Can I start a roadside catering business?

People love to eat on the move, and there are few better sights for a hungry traveller than to see a tempting food truck up ahead. Indeed, from roadside vans to festival food carts the world of street food has undergone massive growth in the UK in the past few years – now worth an estimated £1.2 billion a year and growing all the time.

So, if you want to be part of a growing industry, love cooking quality food for discerning customers, and want to get away from being stuck in a traditional bricks and mortar unit then you might be considering starting a roadside catering business.

If you're serious, then read our guide to roadside catering to make sure you get your slice of the catering pie. But remember, when you’re all set up, Mobilers can help by arranging a catering insurance policy that suits your needs and budget.

Do I have what it takes to start a roadside catering business?

Just like any business venture, roadside catering requires a large dose of time, effort, and money to make it work. So, making sure you’re 100% committed to your project and have what it takes to succeed are questions always worth considering.

There are many reasons why starting a roadside catering business could be the best thing you ever do. But first ask yourself the following questions to see if you’re suited to a life on the road.

Am I happy to be my own boss?

Many people dream of being their own boss, but it’s not for everyone. It’s great not having to answer to anyone but would you be comfortable making all your own business decisions? Running your own roadside catering business requires you to do just that. From sorting out catering insurance and ensuring food hygiene standards are met to what offers to run and when to move pitch, there’s no hiding behind anyone else if things go wrong – the buck stops with you!

Can I afford the start-up costs?

Running your own bricks and mortar business requires a massive capital investment. Because most people don’t have access to that amount of cash the roadside catering business can be seen as an attractive option for those just starting out. But even ‘just’ a few thousand pounds, is not a small amount of money for anyone – can you afford to lose your investment if things go wrong?

NCASS the Nationwide Caterers Association estimates that even a small, second hand catering trailer in good condition for roadside or industrial estate trading could set you back up to £5,000. While you could be looking at between £5,000 and £10,000 for a second-hand van conversion suitable for the roadside. If you’re looking at something that’s capable of high quality and high output for large events then you’ll soon be approaching £50,000.  

And that’s just the upfront vehicle costs. A recent article in Business Leader estimated if you add in insurance, fuel, parking and licensing then setting up such a business could cost close to £18,000. By no means a budget option!

So, while a fancy top-of-the-range motorised trailer will make a great impression on those first customers, it will cost you.

Am I happy to start off small?

Giving up your day job and diving into a business full time is great if you know what you’re doing and know you enjoy it. However, if this is your first time it might be worth starting off with something small and inexpensive like a gazebo. Perhaps just operating in the evenings or at weekends.

How experienced am I in catering?

There are no qualification barriers to setting up a roadside catering business, but that doesn’t mean just anyone can do it. For example, you don’t need letters after your name or a lifetime’s worth of prior experience to get started (although those things could help!). But there are other essential qualities such as having some sound business nous, great people skills, and a can-do attitude that will get you out on the road on the odd cold or wet morning. And if you don’t like cooking, then are you really cut out for the catering business anyway?

Do I have a business plan for the future?

The world of roadside catering is no longer simply about turning up with your trailer and hoping for the best. It’s a highly competitive market out there, and you need to be ambitious in order to survive. From converted VW campervans to vintage trucks, there’s a whole raft of caterers who have brought a level of chic to the industry that’s never been seen before. And customers who have come to expect the ability to get high quality food easily, quickly and affordably will go elsewhere if you don’t measure up.

If you’re thinking of running your own roadside catering business, then it’s a good idea to give some serious consideration to your future plans. Are you looking to stick to one brilliant van that people journey for miles to visit or are you looking to build up a serious brand with a fleet of vehicles?

Am I good with budgeting?

The NCASS claims that a typical gross profit margin in the mobile catering industry can be between 65% and 85%, but some businesses might do better – up to 95%. However, to be in with a chance of achieving those kinds of margins, you’ll need to keep a strict eye on your outgoings. For example, consider:

• Renting a food truck rather than buying one.
• Looking for affordable second-hand equipment that meets legal and safety requirements.
• Choosing your dishes wisely. Perhaps have a smaller selection of dishes requiring less equipment to cook. Or only use seasonal or long-life ingredients. Cooking in bulk will always help your margins!
• Building good relationships with local food suppliers to keep costs down. Make sure to shop around and consider getting together with other businesses to save on bulk purchases.

