Coffee Cart Business Plan
For most coffee cart operators, a 1-2 page lean plan is enough as a thinking tool. For operators applying for SBA financing on equipment or a coffee truck, a more formal plan is required. This article walks through both. It's part of the Coffee Cart Business guide.
When you need a formal plan
You need a formal plan if you're applying for:
- SBA financing for a coffee truck or fully equipped trailer
- Equipment financing on a major espresso machine
- A small business loan for the cart and operating capital
- An investor or partner
The lean plan (1-2 pages)
1. The pitch
"Sandhill Coffee is a solo-owned mobile coffee cart business operating in [city], serving espresso drinks, drip coffee, and cold brew at weekly farmers markets, corporate office buildings, and event catering. The owner is a trained barista with [X] years of experience."
2. The customer
"Target customers include weekly farmers market regulars, corporate event attendees, wedding and social event guests, and office workers at recurring contract locations. Local pricing benchmarks based on calls to existing competitors: $4-$6 for espresso drinks, $3-$4 for drip coffee, $5-$7 for specialty cold drinks."
3. The pricing
| Drink | Price |
|---|---|
| Drip coffee (12 oz) | $3.50 |
| Espresso (single shot) | $3.00 |
| Latte (12 oz) | $5.00 |
| Latte (16 oz) | $5.75 |
| Cappuccino | $4.50 |
| Cold brew | $5.00 |
| Iced latte | $5.50 |
| Specialty drinks (seasonal, flavored) | $6.00-$7.00 |
4. The startup costs
| Line | Cost |
|---|---|
| Mobile coffee cart (used or basic new) | $4,000-$10,000 |
| Espresso machine (commercial entry-level) | $3,000-$8,000 |
| Coffee grinder (commercial) | $800-$2,500 |
| Water filtration system | $200-$600 |
| Refrigeration (small) | $400-$1,500 |
| Cups, lids, sleeves, stirrers, napkins (initial) | $300-$800 |
| Coffee beans (initial 4-week supply) | $200-$600 |
| Milk and syrups (initial) | $150-$400 |
| LLC, EIN, banking | $250 |
| Business insurance (year 1) | $600-$1,500 |
| Mobile food vendor permit | $100-$1,000 |
| Health department permit | $100-$500 |
| Initial event entry fees | $200-$800 |
| Marketing (cards, signage, social media setup) | $200-$800 |
| Buffer | $700-$2,000 |
| Total | $11,200-$31,250 |
5. The year-1 revenue projection
| Months | Estimated revenue |
|---|---|
| 1-2 (ramp) | $1,000-$2,500/month |
| 3-6 | $2,000-$5,000/month |
| 7-12 | $3,500-$8,000/month |
| Year 1 total | $26,000-$60,000 |
These ranges assume you've found at least 1-2 weekly recurring locations (farmers market, weekly office contract) plus occasional event work. Operators relying entirely on event work tend to have more variable revenue.
6. The year-1 operating costs
| Line | Annual |
|---|---|
| Coffee beans, milk, syrups | $4,000-$10,000 |
| Cups, lids, supplies | $1,500-$4,000 |
| Vehicle fuel and maintenance | $2,000-$5,000 |
| Permits, license renewals | $200-$1,000 |
| Insurance | $700-$1,500 |
| Event entry fees | $500-$2,500 |
| Equipment maintenance | $300-$1,000 |
| Software and POS fees | $500-$1,500 |
| Marketing | $200-$1,000 |
| Total | $9,900-$27,500 |
7. The year-1 profit estimate
Revenue $26,000-$60,000 minus costs $9,900-$27,500 = $16,100-$32,500 net before self-employment tax.
After 15.3% self-employment tax,1 roughly $13,500-$27,500 take-home before federal and state income tax.
If you also have an equipment loan payment, subtract that.
8. The risks
"Main risks: (1) weather cancellations during outdoor events; (2) major equipment failure on espresso machine ($1,000-$3,000 to repair); (3) seasonal slowdown in winter (event work drops significantly); (4) inability to secure recurring contracts; (5) permit or health department issues."
That's the lean plan.
The formal plan (for SBA)
For an SBA loan, expand into the standard structure with sections on Market Analysis, Operations Plan, Management Team, Financial Projections (year 1 detailed plus 3-year), Funding Request, and Appendix. The SBA's free templates are accepted; don't pay for a "business plan writer" service for a small coffee cart loan.
Next steps
- How to Start a Coffee Cart Business - the sequence
- Coffee Cart Business For Sale - if you're buying
Or back to the Coffee Cart Business guide for the rest.