How to Start a Food Truck Business

Launching a mobile food business – be it a mobile food truck, van, trailer or marquee – can be a hugely rewarding, yet highly challenging process that comes with its own unique set of considerations. And with such a vast amount of information to take in, it can understandably become a bit overwhelming. But don’t be dissuaded! This handy guide has been developed to provide you with all the information you’ll need to get your mobile food van business started - from branding and marketing to licences and permits.

Article: Got your eyes on something with a bit more bricks and mortar? Take a look at our complete guide to buying a restaurant.

Mobile Catering 101: An Introduction

Ok, so you’ve decided to join the rapidly growing and highly popular network of mobile food trucks operating in Australia. Now what? There are so many things to consider during these early stages, but the key point to take in is to do your research. Lots and lots of research. And then some more research. In this business, planning is everything.

A good place to start is with a list. And yes, it’s going to be long – but isn’t that all part of the fun of owning your own business? You’re in the driver’s seat, literally! We’re just here to help you get going.

“Food trucks are restaurants, cafes and the best in world street food... on wheels. The mobile food movement, in Melbourne particularly has been growing over the last few years with other states following suit. The mobile food industry is fun, convenient and ever changing. Mobile vendors bring the best in street food flavours to any area and can easily adapt to new food trends.”
– Sally McBryde, Australian Mobile Food Vendors Group.

Think you have what it takes to start a food truck? Head along to AMFVG to get more information:
Website: www.amfvg.com.au
Facebook: www.facebook.com/amfvg.

Starting Out

The first thing to understand about running a mobile food truck business is that it takes a lot of hard work, dedication, and initially some pretty long hours.

"Be prepared to live, breathe, sweat and bleed hard work. You will be exhausted but you must persevere. Enjoying what you do will give you the energy to keep going – especially during hard times."
– Ben Siderowitz, owner of Sydney-based Food Truck NYPDeli

On the plus side it has many advantages, such as setting your own business direction, managing your own time, and the attraction of lower overheads than a restaurant. So (as dull as it might sound) before you race off doing fun stuff like planning a menu and designing marketing materials, there are several ‘business-ey’ items you’ll want to consider first, such as:

• Your budget / available funding
• Your business experience
• How much time you can commit (part time, full time etc.)
• Who will help you / staffing
• What qualifications you need / have

Obviously, your budget is going to heavily influence how and what you set up, so once you have a good grip on it, and on how much time you’re able to dedicate to your new business, then you can start to think about the type of food you’re going to sell, and from what type of vehicle. In Australia there are four main types of mobile catering businesses, which include:

• Trucks
• Trailers
• Vans
• Marquees

Food trucks have become very popular over the last few years, but each type of unit has its own advantages, with mobility clearly being the key selling point. It’s entirely up to you to decide which will best suit your business needs. Our recommendation is to visit the local markets and events in your area, talk to vendors and figure out where you think you fit in before making a final decision. You may initially have had your heart set on a food truck, but after some research discover that a marquee would be a better option. Like we said before, it’s all in the research, so take your time and choose your investment wisely.

Next comes the decisions about the type of equipment you’ll need to purchase to fit out your mobile business, which will include deep fryers, ovens, grills, coffee machines and the like. Naturally, the equipment you purchase will depend on the food you plan to sell, as well as the size of the vehicle you have to work with.

You’ll also want to consider the size of the equipment in relation to your anticipated sales – for example, if you’re planning on selling toasted sandwiches, it would be sensible to invest in a large commercial sandwich press upfront, rather than a smaller domestic model. Likewise, if your main business is grilling burgers, you may not require an oven and could therefore spend a little extra on a good quality griddle.

It’s a good idea to remember that, whilst sales will start out small doesn’t mean they won’t ramp up quickly, and you’ll do yourself a massive favour by being prepared with the correct equipment from the start – having to upgrade further down the track will only end up eating into your profits.

Understanding your Legal Obligations

Yep, you knew it was coming – all the not-so-exciting stuff that you absolutely must know as a vendor in order to operate safely and legally in the Australian food business. We’re talking licences, regulations, training, and insurances. There are many variations from state to state, so it’s imperative that you spend a substantial amount of time understanding the laws which apply to your business in order to avoid issues. Operating where you shouldn’t, for example, could result in hefty penalties or even loss of licence, so it’s a good idea to know your stuff.

Licences

In order to operate legally, you will need to register your business and obtain a licence from your local council. The requirements for such licences are varied across Australia, so you’ll need to determine the process for your local area before taking any action. A good starting point is with the Australian Business Licence and Information Service, whose website provides extensive information on the requirements for all types of food businesses for each state and territory.

When applying for a licence or permit, you will typically be asked to provide information such as the type of food you will be serving, who will be consuming your food, whether the food is fresh or pre-packaged, and your food business classification. You will also be required to pay a fee, and to renew your licence annually once approved and issued.

