Start a Food Van Business in the UK: Essential Steps for Success and Profit

Home / Side Hustles / Start a Food Van Business in the UK: Essential Steps for Success and Profit

summary

• Launching a UK food van requires specific street trading licenses.
• Startup costs range from £5,000 to £50,000.
• Average annual turnover for food vans is around £100,000.
  

🎧 Listen Now: Sidehustles.co.uk One-Minute Podcast: Start a Food Van Business in the UK

Owning a food van enables you to tap into the growing street food culture in the UK, while providing you with the opportunity to build a substantial and flexible income.

This exciting venture combines culinary passion with the freedom of a mobile business, allowing you to bring your favourite dishes to a variety of bustling locations – from spirited festivals to local markets. It’s a business that not only aligns with the increasing popularity of street food but also offers the potential for significant earnings through savvy marketing and strategic location choices.

However, starting a food van business isn't just a matter of buying a van and setting up shop anywhere. It requires careful navigation through a series of regulations, obtaining the right licences, and careful business planning.

In this comprehensive guide, we delve into the essential steps and legal requirements necessary to successfully launch your food van business in the UK. Whether you dream of serving gourmet sandwiches, artisanal coffees, or vegan delicacies, we provide the insights you need to transform your vision into a lucrative reality. Let's embark on this appetising entrepreneurial adventure!

Having a thorough understanding of the initial requirements will help streamline the application processes and ensure that you’re not breaking any laws. Here are the essential rules and regulations to keep in mind.

Food vans appeal to many aspiring business owners because it seems as though you can go anywhere and start selling. However, there are restrictions. You can’t simply park your truck or van anywhere. There are two types of permits you can get: a Street Trading Licence and a Street Trading Consent.

Street Trading Licence

You need a street trading licence for licensed streets, and this is usually restricted to a fixed location.

Street Trading Consent

This permit is less restrictive, and it’s for selling on consent streets. Both licenses can be obtained from your local council.

One type of street you can’t sell on is a Prohibited Street, where setting up a business is impractical or unsafe, such as motorways or thoroughfares.

Parking and selling food on private property is another matter altogether. You will need to coordinate with the owners or event organisers to park your food van. In some cases, you may still be required to get permits from the local council.

Aside from parking permits, you will need to obtain a few certificates before you can start operating. These are usually related to food, health, and safety regulations.

LPG Certificate

You need to have a Liquified Petroleum Gas (LPG) certificate if you’re using a gas stove that uses LPG.

PAT Test

PAT stands for portable appliance testing, and you need one to ensure that the electrical appliances you’re using are safe.

Food Hygiene Certificate

You will need to get a Level 2 Food Hygiene Certificate for Catering to show that you’re qualified to handle, prepare, and serve food. You may also need to write a plan based on HACCP principles.

Commercial Gas Safety Certificate

This certificate is similar to the LPG certificate. This time, the focus is on appliances that use gas, ensuring that they are safe to use. Find a gas safety engineer to get an evaluation and obtain your certificate.

Licences are also essential requirements. Aside from a street trading licence, there are a few others to keep in mind. Take note of the following:

Food Business Registration

You need to obtain this licence at least 28 days before you start selling food. Apply on the GOV.UK site for food business registration.

Food Premises Approval

This licence is applicable to those who are going to use, sell, or handle meat, dairy, seafood, and poultry products. Those selling completely vegetarian food are exempted.

alcohol Licence

A Personal License is required if you’re selling alcohol on your menu.

Premises Licence

Those who will be selling hot food and drinks from 11:00 PM to 5:00 AM will need to have a premises licence. Personal and premises licences are available at your local council.

Six months after opening, your local council will conduct a food hygiene inspection. Make sure to prepare a Hazard Analysis and Critical Control Point Plan (HACCP plan). A risk assessment plan is also required, and this should outline potential hazards you may face and how to prevent them.

Choosing Your Cuisine

This is perhaps the step where you can be as creative as you want. Choosing your niche or cuisine is important since this will determine the kind of equipment, licences, and ingredients you’ll need. We recommend sticking to one or two specialities to keep your stock manageable and avoid efficiency issues.

Some options include:

• Hotdogs and sandwiches
• Burgers
• Fish and chips
• Pizza
• Desserts and baked goods

Still, the market can be too crowded with these options. You can stand out or fill a market gap by offering speciality food. Indian, Thai, and Chinese food are great options. Those who like to bring together food and fitness can offer low-carb menus, keto-friendly dishes, and vegan options.

Your food truck business plan serves as the blueprint for every aspect of the venture, and having one is important since it outlines your business goals, description of your business, marketing strategies, and more. The business plan is the document you’ll show to possible investors or partners, so they’ll have more confidence in you and your food van business. Here are a few key components your business plan should have:

Executive Summary

Contains a summary of your business plan, outlining all the important points that investors would care to notice. The summary should talk about your niche, your target customers, business goals, and financial projections.

Company Description

Your company description goes into detail about your niche, your business structure (are you a sole-trader or limited company), and other information that attracts potential investors.

Market and Competitive Analysis

You must show a thorough understanding of the market and the competition. These analyses help you gain a better perspective of what customers want and how you can stay relevant against a sea of competition.

Financial Operations and Projections

This section will detail how you’ll manage transactions, expenses, and budgets. You should also include income projections to show that you have an in-depth understanding of how your business might perform in the current market.

Another essential step to starting a food van business in the UK is planning your budget. The start-up costs will can be high with a food van, so you may need to secure capital, especially for the food truck itself. The vehicle will be the most expensive investment, but there are cost-effective options, like second-hand trucks. Aside from the food truck, you’ll need to dedicate funding for the following and more.

