Beginner’s Guide on Starting a Street Food Business in the United Kingdom
It is a dream for every investor to start a company with relatively low investments while yielding high profits. Furthermore, everyone wants to operate in a sector where there is never a shortage of customers. One idea that combines both of the above statements is starting a street food business.
Most street food businesses in the United Kingdom require an investment of a few hundred to a maximum of 5000-pound sterling’s. Furthermore, we all know how much the United Kingdom loves food; the country’s food and beverage industry has been valued at around £100 billion.
In this article, we look at what a street food business is and what you require to start a street food business in the United Kingdom.
What is a Street Food Business?
A street food business is a business that sells food items on the street. The food is normally prepared on a moving vehicle like a truck or a cart. Street food items tend to be cheaper than the ones in restaurants, and since people see the preparation of food with their own eyes, they are more trusted by consumers.
A street food business has various benefits but also some disadvantages. For the benefits part, it is cheap to set up, you can move around with your products, and you don’t need to pay rent. On the other hand, the disadvantages are a competitive market, limited space as you can only operate in designated areas, and the unpredictable UK weather, which often results in rain.
Street Food Business Trends and Market Conditions
If we are completely frank, last year may have been the worst year for street food vendors because of the pandemic. They couldn’t operate like normal, and many had to halt operations completely.
However, the situation is changing with the vaccination programs. People are slowly starting to get back to their normal lives, but this time, they are more careful about their health. So, using all the health guidelines is of utmost necessity.
Furthermore, digitization and home deliveries should also help propel your business to new heights. Don’t forget, business is going to be a little slow for some time, and you should look to prepare food that people can easily pack and take away. Furthermore, microwavable packages can bring you a lot of customers.
What is the Process for Starting a Street Food Business in the United Kingdom?
You can register your company yourself or hire company incorporation services to register without any hassle. These are the steps for starting a street food business:
Create a Business Plan
The first step for starting a food stall business is starting a business plan. A business plan consists of your goals and the roadmap to the goals. What do you want to achieve with your business, and how do you plan on achieving that?
Your business plan should consist of a summary of your business idea, a marketing plan, menu, location, costs and funding’s. It also helps to have alternatives or a plan B; for example, if a certain type of food doesn’t sell a lot, you can plan what else to cook.
Decide on a Location
A location can make or break a street food business. However, the high population density in the UK means you could find a steady flow of customers anywhere, but if you want to make serious profits, you need to place your shop in a convenient location.
One pro about a street food business is that you don’t need to wait for your customers to find you. Rather, you can go out and find your customers.
You will have to choose an area near schools, stadiums, terminals, offices, or busy roads with high foot traffic. Also, try to manage your time well. For example, you can place your stall near a workplace during lunch hours and go to an area near a school between 15:30 and 16:00 in the afternoon.
Decide on a Menu
This is the most important thing for you to consider. Deciding on a menu that people will love but also afford.
The United Kingdom is a melting pot of different cultures. People from all around the world call the country home. People are always open to trying new experiences in the United Kingdom, so you can always get creative with your food.
However, don’t forget to base your menu on your target market. Also, you should have an alternative menu in place if you are skeptical about your offerings.
Register Your Business
The most preferred business structure for starting a street food business in the United Kingdom is a sole proprietorship. Normally, the registration for a sole proprietorship is very simple, but that’s not totally the case for a street food business.
You see, the United Kingdom has some strict policies regarding license’s and hygiene. Also, you need to register for the taxes. All this could be overwhelming and tiring for you, so it is always a good idea to leave registration to experts.
For more information about registering a company in the United Kingdom, check the guide to company registration in United Kingdom.
License’s You Will Need
The United Kingdom is known for having one of the most active and responsible Foods Standard Agency (FSA). Furthermore, the Environment Health Office monitors the quality of food and food places. You need certain license’s for starting a street food business in the United Kingdom. Furthermore, you need to fulfil gas safety requirements and prepare for regular inspections.
Since there are strict licensing requirements for street food stalls in the United Kingdom, you should contact a lawyer or a corporate service provider to know about all the requirements. Talking generally, you may need the following license’s:
England and Wales
- Food Business Registration.
- Premises License for conduct ‘licensable activities’ at a particular venue.
- A Temporary Event Notice for carrying out a ‘licensable activity on unlicensed premises.
- Notification of Marketing of Food for particular nutritional uses.
- Street Trading License.
- Food Premises Approval for selling or handling meat, fish, egg or dairy products.
- An environmental permit or an exemption if in any way you want to discharge liquid waste to inland freshwaters, estuaries or coastal waters.
- Pavement License if you want to display advertisements on pavement or street.
- Child Work Permit if you want kids to help you out.
- Personal license to sell alcohol.
- Pedlar’s Certificate to trade while on foot.
Scotland
- Permission to Place Tables and Chairs in the Road.
- Permission to Use Street or Pavement Space for displays advertisements and banners.
- Food Business Registration.
- Premises License for carrying out ‘licensable activities’ at a particular premise.
- Street Trader’s License.
- Personal license to sell alcohol from licensed premises.
- An Occasional License if you want to sell alcohol from unlicensed premises.
- Extended Hours Application for selling food or drinks between 11 pm and 5 am.
- Pedlar’s Certificate.
- Food premises approval to handle meat, fish, egg or dairy products.
Northern Ireland
- Food business registration.
- A Fish dealer’s license to sell salmon, trout, eels, pike or pollen from a vehicle or premises.
- License to sell alcohol.
- A Street Trading License for trading in the street in Northern Ireland.
- Food premises approval for sites that handle meat, fish, egg or dairy products.
- Pedlar’s certificate.
Other General Requirements
- You need to display the certificate of valid Employer Liability Insurance for employing someone.
- A Health and Safety Policy Document for employing five or more employees.
- A Documented Food Safety Management System based on the principles of Hazard Analysis & Critical Control Points (HACCP).
- A Fire Risk Assessment if you have more than five employees.
- Every food business in the United Kingdom requires separate hand and pot washing facilities. You also need a hygienic hand washing facility.
Hygiene Requirements for Starting a Hawker Stall Business
In addition to the above license, you need to follow specific hygiene requirements for starting a street food business in the United Kingdom.
Actually, anyone handling food or conducting operations in the food business must have hygiene training. There are three levels of food hygiene training; Level 1 Food Hygiene Training, Level 2 Food Hygiene Training, and Level 3 Food Hygiene Training.
Level 1 training is for anyone directly touching open food. Level 2 is for staff handling open food, and other employees like managers and business owners should get the level 3 training.
Conclusion:
The demand for street food may have decreased during the pandemic, but it will go back to normal once everyone is vaccinated. In other words, you can never go wrong in this business if you can cook awesome food and can market well.
However, registering and getting the license’s for starting a street food business could be confusing, especially for first-timers. Actually, owing to the number of license’s you need, you should ask for professional help.
3E Accounting is a leading corporate service provider in the United Kingdom which has been established to help entrepreneurs and small businesses reach their goals. We can register your company for you and provide you with every assistance you need to set up and run your food stall business. Contact 3E Accounting for more information.