food stand business plan

Food Truck Business Plan Template

Written by Dave Lavinsky

Food Truck Business Plan

You’ve come to the right place to create your food truck business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their food trucks.

Food Truck Business Plan Example & Template

Below is a template to help you create each section of your food truck business plan.

Executive Summary

Business overview.

Zesty Zane’s Food Truck is a new food truck located in Portland owned by local critically acclaimed chef, Zane Benedict. The menu will consist of popular food options that consist of burgers, sandwiches, gyros, and tacos uniquely made with the creativity and uniqueness that Chef Zane can offer. Chef Zane’s eclectic style and consistency make him a favorite among Portland foodies and his food truck will garner a loyal following amongst young professionals and college students.

Zesty Zane’s Food Truck will be located in the immensely popular food truck pod known as Cartopia. Chef Zane will receive lots of exposure by being a part of this community as there are plenty of neighboring food trucks, bars, nightlife, and entertainment options nearby. With the popular location of Cartopia and an impressive Instagram social media following, Zesty Zane’s Food Truck is destined to become a local go-to dining destination for anyone craving delicious, interesting fare at an affordable price.

Products Served

The following are the products to be offered by Zesty Zane’s Food Truck:

• Sandwiches & paninis
• Assorted non-alcoholic beverages

Customer Focus

Zesty Zane’s Food Truck will target customers in Portland who live, work, or socialize near Cartopia. This area is frequented by numerous young professionals, college students, and the late-night crowd who regularly eat at food trucks. Anyone seeking trendy dining options are the target customers of Zesty Zane’s Food Truck.

Management Team

Chef Zane has worked in the culinary industry for over ten years and is accustomed to the long, demanding hours of operating a kitchen. He attended culinary school in San Francisco and returned home to Portland to be a part of the world-renowned food scene that Portland has built for itself. After working under three award-winning chefs, Chef Zane is ready to venture out on his own and start his own business as a food truck.

Chef Zane Benedict will be the food truck owner and operator of his food truck. He will operate the food truck Tuesday through Sunday from 11:00 am until 1:00 am. Chef Zane will also employ two part-time cooks to assist him during peak hours of operation.

Success Factors

The following success factors will set Zesty Zane’s Food Truck apart from the competition:

• Exceptional cuisine made fresh with locally sourced ingredients.
• An eclectic menu that is unlike any other in the Portland food scene.
• Convenient location: Zesty Zane’s Food Truck will be located in a highly-trafficked food truck pod that is frequented by college students, young professionals, and night-life regulars.
• Delicious food at a good price. Zesty Zane’s food items will be cheaper than other food truck dishes without sacrificing quality.

Financial Highlights

Zesty Zane’s Food Truck is seeking $40,000 in debt financing to open its food truck. The funding will be dedicated for the purchase of the food truck, cooking supplies and equipment, working capital, three months worth of payroll expenses and opening inventory. The breakout of the funding is below:

• Purchase of food truck – $20,000
• Food truck kitchen supplies and equipment – $10,000
• Opening inventory – $2,000
• Working capital (to include 3 months of overhead expenses) – $3,000
• Marketing (website design and management) – $5,000

The following graph outlines the pro forma financial projections for Zesty Zane’s Food Truck:

Company Overview

Who is zesty zane’s food truck.

Zesty Zane’s Food Truck is a startup food truck business located in Portland, Oregon. The menu offerings are eclectic, made-to-order, bistro-type dishes served fresh and fast in the entertainment district of Portland. The ingredients are locally-sourced from independent food growers and artisans in and around the Portland region. The dishes are incorporated with an ingenious twist to commonly known popular food menu items. The menu options are simple dishes commonly seen at food trucks, but Chef Zane adds his own spin to the typical fare – sandwiches, gyros, burgers, and tacos all made his way unlike any other food establishment.

Zesty Zane’s Food Truck is owned and operated by Zane Benedict, a local Chef classically trained in culinary school and under the most prestigious chefs in Portland. Chef Zane is known for his creativity, consistency, and quickness in the kitchen and his dishes receive multiple positive reviews in the restaurants Zane has been employed. Chef Zane specializes in fine French, Italian, and Mediterranean cuisine with a creative twist not typically found in other restaurant establishments.

Zesty Zane’s Food Truck History

After graduating from culinary school in 2008, Chef Zane Benedict worked as a sous chef in three different restaurants in Portland. All of the chefs Zane worked under were award-winning, locally-acclaimed chefs that frequently trained their apprentices to prepare dishes up to their expectation and standards.

Chef Zane learned a great deal from these chefs and garnered a reputation himself for his creativity and consistency. Now that Zane feels he has learned as much as he can from the senior chefs, he would like to venture out on his own and start his own business. Due to the large amount of capital required to open a full-scale restaurant, Chef Zane decided a food truck business was the most cost-effective option for his operation.

Since incorporation, Zesty Zane’s Food Truck has achieved the following milestones:

• Developed the food truck’s branding image, social media, and website.
• Has a soft hold on a used food truck that recently went out of business.
• Developed and finalized the menu of the dishes Chef Zane will serve.
• Obtained a food permit license to be able to prepare and sell food and drinks in Portland County.
• Obtained a sales and use tax permit for use in Portland County.

Zesty Zane’s Food Truck Products

The following are the types of menu items Zesty Zane’s Food Truck will produce:

Food Truck Industry Analysis

Food truck vendors will continue to perform well over the next five years, benefiting from consumers with deeper pockets who are able to spend on pricier gourmet food options. Revenues are expected to increase to $1.4 billion during this time period.

Food Truck industry operators are expected to continue to experience growth, as generally positive economic conditions and momentum from the gourmet food movement propel growth.

Consumers nowadays demand higher-quality food, a wider variety of styles and tastes, better presentation and, most importantly, more healthy menu options. Therefore, operators that include healthy options on their menus will be best situated for success over the next five years. Vendors that continue to offer unique food options will also be in a strong position by carving out a niche and developing a loyal customer base.

The food truck industry will also benefit from an increase in the urban population, which is expected to comprise the majority of the US population in five years. The food truck industry benefits from agglomeration because it relies on high foot traffic. Additionally, urban dwellers are also more likely to purchase meals rather than cooking at home due to their above-average incomes and limited spare time.

Customer Analysis

Demographic profile of target market.

Zesty Zane’s Food Truck will target the population of Portland that frequently dines in the entertainment district. There is a large food truck area of Portland known as Cartopia, where Chef Zane will set up his business. This area is home to numerous dining establishments, nightlife, bars, clubs, and food trucks. The target market of this area are usually young professionals and college students who have disposable income.

The precise demographics for Portland, Oregon are:

Customer Segmentation

Zesty Zane’s Food Truck will primarily target the following customer profile:

• Local residents of Portland who partake in late-night activities such as socializing with friends or bar-hopping
• Business professionals that work and reside in the Portland Cartopia area – law offices, hospitals, clinics, insurance agencies, retail, and schools
• College students who are in search of fast, cheap, and trendy eats

Competitive Analysis

Direct and indirect competitors.

Zesty Zane’s Food Truck will be competing with other food trucks in the Portland community. A profile of each competitor is below.

Potato Champion

Potato Champion is a local favorite of Portland foodies that is also located in Cartopia. Started in 2008, Potato Champion quickly established itself as a fan favorite for late night food. Potato Champion serves a limited menu of hand cut, twice fried Belgian style fries, a variety of dipping sauces, and their own version of the Canadian classic Poutine, as well as other fry related dishes. They pride themselves in using the highest quality ingredients and focus on an inventive menu that combines tastes from all over the world with one of the most popular foods found on the globe, the french fry.

Potato Champion is open for lunch, dinner, and late-night. They are available for catering and delivery through Postmates. Followers of Potato Champion are also able to purchase swag from their store that includes music, bags, pins, and hoodies.

Started by John Eads in 2009, Pyro Pizza was built out of a 8’x16’ food cart that he custom-built with a cast iron wood fire oven. Aside from wood fired pizza, John also makes his own sodas using all real ingredients and natural cane sugar. John’s belief is that good ingredients make good food. His crew makes many components in-house and sources regional flour, pepperoni, sausage, blue cheese, soda ingredients, and seasonal produce all from Portland businesses and farms. In 2015, Pyro’s expanded to a new sandwich cart, Pyro’s Wicked Wiches – a scratch-made sandwich, soup, chips and cookie food cart.

Pyro’s serves an assortment of wood fire pizzas made from scratch. Their choices are margherita, marinara, arugula and mushroom, pepperoni, quattro formaggi, fennel sausage, veggie bianca, breadsticks, salads, and sodas.

Chicken and Guns

Chicken and Guns is another local favorite among Portland foodies. Also found in Cartopia, Chicken and Guns serves up Latin American chicken, wings, tacos, salad, soup, and their “guns” are crispy seasoned potatoes. The chicken is served by the quarter, half, or whole bird. Another item they are acclaimed for is their peruvian aji sauce, habanero carrot sauce and chimichurri sauce. They have been named the best fried chicken in Portland by the PDX Eater.

Chicken and Guns is open everyday from 11:00 am to 10:00 pm for takeout and delivery options. With a large Instagram and social media following, there is always destined to be a line at the Chicken and Guns food truck.

Competitive Advantage

Zesty Zane’s Food Truck offers several advantages over its competition. Those advantages are:

Food Truck Marketing Plan

Zesty Zane’s Food Truck will offer a unique value proposition to its clientele:

• Delicious food made fresh with locally sourced ingredients using exquisite techniques.
• Located in the ultra-hip food truck area known as Cartopia.
• Great food at a great price. The menu offerings of Zesty Zane’s Food Truck will be accessible to customers of all walks of life.

Promotions Strategy

The promotions strategy for Zesty Zane’s Food Truck are as follows:

Social Media

Zesty Zane’s Food Truck’s main source of marketing will be through social media, primarily their Instagram page. Chef Zane has become adept at taking appealing photographs of his dishes. He will post pictures of his menu and add details on the location and hours of operation. His food truck account already has over 3,000 followers and he posts daily “Coming Soon” teaser photos.

Zesty Zane’s Food Truck will be parked in the immensely popular food truck hub known as Cartopia of Portland. There are dozens of food trucks located in this pod and there is always a crowd of people. Cartopia hosts bands, art shows, shopping events, and other social gatherings to enhance the entertainment vibe of the pod. By being part of Cartopia, Zesty Zane’s Food Truck will receive lots of exposure and traffic.

SEO Website Marketing

Zesty Zane’s Food Truck plans to invest funds into maintaining a strong SEO presence on search engines like Google and Bing. When a person types in “local food truck” or “top food trucks in Portland”, Zesty Zane’s Food Truck will appear in the top three choices. Zesty Zane’s will also invest in their website also to ensure that it is user friendly, always up to date, and displays professional photographs of its menu items and location.

Third Party Delivery Sites

Zesty Zane’s Food Truck will maintain a presence on sites like GrubHub, Uber Eats, Doordash, and Postmates so that people looking for local food with the option of delivery will see Zesty Zane’s listed.

The pricing of Zesty Zane’s Food Truck will be moderate and on par with other food trucks so customers feel they receive value when purchasing their menu items.

Operations Plan

The operations plan for Zesty Zane’s Food Truck is relatively simple as its overhead and cost is small. The functional roles for its employees are as follows:

Operation Functions:

• Chef Zane will run the food truck operation. He will be in charge of inventory, menu creation, food truck marketing, customer service, and bookkeeping. Chef Zane will work every day that he chooses to open the food truck. Chef Zane plans on operating the food truck Tuesday through Sunday 11:00 am to 1:00 am.
• Two part-time cooks that will alternate helping Chef Zane during the hours of operation. As business picks up, there will be two cooks at the same time assisting Chef Zane during peak hours.

Milestones:

Zesty Zane’s Food Truck aims to open in the next 3 months. The following are the milestones needed in order to obtain this goal.

4/15/202X – Purchase food truck

5/1/202X – Finalize menu

5/15/202X – Social media and advertising campaign begins

6/1/202X – Finish cleaning up the food truck and prepare it for operation

6/10/202X – Purchase food and drink inventory, stock truck, and park it at Cartopia

6/11/202X – Grand Opening of Zesty Zane’s Food Truck

Zesty Zane’s Food Truck will be owned and operated by Chef Zane Benedict.

Chef Zane Benedict, Food Truck Owner

Chef Zane Benedict is a Portland native who attended culinary school in San Francisco and returned to Portland to become a part of the world-renowned food scene Portland is uniquely known for. Zane was trained under three different chefs at fine dining establishments in downtown Portland and was awarded Best Sous Chef of Portland in 2017. Chef Zane has won two local culinary competitions, placed runner-up in a statewide competition, and participated in a cooking competition show on the Food Network.

Chef Zane has received numerous awards for his creativity and consistency of his food while being able to prepare dishes in a short amount of time. His ability to prepare food under pressure allows him the unique skill of serving numerous customers without having them undergo long wait times. This will keep customers happy and coming back for more.

Financial Plan

Key revenue & costs.

The revenue drivers for Zesty Zane’s Food Truck will come from the menu items being offered daily.

The cost drivers will be the ingredients and products needed to make the menu items (oil, bread, meat, chicken, produce, drinks) as well as the cooking materials (pots, pans, bowls, plates, utensils, etc.). Other cost drivers will be the overhead expenses of payroll for the part-time employees and propane for the food truck.

Funding Requirements and Use of Funds

• Food Truck Marketing (website design and management) – $5,000

Key Assumptions

The following table outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the business loan.

Initial Number of Customers Per Day: 50

Average Menu Item Cost: $9.00

Average Order per Customer: $15.00

Annual Cost for Maintenance of Truck: $10,000

Financial Projections

Income statement, balance sheet, cash flow statement, food truck business plan faqs, what is a food truck business plan.

A food truck business plan is a plan to start and/or grow your food truck business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your food truck business plan using our Food Truck Business Plan Template here .

What Are the Main Types of Food Truck Companies?

There are a variety of types of food trucks, each specializing in a specific type of cuisine or food item. There are food trucks that sell burgers, cookies, ice cream, tacos, pizza, sandwiches, salads and more.  

What Are the Main Sources of Revenues and Expenses for a Food Truck Business?

The primary source of revenue for food truck businesses is its food and beverage sales. 

The key expenses for a food truck business are food costs, salaries, and transportation expenses. 

How Do You Get Funding for Your Food Truck Business?

Food truck businesses are typically funded through small business loans, personal savings, crowdfunding and credit card financing.  A well-crafted food truck business plan is essential to securing funding.

What are the Steps To Start a Food Truck Business?

Starting a food truck business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Food Truck Business Plan - The first step in starting a business is to create a detailed business plan for your food truck that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your food truck business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your food truck business is in compliance with local laws.

3. Register Your Food Truck Business - Once you have chosen a legal structure, the next step is to register your food truck business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your food truck business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Food Truck Equipment & Supplies - In order to start your food truck business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your food truck business. Food truck marketing includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful food truck business:

• How to Start a Food Truck Business

Where Can I Get a Food Truck Business Plan PDF?

You can download our free food truck business plan template PDF here . This is a sample food truck business plan template you can use in PDF format.

Other Business Plan Templates

Catering Business Plan Template Bakery Business Plan Template Coffee Shop Business Plan Template Event Venue Business Plan Template

Restaurants | How To

How to Start a Food Truck Business in 9 Steps

Published May 6, 2024

WRITTEN BY: Mary King

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This article is part of a larger series on Starting a Business .

Starting A Business?

• Step 1: Research Local Food Trucks & Laws
• Step 2: Choose a Menu, Name & Logo
• Step 3: Register Your Business & Open a Bank Account
• Step 4. Raise Funds

Step 5: Get Your Food Truck

• Step 6: Get Licenses, Permits & Insurance
• Step 7: Purchase Equipment & Supplies
• Step 8: Hire & Train Staff

Step 9: Market Your Food Truck

• Pros & Cons

Bottom Line

There has never been a better time to start a food truck business; in fact, the number of food trucks grew by almost 10% from 2022 to 2023 1 . If you’re looking for a money-making business idea, a food truck is a great one. Successful food trucks can bring in more than $500,000 per year, with startup costs from $40,000–$200,000.

Starting a food truck typically takes three to 12 months and requires the nine steps below. Download our checklist to help you stay on track.

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Starting a Food Truck Checklist

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Step 1: research local food trucks & laws.

When starting your food truck business, it’s essential to make sure you are filling a hole in the market, supplying a demand, and operating within the law. So, you should evaluate the food truck scene in your area and research local food truck laws and regulations. This information will help you decide if a food truck is the best-fitting business for you to start .

When evaluating your local food truck scene, make sure you do the following:

• Evaluate existing trucks: Note popular cuisines and price points, serving hours, and popular selling locations. This will help you develop a truck that fits your market.
• Research local food truck laws: Some areas have generous food truck regulations, while others are so restrictive that it seems they don’t want trucks at all. Call your local health department and county or city clerk’s office to find out what permits you need and what parking restrictions to comply with.
• Check the availability of commercial kitchens: In most locations, food trucks are required to contract with a commercial kitchen to prepare and store food.
• Look for food truck parks: Truck parks indicate that an area welcomes trucks and helps potential customers locate you.

Introduce yourself to truck owners and ask them about their biggest operational challenges. You‘ll find that most are eager to share their knowledge with an up-and-coming food trucker. One of the best aspects of food truck communities is the camaraderie and support of other truck operators.

Step 2: Choose a Menu, Name & Logo

Food trucks are known for their clever remixes and personal flair. The most successful food truck concepts reflect their owner’s interests and personal experiences. Consider the popular Las Vegas truck Buldogis , which serves Korean-inflected gourmet hot dogs that reflect the owners’ American and Korean backgrounds. Start with your menu, and your name and logo should naturally follow.

• Read our menu development guide for tips on creating your food truck menu.
• Our restaurant name generator will help you find a unique food truck name.
• Read our guide to business logos for details on crafting your food truck logo.

Step 3: Register Your Business & Open a Bank Account

When starting a food truck, you’ll need to create a business entity and register with your state. For most food truck operations, a limited liability company (LLC) makes the most sense. It protects your personal assets in the event of a lawsuit or business bankruptcy and shows vendors, insurers, and permitting agencies that your business is legitimate.

Filing fees vary from state to state, but forming an LLC isn’t necessarily expensive. Costs range from $40 to $500, and you can find the forms you need on your state’s business office website.

Filing LLC paperwork can be tedious and a little complicated. If you need guided assistance, we recommend working with a legal website like Incfile or one of our other recommended online legal services .

Open a Business Bank Account

You’ll need to separate your personal finances from your business finances by opening a business bank account . This account will hold funds invested in your food truck and be used to pay permitting, licensing, and vendor fees. When your truck is up and running, your credit card deposits will run to this account, and you will pay employees and suppliers from it. You can inquire about business banking options at the bank that handles your personal banking.

See our list of the best small business checking accounts for more business banking options.

Step 4: Raise Funds for Your Food Truck

Starting a food truck business can cost anywhere from $40,000 to $200,000, depending on your location, the cooking appliances you need, and the type of truck you purchase. The tables below give you a rough estimate of the itemized costs involved in starting a food truck business. Click the tabs to view one-time and recurring food truck costs.

Food Truck Business Estimated Startup Costs

The first step to raising the funds you need to start a food truck is writing a business plan.

Write a Food Truck Business Plan

Like any other business, your food truck will need a well-prepared business plan if you want it to succeed. Your business plan puts your concept on paper so potential investors and loan officers can see that your food truck is a good investment. Having a food truck business plan gives you a better understanding of how long it will take for your food truck to turn a profit and what funds you need to sustain your business until that point.

Read our guide to writing a business plan for step-by-step instructions.

Food Truck Funding Options

Most people don’t have immediate access to the capital required to start a food truck, so financing your food truck business will be an essential step. Most lenders require a business plan before issuing a loan, so be sure to have your thorough plan ready, along with the amount you need and your credit history.

Here are some financing options available for aspiring food truck owners:

• Equipment loan/financing program: Some truck sellers or equipment financiers will loan to you to purchase the truck.
• Rollover for business startups (ROBS): If you have more than $50,000 in a retirement account, you can set up a ROBS , which will allow you to use the funds in your retirement account to fund your business without paying early withdrawal penalties.
• Business credit cards: If you are good at paying off debt, a business credit card may be a good option.
• Personal loan: This is a good option if you have a good credit score and need less than $50,000.
• Microloan from Small Business Administration (SBA): Microloans are considerably smaller in size than conventional business loans but may be sufficient to cover food truck startup costs. Check out SBA’s Microloan Program for loans of less than $50,000.
• Find investors: Whether it’s a friend or family member, finding investors for your food truck business requires strategy. Prepare your concept and a solid business plan to help convince investors to fund your venture.

Not all funding comes from banks and big investors. If you have an active fanbase of friends and family who support your food truck concept, crowdfunding can provide some or all of your opening budget. Your business plan will give you a great jumping-off point to create a compelling crowdfunding page. A bonus of crowdfunding for a food truck is that you’ll already have a fanbase excited to see your truck come to life.

For a detailed look at crowdfunding, see our guide on how to crowdfund a small business .

Several of the permits and licenses you need depend on the type of vehicle you purchase. So this step typically happens before– simultaneously with– the next step; getting your permits. You can buy, build, or lease a food truck. Food trucks can cost anywhere from $3,250 for a secondhand trailer to as much as $300,000 for a new, custom-built truck, although $5,000–$125,000 is the general range.

Regardless of your budget, you should invest in the best quality truck you can afford. Investing in a quality food truck from the beginning minimizes your risk of incurring repair expenses down the road, and protects you and your staff from dangerous cooking or vehicle-related accidents.

Expand the sections below to explore your options for getting a food truck.

Buy a Food Truck

You have several options for purchasing a food truck. You can purchase a used truck from an individual seller in person or online. By purchasing a used truck, you can typically get a fully outfitted truck for around $50,000, although you will have to repaint the outside and possibly renovate the inside to match your business.