However, if you’re canny with these then you should look forward to making some decent profit in this industry.

Do I enjoy meeting new people?

Being your own boss and getting out on the road is never going to be boring. But are you up for the challenge? You’ll never know who you’ll find queuing up in front of your truck, but you’ll be sure to meet lots of different people from all different walks of life. From a truck stop on a Friday to a supermarket car park on a Saturday, if you’re a people person then the hours will fly by.

Where can I pitch my roadside catering business?

So, if you think you have what it takes to be successful in roadside catering, what next? Unfortunately, finding a place to pitch your roadside catering business is not as straightforward as you might think. The laws relating to roadside catering can vary hugely from one area to another, so are well worth researching.

Some councils require a Street Trading Licence (which can be expensive), whereas others no longer require them. On the other hand, some councils won’t allow roadside catering at all – often due to concerns over traffic obstruction or congestion. In any case it’s vital you work with your local council to agree on a pitch and the parameters you want to trade within.

That said, the police are the only people with the power to move you on. But even if they do ask you to move, they’ll often be helpful and may even suggest an alternative more suitable spot from which to trade.

Even if a council doesn’t require specific consent or charge roadside caterers, there are often strict conditions you’ll need to follow if you want to stay out of hot water. These could include:

• Never pitch in a lay-by on a dual carriageway.
• Only one roadside catering unit is allowed on any site at a time.
• Your catering unit must be self-propelled or towable.
• It mustn’t cause road safety concerns.
• It can’t cause any damage to the highway or interfere with the free and safe flow of traffic.
• All waste and liquids must be kept off the highway at all times.
• Litter must be removed from the site at the end of each business opening period.
• The unit must be located behind the kerb line.
• You must leave at least 1.5m between the unit and the highway to ensure pedestrian safety.
• The 'pitch' does not become the property of a trader and no rights are acquired through length of use.
• No nuisance shall be caused to neighbouring landowners or any other persons.

How to find a pitch

In general, there are three main ways you can go about finding a suitable pitch for your roadside catering business.

1. Start from scratch

Find a likely unused spot on the roadside or at a retail, trading or industrial estate and speak to the land owner about getting an agreement in place. Speak with your local council and clear it with them. See what certificates you need to have in place and whether you need to pay for a Street Trading Licence.

2. Buy an existing business or pitch

Just like with any business, sometimes circumstances change and an owner wants to move on. A roadside catering business that has been operating from a pitch for a while and has built up a decent customer base is obviously going to be worth some money. However, remember that an existing agreement with a landowner or licence from the council may not be transferable to you. Always make absolutely sure about the situation before you hand over any money.

3. Pitch on private land

Car parks outside retail or business addresses as well as other areas of private land are a common solution for roadside catering businesses looking for a suitable pitch. However, you’ll still need to contact your local council to find out about licensing. After all, just because the business is on private land rather than the public highway, doesn’t mean you don’t need a licence. You might also need to seek planning permission if you’re looking to change the use of the land. Having the right paperwork in place is an important part of starting a roadside catering business.

Depending on the location, you may also need to contact a local site agent. These agents operate many major retail car parks across the UK such as those used by B&Q or Homebase customers.

What else do I need to do before I start a roadside catering business?

Anyone serving food as part of their business is required to register as a food business with the relevant local authority environmental health department. Officers will then inspect your van or trailer and make sure you’re complying with the relevant food safety and hygiene legislation.

As well as a street trader’s licence, if you plan on serving hot food or drink between the hours of 11pm and 5am you often need to obtain a late-night refreshment licence from the local council. Not forgetting the need to arrange catering insurance to protect your young business.

If you or your staff need to handle food in the course of business then you must attend an appropriate food hygiene training course. NCASS as well as a number of other organisations and local colleges have such courses on offer. Remember, environmental health inspectors can visit your business at any time to check you’re following food hygiene regulations. They’ll also assess the overall standard of your roadside catering unit.

Protect your roadside catering business with catering insurance from Mobilers

Successfully starting a roadside catering business is impossible if you haven’t the right level of insurance for your roadside catering van or truck. How else are you going to safeguard your business and your customers against a range of risks?

The team of insurance specialists at Mobilers can quickly provide catering insurance for your van or truck. Or even set you up with specialist cover for an ice cream van, burger van, mobile bar, coffee van or other type of catering unit.

Get a quote for catering insurance today!