What you Get With Coffee Truck Business Plan Package
| 6 Chapter Business Plan Template in MS Word | Free Pitch Deck Template in PPT |
| 5 Year Financial Model Template in MS Excel | Free Financial Dashboard Template in MS Excel |
| Immediate Download After Purchase | MAC &PC Compatible, Unlocked, NO VBA Macro |
| Bank/Investor/Grant Ready Package | No Accounting Or Financial Knowledge Needed |
I.- Executive Summary
Problem
Despite the increasing popularity and presence of coffee trucks in major cities, Ann Arbor, Michigan does not have access to a specialty coffee truck offering top-tier brewed coffee and espresso drinks, shakes, frappes, and locally produced snacks and pastries. On Point Coffee & Shakes, LLC aims to fill this gap in the local market by introducing a truck designed to offer customers a premium specialty coffee experience and providing locally sourced ingredients and high-quality products. By bringing a higher-end coffee truck to the Ann Arbor area, On Point Coffee & Shakes seeks to meet the needs of coffee enthusiasts, while also providing a convenient alternative to traditional coffee shops.
Solution
On Point Coffee & Shakes, LLC will provide Ann Arbor with specialty brewed coffee, espresso drinks, shakes, frappes, and more. All ingredients, including dairy and non-dairy milk alternatives, will be organic and locally sourced when possible, in order to offer fresh and flavorful options. Locally made pastries and snacks will also be available, allowing customers to enjoy a one-of-a-kind experience with On Point Coffee & Shakes.
On Point Coffee & Shakes, LLC’s primary goal is to provide an enjoyable, affordable, and high-quality experience for all customers. With years of experience and outstanding customer service, we are confident that On Point Coffee & Shakes will quickly become a popular staple in this community.
Target Market
On Point Coffee & Shakes, LLC will serve a wide range of consumers seeking quality, delicious specialty brews and shakes crafted from organic and locally sourced ingredients, as well as antibiotic-free dairy and non-dairy milk alternatives. Ann Arbor, Michigan offers numerous opportunities for On Point Coffee & Shakes to reach this target market, including both the student-heavy population of the University of Michigan and the diverse mix of faculty, staff, and residents that live in the city and its surrounding suburbs. The company believes that these residents, as well as visitors to the area, will be prime targets for its products and services.
Competition
On Point Coffee & Shakes, LLC will enter a relatively crowded market in Ann Arbor, with competition from at least fifteen coffee-based businesses. Local coffee companies such as (company 1), (company 2), and (company 3), among many others, have a loyal existing customer base from which On Point will draw. However, the company does not differentiate itself with only product. On Point will offer locals a unique experience in gourmet coffee, shakes, and frappes that cannot be found elsewhere in the area at this time.
On Point will differentiate itself from local competitors by using only organic and locally sourced ingredients, as well as offering a wide variety of non-dairy milk alternatives. The company will also offer snacks and pastries made with locally sourced ingredients, providing customers with options that reflect the values of the Ann Arbor community. On Point's goal is to provide a great experience beyond just the product, through live music and art events, and a positive and inviting atmosphere.
Financial Summary
The financial plan of On Point Coffee & Shakes, LLC focuses on covering costs and projected sales, ultimately leading to profitability. The key highlights of the financial plan include:
- Calculated startup costs for the specialty coffee truck and related equipment, including permitting and licensing.
- Projected monthly sales and gross profits based on projected customer numbers.
- Estimated onboarding and training costs for baristas and other staff.
- Pre-calculated pricing strategies to ensure an optimal margin while maintaining competitive pricing.
- Forecasted expenses, such as operating costs and wages.
Funding Requirements
To open On Point Coffee & Shakes in Ann Arbor, Michigan, the following capital will be required:
- Building lease: $20,000
- Start-up equipment costs: $10,000
- Inventory: $4,000
- Marketing and advertising: $3,000
- Working capital: $3,000
In total, an estimated $40,000 will be required to launch On Point Coffee & Shakes.
Milestones and Traction
On Point Coffee & Shakes, LLC plans to open its specialty coffee truck in Ann Arbor, Michigan in the spring of 2023. To ensure that the business reaches its milestones in a timely manner and is adequately prepared, On Point Coffee & Shakes has outlined the following milestones:
- Securing necessary government permits and licenses.