It is your responsibility to determine your business classification prior to applying for a licence, which again will vary from state to state. Check out the below resources to get yourself on the right track:

• ACT: health.act.gov.au/health
• NSW: www.foodauthority.nsw.gov.au
• NT: www.health.nt.gov.au/food_safety
• QLD: www.health.qld.gov.au/foodsafety
• SA: www.health.sa.gov.au/food
• TAS: www.dhhs.tas.gov.au/food_safety
• VIC: www.health.vic.gov.au/foodsafety
• WA: www.public.health.wa.gov.au/food

Food Safety Regulations

That’s right, not just anyone can start selling any old food from any old truck. In fact, there are some pretty strict legal requirements you’ll need to be aware of. Basically, in order to produce and serve food to the public you need to have first completed some basic training, and be in compliance with the relevant food safety legislation. The regulation that governs the industry is known as the The Food Standards Code, which will need to be your bible from now on. Download yourself a (free!) copy, get out your highlighter, and start getting acquainted with the requirements that will affect you.

Qualifications & Training

When operating in the food industry, there are certain requirements you must meet with regards to training. This means all staff members (including yourself) operating within the business need to complete basic training in food handling and food safety prior to commencing work. There are several options for such training, including accredited training courses (available both online and through local training providers in your home state), instruction manuals, and in-house training. As the business owner it is your responsibility to ensure your staff are adequately trained, and the development of a training plan and induction program which includes food handling and safety information is considered good practice, though not a legal requirement. Be sure to check the requirements for your specific area of operation, as they may vary from state to state.

It’s also important to note that certain states (NSW, VIC, QLD, ACT) require you to have a nominated Food Safety Supervisor on site at all times. This person must be appropriately trained and registered before they can commence work in the position or train other staff members. The Australian Institute of Food Safety offers a number of relevant training courses, and is also a great source of information for how to conduct your mobile foodie endeavours safely.

Insurances

The insurances you require will depend largely on the type of vehicle you choose, the state/local area in which you are operating, and the type of food you are serving. It is recommended that you check the local laws and regulations, then seek advice from a professional insurance broker who has experience with the mobile food industry. As a general rule, most mobile food businesses would consider insurances for:

• Income protection
• Vehicle protection
• Public liability
• Workers compensation

Getting Down to Business

Right, now we’ve covered off your obligations, let’s move on to something more fun! Deciding on your concept and cuisine, naming your business, attracting customers and getting your name out there. So first things first, what’s for sale?

Deciding What and Where to Sell

Deciding what type of food you’re going to sell is more than likely going to be the easy part, in fact, it’s probably the idea that sparked your interest in mobile catering in the first place. However, just because you want to sell something, doesn’t necessarily mean people want to buy it. Again, it’s about researching your local area, making connections within the foodie community, and offering a style of cuisine that fills a gap in the market.

So before you make your decision, have a think about the following points:

• What are you good at cooking?
• What do you like to cook?
• What types of food are most popular in your area?
• What ingredients are easy to buy from suppliers? Are they in season year-round?
• What is the most cost effective food for you to sell?
• How much similar competition will you have?
• What type of food can you prepare on site and/or heat up easily?
• Is the food easy for customers to hold and eat whilst standing?
• When will you be open for business? Breakfast, lunch, dinner, or all?
• Will the menu be large or small? (A larger menu may require more space than is viable for a mobile catering business.)

It’s also important to remember that running a mobile food business is not the same as running a restaurant. Now that might seem obvious, but consider this example: you could be an amazing Vietnamese cook with years of kitchen experience, but if your traditional restaurant style doesn’t translate into street food you may need to tweak or add a modern twist to the menu that will spark customer interest. Alternatively, you might need to rethink your location in order to drum up adequate sales.

That being said, at the end of the day customers generally respond well to people who play to their strengths and operate with passion – so if you are passionate about a particular style of food, go with that – it’s probably your best bet for success.

Other factors to consider when it comes to mobile eateries is that they are exactly that – mobile. Your customers are more than likely on the go, stopping by for a quick bite. This means your food needs to be appropriately priced, fast, delicious, and most of all, easy to eat whilst standing or walking around. This is even more important if you are vending at an event where there are multiple food trucks to choose from – most people don’t like to wait, so speed (and quality!) is key. You also need to make sure the menu you develop is manageable for you and your team – a huge menu can lead to long waits and unhappy customers, and less sales overall. Make sure you’ve practiced and perfected your menu before you hit the road – it will save on stress for everyone involved.

It’s just as important to be clever when selecting your location, as picking the wrong spot can lead to poor sales and wasted produce. This is something you’ll no doubt get better at over time, but in the beginning it’s crucial that you’ve, once again, done your research. A great example of applying clever research comes from Melbourne-based food truck, Taco Truck, who initially obtained a permit to operate directly out the front of a popular bar which did not have a kitchen on-premise. In what was essentially a stroke of genius, this truck soared in popularity with boozy locals keen for a quick feed and went on to become one of Melbourne’s most well-known and loved food trucks. So you see, by doing your research, understanding the local market and being somewhat strategic, you could very well identify a secret money-making spot that no-one else has thought of.

Branding & Marketing

Choosing a brand name and aesthetic for your food truck, van, marquee or trailer (along with developing the menu) is where you get to really have fun. You might want to go for something that relates directly to your product, or you might want to throw your customers a curveball with something funny or quirky.

