How to start a street food business

Street food businesses have been popular for years, offering restaurant-quality food often for cheaper prices and in a more relaxed environment. What’s not to love?

If you’re thinking of starting your own business then there’s plenty to think about, from the type of food you want to serve and where you’ll serve it, to the costs involved and the regulations you need to follow.

Our experts have been out taste-testing street food businesses to feed into this guide. We’ll talk you through starting a street food business, and help you to understand the earning potential and creativity that awaits you.

If you haven’t already, check out our business plan template for more guidance on what to include.

What do you need to set up a street food business?

First things first, what exactly do you need to start a street food business? 

• Cooking skills (or the ability to hire someone who can cook!)
• A street food van or stall
• Insurance – different types apply
• Permits and licences (more on those later)
• Food hygiene certificates
• A menu of unique flavours and dishes
• An idea of budget
• A marketing plan
• A developed business plan

Creating a business plan

Just like when starting any kind of business, you need a business plan for your street food startup.

Jumping in head first without any kind of schedule is a recipe for disaster, so you need to think carefully about what you will serve, who you will serve it to and where you will serve it, along with the costs involved, the equipment you need and the potential for making a profit.

As a general guide, the business plan for your street food business should include:

• Your chosen niche: the street food market is already crowded, so how will you stand out?
• The way you will sell your street food: do you intend to attend events and food markets? Will people be able to hire you for private events?
• Who your main competitors are: what will you offer that your competition doesn’t already?
• Who your target market is: and how will you target them?
• The business costs you expect in your first year of business: how will you pay for these?
• Your ideas and approach for branding and marketing your business: will you do this yourself, or will you need to hire an external agency or consultant to help promote it?

Don’t forget to do your research before you put pen to paper, or fingers to keyboard and start drafting your business plan. Look into existing street food businesses that are successful to see what inspiration you can take from them.

You’ll also need to look into existing businesses that operate within your chosen niche, including location and cuisine, to find the gap in the market that you intend to fill. 

Not sure where to start? Download our business plan template to help you create a strong business plan for your food van business.

Street food rules and regulations

For any business serving food to the public in the UK, there are various rules and regulations that you’ll need to comply with.

Below we’ve answered some of the most popular regulation questions people have when wondering how to start a street food van business. 

Where can you park your food truck?

Unfortunately, you can’t just park your food truck anywhere and start trading. In the UK, streets are classified into three categories when it comes to trading:

• Licensed streets: you’ll need a street trading licence from the local council to sell from your food van on these streets 
• Consent streets: you’ll need street trading consent from the local council to sell from your food van on these streets
• Prohibited streets: selling from your food van is never allowed on these streets. They are often main roads etc

If you plan to park your food truck on private land or at events, the rules are a little different. You won’t usually need individual consent from the council, but will of course need approval from the land owner and event management. 

What licences and certificates do you need for a food truck?

Okay, this is the big one. There are various licences that you will need to acquire if you want to open a street van business and sell food in the UK. 

You will need: 

• A food business registration with your local authority. You’ll need to register at least 28 days before you begin trading.
• A Street Trading Licence. You will need to register as a street vendor with your local council at least 28 days before you begin trading if you wish to sell food from the street.

You will also need to get public liability insurance for your street food business and you can join the National Market Traders Federation (NMTF), a paid membership that offers liability protection of up to £10m.

What risk assessments do you need to carry out?

Health and safety should be a key consideration when starting and running a street food business, and you’ll need to undertake various risk assessments including:

• Annual portable appliance testing for any electric equipment you use
• Gas equipment, which will need annual checks  to be safety-compliant
• You will need to carry the appropriate firefighting equipment in your van. Find out what you need on the government website

What food hygiene standards do you need to follow?

Ensuring your food hygiene standards are up to scratch is essential.

When running a street food business you will need to ensure that:

• You and your staff each have passed a Level 2 food safety qualification which usually costs around £100 to get
• All food is stored at the correct temperature
• You can provide ingredient lists and allergy information

How much does it cost to set up a food truck business? 