- Finding a suitable vehicle to transform into a mobile cafe.
- Finding a location for the truck and finalizing the lease agreement.
- Equipping the truck with all necessary equipment.
- Hiring a dedicated team of baristas.
- Staffing customer service personnel to handle daily operations.
- Creating an online presence through website, social media accounts, and mobile app.
- Launching the truck and opening for business.
In addition, On Point Coffee & Shakes has plans to expand its customer base and visibility through the organization of local events, proactive customer outreach, and doing promotional activities. This will allow the company to maximize its return on investment and maintain a presence in the local Ann Arbor market.
II.- Products & Services
Problem
The specialty coffee truck market in Ann Arbor is saturated, with customers having a limited selection of coffee and tea drinks, with many not of a high-quality. There is an unmet need for a specialty coffee shop that offers high-quality, locally sourced coffee and espresso drinks, shakes, frappes, snacks, and pastries. In addition, customers are looking for more selection when it comes to milk alternatives, from antibiotic-free dairy to non-dairy options. On Point Coffee & Shakes will provide high-quality and sustainable options, in a convenient and modern environment, for those looking for a quick, healthy, and flavorful snack.
Solution
On Point Coffee & Shakes, LLC plans to provide the Ann Arbor community with a specialty coffee truck. Customers will benefit from the high quality, specialty brews of coffee and espresso drinks served, in addition to a selection of flavorful shakes and frappes. On Point Coffee & Shakes will prioritize utilizing organic and locally sourced ingredients, antibiotic-free dairy, non-dairy alternatives, and snacks and pastries from local providers. With its convenient location, no-nonsense atmosphere, and quality drinks, On Point Coffee & Shakes is the ideal solution for people looking for tasty and ethical coffee options in Ann Arbor.
Validation of Problem and Solution
On Point Coffee & Shakes, LLC has identified a need in the Ann Arbor area for a specialty coffee truck that can provide high quality, specialty brews of coffee, espresso drinks, shakes, frappes, snacks, and pastries. To ensure that On Point Coffee & Shakes, LLC meets this need, extensive market research has been conducted. During this research, surveys were distributed to Ann Arbor residents to gauge the preferences and needs of its customers. The research concluded that Ann Arbor residents are looking for a coffee truck with organic and locally sourced ingredients, as well as antibiotic-free dairy and non-dairy milk alternatives. This validates the importance of the offerings On Point Coffee & Shakes plans to provide, ensuring that the company will meet a growing demand in the Ann Arbor area.
Product Overview
On Point Coffee & Shakes, LLC is a specialty coffee truck operating in Ann Arbor, Michigan. We offer a range of high-quality, specialty coffee and espresso drinks, as well as a selection of delicious shakes and frappes made using organic and locally sourced ingredients. We offer both cow's milk and alternative dairy options, such as almond or soy milk. We also serve freshly made snacks and pastries. Our goal is to provide a cozy, local atmosphere where our customers can enjoy a premium cup of coffee or a refreshing milkshake while on the go.
We pride ourselves on using natural ingredients to craft delicious and exciting drinks and snacks that deliver the highest value to our customers. Our drinks use only organic coffee beans and espresso beans sourced from local coffee farms and our shakes and frappes are crafted with all-natural, locally sourced ingredients. We use only antibiotic-free dairy and non-dairy milk options for our drinks, and our snacks and pastries are all freshly made at our headquarters.
On Point Coffee & Shakes provides a great option for customers looking for a quality cup of coffee or a tasty treat on the go. Whether you need a quick pick-me-up during your morning commute, or a refreshing frappe on a hot summer day, you can trust our products to provide the highest quality and the best flavor.
Competition
On Point Coffee & Shakes, LLC will face competition from other existing specialty coffee trucks and specialty coffee shops in Ann Arbor. These establishments offer coffee and espresso drinks, shakes, frappes, snacks, and pastries as well. In order to differentiate itself, On Point Coffee & Shakes plans to focus on organic and locally sourced ingredients, as well as antibiotic-free dairy and non-dairy milk alternatives. The company also plans to offer locally made snacks and pastries that can’t be found anywhere else. By offering these unique items, On Point Coffee & Shakes will be able to stand out from the competition.