When it comes to brand name development, there are typically seven different categories that are used as a starting point. These are:

• Descriptive: describes the product or service (eg: Burger King)
• Evocative: evokes suggestion and metaphor without reference to the product (eg: Virgin)
• Invented: fabricated or completely made up (eg: Esky)
• Acronym: shortened version of the company name (eg: KFC)
• Founder: derived from the name of the company founders (eg: Ben & Jerry’s)
• Geographical: relates to the location of the company (eg: Goulburn Valley Fruit)
• Lexical: often clever, relying on word-play for memorability (eg: Dunkin’ Donuts)

Remember, whatever name you choose will form the core of your overall brand, from which you will develop your marketing materials (website, social media profiles etc.) and the overall aesthetic or theme of your food truck – including cups, plates, napkins and such – so it’s in your best interests to take the time to plan and even come up with a few options before making a final decision. Trial the name with your friends and family as well, to see how they respond, and also check out the local competition – you don’t want a name that is too similar to another mobile catering business in your area. Make your name unique, memorable, and most of all, enticing.

The same applies when developing a theme for your truck or marquee – you want something that will draw in a crowd, that can be seen from afar, and that is consistent with the brand you want to develop. You can be bright and fun, dark and moody – whatever you please! Just make sure you’re consistent in your approach as customers will definitely notice if your idea is confused. If you’re feeling a little lost, research brands that you admire and other mobile food businesses in the area, or even create a ‘mood board’ to help put your thoughts into perspective and you bring your idea to life.

When it comes to marketing your business, a basic website and social media is the best place to start. Social media is free to kick off and an excellent means of communicating your location to your customers, which should make it your new best friend. Twitter, Facebook and Instagram are all good options. And if you’re tech-savvy, why not have a go at building your own website? There are many low-cost and user-friendly platforms available, such as Wordpress, Wix and Squarespace which allow you set up a basic site with relative ease. Word of mouth will play a large part in your marketing plan as you become more established, and you may also consider registering with a group such as the Australian Mobile Food Vendors Group to help you get noticed.

There are many, many other methods of marketing that you will probably consider as your business gathers momentum, but initially, try not to blow the budget on fancy flyers or digital marketing campaigns. Instead, get yourself set up with a solid online and social presence, then reassess any additional marketing needs a little further down the track.

Infographic: Need some marketing inspiration? Check out our Infographic: Food Truck Marketing 101 here.

Finding Business

Being mobile certainly has its advantages when it comes to finding customers. If they’re not biting in one position, you can simply move on to a new location, provided you are approved to operate in that area. That said, you don’t want to spend your entire day in transit when you could be making sales. Before you set up shop, assess the area and decide whether your food will be popular with the locals, and also the best hours to be in a particular spot, for example, to catch a lunch rush. Also, some businesses don’t like food vans or trucks parked out front of their premises, so you’ll need to keep this in mind as well.

There are many locations that love a good food truck and are primed for the picking, such as sporting venues, office blocks, universities, parks and beaches. But again, make sure you have a permit to operate in your chosen location before setting up. You’ll also want to be across local events, festivals and markets – these are typically a haven for food trucks so be sure to get into the scene early on. Check the local paper, social media and online for inspiration and upcoming events, and sign yourself up for as many online directories as possible, such as Where the Truck.

As you gain experience and a reputation in the community, you may find you are invited to attend events in conjunction with other local mobile food caterers, but in these initial stages it’s all about (yep, you guessed it) doing your research and just putting yourself and your product out there.

Final Checks

Hopefully by now you have a fairly good understanding of the requirements for operating a mobile food or catering business in Australia, and are feeling confident about your decision to join the growing community of fellow mobile foodies. There’s been a lot of information to take in, so we’ve created the below checklists as a reference point to keep you on track.

Legal Obligations Checklist

• Research registration and licence requirements
• Determine your 'food business classification'
• Register your business, pay fees, and complete required local council paperwork
• Determine any other licences or permits you may need in order to operate
• Download and review the Food Standards Code
• Complete food safety and food handling training
• Hire or train a Food Safety Supervisor
• Seek advice regarding insurances

Down to Business Checklist

• Decide what type of food you will sell
• Choose your business name
• Determine the theme or aesthetic for your mobile business
• Create a website and social media accounts
• Research locations, events and markets in your area
• Sign up for relevant online directories

Equipment Checklist

Once you've checked off those lists, it'll be time to set up your truck with all the equipment you'll need to cook up a storm. Here are some suggestions to help you get started:

Kitchen Equipment

• Kitchen Sink
• Upright Freezer
• Chef Knives
• Commercial Fridge
• Chefs Aprons
• Cookware

Food Preparation Equipment

• Convection Oven
• Charcoal Grill
• Food Processor
• Rice Cooker
• Deep Fryer
• Sandwhich Press

Serving Supplies

• Disposable Plates and Bowls
• Takeaway Food Containers
• Disposable Cutlery
• Napkins

TIP: Not all catering appliances are suitable for mobile catering use. Before purchase, always double-check the machine's specifications and documents to ensure you are able to use it in a mobile food truck.

Infographic: Food Truck Marketing 101