A few good directory sites to find used food trucks are:

• Commercial Truck Trader
• Used Vending
• Road Stoves
• Miami Trailer & Equipment Company

You can also purchase a new food truck directly from a manufacturer like Ibarras. Prices for its standard trucks start at around $18,000. Major car manufacturers like Ford, Nissan, and Mercedes-Benz also supply food truck-compatible vehicles; you’ll need to contact a local dealer for pricing and options. When buying new from a major manufacturer, you should expect prices starting at $40,000, plus equipment.

Build a Food Truck

Custom-built food trucks can set your food truck apart from the competition if you have the budget for one. Companies like Prestige Food Trucks, Cruising Kitchens, and Northwest Mobile Kitchens specialize in custom food trucks built to your exact specifications. New custom food trucks will cost around $100,000 to $200,000. The benefit, of course, is that everything is new, built for purpose, and usually under warranty. You don’t need to worry about how previous owners cared for the truck or if a professional installed the gas lines.

Lease a Food Truck

If you’re only operating seasonally or your funds are limited, you should explore leasing a food truck. Brands like Mobi Munch, RoadStoves, and Ibarras lease trucks month-to-month. If there are truck agents in your area, leasing is an attractive option because leases tend to come with lots of included services. RoadStoves customers, for example, get overnight truck parking, a health permit, and access to a commissary kitchen included in their truck lease. It is common for food truck leases to run from $3,000 to $4,500 per month.

The downside to leasing is that the truck won’t be customized to your needs. You’ll also need to get creative with magnetic decals to customize the truck with your logo and menu. When your lease term is up, you may also have to pause your business until you find another truck.

Step 6: Get Licenses, Permits & Insurance

Food trucks need at least three types of licenses and permits: general business licenses, food service licenses, and vehicle licenses. Depending on your location, most food truck licenses and permits will cost between $100 to $500 each. Your total permit and license fees can range from $1,500 to $20,000, depending on your location and the type of food you cook.

A mobile food vending permit is one of the licenses your truck needs. (Image from NYC Dept. of Health)

To ensure your food truck is fully licensed and permitted, you’ll need to contact:

• Your local health department: The health department issues licenses for your truck, prep kitchen, and managers. If your location also requires food handler’s permits for your staff, the health department will handle that.
• Your local fire department: The fire department inspects your cooking equipment and the truck’s electrical and fire suppression systems to ensure they operate safely.
• State, county, and city clerk’s offices: These offices issue general business licenses, tax licenses, and other foundational documents for running your business.

Food Truck Insurance

Like any small business, food trucks need general liability insurance. Since food trucks operate as mobile businesses, serve food to the public, and may have employees, you’ll have additional insurance needs like commercial auto coverage and worker’s comp. Contact an insurance provider for a comprehensive quote.

For more details, read our expert-written guides to food truck insurance costs and coverage plus a ranking of the best food truck insurance companies .

Step 7: Purchase Equipment & Supplies

Even if your truck is fully outfitted with cooking and refrigeration equipment, you’ll still need some extra tools. Generators, condiment tables, registers, and point-of-sale (POS) systems are all standard food truck equipment. Increasingly food truck owners are adding rooftop solar panels to offset fuel costs. You’ll also want to open accounts with food suppliers so you can buy in bulk and avoid paying sales tax.

Food truck equipment and supplies you’ll want to budget for include:

• Truck wrap and exterior decor: Those vibrant trucks with nose-to-tail designs are covered in a “truck wrap.” The cost of installing a truck wrap ranges from $2,500 to $5,000 (including design). If you are short on funds, local sign shops can print smaller vinyl decals or magnets.
• Cooking and serving equipment: You’ll likely need small equipment like a food processor, baking sheets, and Cambro containers to store your prepped food and transport it from your prep kitchen to your truck. If you offer catering, you’ll also want a couple of sturdy collapsible tables and chafing dishes to keep your food warm outdoors. You’ll be able to find most small equipment at a local restaurant supply or kitchen store.
• Generator: You’ll need a generator to run your cooking and electrical equipment when your truck is parked.
• Ingredients: You’ll need the ingredients to make your signature dishes before you can cook and serve food. If your food truck is even a little bit busy, you’ll want to open accounts with wholesale suppliers. This gives you a price break on food and beverage supplies and saves driving time, as most distributors will deliver directly to your commercial kitchen space.
• POS and payment equipment: Most customers prefer to pay with cards or apps, so you’ll need a way to process payments on the go. Our top-ranked food truck point-of-sale (POS) systems can operate via Wi-Fi or cellular networks, and many are free to use.

More than half of the food trucks I know use some type of Square POS. Square operates on iPads and smartphones, and you can download the Square POS and start taking payments in a couple of hours. For more information, visit Square .

Step 8: Hire & Train Staff

Food truck owners do a lot of work themselves, but you’ll still likely hire some hourly employees. The staff you hire should fill in skills you lack or areas you cannot pay attention to. For example, if you are an expert grill cook, it makes more sense to hire a cashier than a cook. But if you have a welcoming personality and are great at add-on sales, you’ll be stronger in a customer-facing role and should hire cooks. If you get a lot of catering inquiries, it might make sense to hire an event salesperson to send estimates and wrangle catering contracts.

Expand the sections below to view common food truck employees:

Window Attendant

(Image by Kampus Production from Pexels)

Your window attendant takes orders at the truck window, interacts with customers, and processes payments. Someone with a friendly personality and cash-handling experience is good in this position. Window attendants are typically hourly, minimum wage positions and may earn tips.

If you are struggling to find staff, a window attendant can be replaced by a self-service kiosk . If you are short-staffed, this is one of the simplest solutions.

(Image from RODNAE Productions, Pexels)

A truck cook cooks and serves dishes on the truck itself. Depending on the number of cooktops you have and your menu style, you may need two cooks in the truck all the time. Truck cooks tend to be hourly employees who earn at least minimum wage; however, you should definitely pay more if your truck cook is experienced. They are frequently included in on-truck tip pools.

(Image by Mikhail Nilov, Pexels)

If your truck is busy, you may need a hand with off-truck prep cooking. Hiring a prep cook to work in your commercial kitchen while your truck is on the road can significantly reduce your turnaround time between events. Prep cooks are usually part-time staff who earn at least minimum wage. Depending on your local labor laws, prep cooks may or may not be included in tip pools.

Catering Salesperson

(Image from Harvest Kitchen)

You don’t want to miss the chance to book private catering events. These can be a massive boost to your truck’s bottom line. A catering salesperson responds to all private event inquiries and works directly with your clients to create a menu, execute an event contract, collect deposits, and hire rental equipment. Catering salespeople typically earn a small hourly base pay or salary, plus a 3% to 10% commission on their booked events. They are typically not tipped, though their commission fee may appear as a service charge on the final invoice.

Catering Servers

(Image from cater-waiters.com)

Large events sometimes request tray-passed food or to have some foods served at individual tables. Event coordinators may hire this staff themselves, but it can help to have some staff of your own to call in. Having your own catering servers can give you an edge in landing bigger (and higher budget!) events. You may pay catering servers a flat hourly wage (usually higher than minimum wage) or minimum wage plus tips.

Training Food Truck Staff

Once you’ve hired your truck staff, set aside time to train them. Depending on your team’s experience level, you’ll need to allow two days to two weeks to get your team up to speed. Prepare itemized copies of your menu with ingredient lists and common allergens, along with what items can and cannot be modified. For example, if your housemade chili is cooked with bulgur wheat, it cannot be made gluten-free.

All of your truckers should know how to use fire safety equipment on your truck. You’ll also want to train your team on the policies and procedures at your commercial kitchen. If there are strict operating hours, designated storage areas, or designated parking areas, you’ll want to cover that explicitly, so your team reflects well on your brand.

If your truck collects tips, you may also run a tip pool to distribute tips to your staff. For tips on managing a tip pool, see our guide to restaurant tip pooling laws and tipping out . A tip pool based on hours is a popular way to distribute food truck tips.

Once you have your truck, permits, and staff, the final step in starting your food truck business is marketing your truck. A good food truck marketing strategy involves a combination of online and traditional marketing strategies, including social media marketing, vending at local events, building a website, and joining advocacy groups.

You can take a deep dive by reading our guide to food truck marketing . Expand the accordions below for a quick overview.

Food Truck Social Media Marketing

Instagram and Facebook are great ways to connect with your local community and help potential customers find your business. Plus, Instagram and TikTok are ideal places to show off pictures of your tasty food. For maximum impact, post regularly, and be sure to use any local hashtags to help your business get discovered. Don’t just stick to food photos; part of the appeal of food trucks is their personal story and the camaraderie of their team. Let users see your personality and passion.

Post your locations and hours so that customers can easily find you. If you accept orders online or over the phone, include that information in your social media bio. You can also use stickers and buttons on your Facebook or Instagram accounts to add shoppable links to your online ordering site.

Create a Website

A website is essential for a food truck. It shows potential customers who you are, what kind of food you sell, and how to find your truck. Your website is also a great place to post your event calendar or a contact form for catering orders. Our guide on how to make a business website will walk you through the process.

Participate in Festivals & Local Events

Festivals are a great way to get customers and gain insight from fellow food truck owners. Especially in the spring and summer months, tons of towns and cities have outdoor events, from fairs to farmers’ markets. Participating in these events is a great way to spread awareness about your business while also getting extra sales.

Try to book as many events as you can. You’ll have a captive audience to market your business and are guaranteed to make sales. If you participate in several events, fairs, or festivals, create an event calendar that you can hand out to customers so that they know where to find you next.

Join a Street Vending Advocacy Group

Many cities with a vibrant food truck community also have advocacy groups. Joining one will put you in contact with other like-minded business owners who can help you troubleshoot problems and send you business if their truck is not available for an event. The added benefit of joining an advocacy group is, of course, advocacy. These groups work together to encourage local regulations that are food truck-friendly, which can’t help but boost everyone’s business.

The National Food Truck Association is an excellent place to start. It currently hosts local chapters in California, Texas, and many other locations

With your truck purchased, supplied, permitted, staffed, and marketed, all you need to do now is make your first sale. With this guide as your foundation, you’re well on your way to starting a successful food truck. So go out there and have a great service.

Pros & Cons of Starting a Food Truck

Still on the fence about starting a food truck? Like any other business venture, the food truck industry offers advantages and disadvantages. Read through this list of food truck pros and cons to help you make your final decision.

Starting a Food Truck Frequently Asked Questions (FAQs)

There is much to know about starting a food truck. These are the most common questions I hear from prospective food truck owners. Expand each question section for a detailed answer.

How much does a food truck cost?

Starting a food truck typically costs between $40,000 and $200,000. The cost varies based on whether you purchase or lease a truck, the truck type, the necessary equipment, and the cost of permits in your location.

How profitable is a food truck?

Successful food trucks can be very profitable, bringing in around $500,000 in annual sales, and sometimes as much as $50,000 per month. Hitting figures like that requires a targeted menu, excellent marketing, and a full-time commitment to managing your costs and overhead.

Having a highly profitable food truck may also involve expanding your truck operation to include private catering, online ordering , and other revenue streams like selling a shelf-stable signature sauce or retail merchandise. It helps to operate in a food truck-friendly city—like Los Angeles, Philadelphia, or Denver—that has regulations that allow food trucks to thrive.

Is owning a food truck hard?

Owning a food truck takes a lot of work, but can be very rewarding. The days can be long; food prep can start in your commissary kitchen several hours before service, and your day doesn’t finish until the truck is parked, the food unloaded, the greywater drained, and all surfaces scrubbed and sanitized. You’ll interact with excited food fans, but you’ll also be responsible for scheduling staff, processing payroll, and dealing with parking tickets. Marketing is important and all on your shoulders, as are less creative things like paying your sales taxes.

If that sounds manageable to you, then owning a food truck won’t feel hard. But if that description sounds overwhelming, you might want to bulk up your restaurant management or general business skills before taking the step to food truck ownership.

How can I start a food truck with no money?

If you want to start a food truck with no money, crowdfunding is your best bet. You can also consider starting with a smaller operation, like a cottage food operation or tent vending, to build a brand and fan following while you save to start your truck.

Why do food trucks fail?

Many food trucks fail within their first three years of operation due to a lack of funds. Difficulties can include unexciting concepts, tough regulations, poor supply choices, truck breakdowns, poor marketing, and more. Some of the biggest reasons food trucks lose money and ultimately fail are:

• Local regulations designed to protect traditional restaurants
• Poor operating and financial planning
• Unforeseen vehicle repair expenses
• Underestimating the daily number of hours needed
• Ineffective marketing

Not all food truck closures are failures, though. Many food trucks close when they become so popular the owners are able to open a brick-and-mortar restaurant or catering company. So in a way, some food trucks fail through success.

If you’ve been dreaming of how to start a food truck business, you should know it is a fun—yet time-consuming—process with plenty of opportunities for growth and profit. The food truck business is demanding but, ultimately, rewarding if you take the time to create a careful business plan with market research and a solid marketing strategy. Ensuring you have plenty of startup capital and the right equipment is the best way to encourage success.

• https://www.ibisworld.com/industry-statistics/number-of-businesses/food-trucks-united-states/

About the Author

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Mary King is an expert restaurant and small business contributor at Fit Small Business. With more than a decade of small business experience, Mary has worked with some of the best restaurants in the world, and some of the most forward-thinking hospitality programs in the country. Mary’s firsthand operational experience ranges from independent food trucks to the grand scale of Michelin-starred restaurants, from small trades-based businesses to cutting-edge co-working spaces.

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How to Start a Food Cart Business: a Step-by-Step Guide for Beginners & Entrepreneurs

Wondering how to start a food cart business?

The timing couldn’t be better: it seems that the street food craze is sweeping the world.

From bustling cities to small towns, food on wheels is a growing trend. And it’s not just drawing street food fans, it’s bringing in big bucks too: according to Intuit , the street-food business, including food trucks and mobile food carts, is a $2.7 billion industry that has seen a 12.4% growth in the last 5 years alone!

Traders are encouraged by the growing number of urban street markets, private events and street food festivals, while the entire trend is supported by the global rise of the “foodie” culture, making the public increasingly open to new taste experiences and quality cuisine.

Which begs the question:

What Makes Street Food So Popular?

From the entrepreneur’s perspective , street food comes with important benefits such as low start-up costs and mobility. Kiosks, food carts , trailers, and food trucks have a lower overhead than restaurants and can be moved if one location does not generate enough business.

For customers , street food is convenient and cost-friendly, which makes it attractive for basically everyone: locals and tourists, students and busy professionals, frugal singles and large families.

The most popular street foods?

There are the classics: hot dogs, hamburgers, ice cream and doughnuts.

Then there are those inspired by ethnic cuisines such as tacos, empanadas, sushi and crepes. The possibilities are endless and it’s up to you, the entrepreneur, to find the dishes and recipes that will set you apart from the rest and, most importantly, that will help you build a good reputation and a loyal customer base.

But, before you decide what foods you’re going to sell, you’ll have to consider:

The PROs and CONs of a Food Cart Business

There are many advantages to starting your own food cart business, which is why a lot of people choose to do just that. The PROs include:

• Low start-up costs
• Less risky than opening up a restaurant
• The ability to be your own boss
• The flexibility to work when and where you want
• Little restaurant experience required
• The growing popularity of the street food trend

But, as with all business endeavours, there are also CONs to examine. A food cart business is no walk in the park: there’s a lot of hard work to be done and you’ll only see significant profits after your business picks up.

The biggest CONs are:

• Being self-employed can be testing for some
• Long hours, early mornings and night shifts required
• Fierce competition
• There are many regulations and laws to comply with
• Seasonal reliance
• Finding a suitable location that you’re allowed to trade in
• Customer service can be challenging if you’re a solo-preneur

From our experience as food carts manufacturers , people are attracted by affordable start-up costs and by flexibility; at the same time, the most common complaints – at least in the initial phase – are long working hours and industry volatility in terms of trends and business opportunities.

However, if you are passionate about good food and you start with solid and well-researched plan, there is every chance you could make a roaring success of your food cart start-up.

How to Start a Mobile Food Cart Business? A Step-by-Step Guide

First step: market research.

Market research involves finding out the “who, what, where, why and when” of your business, and while it’s not the most exciting part of your endeavour, it’s certainly an essential one.

It can be risky and even silly to assume that you already know the answers to these questions and then get caught out later on.

Here’s what you need to address at this stage:

Operational

• Where will you set up your food cart business?
• When will you open to ensure the best business?
• How will the weather affect your trade?

Target Market

• Who are your customers? What is their demographic?
• Competition
• Is there any competition? What do they offer?

Locations & Business Opportunities

Finding a couple of great locations will play a major factor in your success and it depends on several key factors:

• Where you’re allowed to park by law
• Where the customers are
• The prime hours for each location

Some great places and opportunities to consider for trading are:

• Office parks
• The business district
• Shopping districts or malls
• Popular tourist locations
• Sports venues
• Parks and beaches
• Bus and train stations
• College campuses
• Festivals and events
• Conferences and conventions
• Private events (weddings, birthdays, etc)
• Corporate events

Most of these locations will require permits and/or owner agreements, so make sure to check with your local authorities & institutions beforehand.

When it comes to festivals, events, conferences and conventions the best thing to do is to get in touch with organizers and lease your space well in advance.

Determining Your Food Cart Business Legal Requirements

You’ve probably noticed that most How-To guides on this subject place sorting out the legal requirements at the bottom of their To-Do list.

And here’s why: the permits and licensing requirements for food cart businesses vary from country to country, state to state, and even city to city, so making a definitive list with everything you need is close to impossible.

Only your local Health Department can provide you with the information that applies in your case.

At this stage, you’ll address issues such as:

• The street food vending regulations in your city
• Licenses and permits required
• The types of food you’ll be selling and how they’re handled, stored, thawed, and cooked
• Commissary requirements (the requirement to operate from a licensed commercial kitchen)*
• The size, make and the equipment of your street food vehicle
• The vehicle’s fresh water and waste water holding capacity
• Safe food handling course requirement
• Hygiene policies
• Pre-approval inspection of the equipment

* Most municipalities don’t allow food vendors to operate a food cart business from a residential kitchen and they require the use of a commissary – a licensed and inspected commercial kitchen.

Vendors have to report to the commissary each day of operation to prepare the food that will be served from the cart and to clean the vehicle’s equipment at the end of the day.

If you are selling prepackaged foods, you are not considered a food handler and may have less stringent requirements than if you are actually preparing foods or even scooping ice cream.

But as long as food is unwrapped, you are typically considered to be a food handler and must meet specific regulations.

While your cart or truck manufacturer will not know the nuances of each city’s requirements, they can usually help you meet specific health standards.

For example, all of our food carts are manufactured using food-grade materials for countertops and other parts/areas where food may be stored and prepared.

In addition, we work closely with each of our clients to adapt the carts’ cooking & water systems so they will meet all the health and safety standards specific to the vendor’s area.

Getting all the trading, health and safety qualifications in order will not only allow you to operate legally (and avoid hefty fines), but it will also help enforce the public’s hard earned perception that that those running a street food business are doing their utmost to meet and surpass sanitary requirements.

Basically, your legal status and reputation are on the line.

In addition to the food service permits and health requirements, you may also need to apply for:

• Business license
• State sales tax permit
• Truck/cart registration

To sort these out, the city hall or the county clerk’s office will usually point you in the right direction.

Keep in mind that before you can hit the road, health inspectors will check your vehicle. Usually, they look for:

• Proof of ownership, proper identification and license (of the vehicle)
• Proof of District-issued Food Manager Identification Card
• Food-purchase record storage and record keeping
• That your depot, commissary or service support facility meets your vending unit operation needs
• Copy of license for the service support facility and/or a recent inspection report

Food vehicles are typically inspected at least once a year by a health department inspector, sometimes randomly.

The inspector checks to see how food is stored so that it does not spoil and that it is kept at the proper temperature. All food equipment as well as sinks and water supplies are checked.

Commercial kitchens and garages in which food vehicles are kept are also inspected frequently and can be given high fines if they do not meet health and fire codes.

Some have been shut down because of too many violations. Likewise, trucks and carts have lost their licenses over repeated violations.

Editor’s Note: if you want to learn more about what it takes to launch a business, from a more general perspective, here’s a great resource to get you started: How To Start A Business: A Complete Playbook

Choosing Your Street Food Business Platform/Vehicle

Mobile street food businesses come in a variety of shapes and sizes, and deciding which is the right one for you depends on your:

• Start-up budget
• Time commitment
• Vision and the ability to fulfill it
• Experience at running a business
• Target demographic

Your options are: food stands, food carts , concession trailers and food trucks. Each of them has its own unique benefits as well as some disadvantages:

Food Stands

Food stands are essentially booths or stalls that are either temporary or mobile, and are used to sell everything from quick snacks such as bagels, pretzels and ice cream, to more elaborate meals.

Most food stands are usually operated indoors and they are an excellent choice in areas where outdoor selling is limited by cold or unpleasant weather.

Pros: low start-up and running costs, flexibility. Cons:  limited trading areas, limited inventory.

Mobile Food Carts

Pros: affordable, easy to customize, easy to move between locations (they can be pulled by a bicycle/car or pushed by hand), easy to park, easy to maintain, suitable for both indoor and outdoor use, may require less licensing than a food truck. Cons: not too much space for preparing elaborate dishes.

Concession Trailers

Same as food carts, concession trailers have been around for a long time and are often found at fairs, carnivals and sporting events.

Pros: low overhead costs compared to food trucks, more space for cooking. Cons: more difficult to move between locations, require bigger parking space both on/off-duty, involve higher operating costs.

Food Trucks

We believe food carts are the best choice, especially for first-time entrepreneurs. Their size, mobility and low running costs make them ideal for starting a profitable food cart business with the potential to grow and expand at a rapid pace.

Are Food Carts Profitable?

A food cart business can be very lucrative right from the start; however, this depends on many factors such as location, footfall, weather, product type etc.

