Sustainable Food Truck Business Plan

Running Head: KARMA TRUCK BUSINESS PLAN

The Karma Truck: A Business Plan

2012 Capstone Project

Kristin McGinnis

Marylhurst University

Prepared for SUS 598: Integrated Capstone Project

Instructor: Gregory Worden

March 18, 2012

KARMA TRUCK BUSINESS PLAN 3

Table of ContentsCopyright page................................................................................................................................ 2

Acknowledgements......................................................................................................................... 8

Executive Summary...................................................................................................................... 10

Karma Truck Business Plan.......................................................................................................... 12

History of Food Trucks............................................................................................................. 12

Modern Food Trucks................................................................................................................. 12

Detailed Description of the Karma Truck Business ................................................................. 13

Vision Statement....................................................................................................................... 13

Mission Statement..................................................................................................................... 13

SWOT Analysis ........................................................................................................................ 13

Business Model Canvas ............................................................................................................ 15

Customer Segments .................................................................................................................. 16

Key Activities ........................................................................................................................... 16

Key Resources .......................................................................................................................... 17

The Truck.............................................................................................................................. 17

Key Partners.............................................................................................................................. 18

Stakeholders.............................................................................................................................. 19

Market Definition.......................................................................................................................... 19

Consumer Preference ................................................................................................................ 20

Healthy & Local Food .............................................................................................................. 21

Food Truck Trends.................................................................................................................... 23

Starting a Food Truck Business ................................................................................................ 24

Demographics & Psychographics of Customer Segments........................................................ 25

Food Truck Market Size & Location ........................................................................................ 26

Current, Emerging, and Potential Competitors......................................................................... 27

Value Proposition.......................................................................................................................... 29

Value Proposition...................................................................................................................... 29

Sustainability............................................................................................................................. 30

Key Activities ............................................................................................................................... 31

Daily Management of Food Truck............................................................................................ 31

Sample Weekly Schedule. .................................................................................................... 32

Delivery of Products & Services............................................................................................... 33


Products & Services Offered .................................................................................................... 35

Menu ..................................................................................................................................... 36

Branded items. ...................................................................................................................... 36

Composting services. ............................................................................................................ 37

Disposable serviceware......................................................................................................... 38

Composting truck-side. ......................................................................................................... 40

Customer Relationships & Channels ............................................................................................ 41

Marketing Four C’s................................................................................................................... 41

Customer Solution .................................................................................................................... 42

Customer Cost........................................................................................................................... 43

Convenience for Customer ....................................................................................................... 43

Channels & Communication with Customer ............................................................................ 43

Advertising and marketing strategy ...................................................................................... 44

Marketing Three P’s ................................................................................................................. 46

People........................................................................................................................................ 47

Procedures for maintaining accounting records.................................................................... 47

Hiring and personnel policies. .............................................................................................. 48

Process: ..................................................................................................................................... 49

Physical Evidence ..................................................................................................................... 50

Environmental effects. .......................................................................................................... 50

Social effects. ........................................................................................................................ 50

Financial Forecast ......................................................................................................................... 52

Pricing Strategy/Cost Structure................................................................................................. 52

Revenue Streams....................................................................................................................... 52

Projected Break Even Point ...................................................................................................... 53

Start-Up Funds Requested from Bank or Investor.................................................................... 54

Monthly Operating Expenses.................................................................................................... 54

Fixed expenses. ..................................................................................................................... 54

Facility and truck expenses. .................................................................................................. 55

Commissary expenses. .......................................................................................................... 56

Salaries & wages................................................................................................................... 56

Workers compensation.......................................................................................................... 57

Variable Expenses..................................................................................................................... 57

Projected Income Statement ..................................................................................................... 58


Proposed timeline.................................................................................................................. 59

Monitoring, Evaluating, and Revising.......................................................................................... 60

Conclusion, Reflection, and Implications for Further Study ........................................................ 62

References..................................................................................................................................... 63

Appendices.................................................................................................................................... 70

Appendix A: Food Truck Features & Details ........................................................................... 70

Appendix B: Food Truck Picture .............................................................................................. 71

Appendix C: Current, Emerging, and Potential Competitors ................................................... 72

Appendix D: Colorado Crop Calendar ..................................................................................... 73

Appendix E: Sample Breakfast Menu....................................................................................... 74

Appendix F: Sample Lunch Menu............................................................................................ 75

Appendix G: Branding Item Expenses per Year....................................................................... 76

Appendix H: Disposable Serviceware Comparison.................................................................. 78

Appendix I: Disposable Serviceware from Eco Products, Inc.................................................. 80

Appendix J: Unit Cost.............................................................................................................. 81

Appendix K: Break-Even Analysis........................................................................................... 82

Appendix L: Start Up Costs...................................................................................................... 83

Appendix M: Usage Calculation of Disposable Serviceware................................................... 84

Appendix N: Income Statement Year One, 2013 ..................................................................... 85

Appendix O: Income Statement Years Two through Five (2-5), 2014 through 2017 .............. 86

Appendix P: Sales Increases by Year & Through Business Life Cycle ................................... 88


List of TablesTable 1: Business Model Canvas ....................................................................................................... 15

Table 2: Internal & External Stakeholders ......................................................................................... 19

Table 3: Sample Weekly Schedule..................................................................................................... 32

Table 4: Marketing Branding Sales, Year 1 ....................................................................................... 53

Table 5: Monthly Fixed Expenses, Year 1 ......................................................................................... 55

Table 6: Monthly Variable Expenses, Year 1..................................................................................... 57

Table 7: Karma Truck Launch Timeline ............................................................................................ 59

Table A 1: Current, Emerging & Potential Competitors ..................................................................... 72

Table A 2: Branding Items, Start-Up Needs & Costing ...................................................................... 76

Table A 3: Year One Branding Items; Estimated Amount to be Sold & "Cost of Goods Sold" ........... 76

Table A 4: Year Two Branding Items; Estimated Amount to be Sold & "Cost of Goods Sold"........... 76

Table A 5: Year Three Branding Items; Estimated Amount to be Sold & "Cost of Goods Sold"......... 77

Table A 6: Year Four Branding Items; Estimated Amount to be Sold & "Cost of Goods Sold"........... 77

Table A 7: Year Five Branding Items; Estimated Amount to be Sold & "Cost of Goods Sold" ........... 77

Table A 8: Recycled Content Cutlery Costing.................................................................................... 78

Table A 9: Plant Starch Cutlery Costing ............................................................................................ 78

Table A 10: Plantware Cutlery Costing.............................................................................................. 79

Table A 11: Disposable Serviceware from Eco Products, Inc. ............................................................ 80

Table A 12: Unit Cost Calculations ................................................................................................... 81

Table A 13: Average Menu Cost ....................................................................................................... 82

Table A 14: Cost Breakdown for Break-Even Analysis...................................................................... 82

Table A 15: Details on Break Even-Analysis, including Contribution Margin & Margin of Safety ..... 82

Table A 16: Start-Up Costs................................................................................................................ 83

Table A 17: Usage Calculation of Disposable Serviceware ................................................................ 84

Table A 18: Income Statement Year One, 2013 ................................................................................. 85

Table A 19: Income Statement Years Two through Five (2-5), 2014 through 2017............................. 86

Table A 20: Sales Increases by Year & Through Business Life Cycle ................................................ 88


List of FiguresFigure 1: Karma Truck with Tag Line ................................................................................................. 9

Figure 2: SWOT Analysis ................................................................................................................. 14

Figure 3: Industry Statistics on Employee Size (Author's Image) ....................................................... 27

Figure 4: Value Proposition............................................................................................................... 30

Figure 5: Sustainable Value Proposition ............................................................................................ 31

Figure 6: Karma Truck Daily Activity Breakdown............................................................................. 33

Figure 7: Branded Marketing Items ................................................................................................... 37

Figure 8: Marketing 4-Cs .................................................................................................................. 42

Figure 9: Marketing Mediums ........................................................................................................... 44

Figure 11: Marketing Strategy........................................................................................................... 46

Figure 12: Marketing 3-Ps................................................................................................................. 46

Figure 13: Karma Truck Employee Breakdown ................................................................................. 47

Figure 14: Employee Benefits ........................................................................................................... 48

Figure 15: Life Cycle Process of Food............................................................................................... 49

Figure 16: Life Cycle Process of Non-Food ....................................................................................... 49

Figure 17: Karma Truck Business Footprint (Author’s Image)........................................................... 51

Figure A 1: Truck Features (Author's Image)..................................................................................... 70

Figure A 2: #16 Mobile Kitchen Step. ............................................................................................... 71

Figure A 3: Colorado Crop Calendar ................................................................................................. 73

Figure A 4: Sample Breakfast Menu.................................................................................................. 74

Figure A 5: Sample Lunch Menu....................................................................................................... 75


Acknowledgements

First and foremost, I would like to acknowledge the fellow students who have been of the

utmost help to me throughout my graduate school journey at Marylhurst University: Julia Hall,

Keith Logan, and Kelsey Pauxtis-Thomas. My learning throughout the majority of my classes

was enhanced and maximized because of these three wonderful individuals. I would also like to

acknowledge the students who assisted in the peer review process for this business plan: Kerry

Mohondro, Westley Paxton, and Bann Mattson.

Secondly, I would like to thank the wonderful professors who aided in my learning

throughout my career at Marylhurst University, namely Darrel Burrell, John Cusack, and Greg

Worden.

Finally, I would like to thank my client, Rich Sabatowski, for providing valuable

feedback and guidance throughout the final process of completing this capstone.


The Karma Truck

Food with Flavor & Flair

That is good for YOU and the PLANET!

Figure 1: Karma Truck with Tag Line


Executive Summary

Research shows that consumers are demanding healthy food that is affordable, accessible,

and convenient. The Karma Truck will fill the needs of working professionals by providing a

food truck that is mobile and can travel to different parts of the Denver Metro Area. The Karma

Truck will provide attractive and flavorful food that not only satisfies the palate, but also

provides healthy and sustainable alternatives to what can be found elsewhere at other quick-

service restaurants (QSRs) or fast food establishments. Additionally, the service is quick,

convenient, and friendly.

The food truck trend has gained nationwide attention and popularity over the past five

years and predictions show a growing trend. Due to the dismal competition of food trucks in the

Denver Metro Area, the economic potential for the Karma Truck is great. Combine this with the

exceptional food of admired Chef Raul Salazar and the creative and well-managed marketing

strategies; the return on investment for the Karma Truck is impressive.

The founder of “The Karma Truck” created this five-year business plan to secure start-up

funding and to educate stakeholders and employees of the company’s vision, plans, and

processes. The company is still in the planning phase and intends to launch by Spring 2013. The

Karma Truck is not only concerned with the traditional bottom line, but the triple bottom line

(3BL) as well, which includes economic, social, and environmental concerns.

The Karma Truck anticipates year one sales of $200,987. In year one pre-bonus earnings

before interest, tax, depreciation and amortization (EBITDA) of 10% is expected. During the

growth stages of the business, years two through four, the profit margin is expected to increase to

27% in year two, 16% in year three, and 19% in year four (these are all percentages pre-bonus

and pre-EBITDA). Through the maturity stage, years four through ten, a steady 19% profit


margin is expected. The Karma Truck expects a net income of $20,000 in year two and three,

$40,000 in year four, and $30,000 each year after. In order to help finance start-up costs and the

first year's operating, marketing, and payroll expenses, the Karma Truck owners are looking to

secure a one-time investment of $115,000.


Karma Truck Business Plan

Food trucks are a hot trend in the United States. Over the last five years the food truck

industry has gained national consumer attention and research shows that the trend will continue

to grow. Food trucks have evolved over the past few centuries to what we see driving the streets

today.

History of Food Trucks

Mobile food, street food, street vending, and mobile street vending are all words to

describe the food truck industry. Loose terms used to describe food trucks are roach coach or

taco truck, but professional literature does not use these terms. Although only becoming a

mainstream industry in the last five years, mobile food has been around for centuries. In the

United States (U.S.) in the late 1800s, the “chuck wagon” was where cowboys gathered,

transported, prepared, and served their meals (Thompson, 2012). The wagons were fitted with

special compartments that helped to preserve food and keep it fresh for longer. The tail-end of

the chuck wagon had a flap that was lowered over a fire to cook food (Thompson, 2012; The

Food Truck Market, 2011).

Mobile food continued its journey to urban cities and military bases, where carts fed

hungry workers or military personnel. Since the 1960s, food vendors have been found in busy

cities selling hot dogs or tacos, and residential areas have come to know and love the sound of an

ice cream truck (The Food Truck Market, 2011).

