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Street vendors – hot dog carts in particular – seem to have been around for ages. Recently, the mobile food movement has gained popularity and now street vendors are taking their business nationwide. Whether you plan to operate an ice cream truck, shaved ice stand, or gourmet food truck, this guide will walk you through the must-know details of starting your mobile food business. Depending on your financial investment and culinary expertise, your mobile food business can operate as a small pretzel cart or a gourmet kitchen on wheels. Typical mobile food businesses can be classified in three categories: Catering Units A full-service mobile kitchen is often referred to as a catering unit. Food cooking and preparation takes place inside the vehicle. Typical catering unit menus include made-to-order items and grilled foods. Because the food is made on-site, a catering unit will have to acquire the appropriate inspections and permits from the local health and safety boards. A new, customized catering truck can cost up to a hundred thousand dollars, though used options are often much less. Lunch Trucks A lunch truck typically features pre-made and re-heated meals, or resells foods that have been pre-packaged from a wholesaler. Typical menu items include various sandwiches and sides. Lunch trucks, particularly ones that sell pre-packaged food may not need to acquire as many permits. Lunch trucks are typically a mid-range option in terms of purchasing costs. Vending Carts In comparison to catering units and lunch trucks, vending carts are much smaller in size (usually hand-pushed or towed), generally do not require experience or skill in food preparation, and offer limited menu options. The carts essentially serve as a warmer or freezer, offering a simple treat like ice cream, hotdogs, and pretzels. Vending carts are the least expensive mobile food option, and often cost a few thousand dollars. Permits and Licenses Getting the proper paperwork is challenging for many businesses, but mobile businesses often have several jurisdictions to pay attention to. Failing to obtain the proper permits could result in fines or even closure. Taxes You will likely need to obtain a sales tax permit and a tax certificate from your state government’s revenue agency. Compared to brick-and-mortar restaurants, mobile food businesses have extremely low overhead and tax responsibilities. However, that may soon be changing in many jurisdictions. Communities across the country are looking at increased fees and taxes for mobile food businesses, to help counter the rent or property taxes that restaurants typically pay. Zoning Restrictions While mobile food businesses are very popular right now, keep in mind that popularity does not ensure success. Mobile food businesses have the luxury of moving to where their customers are, but it’s not always as simple as plugging an address in a GPS. Many cities place restrictions on the number of food trucks that can operate at any given place or time, and some areas ban them all together. Health and Safety Before you start your mobile food business, be sure to read up on the food and safety laws in your area. Some cities require any business that prepares food to do so in a licensed kitchen; others require that restrooms or seating areas must be available to customers. This can be especially challenging for an aspiring mobile food entrepreneur, but it is easier to navigate before undertaking significant investments. For specific information on laws and regulations in your area, contact your state’s Department of Health. DC Street Vendor. “Tips for Starting Your Own Street Food Business.” March 2011 http://www.dcstreetvendor.com/index.php/tips-for-starting-your-own-street-food-business/
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