’s reach and increase brand visibility.
• Leveraging digital platforms and social media can enhance marketing efforts, engage with customers, and promote special offers and events.

i. How Big is the Industry?

The coffee truck sector is a subset of the food and beverage industry, which includes restaurants, cafes, food trucks, and other food service establishments. While there is no precise estimate of the size of the coffee truck industry, the food and beverage industry as a whole is a large contributor to the worldwide economy.

ii. Is the Industry Growing or Declining?

In general, the mobile food truck industry, including coffee trucks, has been steadily growing in recent years. However, as with any industry, various factors can influence growth or decline. Economic conditions, changes in consumer preferences, competition, and regulatory environments can impact the performance of coffee truck businesses.

iii. What are the Future Trends in the Industry?

Consumers are becoming more conscious of sustainability and ethical practices. Coffee truck businesses may prioritize sourcing coffee beans from fair trade and environmentally responsible suppliers, showcasing their commitment to social and environmental responsibility.

Consumers are increasingly health-conscious, leading to a demand for healthier beverage choices. Coffee trucks may offer a variety of plant-based milk alternatives and incorporate superfoods or functional ingredients into their coffee drinks.

Utilizing social media platforms and digital marketing will continue to be crucial for coffee trucks to reach their target audience, promote special offers, and engage with customers online. Coffee trucks may invest in eye-catching and innovative design elements to create visually appealing and Instagram-worthy spaces that attract attention and build brand recognition.

iv. Are There Existing Niches in the Industry?

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

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

Stefan Bruce® Coffee Truck, Inc. has plans to sell franchises in the near future and we will target major cities with thriving markets in the United States of America.

d. Threats

• The competitive nature of the coffee industry in New York City may make it challenging to gain market share and establish a unique positioning.
• Shifts in consumer preferences towards healthier beverages or different coffee styles could impact demand for certain menu items.
• Economic downturns or changes in consumer spending habits may affect overall coffee sales and customer frequency.
• Complying with food safety and health regulations can pose challenges, and non-compliance may lead to penalties or business interruptions.

i. Who are the Major Competitors?

• Stumptown Coffee Roasters
• Blue Bottle Coffee
• La Colombe Coffee Roasters
• Intelligentsia Coffee
• Verve Coffee Roasters
• Philz Coffee
• Cuvee Coffee
• Caffe Vita
• Blacksmith Coffee
• Grumpy’s Coffee
• Joe Coffee Company
• Four Barrel Coffee
• Boxcar Coffee Roasters
• Panther Coffee
• 9th Street Coffee and Tea
• Spella Caffe
• Crema Coffee Roasters
• Kean Coffee
• Peregrine Espresso
• Houndstooth Coffee.

ii. Is There a Franchise for the Coffee Truck Business?

Yes, there are franchise opportunities for coffee truck business and some of them are;

• Aroma Joe’s Coffee
• Coffee Beanery
• Daily Jam Coffee House & Eatery
• Coffee-Bike
• Scooter’s Coffee
• Ziggi’s Coffee
• Maui Wowi Hawaiian Coffees & Smoothies
• Bigfoot Coffee
• Jo to Go Coffee
• Java Dave’s Coffee.

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

Yes, there are policies, regulations, and zoning laws that can affect coffee truck businesses in the United States of America.

Coffee trucks that serve food and beverages must comply with health and safety regulations set by local health departments. This may include regular inspections of the food preparation area, proper storage of ingredients, and handling of waste.

In many states, individuals handling food and beverages are required to obtain food-handling certifications to ensure safe practices. Many cities and municipalities require coffee truck operators to obtain mobile food vendor permits, which outline specific regulations for operating a food truck.

There may be restrictions on where a coffee truck can park and operate, such as not blocking pedestrian walkways, fire hydrants, or bus stops. Some locations have noise restrictions, and there may be limitations on the use of generators during certain hours.