Modern Food Trucks

Savvy food trucks, as they are seen today, have been transformed to implement the latest

in kitchen technologies combined with the convenience of a motorized truck (Mobile Food


Vending, n.d.). Trendy food trucks are now seen all over the country with modern, delicious

cuisines that are comparable to the best restaurants.

As this report will demonstrate, the Denver market shows a strong demand and consumer

interest for food trucks. At the current time the competition is minimal and there is strong

opportunity for emerging food truck businesses.

Detailed Description of the Karma Truck Business

The Karma Truck is a mobile food business that provides a food service to customers by

driving to and parking in given locations where the consumer can then walk up to the truck’s

window to order the food, wait for it to be prepared, and then enjoy the meal. Only food that is

good for the body and the planet will be served at the Karma Truck, but always with flavor and

flair.

Vision Statement

The Karma truck helps the working people of the Denver Metro Area live more

productive, happier, and healthier lives by providing quick, healthy, delicious and well prepared

food, served with good karma and a smile. The Karma Truck aspires to teach the community

that eating healthy and sustainably is both simple and affordable.

Mission Statement

To become the most popular food truck in the Denver Metro Area by providing quality

customer service and by serving the tastiest, healthiest, and most sustainable food available on

wheels, all for a reasonable price.

SWOT Analysis

It is the responsibility of the Karma Truck owners to understand and utilize all its

strengths within the market to capitalize on as many opportunities as possible. Environmental


scanning of local, regional, and national food trucks, business and consumer trends will ensure

that the Karma Truck stays ahead of the competition. At the same time, the Karma Truck must

also be conscious that internal weaknesses and external threats exist. Working proactively and

monitoring the variables in a timely manner will ensure that challenges to business operations are

met and surpassed with efficiency and effectiveness.

Figure 2: SWOT Analysis


Business Model Canvas

Table 1: Business Model Canvas

Key Partners

Managing Partner

Chef Partner

Joint ventures

Eco Products

Inc…paper and

plastic, silverware, etc

Organic food supplier

Collaborations with

Sustainable Food

Denver, Metro Denver

Farmers Market and

Colorado Fresh

Markets

organizations.

Key Activities

Food Preparation

Food Service

Marketing

Retail

Value Propositions

Convenience; speed of

service

High Quality Healthy Food

Accessibility

Consistency

Price

Sustainable

Offering your clients

consistently high quality

sustainable food, at a

reasonable price with

maximum convenience.

Customer Relationships

Personal Assistance with providing a sense of community.

Conduit for creating a sense of community surrounding the

truck

Medium customized, consumer, customer based

business….retail client and relationship driven.

“Friends….” Anti-McDonalds

Customer Segments

Niche Market: Health-conscious

consumer; LOHAS

Health conscious, good food

wanting, office workers who

desire speed, friendliness,

convenience and health.

Geographic specificity: North

Denver Highlands area,

Downtown Denver, Uptown

Denver, and the Denver Tech

Center in Greenwood Village,

CO.

Key Resources

Physical: Truck, High

Quality Food

Human: Key Chef;

Key Marketing

Manager

Intellectual: Internet

marketing platform

Intellectual: Brand

Channels

Communication: Blog, website, social media, flyer,

advertisement in papers, farmers market coalition

Distribution

Singular vehicular distribution truck

Sales: Face to face at the truck.

Cost Structure

Value Driven

High quality ingredients, quality & personal service

High fixed costs, vehicle costs

Revenue Streams

Income from sale of food on the truck

Income from sale of branding items

Fixed Menu pricing

FOOD TRUCK BUSINESS PLAN 16

Customer Segments

The Karma Truck caters to a niche market: the health conscious consumer. More

specifically, the market segment that is used to describe these individuals is known as LOHAS,

which is an acronym for Lifestyles of Health and Sustainability. This market segment is

“focused on health and fitness, the environment, personal development, sustainable living, and

social justice” (LOHAS, 2010, para. 1).

The Karma Truck also targets customers that wish to have a healthier diet but claim they

do not or cannot due to affordability and accessibility. The service and product provided by the

Karma Truck are tailored to the health conscious consumer who is looking for a meal that is

accessible, convenient, and prepared quickly. The service times and location for the food truck

have been designed to serve primarily the traditional 8am-5pm business person. Providing

breakfast and lunch service, the menu and service style meets the needs of working people that

have limited time to grab a healthy meal. The geographic location of the target customer is the

North Denver Highlands area, Downtown Denver, Uptown Denver, and the Denver Tech Center

in Greenwood Village, CO.

Key Activities

The key activities for a food truck business involve the food preparation, food service,

and marketing. Marketing falls into a few areas of the business model canvas, but it is primarily

a vital key activity because unlike a business with a traditional store-front, the food truck is

mobile and does not stay in the same place. Daily marketing is an absolute necessity to

communicate to the customer where they can find the truck at any time. Without robust

marketing strategies, there would be limited food sales and food preparation would go to waste.


Retail items will also be for sale at the food truck, such as: reusable bags, reusable water

bottles, and t-shirts. These items not only promote sustainability, but promote the Karma Truck

as well. Customers who bring their Karma Truck-branded reusable bag or water bottle when

they purchase a meal will receive a discount.

Key Resources

The food truck business plan includes physical, intellectual, and human elements. The

physical elements include the truck itself, complete with the kitchen equipment: refrigeration,

holding, and cooking equipment. High quality food is another physical element that is

imperative to running the business. Intellectual elements include the Karma Truck brand

strength and an Internet marketing platform with connections to customers. All elements of the

Internet marketing platform will be used on a daily basis to connect with current customers and

to gain new customers. The owners, who will run the operations of the truck, are the key

resources that fall under the human element. The President/Marketing Director and the Vice-

President/Chef have 25 years combined experience which demonstrates the valuable intellectual

element vital to a successful business.

The Truck.

The truck will be designed and built from All A Cart Manufacturing, Inc. in Columbus,

OH. The price of the truck will be $69,890. The truck is a hybrid-electric vehicle. According

to Easton Corporation, a leader in hybrid technologies for commercial vehicles, the definition of

a hybrid is “a vehicle that uses two or more distinct power sources to move” (Eaton Corporation,

2102, para. 2). Eaton Corporation explains that the creation of a hybrid commercial vehicle

involves “[combining] a vehicle’s traditional internal combustion engine with an electric motor

or a hydraulic launch assist system to move the vehicle forward and then through regenerative


braking the system recharges itself” (Eaton Corporation, 2102, para. 2). See Appendix A for

details on the truck’s features and Appendix B for a picture of the actual food truck.

Key Partners

The business will have two partners: the President who will manage all business and

marketing, and the Vice-President, who is also the Executive Chef. Raul Salazar, the Vice

President/Chef, has 15 years of management and culinary experience in all types of cuisine,

including upscale fine-dining. The local Denver Westword Paper has recognized the

extraordinary talents of Chef Raul Salazar. Chef Salazar brings forward world-class culinary

skills, as well as exceptional management, organization, and communication skills.

The managing partner, Kristin McGinnis, has 10 years of front of the house (FOH)

restaurant management experience, ranging from catering to quick service to fine dining.

Bringing forth well-rounded experience and expertise in administration, marketing, finance, and

management, Ms. McGinnis is a valuable human asset to the business. Furthermore, she is

obtaining a Masters of Business Administration degree in Sustainable Development from

Marylhurst University in June 2012.

Further key partners include collaborations with suppliers, local sustainable

organizations, and competitors. Collaboration goes hand in hand with sustainability, yet requires

more long-term focus (Rosen, 2011). Networking and collaborations are relationships that must

be valued, nurtured, and grown. Karma Truck will collaborate with as many local sustainable

organizations, for-profit or non-profit, as possible. For instance, Sustainable Food Denver,

Metro Denver Farmers Market and Colorado Fresh Markets organizations are key connections

and collaborators.


Stakeholders

Table 2: Internal & External Stakeholders

Internal Stakeholders

Stakeholder Organizational Impact Priority

Kristin McGinnis Stakeholder/President/Marketing Director 1

Raul Salazar Stakeholder /Vice-President/Chef 2

To Be Determined (TBD) Investor/Bank 3

External Stakeholders

All A Cart, Inc. Food Truck Manufacturer 1

TBD Local & Organic Food Supplier 2

TBD Commissary 3

Eco Products, Inc. Disposables Supplier 4

TBD Hourly Staff 5

Alpine Waste & Recycling Composting Service 6

Factory Direct Promos Branding Items 7

Market Definition

The literature review for this business plan is focused on customer motivators and drivers

for how they make food purchasing decisions. The objective of the research obtained and

analyzed is to support the environmental scan of the market and competition, ensuring that the

Karma Truck is strategically positioned in the marketplace for success. The literature review

will touch on consumer preference, willingness to pay, healthy and local food, food truck trends,

starting a food truck business, the demographics and psychographics of customer segments, the

market size of the food truck industry, and current and emerging competitors.


Consumer Preference

When running a food establishment, business owners and marketing directors must

understand what drives their consumers purchasing habits’. Even beyond price, “each consumer

must choose a) where to shop and b) what to purchase once there,” states Thilmany, Bond, &

Bond (2008, p. 1303). In recent years, increasing interests in sustainability have begun altering

food purchasing trends. The word “Locavores” even became the New Oxford American

Dictionary’s word of the year in 2007 (Thilmany et al., 2008). The definition from Oxford

Dictionary online reads: “a person whose diet consists only or principally of locally grown or

produced food” (Oxford University Press, 2012, para.1). Consumers are now thinking and

inquiring more about what they put into their bodies; eating locally or organically are only two

examples.

The psychological theory examining this behavior is known as perceived consumer

effectiveness (PCE) and is analyzed in the report by Thilmany, Bond, & Bond (2008). PCE

seeks to measure the extent to which a consumer believes his/her actions alone will achieve a

given goal. Thilmany et al. carried out studies on PCE and grouped the survey respondents by

their shopping preferences: direct occasionally, direct always, or no preference. This was

determined by where the respondents conducted their primary, secondary and seasonal purchases

and whether they purchased their food direct from the source occasionally, always, or had no

preference. More than 50% of survey respondents fell into the ‘direct occasionally’ category,

whereas 30% were classified as ‘direct always’ and 20% had no preference (p.1305). The survey

summarizes that ‘direct always’ respondents were motivated by supporting local businesses, as

well as the marginal impact of nutrition and freshness of the food products.


One conclusion drawn from Thilmany, et al. (2008) is that certification programs, such as

the United States Department of Agriculture (USDA) organic program, are less effective than

buying direct from the source, especially with ‘direct always’ consumers. This is due to the

complex food and purchasing chain and the perceived trust of the product.

Similar literature by Blake, Mellor, & Crane (2010) explain that “place” is an important

part of the food system, or food chain. Place “helps to define what foods are consumed and how

people value and engage with these foods” (Blake, et al., 2010, p.412). This report also analyzes

the effects of convenience on consumers’ food purchasing, referencing Retail Restructuring and

Consumer Choice by Jackson and his colleague. The research concluded that consumers view

convenience as an important component of a shopping experience. The consumes surveyed

stated that convenience meant “being able to purchase everything at one time, being able to park

easily, being close to home, or being on the way to or from some destination where they must be

for some other activity” (Blake, et al., 2010, p.413). Although the people surveyed for this

article are from the United Kingdom, the data is nonetheless relevant to purchasing habits of

consumers in the United States.

Healthy & Local Food

The healthy food movement has gained attraction in the last decade thanks to such

documentaries as Food, Inc. and books such as In Defense of Food by Michael Pollan (Kenner,

2008; Michael Pollan, 2010). Michael Pollan’s mantra is to eat real food, “the sort of food our

great grandmothers would recognize as food” (Michael Pollan, 2010, para. 2).

The documentary Food, Inc., in particular, has lifted the veil on the production of many

of the food produced in the United States (U.S.). Food, Inc. touches on three main U.S. food

production companies: Monsanto, Smithfield, and Tyson. These companies are notorious for


using marketing and branding to depict a picture that shows happy workers and well-cared for

animals that are treated humanely and are fed meals as nature intended (i.e. grass for cows).

Marketing of companies such as Monsanto, Smithfield, and Tyson creates a picture of a

company who is doing its part to take care of the environment. Food, Inc. showed the public that

this could not be further from the truth. In the film, journalist and author Eric Schlosser states

that there is a “world deliberately hidden from us” (Kenner, 2008).

Through the documentary, Americans were encouraged to vote with their forks every

time they sat down for a meal. Meaning, if Americans continue to demand healthy food that has

been produced responsibly, socially and environmentally, then food producers will be forced to

listen or they will be pushed out of the marketplace.

Eating trends among Americans have already changed for the better. Food trends for

2012 show that American’s are increasing their demand to know where their food comes from –

the farm to fork journey, as it is also referred – and are demanding food that contains less sugar

(Lempert, 2011).

