Small kiosk/van for "Street Food"

[Reculver]

Hello!

This is not my idea as i'm starting another business, but is an idea of some people "near" me.

I don't know too much about starting a little business and selling "Street Food", and some friends of mine asked me about it.. (because they don't living in UK).

I'm based in London and they are interested to invest here.. to open a small activity like this.

How much money do you think they need?
Wich "certificate" etc.. they need?

The idea is not very "original", they would like to sell product as pizza, arancini etc.. For a small price £1-£2 each.. for example.
The best area would be a busy market like Camden Town, or in a "business area" like Canary wharf, but this is another thing..

Thanks in advance!

 

[uksme]

Hi @Reculver ,

The gov.uk website has a lot of helpful information on setting up a mobile food outlet - it's also worth approaching the local council (either Camden Council or Tower Hamlets in the case of Canary Wharf) as they may be able to assist you, and in any case you'll need to register with them before you can start trading.

 

[Reculver]

Hi, thanks for your reply.

I will check the website for the information about the certificate, permission etc..

But i would also know how much (more or less of course) they need to open an activity like this.
I know just that to buy a catering van (used) you need 4000-5000 pounds. But for all the rest?

 

[uksme]

I can't advise you on all of the various startup costs if you were to start trading from scratch, but I can advise you based on what we see on our site (DaltonsBusiness.com), where it's mostly mobile catering businesses that are advertised, as opposed to mobile catering vans.

When I review the market stats on our site for 'mobile catering businesses' today, I can see that the average asking price for a mobile catering business is £68,955, and the average annual turnover (where quoted) is £155,478.

This is of course significantly higher than the £4,000 - £5,000 you were expecting, but it's important to remember that this is the average asking price for a mobile business being run as a going concern, as opposed to the price for just a vehicle. You would be buying an up-and-running business with a proven track record, established cash flow and all of the necessary equipment, pitch agreements and licenses (where applicable) required to run the business. It's also just an average value: some mobile catering businesses cost more than this and some cost significantly less - it all depends on the scale of the business, its potential and its track record to date.

I hope this helps

 

[Reculver]

I saw different websites, and the costs just for a small second hand van is from 1000 to 10000.
Even if you look a some website like gumtree you can find some for this price, i don't think that you have to spend £70,000 just to buy the van..

 

[uksme]

That's correct - a price range of £1,000-10,000 for the van alone is probably about right.

The £70,000 figure I mentioned earlier is simply the average asking price for a fully equipped, operational business (e.g. the van, the pitch, the client book, the equipment, the staff, the goodwill, the limited company and so on). This figure is the average asking price of all of the mobile catering businesses for sale currently being advertised on DaltonsBusiness.com as of today 16th January 2014.

 

[Reculver]

Yes, but is not what they are looking for. In your "70,000" you buy the activity that already work, and already have a profit..
But they want to start from 0, so just buy the van, get the licence, rent a pitch etc.. step by step

 

[uksme]

OK @Reculver I understand - sorry I couldn't be more helpful

 

[marketmill]

Hi Reculver

Sounds like you are still looking for some advice on this?

I would definitely visit the Nationwide Caterers Association ncass.org.uk since they are the trade association for mobile catering a wealth of information.

And of course Marketstartup, marketstartup.co.uk, as they have a great deal of information for all market traders including foodies.

Between these two sites you should get most of the information you and your friends require regarding street food.

Hope this helps and all the best of luck in your new venture

 

[Reculver]

Hi Reculver

Sounds like you are still looking for some advice on this?

I would definitely visit the Nationwide Caterers Association ncass.org.uk since they are the trade association for mobile catering a wealth of information.

And of course Marketstartup, marketstartup.co.uk, as they have a great deal of information for all market traders including foodies.

Between these two sites you should get most of the information you and your friends require regarding street food.

Hope this helps and all the best of luck in your new venture

Hi, thanks for your reply!

I already saw something on that website, but i have still to read carrefully as there are a lot of information there.
We are also thinking to open a stall in the market instead of a van.

Unfortunately there are some difficult.. one for example is that we living in a shared house, really hard for keep food and preparing it at home.
Do you have any personal suggestion to give to me?

 

[marketmill]

I think the stall idea sounds very achievable and I understand the issues with the share house
I would suggest you speak with Alan Fox at NCASS, Alan has always been extremely helpful and knows the business backwards.

And have a really good look through the links and articles on marketstartup as there is a great deal of information from other people who have started food stalls.
You may look at hiring or using someone else's approved kitchen for prep, even get together with another trader and pool your resources or come up with a menu that does not require off site prep all prep done at the stall.

Best of luck