4. Marketing Plan

a. Who is Your Target Audience?

i. Age Range: Young adults and working professionals between the ages of 18 and 40.

ii. Level of Education

The target audience may include individuals with various levels of education, but a significant portion may be college-educated or pursuing higher education.

iii. Income Level

The target audience could include individuals with moderate to higher income levels who are willing to pay for premium-quality coffee and appreciate artisanal beverages.

iv. Ethnicity

The coffee truck aims to attract a diverse customer base, so the target audience may encompass various ethnicities and backgrounds.

v. Language

The primary language of communication and menu descriptions would likely be English, given the context of operating in New York City.

vi. Geographical Location

The coffee truck would primarily target high-traffic areas within New York City, such as business districts, college campuses, popular tourist spots, and areas with a mix of local residents and visitors.

vii. Lifestyle

The coffee truck aims to cater to urban dwellers with busy and on-the-go lifestyles. The target audience may include students, office workers, tourists, and those seeking a convenient and high-quality coffee experience during their daily routines.

b. Advertising and Promotion Strategies

• Deliberately Brand All Our Trucks.
• Tap Into Text Marketing.
• Make Use of Billboards.
• 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 event planning industry and the food services industry.

i. Traditional Marketing Strategies

• Marketing through Direct Mail.
• Print Media Marketing – Newspapers & Magazines.
• Broadcast Marketing -Television & Radio Channels.
• OOH Marketing – Public Transit 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 and potential target market.
• Gear up our profiles with a diverse content strategy.
• Use brand advocates.
• Create profiles on relevant social media channels.
• Run cross-channel campaigns.

c. Pricing Strategy

When working out our pricing strategy, Stefan Bruce® Coffee Truck, Inc. will make sure it covers profits, insurance, premium, license, and economy or value and full package.

• Penetration Pricing
• Cost-Based Pricing
• Value-Based Pricing
• Competition-Based Pricing.

5. Sales and Distribution Plan

a. Sales Channels

The sales channel strategy for Stefan Bruce® Coffee Truck, Inc. would focus on reaching and engaging the target audience effectively while maximizing sales opportunities.

Identifying high-traffic and strategically important locations in New York City where the coffee truck can be set up. This includes busy street corners, business districts, college campuses, popular events, festivals, and other areas with significant footfall.

Participating in local events and festivals can provide a platform to showcase the coffee truck, attract new customers, and create brand awareness.

b. Inventory Strategy

The fact that we will need ingredients (coffee beans, sugar, milk, dairy products, syrups, cups, and other supplies), means that Stefan Bruce® Coffee Truck, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining and processing items in our warehouse.

We will prioritize freshness, quality, and timely availability while minimizing waste and optimizing costs. Stefan Bruce® Coffee Truck, Inc. will make sure we work with “Just-in-time (JIT) inventory” – (JIT involves holding as little stock as possible, negating the costs and risks involved with keeping a large amount of stock on hand.)

c. Payment Options for Customers

Here are the payment options that Stefan Bruce® Coffee Truck, Inc. will make available to her clients:

• Credit or Debit Card
• Cash
• Electronic Payment Systems such as PayPal or Venmo
• Checks
• Bank Transfers.

d. Return Policy, Incentives, and Guarantees

Return Policy:

• If a customer is dissatisfied with their coffee order for any reason, the coffee truck will strive to resolve the issue promptly to ensure customer satisfaction.
• In the event of a valid complaint, customers may be offered a refund or a replacement of their coffee beverage at no additional cost.

Incentives:

• Introduce a loyalty program that rewards customers with points or stamps for each purchase, eventually leading to free or discounted coffee after reaching a certain threshold.
• Encourage customers to refer friends and family to the coffee truck by offering incentives or discounts for successful referrals.
• Regularly introduce limited-time offers, seasonal drinks, or discounts to attract customers and create excitement around the brand.