According to our customers, if you can secure a good location for your business, you can expect between 100 to 400 customers per day (during weekends, festivals and public events), bringing in anywhere from $500 to $3,000 daily.

Choosing Your Concept, Menu & Suppliers

Whether they’re food carts , concession trailers or food trucks, most successful street food businesses out there have themes or concepts that are consistently reflected in all their elements: exterior design, branding, menus and recipes.

Your concept should be a means of distinguishing you from your competition and building your niche market. And, if you get it right, it can even draw media attention to your business.

This brings us to menu planning. Choosing what kind of food you’ll prepare and sell can be a fun task, and if you look at the carts, trailers and trucks operating on the streets, you’ll find that almost anything edible can be served as street food.

But there are a lot of factors to consider when it comes to menu planning, such as:

• What foods do you know how to cook?
• What foods do you enjoy cooking?
• What are the most popular foods in your area?
• What foods can you prepare relatively fast, repeatedly and without difficulty?
• What foods could your customers take with them easily?
• What foods have a good profit margin?
• What times of day will you be open for business?
• What are you going to specialize in?
• How many items will your menu have?
• Where are you going to get the ingredients from?

After deciding on the type of food you’re going to sell, it’s time to start working on recipes and experiment with various ingredients.

Once you’ve found a few favourites, test them on your friends and family first. Don’t be afraid or dismissive of criticism: it’s better to receive it from them.

The bottom line is, don’t start out with foods you have not thoroughly tested. This means you need to perfect each recipe to be sure it has the following qualities:

• It tastes consistently good
• It’s easy to make repeatedly in large quantities.
• It’s easy to serve
• It’s easy to store & carry

Next in line is figuring out your sourcing – where will you buy your ingredients from?

Sourcing your food can be an important factor in planning your purchases, schedule and menu items.

Common sources include wholesale food distributors, food manufacturers, local and regional suppliers, green markets and farmers markets.

Determining the right quantities is another matter that you’ll need to deal with, initially by trial and error. If you have the time, spend a couple of hours observing the street food vendors in your area. How many customers do they have per hour? When’s their busiest period? This will help you estimate a potential sales volume, which you can use to draft your shopping list.

Pay special attention to foods and ingredients that lose their freshness quickly; learn which are the items you can safely keep throughout the day and how many of them you can sell before they go bad.

Creating Your Food Cart Business Plan

Despite the low start-up costs involved, jumping in to street food without any kind of plan is a sure-fire recipe for disaster. The space is extremely competitive, and you need to have a very clear idea of the niche you plan to fill before taking the plunge.

Writing a business plan isn’t a complicated job and it doesn’t have to be very long. Keep it concise, to the point and ensure that you cover each of the following topics:

• Your business’s name
• Business management: who’s going to be in charge?
• Your mission statement: in one sentence, summarize the aim of your street food business.
• Your vehicle: are you going to use a stall, a cart, a trailer or a truck?
• Start-up costs: what do you need to buy to get started? What fees to you need to pay in advance?
• The daily operational costs: how much will you spend on ingredients and what are the overhead costs on a weekly or monthly basis?
• Funding and financial projections; where do you plan to get the money from to start the business and what are your projected profits/losses for the next month, year, 2 years etc? How will you maintain the cash-flow?
• Your schedule: will you work on the business full-time or alongside your day job?
• What’s your main competition and how will you differentiate yourself from it?
• What is your marketing strategy?
• Do you have the logistics in place to deal with delivery and customer service?

If you plan to focus on events, your food cart business plan should include a clear targeting strategy. Pitch fees will vary widely, and there are a whole host of other variables to take into account including total attendance, other traders present, and the demographic of customer that will attend.

A good idea would be to create a spreadsheet with all the events and street food opportunities in your area. The amount of options available could seem daunting in the beginning, so start by thinking about what kind of event or environment you would expect to see a street food business similar to yours.

The next step would be to attend a few events yourself, taking note of the businesses that appear to be doing well and why.

As a general guide, generic fast-food businesses that focus on sales volume fare well at large music festivals and other events where the food is incidental to the main experience, whilst high-end street food traders perform better at events in which the customer will be searching for a new taste experience.

However, all the preparation in the world can’t account for the unexpected, and you will find some events simply fail to produce the expected revenue.

Your business plan should account for this, and you should always have enough spare cash in reserve to act as a safety net when you run up against the worst case scenario

Your approach to branding and marketing is a vital part of your business plan. A strong brand will help you stand out from the crowd, which is important for attracting customers as well as for securing spots at venues.

Remember: you are often selling a lifestyle with street food, so your brand should have a good slogan and a clear identity which reflects this.

Social media should obviously be central to your marketing plan and a strong Facebook and Instagram presence will help you raise your profile and create an army of online followers who you can spread your message to.

Regularly update your profiles with good quality photos as they generate a lot of interest and always display your social media handles so your customers /potential customers can connect with you

Estimating Costs: How Much Does It Cost to Start and Run a Food Cart Business?

There’s no set formula for determining how much starting a street food business is going to cost you since the niche is very broad and there are too many possibilities.

But even so, if you were to estimate, here’s a general expense breakdown:

Food Cart Business

• $3,000 – $5000 on a fully equipped food cart
• $500 – $700 on your ingredients & initial food stock,
• $400 – $ 600 on permits and registrations,
• $500 – upwards on marketing,
• $500 for the first month to park and clean the cart
• $500 in other miscellaneous costs

For comparison purposes, here are the estimates for a food truck business:

• $50,000 – $75,000 on a retrofitted food truck
• $1,000 – $1,500on initial ingredients
• $2,000 on permits and licenses,
• $2,000 for the first month of a commercial kitchen rental
• $500 for the first month of parking and maintaining the truck
• $1,800 on kitchen supplies
• $3,000 on marketing and promotion
• $2,000 on packaging
• $500 in miscellaneous costs

Huge difference, right? Regardless of your choice, you need to do the math before spending any money so that you do not run out before you get started.

Final Words of Advice

Speaking with our customers about their businesses, we’ve learnt that a background in catering or hospitality isn’t necessary to succeed – indeed, a lot of successful food cart businesses were founded by people with no prior experience of serving food.

Their biggest allies? Great food, flexibility – the ability to pivot according to the market’s trends and demands, marketing – a well-thought strategy for promoting their business across multiple channels, and outstanding customer service.

Do you have any questions concerning our food carts ? Contact us and we’ll do our best to help you out!

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How to start a food stand

Editorial team.

Opening a traditional restaurant can carry a lot of risk. Once you choose a location, you’re locked in – potentially for years depending on your lease agreement. Over that time, you’ll likely spend a lot of money paying for rent and utilities and other expenses that incur from operating at a brick-and-mortar location.

By contrast, food stands and trucks are mobile, allowing them to relocate to the hottest spots at any moment. The startup costs are also considerably lower, with the vehicle often being the largest expense.

Better still, you can set up shop anywhere. Major urban centers with high-volume foot traffic tend to be the most lucrative, with some food carts generating $3,000-plus a day. However, don’t discount county fairs and other traveling venues – many of which generate heavy demand for hot dogs, ice cream, burritos, funnel cakes, tacos, smoothies, and other delicious treats you could conceivably sell from a mobile food business.

Many traditional restaurants also invest in dedicated food stands to expand their reach. Going mobile allows them to set up popup shops or attend local festivals.

For more reasons to launch a career in this field, be sure to read our guide on the benefits of starting a food truck business . The rest of this article discusses opening a food stand and taking payments from your customers.

How to start a food stand business

Every jurisdiction is slightly different. Thus, the exact steps for launching a food stand might vary depending on the geographic area in which you plan to serve. Below are some of the most general aspects you’ll need to consider when setting up your food stand.

1. Identify your target market

This is the most important starting step for all businesses. Your target customer determines the what, where, and how much of whatever you sell. There must be a ready market for your culinary creations in order for your business to grow and succeed. For tips on how to create customer personas, be sure to read our article here .

2. Assess the competition

When starting a food stand business, you need to check out the local competition. This means tracking the locations of other mobile food stands. It also means being aware of brick-and-mortar eating establishments within walking distance of every place you plan to sell food.

There’s no rule preventing two taco stands from operating on the same block, but it’s important to understand what you’re up against before committing any resources.

3. Obtain financing

Starting a food stand can cost anywhere from a few thousand dollars to several tens of thousands of dollars . It all depends on the type of equipment you will need and whether you’ll be renting a stand, purchasing a pre-built structure, or buying into a franchise. Local permitting and food stand requirements can also affect startup costs.

If you can finance everything out of pocket, that will help you start off on the right foot without any debt. Otherwise, you may need to seek funding from investors, banks, friends, and family members. Either way, having a business plan is essential. Be sure to check out our small business resource page for more tips on starting a new venture.

4. Register your food stand business

The next step involves choosing a legal structure for your business.

• Sole proprietorships are common among solo entrepreneurs due to the low startup and maintenance costs. However, with this legal structure, your personal and business assets become intertwined.
• Partnerships make sense if there are two or more owners involved with the business.
• Corporations are favored by many larger and more established companies due to the legal protections this structure offers.
• Limited liability companies (LLCs) offer a good balance of setup effort and legal protection.

For a longer explanation of each legal structure, read our guide on how to start a business .

5. Source equipment

The type of food stand you launch determines what kind of equipment and supplies you’ll need.

For example:

• If selling canned goods, you may only need displays, tables, shelves, and a vehicle to transport these items.

If cooking meals or keeping inventory cold, you’ll need a lot more equipment – e.g., stoves, freezers, and gas canisters. These extra items may also increase your permitting and licensing costs (covered in the next section).

6. Obtain permitting and licensing

Most municipalities require that food stands secure proper permitting before they operate. Contact your local city hall to find out what requirements apply to your business. If you plan to serve different geographic areas, you may need to go through a separate permitting process with each jurisdiction.

7. Start taking payments

Although it’s possible to sustain a cash-only food stand business, the pandemic has encouraged many businesses to accept card-based and contactless mobile payment options that don’t involve a direct exchange between merchants and customers.

At Clover, we offer a range of point of sale ( POS ) solutions designed for food stands. Our full-featured counter top POS terminals can handle even the most complex payment tasks – including barcode scanning and receipt printing. To quickly accept payments in the field, we recommend the Flex and Go – two mobile POS terminals that can securely process credit, debit, and contactless payments wherever your food stand business takes you.

Launching a business isn’t easy, but with the tips above, you now have the information you need to go from idea creation to your first hungry customer. When you’re ready to start making sales, keep Clover in mind. Our POS solutions help make taking payments and running your business easier.

To request a free demo of our POS solutions, contact a Clover Business Consultant today.

This information is provided for informational purposes only and should not be construed as legal, financial, or tax advice. Readers should contact their attorneys, financial advisors, or tax professionals to obtain advice with respect to any particular matter.

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How to start your food business: An 8-step guide to success

February 22, 2024 •

8 min reading

Got a great idea for a food business but not sure how to get started? Find out what to consider, and how to make it happen with our practical 8-step guide to sucessfully launching a food business.

Are you a passionate entrepreneur with an innovative idea for a restaurant, a skilled baker ready to take your talents to the next level, or someone with dreams of hitting the road with a food truck , offering your vibrant street food creations to people anywhere? Starting a new food business can be an exhilarating adventure, but it can also be a daunting journey filled with unexpected challenges and bureaucratic hurdles that require a combination of business expertise and determination to overcome.

Is now a good time to launch a food business?

Well, it turns out that now might be a great time to take the plunge. Research shows that the food service industry is projected to grow from $2,646.99 billion in 2023 to $5,423.59 billion by 2030, at a CAGR of 10.79% during the forecast period.

But the idea of starting up your own F&B business may seem daunting, especially when the outlook for start-ups is bleak. Research shows that as many as 90% of new restaurants fail. What's more, restauranteurs and other hospitality business owners have voiced their concerns lately about the affect of the rising cost of labor, energy and inflation on produce on the market. These rising overheads are making for a very challenging market, even for seasoned professionals to navigate.

In the world of business, there is never a perfect time to start. Even in ideal conditions, a business may not survive. However, some of the most successful businesses have emerged from challenging circumstances and economic hardship. It's logical, really. If a business can thrive during tough times, it demonstrates resilience and the ability to overcome future difficulties. So, don't wait for the perfect moment. Take the leap and give your business every chance at success.

So to help you get started, we’ve pulled together an 8-step beginner’s guide, with insider tips to give you a head start.

1. Make a solid Business Plan

The first thing you’ll want to do before making any investment is do your research, diligently. Spend a few weeks (or even months) getting a deeper understanding of the broader food service landscape, your customer target, latest trends, and competitors, and start writing a business plan for your investors. Think of it as exploring your 4C’s: customer, consumer, channel, and context.

For this, you’ll want to:

• Define your target market : Who is your new business targeting – baby boomers, Gen X, Gen Z, empty nesters, seniors? Once you’ve defined your target segment, make sure you understand what they buy, why they buy, where they buy from, and what makes them tick. This will help you create a relevant, targeted offering.
• Define your USP : Find what sets you apart from the rest of the herd. Have a look at what your direct (and indirect) competitors are doing, and establish your point of competitive difference. Now here, it doesn’t have to be radical, but it does have to be relevant. For example, if you’re targeting young families, creating a child-friendly establishment with nutritious children’s meals could be enough to give you a leg up on the competition.
• Define your restaurant style : Are you thinking of opening a bakery, coffee shop, quick-service, fast-casual, or full-service dining restaurant? Each one of these channels requires its unique approach, operating hours, and investment, so make sure to pick one that suits you as an individual and the work schedule that you’ll want to have.
• Select your food type/menu offering: Think carefully about your menu and the type of food you’ll want to offer – and do so early on in the process. Find out what the latest menu trends are (especially for your target market) and tailor your offering to them. Some of the hottest trends right now include vegetarian/vegan diets, allergy-friendly & gluten-free menu options , and sourcing your produce locally.
• Define your brand : Your branding – from your logo and the imagery you use, to the design of your menu, the music you play, and even and uniforms of your staff – define what your business is all about, and what you stand for. It sets the tone for your restaurant and lets your customers know what they can expect. Think carefully about how you want to position yourself and what you want your identity to be.

Once you have your business plan in place, go out into the world – and test it. Find some of your target customers and ask them for their thoughts and impressions. This could be as simple as polling a handful of people off the street to a full-blown market research study.

2. Secure your financing

Now it’s time to sort your finances. However not everyone who wants to start a restaurant has the personal funding to do so. In fact, most don’t.

Thankfully, there are lots of other ways that you can find funding for your new venture:

• Get a business loan
• Turn to family/friends
• Find outside investors or bring in a partner
• Venture Capitalists and angels
• Use crowdfunding
• Get government aid

Just remember that it’s likely to take years before you turn your first profit, and money will be tight at first. So think about starting small (with a strategy to scale up) and choose your business partners wisely, because they’ll be around for a good while.

3. Choose your location

You know what they say: “location, location, location”. Well, as it turns out, that’s not always the case. The location you choose for your establishment will depend on several factors, and unless you’re relying heavily on foot traffic, you don’t necessarily need to be in the hottest new retail location.

Here are a few factors you’ll want to consider :

• Cost : based on your sales and profit projections, what can you afford to spend on rent?
• Accessibility to potential customers : how are your customers getting to your restaurant, by foot, by car, or by public transport?
• Restrictive ordinances : some neighborhoods have strict noise regulations or restrictions on the times when your suppliers can deliver your produce
• Proximity to other businesses : competitors and other businesses can influence your traffic, so map out what’s happening around you, and how it could affect your business
• Plans for the future : consider what the neighborhood will look like in 2, 5, or 10 years, and if there are any major development projects underway that could change the local landscape

4. Design the layout of your space

Once you have a venue, it’s time to start working on the layout and design your space.

Of course, this will depend on the type of establishment you’re running, but typically restaurants dedicate about 45-60% of their space to the dining area, about 35% to the kitchen area and the remainder to storage and office space.

Think carefully about the layout of your kitchen and dining areas, and make sure there’s a smooth flow between the two. Prep space is also critical, so make sure your chefs have enough room to plate, garnish, and decorate their dishes.

This might also be the right time to think about what technology will be required in your food business , be it the POS system, kiosks, tablets, or audiovidual elements that contribute to the atmosphere as well as promoting specific products, technology must integrate within the design of your space.

And most importantly: don’t cut corners in your dining area. This is the stage of the show – literally where all of the magic happens – so finding the right ambiance and decor to make your customers feel welcome is critical to success.

5. Choose your suppliers

As a restaurateur, you’ll be working with several different suppliers – from furnishings to POS systems, bar equipment, kitchen appliances, and of course, food. Make your wish list, scope out your short and long-term budget, and go on the hunt for your partners. But remember that while you don’t want to cut corners when it comes to quality, over-priced suppliers can minimize your margins and run your business into the ground. So make sure to negotiate, hard.

But where do you start looking? Try going to wholesale retailers, local farmer’s markets, F&B conventions, ask for recommendations from fellow restaurateurs, or just do a simple Google search.

You’ll be looking for a trustworthy supplier, who has a good track record of providing quality products and a roster of successful partnerships. For food suppliers, be sure to about their delivery schedules and food safety management practices. And go local – they usually offer fresher ingredients whilst also being better for the planet.

6. Get your licenses and permits

When it comes to regulations, every country, county, and city is different. But make sure that you check in with your local regulatory office, and consider getting legal counsel to make sure you adhere to all of your local health & safety codes and food regulations. Another important license is an alcohol license if you plan on serving alcoholic drinks at your eatery.

Just be aware that some licenses can take months to acquire, so make sure to get started on this process well before opening day.

7. Start hiring your employees

First, think about what staff you need to hire for your restaurant type. Based on the scale of your restaurant, this may include HR managers, purchasing experts, accountants, marketing & sales managers, chefs and sommeliers, waiters, hosts, bartenders, and cleaning and dish-washing staff. Make sure to hire enough staff for each job, and anticipate shift planning and back-ups in case of illnesses and vacations.

Look for candidates with sufficient experience and a successful track record, who are quick on their feet, can multi-task, and are efficient. All of your employees should work well under pressure, and customer-facing staff should have exceptional social skills.

And when it comes to hiring staff, you can never be too careful – so do your due diligence. Make sure to do background checks, conduct several face-to-face interviews, and call their references.

8. Advertise your business

Before opening your restaurant, you’ll want to do a fair amount of advertising to alert your local community that there’s a new eatery on the block.

And while word of mouth is still the best form of publicity, here are a few other ways you might like to consider announcing your new venture:

• Build a great website: make sure that it’s easy to navigate and includes all of the key information, including your opening times, menu, booking engine, and if/how you cater to special requests
• Use social media : create accounts on Facebook, Twitter, Linkedin, and Instagram, and share relevant news and high-quality photos of your restaurant and the behind-the-scenes process as you’re getting ready for opening day
• Run some paid media ads: use ad buying platforms to get your restaurant ads seen and heard by thousands of food-loving people who match your target customer on social media sites, search engines, website ads, streaming services, radio and podcasts. A word of caution though, it's best to leave this to the professionals unless you're confident in you own ability to manage digital ads - using a specialist agency of freelancer will ensure you don't accidentally overspend on your ads.
• Host a soft opening : this is not only a great practice-run before opening day, but will also help create some buzz about your restaurant within your local community. Make the guest list small, and consider having a soft opening for family & friends, followed by one for local businesses and partners.
• Offer promotions to new guests : offer a free drink or dessert for the first 10, 50, or 100 customers – you’ll be remembered for your hospitality and generosity. After all, who doesn’t love free stuff?

And with that, we leave you with one last tip for success: work hard, don’t give up, and be prepared to break the mould. The measure of success is ultimately found in the bottom line, however it's important to measure, track and review performance across a range of metrics to continuarlly reassess and tweak your business model as you go.

Starting any new venture will be a challenge and most likely an uphill battle, but in the end, nothing tastes sweeter than victory.

Keep reading

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May 15, 2024

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May 08, 2024

Lucrèce Lacchio at Berceau des Sens: A chef with a unique background

Apr 23, 2024

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Food Concession Stand Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Food Industry » Concession Stand

Are you about starting a concession stand? If YES, here is a complete sample food concession stand business plan template & feasibility report you can use for FREE .

A concession stand might look like such an easy business to start up, but like any other business, if not properly run or managed will fail. Before starting, you will need to decide what products you intend to sell, where you will sell these products and if you will need to lease or purchase a trailer for use.

The products you will sell will determine what equipment you should procure for your concession stand business. There are different kinds of concession stands such as hot dog stand, mobile trailer unit or permanent concession stand.

A Sample Food Concession Stand Business Plan Template

1. industry overview.

While there are no companies with a dominant share market in this industry, the industry is however worth $2 billion and has been projected to have an annual growth of 3.7% between the periods of 2011 and 2016. This industry has more than 59,000 businesses that provide employment for more than 68,000 people.

The food service industry is one that relies on customer’s spending confidence and increase in disposable income to generate income.

The economic downturn of the past five years even though it affected traditional food restaurants did not affect concession stand owners and other food street vendors, and this was due to the fact that the food sold by these street vendors and concession stands were considerably more cheaper.

However, due to analysis from IBISWorld, customers’ obsession with buying food from the street is likely to decrease between 2017 and 2022. However customers from metropolitan areas were likely to sustain interest in this industry which will in turn present some growth opportunities for growth for businesses in this sector.

Concession stands are usually located in areas where there is a large population or likely to have a large influx of people such as stadiums, carnivals and fairs, movie theatres, and other special events, or those who are in transit to other places like the train stations and other such places.

However, according to statistical survey, two third of the revenue from a concession stand is usually from sale of hotdogs and peanuts, while on the other hand, drinks bring in an excess of 90% profit margin, making it a very profitable product to add to the menu.

Other profitable products that increase the margins for concession stands are snow cones, large popcorns, small popcorns, pizza and nachos.

