The low down of setting up a street food business
My passion for street food is no secret, and not just eating it… I’m a big fan of the industry and think this is where the future lies. I admire anyone who has a street food business, especially their passion for the recipes they create.
I had a chat with David, the man behind Guasacaca, Hermanos Taco House and The Cuban Box, who is plenty passionate. We discussed the ups and downs of setting up a street food business and how to make it successful.
Me: Tell me, why do you think street food is so popular?
It’s hard to put it down to just one thing.
The variety of cuisine definitely comes into it, as does the different cultures and experiences you get from it. Food is about experience and street food is right in line with this.
With street food, you stand there, you see your food being cooked in front of you and have a conversation with the guy doing it. You see the passion and creativity working its way into the food before your eyes.
Five years ago, there were hardly any street food markets, now, it’s hard to walk around a corner without coming face to face with one. It’s becoming more and more competitive and that’s keeping everyone at the top of their game. There’s no room for average, boring food.
Me: What’s the story behind your business? What were your first steps?
I founded Guasacaca 6 years ago. There was one Venezuelan food trader in Camden, the food wasn’t all that, and knew I could do better.
I studied economics back home in Venezuela. I came to the UK to study English for six months and just before it was time to go home, I went to Spain to visit family. Whilst I was there, I realised there was no way I was leaving the UK — if you work hard here you can achieve epic stuff, I wasn’t giving up that opportunity.
I started out in the food service industry at Itsu, but I have to be honest, their strict processes were not for me! I moved on to Bodega Negra in Soho working as a runner, eventually they asked me to become a waiter. By now, the idea of Guasacaca was firmly planted in my mind, and I needed a way of getting it to fruition. I negotiated my hours, so I’d work three days of double shifts, giving me the rest of the week to work on Guasacaca. Boy, that was hard work, I look back and I have no idea how I did it!
Me: Then what?
When I first set up, it was chaos — I’ll be the first to admit that. I had no cash and no idea.
There are so many tricky decisions to make. Like the type of equipment; should I go for something cheap to save money, or something more expensive so it will last longer?
Even stuff like choosing my power source — should I go for electric or gas? Electric is way easier, but not all events have an electricity supply. Gas is more of a hassle, but it allows you to be self-sufficient.
Then there are things like transport. Transport is key and I learned that the hard way. When I first started out, I was transporting equipment and ingredients in suitcases on the tube — utter madness.
Me: Wow, moving everything on the tube can’t have been fun, what did you do to make it easier?
I moved to minicabs, making sure I was using the same company each time. This turned out to be a great idea because it allowed me to build a relationship with them, and get a reliable service as well as negotiate the price.
Then, I started using Zip vans to give me more control and freedom, I didn’t want to rely on someone else to run my business. This seemed like a smart move, but the problem with Zip vans is that you have to drop the van off where you picked it up. One of my first markets was Hammersmith; I’d pick up the van in Fulham, load everything into the back and drive to Hammersmith. I’d unload my gear, jump in the van and drop it back off in Fulham. Then I’d catch a bus all the way back to Hammersmith to the market. I don’t miss doing that!
Now, we’ve got a new re-fitted van which holds all the kit and equipment, there’s even space for the cool boxes!
Me: I’m a big fan of your cool boxes, by the way. Tell me about the moment you knew you had a winning idea in your hands?
When we finally got the right exposure.
My very first market was Deptford Street Market. That was not the right place for Guasacaca. I was selling 1 x Arepas for £3 and 2 x Arepas for £5 but people would still find it expensive.
Something needed to change.
Then, I was invited to street food market in Portobello, my first good market. I had a big queue in front of our stand and I recognised that I spotted a great business opportunity.
That was when I knew. I could feel it was going to take off, and I realised that what makes or breaks your business, is the location.
Me: Location is important, but what about the food?
A street food stall would be nothing without an incredible menu. Whether you’re doing one thing or five things, you have to do them well and you have to do them fast.
