How to Start a Street Food Business

From small towns to bustling cities across the world, it is obvious that street food business is a growing trend that has come to stay. This unique food business venture is not only drawing street food fans but also bringing in good cash for entrepreneurs. From the food trucks to the mobile food carts, the street food business is a $2.7 billion industry that has experienced more than 12% growth in the past 5 years.

So if you are passionate about food and love to own your own business and be your own boss, there is no better time to ask about how to start a street food business. However, whether you are new to the world of business or have already been a serial entrepreneur, there are lots of things you need to learn before jumping into the business.

In this post, we have provided some useful tips that can help show you where to get started with a street food business.

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How to Start a Street Food Business

1. Conduct market research

This is obviously the first thing you should do when thinking of starting a street food business. Market research involves understanding the “what, who, where, when, and why” of your business. It will be very silly of you to assume you already know all of these without first conducting research.

In your market research, things you address include, who your target market will be, competition in your area, the location to choose, and if such business is in-demand in your area. All these will give you a proper insight into whether to start a street business or consider other sectors of the food business industry.

2. Acquire the right skills for a street food business

Like any other venture, you should have the right skills to make your business successful before you even think of starting it. If you will be hiring staff or going into the business with a partner, you may not need all of these skills. However, there are some you need to have personally before you start while you develop some along the journey.

Some requisite skills you should have include:

• Cooking skills: the most certain thing in this business is that you will be spending most of your working hours cooking food. And to be able to keep your existing customers and attract new ones, you need to consistently produce high-quality food and at a quick pace.
• Business skills: of course, cooking is not the only thing involved in a street food business. Many things come together to make the business successful. So you will need business skills to scale high with the business. Some of such skills include marketing skills, design, finance, management, and customer service skills.

3. Choose your street food business platform

Street food business can be run on a variety of platforms. The business can come in different sizes, shapes, and forms. Therefore, you need to decide which one is right for you and go for it. However. Your choice should be based on your budget, vision, time commitment, target demographic, and experience at running a business.

Some of the options available to you are food carts, food stands, food trucks, and concession trailers. While each of them has its unique benefits, they also have their unique challenges as well. So do your research well before choosing one you think is best for you.

4. Choose your concept and menu

These days, most street vendors don’t just sell the regular way. They now sell with a concept. It doesn’t matter what platform you choose, you need to find one unique concept that will distinguish you from the rest. Your concept should reflect in all your elements, including your branding, exterior design, recipes, and menus.

Choose what kind of food to sell. Consider your area, your cooking skills, profitable foods, foods you can cook at a fast pace, and how many items will be on your menu list. After choosing what type of food to sell, consider working on your recipes, and don’t be afraid to experiment with various ingredients.

Once you found a few favorites, test them on your friends and family members and be open to their critics. Work to improve on your menu and recipe based on their critics and get ready to enjoy the dividend from your business.

5. Determine the legal requirement for your business

This is also very important. While you are planning to be on the good side of your customers, you also need to strive to run your business legally. However, the legal requirement for a street business varies from state to state. So walk up to your local Health Department to guide you on what type of license and permits you need to have before opening your business.

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6. Determine what equipment you need for the business

Although the specific type of equipment required will depend on the type of cuisine, every street food business needs equipment to cook, prepare, and serve foods. Determine what equipment you need and see how you can get them.

Consider starting small at first. Use your home kitchen equipment to prepare your food. When the business starts growing, you can consider buying your equipment gradually. However, some major equipment you might need include a lockable money tin, disposables like paper plates, plastic cutlery, and napkins.

7. Write a business plan for your street food business

Even though this kind of business only requires small money to start, jumping into it without a proper plan is simply a good way to disaster. You are entering into a really competitive space, so you need to plan well so you can succeed. Write a detailed and comprehensive business plan for the business. Some elements that should appear in your writing include your:

• Business name
• Mission statement
• Startup costs and operational costs
• Equipment you need
• Your location
• Funding source
• Competition
• Marketing strategy
• Delivery strategy
• Logistics and customer service.