Pros And Cons Of Street Food And How To Get The Best Mobile Catering Insurance
From ice-cream van and burger trailer to street kitchen or smoothie stall, running your own mobile catering business can free you from the constraints of a 9-5 office job, get you out and about meeting new people and give you the chance to be your own boss with relatively low start-up costs. On the flip side, there are risks that, if not managed properly, could see your mobile business grinding to a halt.
So is mobile catering the career for you? Read our quick guide to the pros and cons of starting a mobile catering business before you get behind the wheel.
Pros
- Flexible to fit in with your lifestyle. You can choose when you want to work
- Not tied to one location – you can go where the money is, heading to one-off festivals, specialising in wedding catering or booking a regular pitch in a market
- Street food is an ever-growing scene that’s become a firm favourite with the public
- High profit margins can be achieved on relatively low-cost stock
- Lower overheads than fixed premises
- Comparatively low start-up costs
- Vans are always in demand – so you can resell it for a good price if you decide to quit the business
Cons
- Can be weather dependant, with poor weather resulting in poor sales
- Pitches at some events can cost a lot, so pricing has to be carefully planned
- The good profits that can be made mean you could face stiff competition for customers from other mobile caterers
- You and any members of staff need relevant, up to date health and safety training
- There is lots of administration to be done to stay on the right side of the law. From electrical and gas testing certificates and applying for licences to registering with your local authority and regularly completing a full risk assessment, these tasks must be completed or you risk fines
- Smaller preparation areas and food storage challenges could increase risk of food poisoning, which can result in large claims against you
- Your business is only as good as your van and equipment – if they fail, you’ll be stranded unable to trade
Limiting risk
Peace of mind that you have the right level of insurance cover leaves you free to concentrate on running your business successfully. Insurance requirements vary from business to business, and may include:
Commercial vehicle insurance – a van will need specialist insurance designed for mobile catering vans or if you use a trailer you’ll need appropriate towing cover for your car as well as the trailer itself. It’s an essential to make sure you’re legal for driving on the road and it will also need to cover the specialist equipment inside the van, such as fridges, ovens, and tills.
Stock cover – spend a few minutes totting up how much stock you carry in your van and you might be in for a shock. If you lose your stock in an accident, due to equipment failure or theft, stock cover insurance will pay for its replacement.
Public liability insurance – this will cover you for any damage or illness caused by your business to a member of the public, including food poisoning, a road traffic accident or an allergic reaction to mislabelled food. Fines can run into the £millions depending on the size of your business, so comprehensive cover is wise.
Employer’s liability – this insurance is a legal requirement if you employ any staff, even if they are part-time or contracted. It protects you if they suffer any injury or damage connected to your business.
Legal cover – even a single letter from your solicitor can cost you £hundreds, which can be a lot, especially for smaller businesses, to deal with. Legal cover gives you reassurance that you won’t have to find extra cash or borrow money to pay for legal help.
No two businesses are exactly the same and you’ll also find that insurance costs can vary widely too. Work out what you need and shop around to find the best value deal or talk to our helpful team at Park Insurance.
We are a preferred broker for some of the UK’s top specialist catering insurance providers and have in-depth knowledge of the industry.
We understand the unique needs of your business and that great value for money and excellent customer service is essential. We can tailor-make a cost-effective insurance package so you have the level of cover you need without paying too much.