I want to start my own food vending business. Where do I begin?
February 17, 2010 7:26 PM Subscribe
I want to open my own fast food joint. I have no experience. Where do I begin?
I am at a point in my life when i´m ready to make a move and take a risk doing something different. I have identified a definite need for a small food stand or store front that sells cheap quick food at late hours until 5 or 6am and I am pretty confident that its a good idea. I have never run my own business nor do I know anything about the food vending business. I really want to know as much as possible about it before I put a business plan together and go ask for loans. Where can I start? what can I read? What kinds of things do i need to be aware of in the planning stages and then once i am up and running? Asides from putting together a list of fixed costs (rent, equipment, staff etc) how can I estimate how much money I will need? Any other questions and info I should be asking for etc.... of course I would also love to hear from anyone who has experience doing this already. Thanks in advance.
I am at a point in my life when i´m ready to make a move and take a risk doing something different. I have identified a definite need for a small food stand or store front that sells cheap quick food at late hours until 5 or 6am and I am pretty confident that its a good idea. I have never run my own business nor do I know anything about the food vending business. I really want to know as much as possible about it before I put a business plan together and go ask for loans. Where can I start? what can I read? What kinds of things do i need to be aware of in the planning stages and then once i am up and running? Asides from putting together a list of fixed costs (rent, equipment, staff etc) how can I estimate how much money I will need? Any other questions and info I should be asking for etc.... of course I would also love to hear from anyone who has experience doing this already. Thanks in advance.
Response by poster: Yes food truck is one of the ideas on the table as well.
posted by postergeist at 7:35 PM on February 17, 2010
posted by postergeist at 7:35 PM on February 17, 2010
Work for one of them. Do a halfway decent job, show up on time, and they'll probably put you in some kind of managerial/supervisor role. Makes a good way to learn the ins and outs.
posted by jmd82 at 7:39 PM on February 17, 2010 [1 favorite]
posted by jmd82 at 7:39 PM on February 17, 2010 [1 favorite]
Work for one of them.
Unless you just aren't worried about losing the capital it will take to buy the truck/stand, this sounds like a good suggestion.
posted by shothotbot at 7:46 PM on February 17, 2010
Unless you just aren't worried about losing the capital it will take to buy the truck/stand, this sounds like a good suggestion.
posted by shothotbot at 7:46 PM on February 17, 2010
Ditto what jmd82 said. You should definitely try working in a restaurant similar to the kind you are thinking of. You will learn about food costs, labor costs, inventory, get contacts for food distributors, and most important you will find out if you even like that type of work before sinking your money into such a business.
p.s. I had this kind of business and it is a TON of work. Plus you have to worry about food spoilage, labor issues, etc. Now I am happily a freelancer with no overhead and no worries!
posted by MsKim at 7:46 PM on February 17, 2010
p.s. I had this kind of business and it is a TON of work. Plus you have to worry about food spoilage, labor issues, etc. Now I am happily a freelancer with no overhead and no worries!
posted by MsKim at 7:46 PM on February 17, 2010
Oh and you don't mention anything about startup capital. You mention loans- do you actually have any liquid assets? If you have $$$, you can franchise fast food joints. Depending, they'll put you through training and give you more data than you can spend you head around. Some need $50k assets, while places like McDonalds require you to have well in excess of hundred thousands dollars liquid assets. Franchises typically work where you make a percent of the profit and the rest goes back to the franchiser. That is the easiest way to get into the business. Having an established name can be very important and make life easier. Much easier. Trying to start a new establishment- particularity fast food- when there are 17 McDonalds within 5 miles is a bitch. One thought is to Google "franchise + [establishment name]". You should get hits on franchising opportunities. Even if you do not want to franchise, it would be a good way to learn some of the requirements. Fill out some of the applications and make some calls so you can start learning.
There might be a small business association in town. One of my college professors was in charge of the local chapter, and their mission was to help out entrepreneurs in your position figure out how and where to start their own business, particularly writing up business proposals/plans and how to get startup capital. Google, yellow pages, or people in the know would be your resource to find that kinda pertinent information.
