If you are you looking for a business to start
It is worth considering catering trailers and other forms of mobile catering.
Ask top entrepreneurs what factors make a good business – and they would probably mention most of the factors we present here for a catering trailer business.
Duncan Bannatyne cut his entrepreneurial teeth on concession catering in Jersey – and his first business when he returned to the UK was an ice cream van business.
Here are ten reasons why mobile catering could make a good business.
In no particular order:
- An established industry that is not a fad. Catering trailers and other forms of mobile catering has have been around for many years. Indeed, one celebrity entrepreneur started this way. People will always want food!
- High margin and low overheads in comparison to many other businesses. So it is not unusual (although far from guaranteed) for mobile catering businesses to pay back the capital in less than a year, and it can be much faster than that. That speed is almost unkown in franchising.
- You can be flexible in what you offer you are not rigidly tied into a menu or brand. You don’t carry a massive stock, if something does not sell. So If fish and chips or Indian food is not working, it is possible that sandwiches or baked potatoes will. You can chop and change menu to find out what works and differentiate your business.
- You are not trapped. You can also move and experiment to find the best location. If it is not working in one location you not tied to a premises lease. So you can look for a variety of other locations. This is difficult to do because of premises leases with a standard retail business. Many catering trailers, have several pitches at different times of the week and year.
- Comparatively low entry cost and barriers to entry generally. For sure there vital good sites to find, and licenses to obtain. it is still a relatively low investment in both time and cost
- It is not only about price for the customer! Many catering trailer businesses have a loyal following . It is not just a business based on price where the customers move on for a few percent cheaper, so margins are not eroded as they are in competitive niches.
- Relatively Low experience needed. Provide you seek guidance on the key issues and ensure you find good sites, then massive experience or knowledge is not needed.
- You are in charge and can work when you want.You are not tied to an office, or forced to be there for customers to ring. So you pick the location and the hours
- No late payment or bad debts. Customers pay in advance of the sale No danger of either waiting for payment , or customers going out of business, which is always a worry if you have to wait . It is also a cash business – which has its advantages.
- If all else fails, you can get out easily if it does not work. This is very important in managing risk, and certainly not true with commercial leases or many franchises contracts. So the risk is lower because of it.
That is a LOT of advantages.
BUT STOP
Before you rush out and look at catering trailers to buy. Please don’t.
Success is about planning, marketing, identifying locations and making sure you have the permits to trade.
It is not as easy as you may think. There are a LOT of traps for the unwary, and ver expensive mistakes – and like any business it carries some risk.
The better prepared you are, the greater chance you will succeed.
All sorts of questions:
What licenses do you need? How much should you pay a show organiser? What to sell, and how to buy a catering trailer? What safety rules are there? What equipment do you need?
If you are new to all this – we strongly recommend you buy a guide written by a successful mobile catering expert – Download the catering trailers from the MOBILE CATERING MASTERY page here!
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