Module 2. Experienced Street Food Success? What next?

Streetfood Opportunities for Regions is an Eramus+ funded programme

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The ups and downs of businessWithin the mobile catering industry, we frequently receive feedback from vendors whose principal endeavour becomes to exercise greater autonomy over their business.

This is indubitably challenging when operating within the events industry, whereby you are frequently at the mercy of event organisers whom are increasingly seeking a certain amount of traders per cuisine.

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How to overcome obstacles• Develop collegial relationships not only

with fellow caterer/event organisers. (Help to secure your business regular pitches at events or festivals)• Become an event organiser yourself,

moving to a fixed site, or perhaps you’d like to set up your very own bricks and mortar business. • There are innumerable ways in which you

can grow your business, buy you must decide on a tangible idea and run with it single-mindedly.

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The Big Bang; Rapid Growth • Fuelled by outside investment.• Often seen in companies who are in a

rush to grow their business/ in a new field where a business has no competitors.

• The land grab (to get big, super fast) can be to the detriment of a company’s culture which is one of the raisons d'être of any company.

• Think of Ben and Jerry’s today! They had values which drove their business, they remained committed to their original vision.

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Growth; how to get it right• Any misalignment in the rate of growth at a small

company can create huge problems. • Meanwhile, a business growing at a natural

pace has a reasonable chance of keeping these things in balance.

• Raising too much money is often the key deciding factor in whether a company grows at a natural pace or becomes misaligned.

• Typically, companies that bring on outside investors will use the capital in one of three places:

• Marketing• Hiring new employees• Capital costs like premises and equipment

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Rapid growth; the Big Bang Although growth is regarded as being positive, if you manage to raise at a lot of capital, you are putting both yourself and your business in a vulnerable position. For example:1) If revenue grows faster than the rate you can hire staff,

leading to poor customer service and overworked staff (low morale), resulting in poor reviews.

2) Or if employees are hired too quickly, with poor training before the product/service improves.

3) When marketing grows faster than the quality of your product, this can lead to a product/service being inadequate resulting in negative consumer experience

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Marketing; Timing is everythingSome businesses try to create an ‘anticipation factor’ before the business is actually ready to be taken to market! Apple have perfected this technique, but Segway invested in too much marketing beforehand, meaning the product was old news by the time it was released.

When your business is young, don’t advertise heavily that your resources are stretched thinly; allow your reputation to be spread by word of mouth and invest in marketing when your product is in a mature position to blow people away.

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Creating your own events and markets

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Organising you own event • There are different types of street food

events which suit different audiences and caterers.

However they generally fall into two categories: • Street food events - footfall areas, near

the local pub, or a trip to the cinema etc. • Street food markets - local residents,

shoppers and tourists. • Click this link to see a Street Food festival in

full swing https://www.youtube.com/watch?v=rzC1KvsExmg

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Finding a venue • The main thing holding back the growth of

street food in the UK are the restrictions as to where can vendors can legally trade.

• Council run markets can take years to get onto as traders must add their name to a list and wait their turn.

• Street trading itself is severely restricted by local councils and street trading licences can be difficult and expensive to come by; furthermore, they require the trader to be permanently sited.

• Many street food organisers and collectives have successfully set up and run events on private land and this is often easier to secure.

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Licensing • You may need a licence for your even what you are doing and where. Some councils offer temporary market licences although the names for these tend to vary as do the costs, depending on the size or location of the market. • Types of licence could include trading licences and alcohol licences, but you should check this with a relevant authority.

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Documentation• Traders must be able to

provide various documents that prove that they are trading safely, that they have considered and mitigated the risks, that their equipment is safe and that they are trained in food safety.

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Getting customers• No silver bullet• Helpful to discuss fees with your traders

early on so as the event and the catering businesses grow and become popular, the demand to work at the event also increases and the traders can afford higher pitch fees.• Live events can be high risk especially if

you are introducing a new food concept. • Safety

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Moving to fixed sites, what’s different?