While traditionally concession stands offered food products cheaper than that of a traditional restaurant, concession stands that operate at sporting events usually sell their products a bit higher than their counterparts in other places and this is due to the fact that they need to pay stadium fees, and also give the team a part of their profits, which increases their overhead costs.

Nowadays, concession stands have delved into technology as more people can now through their tablets and phones, see what concession options are available around them through an app, which is good for business as it allows concession stands cut down on physical waiting time.

Another recent add from technology is the fact that customers in some concession stands can pay for food and beverage via a wristband or key card which allow operator to collect vital information that is not only consumption based alone, but other information that will lead to better serving the customers and also having an accurate database.

2. Executive Summary

Jess’s Unit Concession Stand business is a standard concession stand that will be based here in Sherrill Blvd, Knoxville – Tennessee, USA and will cater to all our various customers.

We intend to retail food products such as salty munching snacks, frozen desserts, gourmet popcorn and caramel corn, sweet snacks, beverages, baked or fried snacks, and meat entrées from our different customized trailers that will be positioned in various strategic locations here in salty munching snacks, frozen desserts, gourmet popcorn and caramel corn, sweet snacks, beverages, baked or fried snacks, and meat entrées.

We also intend to offer consultancy and training services as well. Our aim of starting the concession stand business is so as to become a force to be reckoned with in the industry and also make a name for ourselves that can be able to compete favorably against other competitors in the industry.

We intend to go the extra mile by ensuring that we invest in the finest professionals here in Sherrill Blvd, Knoxville – Tennessee and around the united states of America. We also intend to acquire trusted trucks as well as the best equipment when setting up our concession stand business here in Sherrill Blvd, Knoxville – Tennessee.

Due to our desire for excellence, we have solid plans and processes in place as regards food packaging, hygiene and other structures that will ensure that we remain the preferred business when it comes to concession stands.

We have plans in place to ensure that we employ competent and trustworthy employees to help in running our business.

The employees we have in our employ are those that are have seen where we are going as a company and are determined to ensure that we get to our desired destination. All our employees from management staff to the least employee are attuned to our goals and objectives.

We intend to carry out an intense publicity regarding our business and will hire the services of a brand consultant who thoroughly understands the business and is experienced enough to proffer strategies that would boost our business and allow us not only penetrate the market but become the industry leaders that we desire.

Our clients are very important to us and due to this; we intend to ensure that we take excellent care of our customers by giving them the best experience when they come to our concession stands to patronize. Jess’s Unit Concession Stand is owned and operated by Mrs. Jessica Parker, who has several years of experience in the food service industry that will allow us get to our desired goals and objectives.

3. Our Products and Services

Jess’s Unit Concession Stand intends to deal in several food products and beverages via pour several trucks that will be strategically positioned in different locations.

However, in order to ensure that we boost our revenue and have a solid bottom line, we intend to add other sources of income.  Our earnings will however be guided by the permissible laws of the United States of America and within reasonable ambition. Below are some of the products and services we intend to offer;

• Sale of salty munching snacks, frozen desserts, gourmet popcorn and caramel corn, sweet snacks, beverages, baked or fried snacks, and meat entrées
• Consultancy and advisory services
• Sale of franchise

4. Our Mission and Vision Statement

• Our vision is to make a name for ourselves in the industry and become the preferred concession stand for all our customers here in Sherrill Blvd, Knoxville – Tennessee.
• In order to achieve our vision, we have laid down strategies and a well planned business structure that are designed to ensure that we excel in the industry and become a force to be reckoned with.

Our Business Structure

Due to the fact that we intend to run a standard concession stand business, we have set plans in progress that will ensure that we get it right from the beginning by hiring only competent and hardworking employees to all the available positions in our company.

We are willing to use whatever amount it would require to ensure that we get only the best to work for us. The employees we intend to get will undergo continuous training in order to enhance their skills and increase productivity efficiency for our company here in Sherrill Blvd, Knoxville – Tennessee.

Due to the fact that we intend to offer more services and products than a conventional concession stand, we will need to employ more employees than we normally would to handle all the various services and responsibilities at Jess’s Unit Concession Stand.

Below is the business structure that we intend to build at Jess’s Unit Concession Stand;

Chief Executive Officer

Food Technologist

Human Resources Manager

Admin Manager

Purchasing Manager

Sales and Marketing Team

Accounting/Cashiers

Customer Service Executives

Truck Drivers

5. Job Roles and Responsibilities

• Drafts overall strategies and policies that would affect the direction of the organization
• Ensures that policies are properly implemented and that ineffective policies are removed or modified.
• Engages high-level clients on behalf of the company
• Responsible for ensuring that quality standard is kept at all times regarding the food products
• Ensures that due process is followed strictly in producing and packaging the food
• Carries out mandatory inspections on all food dispensed by the organization
• Sources for and recruits competent employees on behalf of the company
• Ensures that new employees are properly oriented and inducted into the company
• In charge of all the welfare packages on behalf of the employees
• In charge of ensuring that the administrative tasks flows smoothly in the organization
• Ensures that organizational policies are adhered to and implemented
• Works with other departments to ensure that work flows smoothly
• In charge of purchasing food products from reliable vendors and suppliers
• Ensures that the organization gets fair prices
• Drafts and reviews contract documents on behalf of the organization
• Engages in direct marketing in order to increase sales for the company
• Retails food products to various customers when they make demands
• Conducts marketing research in order to determine new markets for the company
• Handles all the financial transactions on behalf of Jess’s Unit Concession Stand
• Administers payrolls for all employees
• Ensures that the overall budget is properly implemented
• Keeps abreast of company’s policies as well as industry trends in order to give consumers accurate information
• Handles all inquiries, orders and feedbacks on behalf of the company
• Keeps an accurate customer database and ensures that it is regularly updated
• Drives the concession stand trailer to and from different strategic locations on orders of the company
• Supervises and assists in loading and offloading the truck
• Carries out light maintenance on the truck whenever necessary
• Ensures that the truck is kept clean at all times
• Cleans the office facility and the convenience for both staff and customers
• Ensures that the cleaning supplies do not run out of stock

6. SWOT Analysis

In our bid to ensure that we start and run a standard concession stand business, we sought for a reputable business consultant here in Tennessee to look through our business concept and determine how we were likely to fare in the industry, and also if we would be able to compete favorably against other established concessions stand business here in Sherrill Blvd, Knoxville – Tennessee.

In view of this, the business consultant conducted a thorough analysis of our business using our strengths, weaknesses, opportunities and threats to determine how we would likely fare and succeed in the concession stand business here in Sherrill Blvd, Knoxville – Tennessee as well as in the United States of America.

Below is the of the SWOT analysis that was conducted on behalf of Jess’s Unit Concession Stand business;

The fact that we are offering a wide range of food products to our various customers means that we have an advantage in this regard over our competitors which could be regarded as a strength for our business. Also, we sourced for and hired competent and professional employees that understand the business thoroughly and are committed to ensuring that we achieve all our intended goals and objectives.

Also, we have well equipped trailers that will allow us meet with demands no matter how they might triple. Also, our location here in Sherrill Blvd, Knoxville – Tennessee is one that is very strategic and will allow us gain a large share of our target market.

The concession stand business we intend to run is in a saturated market and so we might not have it easy breaking into the market as we envisioned. Also, due to the fact that we are just starting our business and would need to massively advertise the business, our major weakness is that we are running on a tight budget and so might not be able to achieve this aspect as we wish.

• Opportunities

We have several opportunities open to us in this business which comes from the fact that we would be offering our customers different food products. Also, the fact that we would be sponsoring local sports or a team will increase the needed awareness we need for our business to grow.

There are several threats that we would face in the course of starting up or running our concession stand business here in Sherrill Blvd, Knoxville – Tennessee. The threats that we would likely face are the arrival of a major competitor in our same location, also, we are likely to face the threat of the economy becoming bad and therefore allowing people to eat less outside, preferring to cook from home instead.

We however have strategies in place that will ensure that we act proactively to reduce the effects of whatever threats we are likely to encounter.

7. MARKET ANALYSIS

• Market Trends

As long as there are places where fans gather or a large number of people either gather or pass through, food and beverage will always play an important role. Concession stands are now taking these experiences and customizing it by infusing more food products and choices or mobile technology, in order to ensure that fans are further engaged. In order to achieve this, these concession stands gather and analyze data in order to better understand the fans.

The trends in the beverage segment have seen certain beers and spirit leap in popularity, which has led fans to seek for these options from concession stands that are more general in nature. Even though hotdogs, pretzels and peanuts will continue to be popular amongst those that patronize concession stands, there is now a more concerted effort to ensure that food sold are healthier and easily more accessible to fans.

This is so as to be able to cater to fans that have food allergies, special diets and other dietary preferences. Also, there is now an increase in ensuring that food served is not only fresh but that the visible preparation of this food can be observed by the customers that patronize the concession stand.

The internet has changed things as more concession stands are making use of the social media platforms to interact with fans, advertise and promote their business as well as market their food products. This has led to an increase in their revenue as this cost of promoting the business is not only cheaper but has the ability to reach a wider range of the audience, and also penetrate the target market better.

8. Our Target Market

The concession stand business is one that is patronized by a wide range of customers from different segments and so cannot really be restricted to a particular group of people. This is why we are not only restricted to a particular area here in Sherrill Blvd, Knoxville – Tennessee, as we have our trailers strategically positioned in order to gain a huge share of this market.

In order to be able to have a better knowledge of our target market and what they will be expecting from us, and also what our duties are, we have conducted a market research. We therefore are in business in order to retail our food products to the following group of people;

• Corporate Executives
• Government Officials
• Business People
• Celebrities
• Sports Men and Women
• Every other person

Our competitive advantage

Our vision is to ensure that we make a name for ourselves and also become the preferred Business Name amongst other food stands for our different clients all over Tennessee and round the United States of America. However to achieve this, we have come up with several strategies that would allow us have a competitive advantage and allow us compete favorably against our competitors.

Our first competitive advantage is going to be the fact that we would be purchasing and stocking at least two trailers that would offer customers in different strategic locations, the options of availability.

Also, we have in our employ, competent and professional staffs that are highly experienced in this kind of business and know therefore what it would take to ensure that we achieve our intended goals and objectives and become a force to be reckoned with nationally.

Another advantage to our business is that we are strict in the quality and type of food that we offer our customers because we understand that this is a sector that would need us being careful so as to avoid being branded in a negative light and therefore chasing off our customers.

Finally, our employees are well paid with a welfare package that rivals that of others within the same category. We are also willing to ensure that our employees undergo continuous training in order to not only enhance their skills but improve their productivity efficiency.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Jess’s Unit Concession Stand is one that has been established with the aim of generating revenue and maximizing profit in the food business industry here in the United States of America, hence we are going to go all the way in ensuring that we do all it takes to make our business attractive enough to our target market, thereby boosting revenue for our business.

Jess’s Unit Concession Stand will therefore generate revenue by engaging in the sales of the following products and offering of the following services;

10. Sales Forecast

Due to the various products and services that we would be offering our various customers, we are confident that there will always be a demand for our food products.

Our location here in Sherrill Blvd, Knoxville – Tennessee is very strategic as we are well positioned to penetrate and gain a huge share of the target market, thereby meeting our goal of generating enough revenue and making profit under a year and growing our business.

After critically examining the food industry line of business and analyzing our chances of survival in this market; using information and data gathered from verifiable sources and similar start-ups here in Sherrill Blvd, Knoxville – Tennessee, we have been able to come with a sales forecast of how we are likely to fare and what we are likely to achieve.

Below therefore are the sales projection for Jess’s Unit Concession Stand based on several factors and assumptions;

• First Fiscal Year-: $300,000
• Second Fiscal Year-: $450,000
• Third Fiscal Year-: $800,000

It should be noted that the above sales projections were done based on what was obtainable in the industry as at the time. Several assumptions that were used were the non-arrival of any major competitor during the defined period as well as a stable economy. However, should any of these factors change, it would affect the sales projected figures and might cause an increase or decrease.

• Marketing Strategy and Sales Strategy

In order to generate revenue, every business involves itself in marketing. Marketing is a very essential aspect of a business either new, growing or already established. In order to correctly anticipate the needs and peculiar characteristics of our target market, we conducted a thorough market research, that will not only allow us penetrate the market but also ensure that we position our business in the way that would be of utmost benefit to us.

Also, the detailed data we would get from the market research will help us not only to attract the customers but also to allow us compete favorably against competitors that are either new or already established.

In order to ensure that we get the correct information from our conducted market research, we will deploy several strategies such as asking far away concession stands how they were coping with competition close to them and what strategies they have deployed in order to ensure that they stay on top and have a competitive advantage over their competitors.

We will also watch how our nearby competitors run their business and how they tackle certain issues that might likely crop up.

To ensure that we conduct an accurate market research, we intend to engage the services of a reputable marketing consultant that not only understands the market but what marketing strategies would best fit our concession stand business. The strategies that would be proffered for us by this expert will see us winning a large percentage of the available target market here in Sherrill Blvd, Knoxville – Tennessee.

To ensure that our business continues to grow and sustain itself through increase in sales, we will ensure that we empower our marketing and sales team to not only draft effective marketing strategies, and create new markets for our concession stand business but we will empower them to be enable to deliver on corporate sales and marketing goals.

In summary, we will adopt the following marketing and sales strategy at Jess’s Unit Concession Stand in order to sell our wide range of food products;

• Throw a mind blowing launching party in order to generate interest and increase awareness about our business
• Ensure that we are listed in offline (yellow pages) as well as online directories
• Engage in direct marketing and sales
• Use our various social media platforms such as Facebook, Twitter, Instagram and Snapchat to market our concession stand business and increase sales
• Advertise our business in local newspapers as well as on radio and television stations here in Tennessee
• Encourage our customers to help refer our business to their colleagues, friends, and family members

11. Publicity and Advertising Strategy

Having the right publicity is very crucial to our business and so in this regard, we intend to ensure that we apply the right publicity strategies that will not only make us stand out in the industry, but will also penetrate the target market and allow us gain a huge share of our target market whilst positively promoting our brand to our existing and potential customers.

To however gain much more publicity than we would be able to achieve on our own for our concession stand business, we intend to hire a publicity consultant who not only have the right knowledge about this industry but is also reputable with giving businesses such as ours the certain strategies aimed at ensuring the business becomes a leader to be reckoned with.

These strategies will ensure that our brand is positively and effectively communicated. Below are the publicity strategies we intend to engage in to promote and advertise Jess’s Unit Concession Stand Business;

• Ensure that we pass out our handbills and fliers at certain strategic locations
• Use relevant social media platforms like Facebook, Twitter, Instagram and Snapchat to actively promote our concession unit business
• Position flexi banners in various strategic locations here in Sherrill Blvd, Knoxville – Tennessee so as to increase the awareness about our concession stand business
• Ensure that our trailers are well branded with our logo and contact information and that our employees always wear our customized tee-shirts
• Sponsor a local sporting activity as this would increase the awareness for our concession stand business
• Write a monthly column for the local newspapers highlighting facts about the concession stand business

12. Our Pricing Strategy

Deciding the prices that will be attached to the different products and services we intend to offer will depend on a whole lot of factors, such as the size and packaging, our overhead and running costs, our location and what our competitors are offering as well. While there might not be any need to carry out a detailed strategy on how we intend to fix our prices, we will ensure that we try to make our products affordable without causing a price war.

In order however to increase awareness for our products and attract the customers we might need to our concession stand, we intend to offer a discount in the prices that we will sell our products and offer our services. Because of this decision, we intend to put in strategies that will allow us attract and encourage people to buy from us even though we might run on a low profit margin for the defined period.

• Payment Options

Jess’s Unit Concession Stand Business will ensure that there is a payment policy that covers all the different preferential payments that our client will require in order to conveniently do business with us. Therefore, the payment options we intend to use to run our business and that will be available in every outlet includes;

• Payment by cash
• Payment via Point of Sale (POS) Machine
• Payment via Credit Card
• Payment via check
• Payment via online payment portal

In view of the above, it should be noted that we carefully chose payment options that will not be only convenient for our business and clients but will run without hitches of any sort.

13. Startup Expenditure (Budget)

Every business requires capital in order to start up; and the capital gotten usually goes into purchasing the bulk of items that will be needed in starting the business and running it successfully. Therefore, the bulk of what we will spend our start-up capital on will take a huge part of our capital.

We would be purchasing a trailer in which to do business in, use part of the capital to pay employee salaries and utility bills for at least 6 months. Therefore, the bulk of what we would spend our capital on are;

• Total fee for registering business in the United States of America – $750
• Obtaining vendor’s license, location seller’s permit, accounting software, and several other legalities – $1,250
• Cost of hiring a business consultant – $1,000
• Insurance coverage (general liability, workers’ compensation, property liability) – $3,000
• Cost of start-up inventory (food products, straws, ketchup, mustard, cotton candy machine, warming units, grill, microwave oven) – $50,000
• Other start-up expenses (computer, printer, cell phone, packaging materials) – $10,000
• Storage hardware (bins, shelves, racks) – $3,000
• Marketing promotion expenses (concession launch grand opening promotional activities as well as general marketing promotion activities) – $3,000
• Operational cost for the first six months (salaries of employees and payment of utility bills) – $100,000
• Cost of purchasing two trailers for concession stand – $60,000
• Cost of launching a website – $500
• Cost of throwing a launching party – $3,500
• Miscellaneous – $4,000

From the above analysis, we would need an estimate of $240,000 in order to successfully start-up and run our concession stand business successfully here in Sherrill Blvd, Knoxville – Tennessee. It should be noted that a huge part of the capital will go into paying employees and utility bills for at least six months, buying the various equipment we would need as well as purchasing two trailers with which to run our business.

Generating Funding / Startup Capital for Jess’s Unit Concession Stand Business

Jess’s Unit Concession Stand business is a business that is fully owned and operated by Mrs. Jessica Parker. Jessica who has always had the dream of running the concession stand business is not willing to take on external investors in order not lose any stake of her business, which is why she is restricting the sourcing of her start-up capital to just three sources.

Therefore the three areas where start-up will be generated are;

• Generate part of the start-up capital from personal savings
• Source for soft loans from husband and close friends
• Apply for loan from bank

N.B: Mrs. Jessica Parker was able to generate the sum of $30,000 from her personal savings, while she got the sum of $45,000 from her husband, Mr. Michael Parker and close friends. She is at the final stage of obtaining the sum of $165,000 from the bank. All the necessary papers and documents needed to approve the loan have been signed and the money will hit the account before the end of the month.

14. Sustainability and Expansion Strategy

Ensuring that we sustain and expand our business into becoming the force we intend it to be and also making the business pay for itself is very vital, and like any other business, we have laid down strategies that we intend to follow strictly in ensuring that we achieve our sustainability and expansion plans.

Some of the factors we intend to implement in achieving this purpose includes providing quality product and services to our different customers, building the best business structure and also ensuring that we retain a high number of our customers.

Providing quality products and services is a must for us as this is the core reason why we started this business. We will ensure that all the food products that our customers buy from us are of the highest quality.

This is because we know how important it is not to cut corners when it comes to food matters and so to preserve and cement our status as industry leaders, we intend to hire a food quality inspector that will ensure that all that we produce go through the highest available standard laid down by regulatory authorities and aided by our own core policies.

Building the best business structure is very important to us and as such we are willing to go the extra mile in ensuring that we hire professional and competent employees that not only understand the industry but are also committed to ensuring that they help us attain out intended goals and objectives because they strongly believe in our core values as a company.

We will ensure that not only will our employees receive high quality training continuously to help them better at their jobs. We will also ensure that our employees are well paid so as to also continue to motivate them in putting in their best for the business.

Finally, due to the fact that we value our customers, we intend to ensure we treat them well. We will sometimes give special recognition to our customers who always come back and will give discounts to those who bring a customer with them to buy from our concession stand. We believe that carrying out these different measures will go a long way into ensuring that we are able to sustain our business and eventually expand it.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Conducting feasibility studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress
• Purchase of trucks: Completed

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• Bakery Business Plan [Sample Template]
• Bottled Water Distribution Business Plan [Sample Template]
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• Dessert Bar Business Plan [Sample Template]
• Duties & Job Description of a Concession Stand Worker

Food and Beverage Business Plans

Bakery business plans.

• Delicatessen and Bakery Business Plan
• Dessert Bakery Business Plan
• Specialty Baker Business Plan
• Bakery Business Plan

Bar & Brewery Business Plans

• Bar and Tavern Business Plan
• Brewery Business Plan
• Hookah Bar Business Plan
• Karaoke Bar - Bowling Alley Business Plan
• Microbrew Bar Business Plan
• Nightclub Business Plan
• Nightclub Saloon Business Plan
• Nightclub, Dance Classes Business Plan
• Singles Bar Business Plan
• Sports Bar Business Plan
• Microbrewery Business Plan
• Wine Store Business Plan

Catering & Food Truck Business Plans

• Catering and Ballroom Rental Business Plan
• Catering Company Business Plan
• Food Preparation Business Plan
• Food Truck Business Plan

Coffee Shop & Cafe Business Plans

• Cafe Bistro Coffeehouse Business Plan
• Coffee Kiosk Business Plan
• Coffee Roaster Business Plan
• Coffee Shop Business Plan
• Coffeehouse Business Plan
• Convenience Store Cafe Business Plan
• Internet Cafe Business Plan
• Religious Coffeeshop Business Plan
• Sports Equipment Cafe Business Plan
• Tea Room Business Plan
• Coffee Distribution Business Plan
• Coffee Export Business Plan

Restaurant Business Plans

• Bed and Breakfast - Caribbean - Business Plan
• Bed And Breakfast Business Plan
• Bed and Breakfast Inn Business Plan
• Bowling Entertainment Center Business Plan
• Deli Restaurant Business Plan
• Ethnic Food Restaurant Business Plan
• Fast Food Restaurant Business Plan
• Fine Dining Restaurant Business Plan
• Franchise Sandwich Shop Business Plan
• Healthy Restaurant Business Plan
• Italian Restaurant Business Plan
• Mediterranean Restaurant Business Plan
• Mexican Restaurant Business Plan
• Movie Theater Restaurant Business Plan
• Organic Restaurant Business Plan
• Pasta Italian Restaurant Business Plan
• Pie Restaurant Business Plan
• Pizzeria Business Plan
• Pizzeria Franchise Business Plan
• Sandwich Restaurant Business Plan
• Steak Buffet Restaurant Business Plan
• Steak Restaurant Business Plan
• Themed Restaurant Business Plan
• Fast Food Service Business Plan
• Small Restaurant Business Plan

Specialty Food & Beverage Shop Business Plans

• Butcher Shop Business Plan
• Dinner Theater Business Plan
• Ethnic Food Import Business Plan
• Frozen Custard Shop Business Plan
• Convenience Store Soda Fountain Business Plan
• Gourmet Food Store Business Plan
• Organic Food Store Business Plan
• Pizza Delivery Business Plan
• Shaved Ice Beverage Business Plan
• Ice Cream Shop Business Plan

Wholesale Food & Beverage Business Plans

• Agriculture Fruit Farm Business Plan
• Hydroponics Farm Business Plan
• Nonprofit Food Bank Business Plan
• Pasta Manufacturer Business Plan
• Produce Farm Business Plan
• Salsa Manufacturer Business Plan
• Wholesale Food Business Plan
• Wholesale Food Manufacturer Business Plan
• Wholesale Juice Business Plan

Food and beverage industry overview

The food and beverage industry includes all businesses involved in the production, distribution, and sale of food and drinks.