This will depend on your individual plan and the venture you have in mind. 

Some of the key considerations you will need to budget for are:

• The van itself
• Relevant licences and certificates
• Ingredients
• Equipment
• Food packaging, cutlery, napkins  for customers 
• Staff wages
• Branding such as van designs, awnings etc
• Pitch fees

How to set up your food truck 

To fully understand how to start a food van business, follow these simple steps.

1. Find your niche

You need to start by working out what you’re going to sell. Your street food business needs a niche and that could be anything from a specific cuisine to a specific ingredient. 

To find the right niche, you’ll need to work out what your passion is, and what you’re good at, and balance this with what you think will sell well.

For example, there’s no use choosing to sell Asian food for example if you don’t have any idea about the flavours and ingredients of Asian cuisine. 

2. Set a budget

While a street food business can be profitable in the long run, there are a lot of initial outlays to think about including paying for permits, buying a van, purchasing ingredients and hiring staff.

Be sensible about how much you can afford to spend and what areas will need the most financial investment. 

Set a budget for your first year of business that will allow you to build the foundations of your street food business and keep business accounts so you can track all of your money in and money out. 

3. Buy equipment

One such investment that you can’t avoid is the purchasing of equipment. You will need a van, plus equipment and appliances to cook your food.

Exactly what you need will depend on your niche and the food that you plan to cook, so make a list of everything you want to feature on the menu and then work out exactly what you’ll need for each dish.

Consider buying your equipment wholesale to save money and don’t forget about food containers, cutlery and packaging too!

4. Build a brand

Building a brand for your street food business will allow you to promote your business and start building an interested, then hopefully loyal, following and customer base.

A good brand ensures that your business is easily remembered and recognised and stands out from the crowd. You want to become the face of that product…in time. 

Things you’ll need to consider include:

• A name for your business
• A logo for your business
• A brand identity for your business such as tone and colour

5. Promote your food van

Promoting your food van will ensure that customers seek out your dishes and even consider hiring you for private events.

Ways you can promote your food van business include:

• Set up social media accounts for your street food business and showcase your food and menu
• Launch a website for your street food business, and consider adding the ability for people to book you for a private event directly on your website, even by QR code
• Attend street food and local events to get your brand in front of customer’s eyes
• Offering discounts and special offers is a great way to draw attention to your food van and encourage return customers

Is a food van profitable? 

How much you can earn from a food van business will depend on a variety of factors.

What we can tell you though is that when you first start out, street food earnings can vary, meaning many people choose to launch their street food business as a side hustle alongside their regular job. You can then build up your street food business until you’re ready to go full-time.

Once you have the initial outlays out of the way, such as buying your van, then your biggest expenses will be paying for ingredients and pitch fees for local events. 

Your earnings will also likely fluctuate between different seasons, depending on the type of food you are selling. 

A hot chocolate van, for example, would make a lot more money during Christmas and the winter months than it would during the summer.

Your profits will depend on how much you charge for your food. We recommend setting a price and testing it for a few weeks before deciding if it needs to be lowered or upped depending on customer feedback and your expenses. 

So, should you start a food van business? 

When you’re wondering how to start a food van business, you’re probably also wondering should I start a food van business?

Just like when starting any business, there are pros and cons that you will need to consider to make an informed decision. 

Pros and cons of starting a street food business

Final thoughts

Starting a street food business is an exciting endeavour that can be profitable if run correctly. 

There is a lot to get your head around, including all the relevant UK rules and regulations and working out the budget you’ll need to make your initial purchases. However, the possibilities are endless – and if you are particularly creative, or at least have creative ideas, you can really set yourself apart, even in a busy market.

Hopefully, this guide has given you more understanding of how to start a food van business and provided the expert help and tips you need to get started.

Once you’re ready to hit the streets, we recommend downloading our free business plan template so you can formalise your above ideas and get those empty stomachs filled.