• Cooking equipment and fuel
• Licences, certificates, and permits
• Insurance and taxes
• Marketing and advertising efforts
• Van maintenance, fuel, and accessories
• Tables, chairs, and utensils for customers
• Wages if you plan to hire cooks and other staff
• Inventory and supplies

How much capital do you need? The National Caterers Association suggests anything between £5,000 and £50,000 to start a food van business in the UK.

Planning the type and amount of equipment you’ll need is also essential. The most basic pieces of equipment would be refrigerators, LPG tanks and stoves, and kitchen utensils like knives and chopping boards.

Then, you’ll need to consider your niche for other types of equipment. For example, if you’re serving desserts, you’ll need blenders and food processors. Those who are cooking hot food will require fryers, grills, or microwaves. If you’re going to sell drinks, bar accessories like cocktail shakers and spirit measures are a must.

The final requirement applicable to all niches or cuisines is cleaning equipment and health and safety essentials. Make sure to have fire extinguishers, first-aid kits, and cleaning products to keep your food truck safe and hygienic. You can read more on the health and safety requirements here.

In the UK, Employers’ Liability Insurance is legally required. However, you may benefit from other types of policies. Public liability, product liability, and vehicle insurance offer protection from various risks and can secure your financial well-being.

Speak to a qualified insurance broker who can assist you with getting suitable insurance cover.

Food trucks still need marketing to succeed, even though you’re likely to be in places that already have high foot traffic. Take advantage of social media to ensure maximum reach. This means creating pages on popular platforms and posting copy and graphics that entice customers. Setting up your own website is beneficial as it allows you to have a virtual storefront where customers can view menus, contact your business, or make advanced orders, if applicable.

Traditional advertising also goes a long way. Make sure to have ads in local newspapers or put up posters to increase impressions and make your brand more familiar to potential customers.

Consider setting up your own blog to document your food van journey, your menu and where you'll be located next.

You’ll need to have a system to ensure that you’re keeping track of every business transaction, from sales to supply purchases.

We recommend setting up a business bank account to separate personal transactions from business ones.

You can also work with an accountant or use accounting software to easily manage records and provide accurate information once you need to file your tax return. Before your first sale, set up your payment systems so you can accept online or card payments, not just cash.

Before you commit to starting a food van business in the UK, you should understand its advantages, disadvantages, and earning potential. This way, you’ll know if this type of business is truly the best fit for you.

Pros

• More cost-effective and less risky than opening a restaurant or other fixed-location hospitality businesses (you can go where the demand is)
• Lower operating costs
• Can be brought to most locations, especially ones with high foot traffic
• More room for expansion; can be used as a stepping point to establishing a restaurant
• Lower investment risks

Cons

• Lots of regulatory requirements that you need to follow, with some local councils including additional rules not outlined in this primer, so speak to them first
• Unpredictable or long hours
• Tight spaces, which might impede workflow efficiency and lessen storage space
• Bad weather can affect operations and prevent customers from coming to get food

Like most other types of businesses, your earning potential as a food truck business owner depends on an array of factors. These include your location, local competition, and marketing strategies. According to The Standard, sales turnover for a mobile food van is £100,000 on average annually.

Generally, food vans can expect a gross profit margin in the range of 65% to 70%.

To increase your profits, you must put in effort to develop various aspects of your business. Good marketing campaigns, quality food, and friendly staff can all contribute to a better business reputation and more repeat customers. Regularly securing slots for local events or festivals can also help you take advantage of days with high foot traffic.

Opening a food van business in the UK is a great way to share your passion for cooking while earning at the same time. Few businesses offer the flexibility and profit margins that a mobile food van does, meaning you’ve got great potential to make a lot of money.



However, there are a lot of things you need to consider when establishing your own, from securing permits to creating a business plan and marketing strategy.

Use the guide above to get an idea of what it takes to start this type of business and if it’s something you think is worth pursuing.

Before you go, remember that exploring the world of side hustles can open up a realm of possibilities and additional income streams. Your journey doesn't stop with a food van business. Why not discover more opportunities? Dive into our next article, "The Top 10 UK Side Hustles," where we explore the most lucrative and manageable side hustle ideas that could complement your entrepreneurial aspirations. Don't miss out on uncovering new paths to financial success and flexibility.

THE TOP 10 UK SIDE HUSTLES

🎧 Listen Now: Sidehustles.co.uk One-Minute Podcast

 Start a Food Van Business in the UK: Essential Steps for Success and Profit

Welcome to the Sidehustles.co.uk One Minute Podcast. In the next 60 seconds, we're sharing a real-world insight from our network of seasoned side hustlers. This quick tip is designed to offer you practical advice that you can apply immediately in your side hustle journey.

In today’s quick insight, we’re shedding light on a valuable tip for those interested in starting a food van business in the UK. It's all about location and understanding the local regulations. Our discussions with a network of successful small business owners reveal that choosing the right spot to park your food van is not just about foot traffic. It’s crucial to be fully aware of the different types of permits required, such as a Street Trading Licence or a Street Trading Consent, depending on where you plan to operate. Each local council has its own set of rules, and navigating these successfully can make a significant difference in your business’s success. Remember, a great location coupled with the right permits can turn your food van into a thriving hotspot.

That's your one-minute real-world insight. Stay tuned for more!

https://www.gov.uk/find-licences/street-trading-licence

https://www.gov.uk/food-safety-your-responsibilities/food-hygiene

https://www.gov.uk/guidance/food-business-registration

https://www.ncass.org.uk/resources/how-to-start-a-catering-business/running-your-business/how-much-does-it-cost/

https://companieshouse.blog.gov.uk/2019/04/30/what-insurance-does-a-small-business-need/

https://www.standard.co.uk/lifestyle/how-londons-food-trucks-became-big-business-a3710746.html