Time Magazine states that, “[among] food purists, ‘local’ is the new ‘organic,’ the new

ideal that promises healthier bodies and a healthier planet” (Cloud, 2007, para. 3). With

increasing knowledge of sustainability, consumers are starting to think more about what they put

into their bodies and how their food purchasing decisions affect the planet.

Water and food scarcity issues have gathered global attention. Vast amounts of water

and land are required to grow food and raise livestock. Agriculture alone demands 100 times

more water than a human requires for personal use (Lenntech, 2009). Chronic hunger is

currently affecting 15% of the worlds’ population and with the population to reach 9.1 billion by


2050, continued solutions for sustainable food production must be found (IFAD, 2011; GWP,

2010). Eating locally is just one way to help ease the pressures of commercial agriculture.

Food Truck Trends

Studies and reports reveal that the food truck trend is one that is here to stay. The food

truck movement was hottest in the year 2010. The trend was highlighted by emerging television

shows, such as The Great Food Truck Race on Food Network. In 2012, food trucks will remain

a strong trend according to Barclay (2011) from NPR online. According to the article by

Barclay, “Here comes the food trend lists,” 59% of the customers surveyed in a recent National

Restaurant Association survey stated that they would likely visit a food truck.

Likewise, Barker (2011) from USA Today also supports the hypothesis that food trucks

will likely continue to be a hot trend in 2012. Upscale, trendy food trucks will be the ones to

survive, not “construction-site coffee wagons and roach coaches,” states Barker (para. 4).

Lempert (2011) of Supermarket news concurs with the trend of food trucks continuing strong.

Lempert explains that food trucks are a solid business, not just because of convenience, but

because they provide a sense of community. With more than 30% of the U.S. workforce

consisting of independents, Lempert explains that they are looking for a “shared food

experience” and do not want to eat alone. A food truck fills this void, as customers gather to eat

and talk in a casual and convenient setting. Social communities such as Yelp, Foursquare, and

GoWalla show that individuals are enjoying joining in on “groups.” Combine this with an

activity that everyone must partake in every day – eating – and you have a successful

combination. Lempert also presents that ethnic food trucks are a top trend for 2012. Additional

trends are also presented that will be incorporated into this business model. The trends include:

Rising food costs


Baby boomers remaining as the largest food influencers and purchasers

Farm to fork awareness increasing with emphasis on a personal connection with

the farmer

Consumers are looking for products that contain less sugar (Lempert, 2011).

Furthermore, Barclay (2011) indicates another trend for 2012 is vegetable desserts, which is

incorporated into the food truck menu.

Starting a Food Truck Business

Tanyeri (2011) offers many tips on opening up a successful food truck business. The tips

include:

Do not go cheap on the truck or the equipment inside

Focus on one or two key menu items that differentiate the brand and do not get

too carried away with offering too many items

Ensure that the food meets the clientele, meaning it should be “tasty, simple,

filling, and affordable”

Do not rip-off another business’ idea

Make sure to play fair when choosing where to park the food truck as to not

tarnish the business name

Rely heavily on social media as a means to communicate to consumers (p. 29).

Conversely, Flandez (2009) suggests that new food truck business owners buy a used

truck rather than forking out a lot of capital on a new truck. This Wall Street Journal article does

not discuss the pros and cons of spending money on a new truck, as Tanyeri (2011) explains

when details are given that in the long run it is wiser to not be cheap on the main asset of the


business: the truck. Tanyeri explains that the truck will be out operating in the elements, where a

flat tire, car accident, or a propane tank going down can happen at any time. Unlike a restaurant

that has other means of operating if one component breaks down, if the food truck breaks down

in any one way, it has to be closed for business part or all of that day. Flandez offers additional

advice for starting up a food truck business. Similar to Tanyeri, Flandez also advises that

location is key, expanding further to explain that some food truck owners even purchase a

parking lot so that they are guaranteed their “real estate” for operating the business. This way,

no one can “steal” your parking spot and customers always know where you are. Lastly, both

Flandez and Tanyeri explain that social media is an absolute must for any food truck operator.

Due to the fact that the business is mobile and can literally move anywhere, it is vital to keep

consumers updated frequently (on a daily basis, or more) on where they can find the truck.

Although the inception of the mobile food business in the U.S. began with cowboys, it

has been transformed over the last century. The food truck in the 21st century is now a complex,

well-respected business model. All of the literature reviewed for this business plan supports the

background, design, and implementation of a solid food truck business plan.

Demographics & Psychographics of Customer Segments

Based on surveys of the 215 million adult population in the United States, the LOHAS

market is estimated at 41 million adults, or one out of four adults (LOHAS, 2010). The City and

County of Denver, not including surrounding suburban areas, has a population of 554,636. Of

this population, 24.5% are 19 years and younger, bringing the total adult population to 418,750

(Area Connect, LLC, 2012). Using the LOHAS statistics, this deduces the LOHAS population in

Denver to 104,687 adults.


Denver is known as one of the “thinnest” cities in the United States. Although many

cities report that their adults have weight issues, less than 20% of adults in Denver are reported

as being overweight. Denver also has one of the highest populations of baby boomers in the

nation, only less than two cities: Anchorage, AK and Santa Fe, NM (Home to Denver, LLC,

2011). Both of these demographics show an affinity towards eating healthy. The median

income of the Denver population is $39,910 and the number of men is almost exactly equal to

the number of women (Home to Denver, LLC, 2011).

Food Truck Market Size & Location

The U.S. Census Bureau codes the industry statistics for mobile food services as NAICS

722330. The most recent census conducted on this industry was in 2007 (US Census Bureau,

2011).

According to the 2007 U.S. census, there were 1,930 mobile food service establishments

which generated $570,063,000. Of these establishments, the annual payroll was $113,654,000

for 6,706 paid employees, which yields an average of $16,948 per employee. Of the 1,930

mobile food service establishments, only 1,143 are operated for the entire year, generating

$121,922,000 of the $570M (US Census Bureau, 2011). See Figure 3 below for a pie chart of

the industry statistics on employee size.


Figure 3: Industry Statistics on Employee Size (Author's Image)

Most establishments are run with a single employee, 42.1% to be exact, whereas 16.4%

operate with two employees, 15.2% with three to four employees, 7.8% operate with five to six

employees, and the trend continues to decrease as the number of employees goes up. These

percentages are based upon only the establishments that operate year round (US Census Bureau,

2011).

Current, Emerging, and Potential Competitors

There are approximately eighteen (18) competitors in the local Denver food truck market.

The majority of food trucks in the Denver are all very new to the marketplace, most being

established after the year 2009. Of these, only seven (7) are direct competitors of the Karma

Truck. The trucks that are considered indirect competitors are trucks that operate solely for

private events or that their concepts do not match that of the Karma Truck. The price average for

most food trucks ranges from $2 to $7, and some trucks menu items go as high as $9. The main

issue found with the majority of food trucks, regardless of their level of competition threat, is

Industry Statistics on Employee Size

One Employee

Two Employees

3-4 Employees

5-6 Emplyees

7-8 Employees

10-14 Employees

15-19 Employees

20-49 Employees

50-99 Employees

100+ Employees


that it is difficult to track down where the food trucks are currently operating. Only some food

trucks have websites and Facebook pages, of which most are only occasionally kept up to date.

This is a major concern, yet an advantage for the Karma Truck, because even if the brand name

of the truck is well known, tracking down where to locate and buy their products is a challenge.

As a consumer, if the product cannot be located in a reasonable amount of time, they will go

elsewhere. Additionally, only some trucks have links to other pages, such as Yelp (see Appendix

C for specific details per truck).

The direct competitors of the Karma Truck include: Steubens, Biscuit Bus, Pince Tacos,

and Biker Jims, The Denver Cupcake Truck, and Pizza on the Platte Mobile. The concepts of

each of these food trucks is geared around comfort food. Surprisingly, the strongest competition

is the food trucks that have emerged most recently. Steubens and Biker Jims both entered the

marketplace in 2011 and have solid marketing and brand recognition. This is in part due to their

sister brick-and-mortar restaurants also located within the Denver metro area. This is also true

for the Biscuit Bus, which also has a restaurant under the same name. Even though the name

says “dessert”, the The Denver Cupcake Truck is a direct competitor because they also sell

sandwiched and salads, target working business people, and have well-organized marketing

strategies using their website, Facebook, Twitter, and other means.

The indirect competitors are: Gastro Cart, Brava Pizzeria della Strada, Sugar Lips Mini

Donuts, The Crepe Crusaders, and Walnut A-Go-Go. The Gastro Cart and Brava Pizzeria della

Strada are not mobile trucks, rather they are mobile food carts that move around the downtown

Denver area during the week. Sugar Lips Mini Donuts sells only donuts and although Walnut A-

Go-Go is listed on the Denver Food Trucks Website there were not any other reference as to

where the business can be found. From the name, The Crepe Crusaders, it would appear that


they are a direct competitor, as they also serve breakfast. This truck only does private events,

however, so this would not threaten the market of the Karma Truck.

There is one emerging competitors that the Karma Truck should be mindful of: Blue

Bear. This truck serves sustainable food that is also comfort food, such as locally-sourced bison

lamb-sliders, and chicken drumettes. They also have a lower price point than the Karma Truck,

with prices averaging $3 to $4.

Value Proposition

By offering healthy and sustainable food at a competitive price, the Karma Truck

provides the solution of convenience to consumers in the Denver area. The value proposition

also reaches beyond the consumer, providing sustainable solutions to many of the environmental

and social problems that are present on a local, national, and global level.

Value Proposition

The Karma Truck is a value-driven business that provides convenience, accessibility, and

consistently high quality sustainable food at a reasonable and competitive price. The Karma

Truck provides convenience and accessibility to the customer in two ways: by driving directly to

their place of work and by providing healthy meals prepared quickly that can be eaten with the

community surrounding the truck or taken with them back to their workplace or home. The food

truck will also provide food that is consistent in quality and price. Consumers can rely on the

Karma Truck to provide food that is affordable, fresh, high quality, trendy, delicious, and

sustainable.


Figure 4: Value Proposition

Sustainability

The Karma Truck has the potential of having significant positive social and

environmental impacts in and around the Denver area. The Karma truck will help reduce

automobile emissions on the consumer end, by reducing how many consumers have to drive to

pick up their morning or afternoon meal. The Karma Truck, using a hybrid engine, will also use

fewer emissions to bring the product to the consumer.

Providing sustainable food options, sustainable disposable serviceware, eco-friendly

branded items, and composting will educate consumers and promote sustainable habits within

the Denver area.

Value

Convenience

Accessibility

Friendly

Sense ofCommunity

ResonablePrice

Quality Food


Figure 5: Sustainable Value Proposition

Key Activities

This section will provide details of all key activities of the Karma Truck. Each key

activity has been strategically planned to meet the demands of consumers, sustainability

demands, demographics, and trends within the food market and food truck market. Furthermore,

the President has strategically planned activities to optimize on competitors’ weaknesses and to

be more attractive than the strengths of competitors.

Daily Management of Food Truck

The Karma Truck will operate for breakfast and lunch service every day but Sunday. The

truck will operate in rotating locations Monday through Saturday. The location for breakfast will

vary from the location for lunch every day to maximize the potential customers and sales for the

day. Each week will not be the same, as there are 35 different locations where the Karma Truck

Sustainability

SustainableFood

Hybrid Truck

Composting

Compostable& Post-

ConsumerServiceware

Eco-FriendlyBranded

Items


can legally operate in Denver County. The daily and weekly schedule will be revised based on

sales and consumer demand.

It will take approximately three to six months for the President to determine and weigh

out the best operating locations for the truck. After this time, the Karma Truck will make a set

two-week schedule for customer ease and revenue maximization.

Sample Weekly Schedule.

Table 3: Sample Weekly Schedule

Day Breakfast Location Lunch Location

Monday Tamarac & I25 (SW 163) Yale & Colorado Blvd, University Hills(SE 115)

Tuesday 18th & Downing, adjacent to St.Joseph’s Hospital (NE 002)

52nd & Federal, adjacent to RegisUniversity (NW 046)

Wednesday Exposition & Colorado Blvd.,Belcaro Shopping Center (SE 062)

Cherry Creek South & Colorado Blvd,Cherry Creek Shopping Center (SE 049)

Thursday 1st & Lowry, East Lowry (SE 032) Mississippi & Havana (SE 199)

Friday University & I25, adjacent toDenver University (SE 086)

Broadway & Alameda (SW 029)

Saturday Colfax & I25, East (SW 004) 26th & Zuni, South Highlands and adjacentto Mile High Stadium (NW 011)

The Karma Truck will maximize customers and sales by strategically choosing parking

locations that pair with popular Denver events, such as the Taste of Colorado, concerts, Bronco’s

games at Mile High Stadium, Rockies’ games at Coors Field, and so forth. The Karma Truck

will also work private events, upon request.