MsKim makes a good point though and is why I suggest working there first. Fast food is hard work. Being the boss doubly so. Excuse me while I stereotype, but fast food workers tend not to be the cream of the crop employees. Motivation can be a bitch. Having kids and adults alike call out at a whim because they don't give a shit gets old. And even when they're at work, trying to get them to clean the bathroom or stay late is not always easy. You will have to pick up the slack for their shortcomings, particularly in the early stages. Then all of a sudden, the health inspector posts a big fat ugly 60 (bad!) health score because somebody put hard boiled eggs on the wrong walk-in fridge shelf. Be ready to work a lot of hours until you get people established.
Also, relatively speaking, I find working in the food industry required an extemely thick skin.
I work in IT now where people get upset (for valid reasons) and let me know. The difference is when something goes wrong, people are generally respectful and understand things happen. For whatever reason, when it comes to food, customers loooooove to loose their bloody minds and go batshitinsane. They're more than happy to let you and everyone else around them know what a horrible person you are. And the best part it is, it's usually not your fault. Granted, it doesn't happen daily, but I've seen people quit after one bad customer experience it can get so bad and personal.
I say this because food industry management is not for the weak of heart. I would never suggest somebody gets into owning a food joint without working there first.
posted by jmd82 at 8:10 PM on February 17, 2010
There might be a small business association in town. One of my college professors was in charge of the local chapter, and their mission was to help out entrepreneurs in your position figure out how and where to start their own business, particularly writing up business proposals/plans and how to get startup capital. Google, yellow pages, or people in the know would be your resource to find that kinda pertinent information.
MsKim makes a good point though and is why I suggest working there first. Fast food is hard work. Being the boss doubly so. Excuse me while I stereotype, but fast food workers tend not to be the cream of the crop employees. Motivation can be a bitch. Having kids and adults alike call out at a whim because they don't give a shit gets old. And even when they're at work, trying to get them to clean the bathroom or stay late is not always easy. You will have to pick up the slack for their shortcomings, particularly in the early stages. Then all of a sudden, the health inspector posts a big fat ugly 60 (bad!) health score because somebody put hard boiled eggs on the wrong walk-in fridge shelf. Be ready to work a lot of hours until you get people established.
Also, relatively speaking, I find working in the food industry required an extemely thick skin.
I work in IT now where people get upset (for valid reasons) and let me know. The difference is when something goes wrong, people are generally respectful and understand things happen. For whatever reason, when it comes to food, customers loooooove to loose their bloody minds and go batshitinsane. They're more than happy to let you and everyone else around them know what a horrible person you are. And the best part it is, it's usually not your fault. Granted, it doesn't happen daily, but I've seen people quit after one bad customer experience it can get so bad and personal.
I say this because food industry management is not for the weak of heart. I would never suggest somebody gets into owning a food joint without working there first.
posted by jmd82 at 8:10 PM on February 17, 2010
Response by poster: Thanks for sharing your experience. What I ideally would like to do is not a mcdonalds or even a restaurant with seating. I am in a place where there are literally thousands of people walking around between 3am-6am in a few neighborhoods loaded with bars and night clubs and when they get out, there is absolutely nowhere for them to get something to eat. I originally thought there was a legal curfew on food vending but just recently, a pizza place opened up that is open until 6 and is raking in all that business. There is plenty of business to go around and so i´m confident the demand is there. What I would like to do is sell simple, cheap food that would be pre-made and reheated in the store in a small oven and everything would be to go. I would have maybe 5-10 items on the menu MAX, none of which would require preparing other than heating up, and then of course some other concessions like soft drinks and packaged food. So in terms of complexity, it wouldnt need any cooks, or even a full kitchen and only require 2 people on staff. Ive seen these kinds of places that are open at regular hours that operate with just a microwave oven, a fridge and a kitchen sink.
posted by postergeist at 8:23 PM on February 17, 2010
posted by postergeist at 8:23 PM on February 17, 2010
Instead of shooting for an entry-level job in a similar place, negotiate an apprenticeship. Tell the owner you're willing to work Friday nights for free in exchange for learning more than how the microwave works. You're in New York, right? There are a whole lot of unwritten rules about how to deal with licenses and inspections and so forth, not to mention unscrupulous landlords and shakedown schemes. That's the stuff you have to absorb to be successful, and being the nice guy who lets someone take a night off once a week is plenty of incentive for them to be generous teachers.
posted by gum at 8:36 PM on February 17, 2010
posted by gum at 8:36 PM on February 17, 2010
Selling pizza and snacks to drunk people sounds like a great idea, until you realize you're working your ass off at 4am and trying to wash barf out of your hair.
What are you going to do the rest of the day? Is this going to be a nighttime-only establishment?