Roadmap: Products & Services
On Point Coffee & Shakes, LLC has already taken steps to get our coffee truck venture off the ground. We have secured a vehicle for the truck and are currently shopping for a prime location in the Ann Arbor area. Additionally, we have begun to research the local suppliers for organic and locally sourced ingredients for our menu. Our team has also developed a plan for staffing, including the selection and training of baristas and customer service employees.
In the upcoming months, we will continue to refine our menu and location, and work with local suppliers to secure the best products for our customers. We will also develop our branding and advertising strategy, as well as apply for necessary permits and licenses. Additionally, we plan to establish relationships with local businesses and institutions in order to increase our customer base.
In the end, On Point Coffee & Shakes, LLC will deliver a high-quality experience with specialty brews of coffee and espresso drinks plus thoughtful, creative shakes and frappes. Our focus on sustainability and local sourcing will further build up the vibrancy of Ann Arbor’s already thriving food scene. We are confident that On Point Coffee & Shakes will be a new cornerstone for the Ann Arbor community.
III.- Market Analysis
Market Segmentation
On Point Coffee & Shakes, LLC will offer a variety of specialty coffee drinks and gourmet shakes with all organic and locally sourced ingredients. To ensure that the menu is appealing to all potential customers, the company has identified three distinct segments in the Ann Arbor market: students, faculty, and corporate travelers/commuters.
The following table identifies the characteristics of each market segment:
| Market Segment | Characteristics |
|---|---|
| Students | Young adults primarily from the surrounding University of Michigan community who are interested in specialty coffee drinks and inviting social atmosphere |
| Faculty | Middle-aged adults primarily from the surrounding University of Michigan community who are interested in high quality coffee and snacks |
| Corporate travelers/commuters | Adults of all ages commuting to/from the Ann Arbor area who are looking for a convenient and quality cup of coffee |
Target Market Segment Strategy
Our ideal customers will be individuals looking for an alternative to traditional coffee shops that are too far away, crowded, or expensive. Our target demographic will be young and middle-aged professionals, college students, and other individuals seeking a convenient, inexpensive and delicious cup of coffee. Our services will appeal to those looking for an easy, convenient way to have a delicious cup of coffee on a daily basis. We plan to focus on offering our services at office buildings, universities, business centers, and other workplaces.
Key Customers
The key customers of our coffee truck business will be early-risers, young professionals, and night owls. Our ideal customer archetype is a person looking for an easy, convenient way to get their daily coffee fix. These customers will be our main advocates and, in turn, help to drive revenue for the business.
Future Markets
Based on the market analysis in the previous sections, the potential market for the coffee truck business is strong. Demand for craft coffees has been steadily increasing, with more people seeking out quality products and specialty brews. Furthermore, the location of the coffee truck, combined with its diverse menu, means that it is likely to attract a wide cross-section of customers – ranging from busy commuters to those looking for a leisurely pick-me-up.
The business plan for the coffee truck is designed to maximize its potential by focusing mainly on premium craft coffees and small-batch blends. This “boutique” approach will position the business as a superior offering and should, in turn, attract additional customers. Furthermore, the plan also calls for ongoing investments in marketing and promotions, so as to ensure the coffee truck’s visibility in the community and further increase its appeal.
Competition
The Ann Arbor coffee truck market is quite saturated with options, so a thorough market analysis was conducted to determine existing customers and potential competitors. In addition, the pre-existing coffee truck businesses that are already in Ann Arbor are doing well and some of them might be considered as direct competitors. Here are the potential competitors identified for On Point Coffee & Shakes, LLC:
| Competitor | Location | Main Product |
|---|---|---|
| The Coffee Spur | Downtown Ann Arbor | Prepackaged whole-bean coffees, brewed coffee |
| Moo&Brew | Ann Arbor’s Southside | Espresso drinks, frappes, smoothies |
| Coffee & More | Near University of Michigan | Premium drip coffee, specialty espresso drinks |
| Brews Brothers | Near University of Michigan | Specialty lattes and cappuccinos |
The competition analysis shows that these companies focus on one or two types of drinks, and only some offer snacks. Therefore, with On Point Coffee & Shakes’ diverse menu of coffee, espresso drinks, shakes, and local snacks on offer, the company stands to gain a competitive advantage in the Ann Arbor coffee truck market.