A kitchen will be rented for the majority of the food preparation (prep). The remainder

of the food prep will be done on the truck during operating hours. Breakfast operating hours are

from 8am-10am and lunch from 12pm-2pm.

Immediately following lunch service, clean-up will be conducted and the truck will be

refilled with gas. After the truck has been parked for the night, administrative items will be

taken care of, this includes: food purchasing by the chef and marketing duties and supplies

purchasing by the manager.

Figure 6: Karma Truck Daily Activity Breakdown

Delivery of Products & Services

The Food Truck Guide by the City & County of Denver (2011) provides specific rules

and regulations to operating a food truck in Denver. Within City and County limits of Denver, a

food truck can be parked a) on the street, b) on private property, c) in a public park, or d) as part

of a large public event. A business license is required for each of these areas and a zoning permit

is required if operating at any location more than 30 minutes. Furthermore, the truck may only

5am-7am

• FoodPrep/Travel toLocation

8am-10am

• BreakfastService

10am-11am

• FoodPrep/Travel tolocation

12pm -2pm

• LunchService

2pm-3pm

•CleanUp/Drive toOvernightPark

3pm-4pm

• Admin/Marketing


be parked in approved zoning areas. If operating for less than 30 minutes a zoning permit is not

required and the truck can be parked in any area, regardless of zoning.

The approved zoning areas for Denver include: all downtown areas except “Golden

Triangle, Arapahoe Square and Civic Zone Districts (D-GT, D-AS, D-CV)”, and other locations

throughout the city in zones “S-CC, S-MX, E-RX, E-CC, E-MX, and C-MX, industrial, and OS-

B” (City & County of Denver, 2011, p.3). Zoning areas do not include residential areas. The

complete list of approved zoning sections where the Karma Truck will operate are:

A. 18th & Sherman, Uptown (NE 001)

B. 18th & Downing, adjacent to St. Joseph’s Hospital (NE 002)

C. 17th & York, adjacent to City Park (NE 003)

D. 26th & Welton, Five Points (NE 024)

E. 26th & Zuni, South Highlands and adjacent to Mile High Stadium (NW 011)

F. Interstate I-25 (I25) & 32nd, East Highlands (NW 017)

G. 29th & Speer, West Highlands (NW 018)

H. Pecos & 52nd (NW 045)

I. 52nd & Federal, adjacent to Regis University (NW 046)

J. Colfax & Monaco (SE 008)

K. 8th & Monaco (SE 015)

L. 6th & Broadway (SE 023)

M. 1st & Lowry, East Lowry (SE 032)

N. 6th & Yosemite, West Lowry (SW 033)

O. Cherry Creek North & Colorado Blvd, Cherry Creek Shopping Center (SE040)

P. Cherry Creek South & Colorado Blvd, Cherry Creek Shopping Center (SE049)

Q. Leetsdale & Monaco (SE 058)

R. Leetsdale & Quebec (SE 058)

S. Exposition & Colorado Blvd., Belcaro Shopping Center (SE 062)

T. University & I25, adjacent to Denver University (SE 086)

U. Colorado & I25 (SE 094)


V. Evans & Monaco (SE 097)

W. Yale & I25 (SE 104)

X. Yale & Colorado Blvd, University Hills (SE 115)

Y. Hampden & Monaco (SE 122)

Z. Hampden & I25 (SE 124)

AA. Hampden & Happy Canyon (SE 124)

BB. Tamarac & I25 (SW 163)

CC. Alameda & Havana (SE 190)

DD. Mississippi & Havana (SE 199)

EE. Colfax & I25, East (SW 004)

FF. Colfax & I25, West (SW 005)

GG. 10th & Osage (SW 013)

HH. Broadway & Alameda (SW 029)

II. Morrison Road between Sheridan & Federal (SW 036)

The complete zoning map for each of these areas can be found in the attached appendices. The

folder labeled “Appendices: Zoning Maps” contains the relevant PDF files.

Furthermore, city and county regulations state that the food truck may operate for a

maximum of four consecutive hours in one location, and only between the hours of 8am and

9pm. In addition, only one mobile food operation may be in one zoning area at a time and it

must be at least 200 feet away from any other food or drinking establishment, which includes

other food trucks (City & County of Denver, 2011).

Products & Services Offered

The Karma Truck will provide fresh, high quality, sustainably produced and sourced

produce and meat products. The Karma Truck will make every effort to limit any food that was

produced using Genetically Modified Organisms (GMOs). Eating food that contains absolutely

zero GMOs is no easy task, as shown by the popular blog A Month without Monsanto, where


author April Davila tracked her daily life by eating no food containing GMOs and using no

products using GMOs (Davila, 2010).

Produce will be sourced from all local Colorado farms. Additionally, the menu will be

geared around the seasonality of local produce (see Appendix D for the Colorado Crop

Calendar). Meat will be limited on the menu. Any meat that on the menu will be locally

produced, humanely raised, and ensured that the animals are not fed any artificial hormones or

antibiotics.

Menu

There will be two tiers of menu pricing: “Green” and “Greener”. “Greener” items will be

less expensive as they have a lower carbon footprint than menu items on the “green” menu. As

shown by Appendix E, for breakfast, the price of menu items under the green menu will be $6.00

and menu items that are greener will be priced at $4.00. The greener menu for lunch will be

$7.00 and the green menu will be two dollars more at $9.00 (see Appendix F). While customers

are inherently programmed to make many of their food purchasing decisions due to price,

through the Karma Truck’s menu offerings, the consumer is given a price incentive to eat

“greener.” Reference Appendices E and F for sample breakfast and lunch menus.

Branded items.

The Karma truck will sell eco-branded products, as part of the marketing strategy and to

increase awareness of sustainability. The eco-branded products include: reusable canvas bags,

stainless steel reusable water bottles, and t-shirts. Factory Direct Promos will provide these

products; the company is Global Organic Textile Standard (GOTS), Fair Trade, and ISO 9001

certified (Factory Direct Promos, 2012; International Working Group on Global Organic Textile

Standard, 2010). Purchasing price details and estimated usage for the branded items can be


found in Appendix G, Table A2-A7. The Karma Truck logo will be fixed on each of the items

shown below.

BambooBiodegradableBags

25 oz.Stainless SteelBottle withCarabineer

Eco Shirts

Figure 7: Branded Marketing Items

Composting services.

To support, encourage, and teach more sustainable habits, composting services will be

available at the Karma Truck. The services are not only for the customer to dispose of food

waste and other compostable materials, but also for the kitchen’s use and reducing the overall

carbon footprint of the Karma Truck.

Mojo (2001) noted that approximately 26.9 million tons of food waste is sent to landfills

annually, according to the U.S. Environmental Protection Agency’s (EPA) 2003 Municipal Solid

Waste Characterization (p.291). Additionally, over 15 million tons of paper packaging and over

10 million tons of plastic packaging are sent to landfills each year (Mojo, 2001, p.291).

Through eight years of research and testing, the American Society for Testing and

Materials (ASTM) developed criteria and labeling standards for compostable products. The

criteria are as follows:

Disintegration: Materials must disintegrate rapidly under composting conditions,

so that they are not visible in the finished piles, nor do they wind up on the

screens.


Biodegradation/mineralization: Materials must biodegrade quickly and

completely during composting or shortly after the finished product is used.

Rate: Both of these processes must occur at an acceptable rate, one that is

consistent with the other materials and the composter’s expectations.

Safety: The disintegration and biodegradation must not generate any toxic

compounds that will destroy the utility of the compost. Nor must the products

contain high levels of regulated metals (Mojo, 2007, p. 291-292)

The Biodegradable Products Institute (BPI), in collaboration with the U.S. Compostable

Council, regulates the “Compostable Logo” (Mojo, 2007, p. 293). Any products desiring to use

the logo must be tested in approved third-party laboratories to ensure compliance with the ASTM

criteria.

Disposable serviceware.

Plastic knives, forks, and spoons; paper or Styrofoam plates; plastic or Styrofoam cups;

and paper napkins are common among quick-service restaurants (QSRs). Many QSRs use

disposable service-ware due to its convenience and low cost. The environmental impacts of

using non-sustainable service-ware are immense.

Petroleum is used to make plastic and approximately 4% of the world’s oil production is

used solely for plastic production. Chemicals in traditional plastics, such as bisphenol A (BPA)

which are known to cause adverse reproductive health effects, are absorbed by the human body

through direct exposure and through indirect exposure when food or beverages absorb the

chemicals from the plastic food packaging. Nearly 93% of American’s have “detectable levels

of BPA in their urine”, as reported by the United States Center for Disease Control (CDC)

(Knoblauch & Environmental Health News, 2009, para. 15).


Traditional plastic not only poses health risks to humans, it also puts undue stress on the

environment. Plastics dumped into landfills are known to emit dangerous chemicals into the

groundwater. If the plastic is not disposed of properly it tarnishes the natural landscape, and

threatens animal and marine life, as they can be harmed or killed from ingesting plastic or from

becoming tangled or trapped by it (Knoblauch & Environmental Health News, 2009).

Styrofoam, or polystyrene foam, is another form of plastic that is widely used in the food

industry due to its quality insulation properties. Styrene, the basic chemical building block of

polystyrene, is known to cause severe environmental health concerns. The Environmental

Protection Agency (EPA) and the International Agency for Research on Cancer (IARC), have

classified styrene as a possible carcinogen. Research shows that chronic exposure to styrene

causes damage to the central nervous system and acute exposure causes skin irritation,

respiratory issues, and gastrointestinal issues. Just like BPA, the toxic chemicals in Styrofoam

leach into the food or beverage they are holding and the environment suffers the same effects, as

from plastics, when sent to landfills or when disposed of improperly (Earth Resource

Foundation, n.d.)

Eco Products, Inc., a company based in Boulder, CO, makes disposable products that are

sustainable, as well as approved by the ASTM and BPI. If the plastic or paper disposable is not

compostable by ASTM standards, the product is made from post-consumer products. All

disposable products to be used by the Karma Truck will be purchased from the local company

Eco Products, Inc. (Eco-Products, Inc., 2011b).

The plastic utensils to be used are “plant starch cutlery,” which is made from “70%

renewable materials”, as “compared to traditional cutlery that is made from 100% virgin

plastics” (Eco-Products, Inc., 2011b, para.1). Eco Products, Inc. also offers “recycled content


cutlery” and “plantware cutlery,” however the “plantware starch cutlery” was chosen due to a

balance of cost and sustainability (see Appendix H, Table A8-A10 for cost breakdown by type).

The plantware napkins are made from 100% post-consumer recycled materials. Soup

bowls are made with 24% post-consumer recycled materials and are fitted with EcoLids® that

are made from 25% post-consumer recycled materials. Square sugarcane plates will be used for

the majority of menu items. These plates are made from 100% reclaimed and sugarcane, a

rapidly renewable resource. They are also compostable by ASTM standards. For beverages, the

GreenStripe® cold cup will be used, which, just like the fitted lid, are made with a plant-based

plastic and are certified compostable. The unwrapped green straws that will be used are also

made from PLA corn plastic and are certified compostable (Eco-Products, Inc., 2011b). For

pictures of the disposable serviceware and additional details reference Appendix I.

Composting truck-side.

Composting will be provided to customers “truck-side” and be used by the Karma

Truck’s staff for food waste and other compostable items. The vendor that will be used for this

service is Alpine Waste & Recycling. The following items are accepted by this composting

program:

Food Waste Coffee Grinds & Filters Cardboard (including waxed) Produce

Plants & Flowers

Paper Napkins/Paper Towels

Pizza Boxes/Paper Board

Wooden Stir Sticks

Compostable Dinnerware

Paper Bags

Waxed Paper

Compostable Trash Bags (Alpine Waste & Recycling, 2012, para. 2)


Alpine Waste & Recycling will provide three 68-gallon totes with lids and will provide

weekly pick-up services. Alpine Waste & Recycling takes the compost pick up to large

composting facilities located in Bennett, CO (McCoy, 2012).

Customer Relationships & Channels

Anyone can sell a product, but what does it take to effectively market a product? The

basic functions of selling are marketing functions of the past, which include: product, price,

place, and promotion. These functions of selling are simply trying to get a product off the

shelves and the needs or preferences of the customer are not taken into consideration.

Marketing Four C’s

A strong marketing plan contains the seven revised components of the marketing mix:

customer solution, customer cost, convenience for the customer, communication with the

customer, people, process, and physical evidence. These seven components delve into the needs

and wants of the consumer, using the customer to guide the process of designing the product,

advertising, ensuring satisfaction, and continually looking for feedback from the consumer on

how to improve (Marcus, n.d.).