You absolutely, positively need to work at a fast food joint (preferably several), before you start sinking time and money into this.
posted by ged at 9:52 PM on February 17, 2010
What are you going to do the rest of the day? Is this going to be a nighttime-only establishment?
You absolutely, positively need to work at a fast food joint (preferably several), before you start sinking time and money into this.
posted by ged at 9:52 PM on February 17, 2010
Slightly off topic, but drunks often like greasy and cheesy. A greasy diner breakfast or a late night order of onion rings, greasy tacos, burgers, pirogies. I don't know what it is about grease and alcohol but it works. The very best street vendors I've seen are in New Orleans, and LA (especially by Union Station). Dang, I'm gettin hungry.
posted by Gusaroo at 10:52 PM on February 17, 2010
posted by Gusaroo at 10:52 PM on February 17, 2010
what can I read?
Fast Food Nation (the nonfiction book, not the movie) offers some useful perspective on working in the fast food industry, including the usually high risk of armed robbery (see i.e. pp.83-86, "Inside Jobs"). Drunks aren't the only ones looking for something open at that hour.
posted by nakedcodemonkey at 11:10 PM on February 17, 2010
Fast Food Nation (the nonfiction book, not the movie) offers some useful perspective on working in the fast food industry, including the usually high risk of armed robbery (see i.e. pp.83-86, "Inside Jobs"). Drunks aren't the only ones looking for something open at that hour.
posted by nakedcodemonkey at 11:10 PM on February 17, 2010
I've had similar ideas, and I've looked a little bit into it, not nearly enough to get started, but definitely enough to get discouraged. Aside from licenses, permits, and passing inspections (as well as knowing what licenses, permits, and inspections you'll need) there's also the vast amount of prep that goes into creating a decent working menu. You'll need crowd pleasers, and not only will they have to be good, they'll have to pretty much taste the same every time you make them (this is why people visit McDonald's on trips overseas, the fries taste the same in New York as they do in Thailand, and they're looking for comfort), and they'll have to be ready, fast, each and every time they're ordered.
A while back, someone linked to Clover, a food truck at MIT, run by a grad. It's an exhausting and fascinating look at the ins and outs of setting up a food truck, which I imagine wouldn't be much different from what you're talking about, at least when it comes to work space. Take a look there, and definitely check out more about the industry, suppliers, storage, waste rates, and stuff like that. I don't want to discourage you, because I would love to do it myself, but you definitely want to go into this knowing as much as you can.
Oh, and be clean. Seriously. One person, one time, gets sick from something you serve, and word of mouth will kill your place. Food prep is all about clean surfaces, avoiding cross contamination, and paying strict attention to spoilage and storage.
posted by Ghidorah at 1:01 AM on February 18, 2010 [1 favorite]
A while back, someone linked to Clover, a food truck at MIT, run by a grad. It's an exhausting and fascinating look at the ins and outs of setting up a food truck, which I imagine wouldn't be much different from what you're talking about, at least when it comes to work space. Take a look there, and definitely check out more about the industry, suppliers, storage, waste rates, and stuff like that. I don't want to discourage you, because I would love to do it myself, but you definitely want to go into this knowing as much as you can.
Oh, and be clean. Seriously. One person, one time, gets sick from something you serve, and word of mouth will kill your place. Food prep is all about clean surfaces, avoiding cross contamination, and paying strict attention to spoilage and storage.
posted by Ghidorah at 1:01 AM on February 18, 2010 [1 favorite]
Fresh is better than microwaved. Go for hummus and pita sandwiches with some meat in them. Or try falafels. Do something fresh and people are more likely to come to you. Just make sure what you have is not something that can be had at a gas station.
Keep a cleanup crew on hand for people who barf.
Portray yourself as a researcher and pay the health department a visit and ask them whether nutritional information is required to be published for a business.
From the US foodservice you can get BBQ in a tub and you can make plenty of sandwiches off that. Depending on your sources of funding you'll have to juggle money, learn to maintain accounts and also look at whether you want to be a small business owner with the possibility to run more small businesses or do you want to be a person working a job.
The former takes meticulous planning and the latter takes painstaking work with trust in another person to take over when you want to do something different.
Read the blog on nytimes.com/boss and see Jay Goldtz's posts. The name may be Jay Gold or Jay Goltz, I can't access the website right now due to a slow internet connection.