• An increasing number of consumers want to dine/take prepared home food. • Though the future looks bright for the food

industry overall, there are no guarantees; this isn’t a “get rich quick” industry, more like a “word hard and make a living” industry.• A hard reality is that many restaurants fail

during their first year due to a lack of planning – it can be a very complex operation.

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The Golden rules and important factors to consider

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Target marketsNo single food-service operation has universal appeal1) Focus on the 5 or 10

percent of the market that you can get, and forget about the rest.

2) Differentiate your business from other competitors. Make your business stand out through marketing its unique selling point.

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Generation Y

• Tagged the ‘Millenial generation’ includes those born between 1980 and 2000.

• Generation Y is the most ethnically diverse generation, and is three times the size of generation X.

• A prime target for a food-service business. • Members of Generation Y go for fast-food

and quick-service items. (25% of their restaurant visits are to burger franchises, followed closely by pizza restaurants at 12%)

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Generation X

• Generation X (born between1965 and 1980) are known for strong family values. • They are concerned with value, and

they favour quick-service restaurants and midscale operations that offer all-you-can-eat salad bars and buffets.• To appeal to this market group, offer a

comfortable atmosphere that focuses on value and ambience.

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Baby boomers • Born between 1946 and 1964. • Prominent in this generation are

affluent professionals who can afford to visit upscale restaurants and spend money freely.• Those on the leading edge of the

boomer generation are becoming grandparents, making them a target of restaurants that offer a family-friendly atmosphere and those that provide an upscale, formal dining experience.

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Empty Nesters• Empty nesters (people in their early 50s to

about age 64). Empty nesters typically have grown children who no longer live at home.• With the most discretionary income and the

highest per-capita income, they are less concerned with price and are more focused on excellent service and outstanding food.• Appeal to this group with elegant

surroundings and a sophisticated ambience

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Seniors• Seniors (65 and older). Generally, the

majority of seniors are on tend to visit family-style restaurants that offer good service and reasonable prices.• Seniors typically appreciate restaurants

that offer early-bird specials and senior menus with lower prices and smaller portions, since their appetites are less hearty than those of younger people.

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Restaurant service styles Restaurants are classified into three primary categories: quick-service, midscale and upscale.

• Quick-service restaurants are also known as fast-food restaurants. They offer limited menus of items that are prepared quickly/ sold for a relatively low price.

• Have casual dining areas/drive-thru windows and take-out service.

• Establishments in this category include burgers, chicken, hot dogs, sandwiches, pizza, seafood and ethnic foods.

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Midscale • Midscale restaurants, as the name implies,

occupy the middle ground between quick-service and upscale restaurants. • They offer full meals but charge prices that

customers perceive as providing good value. Midscale restaurants offer a range of limited- and full-service options. In a full-service restaurant, patrons place and receive their orders at their tables; in a limited-service operation, patrons order their food at a counter and then receive their meals at their tables. Many limited-service restaurants offer salad bars and buffets.

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Upscale

• Fine Dining / upscale restaurants offer full table service and do not necessarily promote their meals as offering great value; instead, they focus on the quality of their cuisine and the ambience of their facilities.• Fine-dining establishments are at

the highest end of the upscale restaurant category and charge the highest prices.

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Selecting a food concept • Family style restaurants• Casual dining restaurants • Ethnic restaurants• Pizzeria• Sandwich shop/ Delicatessen• Coffeehouse• Bakery

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How to Start a RestaurantCarving your niche: 1. Before you can begin any serious business planning, you must first decide what specific segment of the food-service industry you want to enter.

2. While there is much overlap in the knowledge and skills necessary to be successful, your own personality and preferences will dictate whether you choose to open a commercial bakery, a coffee cart, a fine-dining restaurant or another type of operation. 3. Then, once you have decided

what business best suits you, you must figure out the niche you'll occupy in the marketplace.

