|1||100x year over year revenue growth (2019 vs 2018)|
|2||200% increase in new foodtruck accounts post-Covid|
|3||150% increase in new customer accounts post-Covid|
|4||190% increase in user engagement post-Covid|
|5||Over 22k active users (foodies) and good user retention and engagement.|
|6||Positive market feedback and penetration in existing target markets.|
|7||One of the first-to-market with the features that we utilize, and have the most features.|
I have had several conversations with Nicholas and have been impressed with him and WTF throughout all of them. I firmly believe that WTF is perfectly placed to thrive in both the COVID environment we are currently in, as well as beyond. His current traction is proof that the concept itself is finding success and the growth potential is high due the rising interest in food trucks from consumers across the country.
Nicholas has also shown to be very open to input as well as very coachable without loosing sight of the vision he has for his company. As an expert in the food and restaurant tech space I am extremely excited to be part of this venture and have full faith in the success of Nicholas and Where's The Foodtruck!
That's the question foodies all over the world are asking.
For the decade prior to starting this business, I managed and operated national, corporate restaurants on the Las Vegas Strip. With the experience, knowledge, and expertise I had acquired, I decided to pursue the goal of owning my own business, in the form of a restaurant. As my proof of concept, I decided to start a gourmet foodtruck. This is how many foodtruck owners begin their journey.
The chances of success and even survival of a foodtruck are lower than traditional brick and mortar restaurants. In researching the foodtruck industry and planning my concept, some of the problems and difficulties unique to the industry became clear to me. But being aware of a problem and being able to solve the problem are two different things, and my success depended on solving the problem. I had to find an answer to the question: how will I best ensure the success of my new business?
To find the "how" to achieve greater success, I spoke with existing foodtruck owners. They told me that they need more new and repeat business, increased business during slow times, and increased high-ticket sales, i.e. catering. But to accomplish this, they need customers to physically be at their location to spend money. And to get customers at their location, they need customers to know their location. It's pretty simple, but for a mobile vendor like a foodtruck with an ever-changing location, this is a BIG PROBLEM!
This is the first, and biggest, problem every foodtruck must solve. Many rely on social media and word of mouth, but depending on ever-changing algorithms and customers' desires to promote your business isn't reliable. I began to develop a solution that would solve this problem for foodtrucks throughout the industry. The primary goal: allow foodtruck operators to easily share their exact location with nearby customers. With that goal in mind, we built a mobile app that allows foodtrucks to share their location using GPS, uses push notifications to increase traffic, and is easy to use. And for the foodies out there, we built an app for them to find and discover their favorite gourmet foodtrucks.
If there's one thing true to business, it's that getting feedback, trying different solutions, and constantly improving is the key to success. We launched the app in April 2018 at The Great American Foodie Fest in Las Vegas. For the rest of the year we focused on usage, bugs, feedback, and improvements. Thanks to vendor and customer feedback, we added the following features: deals & daily specials, local events, and a catering tab (vendor app only), and we're now developing secure, in-app ordering. We allow any foodtruck across the U.S. to create a profile, but our focus is currently on a few mid-size markets (Las Vegas, Salt Lake City, Phoenix, Colorado Springs, and Charlotte). Over 400 foodtrucks have created profiles on our app, and we have over 20,000 active user downloads.
Here's a map of May's customer activity, shown as hotspots. Over 80,000 push notifications were sent out to nearby foodies at the perfect time. What an impact!
We have had great success to-date, but there's more opportunity as we continue to develop our roadmap. We're on the right track, with foodtruck operators saying things like:
I LOVE Where's The Foodtruck app! The app makes it easy for anyone to find their appetite and the GPS is on point. I’ve gained much more than just customers and followers from this app, I’ve gained family! Great job!
-Cody T., owner of The Spice is Right (more testimonials)
To continue on our path and take the business to the next level, funding is the rocket fuel.
First, in-app ordering is a must-have at this point. We've started development and our developers are capable of making it an amazing feature. Not only will this feature generate revenue, but it will provide a new level of analytics to share with foodtruck operators.
Second, add to the WTF team. At this time, I'm the only full-time employee. We've received help from good advisors and infrastructure support from StartupNV, a startup incubator. The rest of the team is outsourced. We'll hire salespeople to help with outbound calls to foodtrucks and account setup, and a sales & marketing manager to develop content and strategy for ad spend.
The minimum raise of $50k will help us accomplish these goals; both are projected to increase revenues considerably. There will be enough funds for some paid marketing as well.
Funding in the $100k range will allow the addition of a top-level sales & marketing partner and, with this partner's help, we'll invest in more marketing and development of content and copy. The marketing budget focuses highly on digital ad spend to increase user downloads, foodtruck signups, and catering lead generation.
Funding over $100k gives us a larger marketing budget. We'll expand our sales team and hire a catering manager. With enough investment, we'll also explore the possibility of continued software development as we progress on our features roadmap.
Thank you for considering investing in Where's The Foodtruck. Please share our campaign page, and invest what you're able to. With your help, we'll be able to build a strong team and even stronger company, one that will see amazing growth and success.
You'll be proud to say that you were an initial investor in Where's The Foodtruck!
Where's The Foodtruck has financial statements ending December 31 2019. Our cash in hand is $8,251, as of June 2020. Over the three months prior, revenues averaged $5,629/month, cost of goods sold has averaged $1,572/month, and operational expenses have averaged $5,051/month.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
We help foodtruck owners actively market themselves to new and existing customers. With our platform, foodtrucks can target nearby foodtruck enthusiasts with push notifications at the right moment.
