Food cart business plan template for the Philippines

Executive summary

[Cart name] will sell [product, for example fishballs and kikiam, or shawarma wraps] from one cart at [location, for example the food court of a mall or a school canteen area] in [city]. It is a sole proprietorship run by [owner], with [number] helper. The cart will be open from [time] to [time], [number] days a week.

The owner needs ₱____ in total to start: ₱____ for the cart and equipment, ₱____ for the first two weeks of ingredients, ₱____ for permits and the space deposit, and ₱____ as a cash reserve. The owner will put in ₱____ and is asking [lender or family member] for ₱____, to be repaid at ₱____ a month. The cart will be ready to sell once the sanitary permit and health certificates are in hand.

The cart, the product and the spot

A food cart lives or dies by its spot. Write down the exact place you are renting, who controls it (mall leasing office, school administrator, terminal operator or a private lot owner), the monthly rent or percentage share, and how long the contract runs. Attach the signed agreement in your appendix.

The sanitation rules for food establishments say food carts should preferably be located inside the fast-food area. If your spot is in a mall food court or a school canteen zone, say so in the plan, because it matches what the health office expects. If you plan to sell from a roving cart instead, the same rules limit ambulant vendors to bottled drinks, biscuits, confectionery and other pre-packed food, so a cooked-food menu needs a fixed spot.^[3]

Menu. List each item, its portion and how it is prepared: [item 1], [item 2], [item 3]. Keep the menu short. Every item you add means more stock to watch, more prep and more chances of waste at the end of the day.

Who will buy, and who else is selling

Answer these questions from your own observation at the spot, not from guesses:

Example fill-in. "Between 11am and 1pm on a weekday, [number] people passed the cart spot and [number] stopped at the food stalls nearby. Most were [students / office workers / shoppers]. Within [distance] there are [number] other carts or stalls selling [similar items], at ₱____ to ₱____ per serving. Our cart will differ by [one clear point, for example a dip no one else offers, or a combo with a drink]." Count on at least three days, including one weekend day, and keep your tally sheets for the appendix.

• How many people pass the spot in your busiest hour? Count them with a tally sheet.
• Who are they: students, office workers, commuters, shoppers, parents waiting for children?
• What do the nearest three carts or stalls sell, and at what price per serving?
• When are those stalls busiest, and when do they close?
• What would make a passer-by choose your cart: price, portion, speed, taste or a sauce they cannot get elsewhere?

Daily operations

Describe one full day so anyone reading the plan can see how the cart runs:

Keep a daily sheet with servings sold per item, cash counted and ingredients left. After two weeks the sheet tells you which items to drop and how much to prepare. It also becomes the evidence behind the sales figures in the financial plan.

1. Before openingBuy or receive ingredients from [supplier] at [time]. Prepare sauces and portions at [commissary or home kitchen]. Check that the cart's water container is filled with clean water.
2. Selling hoursOpen at [time]. One person cooks and serves, one handles cash or e-wallet payments if you have a helper. Keep raw and cooked items apart.
3. ClosingThrow out cooked food that cannot be kept safely. Clean the cart, griddle and utensils. Count cash and record servings sold per item.
4. WeeklyRestock dry goods and packaging. Review which items sold and which were wasted.

What permits does a food cart need, and what do they cost?

Start with the general registrations covered in the step-by-step registration guide. The fees below come from the agencies' own pages. DTI charges ₱200 to ₱2,000 for a business name depending on scope, plus ₱30 documentary stamp tax; a single cart usually needs city or municipality scope at ₱500. BIR stopped charging the ₱500 Annual Registration Fee from 22 January 2024.^[1,2]

For the food side, nobody may operate a food establishment for public patronage without a sanitary permit, issued by the city or municipal health office. The fee is set by local ordinance, not nationally. Everyone working at the cart needs a health certificate from the local health authority, renewed at least every year or as often as a local ordinance requires.^[3,4]

You do not need an FDA License to Operate just to sell cooked street food from a cart. The FDA licensing rules leave canteens, restaurants, caterers and street food to the local government. If you later bottle sauces or pack snacks for other shops to sell, check FDA rules again.^[5]

Financial plan

Fill in every blank from written quotes and your own counts. The only figures already filled in are the published DTI and BIR amounts, which come from the permit table.^[1,2]

Daily sales line. Servings per day [number] × average price ₱____ = ₱____ per day × [number] selling days = ₱____ per month. Use your tally counts for the servings figure, and write a low case and a high case beside it.

Break-even. Monthly fixed costs ₱____ ÷ (average price ₱____ − ingredient and packaging cost per serving ₱____) = [number] servings a month to break even, or about [number] servings per selling day.

• Start-up: cart (built or bought) ₱____
• Start-up: griddle, fryer, LPG tank and regulator ₱____
• Start-up: utensils, containers and signage ₱____
• Start-up: space deposit and advance rent ₱____
• Start-up: DTI business name, city scope ₱500 + ₱30 stamp tax
• Start-up: barangay clearance, mayor's permit, sanitary permit and health certificates ₱____ (set by the barangay and assessed by the city)
• Start-up: BIR registration ₱0
• Start-up: first ingredients and packaging ₱____
• Monthly: space rent or share ₱____
• Monthly: ingredients and packaging ₱____
• Monthly: LPG ₱____
• Monthly: helper's pay ₱____
• Monthly: owner's pay ₱____

Risks and how to handle them

Write two or three risks you can see from your own spot, and what you will do about each.

• The space contract ends or rent goes up. Ask for at least a [number]-month contract in writing and note a second possible spot.
• Food safety complaint. Keep health certificates current, store ingredients cold, and write a cleaning routine the helper follows.
• Slow days. Track sales by day of the week and prepare less on slow days instead of throwing food away.
• Ingredient prices rise. Get price lists from two suppliers and review your menu price every [number] months.
• Helper does not show up. Write the opening steps on a card so a family member can cover.

Permits and registration costs for a food cart

Questions people ask

Can I sell cooked food from a roving cart?

The food establishment rules limit ambulant vendors to bottled drinks, biscuits, confectionery and other pre-packed food. A cooked-food cart should have a fixed spot, preferably inside a fast-food area. Ask your city health office how it applies this locally.

Does a food cart need an FDA license?

Not for cooked street food. The FDA licensing order leaves canteens, restaurants, caterers and street food to local governments, so your main permit is the sanitary permit from the health office.

Why are the sales figures blank?

Sales depend on your spot, menu and prices. A number we made up could mislead you or a lender. Use your own tally counts to fill them in.

Is this plan for a franchise cart?

It works for an independent cart. If you are buying a franchise, add the franchise fee and royalty terms from the brand's own documents, and see the franchise section.