IV.- Marketing and Sales Plan
Marketing Plan
On Point Coffee & Shakes, LLC plans to introduce Ann Arbor, Michigan to our specialty coffee truck in the spring of 2023. To ensure our potential customer base is aware of our products and services, we have developed the following marketing plan.
We will use a combination of organic and traditional advertising outlets depending on their affordability and ability to reach our target audience. Our organic outlets will include social media platforms such as Facebook, Instagram, and Twitter,as well as word of mouth campaigns.
We will also create targeted advertisements to display on popular apps and websites our customers use. Our traditional outlets will include pamphlets, radio and TV spots, billboards, and print advertising.
We will rely on customer loyalty to ensure our success and will offer incentives to repeat customers such as discounts, rewards cards, “buy-one-get-one-free” offers, and free samples of new products.
The estimated marketing costs for On Point Coffee & Shakes, LLC will be approximately $10,000 for the duration of the first year of business. As our business grows, we plan on increasing our budget for marketing and advertising in order to continue creating awareness.
The goals we have set for our marketing and advertising initiatives include creating awareness of our coffee truck, engaging with potential and current customers, and capturing leads. We will measure our success by tracking the return on investment (ROI) of our marketing efforts.
Sales Plan
Our goal is to make an estimated 20 sales each day at our coffee truck to reach our target weekly revenue goal. To achieve this, we will stay informed on market conditions and pricing strategies. We believe that, based on our current location in busy downtown area, our appealing menu and competitive prices, these sales figures are attainable. We will ensure that our capacity to store and display products is sufficient for our high volume anticipated sales. Moreover, we plan to use various types of online and offline marketing strategies to inform potential customers of our services.
Location and Facilities
On Point Coffee & Shakes, LLC will be located in Ann Arbor, Michigan, specifically near the corner of Main Street and State Street. This location is high-traffic, making it ideal for maximizing visibility for customers and creating an optimal drive-by customer experience. The premises of the business will include the coffee truck and a patio area with seating for up to eight people. The coffee truck will be equipped with two espresso machines, two grinders, two blenders, two ovens, and a refrigerated display case to store snacks and pastries. All equipment and facilities needed to operate the business will be purchased or rented as needed. The startup cost of the business will include the vehicle purchase, the necessary licensing and permits from the Michigan Department of Health and Human Services, business insurance coverage, and the rental costs associated with the patio area.
Technology
Our coffee truck business will utilize modern technology to ensure that our customers receive a pleasant and personalized experience when they visit us. We will utilize a range of mobile and website technology to streamline processes, increase efficiency, and provide personalized services. This technology will include:
- Online ordering system: This will allow customers to easily order their favorite beverages directly from our website or mobile app.
- Mobile payment system: Customers will be able to pay via credit or debit card directly on our mobile app.
- Real-time tracking: Customers will be able to track the location of our coffee truck in real-time.
- Customer loyalty program: Customers will be able to earn rewards for every visit or purchase.
We believe that this new technology will provide a unique and engaging experience for our customers, helping to make our coffee truck business stand out from the competition.
Equipment and Tools
The coffee truck business plan requires specific equipment and tools to produce and serve quality coffee products. Below is an outline of the required items and their associated costs for purchase or rental, in table layout:
| Equipment | Description | Cost |
|---|---|---|
| Coffee Maker | Commercial grade, steam pressurized coffee brewer | $2,000 to purchase; $20/day to rent |
| Coffee Pot | Large, thermal insulated, stainless steel thermos to keep coffee hot for up to 6 hours | $150 to purchase; $5/day to rent |
| Cash Register | Electronic point of sale system with a credit card reader | $1,200 to purchase; $25/day to rent |
| AutoGrind Grinder | Digital grinder with a touch screen for accounting ease | $800 to purchase; $10/day to rent |
V.- Management and Organization
Organizational Structure
The organizational structure for the coffee truck business plan outlines the roles and responsibilities of each employee and how information will be shared among levels of the organization. Specifically, the organizational structure will include a manager, baristas and delivery personnel. The manager will be in charge of the overall operations of the business. They will set goals, devise plans, and handle customer inquiries. The baristas will be responsible for the daily operations of the café, preparing coffee and other beverages, taking orders, and providing excellent customer service. The delivery personnel's job will include the responsible and timely delivery of items to customers. All employees will be expected to report to the manager and maintain communication.