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Working in a restaurant

Dealing with customers – Being a good

host

Developing menus

Ordering inventory and

supplies

Managing personnel

Creating and implementing

marketing campaigns

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Having passion for your profession

"As soon as I started working in a restaurant, I realised this was my passion," says Scott Redler, "when you have a busy restaurant, and you're watching everything happen as it should, it's just a wonderful feeling of satisfaction." Redler has worked in various restaurants for 11 years, he opened a Chinese fast-food place at the age of 26 which failed within eight months, then Redler went to work for a large restaurant company, where he eventually advanced to the position of senior vice president, overseeing 15 operations. Developed Timberline Steakhouse & Grill in Kansas, USA (which he sold in 2011). He recognised that the fast, casual segment was gaining momentum, so he created Freddy’s Frozen Custard, which offers hot dogs, hamburgers, and (as you might expect) frozen custard. Freddy’s Frozen Custard is now a franchise operation with 60 stores in nine states across the US.

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Example: SteakStak Click the link to watch a

short video on how having passion for your profession

really can pay off! https://www.youtube.com/watch?v=yV4QqeKwvhI

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Choosing a location: Factors to consider

• Anticipated sales volume• Accessibility to potential

customers• Rent/leases• Restrictions• Traffic density• Customer parking facilities• Proximity to other

businesses• History of the site

• Terms of the lease• Future development• Layout• Ding area• Production area• Creating a menu • Regulations • Employing people

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Tips to help you find and keep great people

• Hire right: Take the time to thoroughly screen applicants. Be sure to check they understand what you expect of them, do background checks.

• Create detailed job descriptions outlining important roles and responsibilities.

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• Manager• Chefs and cooks• Waiters and waitresses• Marketing and promotion

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Moving into new sectors, corporate and weddings

• We’ve all been to wedding receptions, business meetings or hospitality events, and the one thing they have in common, apart from the buzz of small talk, is the array of food that always accompanies them.• As an independent there are two main

sectors you can target• Private events• Corporate events

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Private events• Family occasions such as parties and funerals

where in most cases the budget is the main consideration. • Weddings caterers are often booked up years

in advance as are the venues, so you should ask for a substantial deposit at the time of booking the balance to be paid in advance of the job. (Signed contract with clear terms and conditions including a loss of deposit clause within a timeframe).

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Corporate events• Provide food for business breakfasts,

business lunches, board meetings and evening receptions.

• Caterers first build up a relationship with the customer by becoming a favourite for the daily lunch run, before being trusted with much bigger client-focused events.

• Offering a free taster lunch for the managers or the board can be especially useful if you are getting blocked by someone in the organisation from being given an opportunity to quote or supply, it takes a lot to refuse a free lunch.

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Do your market research Is there a market for what you propose to offer? • Fieldwork is key so if possible, get talking to caterers

who are already out there - compare their menus and pay particular attention to their pricing.

Then ask yourself: can you compete? For instance, if you are aiming at the wedding market look out for wedding fairs in your area, ask questions and get a feel for what potential competitors are offering.

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Can you do it from home?• Yes you can, but the same basic laws concerning food safety apply to

domestic and commercial premises. Get your environmental health officer involved at the planning stage as the last thing you need is to get everything up and running.

• Also, be sure to consider the wider implications of combining a workspace with a family kitchen and whether work and family life will be able to co-exist in the same space.

• The one thing you need above all else is the ability to refrigerate, meaning that if you only have a small domestic fridge, you will need to rethink your options as you not

• Another issue here is transport - you’re going to need a van and preferably a refrigerated one and whilst these can be hired on a daily basis, they are not cheap.

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Consider costs from the outset• Your market research should tell you:1) Who your likely customers will be2) What they want to eat 3) How much they are willing to pay for it. 4) Next, you have to calculate whether you’ll be

able to deliver this and still generate a profit.

• Fortunately, catering businesses tend to be scalable. This means that you can start small with minimal outlay and invest later to increase your capacity once your customer base grows. 

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Marketing• Most catering businesses

don’t have the luxury of a shopfront location which allows them to advertise.• Most caterers work from home

or from a shared kitchen, and they spend most of their time split between the kitchen and the event venue.

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8 steps to success• Marketing your

catering business becomes problematic if you do not have a private location. How do you brand your business if you are rarely in the same place at the same time? There are a few ways to do so:

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• Step 1: Design a Catering Logo• Step 2: Build a Website (Ensure you include photos of your work).• Step 3: Tell Everyone You Know • If you are starting your own catering company, chances are you

have already provided food or planning for some kind of event, or at least you have friends and family members who know what an awesome caterer you are.