Foodtrucks can post deals, daily specials, and upcoming events. They can also access a catering bulletin board and offer secure and contactless in-app ordering (in development).
Foodies get alerts when a foodtruck is open nearby, or when there's a new deal or event happening in town.
We will be all things foodtruck related!
We want to be able to offer business and kitchen education and training, a foodtruck-specific POS, payment processing, have access to leasing, buying, building, and financing of trucks and trailers for new and aspiring foodtruck owners, offer state-of-the-art commissaries for our members, and so much more.
WTF WHERES THE FOODTRUCK was initially the dba of BAYOU ENTERPRISE GROUP LLC which was incorporated in the State of Nevada in September 2017.
After the launch of the MVP and adoption by a minimally substantial amount of foodtrucks and end-users, WTF WHERES THE FOODTRUCK LLC was incorporated as its own entity in the State of Nevada in May 2019.
Currently, our successes include:
Historical Results of Operations
Our company was re-organized in May 2019 and has limited operations upon which prospective investors may base an evaluation of its performance.
Related Party Transaction
Refer to Question 26 of this Form C for disclosure of all related party transactions.
Liquidity & Capital Resources
To-date, the company has been financed with $55,500 in debt.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 12 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 9 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
WTF WHERES THE FOODTRUCK LLC cash in hand is $8,251, as of June 2020. Over the last three months, revenues have averaged $5,629/month, cost of goods sold has averaged $1,572/month, and operational expenses have averaged $5,051/month, for an average burn rate of $994 per month. Our intent is to be profitable in 24 months.
We see a steady growth in MRR as we increase the amount of food vendors using our platform monthly. Catering and scheduling revenues are a new revenue stream that we began to focus on starting in Q3 2019. Catering is seasonal with slight dips mid-summer and mid-winter, but we project a minimum of catering sales independent of the season.
COGS for MRR are in the single digits as a percentage. COGS as a percentage for catering are higher since we function as a booking agent. Catering revenues are high as a percentage of total revenues from multiple revenue streams. Starting in March 2020, we experienced catering revenues drop to zero due to COVID-19, but we have been successful in maintaining and growing our subscription base for an increase in MRR. We have also already seen a revival of catering bookings.
With a successful fundraise, we project Q3 and Q4 2020 gross revenues to range from $75-100k total between the two quarters. We consistently reinvest profits into software development and/or marketing. Our expenses will nearly mirror our revenues as we adjust accordingly, minimizing the risk of additional debt and maximizing our spend for overall growth and product development.
We do not currently have other sources for outside funding. When revenues are impacted, such as they were due to COVID-19, we scale back on monthly burn and are able to ensure the net revenue remains level.
One of our biggest risks is new, highly funded competitor(s) with larger marketing budget(s). We've invested a lot into product development, now we need to market it. Deeper pockets, even with a lesser product offering, could take a more dominant role in the market.
It's possible that an existing platform such as yelp, ubereats, square, or google could add similar features or services to their product line. We see this as a possible future acquisition as part of our exit strategy.
An existing competitor could pivot towards a similar, full-featured product offering as ours. We're counting on a lead position and market penetration to minimize this risk.
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining additional personnel we require to successfully grow our business. We have a budget dedicated specifically to hiring strong team members.
We rely on third party technology vendors such as Stripe, Apple, Android, Google, Square, Wordpress, and others. An interruption in the availability of these services could have material negative impact on our ability to deliver service to users, as well as the profitability of these operations. Interruptions could occur due to both Internet outages as well as policy changes or terms violations according to these third parties. The prospect of increased regulation and/or Internet censorship may create access challenges to our users and service offerings. Our long-term vision is to extract all third party hosting requirements in order to become independently sustainable.
Breaches of our platform and systems may materially affect user adoption and subject us to significant negative reputational, legal or operational consequences. Our user privacy has never been compromised to date due to a focus on encryption and security, but 100% security cannot be guaranteed. Cyber-crimes are becoming increasingly common and aggressive which brings parallel increase in risk. We take a minimalist approach to the amount of data that is collected and stored in order to mitigate the impact of this potential risk.
To continue increasing revenues, we must expand our active user base of end users and vendors. To accomplish this, we must increase our visibility in the marketplace. Potential users must be aware that we exist and be able to find us. We need to demonstrate how our services are useful to them. That could require us to devote more resources than expected to our marketing efforts, including advertising and other expenses, to build public awareness of our brand. Even with an enhanced marketing effort, there is no guarantee that we will be able to increase the number of new visitors to our website and in turn, convert them into active users or paying customers. Any number of conditions could affect the success of our marketing efforts, including a poorly executed campaign, or the failure to expand our active vendor database to keep customers coming back for more.
We have made certain assumptions about the food truck industry in order to create financial projections for the business. There is risk associated with the accuracy of these projections due to continuous changes in technology, new feature introductions by competitors, changes in user preferences and shifts in user demographics. In order to mitigate this risk, we have taken great care to ensure the reliability and source quality of assumptions used in the projections. We diligently research publicly-available information and initiatives of competitors, changes in the marketplace, and changes in user preferences.
Due to COVID-19, there are risks which we cannot predict at this time. We have seen a steep decline in catering and event revenues, which we anticipate will slowly increase to a new normal. The need for 'contactless' ordering will likely result in higher revenues than originally projected with the launch of our in-app ordering feature currently in development. However, this is a very fluid situation with many unknown variables to address, both now and in the future.
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
Temporary Rule 201(z)(2) provides temporary relief from certain financial information requirements by allowing issuers to omit the financial statements required by Rule 201(t) in the initial Form C filed with the Commission. This offering has commenced in reliance of Temporary Rule 201(z)(2).
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