Figure 8: Marketing 4-Cs

Customer Solution

The Karma Truck provides healthy and sustainable meals to working people who do not

have the time to drive to get breakfast or lunch. By parking directly next to office buildings and

in other prime locations, customers must simply walk down the stairs of their workplace, or at

most, walk a few blocks to reach the truck. From there, it takes only minutes to order and have

the meal prepared fresh to enjoy at the truck or taking the packaged meal elsewhere.

The Karma Truck will provide personal assistance to customers by providing convenient

and accessible service face-to-face at the truck. The truck is the conduit for providing a sense of

community, which has been defined as a strong food trend for 2012 (Lempert, 2011). The

service and food is customized in a sense. If there is a large demand for the food truck to be in a

specific location on specific days or more often than other locations, this will be taken into

consideration. Customization will also be provided to meet food allergy or preference requests.

•What solution does yourproduct or service provide?

ConsumerSolution

•what is the total cost to theuser (as opposed to theprice you set)?

Customer Cost•what is involved in

accessing the solution?

Convenience

•how will you interact withyour current and proposedcustomers? Includemessages, prototype ads,surveys, and visual aidswhere possible.

Communicationwith Customer


In addition to the relationships that will be generated and maintained through Facebook

and Twitter, an informative blog with information on sustainable eating and green living will

personalize and add value to the service the Karma Truck provides. Furthermore, trivia and

other marketing incentives will personalize the food truck experience and encourage a sense of

fun and community around the truck.

Customer Cost

There is little cost to the customer when they visit the Karma Truck. Unlike having to

travel to a brick and mortar food establishment and the time and transportation costs associated,

the Karma Truck comes straight to the customer.

Convenience for Customer

Convenience is a primary value proposition of the Karma Truck. Customer convenience

will be maximized by strategic planning and structured marketing. If the location of the food

truck is convenient, more customers will come.

Channels & Communication with Customer

The Internet will provide the main channel platform. Daily “tweets” via Twitter and

posts via Facebook will communicate to the customer where the Karma Truck will be each day,

including if the truck will be in multiple locations in one given day.

A weekly newsletter will be sent out via email, as well, to inform customers where the

truck will be located all week. Many working class people do not have a Facebook or Twitter

account, so not providing information to them in another way would be limiting the customer

base. The email database will be built through people entering their email addresses (consenting

to be sent a weekly basis) on 1) the Karma Truck website, 2) Facebook, 3) Twitter, or 4) though

a sign-up sheet at the physical truck.


Many cities, such as Columbus, OH, have Facebook pages that connect multiple food

trucks together on one page. Denver does not have such a page. Karma Truck’s owners will

start and administer this page to encourage all food truck business owners to work together to

fuel the food truck industry in the Denver area. Karma Truck customers and other businesses

will be encouraged to join this joint food truck Facebook page.

The channel in which the food is physically served to the customer is through the singular

vehicle truck. Sales will be made face-to-face at the truck window.

Advertising and marketing strategy

The Karma Truck will be highly differentiated from competitors by its marketing

strategy. The Internet will be the primary marketing platform; not only will this save the

company money but will also save on the natural resources of using paper. The Karma Truck

will have a website, blog, Facebook Page, Twitter account, Yelp page with check-in offers, and

tags on Pinterest.

Figure 9: Marketing Mediums

For the first year, paper flyers must be utilized to spread the awareness of the new

business and gain first-time customers. Simple paper flyers will be dropped off at businesses in

Website

Blog

Twitter

FacebookPinterest

Yelp


target Denver neighborhoods and businesses. The flyers will be created by the

President/Marketing Director and printed with the local printing company Same Day Office

Supplies. Initial customers will also be gained through using Yelp check-in offers. Yelp is a site

that offers reviews of current businesses, but additionally, through the mobile application, when

you are close to the physical location of the truck you are able to “check-in”. Not only does this

show up on the customer’s social network pages to tell their friends, they will also receive a free

drink for showing their check-in to the Karma Truck cashier.

The marketing strategy will gain further strength and be differentiated from competitors

with the sale of branded Karma Truck retail items. Customers that bring or wear their branded

Karma Truck sustainable items will receive a 10% discount on their meal for that day or a free

drink.

Further promotions will be offered to repeat customers. Customers will be encouraged to

keep up with the Facebook (FB) site, Twitter, and the blog as a means to get a discount on their

meal. In addition to checking Facebook for the location of the truck, the page will feature a daily

trivia question on sustainability. Those that come to the Karma Truck and answer the question

correctly will receive 20% off their meal.

Community support promotions will also be featured as a marketing strategy, during the

winter months especially. Customers that bring a canned food donation for local charities, which

the Karma Truck will distribute, will receive 10% off their meal.


Figure 10: Marketing Strategy

Marketing Three P’s

The 3-P’s include people, process, and physical evidence. These strategic marketing

components are important to sustainability positioning within the marketplace. Understanding

the triple bottom line of social, environmental, and economic elements will strengthen the brand

and attract customers.

Figure 11: Marketing 3-Ps

Branded Items

Daily FB Quizzes

CommunitySupport

•10% discount on Meal or free drinkwith purchase of meal

•*Valid anytime. Offer good fordiscount on one meal only. cannot becombined with other offers

•Answer trivia to get 20% off one meal

•*cannot be combined with other offers

•Promotional times only

•Receive 10% off meal

•having the right ones;in a broader sense,the social impact onstakeholders

People

•a systemic view thatincludes all majoraspects of the valuechain

Process•the environmentalimpact of the process

PhysicalEvidence


People

The first year, the Karma Truck will employ three people: the President/Marketing

Director, the Vice President/Executive Chef, and one hourly employee. The President/Marketing

Director will be responsible for all marketing activities, including all daily marketing and

administrative duties. The President/Marketing Director will also assist with operations at the

food truck for all services, assisting with taking orders, collecting payment, and preparing orders.

Figure 12: Karma Truck Employee Breakdown

Procedures for maintaining accounting records.

The President/Marketing Director will perform all daily accounting duties. This includes

management of the cash drawer and payments received by credit card. Daily record keeping will

include tracking of sales, purchases, inventory, and maintenance of a rolling cash flow statement

and rolling balance sheet. An accountant will be hired as contractor to handle the payroll and

•Marketing

•Service Operations

•Pre and Post-Service Operations

•Basic Accounting

President / Marketing Director (Full Time)

•Food Prep before and during service

•Management of Hourly Staff

•Assisting with Marketing

•Inventory

Vice-President/ Chef (Full Time)

•Food prep before and during service

•Assist with clean up after service

Hourly Employee (Part Time)


official maintenance of financial records. The accountant is projected to work 20 hours per

month.

Hiring and personnel policies.

Due to the fact that there will only be one hourly employee who will be assisting with

food preparation, the Chef Partner will interview and be the one to select this individual. The

Managing Partner will also meet any potential employees before final decisions are made on

hiring.

The personnel plan for The Karma Truck is an integrated system, which addresses

employee rights and benefits and conditions of employment. The plan includes the President and

the Vice President who will be the primary marketing, sales, and production force. They will

receive a base salary and their pro-rata share of the net profits after taxes. The Karma Truck’s

personnel plan will also include worker’s compensation. Benefits will not be provided to any

salaried, full time, or part time employee’s year one of operations. Starting year two, benefits

will be offered to eligible employees. Eligible employees are those that work a minimum of 30

hours per week and have been employed at least six months. Benefits will include: medical,

401k, quarterly bonuses if profits allow, accrued sick time, and paid vacation.

Figure 13: Employee Benefits

Medical Benefits

401K

Quarterly Bonuses, based on performance, if profits allow

Accrued Sick Time

Paid Vacation Time


Process:

The process includes a systemic view that includes all major aspects of the value chain.

The Karma Truck looks at the value chain of the product from every angle, for both food and

non-food products. The President and Vice president will ensure that responsible processes are

in place for purchasing, preparation, and disposal of all products.

For all food purchased for the Karma Truck,

the best quality food is found through local vendors

and farms. From there, the food is prepared in a way

that minimizes nutritional loss through cooking

techniques. Lastly, processes ensure that waste is

minimized and that any waste generated is discarded

in a responsible manner, primarily by composting.

For non-food products, the process begins with

the responsible vendor Eco Products, Inc. The

next step in the process ensures that loss and

wastage is reduced by making sure customers do

not take more disposable silverware than they

need and that the inventory is managed

responsibly. Used disposable serviceware will be

discarded in a responsible manner, either by

composting or recycling.

Food Sourcing:Local Farms

FoodPreparation:

MinimizeNutritional

Loss

FoodDiscarding:Composting

ResponsibleVendor:

EcoProducts, Inc

MinimizeLoss

Discarding:

Compostingor Recyling

Figure 14: Life Cycle Process of Food

Figure 15: Life Cycle Process of Non-Food


Physical EvidenceThe business practices of Karma Truck will have positive environmental and social

impacts on the local community. By providing only sustainably produced food, the Karma

Truck will have a lower carbon footprint of comparable food establishments that serve

conventionally produced food. The food will travel less, meaning that fewer emissions are

released into the atmosphere to get the food from the farm to the consumer. By serving produce

and other foods that are organically produced, this is enhancing the market for the organic

produce market, which has many positive environmental effects.

Environmental effects.Conventional farms in the United States use large amounts of pesticides, herbicides, and

fertilizers, which are seeping into our ground water at alarming rates and stripping the soil of its

natural, vital nutrients (Natural Resources Defense Council, 2009). By stripping the soil of vital

nutrients, the overuse of chemicals in conventional farming is permanently damaging the soil and

producing fruits and vegetables that have a lower nutritional content.

As the demand for the organic food market grows the market for conventionally grown

food will decrease. By converting farms from conventional to organic, the soil will slowly but

surely respond and regain its health and nutrients (Moulton, 2010). Consumer support for

organic food is what will drive this. Through the Karma Truck showing customers that eating

organic food tastes better, makes the body feel better, and is comparable in price, this goal will

be achieved.

Social effects.Supporting the organic food market also has social impacts. Social impact is defined as

“effect[s] of an activity on the social fabric of the community and well-being of the individuals

and families” (Business Dictionary, 2012). By providing local and organic food, the Karma


Truck is helping to improve the health of the consumers in the community. The chemicals used

in conventional farming have been proven dangerous to human health. In contrast, research

shows that produce that is grown organically has more flavor and nutritional value (Moulton,

2010).

“Businesses that look ahead and actively manage their ecological risks and opportunities

can gain a strong competitive advantage”, explains the Global Footprint Network (2012, para. 1).

The following figure shows the business footprint for the Karma Truck. Truck emissions account

for the majority of the Karma Truck business footprint, followed by emissions of food

transportation, natural gas use, and electricity use. Paper and plastic use, as well as trash account

for the smallest percentage of the business footprint. Recycling and composting are shown as

negative on the chart, as these activities do not add to the effects of the environment in a negative

manner; rather they help reverse environmental impacts.

Figure 16: Karma Truck Business Footprint (Author’s Image)

-20%

-10%

0%

10%

20%

30%

40%

50%

Environmental Effect

Effe

ctb

yP

erc

en

tage

Karma Truck Business Footprint


Financial Forecast

The following section will provide an overview of the pricing and cost strategy that will

be implemented for the Karma Truck and an overview of revenue streams. The section will also

provide a breakdown of all of the financial projections for the Karma Truck, including the

projected monthly break-even point, start-up funding requested, monthly operating expenses, and

projections of income statements for five years. Please note that some of these financial

statements are included in the appendix section.

Pricing Strategy/Cost Structure

The Karma Truck is a value driven business. Even though the prices are reasonable and

competitive, the main driver for customers will be the high quality sustainable food, personal

service, and convenience that the truck provides.

On the expenses side, the business has high fixed costs. The high costs include the cost

of the vehicle fitted with quality kitchen equipment, which includes not only the lease payment

but also commissary costs (overnight parking, trash collection, refrigeration, heating, and

composting), vehicle insurance, and gasoline costs.

Menu costs will also have a slightly higher cost than competitors due to the per-unit cost

of paper and plastic-ware served with each meal. Because these are post-consumer recycled

plastics and compostable papers, rather than conventional products made from petroleum based

plastics, the cost is higher.

Revenue Streams

Revenue will be generated from the food and beverage sales on the truck, as well as from

the sale of the branded eco-friendly products. The anticipated menu check average is $9.00 per

customer; this is based on an anticipated check average at lunch of $11.00 and a $7.00 check


average for breakfast. The cost of branding items will range from $5.00 for a reusable

biodegradable bag to $15.00 for the reusable stainless steel water bottle and the eco-T-shirt.

