Pop-up restaurant insurance: 10 things you need to know before you open your doors
The concept of the ‘Pop-up’ business was originally born out of the last recession. Rather than standing permanently empty, high-street shop owners leased out their premises to ‘pop up’ businesses on a super-short-term lease of just a few weeks or even a single day. The result has been a rash of businesses that don’t have expensive overheads, but do have to work harder than established businesses to get their name known to the public.
So are pop-up businesses and in particular pop-up restaurants a good way to make money? And what do you need to remember before you fire up the BBQ and set yourself up as a ‘gourmet burger stand’? Here are 10 things you need to know before you pop-up your own temporary restaurant:
1. Getting the right pitch
It’s all about location, location, location. Even in the relatively secure environment of a market, for example, the right pitch is absolutely essential to guarantee you grab the passing trade before your rivals do. And make no mistake, there will be other pop-up vendors competing for those hungry passer’s by. Sometimes you may not have a choice, especially if this is your first time at a market venue. There is a ‘pecking order’ for pitches, and competition is fierce. Talk to the market manager beforehand and don’t simply assume you’ll be able to roll up and grab the best pitch; it may be already reserved for a regular.
2. Indoors or outdoors?
There are pros and cons to both indoor and outdoor pop-up restaurants. With an indoor restaurant or food business there’s a greater chance that you’ll be able to offer a ‘sit-down’ service (as long as you’re not blocking any paths or breaching Health & Safety or Fire regulations), without the worry that the weather could impact on your business. However, combine an outdoor restaurant with a sunny day and you have a winner! Transient, pop-up restaurants don’t have time to establish that all-important seat-filler too – a good reputation. So consider if taking a short-term lease (especially on a high street that probably already has a dozen other food outlets) is a good business move.
3. Food hygiene
Complying with all food hygiene regulations is a must, and you’ll also find that customers are even more stringent about food hygiene standards with outdoor vendors in particular. You might only be there for a day or two, but you must ensure that your business conforms to all current food hygiene requirements. You will need to register your business with the Environmental Health Service at your local council 28 days before you begin trading. Food businesses in the UK and Northern Ireland are required to put in place food safety management procedures based on the principles of HACCP (hazard analysis critical control point). So this means you need to have documented procedures in place to ensure food is handled in a safe way within your business. This applies to pop-up restaurants just as much as static businesses, so if in doubt contact your local EHS department for more details.
4. Local licence requirements
You will also need to contact your local council to check on the licensing laws for your area, as they may differ from council to council. If you are travelling to a different location (for example to set up at a festival or event), then don’t automatically assume that the licensing laws in your hometown will cover you at your new venue. You will also need to check on the regulations for late-night licences, the sale of alcohol, live music or entertainment licence, and whether you will need a licence to set up from the landowner.
5. Public liability Insurance
Just like any other business, you cannot open a pop-up restaurant without the appropriate insurance. However, standard insurance deals may not be applicable for a pop-up business, so talk to a professional broker who has experience of dealing with this unique type of operation to get the right cover. You’ll need to consider both public and personal liability, employer’s insurance if you hire staff (even if it’s just for one day), theft or fire insurance and even specialist vehicle insurance.
6. Keeping the menu simple
In a normal restaurant you have the space and the time to offer up a complex menu to your patrons. With a pop-up business the trick is to keep things simple. Offer something unique (and that won’t be in direct competition with your rivals if you’re at an event where several operations are offering food), make sure the quality is premium but the price is affordable. Remember that your customers are most likely to be ‘impulse’ buyers, so appeal to them with free tasters, samples or special deals.
7. Advertising and promotion
Once you know where and when you’ll be operating, it’s time to advertise. Much of your business will be passing ‘footfall’ custom, but if you’re offering something special then pre-event advertising can encourage people to come to an event purely to see you! Use social media platforms such as Twitter and Facebook to connect with potential customers, and if you have time then get leaflets or flyers printed up to hand out.
8. Logistics
Having a fixed base is great, but if you’re running a pop-up business then you will need to ensure that your logistics are spot on. Catering businesses are notoriously asset-heavy, which means you’re going to have to organise things such as cooking equipment, food storage (that will also need to comply with Food Safety and Hygiene regulations), tables, chairs (if you’re offering a sit-down service) and even handwashing facilities for staff. A pop-up restaurant isn’t simply a matter of throwing a BBQ in a van, grabbing some paper plates and a catering packet of burgers and setting up shop!
9. Don’t cook your books
Like every other business, the money you make in a pop-up restaurant is subject to tax. So make sure you keep accurate books that list your outgoings and your takings from every venture, no matter how small. Every penny counts, so ensure you talk to a good accountant who is familiar with not only the challenges of the catering industry, but also how pop-up businesses work too.
10. Putting in the hours
The catering business is hard work. Very hard work! So be prepared for early mornings and late nights. And be prepared to put a lot of effort into getting as many pitches as possible to make your business viable. The restaurant trade has notoriously tight margins as it is, and while you may not have the expensive overheads of a static restaurant, you will have other costs that can quickly mount up and eat into your profits.
If you need any advice regarding insurance for your pop-up restaurant then please don’t hesitate to contact us.