Guarantees:

• Assure customers of the coffee truck’s commitment to using premium-quality coffee beans and ingredients to deliver consistently excellent coffee beverages.
• Guarantee that all coffee beverages are prepared and served fresh to ensure optimal taste and aroma.

e. Customer Support Strategy

We will focus on exceptional customer service and engagement to build a loyal customer base and encourage repeat visits. We will concentrate on enhancing our Customer Service Team and leveraging Multi-Channel Servicing on a regular basis as part of our customer support strategy.

6. Operational Plan

Stefan Bruce® Coffee Truck, Inc. will focus on creating a successful coffee truck operation through a thoughtful approach, a focused and attractive menu, and a commitment to high-quality beverages. The business will establish reliable supplier relationships to ensure a steady inventory, while also adhering to health and safety regulations for a safe environment.

A flexible schedule and strategic locations will maximize customer reach, supported by excellent customer service and proactive marketing strategies.

The coffee truck may also consider a mobile app or online ordering system for added convenience. Environmental responsibility and waste management will be a priority, along with fostering a positive work environment and financial management to ensure profitability.

Contingency plans will be in place for unexpected events, and legal compliance will be maintained through permits and licenses. Community engagement will further strengthen the coffee truck’s presence and social responsibility.

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

During a typical day at Stefan Bruce® Coffee Truck, Inc., preparations begin with setting up the truck, checking inventory, and preparing equipment. The coffee truck opens in the morning, offering specialty beverages and friendly customer service.

The baristas maintain consistent quality while promotions and marketing attract customers through social media and loyalty programs. The truck remains flexible with its schedule and locations to cater to customer demand and events. Customers can use a mobile app or online platform for streamlined ordering.

The coffee truck prioritizes hygiene and safety, following eco-friendly waste management practices. Actively seeking customer feedback helps improve services.

Well-trained staff efficiently handle operations, and sound financial management ensures profitability. Contingency plans are in place for unexpected events. At the end of the day, the coffee truck closes, restocks, and prepares for the next day of business.

b. Production Process

There is no production process for the coffee truck business.

c. Service Procedure

The service procedure for a coffee truck business typically involves the following steps:

• Setting up the truck: The truck is set up in a high-traffic area with all necessary equipment and supplies.
• Greeting customers: The vendor greets customers and takes their orders, providing a menu if necessary.
• Preparing the coffee: The vendor prepares the coffee according to the customer’s order.
• Completing the order: The vendor packages the coffee and any side items (such as chips or snacks).
• Processing payment: The vendor processes the customer’s payment, either by cash or card.
• Maintaining cleanliness: Throughout the service procedure, the vendor maintains a clean and organized coffee truck, disposing of trash and wiping down surfaces as needed.
• Closing down: At the end of the day, the vendor cleans and sanitizes the coffee truck, restocks supplies, and secures the equipment for the next day’s service.

d. The Supply Chain

Stefan Bruce® Coffee Truck, Inc. sources high-quality coffee beans, dairy products, syrups, and other essential ingredients from reliable suppliers. These suppliers could include local coffee roasters, distributors, and food wholesalers.

The company sources coffee cups, lids, and packaging materials from vendors to ensure that the beverages are served safely and in an eco-friendly manner. Building strong relationships with suppliers is essential to ensure a steady and reliable supply of quality ingredients and materials.

e. Sources of Income

Our primary source of income comes from selling a variety of coffee beverages, including specialty coffee drinks, espressos, lattes, cappuccinos, and other coffee-based beverages. In addition to coffee, the coffee truck may offer a selection of teas, including herbal teas, black teas, green teas, and specialty tea blends.

Extra options such as flavored syrups, whipped cream, extra shots of espresso, and alternative milk choices can be offered as add-ons, providing an opportunity for additional revenue. The coffee truck offers snacks, pastries, or light breakfast items. The sale of these items also contributes to the income.

7. Financial Plan

a. Amount Needed to Start your Coffee Truck Business?

To successfully set up our coffee truck in the United States of America, Stefan Bruce® Coffee Truck, Inc. would need an estimated $120,000 in funding. Please keep in mind that this figure covers our employees’ salaries for the first month of operation.

b. What is the Cost Involved?