Table 4: Marketing Branding Sales, Year 1

Projected Break Even Point

For the Karma Truck to break-even, it must sell 58 meals per day or 1,767 meals per

month. This is based on a fixed cost per meal of $4.99 and a variable cost per meal of $2.80, or

total monthly operating expenses of $14,217. To match this break even, the menu cost, or unit

cost, was calculated at $8.00 (Reference Appendix J). To increase the contribution margin per

check, the final break-even analysis was calculated at $9.00 per customer. The break-even

analysis was based off the average of the anticipated average check for breakfast and lunch, plus

with consideration of add-on beverages, sides, and dessert (see Appendix K, Table A13-A15 for

detailed breakdown and analysis). .

The Karma Truck anticipates to break-even year one, selling an average of 60 meals per

day. Of this, the goal is for Karma Truck to sell 35 meals for lunch and 25 for breakfast daily.

Based on the check average of $9.00, the anticipated monthly sales revenue is $16,349. The

monthly operating expenses are estimated at $14,871.

If the Karma Truck sells less than 58 meals per day or less than 1,767 meals per month, it

will not be able to cover operating costs. The sale of branded items will help cover operating

Marketing Branding Sales Mk Mix Est sold/mo Price Total/mo

50% 20 5.00$ 100.00$

25% 10 15.00$ 150.00$

25% 10 15.00$ 150.00$

Monthly 40 400$

Annual 480 4,800$

Bamboo Biodegradable Bags

Stainless Steel Bottle

Eco Shirts


costs as well, but has not been included in the break-even analysis. The anticipated monthly

sales are $400 per month for branded items.

Start-Up Funds Requested from Bank or Investor

The Karma Truck is requesting $115,000 for initial start-up funding. This one-time

capital investment will cover the following: physical truck, truck insurance coverage for one

year, business licensing fees, zoning permit fees, marketing expenses (including website

development, miscellaneous marketing fees, advertising flyers, and a two-year inventory of

branded items), operating expenses including a two month supply of disposable serviceware,

essential cooking utensils, and three months payroll expenses. The cost of the truck is the

majority of what the investment cost will cover, the remaining $42,000 is for marketing and

operating costs to allow the business to get a running start (see Appendix L for a breakdown of

start-up costs).

Monthly Operating Expenses

The total monthly operating expenses for the Karma Truck in year one are $14,871. Of

this 64% are fixed expenses and 36% are variable expenses. The fixed cost expense per meal is

$4.99 and the variable cost per meal is $2.80 per meal. The total expense per meal is $7.79.

Fixed expenses.

The fixed expenses include: kitchen rental, insurance on the truck, gasoline for the truck,

maintenance for the truck, commissary fees, and composting service fees. The expenses for

these items are listed below:


Table 5: Monthly Fixed Expenses, Year 1

Facility and truck expenses.

For the kitchen rental, the Vice President has made an agreement with the restaurant

Colore in Englewood, CO. The monthly cost is $500 per month for the first year, and $2,000 per

year every year after (Millette, 2012). The insurance on the truck is based on a quote from the

Vice President of Risk Strategies Company, Matthew D. Carlson. The cost is $3,000 annually

for General Liability and Auto Liability, which works out to $250 per month (Carlson, 2011).

Cost/meal

Facility

Kitchen Rental 500$

Equipment

Lease on Truck loan

Insurance on Truck 250$

Gasoline for Truck 945$

Maintenance 50$

Permit Fees annual

1,000$

Commisary: Water Inc

Commisary: Electricity Inc

Commisary: Trash Inc

Commisary: Compost 99$

Equipment Expenses 2,844$ 1.56$

Salary & Wages

Manager 1,667$

Chef 2,500$

Hourly Staff 1,200$

Accountant (contract) 600$

Workers Comp 300$

Benefits -$

S&W Expenses 6,267$ 3.43$

Total Fixed Expenses 9,111$ 4.99$

Commisary: Overnight

Parking with Propane,

Water, Electricity, Trash


The gasoline for the truck is based on the price of gas at $3.15 per gallon and a truck that holds

30 gallons with average miles per gallon (MPG) of 10MPG and an average of 100 miles driven

per month. Maintenance expenses are estimated at $50 per month to cover such expenses as oil

changes, fluids for the truck, and any miscellaneous parts that may break or need replaced.

Commissary expenses.

The cost of parking the truck overnight is covered under commissary costs expenses. A

commissary is the lot where the truck is stored overnight. “Commissaries’ service fees cover

water, electricity for plugging in your fridge at night, ice for cooling drinks, waste disposal and,

of course, the rent for your parking space,” explains Fry Smith (2010), and fees “are usually

around $1,000 per month” (para. 6). The commissary does provide trash service, but not

composting service. Composting services will be provided by Alpine Waste & Recycling and

the fee for this service is a flat $99 per month (McCoy, 2012).

Salaries & wages.

The owners, President and Vice President, will both receive a salary. Starting year two,

after all expenses are paid and if profits allow, a bonus of equal value will be given to both

owners. Additionally, the hourly staff will also receive a bonus, based on the results of their

annual performance review and if profits allow. The monthly expense for the salary of the

President/Marketing Director/Manager is based on an annual year one salary of $20,000. The

year one salary for the Vice President/Chef is $30,000. The salaries are low for year one as the

owners understand that the business is in the introductory stage and expenses must be kept as

low as possible until it is proven how the Karma Truck performs in the marketplace.

The expense for the hourly staff is based upon one employee who will work 30 hours per

week for $10.00 per hour. The plan also includes worker’s compensation and benefits to eligible


employees; as well as optional benefits sponsored by the firm but paid for by the employee.

There will be no health benefits or 401k options for employees for year one; this will be

implemented year two.

The accountant will not be an employee of the Karma Truck. The accountant will work

on a contracted basis for $30.00 per hour at an anticipated 20 hours per month.

Workers compensation.

Workers Compensation Insurance will be provided from Pinnacol Assurance and is based

on an annual premium of $3,600 per month. The premium was calculated from the “7380-

Drivers” classification and the 2012 rate of $4.902 per $100 of payroll and a $165 annual fee

(Fuglestad, D, 2011).

Variable Expenses

Table 6 below illustrates the monthly variable expenses. The variable expenses that are

expected are: food costs and disposable serviceware.

Table 6: Monthly Variable Expenses, Year 1

Cost/meal

Food Costs

Food Costs 3,433$

Food Expenses 3,433$ 1.88$

Disposable Serviceware

P&P Expenses 1,673$ 0.92$

Taxes & Fees

Sales Tax -$

Total T&F -$ -$

Total Variable Expenses 5,106$ 2.80$

Total Monthly Expenses 14,217$ 7.79$

Annual Expenses 170,606$


Food cost is based on 21% of estimated monthly sales. Disposable paper and packaging

provided by Eco Products, Inc. is based on estimated monthly customers multiplied by usage

estimates. For example, it is estimated that every person will take a fork and a knife, plus there

must be a cushion for extra, so the usage item per customer estimate is 1.1. For spoons, only half

of the customers should be taking one, so the usage is 0.5. The fork, knife, and napkin kit are

expensive in relation to unpackaged disposable silverware, so these sets will be saved for call-

ahead orders or private events; the usage estimate on these is 0.25 (see Appendix M for usage

calculation of disposable serviceware).

Projected Income Statement

The Income Statement for year one, 2013, can be found in Appendix N. Year one gross

sales calculate to $200,987, which is based on 98% menu food sales and 2% branding item sales.

The “cost of goods sold” (COGS) for year one are $124,192, or 62% of gross sales.

Administrative and marketing expenses are 10% of gross sales, or $21,029. The remainder of

expenses account for 41% of gross sales and include the following expenses: salaries, wages,

business application fees, license to operate, zoning permit fees, facility rental, truck insurance,

truck vehicle licensing, gasoline for the truck, truck maintenance, commissary fees, and

composting costs.

After all expenses paid the pre-bonus earnings before interest, tax, depreciation, and

amortization (EBITDA) is $20,160, or 10% of gross sales. No bonuses will be given out in year

one. The net income after EBITDA calculates to $160, just barely breaking even for the year.

The loan payment is based on the start-up investment needed of $115,000 calculated with an 8%

interest rate at 10 years (Bankrate, Inc, 2012). The depreciation is calculated from a 10 year

depreciation schedule (Small Business Taxes & Management, 2012). It is also important to note


that there are no taxes, as this is a sole proprietorship and sales and income taxes are paid as

accrued.

Income Statements for years two through four, 2014 through 2017, can be found by

referencing Appendix O. Sales are expected to increase to $294, 281 in year two, up to $392,374

in year three, and a steady average of approximately $441,421 year four forward. After expenses

are paid, the earnings before interest, depreciation, taxes, and amortization (EBITDA) and before

any bonuses are paid, year two earnings are $82,568. In year three the earnings are $64,589,

$86,045 in year four, and $85.685 in year five.

Appendix P shows the business growth by year, through the growth and maturity stage of

the business. The sales growth is shown by a percentage of growth, as well as illustrating the

guest increase per year and the increase in branding sales per year.

Proposed timeline.

Table 7 below shows the proposed timeline for the business plan through to the time the

Karma Truck is introduced into the marketplace: The timeline begins with securing an investor

to obtain the start-up funds and then going through the process of setting up the physical side of

the business, as well as the marketing side. The Karma Truck intends to launch to the public

April of 2013.

Table 7: Karma Truck Launch Timeline

Start Date End Date

Secure Investor 06/2012

Complete all Legal Requirements, i.e. Business Applications 07/2012 01/2013Purchase Truck 07/2012

Website Development 07/2012 10/2012Blog Development 07/2012 10/2012Purchase Equipment 01/2013 03/2012Karma Truck Launch 04/2013


Monitoring, Evaluating, and Revising

The success of the Karma Truck will be measured by guest satisfaction, revenues, and the

bottom line. Guest satisfaction will be monitored through Yelp, feedback via the Karma Truck

website, and with immediate customer feedback at the truck. Issues will be handled at the truck

immediately, ensuring 100% customer satisfaction. Feedback received through the website will

be tracked, specific issues addressed with operations, and the guest will be contacted if

necessary. Through yelp, the reviews and specific comments will be monitored, tracked, and

issues addressed and revised within operations. Success will be measured when the rating score

on yelp increases and comments reflect the changes made from any issues that may have been

previously mentioned.

Sales will be monitored to ensure they are on track with projections. If sales are below

projections, marketing will be readdressed and revised as needed. Furthermore, if sales are

below budget, costs will be reduced as much as possible to ensure expenses do not exceed

revenues.

By providing a product and service that increases the knowledge and demand for

sustainably produced food, the Karma Truck will make positive environmental and social

impacts on the community. Unfortunately, these impacts are difficult to measure, track, and

record.

The Karma Truck business plan will emphasize and use the tool of the carbon footprint.

This sustainability measurement tool will be used internally and externally to help show how the

day-to-day business practices of the truck are affecting the environment. The online carbon

footprint calculator from Carbon Footprint Ltd. will be used to estimate the Karma Truck’s


carbon footprint based on estimated values of meals sold, food purchases, truck miles driven, and

energy used by refrigeration and propane gas for cooking.

The carbon footprint tool is a SMART goal, meaning that it is Specific, Measurable,

Attainable, Relevant, and Timely. The carbon footprint of the business will be monitored and

reevaluated on an annual basis. By reviewing the results annually, operations can be analyzed to

see where cuts can be made to reduce the environmental impact of the business. As explained by

Dr. Kaval in Measuring and valuing environmental impacts: A systematic review of existing

methodologies, the carbon footprint is an appropriate and reliable method for “consumer goods”

and “service” industries (Kaval, 2011, p. 23). The table, presented by Kaval, suggests other

methods for these types of industries, namely: the balanced scorecard approach, ecological

footprint, life cycle analysis, and the responsive business scorecard (2011, p.24).

In deciding which, or all, of these methods to used, it must be taken into consideration

that the Karma Truck business is not already operational. As it is still in the business plan phase,

it is important to use a backcasting approach to find the best tool to best measure, or estimate, the

environmental and social impacts. Unlike forecasting, backcasting starts with a vision and works

backwards, identifying strategic steps to achieve attainment of the vision (Arising, n.d.). One of

the best methods for this is the balanced scorecard method.

The balanced scorecard is a performance management approach that seeks to measure

four outcomes: financial, internal business processes, customer, and learning growth (Foundation

Center, n.d.; Balanced Scorecard Institute, 2011). Designed by Drs. Robert Kaplan and David

Norton, the balanced scorecard approach “provides a clear prescription as to what companies

should measure in order to 'balance' the financial perspective” (Balanced Scorecard Institute,

2011, para. 3).


Conclusion, Reflection, and Implications for Further Study

The Karma Truck will be seen as a business leader in sustainability in the Denver area.