• Make a list of everyone you know with their phone numbers and emails included. Contact everyone and tell them about your new business. Send them a link to your website. Tell them that if they know someone who is getting married or someone who works at an office, you want to cater their wedding or next corporate event at a discount. Ask them for a reference.

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• Step 4: Join a networking club• Most towns and cities have a networking club or

business breakfast club and the first time you go is usually free so go along with a pocket full of business cards! Whether you need to go again is down to what and who you meet, just concentrate on giving out a business card that tells people what you do .

• Step 5: Pimp Your Vehicle• No matter what kind of catering operation you are

running, you will need a vehicle to transport your food. Why not turn that estate car, van or trailer into an advertisement on wheels? Contact a printing company to get your logo and name on your vehicle, as well as your business phone number and website’s URL.

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• Step 6: • You now have a catering vehicle, a stand-out logo

and plenty of flyers or menus. Remember to never go out without business cards (and preferably flyers) and don’t be shy! Give them to anyone and everyone that you can, drop your cards in at any business you can find, walk the local industrial estates and office parks and try not to miss any opportunity to publicise what you are doing!

• Step 7: Advertise• Advertising is not the most reliable marketing

strategy, and it is generally the most expensive so you might want to explore all the other opportunities before this one. Try to steer away from ads in the newspaper or on the radio – these mediums tend to be expensive and their target market is too broad.

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• Step 8: Look for Partnerships• Talk to local hotels, wedding venues, event centres,

country clubs, convention centres, meeting rooms, and business centres. See if you can become the preferred or even exclusive caterer for the people who hold events at these venues. Show the venue manager how it can be a mutually beneficial relationship. It is quite common, especially for wedding venues to ask for a portion of your profits from any clients that they refer to you.

• If none of these steps are working for you it should tell you that something is wrong, you should be then starting to re look at your concept or your menu, and maybe even consult your trade association or a business consultant

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Moving into new sectors, events and festivals

• Shows can be very profitable, but the old adage of the grass always being greener on the other side of the hill is often the case.• Large shows / festivals and concerts are

normally well advertised and attended, but that doesn’t mean that they are going to make you more money, the facts are that if they are good they are going to be expensive and as a newcomer you are not going to get the best pitch on your first try.

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Selling time at shows• The ‘window of opportunity’ (selling time) at most shows can be surprisingly

short. You have to maximise the amount of product over the counter during that window so to be prepared you need to have two things:

• 1) Experienced staff – The last thing you need is an inexperienced team on a busy event, it might look very simple take the order cook, serve and take the money but not cracking under pressure when you have a queue 50 or 100m long takes a lot of nerve and experience. Each person has their job and they have to be able to keep up.

• 2) A System – there needs to be a flow on actions in the business that is previously thought out and practised. This is where event catering is very different to street food vending. A good starting point is 100 portions an hour and if you can’t achieve that level you will never make money on medium to large events. Really experienced operators often achieve 200 portions an hour or higher.

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• If possible try to get the organiser to work on a percentage of takings rather than a fixed rent. • Now that we may have put you off

shooting for the bigger shows at least in the early stages of your business, let’s consider the benefits of small local shows such as convenient, nearby locations and cheaper site rents!

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Winter working• If you plan your work calendar carefully and well in advance,

you should not need to shut down during winter unless you really want to.

• So you always need to keep your eyes open for winter trading opportunities like Christmas markets, craft fairs, car auctions and farmers markets which carry on throughout the year -you might even find a good permanent site and give up the shows or even buy a second unit.

• Of course takings will be less in the winter but you can quite adequately supplement your income from markets, car boot sales, football matches etc. However, we can’t stress enough the need to plan well in advance – especially given there are very few shows after October, except bonfires, and competition amongst caterers for winter revenue is tough.

• Organise your winter weekend sites at markets in the late summer, and make sure that you are on a good site for the period leading up to Christmas.

