If you’re considering starting a street food business, the first thing you should do is actually start thinking about what you want to sell. That might seem obvious, but if it’s not clear in your head before you go any further then it could go wrong before it even gets started. Next comes sorting out your finances and working out how much money will be needed for equipment and running costs. Then there’s finding somewhere safe to park the vehicle that will be used for selling food from—and getting insurance for it too—which is also really important when running any kind of business because things can go wrong all too easily!
Think about what you want to sell.
Before you decide to start a street food business, it is important to think about what you want to sell.
This can be a difficult question for some people because they are not sure what items will sell well in their area and how they want to sell their products. One way that can help you figure out what you want to sell is by looking up other food trucks or carts in your area and seeing what they offer. This will give you an idea of what others are doing with their businesses and where your business could stand out from similar ones.
You should also think about how customers will get their food when they order it from your truck or cart; whether they need cash or if they need something else like credit cards or checks (if available).
You may be interested in What is the best food to sell at a street fest?
Sort out your finances.
Before you start your street food business, you need to sort out your finances. This means working out how much money you’ll need to get started and looking at the costs involved in setting up.
You can do this by creating a budget. A good way of doing this is by writing down how much money you will need in total and then breaking it down into cost categories like:
- Equipment: kitchen equipment, utensils and ingredients
- Licences: food hygiene certificate, health & safety certificate
- Insurance: public liability insurance
You should also make sure that any savings are protected by building an emergency fund – this should be 6 months’ worth of living expenses.
Work out how you will run the business.
Once you have a good idea of what kind of food you’ll be selling, it’s time to think about how your business will operate. You need to consider the following:
- Costs and capital requirements: How much money do you need? Do you have enough savings or other income sources to start the business? What costs must be paid before any profits can be made? Is there enough cash flow in the business model to cover these costs and still make a profit?
- Pricing: How much are people willing to pay for your food? If customers don’t expect high prices, what can they afford? If customers expect high prices, how far would they go for an experience that is unique or offers them something special (e.g., being able to say “I ate from street food vendors all around Asia!”).
- Selling point: What makes your product stand out from others like it on offer in the same location (e.g., same streets as yours)? How does this help distinguish yours from theirs so that customers will choose yours over theirs when given a choice between two similar options at similar price points within close proximity distance-wise (or even just one option if there happens only one vendor nearby)?
Sourcing a vehicle and equipment.
Sourcing a vehicle
Street food is all about the aesthetics. You need to have a great looking vehicle that will capture the attention of your customers. There are several types of vans and trucks you can buy, including:
- Commercial catering vans
- Mid-size campervans
- Small utility trucks
- Large panel vans
You should also look into getting equipment included with the sale of your vehicle, such as:
- Gas burners or griddles
- Pots and pans
- Kebab skewers (optional)
You may also read What U.S. city has the best street food?
If you’re opening a street food business, getting insurance is a legal requirement. It can also be a good idea for your business because it can protect you financially if something goes wrong—and it’s not just about protecting yourself from legal liability.
Some people say that insurance is expensive, but there are some ways to save money by getting a policy that covers only the essentials. For example, if you have a van or truck and use it as part of your business (like driving around town selling food), then getting comprehensive car insurance will mean that if anything happens to it while transporting goods for sale, then any damage will be covered by your policy rather than having to pay out of pocket for repairs or replacement costs.
Register the business.
To set up your business, you’ll need to register with the relevant authorities. This can include:
- Registering with the local authority to obtain a street trading license or similar permit.
- Paying taxes on your income and VAT if applicable. In some countries, this can be done via an accountant or by setting up a limited company.
- Registering with the food hygiene agency so that they can inspect your food preparation practices and ensure that you follow legal procedures for safe food handling and storage.
- If you’re selling alcohol-based products in public areas, such as a cocktail maker on the beach, then it’s necessary to obtain a license from the police before doing so (ask them about any special requirements that may apply).
Sort out health and safety.
If you want to start a street food business, it’s important to sort out your health and safety. The first thing you’ll need is some basic equipment like a good knife, pots and pans, and maybe even a mobile kitchen if you want to take things up a notch. You should also have the right insurance in place from the get-go: liability insurance can protect against claims made by customers who fall ill after eating at your stall; public liability insurance will pay for any damage caused by accidents on site; employers’ liability covers costs associated with employee injuries; product liability protects against claims that are brought because of faulty products sold on site (e.g., food poisoning).
There are a few things that need to be done in order to start a street food business.
- You need to choose the business model you want to operate under. There are several options available, such as:
- Street vendor
- Catering company
- You need to determine where you would like to set up shop for your food truck or stand/cart. Many cities have regulations regarding street vendors and will require permits from local authorities before you can begin operating in that area. In addition, there may be certain areas where it’s not allowed at all (e.g., inside an airport). It’s also important that you find a location that has enough foot traffic so customers will frequent your food truck/stand/cart regularly without having trouble finding parking nearby (which is another issue). In order for them not only come once but come back again and again! The best way around this is by finding out what restaurants serve similar types of foods near where they live so they’ll want more options when they go out on weekends instead of just using Yelp reviews which often aren’t accurate anyway since companies sometimes write reviews themselves since they know nobody else has access either way except through social media channels where anybody could potentially write anything without anybody knowing anything about their qualifications).
Running a street food business is not an easy task, but it can be rewarding when you have a great product. In order to get started on your own venture you will need to think about what you want to sell, sort out finances and work out how the business will run. You also need to look at health and safety in order for customers to feel comfortable eating from your cart or stall. Sourcing equipment such as vehicles and kitchen supplies can be tricky but there are plenty of options available these days so don’t let this put off starting up!