The Karma Truck has important goals for reducing environmental impact, as well as enhancing

social and environmental responsibility. By planning, measuring, and monitoring these impacts

with the Carbon Footprint tool and the balanced scorecard approach, the Karma Truck will stay

on track with its goals and furthering the sustainability movement.

The educational sustainability blog provided by the Karma Truck will provide positive

social impacts, as well. One of the main goals of the Karma Truck is to educate the local

community on sustainable and healthy food. This is not only accomplished with the blog, but

also by showing the customers that it is affordable, easy, and tasty to eat sustainably and healthy.

Education is an important tool for furthering the sustainability movement. If consumers

understand how their purchasing decisions affect the environment, they are more likely to take

the time to stop and think the next time they reach into their wallet.


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Same Day Office Supplies. (n.d.). Custom printing. Retrieved February 4, 2012 from

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ault.aspx

Small Business Taxes & Management. (2012). Auto and vehicle tables. Retrieved February 20,

2012 from http://www.smbiz.com/sbrl003.html#dsm

State of Colorado. (2005). Business licensing database: Food vendor. Retrieved January 14,

2012 from http://www.colorado.gov/oed/industry-license/158IndDetail.html

State of Colorado: Taxpayer Service Division. (2005). Special regulation: Eating and drinking

establishments. Retrieved January 14, 2012 from

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blobkey=id&blobtable=MungoBlobs&blobwhere=1191399156771&ssbinary=true

Steuben’s Food Service. (2010). Retrieved January 28, 2012 from

http://www.steubens.com/truck

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http://www.eatwhereulive.com/sfd.htm

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http://thefoodtruckmarket.com/the-history-of-food-trucks/

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US Census Bureau. (2011, May 4). Industry statistics sampler. Retrieved January 14, 2012 from

http://www.census.gov/econ/industry/ec07/a722330.htm


Appendices

Appendix A: Food Truck Features & Details

Figure A 1: Truck Features (Author's Image)

Base Unit

•Hybrid Electric

Electrical & Generator Systems

•Opt. # 101- 6500-15000 watt elec. generator

•Opt. # 102 - Electrical System w/ panel, breakers, etc.

Sinks & Water Supply Systems

•Opt. # 201 - 3 Compartment Sink

•Opt. # 202 - Stainless Hand Sink w/ backsplash

•Opt. #205 - Pressurized water system

Refrigerators, Freezers & Cold Compartments

•Opt. # 303 - two door under counter refrig,

•Opt. # 341 - insulated cold compartment

•Opt. # 313 - two door upright refrig

Cooking, Grilling, Heating and Food/Beverage Equipment

•Opt. # 401 - Flat griddle, LP/elec 16"x20"

•Opt. # 413 - Exhaust Hood

•Opt. # 404 -Gas Range, 6 burner, 36"x30"x36"

•Opt. # 435 - Elec. Proofing/warming/holding cabinet

Display & Dispensing Equipment & Options

•Opt. # 511 - serving window

•Opt. # 606 - Fire Extinguisher

•Opt. # 607 - Removable trash or condiment comp.

Exterior Finish & Graphics Choices

•Opt. # 811 - All A Cart Design Department can create a custom logo for you


Appendix B: Food Truck Picture

Figure A 2: #16 Mobile Kitchen Step. Adapted from All A Cart Manufacturing, Inc. (n.d.). Welcome to the new All ACart online brochure. Retrieved from http://www.allacart.com/brochureweb/


Appendix C: Current, Emerging, and Potential Competitors

Table A 1: Current, Emerging & Potential Competitors

Time in Market Cuisine Price Point Primary Location Notes

Blue Bear (Pankratz, 2012)

Emerging locally-sourced bison, lamb-sliders,

chicken drumettes

$3 and $4, with combinations available. Filmore Auditorium, Colorado

Convention Center

Steubens (Denver Food Trucks, 2011; Steuben’s Food Service, 2010)

Since 2011 Burgers, Pork Sliders, Veggie Burgers $2-$7.50 Downtown/Civic Center Park Restaurant Chain. More catering than

mobile food

The Denver Cupcake Truck (Denver Food Trucks, 2011)

Since 2009 Cupcakes, Salads, Sandwiches Park Hill Offers Wi-Fi

Biscuit Bus (Denver Food Trucks, 2011)

Unknown Biscuit Sandwiches $2-9 Downtown. Local events. “In Hibernation”, states their Facebook

page. They have brick & mortar cafe

Sugar Lips Mini Donuts (Denver Food Trucks, 2011)

Donuts Copper Mountain

Gastro Cart (Denver Food Trucks, 2011; Gastro Cart, 2009)

Since 2009 Tacos, Gyros $2-9 Unknown Facebook page. Website. Hard to locate

where to find them

Brava Pizzeria Della Strada (Denver Food Trucks, 2011; Brava Pizzeria, n.d.)

Pizza $5.50-7.50 Downtown:

16th Street Mall

Does not move from location. Regular

FB updates; closes when inclement

weather.

Paris on the Platte Mobile (Denver Food Trucks, 2011)

Deluxe Street Food (Denver Food Trucks, 2011)

The Crepe Crusaders (Denver Food Trucks, 2011)

2010 Savory & Sweet Crepes. No pricing info given. Co Springs. Private events

Justice League of Street Food (Denver Food Trucks, 2011)

Not a food truck. Coalition.

Walnut A-GoGo (Denver Food Trucks, 2011)

No website. No Facebook. Could not

locate info.

Pinche Tacos (Denver Food Trucks, 2011; Pince Tacos, 2011)

2010 Breakfast Tacos, Lunch Tacos No pricing info given. Unknown. No info on website or

Facebook.

Comida (Denver Food Trucks, 2011)

Mexican Boulder

Biker Jims (Midson, 2011)

Late 2011 Hot Dogs No pricing info given. Downtown Storefront had National Media coverage

on Unique Eats, Food Network. No

Reservations & Best Thing I Ever Ate


Appendix D: Colorado Crop Calendar

Figure A 3: Colorado Crop Calendar


Appendix E: Sample Breakfast MenuBREAKFAST

Green: $6.00

Florentine Frittatafarm fresh eggs, spinach, tomatoes, onions,

feta cheese

Whole Wheat Breakfast Wrapfarm fresh eggs, chicken, black beans

House Cured Maple Bacon, Hen Eggs &Crispy Sweet Potato Sandwich

Long family farm pork belly

Freedom Toastlemon and sheep milk ricotta stuffed freedom

toast

Root Vegetable Hashconfit duck, poached hen egg

Greener: $4.00

Whole Grain Blueberry Pancakesshort stack layered with fruition farms citrus

peel mascarpone

Yogurt Parfaithouse cultured palisade peach Yogurt, honey

roasted flax seed and cashew granola

Grilled Goodnesschoose any grilled to bring out natural sugar,

can’t get simplerHalf grapefruit

with seasonal mountain berriesGreenhouse tomato

with locally brewed balsamic caramelGrilled onion rings

with hen egg & truffle oil

SIDES $2.00

Farm Fresh Egg

Fresh Fruit

Sweet Potato Hash Brown

Homemade Biscuit with butter

BEVERAGES$2.00

Fresh Squeezed Juiceyour choice of Apple, Orange, Grapefruit,

or Tomato

$4.00

Fresh Squeezed Blended Juiceblend of apple, orange, carrot, & beet

Fresh Brewed Fair-Trade CoffeeGreen-Mountain Coffee

Figure A 4: Sample Breakfast Menu


Appendix F: Sample Lunch Menu

LUNCHGreen: $9.00

Chicken and wafflesBlue bird farm roasted chicken breast pecan

and honey waffle

Turkey Burgerserved with your choice accompaniments

Caprese Sandwichfresh mozzarella, tomato, basil, aged balsamic

PLTgrilled portablella, butter lettuce, greenhouse

tomato, roasted garlic and locally brewedwhite balsamic aioli

Greener: $7.00

‘Good Karma’ Sandwichcarrot, red pepper & fava bean spread,

sprouts,tomato, special sauce

Portobello Cheese “Steak” Wrapportobello mushroom, peppers, onion,

balsamicserved gyro style

Falafel SandwichFalafel (garbanzo beans), sprouts, onion,

tomato, cucumber, tahini

Ricotta Spinach EmpanadaLocal spinach & ricotta

VALUE MENU $3.00Raw Veggie Burrito

black beans, yogurt, tomatoes, avocado,sprouts, cheddar cheese

Sweet Potato & Black Bean Burgerserved with your choice accompaniments

SIDES $2.00

Almond Broccoli Salad

Soup of the Week

Breaded & Baked Green Beans

Artichoke Bread

DESSERTS $4.00Colorado Peach Cobbler

Cauliflower & Raspberry Ricotta Cheesecake

Zucchini Cake

Gelato of the Week

BEVERAGES $2.00Homebrewed Colorado Peach Iced Tea

Hibiscus Iced Tea

Housemade Cherry Soda

Agua Fresca of the Week

Figure A 5: Sample Lunch Menu


Appendix G: Branding Item Expenses per Year

Table A 2: Branding Items, Start-Up Needs & Costing

Table A 3: Year One Branding Items; Estimated Amount to be Sold & "Cost of Goods Sold"

Table A 4: Year Two Branding Items; Estimated Amount to be Sold & "Cost of Goods Sold"

Cost/ea Mark Up Price Mark Up KT Selling Price Start Up Amount

Bamboo Biodegradable Bags 1.69$ 8.45$ 500% 5.00$ 34% 1,690.00$

Stainless Steel Bottle 3.14$ 15.70$ 15.00$ 21% 3,140.00$

Eco Shirts 2.79$ 13.95$ 15.00$ 19% 2,790.00$

7,620.00$

Year One - 2013 Cost/ea Amt Sold/mo Amt Sold/yr COGS/mo COGS/yr

Bamboo Biodegradable Bags 1.69$ 20 240 33.80$ 405.60$

Stainless Steel Bottle 3.14$ 10 120 31.40$ 376.80$

Eco Shirts 2.79$ 10 120 27.90$ 334.80$

40 480 93.10$ 1,117.20$

Year Two - 2014 Cost/ea Amt Sold/mo COGS/mo COGS/yr



Eco Shirts 2.79$ 13 154 35.87$ 430.46$

51 617 119.70$ 1,436.40$

1097TOTAL NEEDED

FOR TWO

YEARS


Table A 5: Year Three Branding Items; Estimated Amount to be Sold & "Cost of Goods Sold"

Table A 6: Year Four Branding Items; Estimated Amount to be Sold & "Cost of Goods Sold"

Table A 7: Year Five Branding Items; Estimated Amount to be Sold & "Cost of Goods Sold"

Year Three - 2015 Cost/ea Amt Sold/mo COGS/mo COGS/yr



Eco Shirts 2.79$ 17 206 47.83$ 573.94$

69 823 159.60$ 1,915.20$

Year Four - 2016 Cost/ea Amt Sold/mo COGS/mo COGS/yr



Eco Shirts 2.79$ 19 231 53.81$ 645.69$

77 926 179.55$ 2,154.60$

Year Four - 2017 Cost/ea Amt Sold/mo COGS/mo COGS/yr



Eco Shirts 2.79$ 19 231 53.81$ 645.69$

77 926 179.55$ 2,154.60$


Appendix H: Disposable Serviceware Comparison

Table A 8: Recycled Content Cutlery Costing

Recycled Content Cutlery

Item Case Price Amt/cs Price/ea

Knives $ 45.85 1000 $ 0.05

Forks $ 45.85 1000 $ 0.05

Spoons $ 45.85 1000 $ 0.05

Soup Spoon $ 45.85 1000 $ 0.05

FKN Kit $ 60.12 250 $ 0.24

Napkins $ 51.75 2400 $ 0.02

8oz soup bowl $ 112.65 1000 $ 0.11

8oz Eco lid $ 66.79 1000 $ 0.07

Square sugarcane plate (8in) $ 84.52 500 $ 0.17

16oz cold cup $ 136.46 1000 $ 0.14

Lid for cold cups $ 74.79 1000 $ 0.07

Straws, green unwrapped $ 175.73 9600 $ 0.02

$ 946.21

Table A 9: Plant Starch Cutlery Costing

Plant Starch Cutlery


Knives $ 61.25 1000 $ 0.06

Forks $ 61.25 1000 $ 0.06

Spoons $ 61.25 1000 $ 0.06

Soup Spoon $ 61.25 1000 $ 0.06

FKN Kit $ 57.71 250 $ 0.23

Napkins $ 51.75 2400 $ 0.02

8oz soup bowl $ 112.65 1000 $ 0.11

8oz Eco lid $ 66.79 1000 $ 0.07


16oz cold cup $ 136.46 1000 $ 0.14

Lid for cold cups $ 74.79 1000 $ 0.07


$ 1,005.40


Table A 10: Plantware Cutlery Costing

Plantware Cutlery


Knives $ 66.29 1000 $ 0.07

Forks $ 66.29 1000 $ 0.07

Spoons $ 66.29 1000 $ 0.07

Soup Spoon $ 66.29 1000 $ 0.07

FKN Kit $ 78.62 250 $ 0.31

Napkins $ 51.75 2400 $ 0.02

8oz soup bowl $ 112.65 1000 $ 0.11

8oz Eco lid $ 66.79 1000 $ 0.07


16oz cold cup $ 136.46 1000 $ 0.14

Lid for cold cups $ 74.79 1000 $ 0.07


$ 1,046.47


Appendix I: Disposable Serviceware from Eco Products, Inc.Table A 11: Disposable Serviceware from Eco Products, Inc. Pictures complements of EcoProducts, Inc