The global food and drink market is expected to grow at an annual rate of 11.9%, reaching a market volume of $3.8 billion by 2027. This increase sharply contrasts the declining industry performance over the last three years.

Contributing factors to this performance are:

• Expected ease of inflation over the next year.
• Continued innovation in beverage and grab-and-go options.
• Increased interest in health-conscious options.
• Lifestyle changes as consumers increase travel and return to the office.

Additionally, the increased adoption of app-based and eCommerce purchasing options will continue to fuel discretionary spending in this category. Portable eating, tech-based purchasing, and alternative health and wellness products or services all show great promise for new entrants.

How to start a food and beverage business

To start a food and beverage business, you need to focus on the following:

1. Identify an idea that meets current demand

Identify your target market and potential competitors. Then, develop a unique product or service that serves a specific need—such as a particular cuisine, dietary need, or a unique dining experience.

2. Write a business plan

Create a business plan that thoroughly explains your business model, operations, pricing strategy, and financial projections.

3. Handle health, safety, hygiene and legal compliance

Food and beverage is a highly regulated industry with additional legal, health, and safety requirements. You must develop strict health and safety standards, prepare a staff training plan, and apply for permits or licenses relevant to your food or beverage offering.

4. Operations and relationships with suppliers

Establish relationships with reliable suppliers to acquire consistent quality ingredients. Focus on implementing an effective inventory management system that helps minimize waste and unnecessary expenses.

5. Location, layout, and staffing

Purchasing behavior and workflows are rooted in your business location and how your business is presented. Carefully choose a location and layout that fits your customers’ expectations and provides a healthy working environment for your employees.

Then, focus on training to ensure quality service, adherence to safety protocols, and the representation of your brand values.

6. Startup costs and financial management

Hefty upfront investments can be needed to start a food and beverage business. Kitchen equipment, menus, signage, POS systems, and mobile ordering technology scratches the surface.

You’ll likely be operating on thin margins, making effective financial planning necessary early on. Take direct inventory of what it will cost to start and run your business for the first year. Consider if you need funding and put a system in place to forecast and review your performance regularly.

7. Marketing and branding

You will have plenty of competition as a food and beverage business. Every restaurant, big brand, delivery service, grocery store, and mini-mart is a potential alternative.

So, don’t sleep on your branding and marketing efforts. Remember your target market, choose the proper channels, and develop a memorable visual identity that fits your mission.

For more on starting a business, check out our full selection of startup resources.

How to write a business plan for a food and beverage business

Here are some specific sections and information to focus on when writing a business plan for a food, beverage, or restaurant business.

Market analysis

The food and beverage industry is a highly competitive market with established competition and a steady influx of new entrants. Thoroughly document who you will be competing with, how you are different, and your ideal customers. This information will influence everything else about your business.

Business model

You’ll notice a trend through the rest of these, but you need a detailed description of how you will make money. As mentioned before, food and beverage businesses often operate on incredibly thin margins.

You need to be sure that your revenue streams make sense for the market, can consistently bring in cash, and will be sustainable long-term.

Menu and product offerings

Specific to this industry, you must cover what you offer and provide a sample menu or product list. It should directly relate to the interest of your clientele and showcase what you offer.

Describe your location, including a layout of your store or restaurant and details for how your business will operate—how you will work with suppliers, specific workflows, equipment needs, and staffing.

Focus on demonstrating quality and efficiency when outlining your operations, and don’t forget to revisit it as you run your business.

Financial projections

Provide detailed financial projections to map out your revenue and expenses. At a minimum, cover startup costs, break-even analysis, profit and loss forecasts, and cash flow statements.

Include any assumptions behind your projections and map out funding needs if you intend to pursue a loan or other investment.

You can use any of our food, beverage, or restaurant sample plans to ensure you cover the right information in your plan. For a detailed overview, check out our complete business plan outline.

What is an example of a food and beverage business?

Food, beverage, and restaurant businesses include:

• Agriculture and food production
• Food processing and packaging
• Alcoholic and non-alcoholic beverage production
• Restaurants
• Food transportation services

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How to Start A Food Stand Business

• Small Business
• Types of Businesses to Start
• Starting a Food Business
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Ideas for a Food Cart Business

How to start a diner business, how to have a shaved ice stand.

• How to Sell Food at Street Fairs
• Ideas for a Concession Business

Get in on the popular food stand trend with a business that provides customers the convenience of having their favorite foods right outside their offices or neighborhoods. Food stands have lower overhead costs than traditional restaurants and the option of changing locations. You can provide tasty food at a friendly price and have the freedom to move to a new location if business doesn't work out for you in your current spot.

Level of Mobility

There are different levels of portability for a food stand, so examine your options:

• A push cart  is a small, manually pushed cart that allows you to do only limited preparation of food. Popular examples of this type of food stand are hot dog and ice cream carts. Their small size allows you to move through areas, such as parks, where there is a lot of foot traffic.
• Food trucks have been modified to include a small kitchen. Popular examples of this include the Grilled Cheeserie in Nashville, Tennessee, which sells a variety of grilled cheese specials and the Kogi BBQ truck in Los Angeles, which sells fusion Korean tacos. A food truck allows you to move farther between locations such as between different food festivals or office buildings.
• A kiosk  is a fixed location. You can find kiosks in places such as festivals and farmers markets. They require more setup time to build, but because of their semifixed nature, you can better personalize your food stand with better cooking equipment and decorations. Because they aren't mobile, choosing a good location is critical. 

Legal Requirements

The types of licenses and permits that you need for your food stand will vary depending on where you run your business. Usually, your stand must be certified in all the cities and counties where you serve food. If you only provide prepackaged foods such as popsicles, the requirements are less stringent because you aren't required to get a food handler's permit. If you handle food, even if it is just scooping ice cream, you are required to have a food handler’s permit.

In some locales, such as Dallas, Texas, you cannot sell food that is not meant for immediate consumption because it is potentially hazardous. Potentially hazardous food is defined as food that can spoil easily such as dairy products. In addition, you need a food service establishment permit, a general business license and a food safety permit. The places where you plan to sell food must be zoned for food service.

For example, in California, you need to contact the local city hall to confirm zoning. You must display your permits in an area that is readily noticeable and renew them yearly.

Know Your Market

There are several factors to consider when you are deciding the type of food you will provide in your open food stand. For example:

• What types of food are popular in your area?
• What do you know how to cook?
• What types of events do you plan on setting up at?
• How much time do you want to spend with food preparation?
• Is the food easily portable for your customers?

Perfect Your Recipes

After you decide on the type of food, test your recipes to supply the best tasting food possible. For example, Mo Ono Hawai`i, a Hawaiian acai bowl food truck, developed its recipes based on taste. The owner kept on adding and subtracting ingredients until the flavor was perfected.

Seasonality Is Important

Check with your city, county or state for local fairs and festivals. Use websites such as FestivalNet to keep an eye out for the big food festivals taking place in the U.S and your state. Another great place to set up is in front of bars and nightclubs. Two Girls One Shuck, a “full amenity traveling oyster bar” located in New Orleans, is a regular hit in front of their neighborhood bars.

Have an Attractive Food Stand

Your food stand expresses your brand and should have an eye-catching design on everything including your napkins, food containers and stand. For example, the Grilled Cheese trucks in Los Angeles are big and yellow, just like grilled cheese. According to "Food Truck Business," a book published by Entrepreneur Magazine, the days of a basic food stand or truck are gone. It is important to distinguish yourself with an attractive design.

Marketing Your Food Stand

Launch a promotional blog or website to show your menu, keep your customers up to date, announce your planned locations and times, and to show pictures of events you have been to. Hand out samples to passersby to encourage new customers. Advertise on social media platforms such as Facebook and Instagram and in local newspapers.

• CNBC: The 10 Most Popular Food Trucks in America
• Chicago Tribune: White Sox Food Truck Dishing Out Free Samples
• Consider buying liability or product business insurance for your food stand. Doing so will help protect your personal and business assets, should a customer have an adverse reaction to something they eat and take legal action against you.

Michael is a writer in various subjects. He is a mechanical engineer and freelance writer, having earned a Bachelor of Science in Mechanical Engineering from Washington University in St. Louis. His articles have appeared mostly online.

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How to Start a Food Business: A Step-by-Step Guide

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For many food-lovers, the ultimate dream is to open up their own food business. What many people don’t realize in the beginning is that starting a food business is no easy feat. There’s a lot of business operational skills that are necessary to get started.

But the steps below can help you understand what you'll need to start a food business, and what you should consider before you jump in.

How to start a food business in 9 steps

Step 1: assess your skills.

If you’re reading this article, we can assume that you have a food business idea in mind that you’re interested in starting. That’s great! While interest is the number one step in starting a business, you also need to take a good hard look and assess your skills and assets before jumping into starting a business.

Passion can get you a long way, but when it comes to how to start a food business you’re also going to need hard work and business smarts. While many first-time business owners don’t know everything off the bat, they know how to seek out resources for help when they bump into something they don’t know how to do or don’t understand. That’s a lesson you should learn quickly.

While much of how to start a small food business consists of concrete steps such as choosing your business structure and finding funding, there’s also the soul-searching question: Are you willing and capable to do this?

Before you start, take a moment to write down your strengths, consider your support network, and brainstorm your resources—better yet, research what resources are available to you.

Operating a food business means you’ll need to grapple with:

Hiring and firing employees

Buying from suppliers

Creating a menu

Real estate

Purchasing equipment

And so much more...

With that debate over with, it’s time to talk about the more nitty-gritty, concrete details of how to start a food business.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Step 2: Create a business plan

A business plan can have multi-fold benefits for your small food business. This is a great way to get your thoughts and plans on paper, which can be useful for you to refer back to you during the process of starting and operating your business. A business plan can also be beneficial if you’re looking for funding to start your food business.

SCORE offer great resources to help you write a business plan for your food business. It can seem intimidating to make one, but if you’re researching how to start a food business, it’s likely that you already have a lot of great thoughts to contribute to your plan. Below are a few of the steps you’ll need to take while creating a business plan.

1. Create a business budget

One of the most important parts of your business plan, especially if you’re seeking funding, is the business budget.

A business budget will include looking at all the costs you’ll need to cover to begin operation of your business, what funds you’ll need to operate the business once it’s up and running, and a more long-term look at how your business will make money and how much money you expect to make.

A few examples of the costs you’ll incur and what you need to consider while starting a food business include:

What type of food business you’re starting

Cost of employees and management team

Initial investment in food product

Design for a physical space

2. Study your competitors

As you’re putting together your business plan, you need to start looking at and assessing your competitors. The food industry is very competitive and many markets are saturated. Before you go any further in starting your small food business, you need to know who else is out there and what they’re doing.

As you’re finding your competitors, make sure to be assessing what they do well and where they’re lacking. That will tell you where there’s a hole that you can fill with your business.

This is also a great time to be looking at prices and assessing the cost of doing business and the reality of how much money you’ll be able to make.

3. Find a hole in the market

The ideal situation for starting a food business is to find a hole in the market. Where is there customer desire that no one else is filling? And just because no one is doing it, doesn’t mean there’s customer desire—to turn a profit, customers have to want it and be willing to buy it.

Finding a hole in the market will help you to decide what kind of food you want to sell and how you want to sell it. There are a variety of options to choose from when it comes to how to sell your food including:

Meal delivery

Baked goods sold to other food establishments

In-home food business

Wedding and special event catering

4. Choose a concept

When starting a food business, it’s important to decide what type of food business you want to have. The main options include: a brick-and-mortar restaurant, a food truck, and a home-based catering business.

Each of these options is a viable way to start and operate your business. You might choose to start with one type of operation in the hopes of moving to another one eventually. A food truck and home-based catering business both have complications, but tend to require less capital to get started than a full-fledged brick and mortar restaurant.

Step 3: Set up your business

Once you’ve studied your market, you know where there’s a hole that needs to be filled, and you’ve taken some time to create a business plan, you’re ready to take the first steps toward starting your food business.

1. Choose a business entity

The first step in setting up your food business is to choose a business entity. There are a few different choices and depending on your circumstances, one or the other will be right for your business.

The most common business entity for small food businesses are sole proprietorships, LLCs, and co-ops. Other business entity options includes partnerships, S-corporations, and C-corporations.

Sole proprietorship

One of the most straight-forward business structures available is the sole proprietorship. While a sole proprietorship is simple (and popular among food establishments), it’s also limited in protection. If someone gets sick eating your food and wished to do so, instead of suing your business, they’d have to sue you—and they could go after your personal assets as compensation.

An LLC is one step up from a sole proprietorship. An LLC or limited liability corporation is a legal business entity that separates the business from the owner. An LLC limits a business owner’s personal liability for the business. An LLC also provides businesses with tax efficiency and remains uncomplicated as to ownership structure, so it’s ideal for a food business owner who wants to be somewhat protected, but still have some flexibility when it comes to paying taxes.

Cooperative

A cooperative, which is more commonly known as a co-op, is a business structure that is formed and owned by multiple people. Each member or owner of the business owns a portion of the business. Co-ops are one of the most collaborative business types available and are very common among food operations, especially food production facilities, grocery stores, and farmers markets.

Choosing the right business structure for your future food business can be confusing and initially seem complicated. But, if you start your business and decide you’ve chosen the wrong structure, you can certainly change it. If that sounds like a headache, though, you can consult with a business attorney to help you decide which structure is right for your business.

2. Register your business

If your business is going to employ others, it’s recommended that you register for an EIN, or a federal employee identification number, from the IRS. If you apply online, you can get one in a matter of minutes. An EIN helps you get business loans, manage your taxes, open a business bank account, and more, so this step is highly recommended.

You’ll also probably need to register your business with the state you’re operating in. Rules for how to do this exactly vary by state, and even county, but generally this information can be found on your state’s Secretary of State website. You should do a business name search before registering your business to make sure your desired name isn’t already taken by another business in your area.

3. Register for all required licenses

One of the most important steps in starting a food business is to make sure that you’re legally licensed to prepare and sell food. There are many different certifications and licenses that are necessary for food businesses.

It’s also important to note that what licenses you need will depend upon what type of food establishment your opening, whether or not you’ll be selling alcohol, and where you’re located. Different local jurisdictions can have slightly different requirements for food establishments.

Here are some types of licenses and certifications you might need for your food business:

A food handling permit

A Certificate of Occupancy or CO for your restaurant

A liquor license or beer and wine license to sell alcohol

A food license to make and sell food out of your home

A resale license to be able to buy ingredients at wholesale

No matter what type of food business you’re starting, you’re going to need some permits and licenses. Your local government office should be able to help you figure out exactly which licenses you need for your type of business.

4. Get insurance

As a business that employs workers and has a physical location which hosts customers, you need certain types of insurance to make sure your business is covered in any situation. You might consider:

General liability insurance

Auto insurance for business vehicles

Workers’ compensation

Commercial property insurance

Mobile food vendor insurance

5. Separate your finances

No matter what type of business entity you’ve chosen for your business, it’s important to separate your personal finances from the business finances. This makes figuring out your taxes and expenses much easier.

When you start your small food business, simply start a second bank account for your business. This can be done with the institution you use for your personal banking, but if you want to switch things up, there are some newer banks allow you to open a business checking account online.

And, if you choose to, you can also get a separate credit card that’s used only for business purposes. If you use a business credit card , you’ll be able to build up your business credit (assuming you use it responsible and pay off your bills on time), which can ultimately help you secure a business loan down the line.

Step 4: Look for funding options

When you’re thinking about how to start a food business, one of the major concerns can be the funds you need to get started. The initial investment in a business can be costly and it can take months, even years, before a business is profitable.

To get started, many new food businesses ask for funding from investors, seek out loans, or ask for help from friends and family. Bank loans are one option for funding, though banks typically are hesitant to lend to first-time business owners. There are also alternate lenders you can look into.

1. Equipment loans

An equipment loan is a great option if you need to be expensive equipment for your restaurant or are looking at buying a food truck. An equipment loan is simple: You receive a loan to buy the equipment and the equipment serves as collateral. Meaning if you don’t pay back the loan, the equipment can be repossessed as payment.

This type of loan is easier to get than other types of loans.

2. Friends and family loans

If you’re starting up a food business, who better to get involved and help you out then your friends and family? If you’re saving up to get your business up and running, don’t be afraid to ask for help. Just make sure to write down a loan agreement with your lender and then to stick to it.

3. Line of credit

A line of credit is a fantastic option for someone starting a food business. A line of credit gives you access to a pool of funds. You can borrow from that fund and up to the limit of that fund anytime you need. This is a great option for a business that’s a little cash-strapped for short periods of time.

4. SBA microloan

For food businesses looking to start up a food truck business or for a restaurant that just needs a little extra cash to get going, there’s the SBA microloan. An SBA microloan is a loan of up to $50,000 that the Small Business Administration guarantees. A loan from the SBA is considered the best loan on the market due to its low interest rates and flexible repayment terms.

Step 5: Invest in product and tools

When it comes to how to start a food business, you need more than just cash and business entity to make your dream a reality: You need equipment, food supplies, and something to sell it all on.

1. Research suppliers

One of the most important relationships you form as a food business owner is with your suppliers. Your suppliers are the businesses who make sure you get the food and products you need to keep your business going.

If there’s a restaurant in your area that has closed recently, you might be able to buy their equipment or furnishings for cheap, or take on extra stock they had saved up. Your food can often be sourced locally and trade publications or professional organizations, like the National Restaurant Association, can be helpful.

Find trustworthy, reliable suppliers to make sure you’re always getting your supplies on time and for the best price. Where you source your food from can also be a selling point for your food business, since sustainable companies have become more attractive to customers recently.

2. Point of sale system

A point of sale system, or POS, is the modern version of a cash register. The POS is how your waitstaff takes down orders, charges customers, and receives payment from customers.

There are many restaurant POS systems available on the market that offer enhanced usability for your staff, including:

Square for Restaurants

TouchBistro POS

Lightspeed Restaurant POS

Loyverse POS

Some, like Square, can be great for mobile companies since you only need a card reader to do business if you have a compatible phone or tablet you can use. Others, like TouchBistro, are better for full-service restaurants that might benefit from a POS that also offers tools for customer and floor planning management. The best POS system for you will depend on your food business’s needs.

» MORE: Best POS systems for food trucks

3. Buy or rent necessary supplies

Before your restaurant can open the doors to customers, there are a lot of supplies you need to make sure the restaurant is outfitted to be inviting to customers, serving up good food, and making money for you.

Aside from your POS system, here are some examples of supplies you might need:

Kitchen appliances

Cold storage

Flatware and utensils

Furnishing for the restaurant

Cleaning supplies

Some of these you can buy in bulk, but depending on the mobility of your food business, you might want to consider renting equipment—which might work out cheaper for you. As an example, if you run a catering business, you might not need to own tons of flatware and utensils just yet. Renting on a case-by-case trial will save you money and help you understand what a practical order might be when you’re actually ready to buy.

Step 6: Hire staff

Depending on what type of food business you’re starting, you may or may not need help. But, even the smallest establishment usually hires an extra set of hands to increase production. Who you hire and how many people you hire will all depend upon your needs. For example, a food truck probably can’t fit many employees, but a large-scale restaurant will require more employees to keep the floor running smoothly.

Some examples of staff you might need include: delivery drivers, hosts, waiters, dishwashers, bartenders, and busboys. Make sure you factor hiring staff into your business plan, since you may be required to take on added costs, like purchasing workers compensation, for them.

Step 7: Set your pricing

One of the most important steps in how to start a food business is setting your pricing. Without the right price on your food products, it will be impossible to make money.

1. Do market research

One of the first steps in figuring out what you should charge for certain foods is to do market research. Go to your competitors to see what they’re serving, what their portion sizes are, and how much they’re charging.

This gives you a starting place to assess the right price for food, but it’s only a starting point. While it gives you an idea, it doesn’t give you insight into whether that business is making money or not.

You should also be mindful of emerging food trends and what that says about consumer priorities. For example, the wellness trends in food indicate that your business might do well if there’s a health-conscious market you’re able to tap into and you’re able to sell them on the health benefits of your food products.

2. Price out the cost of your product

While it’s not easy, it is possible to calculate the total cost of a dish. You’ll have to be mindful of all the tiny ingredients that go into a dish, including oil, seasonings, and garnishes. This can seem like a lot, but there are actually a number of formulas and measurements professional kitchens use to determine these figures, so be sure to study up.

Then, with a little magic and math, you’ll be able to price your product accordingly, so that you make a small profit from it, even when including the cost of labor to make, serve, and clean up the dish.