• Business Registration Fees – $750.
• Legal expenses for obtaining licenses and permits: $1,300.
• Business Consultant Fee: $2,500.
• Business registration fee: $750
• Coffee Truck: $70,000
• Equipment: $3,000-$10,000
• Initial inventory (cones, toppings, napkins, and other supplies): $3,000-$10,000
• Permits and licenses: $500-$2,000
• Insurance: $500-$1,000
• Marketing and branding (logo design, website, social media): $500-$2,000
• Website: $600
• Opening party: $3,000
• Miscellaneous: $2,000

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

Stefan Bruce® Coffee Truck, Inc. will not build a new facility for our coffee truck business because by nature the coffee truck business is a mobile business.

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

• Expenses associated with purchasing coffee beans, milk, syrups, tea leaves, cups, lids, stirrers, and other ingredients used to prepare beverages.)
• Labor Costs
• Fuel costs for the coffee truck and regular maintenance, such as oil changes and vehicle repairs
• Rent or Parking Fees
• Inventory and Supplies such as packaging materials, cleaning products, and equipment maintenance materials.
• Insurance, Marketing, and Advertising
• Utilities such as electricity and water.
• Waste Disposal
• Credit Card Processing Fees.
• Office and Administrative Costs such as bookkeeping, software subscriptions, and office supplies).

e. What is the Average Salary of your Staff?

• Chief Executive Officer – $55,000 Per Year
• Manager – $45,000 Per Year
• Accountant – $35,630,000 Per Year
• Truck Driver – $27,100 Per Year
• Coffee Vendors (Barista) – $26,000 Per Year

f. How Do You Get Funding to Start a Coffee Truck 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
• Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
• Source for soft loans from your family members and friends.

8. Financial Projection

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

Drip Coffee: A basic cup of drip coffee, also known as black coffee or brewed coffee, can cost around $2 to $3 for a small size (8-12 ounces) and may go up to $4 or more for larger sizes (16-20 ounces).

Espresso-based Drinks: Prices generally start at around $3 to $4 for small sizes and can go up to $5 or more for larger sizes or specialty variations.

Cold Brew and Iced Coffee: Prices can be like regular drip coffee, ranging from $2 to $4, depending on the size and the coffee shop.

Specialty or Limited-Edition Drinks: We will offer specialty or limited-edition drinks with unique flavors and ingredients, and these drinks may be priced higher than standard menu items.

b. Sales Forecast?

• First Fiscal Year (FY1): $270,000
• Second Fiscal Year (FY2): $340,000
• Third Fiscal Year (FY3): $400,000

c. Estimated Profit You Will Make a Year?

• First Fiscal Year (FY1) (Profit After Tax): $100,000
• Second Fiscal Year (FY2) (Profit After Tax): $130,000
• Third Fiscal Year (FY3) (Profit After Tax): $150,000

d. Profit Margin of a Coffee Truck 

The ideal profit margin we hope to make at Stefan Bruce® Coffee Truck, Inc. will be between 15 and 35 percent depending on the additional ingredients, pack, and size.

9. Growth Plan

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

Stefan Bruce® Coffee Truck, Inc. will grow our coffee truck business by selling franchises.

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

Stefan Bruce® Coffee Truck, Inc. plans to expand to the following cities:

• Austin, Texas
• Atlanta, Georgia
• Boston, Massachusetts
• Denver, Colorado
• Miami, Florida
• Nashville, Tennessee
• New York City, New York
• Portland, Oregon
• San Diego, California
• Silver Spring, Maryland.

We are expanding to these cities because, these cities have large populations, a thriving food scene, and a diverse consumer base that may be receptive to coffee.

10. Exit Plan

The founder of Stefan Bruce® Coffee Truck, Inc. plans to exit the business via family succession. We have positioned 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 difficulties.

The company has successfully developed a detailed transition plan to smoothly hand over responsibilities to the new successor. This includes transferring ownership, training key personnel, and communicating with employees, customers, and suppliers about the change.