Post-ConsumerMaterials

Made withRenewableResources

Recyclable Compostable

Plant StarchKnives

Plant StarchForks

Plant StarchSpoons

Plant StarchFork, Knife,Napkin Kit

Napkins

8oz soup bowl

8oz Eco lid

Squaresugarcaneplate (8in)

16oz GreenStripe®coldcup

Lid for coldcups: GreenStripe®

Straws, greenunwrapped


Appendix J: Unit Cost

Table A 12: Unit Cost Calculations

Costs per Month

Variable Costs $5,106

Salary & Wages $6,267

Fixed Costs $2,844

Total $14,217

Number of Meals/mo 1,825

Calculate the cost per meal Costs of the period / output of the period

Total Monthly Costs/Number of Meals per month

$8

Calculate the cost of meals sold Unit cost X output produced

Cost per meal X Number of Meals per Month

$14,217


Appendix K: Break-Even Analysis

Table A 13: Average Menu Cost

Lunch Menu Prices Breakfast Menu Prices

Top Tier $9 Top Tier $6

Low Tier $7 Low Tier $4

Avg $8 Avg $5

Add Ons Add Ons

Value Menu $3 Beverages $2

Beverages $2 Sides $3

Sides $2

Desserts $4

Avg $3 Avg $2

Cum. Price $11 Cum. Price $7

Food Cost 20.00% Food Cost 20.00%

Prorata Cost 13.79% Prorata Cost 13.79%

33.79% 33.79%

Variable Cost $3.60 Variable Cost $2.45

Table A 14: Cost Breakdown for Break-Even Analysis

Daily Check Average $ 9

Menu Price $ 9

Variable costs/meal $ 2.80

Fixed cost/meal $ 4.99

Monthly Fixed Costs $ 9,111

Monthly Variable Costs $ 5,106

Table A 15: Details on Break Even-Analysis, including Contribution Margin & Margin of Safety

Contribution margin for Menu $ 6.16

How many menu items must food truck sell to break even (per mo) 1479

How many menu items must food truck sell to break even (per day) 49

If Food Truck sells 1825 meals per month, what is the operating income? $ 2,132

Margin of Safety 346


Appendix L: Start Up Costs

Table A 16: Start-Up Costs

Start-Up Costs

Physical Truck & Operating Essentials

Physical Operating Truck $ 69,890.00 one time

Insurance $ 3,000.00 annual

Vehicle Licensing $ 400.00 annual

$ 73,290.00

Business Licensing & Permits

Application Fees $ 200.00 one time

License to Operate $ 125.00 annual

Zoning Permit $ 50.00 annual

$ 375.00

Marketing Expenses

Website Development, yr 1 $ 4,209.00

Website Maintenance, yr 2 $ 4,000.00

Blog Development & Maintenance $ -

Social Networks $ -

Misc Marketing $ 1,000.00

Advertising Flyers $ 1,000.00

2 yr Inventory Branded Items $ 7,620.00

$ 17,829.00

Disposables

3cs Knives $ 183.75

3cs Forks $ 183.75

3cs Spoons $ 183.75

3cs Soup Spoon $ 183.75

3cs FKN Kit $ 173.13

3cs Napkins $ 155.25

3cs 8oz soup bowl $ 337.95

3cs 8oz Eco lid $ 200.37

3cs Square sugarcane plate (8in) $ 253.56

3cs 16oz cold cup $ 409.38

3cs Lid for cold cups $ 224.37

3cs Straws, green unwrapped $ 527.19

$ 3,016.20

Kitchen Equipment

Cooking Utensils $ 2,000.00

$ 2,000.00

Operating Expenses

3 mo Payroll Expenses $ 18,800.00

$ 18,800.00

Amount of Investment Needed $ 115,310.20

Loan minus Truck Expense $ 42,020.20


Appendix M: Usage Calculation of Disposable Serviceware

Table A 17: Usage Calculation of Disposable Serviceware

Usage

Knives $ 123 =SUM(E6*1.1)

Forks $ 123 =SUM(E$6*1.1)

Spoons $ 56 =SUM(E$6*0.5)

Soup Spoon $ 56 =SUM(E$6*0.5)

FKN Kit $ 105 =SUM(E$6*0.25)

Napkins $ 79 =SUM(E$6*2)

8oz soup bowl $ 103 =SUM(E$6*0.5)

8oz Eco lid $ 61 =SUM(E$6*0.5)

Square sugarcane plate (8in) $ 339 =SUM(E$6*1.1)

16oz cold cup $ 374 =SUM(E$6*1.5)

Lid for cold cups $ 205 =SUM(E$6*1.5)

Straws, green unwrapped $ 50 =SUM(E$6*1.5)

P&P Expenses $ 1,673


Appendix N: Income Statement Year One, 2013

Table A 18: Income Statement Year One, 2013

Karma Truck

Income Statement

For the Year Ending December 31, 2013

2013

Revenue % Gross Sales

Menu Food Sales $ 196,187 98%

Branding Item Sales $ 4,800 2%

Gross Sales $ 200,987 100%

Less Cost of Goods Sold (Variable)

Cost of Branding Items $ 1,117 1%

Food Costs $ 41,199 20%

Disposable Paper & Packaging $ 20,079 10%

Variable Labor $ 14,400 7%

Total COGS $ 76,795 38%

Gross Margin (Profit) $ 124,192 62%

Less Selling & General Admin

Admin Expenses $ 7,200 4%

Marketing & Advertising $ 13,829 7%

Total S&G $ 21,029 10%

Operating Profit $ 103,163 51%

Less Operating Expenses

Salaries $ 50,000 25%

Workers Comp $ 3,600 2%

Benefits $ - 0%

Business Application Fee $ 200 0%

Business License to Operate $ 125.00 0%

Zoning Permit $ 50 0%

Facility Rental $ 500 0%

Truck Insurance $ 3,000 1%

Truck Vehicle Licensing $ 400 0%

Truck Gasoline $ 11,340 6%

Truck Repairs & Maintenance $ 600 0%

Commissary Fees $ 12,000 6%

Composting Costs $ 1,188 1%

Total Expenses $ 83,003 41%

Pre Bonus EBIDTA $ 20,160 10%

Bonus

Manager Bonus $ - 0%

Chef Bonus $ - 0%

Hourly Staff Bonus $ - 0%

Total Bonus $ - 0%

EBITDA $ 20,160 10%

Less Taxes, Interest, & Depreciation

Loan Payment plus Interest $ 16,740 8%

Depreciation $ 3,260 2%

Total EBITDA $ 20,000 10%

Net Income $ 160 0%


Appendix O: Income Statement Years Two through Five (2-5), 2014 through 2017

Table A 19: Income Statement Years Two through Five (2-5), 2014 through 2017

2014 2015 2016 2017

Revenue% GrossSales

% GrossSales

% GrossSales

% GrossSales

Menu Food Sales $ 294,281 98% $ 392,374 98% $ 441,421 98% $ 441,421 98%

Branding Item Sales $ 6,171 2% $ 8,229 2% $ 9,257 2% $ 9,257 2%

Gross Sales $ 300,452 100% $ 400,603 100% $ 450,678 100% $ 450,678 100%

Less Cost of Goods Sold (Variable)

Cost of Branding Items $ 1,436 0% $ 1,915 0% $ 2,155 0% $ 2,155 0%

Food Costs $ 51,499 17% $ 82,399 21% $ 92,698 21% $ 92,698 21%

Disposable Paper & Packaging $ 25,098 8% $ 40,157 10% $ 45,177 10% $ 45,177 10%

Variable Labor $ 23,040 8% $ 34,560 9% $ 46,080 10% $ 46,080 10%

Total COGS $ 101,074 34% $ 159,031 40% $ 186,110 41% $ 186,110 41%

Gross Margin (Profit) $ 199,378 66% $ 241,572 60% $ 264,568 59% $ 264,568 59%

Less Selling & General Admin

Admin Expenses $ 7,200 2% $ 7,200 2% $ 7,200 2% $ 7,200 2%

Marketing & Advertising $ 6,000 2% $ 6,000 1% $ 6,000 1% $ 6,000 1%

Total S&G $ 13,200 4% $ 13,200 3% $ 13,200 3% $ 13,200 3%

Operating Profit $ 186,178 62% $ 228,372 57% $ 251,368 56% $ 251,368 56%

Less Operating Expenses

Salaries $ 64,000 21% $ 120,000 30% $ 120,000 27% $ 120,000 27%

Workers Comp $ 4,047 1% $ 7,420 2% $ 7,420 2% $ 7,420 2%

Benefits $ 3,600 1% $ 3,600 1% $ 3,600 1% $ 3,600 1%

Business Application Fee $ - 0% $ - 0% $ - 0% $ - 0%

Business License to Operate $ 125.00 0% $ 125.00 0% $ 125.00 0% $ 125.00 0%

Zoning Permit $ 50 0% $ 50 0% $ 50 0% $ 50 0%

Facility Rental $ 2,000 1% $ 2,000 0% $ 2,000 0% $ 2,000 0%

Truck Insurance $ 3,000 1% $ 3,000 1% $ 3,000 1% $ 3,000 1%

Truck Vehicle Licensing $ 400 0% $ 400 0% $ 400 0% $ 400 0%

Truck Gasoline $ 12,600 4% $ 14,400 4% $ 14,940 3% $ 15,300 3%

Truck Repairs & Maintenance $ 600 0% $ 600 0% $ 600 0% $ 600 0%

Commissary Fees $ 12,000 4% $ 12,000 3% $ 12,000 3% $ 12,000 3%

Composting Costs $ 1,188 0% $ 1,188 0% $ 1,188 0% $ 1,188 0%

Total Expenses $ 103,610 34% $ 164,783 41% $ 165,323 37% $ 165,683 37%


Pre Bonus EBIDTA $ 82,568 27% $ 63,589 16% $ 86,045 19% $ 85,685 19%

Bonus

Manager Bonus $ 20,000 7% $ 10,000 2% $ 10,000 2% $ 15,000 3%

Chef Bonus $ 20,000 7% $ 10,000 2% $ 10,000 2% $ 15,000 3%

Hourly Staff Bonus $ 1,000 0% $ 2,000 0% $ 4,000 1% $ 5,000 1%

Total Bonus $ 40,000 13% $ 22,000 5% $ 24,000 5% $ 35,000 8%

EBITDA $ 42,568 14% $ 41,589 10% $ 62,045 14% $ 50,685 11%

Less Taxes, Interest, & Depreciation

Loan Payment plus Interest $ 16,740 6% $ 16,740 4% $ 16,740 4% $ 16,740 4%

Depreciation $ 5,200 2% $ 3,150 1% $ 1,875 0% $ 1,875 0%

Total EBITDA $ 21,940 7% $ 19,890 5% $ 18,615 4% $ 18,615 4%

Net Income $ 20,628 7% $ 21,699 5% $ 43,430 10% $ 32,070 7%


Appendix P: Sales Increases by Year & Through Business Life Cycle

Table A 20: Sales Increases by Year & Through Business Life Cycle

Menu/Guest Increase Annual Branding Sales Increase

per Year per Mo per Day Sales Increase Dollar-est UnitsInroduction

Year 1 2013 21,900 1825 60 196,187$ 4,800$ 411

Year 2 2014 150% Sales Increase Rate Year 2 32,850 2737 90 294,281$ 150% 7,200$ 617




Year 6 2018 200% 43,800 3650 120 392,374$ 200% 9,600$ 823

Year 7 2019 200% 43,800 3650 120 392,374$ 200% 9,600$ 823

Year 8 2020 200% 43,800 3650 120 392,374$ 200% 9,600$ 823

Year 9 2021 200% 43,800 3650 120 392,374$ 200% 9,600$ 823

Year 10 2022 200% 43,800 3650 120 392,374$ 200% 9,600$ 823

Growth

Maturity

Inroduction

Sustainable Food Truck Business Plan

Food

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