Step 8: Create an online presence

While you might think that a food business is all about food—and it is—you also need to get customers in the door and eating your food. The food industry is notoriously difficult to break into. For example, 85% of consumer packaged goods products fail within the first two years. One important step to avoiding that fate is establishing your online presence and nurturing your consumer base.

1. Social media

While food is all about the taste, many diners shop with their eyes. If you want to establish an online presence for your food business, one of the fastest ways to do that is through social media.

Instagram is a food business’s best friend. Post delicious-looking pictures of your food and customers will want to try it. Make sure you interact with consumers and encourage them to see you as a company that will be responsive to their needs.

While not every food business has a website, this can be a way to establish your credibility as a business. A website can be a place to post information for customers including menus, restaurant hours, and specials. There are a number of ways to build your small food business website, so it’s easier than ever to either sell products online or add helpful features like reservation widgets to your site.

3. Online review sites

While many a food business owner loathes review sites, it’s a necessary evil for those who have restaurants, catering businesses, and food trucks. According to a TripAdvisor survey, 94% of U.S. diners will consult online reviews before trying a restaurant. That’s the vast majority of diners. As a food business owner, you can hate the sites as much as you want, but you need to have a presence. Try offering a free perk to incentivize customers to leave reviews.

Step 9: Serve up delicious foods

When you’re thinking about how to start a small food business, the big draw is, obviously, the food. What you’ll cook, how it will taste to the diners, and what seasonal changes you’ll make to the menu. Owning a food business is only partly about the food, though—there’s also a ton of time spent on operating and managing the business. Study up to ensure success.

But, make sure you’re just as dedicated to serving up delicious foods!

Start Your Dream Business

Final thoughts

There are a wide array of food businesses you can start and competition will be tough. To help you get a leg up, make sure you consult these nine steps for starting a food business. If you pay attention to foundational steps, like creating a solid business plan and registering for all licenses you might need, you’ll put yourself in a good place for your food business to grow. So, refine that menu and get ready to feed the masses. With a little elbow grease and planning, there’s nothing you can’t do.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

On a similar note...

ZenBusinessPlans

100+ Sample Food Business Plans and Templates

Food generally is an essential consumable item. A lot of entrepreneurs these days are seriously on the lookout for profitable and trending food business ideas to start a new business. Choosing the right niche is the first and most important step for any business initiative.

Increasing population and desire to have easy access to food are the factors that create more opportunities in the food industry. Starting up a business is the best way to get out of the rat race and into being your own boss. But when it comes to the food industry, there are many things that can go wrong.

Even before the pandemic, restaurant owners were finding it difficult to fill chef spaces.  But since COVID became a worldwide problem, this situation has become worse. The shutting down of social places meant that long-time workers in the food business have swapped to new job roles.

Don’t let this doom and gloom put you off, though, as we have some amazing ideas to help you get past these struggles and create a successful food business in 2023! If you keep your business small before you try reaching for the stars, you will be more likely to push through those barriers.

Sample Business Plans for Food Industry

1. charcuterie business plan.

Charcuterie is a display of prepared meats paired with cheeses and plain vegetables on a traditional board. Charcuterie is the culinary art of preparing meat products such as bacon, salami, ham, sausage, terrines, galantines, ballotines, pâtés, and confit professionally. Till today, this has remained a popular way to feed guests on a budget for small parties or wine tastings, and a person that prepares charcuterie is called a Charcutier.

2. Food Truck Business Plan

We said we would talk about food trucks, and here we are! A food truck is the best way to get your meals and hot snacks to festival-goers, but you can also use them like a classic restaurant. Some people set up shop in a location, clamp their truck to the floor and buy benches for their customers to sit on.

You still have that fun alfresco feeling without having to pay for top restaurant prices. We suggest using a food truck if your concepts aren’t time-consuming. If you have a dish that takes a long time to create, then your customers will be less likely to stick around for their meal.

This is because trucks are considered a fast food option. Instead of a normal fast food restaurant, though, many customers expect a more exciting menu from a truck in comparison.

The burgers are more than just a burger; they have 5 extra ingredients that make your mouth water from just smelling it. You can afford to be more creative in a food truck, as you won’t have to pay the same licenses or permits. This means you can use more ingredients and charge the same price as a normal burger.

3. Nano Brewery Business Plan

In simple terms, a nano brewery is a brewery (plant) that produces a small amount of beer per time; it is a small-scale brewery that can’t be compared to conventional brewery plants or microbrewery plants and it is usually owned independently. Any entrepreneur that has some cash and brewing technique can comfortably start his or her own nano brewery business.

4. Religious Coffee Shop Business Plan

According to reports, 7 in 10 Americans drink coffee every week; 62% drink coffee every day, making it second only to water. There are over 24,000 coffee shops in the United States, with an average sell rate of 230 cups per day.

Truth be told, coffee has become a crucial part of a cultural revolution, and owing to some amazing trends, it seems that growth will continue. Churches, ministries, and entrepreneurs in the United States are beginning to leverage coffee’s popularity and are gradually turning it into an opportunity for outreach and faith development.

5. Cocktail Bar Business Plan

A cocktail bar is a bar or small restaurant where cocktails are the main drinks available; a characteristic feature of many standard cocktail bars is a wide selection of assorted cocktail drinks available by the glass. A cocktail is a mixed drink typically made with a distilled beverage (such as gin, brandy, vodka, whiskey, tequila, cachaça, or rum) that is mixed with other ingredients. If beer is one of the ingredients, the drink is called a beer cocktail.

6. Fruit Juice Shop Business Plan

A fruit juice bar, or fruit juice shop is a small, informal restaurant where juice and in most cases, smoothies are made and served to customers. Fruit juice is ideally 100 percent pure juice made from the flesh of fresh fruit or from whole fruit, depending on the type used.

7. Cold Storage Business Plan

A cold storage business is a commercial facility for storing perishable products such as fruits, vegetables, meat, fish, furs, etc. under controlled conditions for longer periods. Based on the storage conditions, cold storage may be classified into three categories – short-term or temporary storage, long-term storage, and frozen storage.

Available data shows that the U.S. cold storage market size was estimated at USD 15.84 billion in 2019 and is expected to reach USD 16.43 billion in 2020.

8. Funnel Cake Business Plan

A funnel cake shop is a business that bakes and sells funnel cakes. Please note that the name “funnel cake” was derived from the method of squeezing batter through a funnel in a circular pattern into hot oil to achieve a dizzying pattern of crispy-fried dough.

The funnel cake business is a niche idea in the cake and bakery industry and available statistics have it that the global bakery product market size was estimated at USD 203.8 billion in 2018.

9. Fig and Coconut Jam Business Plan

A fig and coconut jam production company is a niche jam, jelly, and preserves business that produces and sells fig and coconut jam. Fig and coconut jam can be used like other jams as a fruit spread for toast, scones, cakes, and other baked goods, and it can also be used as a condiment for savory foods.

10. Cotton Candy Business Plan

A cotton candy business is a business that makes and sells cotton candies most especially at children’s parties, parks, stadiums et al. Cotton candy, which is also known as fairy floss and candy floss, is a spun-sugar confection that resembles cotton. The U.S. candy market is expected to reach a value of USD 19.6 billion by 2025, according to a new report by Grand View Research, Inc.

11. Hot Dog Vendor Business Plan

A hot dog vendor business is a business that sells different types of hot dogs and drinks from a shop, cart, or food truck. Hot dogs are prepared commercially by mixing the ingredients (meats, spices, binders, and fillers) in vats where rapidly moving blades grind and mix them all together. This mixture is forced through tubes for cooking.

The market size of the Hot Dog and Sausage Production industry is $19.2bn in 2023 and the industry is expected to increase by 3.6 percent going forward.

12. Crepe Restaurant Business Plan

A crepe restaurant is a niche restaurant that serves crepes (pancakes) as its main menu. A crepe is a French pancake that is made with a thin batter containing flour, eggs, melted butter, salt, milk, and water. Crepes can be filled with a variety of sweet or savory mixtures. Savory buckwheat crepes are always served for lunch and dinner in a crepe restaurant while sweet crepes are for dessert or snack.

13. Food Hub Business Plan

A food hub business as defined by the USDA is “a centrally located facility with a business management structure facilitating the aggregation, storage, processing, distribution, and/or marketing of locally/regionally produced food products.

Food hubs also fill gaps in food system infrastructures, such as transportation, product storage, and product processing. Available data shows that there are about 212 food hubs in the United States and industry data indicates that local food sales totaled at least $12 billion in 2014 and estimates that the market value could hit $20 billion.

Before Starting a Food Business, Test your idea

First off, you should be testing your ideas before putting a deposit on a business loan. Finding the problems early on will stop you from diving into a money pit. Use our advice like a checklist to guide you through this testing phase, and be ready to receive criticism. Remember, you cannot improve or create a strong foundation if you ignore everyone’s advice.

a. Feedback From 3rd Parties

The main reason why people think about creating a food business is because their friends or family say they should. They drool over your stews, make heart-eyes over your steaks, and lovingly long for another bite. Well, in reality, your friends and family are probably boosting your ego or sugar-coating their reaction.

We aren’t saying they are lying necessarily, but they might ignore some of your poorer meals because they know you are trying your best. Your customers won’t be so forgiving. To make sure your friends aren’t saying you are better than you are, you need a true third party to judge your food tasting sessions.

You could ask your co-workers to take the plate and make an anonymous comment. If they are mostly positive, that’s great; you can then adjust your recipes, packaging, service standards in accordance with all the positive and negative feedback.

You could also talk to local companies in the same area of business as you. Ask them if your packaging is appropriate, if they have advice for a new business owner, and anything else that you are worried about. Doing this beginner networking is a great way to start a community too. Local businesses are normally more friendly than chains and will be happy to help you on your journey.

b. Perfect “One Food” Business idea At A Time

You might feel as though you need a whole menu of amazing food, but in reality, you have to remember that you are starting at the bottom. Having one fantastic idea and putting a lot of effort into it would be a more successful business venture than spreading your ideas too thin.

When it comes to testing, your test group may become overwhelmed if they are given too many options. It wouldn’t be uncommon for the group to start comparing dishes to each other rather than their normal experiences.

In the testing group, you want these “customers” to tell you if your ideas will make it, if they are good enough to be sold and if there is a problem that can be fixed. If they have a lot to look at, they will simply tell you which one is the best. Once you find the best variation of that one food product, you can then start to work on another.

c. Look After The “Other” 20% Of Your Online Food Order Customers

There are normally 3 types of customers in the food industry; the ones who enjoy your food enough to try it again another time or simply not dismiss it; ones who will absolutely love your food and will keep coming back; and those who like to try new foods on a whim.

If the first type of person doesn’t like your food, they will simply not return. If the second type of person has a bad experience, they will try again. If this second visit redeems the food, they will remain loyal, but if it doesn’t save their experience, they will either drop into the first type or not come back.

Depending on how good your business is, you might have either a large percentage of lovers and a low percentage of “it’s fine” ers, or it can be the other way around. However, around 20% of your customers will likely be the third type.

Going to restaurants and vendors or trying new sweets on a whim is a growing hobby for many people. The third type wants to be the first ones to experience this unique and potentially viral adventure. These people will likely make a review on whatever social media network they use, and this can either boom or bury your business.

These people will not hesitate to share their lengthy and detailed opinions about your business. Of course, you should always take these opinions with a pinch of salt, as a negative review on a blog often gets more traction than a positive one; however, you should take note of what they are saying. Pleasing these reviewers will make your business look good online, and it can help you create a big fan base.

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How to Write a Restaurant Business Plan

An overview of how to write a restaurant business plan for foodservice entrepreneurs, from concept and menu planning to kitchen design and marketing.

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Here’s the truth about starting a restaurant. According to a study by Cornell University , over 26% of independent restaurants don’t survive their first year and nearly 60% fail by their third year. That’s why creating a solid restaurant business plan is so important. It may give you an opportunity to put concrete structure around your thinking and assess your ideas from a higher viewpoint, before spending a single dollar.

Although there are no guarantees in life (and especially in business) with a little preparation, education, and mentorship, you can avoid many of the pitfalls that upend others. In this article, you’ll discover how to begin writing a restaurant business plan—and how you can get an education that may help you start your own foodservice business .

Define Your Business Concept

A business plan should start with a basic conceptual overview. Where did the idea for your restaurant or food business come from? And how is your idea unique compared to what else is currently in the market? Who is your target market, and what (in general) will you be serving them?

Think of the concept as the bird’s eye view of your business.

You may also wish to include a mission statement in this section. This will be a short sentence or two that outlines the value the business provides to customers and employees, and may set an inspirational objective. A good example is The Kitchen American Bistro in Boulder, Colorado, which has the following mission:

“We believe in the power of good food and good drink to connect people as family, friends and a community. The Kitchen remains committed to our mission of creating community through food.”*

Verbalizing the bigger picture as a stated mission gives your business depth beyond just making money. When you use it as a guiding principle, it will be reflected in your marketing, operations, and the attitudes of those who join your team.

Do a Market Analysis

Where will your proposed restaurant fit into the overall foodservice market? Is there a niche in your area that’s not being served? Or will you be competing with established businesses? And if so, how will your concept stand out?

Everything from local factors like lack of competition to nationwide factors like a booming economy can contribute to your restaurant’s success or failure. A market analysis can help you to assess both the challenges and opportunities that you’ll face when you open your doors.

Food Entrepreneurship at Escoffier

Dive into greater detail on many of the topics covered in this article in Escoffier’s Food Entrepreneurship programs . The Culinary Entrepreneurship course specifically explores topics like business planning and begin writing a business plan.

Describe Your Service Style

Will your restaurant be fine dining? Counter service? An all-day café with servers? A buffet? A beer garden?

Make sure it’s clearly defined. If your service style is simple, you may include this in your concept section. But if it’s more complex, it may warrant its own section in your business plan. For example, perhaps you plan to offer elevated table service with a number of thoughtful touchpoints. You’ll want to be very clear about what that will look like.

Your service style will directly impact your staffing levels, which will affect your labor costs. That’s why it’s vital to include this information and the associated cost estimates in your business plan.

A full-service waitstaff like this will be more costly than a lean counter-service staff.

Build Your Sample Menu

A great restaurant menu is specifically designed to appeal to your target market, while staying true to your concept. Even if you’re not 100% sure what your final restaurant menu will include, create a sample version for your business plan.

The menu is your product, and it will impact everything about your restaurant from food costs (typically between 25% and 35% of the menu price) to the number of cooks you’ll need to the layout of your kitchen.

You should also calculate pricing for this menu to verify if it can be served at a price point that fits with your target demographic. A family-friendly spot with $20 burgers, for example, is creating a disconnect between its target market and its menu price.

The Science Behind Menu Design

Creating and designing a menu can be complex. You have to balance the art of making great food with the practicalities of food and labor costs. In Escoffier’s Food Entrepreneurship programs, students may explore topics like visual design and price analysis.

Determine Your Facility Design and Location

Once you have a sense of your concept and menu, you can begin to plan what your restaurant should look like and where it will be.

The kitchen is the most expensive part of a restaurant’s total cost. And every square foot taken up by cooking space is a square foot that can’t hold customers. Industry wisdom states that a kitchen should be between 25% and 30% of the total restaurant space—including storage. So you have to plan your kitchen as efficiently as possible.

In the dining room, you’ll need tables and chairs, possibly a host stand, and maybe a bar. You may have plans for art and custom light fixtures, or a high-end tap system for draft beer. Renderings from your architect and/or interior designer can help to show what you’re envisioning.

Include all of the equipment, furnishings , and supplies that you plan to purchase for both the back of house and front of house, so you can estimate the cost of building out your restaurant.

You will also need to decide where your restaurant will be. This will impact rent, guest parking, foot traffic, and even your operating hours. If you’re in a business district, for example, you may choose to only be open for lunch.

Choose Your Management Team and Determine Staff Needs

A great plan without a great team is likely to fail. An important part of your business plan is determining the various roles and responsibilities for your managers and employees.

Depending on the size of your business, your plan may include an organizational chart that explains which position is reporting to whom, how many people you will be hiring, the main skill sets of the management team, and the unique things that each employee brings to the table.

You can also call out any special achievements or accolades for the managers you plan to bring on board, like a general manager with a great deal of experience or a chef with impressive certifications .

If you attend culinary school or enroll in a food entrepreneurship program, some of those team members could even be former classmates. Business is ultimately about the relationships between people, and culinary school is a ripe environment to build those critical connections that may serve you down the road.

Forecast Your Costs, Revenue, and Potential Profit

Anyone looking to launch a foodservice business probably wonders how much the whole endeavor is going to cost, and what the return on investment might be. If you’ve gone through all of these steps, you’ll be well on your way to better awareness of the fundamental costs of business and what you can do to help guide it toward being a profitable venture.

Your business plan should detail the financing that will be required to get your business up and running, the associated costs of marketing and staff, and variable costs such as ingredients. Your business plan should be sufficiently detailed to estimate the profits and expenses for the first few years of your business, in order to help ensure that your plan is economically feasible.

Keeping An Eye On Restaurant Profits

Restaurant profit margins are relatively low compared to other businesses. A key course in Escoffier’s curriculum for the Food Entrepreneurship Associate Degree explores managerial accounting concepts, culinary math, and an overview of basic business accounting transactions such as how to read financial statements. It may explain the practical application of these concepts to the hospitality industry and how to manage costs for long-term profitability.

Create a Marketing Plan

The first step in restaurant or food truck marketing is to identify who your ideal customer will be. Are they looking for date spots, family-friendly restaurants, or group dining? What do they like to eat? What are their wants and needs? Will you be targeting specific dietary profiles, like vegan , paleo, or gluten-free?

Once you know who your customers are, how will you reach them? You will probably need to start a website, including your location, hours, and menu. You may also choose to promote your restaurant on social media , sharing photos and videos on platforms like Twitter, Instagram, TikTok, and Facebook. You can also work with local food influencers , leveraging their larger platforms to spread the word about your new restaurant.

Share photos taken by your customers to connect with your audience.

While your marketing plan is sure to change and evolve over time, it’s wise to have a general strategy in place before you open your doors so you can have a successful grand opening.

Marketing 101

Escoffier’s Food Entrepreneurship programs include coursework in food styling and photography , social media, and hospitality marketing. Graduates could be prepared to identify their ideal customers and reach them for better visibility and higher sales.

An Entrepreneurial Education Can Mean Being Prepared

While it is obvious that you need a passion for the world of food and drink before launching a food service business, starting any venture is difficult without mentorship from professionals who have real-world experience.

In Escoffier’s Food Entrepreneurship programs , students can work with skilled experts from the culinary world who may help them avoid the pitfalls common to new business owners. A blend of culinary theory and practical, hands-on business operations experience can prepare students for the intricacies of foodservice, with a steady eye on profitability.

To learn more about what students can expect in our Food Entrepreneurship programs, get in touch with our Admissions Department . They can answer your questions and help you develop a plan to get closer to your dreams of business ownership.

Enjoyed this article? Here are a few more you may like.

• How to Start a Restaurant with Little to No Money
• Ghost Kitchens & Ghost Restaurants: What Are They and How Do You Start One ?
• The Complete Guide to Starting a Home-Based Catering Business

*Information may not reflect every student’s experience. Results and outcomes may be based on several factors, such as geographical region or previous experience.

This article was originally published on June 29, 2020, and has since been updated.

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Hot Dog Cart Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their hot dog cart businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a hot dog cart business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Hot Dog Cart Business Plan?

A business plan provides a snapshot of your hot dog cart business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Hot Dog Cart

If you’re looking to start a hot dog cart business, or grow your existing hot dog cart business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your hot dog cart business in order to improve your chances of success. Your hot dog cart business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Hot Dog Cart Businesses

With regards to funding, the main sources of funding for a hot dog cart business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for hot dog cart businesses.

Finish Your Business Plan Today!

If you want to start a hot dog cart business or expand your current one, you need a business plan. Below are links to each section of your hot dog cart business plan template:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of hot dog cart business you are operating and the status. For example, are you a startup, do you have a hot dog cart business that you would like to grow, or are you operating a chain of hot dog carts?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the hot dog cart industry. Discuss the type of hot dog cart business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of hot dog cart business you are operating.

For example, you might operate one of the following types of hot dog cart businesses:

• Hot Dog Kiosk Cart: this type of hot dog cart business is operated via kiosk carts, which are gas-powered with low-heat burners and have plastic awnings or umbrellas that the vendor stands under.
• California Hot Dog Cart: due to strict regulations, hot dog carts operating in California must have four sinks (as opposed to the usual two), refrigerators, thermometers and sneeze guards. This makes the carts more expensive than typical kiosk carts.
• Hot Dog Vending Trailer: this type of business operates out of a trailer as opposed to a cart. The trailer is hitched to a car or truck to be relocated, and it is totally enclosed, so it can operate year round. Because there is more space inside, there is room to prepare and store other types of food. Trailers typically come with coolers for beverages as well as propane-fueled grills.
• Hot Dog Food Truck: this type of hot dog cart can hold more food and drink than trailers or kiosk carts. The truck portion cannot be separated from the cart portion.

In addition to explaining the type of hot dog cart business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, total number of hot dogs sold, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the hot dog cart industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the hot dog cart industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your hot dog cart business plan:

• How big is the hot dog cart industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your hot dog cart business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your hot dog cart business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: working professionals, students, tourists and event attendees.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of hot dog cart business you operate. Clearly, working professionals would respond to different marketing promotions than students, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most hot dog carts primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Hot Dog Cart Business Plan in 1 Day!

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other hot dog cart businesses.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes grocery stores, restaurants and food trucks or other kiosk carts. You need to mention such competition as well.