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Local shows/festivals Now that we may have put you off shooting for the bigger shows at least in the early stages of your business, let’s consider the benefits of small local shows such as convenient, nearby locations and cheaper site rents!Additional benefits also include:• You can win a lot of loyalty and get asked back year

after year if you do a good job• You are not risking so much money• You might not need as many staff• You won’t waste as much food if it goes bad• Of course there are also many variables such as

weather which can impact even the most successful, longstanding events.

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• It is often (but not always the case) that the catering rights to a show or even the whole show ground have been contracted to a concessionaire in which case there is a third party involved in the negotiations which mean that the pitch fees are going to be higher and the profits lower.

• Other things that can affect your profitability on larger shows is when the organiser or concessionaire insists on a share of your profits that have to be proven by making all sales through a nominated till.

• The use of cashless systems at festivals (also becoming common) where the customers either preload a wristband with an amount of cash which is then used to buy food and drink. The customer’s money is then held buy the service provider who pays the festival organiser who then pays the caterer up to 48 hrs later.

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The last words…• This is a very profitable but risky business, get it right and you’ll wonder

why you didn’t think of it earlier. Get it wrong and it can become a noose around your neck.

• The good news is that there is always a good second-hand market for trailers and you are unlikely to lose a large amount of money unless you paid over the odds for it in the first place, so why not have a go? It’s hard work but you are your own boss and you can fit it around your lifestyle. The first 2 - 3 years will be a bit patchy on bookings unless you really get down to it, but after that you should be able to make a very acceptable living.

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Popups as a business concept• A pop up restaurant offers many of the same

benefits as a traditional bricks and mortar restaurant, without the high cost of opening. Many street food traders/chefs use pop ups as a way to expand their culinary careers, while others use pop ups as a way to level the dining field, offering gourmet food at affordable prices.

• As a full time long term business concept there are better options as venues are likely to be hard to find on an ongoing basis but there are several businesses that have been successful purely doing pop ups on a fairly regular basis and marketed on an underground secret garden party type of basis.

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Factors to consider: 1) Decide on a Purpose for Your Pop Up Restaurant e.g. to build

culinary reputation, total creativity in the kitchen, to entice investors as well as the public to try it out.

2) A pop up restaurant location can be anywhere, so long as it’s safe for cooking and serving food. When looking for locations consider the size, the logistics of setting up a mobile kitchen and temporary dining room. Will it have access to electricity and running water? If not, how are you going to work around these issues? You could also use an existing restaurant space.

3) Insurance, Permits and Licenses: You need to be legal to avoid any potential legal trouble if problems should arise, so we would never advise setting up a pop up without insurance. If you intend to serve alcohol there are three types of license that you need to consider a persona license, a premises license, or a Temporary events Notice (TEN).

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Personal licence • The Personal Licence allows an

individual to sell alcohol or authorise its sale by others. Requires a pass in the exam (Award for Personal Licence Holders (APLH).• If relevant convictions are disclosed

then the Licensing Authority must send a copy of the application to the local Police, who can object within 14 days.

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Temporary Event Notice (TEN) Temporary Event Notice (TEN)• Contact your council for a Temporary Event Notice (TEN) if you want to carry out

a ‘licensable activity’ on unlicensed premises in England or Wales.• Licensable activity includes:• selling alcohol• serving alcohol to members of a private club• providing entertainment, eg music, dancing or indoor sporting events• serving hot food or drink between 11pm and 5am• The process of applying is formally known as ‘serving’ a Temporary Event Notice.• You will also need a TEN if a particular licensable activity is not included in the

terms of your existing licence, eg holding a wedding reception at a community centre.

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Premises License • If you are looking to authorise the retail sale of alcohol for consumption on or off your

premises, provide regulated entertainment and late night refreshments then you will need a premises licence as this is classed as ‘licensable activities’. You will need a premises license or a TEN (details follow) if you intend to carry out any of the following activities:

• Retail sale of alcohol• Indoor sporting events• Film exhibition• Boxing or wrestling entertainment• Live music• Playing of recorded music• Performance of a play• Entertainment that is of a similar description to live music, the playing of recorded music and

dancing• The provision of late night refreshment to include hot food / drinks served between 11pm and

5am

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