Coffee & Nosh: Expanding across the Nation!

Stacy Orndorff
Heartland Coffee & Nosh LLC
Correctionville , IA
Heartland Coffee & Nosh LLC is a family-owned food truck bringing specialty coffee and fresh, high-quality food to events throughout the Midwest. Using our homemade sauces and freshest ingredients, we take our truck to over 100 events in the Midwest each year.
Coffee & Nosh isn't just any food truck. We create experiences for our customers through our drink and food creations, our use of social media, and our customer service. Where fried, greasy food is the norm for food choices at outdoor events, fairs, and festivals, Coffee & Nosh provides an alternative with healthier choices often including vegan and vegetarian options. Additionally, we are the only food truck in a 70+ mile radius that provides espresso drinks and fresh brewed coffee.

Our profit comes from accurately pricing our food and beverages to cover our overhead. We do this by costing out every single item that goes on our menu and pricing it accordingly. We work hard to keep our food cost around 33% or lower to ensure sustainability. We also taken in to consideration our break-even point at each event and the probability to make a profit at each event after covering fees, labor, and production costs. We require a guarantee amount and private events to ensure our costs are covered.

Though we are pioneering the way for food trucks in our area, we realize the threat of future competition and always strive to maintain a high quality, advertising campaigns, and differentiating products. Currently we are 1 of 3 food vendors and 1 of 2 coffee vendors at our most profitable event each week, though we are the only food truck. The event also considers saturation of the market for our category, ensuring us continued success at this location.

For local events, there are approximately 15-20 known food trucks in a 30 mile radius from us. Approximately 5 of those trucks are running their truck full-time. Our competition varies as sometimes we are in competition with caterers, coffeeshops, food booths, or other food trucks at an event. Competing with others has become an asset for us as we strive to stand-apart in an effort to create a sustainable business.

According to the National Restaurant Association Restaurant Outlook Report 2017, food trucks have skyrocketed growth in the last 5 years by 7.9% compared to 2% of brick and mortar food establishments deeming food trucks as one of the fastest growing segments in the food industry. With popularity in coastal and college cities, they predict popularity expanding to urban areas (https://foodtruckr.com/2017/09/what-data-can-tell-us-about-the-state-of-the-food-truck-industry/). Being on the forefront of food truck popularity in our area catapults our opportunity for growth and sustainability. Our immediate market size is approximately 170,000 according to the 2010 Census of the Sioux City Metropolitan Area. We increase our market size to 3,000,000 as we travel to events outside of this area including events in Nebraska, South Dakota, and across Iowa.
Our goal is to build Coffee & Nosh into a National Brand. To do this, we need the ability to service larger events and begin a process that will lead to the purchase of additional trucks and franchising. Our first step towards this is our recent purchase of a building to serve as our warehouse.

The warehouse will be used to protect our current truck and future trucks, expand our season, and house a larger amount of inventory. Indoor storage of our truck will allow us to expand our season 2 months because of the protection from freezing temperatures. Additionally, the indoor storage during winter will increase the life of the truck exterior and wrap. The warehouse will also serve as an inventory holding area for paper and dried goods. Having a large area for storage will allow us to order products in larger quantities, decreasing our costs for goods and increasing our buying power.

Future plans for the warehouse include the purchase and installation of a walk-in cooler, commercial kitchen, tasting room, and office space. These elements will aid us in decreasing our costs of goods and labor and increase our ability to take on larger events and grow our business into a national brand.

To reach our goal, our immediate need is to make repairs to the warehouse. The door opening has to be modified to fit the truck, the roof is in need of repair, and cosmetic repairs are needed. Dream Big Grow Here funds would be used towards these needed repairs and improvements.

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