Management Team
We anticipate taking on a number of high-level management positions within our company to ensure our success. Below is a table of potential candidates for each role. All of these individuals have experience in the coffee industry and have the skills necessary to help our business reach its goals.
| Position | Potential Candidate | Experience |
|---|---|---|
| General Manager | Tonya Wells | 6 years running small coffee shops |
| Operations Manager | Jordan Fisher | 5+ years working in logistics and inventory management |
| Marketing Manager | Karen Moore | 3+ years in PR and advertising |
These candidates represent our ideal team and will help ensure the establishment of our successful coffee truck business.
Management Team Gaps
Currently, the management team for the coffee truck business is comprised of two people, the owner and a business partner. There are a few areas that are currently not staffed. At this time, we do not have a marketing specialist, nor do we have a distribution specialist in place. In addition, there is a need for a technical person to ensure smooth operations of the truck and its equipment.
We are actively looking for individuals with the right qualifications to fill these gaps. We want to ensure that we have a team in place that offers the best skills and competence to meet the objectives of the business.
Personnel Plan
It is important to identify the personnel needed to effectively run the Coffee Truck business. Below is a table of potential positions, each with a brief description, that we believe will be required to help ensure the success of the business.
| Position | Description |
|---|---|
| Business Owner | Responsible for overall planning, management and decision-making. |
| Operations Manager | Oversees the daily operations of the Coffee Truck. |
| Customer Service Representative | Manages customer relations, provides advice, takes orders, and collects payments. |
| Barista | Prepares coffee and other drinks, handles customer orders and inventories supplies. |
| Marketing Manager | Develops and implements marketing strategies to drive Coffee Truck sales. |
Company History and Ownership
On Point Coffee & Shakes, LLC was founded in 2023 by a small team of entrepreneurs in Ann Arbor, Michigan. The team's vision was to create a mobile coffee truck that would provide customers with high quality specialty coffee drinks made with organic and locally sourced ingredients. After months of research, planning and testing, On Point Coffee & Shakes, LLC was officially launched in the spring of 2023 with a focus on providing the community with organic, humanely sourced coffee, espresso and shakes.
The business is dedicated to staying true to the founders' mission to create quality drinks with organic and locally sourced ingredients. On Point Coffee & Shakes, LLC is owned and operated by the founders, and it is their passion for coffee that drives the business forward. The founders are dedicated to ensuring that each and every experience with On Point Coffee & Shakes, LLC is a memorable one.
Milestones
To support our management and organizational strategy within our coffee truck business plan, we have developed a detailed roadmap of specific goals and objectives. In a table format, these milestones enable us to effectively manage and steer our business.
Our milestones include:
- Develop an organizational structure to delegate and assign tasks
- Create a system for inventory management
- Establish process for customer service
- Define Financial Protocols
- Identify potential suppliers
- Analyze data to understand customer satisfaction
These milestones, and the opportunities they create, are essential in our vision of a successful business.
Key Metrics
KPIs (Key Performance Indicators) that measure the overall performance and health of your business can help to ensure your coffee truck business is running as efficiently as possible. Examples of important KPIs for your business may include your daily profit and loss, the number of orders successfully fulfilled, the number of regular customers, and the number of customer reviews. Continuous tracking of these KPIs can help to identify areas of weakness and areas of opportunity in your business plan, and can help you gain insight into the performance of your business in the long-term.