With regards to direct competition, you want to describe the other hot dog cart businesses with which you compete. Most likely, your direct competitors will be hot dog carts located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What types of hot dogs and other food or beverages do they sell?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide better hot dogs?
• Will you provide types of hot dogs or other food, toppings or beverages that your competitors don’t offer?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a hot dog cart business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of hot dog cart company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to hot dogs, will you provide vegan hot dogs, burgers, sodas or any other products?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your hot dog cart company. Document your location and mention how the location will impact your success. For example, is your hot dog cart business located in a busy retail district, business district, event district, university, park, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your hot dog cart marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your hot dog cart business, including performing inventory and purchasing, preparing hot dogs, selling hot dogs, transporting and maintainancing the hot dog cart.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sell your 1,000th hot dog, or when you hope to reach $X in revenue. It could also be when you expect to expand your hot dog cart business to a new location or city.  

Management Team

To demonstrate your hot dog cart business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing hot dog cart businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing hot dog carts, other food kiosks or restaurants, or successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you sell 1,000 hot dogs per month or per quarter? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your hot dog cart business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a hot dog cart business:

• Cart acquisition and build-out
• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your cart location permit or the menu of food and beverages you will sell.  

Putting together a business plan for your hot dog cart business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the hot dog cart industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful hot dog cart business.  

Hot Dog Cart Business Plan FAQs

What is the easiest way to complete my hot dog cart business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Hot Dog Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of hot dog cart business you are operating and the status; for example, are you a startup, do you have a hot dog cart business that you would like to grow, or are you operating a chain of hot dog cart businesses?

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Click here to see how Growthink’s professional business plan consulting services can create your business plan for you.

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Start a Vegetable Stand Business: Your Ultimate Guide

Thinking about starting your own business? A vegetable stand is a great option! Not only is it a fun and rewarding venture, but it’s also a great way to get outdoors and meet new people. Plus, you can sell fresh, local produce – something that everyone loves. Ready to learn more? Keep reading for the ultimate guide to starting your own vegetable stand business!

Table of Contents

What is a vegetable stand business, how do i find customers for my vegetable stand business.

A vegetable stand business is a startup that sells vegetables directly to consumers, typically at farmers markets or roadside stands. These businesses often source their vegetables from local farms and strive to offer customers fresh, high-quality produce. In addition to vegetables, some vegetable stands may also sell fruits, herbs, and other locally grown products.

While not as profitable as larger grocery stores, vegetable stand businesses can provide a steady income for small farmers and offer a valuable food shopping option for customers who prioritize freshness and supporting local agriculture.

However, these businesses must carefully manage their inventory and ensure they are legally permitted to sell their products in certain locations. Overall, operating a vegetable stand business requires both hard work and careful planning in order to be successful.

Why would I want to start a Vegetable Stand business?

A vegetable stand is a great way to get started in the food business. It requires a small investment and you can grow your business at your own pace. You can start with a small stand at a farmers market or roadside and eventually move into a brick-and-mortar location. Here are some benefits of starting a vegetable stand business.

Low cost of entry

A vegetable stand is one of the most inexpensive businesses to start. You can grow your own vegetables or source them from local farmers. You will need a small amount of money for marketing, signage, and permits.

Flexible hours

You can choose the hours that you work based on your lifestyle and family commitments. If you have young children, you may want to only work weekends. Or if you have another job, you may want to only work evenings and weekends.

Be your own boss

As the owner of a vegetable stand, you will be in charge of all aspects of the business. You will get to decide what vegetables to sell, how to price them, and how to market your business. This can be very satisfying for people who want to be their own boss.

Work outdoors

If you love being outdoors, a vegetable stand is the perfect business for you. You will get to work in the fresh air and sunshine (or rain!). And you will get to meet people from all walks of life who are looking for fresh, healthy food.

Starting a vegetable stand is a great way to get started in the food business with a low cost of entry and flexible hours. You can be your own boss and work outdoors while meeting people from all walks of life. If this sounds like the right business for you, then what are you waiting for?

How do I start a Vegetable Stand business?

A vegetable stand business is a great way to get started in the food industry. Not only is it a relatively easy business to start, but it’s also a great way to test out new products and market yourself to a wider audience. Plus, with the right location and some hard work, you can quickly build up a loyal customer base. Here’s everything you need to know about how to start a vegetable stand business.

Find the Right Location

The first step in starting any business is finding the right location. For a vegetable stand business, you’ll want to find a spot that’s highly visible and has high foot traffic. Ideally, you’ll want to set up your stand near a grocery store or farmer’s market. This way, customers will already be in the mindset of buying food when they see your stand.

Get the Right Permits

Before you can start selling your vegetables, you’ll need to make sure you have all the necessary permits. First, you’ll need a general business license from your city or county. Next, you’ll need to get a permit from the Department of Health permitting you to sell food. Finally, depending on what type of vegetables you’re selling, you may need to get a special license from the Department of Agriculture.

Stock Your Stand

Once you have all the necessary permits, it’s time to start stocking your stand! You’ll want to make sure you have a good variety of fresh fruits and vegetables available for sale. You should also consider offering other items such as honey, jam, or baked goods made with your fresh produce. By offering a wide variety of goods, you’ll be able to appeal to a larger number of customers.

Promote Your Business

Now that your stand is up and running, it’s time to start promoting your business! One of the best ways to do this is by creating a social media presence for your vegetable stand. Use platforms like Twitter and Facebook to post about new products or special deals you’re running. You should also consider passing out flyers or hosting events at your stand in order to draw attention from potential customers in the area.

Starting a vegetable stand business is a great way to enter the food industry with minimal overhead costs. However, it’s important to remember that success takes more than just setting up shop—you also need to promote your business and build up a loyal customer base. By following these simple tips, you’ll be on your way to starting a successful vegetable stand business in no time!

How much does it cost to start a Vegetable Stand business?

Starting a vegetable stand business is a low-cost way to get into the food industry. The average cost to start a vegetable stand business is between $100 and $1,000. This includes the costs of renting or leasing a space, buying supplies, and getting a license.

Renting or Leasing a Space

The first step in starting a vegetable stand business is finding a suitable location. Many vegetable stands are located at farmers markets, roadside stands, or in front of grocery stores. The cost of renting or leasing a space will vary depending on the location. Farmers markets usually have spaces available for rent. The cost of renting a space at a farmers market is typically around $25 per day. Roadside stands can be leased for around $100 per month. Grocery store locations can be more expensive, with some costing upwards of $1,000 per month.

Buying Supplies

The next step is to purchase supplies for your vegetable stand business. This includes items such as tables, chairs, canopies, coolers, etc. The cost of supplies will vary depending on where you purchase them and how many you need. However, the average cost of supplies is between $500 and $1,000.

Getting a License

The final step in starting your vegetable stand business is getting a license. Depending on your location, you may need to obtain a license from the city government or the state government. The cost of obtaining a license is usually around $100.

Starting a vegetable stand business is a great way to get into the food industry with low startup costs. The average cost to start a vegetable stand business is between $100 and $1,000. This includes the costs of renting or leasing space, buying supplies, and getting a license. With some hard work and dedication, your vegetable stand business can be up and running in no time!

Starting a vegetable stand business can be a great way to earn some extra income. But one of the most common questions we get from entrepreneurs is “how do I find customers for my business?” If you’re wondering the same thing, never fear! In this blog post, we’ll share three of the best ways to find customers for your vegetable stand business.

One of the best ways to find customers for your vegetable stand business is by setting up a stall at a local farmer’s market. Farmer’s markets are great because they attract people who are already interested in buying fresh, locally-grown produce. To find a farmer’s market near you, simply do a Google search or check out this website.

Another great way to find customers for your vegetable stand business is by setting up a stall at a local community event. Community events are often attended by people who are looking for new things to do and explore in their own backyard. To find community events near you, again, simply do a Google search or check out websites like Eventbrite.

Finally, another great way to find customers for your vegetable stand business is by reaching out to local businesses and organizations who might be interested in purchasing your produce. For example, if you have a surplus of zucchini, you could reach out to local restaurants and see if they’d be interested in using your zucchini in their dishes. To find contact information for local businesses and organizations, again, simply do a Google search or check out websites like Yelp and Foursquare.

So there you have it—three of the best ways to find customers for your vegetable stand business! We hope that this blog post has been helpful and that you’ll be able to put some of these tips into action in your own business.

About Jeremy Reis

Jeremy Reis is a serial entrepreneur from the Franklin, Tennessee area. Jeremy is the founder of multiple businesses and is the VP of Marketing for CRISTA Ministries. Jeremy has his MBA with a focus in Entrepreneurship from The Ohio State University.

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47 Massively Profitable Concession Stand Menu Ideas

Looking for concession stand food ideas with high profitability? Each of the menu items on this list is designed to generate between 50% – 70% profit after food cost and labor. This margin is a welcome change for many restaurant industry veterans that might be accustomed to generating 33% profit (or less) per item.

With a bit of creativity, you don’t need to rely on the ideas like kettle corn either (although this approach continues to work well). There’s plenty of tired fair and carnival food out there that can be updated and refreshed to appeal to the new-age consumer. My goal with this piece is to give you some creative ideas that you can use in your business right now to improve your bottom line.

High-Margin Ingredients

The best concession stand ideas aren’t a secret. They’re right in front of you at every fair or sporting event attend if you’re paying attention. The staple ingredients that make winning concession stand items must be both appealing to the public and cheap to purchase in bulk.

Here are the staple items that make up the most profitable concession stand menus. You can get creative with any of the following core ingredients to develop a product with a 50% or higher profit margin:

If you’ve been in the industry awhile, you could have probably guessed these ingredients on your own. Each of the staples can be purchased in bulk for low prices. From a labor and food prep standpoint these ingredients are low effort items to make. Finally, each of the core ingredients above have a relatively long shelf life. This adds up to less food waste and more profit.

Related Reading: Food Booth Vendor with 20+ Years Experience Shares Concession Sales Secrets

Now that you know the ingredients that make up high-margin food products only your imagination is the limit the new items you can come up with.

High-Profit Concession Stand Food Ideas

Estimated Cost: 5o lb bag can be purchased $35 – $40

Retail Price: $7.00 for a bag of kettle corn or popcorn (depending on size).

How to make it work: Popping corn is a timeless concession item with incredible flavor flexibility. By volume, popcorn is the most popular snack food in the United States . You can store popcorn safely for months in a dry environment and it’s a low risk food item making it ideal for concessions.

Some of the common flavors you’ve tried include butter popcorn, toffee, and caramel corn. But you can get a lot more creative with flavor combinations with popcorn to create something exciting for guests. Some ideas include rosemary parmesan, olive oil and garlic, taco, BBQ, and chocolate covered kernels. Learn more about what it’s like to operate a kettle corn business here. 

Fresh made kettle corn.

Estimated Cost: 8 lb Pre-made Cookie Dough Batter for $20 – $35.

Estimated Retail Price: $1 per cookie or up to $20 for a bucket.

How to make it work: Offering fresh baked cookies to consumers will always be a winner. You can order high-quality cookie batter from any restaurant supply company so all you need to do is bake the product and serve.

Popular ready-made flavors include chocolate chip, peanut butter, and sugar cookies. You can doctor these recipes to make them your own by ordering plain cookie dough and adding ingredients. Some options include added Reese’s pieces, M&Ms, nuts, and other flavors commonly found in baked goods.

Estimated Cost: $28 – $100 per pound.

Estimated Retail Price: $2 – $6 per unit depending on size.

How to make it work: One pound of tea leaves yields 200 (6 oz) cups. Even if you invest in higher-price teas there’s plenty of room for profit. According to reports, millennials (people born from 1981 – 1996) are drinking more unique flavors of tea, especially iced teas. There’s still increased consumption of the drink in the western world with tea sales doubling in recent years in Canada .

You only need to look as far as Starbucks to see that iced tea’s and fusion drinks are becoming more popular, especially in the afternoon when coffee is not enjoyed as often. Custom flavor ideas for your concession include strawberry basil iced tea , ginger detox, peach, or a mint lime tea cooler. You can find all sorts of recipes for these free online.

Gourmet Coffee

Estimated Cost: $6.00 – $8.00 per pound

Estimated Retail Price: $3.00 – $5.00 per cup depending on size.

How to make it work: The beverage widely consider to be for adults in the past has much broader appeal today in the United States thanks to numerous flavor and beverage innovations. If you invest in the equipment to serve iced coffee or cold brew, it can quickly pay dividends in sales. While there is equipment cost and training time that needs to be figured in when selling these drinks, the payoff can be worth it for many vendors.

Related Reading: How to Start a Coffee Shop on Your Own Terms

Corn on the Cob 

Estimated Cost: $0.25 per ear (depends on season)

Estimated Retail Price: $3 – $5 per ear depending on toppings.

How to make it work:  If you live in the midwest, you probably think of fresh picked corn on the cob in the fall months. Dip the corn in butter, salt and pepper and you’ve got a delicious snack.

But you can also adapt the product to make Mexican-style street corn covered in mayo, cotija cheese, chili powder and a splash of lime too. There are all sorts of flavor combinations that can be added if you want to get creative by adding other latin spices. Italian seasoning also pairs well with corn in my humble opinion.

Hot Dogs and Corn Dogs  

Estimated Cost: Hot dogs and Corn dogs for $0.35 – $.50 cents each depending on ingredients.

Estimated Retail Price: $3.00 – $6.00 depending on ingredients.

How to make it work: Hot dogs and corn dogs are a staple menu item across concessions stand in America. They are easy to make, cheap to buy, and enjoyed by guests. What’s not to love? Best of all these products are extremely flexible adding toppings. You can add nacho cheese, grilled onions, chili, and other toppings to differentiate your product. Plant-based hot dogs are also readily available and can be used to market to vegetarian eaters. Getting innovative with dipping sauces is another easy way to stand out in this segment (think chipotle mayo).  Learn more about starting a hot dog business here. 

Deep Fried pickles.

Estimated Cost: $2.50 or less per pound after being breaded.

Estimated Retail Price: $5.00 – $8.00

How to make it work: Deep fried pickles have become are a mainstay item at fairs and restaurants a like. Most vendors bread, deep fry, and serve on a paper tray. You can further differentiate this product with dips like garlic mayo, spicy cheese sauce, sour cream and onion, and just about anything else you can dream up. To further differentiate the product you can make the pickles with creative spices to make a sweet or sour flavored pickle.

Estimated Cost: $.50 – $2.50 depending on toppings.

Estimated Retail Price: $3.00 – $8.00 depending on style.

How to make it work: Fried bread in all forms is a high-profit menu item. Fried bread has different variations by region including Native American Fry Bread. Similar variations of the food go by the name elephant ears. This core item can be used to create desserts or meals. Cinnamon and sugar is a popular menu item for desserts while you can make dozens of different fried bread taco to eat as a meal. This is a great add-on to a concession business especially if you already use deep fryers.

Estimated Cost: .50 cents or less per pound.

Estimated Retail Price: $5.00 – $10.00 depending on style and size.

How to make it work:  Potatoes can be purchased cheap and stored for a few weeks without going bad. Like the other foods on our list they are easy to cook and assemble for guests too. The sky is the limit on what you can do with this product. Here are a few ideas: Create nacho fries, serve amped-up baked potatoes, ribbon fries, create a variety of dipping sauces, offer poutine, cook seasoned tater tots, make potato latkes during the Hanukkah celebration.

Estimated Cost: $0.25 cents or less per cup.

Estimated Retail Price: $3.00 – $7.00 depending on style and size.

How to make it work: This is a product you’ve no doubt seen at sporting events, parades and farmer’s markets. But there are plenty of ways to standout from the crowd by adapting this product. First off, many suppliers now offer syrups with vitamins and organic ingredients. This is an easy way to appeal to the health-minded mom or dad wielding the family credit card. Another way to enhance this product is by pairing it with fruit, condensed milk, or whip cream. You can learn more about the operations and profitability of the shaved ice business model here. 

Snow cones and syrups.

Estimated Cost: $0.50 cents or less per churro.

Estimated Retail Price: $2.00 – $6.00 depending on style and size.

How to make it work: This traditional Spanish food has gone mainstream over the past 5 years. The snack giant J&J Snack Foods reported selling over $68 million in churros alone in 2018 inside their annual report . While churros traditionally use a cinnamon and sugar flavor there are new seasonal flavors increasing awareness for the product like Oreo, pumpkin spice, and egg nog. This is an extremely popular snack at DisneyLand resorts where there is an ever changing menu of churro options. The theme park now charges over $5.00 per churro.

Ice Cream and Frozen Yogurt

Estimated Cost: $0.75 – $1.50 per unit

Estimated Retail Price: $5.00 – $9.00 depending on size and toppings

How to make it work: Eating at a Frozen yogurt shop has become an Instagram worthy event. Serving ice cream and frozen yogurt has always had a low food cost, but unless you make the product both visually appealing and unique it’s going to be tough to differentiate your product from everyone to make a big profit.

You can still get generate extra sales by adding an ice cream machine offering twist cones, but if you’re attempting to get a big winner that generates excitement and social media shares you’ll need a more original product. Some winning ideas include gourmet ice cream pops, paletas, or offering non-diary soft-serve options. Learn more about the trends in the frozen dessert segment in this podcast. 

Social media share worthy ice cream.

How to Come up with Creative Concession Ideas

You don’t need to be a “creative” type to develop a unique concession menu. Here are some approaches to ensuring you always have an exciting concession menu. Follow this approach and you’ll never run of profitable ideas.

• Travel and Pay Attention:  Visiting your state fair is a terrific way to discover new concession options. Pay attention to the new foods that attendees can’t seem to get enough of. Innovative foods like this are the ideal to bring back to your market. I discovered the “ cronut ” by attending the Minnesota State Fair just a few years ago. You had to wait in a line for 20 minutes at least the first year the cronut was first released into the world. This is the sign of a product you can take back to your own concession business.
• Pinterest and Food Bloggers: There are literally tens of thousands of talented food bloggers out there that develop and publish information on how to make exciting new recipes every day. Search online or by using Pinterest to find creative spins on ideas you’ve already been using in your business. Sometimes little tweaks like adding an exciting seasonal flavor to your popcorn stand (Pumpkin Spice Popcorn anyone?) is all you need to refresh the product and improve sales.
• New Flavors or Food Combinations: Be on the look out for exciting new flavors to infuse with your menu. Often these modern twists on old ideas come outside the United States. Much of the flavor innovation in ice cream for example comes from parts of Asia or Italy. Eventually these trends make way state side. Stay on the look out for ways to pair your foods together in creatively. The ice cream cookie sandwich is one such example of two concession foods being brought together to create a new item.

Don’t stop with the examples listed above. You could create a new delivery method for your food. One proven way to deliver almost any kind of food is on a stick. Try hot dish on a stick, fried pickles on a stick.

Another option is adding a unique characteristic to food, like locally grown, low calorie, or organic. You can always find ways to invigorate your menu using these approaches.

What questions do you have about making a high-profit concession menu? I’d be happy to answer them in the comments below.

Want to start your own food business?

Hey! 👋I’m Brett Lindenberg, the founder of Food Truck Empire.

We interview successful founders and share the stories behind their food trucks, restaurants, food and beverage brands. By sharing these stories, I want to help others get started.

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Don't call them DINKs. Many childfree adults are ALICEs.

• DINKs are known for having disposable income, but some childfree adults are also struggling.
• In fact, many childfree adults are ALICEs — asset-limited, income-constrained, and employed.
• Without dependents, many low-income workers have a harder time accessing tax credits and government assistance.

America's DINKs — dual-income couples with no children — are known for having disposable income and spending their paychecks on major investments, luxury vacations , and early retirement .

These households have previously told Business Insider that they can spend extra money on their lifestyle because they don't have any child-related costs. By definition, DINKs aren't necessarily rich , but they do have a reputation for living a life of freedom and excess cash.

A growing number of child - free adults , however, are falling through the cracks of the US economy. Many low-income childfree adults fall into the ALICE category — people who are asset-limited, income-constrained, and employed. Twenty-nine percent of US households make too much to qualify for government assistance but not enough to comfortably afford daily life . And ALICEs who aren't parents face unique challenges: it is especially difficult to qualify for financial help or tax credits without young children, even if you need the help.

According to a report published in April by the Brookings Institution, the US doesn't have a strong financial safety net to support childfree ALICEs. This is partly because having financially dependent children is a prerequisite of some government assistance programs .

Poor, non-elderly adults who are not raising children and don't qualify for disability benefits made up nearly 106 million people in 2017, according to a Census analysis . What's more, they have a higher risk of experiencing homelessness and long-term poverty, per the Brookings report.

Low-income adults without children face barriers to government assistance

Low-income, childfree adults have a higher likelihood of falling into poverty, and often stay in poverty long-term because they can't access assistance, wrote Robert Greenstein, the author of the Brookings report.

Related stories

"The safety net for these non-elderly childless adults is so limited, those non-elderly adults who are poor tend to be poorer than others living in poverty," wrote Greenstein, who is also a visiting fellow of economic studies for the Brookings Institution, which is affiliated with The Hamilton Project, an economic policy initiative.

The report found that half of the Americans living in "deep poverty" — those with incomes that are at or below 50% of the poverty line, which is $7,290 annually for one person — are childfree adults not receiving disability benefits.

Greenstein wrote that this population is at a disadvantage when applying for government support, especially as it comes to tax credits and housing assistance, even if their household income is low.

For example, they don't qualify for the child tax credit , which allows families with dependents to receive thousands of dollars in tax breaks each year. The Earned Income Tax Credit — which offers refundable tax credits for low- and moderate-income workers — is also very limited for childfree employees, who receive fewer than 4% of the EITC's overall benefits, according to the Brookings report.

Greenstein also wrote that over 7 million low-income adults who are between the ages of 18 to 61 and don't live with minors pay more than 50% of their income on rent — making them severely rent-burdened. The majority of these adults don't receive any state or federal rental assistance.

Additionally, parents can more easily access SNAP food benefits than childfree adults because they are exempt from having to work a required amount of hours each week to receive assistance.

Many Social Security and Medicare programs also primarily offer assistance to older adults, excluding adults under 62.