Find out prices of other foods from US foodservice. Further, try working for a place with a deli, it will really get you experience. MeFi mail me if you have any future questions or want other advice or just want to bounce ideas etc. Writing out "how" the business is going to work is going to be crucial.
posted by iNfo.Pump at 5:50 AM on February 18, 2010
Keep a cleanup crew on hand for people who barf.
Portray yourself as a researcher and pay the health department a visit and ask them whether nutritional information is required to be published for a business.
From the US foodservice you can get BBQ in a tub and you can make plenty of sandwiches off that. Depending on your sources of funding you'll have to juggle money, learn to maintain accounts and also look at whether you want to be a small business owner with the possibility to run more small businesses or do you want to be a person working a job.
The former takes meticulous planning and the latter takes painstaking work with trust in another person to take over when you want to do something different.
Read the blog on nytimes.com/boss and see Jay Goldtz's posts. The name may be Jay Gold or Jay Goltz, I can't access the website right now due to a slow internet connection.
Find out prices of other foods from US foodservice. Further, try working for a place with a deli, it will really get you experience. MeFi mail me if you have any future questions or want other advice or just want to bounce ideas etc. Writing out "how" the business is going to work is going to be crucial.
posted by iNfo.Pump at 5:50 AM on February 18, 2010
I don't really underestand what you could serve drunks that was pre-prepared. I mean in my experience as a drunkard i'm partial to the frollowing:
- Kebabs / gyros
- pizza slices
- hamburgers (particularly Oporto! mm miss those)
- Salt beef Beigels
- hot dogs / sausage on a roll
- Burritos
- Meat Pies
none of which can really be pre-made and heated in a microwave.
posted by mary8nne at 5:54 AM on February 18, 2010
- Kebabs / gyros
- pizza slices
- hamburgers (particularly Oporto! mm miss those)
- Salt beef Beigels
- hot dogs / sausage on a roll
- Burritos
- Meat Pies
none of which can really be pre-made and heated in a microwave.
posted by mary8nne at 5:54 AM on February 18, 2010
You could do a currywurst type of place... Yum.
I think you have a great business opportunity, and the time is now. I would visit a ton of fast food places and make a huge list of likes and dislikes. I would hire an advisor of some kind. Make friends with owners of businesses like these and ask them if you can get their advice. Buy some "Dummies" books. They have them for this kind of thing.
Warning: This is going to take up all your time for a while, so jump in all the way and go for it. Don't think this will necessarily be "easy" money. It may be lucrative, but this is going to be work.
posted by xammerboy at 5:59 AM on February 18, 2010
I think you have a great business opportunity, and the time is now. I would visit a ton of fast food places and make a huge list of likes and dislikes. I would hire an advisor of some kind. Make friends with owners of businesses like these and ask them if you can get their advice. Buy some "Dummies" books. They have them for this kind of thing.
Warning: This is going to take up all your time for a while, so jump in all the way and go for it. Don't think this will necessarily be "easy" money. It may be lucrative, but this is going to be work.
posted by xammerboy at 5:59 AM on February 18, 2010
Work at a couple of places that serve a similar clientele. Learn abut food prep safety, regulations, labor laws; these things will make your life a misery if you don't master them. Contact the Small Business Administration in your state or town; they may have a different name, but they have expertise available for people starting a business.
Start shopping for used restaurant equipment; when somebody closes a business, you may be able to get what you need affordably. Consider starting with a food cart; startup cost s manageable, and you can make money with the right foods.
If you just serve pre-prepared food, a cart or truck makes more sense. A storefront is an order of magnitude more commitment and work.
posted by theora55 at 8:25 AM on February 18, 2010
Start shopping for used restaurant equipment; when somebody closes a business, you may be able to get what you need affordably. Consider starting with a food cart; startup cost s manageable, and you can make money with the right foods.
If you just serve pre-prepared food, a cart or truck makes more sense. A storefront is an order of magnitude more commitment and work.
posted by theora55 at 8:25 AM on February 18, 2010
Seconding working as a manager at someone else's restaurant until you know what you're getting yourself into. This article by the guy who started howstuffworks.com suggests getting a job to learn the business, so you can get paid to learn how to not fail.
posted by sninctown at 8:21 PM on February 18, 2010
posted by sninctown at 8:21 PM on February 18, 2010
This thread is closed to new comments.
posted by InsanePenguin at 7:30 PM on February 17, 2010