I wanted to serve authentic Venezuelan food — arepas are done in a matter of minutes, so we can serve them quickly, giving us the opportunity for great turnover. It also doesn’t hurt that people love them!
You might already know, but Guasacaca is a Venezuelan sauce made using avocado. To start with we had two types; a spicy and non-spicy option. This slowed down serving times and upped prep time, so I got rid of the spicy option. You can have spicy sauce separately if you want. Simple.
Every decision you make with your menu should be made with scalability at the back of your mind.
Me: What are the pros and cons of setting up as a street food business?
One of the biggest pros is flexibility. You’re way more flexible to explore exciting events and festivals than a static restaurant, which opens up a host of opportunities. New people are trying your food all the time and you aren’t tied to a location. There’s nothing holding you down.
At big events, you can make a week’s worth of turnover. If you’ve created something one of a kind, that people love, big events are perfect. But you need to be careful, there are so many people creating fake events.
We got drawn into a scam: we found a website, they made us pay 50% up front, then disappeared a week before the event. The website shut down and no one answered the phone, it’s like they never existed. You need to be on the lookout for scams when an event is new.
Always ask for permits to check whether they’re legit or not.
Me: Can you reveal some tips and tricks for people who want to set up their own street food business?
If you have the budget, go for a trailer or food truck — it’s way easier, but don’t forget you need a place to park it. Small events don’t always have space, so check with venues beforehand to make sure there’s room. If you don’t have much cash, stalls are cost effective and you can do it on the cheap, just be aware of the work required and think about how you’ll transport everything (I don’t recommend the tube!).
If you do music festivals, make sure you attract the attention you need with a good looking set up. We fit lights on the top of our truck so people can see us and head straight for us once they get drunk!
Be ready for inspections — always. If an inspector sees you aren’t compliant, then that’s it. If you haven’t got soap or hot water for example, they’ll say “sorry mate but you can’t trade today.”. Don’t put yourself in that position.
Me: We’re after your insight — what do you think the future of street food is?
I visited NY a couple of years ago and there I saw what is happening to the London street food scene right now. It’s going strong, but it’s moved into fixed premises. There’s nothing better than being able to choose any type of cuisine and sit down with each of you eating something different. More of that is going to open in London, guaranteed.
What else? Festivals! Festivals have gone from having a couple of basic options to rows of street food traders. Soon, festivals are going to become known for their food.
In the 7 years I’ve worked in this industry it’s changed so much. We’ve gone from events with a couple of options, to a huge variety of food. People have way more choice than they did just a few years ago.
Everyone is becoming more aware of quality, sustainability and waste. In some markets, you can’t serve food which has been frozen — a huge win for quality. Places like Mercato Metropolitano have pushed traders to use less plastic and switch to biodegradable packaging and I can’t wait to see more of that.
Me: Who is doing great things with street food? Who do you admire most?
I think the guys at Makatcha (Indonesian food) are doing something incredible. The set up they have, the logistics they have…it’s just so sleek. If you can do three massive festivals in one week like they do, you’ve nailed it.
And Marta at Cheeky Burger, she’s done so well in a competitive market and she’s getting so much of it right, from brand, to product, to menu. She can do the VIP section at British Summertime while doing a corporate event. She’s been able to scale so well.
Also, one of my friends did two weeks of uninterrupted trade. One day he served 3,000 portions – that’s £24k in one day! It requires a lot of prep work but boy, it pays off.
Me: What’s the biggest challenge you’re facing right now?
When you start it’s only you. When you grow, you need to take people onboard. Today, training is a big challenge for our business. We need to find the right team and we need them to hit the ground running.
However, there are few businesses than can provide you contingency employees and take you out of trouble and stress. We have 20 staff all-together, so when we have a big event and need extra people, these companies work well for simpler jobs, like managing the till and taking orders.
Now, an exciting and massive challenge is getting the business to the next level, which means to bring the business to many sites around London and the UK. We are giving it 100% and confident that we’ll get there.
