Takeaway from home

[Abbyboo92]

Takeaway from home
I am starting a takeaway from home very soon, but very stressed out I feel like I’m missing something! This is my first business gone into it with no experience at all apart from a love of business.
• registered sole trader, self assessment and registered as an employer
• got permission from landlord
• got level 2 food safety hygiene certificate
• made a menu, allergen info spreadsheet, safer foods booklets
• job interviewed a driver, wrote an employment contract, starter form, just got to set up payroll with sage
• registered with wholesaler (need to sort a shopping list out)
• adverts on social media, set up with just eat
• set up a business bank account

Things I still need to do:
• print menus and leaflet distribution
• wait for food inspection visit (and deep clean my kitchen!)
• buy equipment, food, work out where to store it all

Have I done everything I need to? Still got a few more weeks. Really stressed about food inspection visit as I don’t know what to expect also unsure how much food I need to buy for opening week? Worried I’ll get no orders but it’s been very popular on social media already-there’s only one takeaway in my area and nothing like what I am selling

 

[kulture]

Do you have planning permission? Not knowing where you live it is impossible to say for certain, but I find it hard to believe that you would ever get planning permission for a takeaway from a residential property.

Also do you have the correct insurance. Product liability, employee liability, and buildings and contents insurance FOR A COMMERCIAL KITCHEN.

I wonder if the landlord has considered that the building may not be insured for the additional risks involved in running a commercial takeaway from the property.

 

[Abbyboo92]

Ah forgot to mention it is a delivery only takeaway no planning permission needed no customers will know the address
Also do have insurance and the landlord is a housing association
It is cold food only too

 

[Stas Lawicki]

As above, you will need insurance, as will your delivery driver.

What about:
a crm
Online payment platform - PayPal etc
GDPR compliance
Registered for ni
Registered for vat (presumably you will be buying a lot of goods and paying vat on it, even if your turnover is below the threshold).
Vehicle details (to ensure it is fit for the job and insured).

Why aren't you Ltd?! Is there any particular reason...?

 

[Mark T Jones]

the landlord is a housing association

I'd certainly look at your tenency agreement - Association landlords frequenter prohibit the running of a business from the property

Whilst you've covered a reasonable number of technical bases (far more than most F & B start ups, to be fair), what I'm not seeing is any realistic business proposition.

Why will people come to you?
You will you handle peaks and troughs of demand?
How about stock conrol etc, etc

 

[Nochexman]

• print menus and leaflet distribution

Is this how you primarily expect to build up your customer base?

Are you retaining your driver or are they employed on a gig basis?

 

[Mr D]

Question is can you make money?

Lots of places open up then shut down after they run out of money. As a sole trader you are personally liable for any debts of the business.

 

[Abbyboo92]

Again I have signed a contract with housing association, they have certain conditions I had to meetthe

Is this how you primarily expect to build up your customer base?

Are you retaining your driver or are they employed on a gig basis?

They are employed on a part time basis 25 hours a week. Most of my customer base will be on just eat

I can definitely make money, it’s already very popular on social media, word of mouth. There’s only 1 other takeaway in my area which sells pizza, mine is selling cakes waffles desserts etc and I have very little outgoings for the business (stock, driver expenses (£10 an hour))
I already have a £100 birthday made for the day I open

I have worked out I need to make at least 6 orders on £15 minimum spend to cover profit and driver and fees each night
I registered as sole trader because it seems easier if I was to pay myself a wage
Eventually I want to leave just eat and only do phone orders but don’t wanna complictate things all at once

 

[Nochexman]

...Most of my customer base will be on just eat...

Sounds good Abby. Out of interest what are JustEat charging you?

 

[Abbyboo92]

I have nothing to lose from this, already have drivers wages ready for the next 4 weeks, stock

Sounds good Abby. Out of interest what are JustEat charging you?

