Member Article

As food hits the streets, profits hit the roof

The economic crisis has hit many small businesses in the UK hard. We have seen a massive growth in new ventures closing, with up to 25% failing within their first year. This has been the trend across many industries, from manufacturing through to retail and construction. However, although the hospitality trade has by no means been left unscathed by the credit crunch, it has shown a keen resilience through creative and entrepreneurial enterprises. I am of course talking about the recent interest in “Street Food”, a trend that shows no signs of abating. It appears that we Brits, despite our legendary melancholic weather, like to brave the cold in search for some fresh, hot and often exotic food.

Across the country, street food festivals and markets have popped into being, and crowds have flocked in their thousands to appreciate worldly delights and, moreover, spend some of their hard earned money. This growing popular trend has been a godsend for small, independent catering companies in what could have otherwise been a disastrous time. The street food market is an open community, where smaller, local businesses are invited and encouraged to set up stall and serve the best grub they have to offer. It’s an opportunity to seriously boost your profits and it shouldn’t be missed. The standard cost to hold a stall at an event is a one off payment of £250-£350 depending on location. The reduction in overhead costs, coupled with minimising wage percentage means that more pennies reach it to your pocket. And let’s not forget the promotional benefits such a move can provide. By forcing your brand into a guaranteed busy area with high footfall will introduce your business to a whole new demographic. This is a particularly excellent perk for those restaurants trying to make a name for themselves in quieter areas. Take to the streets, shout out your name, serve the best you have to offer and make a few quid whilst doing it!

The street food trend is not without its pitfalls, and all businesses should be aware of the risks involved. In March 2013 Newcastle’s Street Spice Festival was hit with a food poisoning PR disaster as a total of 342 people showed signs of sickness, with many being diagnosed with salmonella. It highlighted some major areas to be revised with regards to hygiene regulations and the quality of products being served. Yet, as a freak occurrence (the culprit being raw curry leaves, a product where there are no regulations in how it should be cooked) this should only serve as a warning to tighten up the ground rules. The benefits for both consumer and business outweigh the negatives. No restaurateur should be discouraged from getting in on the street food action. Cut down on your overhead spend, cash in on the profits, show off what you do to a whole host of potential future customers. You never know, it could just save your business.

This was posted in Bdaily's Members' News section by Matthew Pinchard .