What you Get With Coffee Truck Business Plan Package
| 6 Chapter Business Plan Template in MS Word | Free Pitch Deck Template in PPT |
| 5 Year Financial Model Template in MS Excel | Free Financial Dashboard Template in MS Excel |
| Immediate Download After Purchase | MAC &PC Compatible, Unlocked, NO VBA Macro |
| Bank/Investor/Grant Ready Package | No Accounting Or Financial Knowledge Needed |
VI.- Financial Plan and Metrics
Sales Forecast
The following projected sales table presents the estimated total receipts for our coffee truck business over the next three years. The projections assume a gradual increase in sales and take into account any seasonal variations that may occur.
| Year | Projected Sales (USD) |
|---|---|
| Year 1 | $50,000 |
| Year 2 | $60,000 |
| Year 3 | $70,000 |
Coffee Truck Financial Plan Key Inputs
Expenses
It is essential to understand the cost associated with starting and running a coffee truck business. This section outlines the expected or incurred costs necessary to start and operate the business. In order to better manage the startup and operational costs, we have created two tables that list the expenses that need to be taken into consideration.
Table 1 - Startup Costs
| Item | Cost |
|---|---|
| Coffee truck | $8,000 |
| Equipment | $2,000 |
| Legal / Accounting Fees | $1,500 |
Table 2 - Operational Expenses
| Item | Cost (monthly) |
|---|---|
| Coffee/ingredients | $500 |
| Insurance | $150 |
| Staff wages | $1,200 |
Financial Plan
This part of the business plan is where you present the three main financial documents of any startup: the income statement, the cash flow statement, and the balance sheet. Each of these documents will provide a crucial insight into the operational health of your business.
Your income statement will detail your expected revenue and expenses, providing you with an estimate of your business' overall financial performance. This is a particularly important aspect of entrepreneurial planning, as your profits will ultimately determine the success of your venture.
Your cash flow statement will provide information regarding the money that is actively moving in and out of the business, always a key factor when assessing the short-term fate of your business. Your balance sheet, on the other hand, will provide a snapshot of your business' financial status at any given moment, which is valuable when planning long-term strategies.
Coffee Truck Financial Plan Profit & Loss Statement
Coffee Truck Financial Plan Cash Flow Statement
Coffee Truck Financial Plan Balance Sheet Statement
Personnel Plan
In order to successfully run our coffee truck business, we plan to hire at least 3 employees who will be involved in the daily operations. Two employees will help prepare and serve drinks and food at the truck, while one will manage the financial accounting and ordering of ingredients. We plan to hire an experienced manager to lead our team, and all employees will receive an appropriate salary and benefits package, depending on their job title and experience.
All of our employees will be trained and will receive specific guidelines in order to ensure high quality customer service and satisfaction. We plan to provide ongoing training in order to keep our service at the highest standard. All employees will be held accountable for their assigned tasks, and we will set goals and expectations for them to achieve in order to improve our operations.
Our employees will be an integral part of our business and will be viewed as such. We will strive to create an enjoyable work environment, offering our employees opportunities for growth, and recognize their efforts.
Capital Requirements and Use of Funds
The capital requirements must reflect the amount of money needed to start and operate the coffer truck business. It is essential to specify a breakdown of the requirements upfront, to ensure that investors, lenders, and the business understand what is needed to start and maintain the business.
Estimates should consider start-up costs, such as building supplies and construction for the truck, associated equipment, marketing materials, and licensing and legal fees. Additionally, costs for ongoing operations such as product costs, payroll, and taxes must be accounted for as well.
It is important to clearly define the purpose and use of funds that are being sought from investors and lenders. All capital should be labeled explicitly and the intent of use should be clear. Knowing how the raised capital will be used will assist in securing investment by providing an understanding of the needs that must be met and how the funds will be allocated.
Exit Strategy
My coffee truck business plan has an exit strategy that involves passing the ownership of the business to a family member or employee. In the event of passing the ownership, I plan to ensure the new owner has enough information and support to manage the business and realize its full potential. I also intend to keep an active hand in the business and become a mentor, offering guidance and advice when needed.
I will set up exit criteria to ensure the smoothness and compliance of the transition. This criteria will take into account capital requirements, cash flows, customer retention and consistency in providing quality products and services. I will also provide assistance in setting up a team or system of staff to ensure the continuity of the business operations.
I also plan to explore potential options for an eventual sale of the business. I will stay informed about the industry and seek out potential buyers who fit the company’s profile. Potential buyers who share the same vision and goals for the business will be given Priority. In addition, I will build relationships with stakeholders and contacts to maximize the possibility of a successful sale.