14% :/ but worth it for advertising I live in w popular tourist location and most people look on just eat
Plus £298 start up fee which is taken from first orders

 

[ComPropSolicitor]

have nothing to lose from this

would have to be a crazy person to be running any sort of food establishment these days without the protection of the corporate veil - one person with one allergy could see you lose everything.

 

[Mr D]

Again I have signed a contract with housing association, they have certain conditions I had to meetthe

They are employed on a part time basis 25 hours a week. Most of my customer base will be on just eat

I can definitely make money, it’s already very popular on social media, word of mouth. There’s only 1 other takeaway in my area which sells pizza, mine is selling cakes waffles desserts etc and I have very little outgoings for the business (stock, driver expenses (£10 an hour))
I already have a £100 birthday made for the day I open

I have worked out I need to make at least 6 orders on £15 minimum spend to cover profit and driver and fees each night
I registered as sole trader because it seems easier if I was to pay myself a wage
Eventually I want to leave just eat and only do phone orders but don’t wanna complictate things all at once

As a sole trader your income is the profit of the business.
Paying yourself a wage would require a limited company which then employs you. Sole trader you and the business are one.

You have factored in how to cover the delivery when your driver is off sick or on annual leave (28 days annual leave minimum)?
And what happens when you don't have enough orders some nights? You still pay wages, pension etc.

 

[Abbyboo92]

would have to be a crazy person to be running any sort of food establishment these days without the protection of the corporate veil - one person with one allergy could see you lose everything.

I have insurance & my child has a severe allergy to a top 14 allergen so I know first hand how serious they are. Also I am not making any high risk food most of it will be buying cakes frozen defrosting them and putting them in a box. Waffles is a premade waffle mix from wholesaler mixed with water

I have i sure

As a sole trader your income is the profit of the business.
Paying yourself a wage would require a limited company which then employs you. Sole trader you and the business are one.

You have factored in how to cover the delivery when your driver is off sick or on annual leave (28 days annual leave minimum)?
And what happens when you don't have enough orders some nights? You still pay wages, pension etc.

paying myself would not require me being a limited company. It requires me transferring money from one account to another this way
I highly doubt we wouldn’t have enough orders some nights and I do have another source of income anyway (hence being able to pay all this) I worked out drivers annual leave to be 23 days from 25 hours a week
Planning on getting another driver once we go full time in case one is off the other can cover

would have to be a crazy person to be running any sort of food establishment these days without the protection of the corporate veil - one person with one allergy could see you lose everything.

 

[Mr D]

I have insurance & my child has a severe allergy to a top 14 allergen so I know first hand how serious they are. Also I am not making any high risk food most of it will be buying cakes frozen defrosting them and putting them in a box. Waffles is a premade waffle mix from wholesaler mixed with water

I have i sure

paying myself would not require me being a limited company. It requires me transferring money from one account to another this way
I highly doubt we wouldn’t have enough orders some nights and I do have another source of income anyway (hence being able to pay all this) I worked out drivers annual leave to be 23 days from 25 hours a week
Planning on getting another driver once we go full time in case one is off the other can cover

Transferring money is nice and all - but not what you get taxed on.
If you make £30k profit and draw £10k over the year your taxable income from the business is £30k.
Your driver - a 4 day week?

 

[Abbyboo92]

Transferring money is nice and all - but not what you get taxed on.
If you make £30k profit and draw £10k over the year your taxable income from the business is £30k.
Your driver - a 4 day week?

Yes we are only open 4 days a week for the moment I have a young baby so need time off

 

[Mr D]

Yes we are only open 4 days a week for the moment I have a young baby so need time off

So 23 days of those 4 day weeks you'll lose your current driver anyway. Plus more days for sickness - flu can be a couple of weeks for some people.

So from your sales you are covering cost of materials, delivery costs, employee wages, employee pension, insurance, marketing etc.
Hopefully you have some cash reserve to cover outgoings until sales are high enough.

 

[ecommerce84]

Credit to you, you are a lot more clued up than some of the new posters we see on UKBF.