Although strengthening the US financial safety net for this population is complex, Greenstein offered a few solutions. He suggested expanding the Earned Income Tax Credit to benefit more adults without children, along with removing the extra qualifications childfree adults must meet to access SNAP benefits.

An expansion of Medicaid through the Affordable Care Act would also allow more adults to get the healthcare they need — even if they don't qualify for disability benefits or Social Security, Greenstein said.

Are you making an income above the poverty line but still struggling to afford daily life? Have you faced challenges qualifying for government assistance because you don't have children? Reach out to this reporter at [email protected] .

Watch: Supreme Court strikes down Biden's student-debt relief plan

• Main content

Infinity Farm

Location & Hours

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16523 Issaquah-Hobart Rd SE

Issaquah, WA 98027

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This was an amazing and magical place to host a party. It delivered in all the ways it promised on the website. We contacted Infinity Farms and it was so easy to book. Ciara was so helpful and it was just easy communication. The days prior to the party, she sent out an email with helpful information. The farm in itself is very cute. It is a simple farm with alpacas at the front and cows in the back with a chicken coop in the middle. At the front of the farm, there is a playground area. The center is where the barn/party area is. Everything was thoughtfully done where the tables all had table cloth. They laid out fun kids' activities as per part of the party package that we got. You can hook up your phone to their stereo system. Everything was perfect. I especially loved how they wrapped each packaged animal feed in brown bags. It was easy to open for the little ones. I think every guest had so much fun here. They ran from one animal area to the next. There was so much open space to kick a ball too! It was just splendid fun. We totally would host a party here again! Thank you Ciara and Infinity Farms!

A small cute farm to host your parties & celebrate your occasion! What we loved # farm animals especially the cute alpacas, chickens and the cows # farm trolleys, mini tractor, huge chair and few other photo props # speaker system that connects the entire farm. We were playing songs within the shelter which everyone could hear throughout the farm! # free food to give to animals. They are kept on the stand for everyone to freely feed the animals whenever they want. Your guests are free on their own tour. # High quality restrooms! This is not your average honey bucket you may expect on a farm but something you find in a hotel! #the picnic shelter is cemented which gives you awesome ways to plan your decor and those fans help with the heat # they provide you with a mini refrigerator for drinks and also a big fridge which you can use for cakes etc # plenty of space, you get the entire farm for yourself! And finally, an awesome help during the event. We had Cam who helped us throughout the event! Other recommendations: # take a table cloth to use for the tables if you wish to use them for food. Else, you will need to get wipes to clean them out (Glad we had friends to help!) #the only way to contact the farm is via email. So make sure you ask your questions before the event. #dress appropriately, it's a farm! We asked our guests to wear closed toe shoes

Birthday decor at the farm

This reminded me of "Fall City Apple festival" but Fall City was much smaller. There were some food truck vendors along with kid activities. Dogs are welcomed. There were some farm animals to see as well as different booths from different vendors.

See all photos from Jboogie L. for Infinity Farm

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How Biden Adopted Trump’s Trade War With China

The president has proposed new barriers to electric vehicles, steel and other goods..

This transcript was created using speech recognition software. While it has been reviewed by human transcribers, it may contain errors. Please review the episode audio before quoting from this transcript and email [email protected] with any questions.

From “The New York Times,” I’m Sabrina Tavernise, and this is “The Daily.”

[MUSIC PLAYING]

Donald Trump upended decades of American policy when he started a trade war with China. Many thought that President Biden would reverse those policies. Instead, he’s stepping them up. Today, my colleague, Jim Tankersley, explains.

It’s Monday, May 13.

Jim, it’s very nice to have you in the studio.

It’s so great to be here, Sabrina. Thank you so much.

So we are going to talk today about something I find very interesting and I know you’ve been following. We’re in the middle of a presidential campaign. You are an economics reporter looking at these two candidates, and you’ve been trying to understand how Trump and Biden are thinking about our number one economic rival, and that is China.

As we know, Trump has been very loud and very clear about his views on China. What about Biden?

Well, no one is going to accuse President Biden of being as loud as former President Trump. But I think he’s actually been fairly clear in a way that might surprise a lot of people about how he sees economic competition with China.

We’re going after China in the wrong way. China is stealing intellectual property. China is conditioning —

And Biden has, kind of surprisingly, sounded a lot, in his own Joe Biden way, like Trump.

They’re not competing. They’re cheating. They’re cheating. And we’ve seen the damage here in America.

He has been very clear that he thinks China is cheating in trade.

The bottom line is I want fair competition with China, not conflict. And we’re in a stronger position to win the economic competition of the 21st century against China or anyone else because we’re investing in America and American workers again. Finally.

And maybe the most surprising thing from a policy perspective is just how much Biden has built on top of the anti-China moves that Trump made and really is the verge of his own sort of trade war with China.

Interesting. So remind us, Jim, what did Trump do when he actually came into office? We, of course, remember Trump really talking about China and banging that drum hard during the campaign, but remind us what he actually did when he came into office.

Yeah, it’s really instructive to start with the campaign, because Trump is talking about China in some very specific ways.

We have a $500 billion deficit, trade deficit, with China. We’re going to turn it around. And we have the cards. Don’t forget —

They’re ripping us off. They’re stealing our jobs.

They’re using our country as a piggy bank to rebuild China, and many other countries are doing the same thing. So we’re losing our good jobs, so many.

The economic context here is the United States has lost a couple of million jobs in what was called the China shock of the early 2000s. And Trump is tapping into that.

But when the Chinese come in, and they want to make great trade deals — and they make the best trade deals, and not anymore. When I’m there, we turn it around, folks. We turn it around. We have —

And what he’s promising as president is that he’s going to bring those jobs back.

I’ll be the greatest jobs president that God ever created. I’ll take them back from China, from Japan.

And not just any jobs, good-paying manufacturing jobs, all of it — clothes, shoes, steel, all of these jobs that have been lost that American workers, particularly in the industrial Midwest, used to do. Trump’s going to bring them back with policy meant to rebalance the trade relationship with China to get a better deal with China.

So he’s saying China is eating our lunch and has been for decades. That’s the reason why factory workers in rural North Carolina don’t have work. It’s those guys. And I’m going to change that.

Right. And he likes to say it’s because our leaders didn’t cut the right deal with them, so I’m going to make a better deal. And to get a better deal, you need leverage. So a year into his presidency, he starts taking steps to amass leverage with China.

And so what does that look like?

Just an hour ago, surrounded by a hand-picked group of steelworkers, President Trump revealed he was not bluffing.

It starts with tariffs. Tariffs are taxes that the government imposes on imports.

Two key global imports into America now face a major new barrier.

Today, I’m defending America’s national security by placing tariffs on foreign imports of steel and aluminum.

And in this case, it’s imports from a lot of different countries, but particularly China.

Let’s take it straight to the White House. The president of the United States announcing new trade tariffs against China. Let’s listen in.

This has been long in the making. You’ve heard —

So Trump starts, in 2018, this series of tariffs that he’s imposing on all sorts of things — washing machines, solar panels, steel, aluminum. I went to Delaware to a lighting store at that time, I remember, where basically everything they sold came from China and was subject to the Trump tariffs, because that’s where lighting was made now.

Interesting.

Hundreds of billions of dollars of Chinese goods now start falling under these Trump tariffs. The Chinese, of course, don’t take this lying down.

China says it is not afraid of a trade war with the US, and it’s fighting back against President Trump with its own tariffs on US goods.

They do their own retaliatory tariffs. Now American exports to China cost more for Chinese consumers. And boom, all of a sudden, we are in the midst of a full-blown trade war between the United States and Beijing.

Right. And that trade war was kind of a shock because for decades, politicians had avoided that kind of policy. It was the consensus of the political class in the United States that there should not be tariffs like that. It should be free trade. And Trump just came in and blew up the consensus.

Yeah. And Sabrina, I may have mentioned this once or 700 times before on this program, but I talk to a lot of economists in my job.

Yeah, it’s weird. I talk to a lot of economists. And in 2018 when this started, there were very, very, very few economists of any political persuasion who thought that imposing all these tariffs were a good idea. Republican economists in particular, this is antithetical to how they think about the world, which is low taxes, free trade. And even Democratic economists who thought they had some problems with the way free trade had been conducted did not think that Trump’s “I’m going to get a better deal” approach was going to work. And so there was a lot of criticism at the time, and a lot of politicians really didn’t like it, a lot of Democrats, many Republicans. And it all added up to just a real, whoa, I don’t think this is going to work.

So that begs the question, did it?

Well, it depends on what you mean by work. Economically, it does not appear to have achieved what Trump wanted. There’s no evidence yet in the best economic research that’s been done on this that enormous amounts of manufacturing jobs came back to the United States because of Trump’s tariffs. There was research, for example, on the tariffs on washing machines. They appear to have helped a couple thousand jobs, manufacturing jobs be created in the United States, but they also raised the price of washing machines for everybody who bought them by enough that each additional job that was created by those tariffs effectively cost consumers, like, $800,000 per job.

There’s like lots of evidence that the sectors Trump was targeting to try to help here, he didn’t. There just wasn’t a lot of employment rebound to the United States. But politically, it really worked. The tariffs were very popular. They had this effect of showing voters in those hollowed-out manufacturing areas that Trump was on their team and that he was fighting for them. Even if they didn’t see the jobs coming back, they felt like he was standing up for them.

So the research suggests this was a savvy political move by Trump. And in the process, it sort of changes the political economic landscape in both parties in the United States.

Right. So Trump made these policies that seemed, for many, many years in the American political system, fringe, isolationist, economically bad, suddenly quite palatable and even desirable to mainstream policymakers.

Yeah. Suddenly getting tough on China is something everyone wants to do across both parties. And so from a political messaging standpoint, being tough on China is now where the mainstream is. But at the same time, there is still big disagreement over whether Trump is getting tough on China in the right way, whether he’s actually being effective at changing the trade relationship with China.

Remember that Trump was imposing these tariffs as a way to get leverage for a better deal with China. Well, he gets a deal of sorts, actually, with the Chinese government, which includes some things about tariffs, and also China agreeing to buy some products from the United States. Trump spins it as this huge win, but nobody else really, including Republicans, acts like Trump has solved the problem that Trump himself has identified. This deal is not enough to make everybody go, well, everything’s great with China now. We can move on to the next thing.

China remains this huge issue. And the question of what is the most effective way to deal with them is still an animating force in politics.

Got it. So politically, huge win, but policy-wise and economically, and fundamentally, the problem of China still very much unresolved.

Absolutely.

So then Biden comes in. What does Biden do? Does he keep the tariffs on?

Biden comes to office, and there remains this real pressure from economists to roll back what they consider to be the ineffective parts of Trump’s trade policy. That includes many of the tariffs. And it’s especially true at a time when almost immediately after Biden takes office, inflation spikes. And so Americans are paying a lot of money for products, and there’s this pressure on Biden, including from inside his administration, to roll back some of the China tariffs to give Americans some relief on prices.

And Biden considers this, but he doesn’t do it. He doesn’t reverse Trump’s tariff policy. In the end, he’s actually building on it.

We’ll be right back.

So Jim, you said that Biden is actually building on Trump’s anti-China policy. What exactly does that look like?

So Biden builds on the Trump China policy in three key ways, but he does it with a really specific goal that I just want you to keep in mind as we talk about all of this, which is that Biden isn’t just trying to beat China on everything. He’s not trying to cut a better deal. Biden is trying to beat China in a specific race to own the clean-energy future.

Clean energy.

Yeah. So keep that in mind, clean energy. And the animating force behind all of the things Biden does with China is that Biden wants to beat China on what he thinks are the jobs of the future, and that’s green technology.

Got it. OK. So what does he do first?

OK. Thing number one — let’s talk about the tariffs. He does not roll them back. And actually, he builds on them. For years, for the most part, he just lets the tariffs be. His administration reviews them. And it’s only now, this week, when his administration is going to actually act on the tariffs. And what they’re going to do is raise some of them. They’re going to raise them on strategic green tech things, like electric vehicles, in order to make them more expensive.

And I think it’s important to know the backdrop here, which is since Biden has taken office, China has started flooding global markets with really low-cost green technologies. Solar panels, electric vehicles are the two really big ones. And Biden’s aides are terrified that those imports are going to wash over the United States and basically wipe out American automakers, solar panel manufacturers, that essentially, if Americans can just buy super-cheap stuff from China, they’re not going to buy it from American factories. Those factories are going to go out of business.

So Biden’s goal of manufacturing jobs in clean energy, China is really threatening that by dumping all these products on the American market.

Exactly. And so what he wants to do is protect those factories with tariffs. And that means increasing the tariffs that Trump put on electric vehicles in hopes that American consumers will find them too expensive to buy.

But doesn’t that go against Biden’s goal of clean energy and things better for the environment? Lots of mass-market electric vehicles into the United States would seem to advance that goal. And here, he’s saying, no, you can’t come in.

Right, because Biden isn’t just trying to reduce emissions at all costs. He wants to reduce emissions while boosting American manufacturing jobs. He doesn’t want China to get a monopoly in these areas. And he’s also, in particular, worried about the politics of lost American manufacturing jobs. So Biden does not want to just let you buy cheaper Chinese technologies, even if that means reducing emissions.

He wants to boost American manufacturing of those things to compete with China, which brings us to our second thing that Biden has done to build on Trump’s China policy, which is that Biden has started to act like the Chinese government in particular areas by showering American manufacturers with subsidies.

I see. So dumping government money into American businesses.

Yes, tax incentives, direct grants. This is a way that China has, in the past decades, built its manufacturing dominance, is with state support for factories. Biden is trying to do that in particular targeted industries, including electric vehicles, solar power, wind power, semiconductors. Biden has passed a bunch of legislation that showers those sectors with incentives and government support in hopes of growing up much faster American industry.

Got it. So basically, Biden is trying to beat China at its own game.

Yeah, he’s essentially using tariffs to build a fortress around American industry so that he can train the troops to fight the clean energy battle with China.

And the troops being American companies.

Yes. It’s like, we’re going to give them protection — protectionist policy — in order to get up to size, get up to strength as an army in this battle for clean energy dominance against the Chinese.

Got it. So he’s trying to build up the fortress. What’s the third thing Biden does? You mentioned three things.

Biden does not want the United States going it alone against China. He’s trying to build an international coalition, wealthy countries and some other emerging countries that are going to take on China and try to stop the Chinese from using their trade playbook to take over all these new emerging industrial markets.

But, Jim, why? What does the US get from bringing our allies into this trade war? Why does the US want that?

Some of this really is about stopping China from gaining access to new markets. It’s like, if you put the low-cost Chinese exports on a boat, and it’s going around the world, looking for a dock to stop and offload the stuff and sell it, Biden wants barriers up at every possible port. And he wants factories in those places that are competing with the Chinese.

And a crucial fact to know here is that the United States and Europe, they are behind China when it comes to clean-energy technology. The Chinese government has invested a lot more than America and Europe in building up its industrial capacity for clean energy. So America and its allies want to deny China dominance of those markets and to build up their own access to them.

And they’re behind, so they’ve got to get going. It’s like they’re in a race, and they’re trailing.

Yeah, it’s an economic race to own these industries, and it’s that global emissions race. They also want to be bringing down fossil-fuel emissions faster than they currently are, and this is their plan.

So I guess, Jim, the question in my mind is, Trump effectively broke the seal, right? He started all of these tariffs. He started this trade war with China. But he did it in this kind of jackhammer, non-targeted way, and it didn’t really work economically. Now Biden is taking it a step further. But the question is, is his effort here going to work?

The answer to whether it’s going to work really depends on what your goals are. And Biden and Trump have very different goals. If Trump wins the White House back, he has made very clear that his goal is to try to rip the United States trade relationship with China even more than he already has. He just wants less trade with China and more stuff of all types made in the United States that used to be made in China. That’s a very difficult goal, but it’s not Biden’s goal.

Biden’s goal is that he wants America to make more stuff in these targeted industries. And there is real skepticism from free-market economists that his industrial policies will work on that, but there’s a lot of enthusiasm for it from a new strain of Democratic economists, in particular, who believe that the only chance Biden has to make that work is by pulling all of these levers, by doing the big subsidies and by putting up the tariffs, that you have to have both the troops training and the wall around them. And if it’s going to work, he has to build on the Trump policies. And so I guess you’re asking, will it work? It may be dependent upon just how far he’s willing to go on the subsidies and the barriers.

There’s a chance of it.

So, Jim, at the highest level, whatever the economic outcome here, it strikes me that these moves by Biden are pretty remarkably different from the policies of the Democratic Party over the decades, really going in the opposite direction. I’m thinking of Bill Clinton and NAFTA in the 1990s. Free trade was the real central mantra of the Democratic Party, really of both parties.

Yeah, and Biden is a real break from Clinton. And Clinton was the one who actually signed the law that really opened up trade with China, and Biden’s a break from that. He’s a break from even President Obama when he was vice president. Biden is doing something different. He’s breaking from that Democratic tradition, and he’s building on what Trump did, but with some throwback elements to it from the Roosevelt administration and the Eisenhower administration. This is this grand American tradition of industrial policy that gave us the space race and the interstate highway system. It’s the idea of using the power of the federal government to build up specific industrial capacities. It was in vogue for a time. It fell out of fashion and was replaced by this idea that the government should get out of the way, and you let the free market drive innovation. And now that industrial policy idea is back in vogue, and Biden is doing it.

So it isn’t just a shift or an evolution. It’s actually a return to big government spending of the ‘30s and the ‘40s and the ‘50s of American industrialism of that era. So what goes around comes around.

Yeah, and it’s a return to that older economic theory with new elements. And it’s in part because of the almost jealousy that American policymakers have of China and the success that it’s had building up its own industrial base. But it also has this political element to it. It’s, in part, animated by the success that Trump had making China an issue with working-class American voters.

You didn’t have to lose your job to China to feel like China was a stand-in for the forces that have taken away good-paying middle-class jobs from American workers who expected those jobs to be there. And so Trump tapped into that. And Biden is trying to tap into that. And the political incentives are pushing every future American president to do more of that. So I think we are going to see even more of this going forward, and that’s why we’re in such an interesting moment right now.

So we’re going to see more fortresses.

More fortresses, more troops, more money.

Jim, thank you.

You’re welcome.

Here’s what else you should know today. Intense fighting between Hamas fighters and Israeli troops raged in parts of Northern Gaza over the weekend, an area where Israel had declared Hamas defeated earlier in the war, only to see the group reconstitute in the power vacuum that was left behind. The persistent lawlessness raised concerns about the future of Gaza among American officials. Secretary of State Antony Blinken said on “Face the Nation” on Sunday that the return of Hamas to the North left him concerned that Israeli victories there would be, quote, “not sustainable,” and said that Israel had not presented the United States with any plan for when the war ends.

And the United Nations aid agency in Gaza said early on Sunday that about 300,000 people had fled from Rafah over the past week, the city in the enclave’s southernmost tip where more than a million displaced Gazans had sought shelter from Israeli bombardments elsewhere. The UN made the announcement hours after the Israeli government issued new evacuation orders in Rafah, deepening fears that the Israeli military was preparing to invade the city despite international warnings.

Today’s episode was produced by Nina Feldman, Carlos Prieto, Sidney Harper, and Luke Vander Ploeg. It was edited by M.J. Davis Lin, Brendan Klinkenberg, and Lisa Chow. Contains original music by Diane Wong, Marion Lozano, and Dan Powell, and was engineered by Alyssa Moxley. Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly.

That’s it for “The Daily.” I’m Sabrina Tavernise. See you tomorrow.

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Hosted by Sabrina Tavernise

Produced by Nina Feldman ,  Carlos Prieto ,  Sydney Harper and Luke Vander Ploeg

Edited by M.J. Davis Lin ,  Brendan Klinkenberg and Lisa Chow

Original music by Diane Wong ,  Marion Lozano and Dan Powell

Engineered by Alyssa Moxley

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Donald Trump upended decades of American policy when he started a trade war with China. Many thought that President Biden would reverse those policies. Instead, he’s stepping them up.

Jim Tankersley, who covers economic policy at the White House, explains.

On today’s episode

Jim Tankersley , who covers economic policy at the White House for The New York Times.

Background reading

Mr. Biden, competing with Mr. Trump to be tough on China , called for steel tariffs last month.

The Biden administration may raise tariffs on electric vehicles from China to 100 percent .

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We aim to make transcripts available the next workday after an episode’s publication. You can find them at the top of the page.

The Daily is made by Rachel Quester, Lynsea Garrison, Clare Toeniskoetter, Paige Cowett, Michael Simon Johnson, Brad Fisher, Chris Wood, Jessica Cheung, Stella Tan, Alexandra Leigh Young, Lisa Chow, Eric Krupke, Marc Georges, Luke Vander Ploeg, M.J. Davis Lin, Dan Powell, Sydney Harper, Mike Benoist, Liz O. Baylen, Asthaa Chaturvedi, Rachelle Bonja, Diana Nguyen, Marion Lozano, Corey Schreppel, Rob Szypko, Elisheba Ittoop, Mooj Zadie, Patricia Willens, Rowan Niemisto, Jody Becker, Rikki Novetsky, John Ketchum, Nina Feldman, Will Reid, Carlos Prieto, Ben Calhoun, Susan Lee, Lexie Diao, Mary Wilson, Alex Stern, Dan Farrell, Sophia Lanman, Shannon Lin, Diane Wong, Devon Taylor, Alyssa Moxley, Summer Thomad, Olivia Natt, Daniel Ramirez and Brendan Klinkenberg.

Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly. Special thanks to Sam Dolnick, Paula Szuchman, Lisa Tobin, Larissa Anderson, Julia Simon, Sofia Milan, Mahima Chablani, Elizabeth Davis-Moorer, Jeffrey Miranda, Renan Borelli, Maddy Masiello, Isabella Anderson and Nina Lassam.

Luke Vander Ploeg is a senior producer on “The Daily” and a reporter for the National Desk covering the Midwest. More about Luke Vander Ploeg

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