We have a lad local to us who does Indian food takeaway once a week from home on a Saturday. He’s become so popular you generally have to get your order in by Thursday or you miss out.

I wouldn’t bother with leaflets, get yourself on Just Eat, set up a Facebook page and push your business on local Facebook groups - lots of pictures of your food looking good. The lad doing the Indian business above doesn’t even use Just Eat anymore - he posts on FB that the menu is up on his website and you order through there.

The food inspection isn’t as bad as you think it will be - the inspectors are there to help you also. I’ve had 2 inspections with 2 different councils and received a 5 on both occasions. Some tips I would give:

- if you require a fridge or freezer use a separate one to your home fridge or freezer if possible.
- make sure you have a separate hand wash to where you clean your utensils etc.
- store equipment and ingredients you use for the business separate to those you use for yourself.
- ensure all ingredients and food have date labels on and ensure one of your closing checks (below) is to check the dates and dispose of out of date goods.
- make yourself a folder with the following compartments:
1. Opening and closing check sheets
2. The ‘diary’ from the Safer Food Better Business Pack - complete it daily.
3. Fridge and freezer temperatures
4. Hot hold temperatures if used.
5. Delivery records sheet - use it to log stock you have delivered
6. Your allergens ‘matrix’ I.e what dishes you sell and which of the 14 allergens they contain. I always use this one: https://www.food.gov.uk/sites/default/files/media/document/allergen-chart.pdf
7. The Safer Food Better business pack documenting your food management plan. Fill it out completely and do what you say you do.

Ideally they like to catch you during service, if they do ensure you are wearing your protective clothing, using correctly coloured chopping boards, washing your hands when you should be.

They will want to ensure the kitchen is clean and well looked after but contrary to what many think they aren’t looking for it to be spotless. They are mostly concerned with cross contamination, how you ensure you cook, defrost, hold and store food properly how you ensure you don’t serve out of date food.

Having a family member with an allergen will actually play in your favour so emphasise that you understand the importance of getting it right. My partner is lactose intolerant and we have been on the receiving end of bad allergen advice and the results aren’t pretty but it means we are extra careful making food for others, and I explained this to the inspectors.

 

[Abbyboo92]

Credit to you, you are a lot more clued up than some of the new posters we see on UKBF.

We have a lad local to us who does Indian food takeaway once a week from home on a Saturday. He’s become so popular you generally have to get your order in by Thursday or you miss out.

I wouldn’t bother with leaflets, get yourself on Just Eat, set up a Facebook page and push your business on local Facebook groups - lots of pictures of your food looking good. The lad doing the Indian business above doesn’t even use Just Eat anymore - he posts on FB that the menu is up on his website and you order through there.

The food inspection isn’t as bad as you think it will be - the inspectors are there to help you also. I’ve had 2 inspections with 2 different councils and received a 5 on both occasions. Some tips I would give:

- if you require a fridge or freezer use a separate one to your home fridge or freezer if possible.
- make sure you have a separate hand wash to where you clean your utensils etc.
- store equipment and ingredients you use for the business separate to those you use for yourself.
- ensure all ingredients and food have date labels on and ensure one of your closing checks (below) is to check the dates and dispose of out of date goods.
- make yourself a folder with the following compartments:
1. Opening and closing check sheets
2. The ‘diary’ from the Safer Food Better Business Pack - complete it daily.
3. Fridge and freezer temperatures
4. Hot hold temperatures if used.
5. Delivery records sheet - use it to log stock you have delivered
6. Your allergens ‘matrix’ I.e what dishes you sell and which of the 14 allergens they contain. I always use this one
7. The Safer Food Better business pack documenting your food management plan. Fill it out completely and do what you say you do.

Ideally they like to catch you during service, if they do ensure you are wearing your protective clothing, using correctly coloured chopping boards, washing your hands when you should be.

They will want to ensure the kitchen is clean and well looked after but contrary to what many think they aren’t looking for it to be spotless. They are mostly concerned with cross contamination, how you ensure you cook, defrost, hold and store food properly how you ensure you don’t serve out of date food.

Having a family member with an allergen will actually play in your favour so emphasise that you understand the importance of getting it right. My partner is lactose intolerant and we have been on the receiving end of bad allergen advice and the results aren’t pretty but it means we are extra careful making food for others, and I explained this to the inspectors.

Very valuable advice, thank you so much, I think you’ve covered everything. One thing I am worried about is if EH come and I don’t have childcare that day. My kid will be ok playing by himself but he gets upset when strangers come round so will need picking up

 

[obscure]

Episode 4 of season one of the Netflix show Million Pound Menu features a guy who runs a take away from his Mom's kitchen and advertises by posting images on Instagram.

 

[Lisa Thomas]

Have you taken any advice from an accountant?

 

[Abbyboo92]

Have you taken any advice from an accountant?

My friend has recommended an accountant to me for £30 a month, going to message her today and see what she can help with. Are they necessary to have?

 

[Lisa Thomas]

I think they are a necessity really.

If you get something wrong dealing with taxes, payroll and accounts yourself it can be very expensive to try and fix with penalties and interest etc.

 

[BusterBloodvessel]

I'm afraid I have to disagree with ecommerce's post - if by any way you can you can avoid Just Eat, then do so. Their fees are around 20% of all orders placed and many takeaways feel "trapped" once they are in, and can't get out - how often do you see takeaways giving leaflets to order directly/using their own app and they will give you a discount, but they still can't get away from Just Eat.

I set up a similar business i.e. it was from a large home kitchen (actually a guest house kitchen so commercial-ish in terms of some equipment available) and only operating one day a week - we managed to grow it through social media and actually had Just Eat hounding us to use them even though we didn't need it - we were operating above capacity as it was and told people from day one that they ordered directly through facebook/phone/our app. I spoke to MANY takeaway and restaurant owners about going on Just Eat and every single one warned me off and said they'd get away from it if they could.

 

[Mr D]

My friend has recommended an accountant to me for £30 a month, going to message her today and see what she can help with. Are they necessary to have?

Not entirely necessary. You could do your own self assessment paperwork and own annual accounts.
But useful to have one when you are starting off. Time spent learning and doing accounts is time you are not being paid for.

 

[sminter1st]

We ran a delivery from home for a few months in between our takeaway closing and opening the restaurant. We still do takeaways from the restaurant. If you have any aptitude at all for social media, I would recommend avoiding Just Eat. Word of mouth and decent pictures/promotions on social media were all that were needed. The environmental health lady was really nice, she called us before she was coming obviously to check we were in as it was a home-run business. Safer Food Better Business folder is definitely the way to go, along with allergen info (we're the same in that our kids' best friend has a gluten allergy so we were very aware of things). Don't worry about your childcare, as long as you can show when you would normally be "open" your child/pet isn't with you in the kitchen, our twins were a bit younger then and we explained how we would deal with them, regarding health and safety etc. They do like to see separate handwashing facilities from where you wash up but they also are reasonable as long as you are making reasonable and safe adjustments.

Menus in the local newspaper can help catch people who aren't on social media.

A bit different situation to you as there were two of us, so my husband could deliver while I manned the phones and just took what we could handle in between deliveries.

As much book-keeping as you can handle, ie keeping receipts in order etc, will help save money with the accountant, but definitely use one for at least the beginning until you get stable.

Sickness can be a big problem as if you have any D and V etc you shouldnt be anywhere near the kitchen for at least 48 hours, but if you're not consistently available customers will tend to stop calling.

 

[Abbyboo92]

Brilliant advice thank you I have now got myself an accountant that is going to help me set up as a limited company. I wanted to use just eat as most tourists would look on there for food (I live in a popular tourist area) and also if I just run on Facebook it may be very slow in the beginning.