Thinking of starting a takeaway business at home? Or perhaps you want to open a takeaway restaurant? Whatever your brilliant food business idea, you need to be aware of the different challenges you’ll face as you get started and beyond. But don’t let those challenges scare you off. Food businesses are amongst the most scalable of all business models, allowing you to start small and build from there.
Takeaway businesses are still enjoying a real boom – after all, we’ve all got to eat and takeaways are a great treat for many. If you can make good food, or simply hire staff who can, then you’re already on to a winning idea. Add a strong business plan and some natural business savvy, then you could start your own business and turn it into a resounding success.
Good food is important, but high standards of food safety (and a 5 food hygiene rating), consistent delivery services, and customer satisfaction and loyalty are just as important.
Health and safety regulations and food safety practices set by the Food Standards Agency and local authorities can make you feel like you’re jumping through hoops as you start out, but as a takeaway restaurant prepares food for the general public, high standards have to be met. Getting to grips with these early on is vital.
Below, Real Business will provide you with a quick start guide on how to start a successful business in the takeaway field. From food trucks to takeaway restaurants and everything in between, find out how to start a takeaway food business below.
Table of Contents
Create A Strong Business Plan
In any business diving in without a plan is a terrible idea – but especially so in the food industry. A strong business plan will set you up for the ultimate success. A lack of a plan will set you up for a lawsuit.
Before looking for a premises, hiring staff, and coming up with a string name, consider what your goals are. Food costs, average prices for similar takeaways in the area, and projected sales all have to be considered.
A takeaway business plan should also include:
Takeaway Type
Do you have an idea about the cuisine you’ll be offering? Stick to a specific cuisine or style of food to prevent confusion – it’ll also help when coming up with a name for your takeaway business that will stick in your customer’s minds and ensure they keep coming back for more. To decide on the cuisine you’ll offer you’ll need to conduct some market research asking:
- What cuisine is popular in the area
- What’s missing
- What are potential competitors offering
- And how can you offer something unique
Cuisine you’re experienced with would be a wise choice too, even if there’s competition, you might be able to outshine your competitors.
Target Market
Your target market or target audience are your potential customers. You have to know who they are so you can offer them things they actually want – this is an important step in all businesses, but for a food business this is vital. Not creating dishes customers will buy will lead to food waste and unnecessary costs for the business. Your target market affects:
- branding
- prices
- dishes offered
- business name
- etc
Defining your target audience early is the way to success.
Delivery Services
First let us start by telling you that you don’t have to deliver as a takeaway business – customers can come to you and pick up. But it’s worth thinking about ways to make your takeaway more accessible so you can cast a wider net for customers – and delivery services are usually the best option here.
Think about partnering with online apps like Uber Eats, Deliveroo and Just Eat so that customers have an online ordering system that they can use to place their orders.
Think about the customer experience early on, and you’ll stand a greater chance of getting it right. This will only attract customers more and more.
The Financials
Profit is the ultimate goal for any business and it’s no different here. But in order to make that profit you need to consider:
- food costs
- pricing of dishes
- realistic sales projections
- cooking costs
- early investment costs (e.g. new cooking equipment)
- everyday costs (e.g. rental costs, energy costs, etc)
If numbers aren’t your strength, consider talking with a business advisor or accountant to help you get your head around the startup costs and daily running costs so you give yourself the best chance of success.
Sample Menu
A sample menu is a must for any takeaway business plan – of course, you can make adjustments along the way, but a sample menu with prices and costs will give you the best chance of accurately predicting future profit when you get things off the ground.
Should A New Takeaway Business Consider Franchising?
New takeaway business owners could consider following a model that’s already a resounding success. Takeaway franchises are some of the most successful because they come with an established name already attached to them. Think KFC or McDonald’s – there are plenty of successful franchises operating under these recognisable names.
But beware. You can’t just open a takeaway business and start operating as McDonald’s. You’ll need to invest in a franchise, and it won’t come cheap. A franchisor will need a detailed business plan and suppliers to show the parent company how you plan to only add to their name, and not detract from it.
Getting support from investors is usually easier as a franchisor, but it comes with a lot of responsibility and fast profits are usually expected. It’s an expensive route, and you’ll be constrained by the menu and rules of the franchise, but it can certainly be a way to guarantee interest in your takeaway business.
Have You Considered A Business Location?
Finding the right location is the key to a takeaway business’ success. Most people won’t want to buy a takeaway from the middle of nowhere, even when delivery is offered because it’s simply too far away. Nor will they want to come and pick up from a building that looks old and tired, even if it’s a short walk from their home.
You need a business location that’s close to your target market and a location that looks great – or at the very least can be made to look great with some decorating work.
Finding the ideal commercial premises is tricky. Rents can be incredibly high in hotspots and buying is never cheap. Find a good commercial property agent, though, and you’ll stand a chance of finding a great deal in a great location.
Ideally, your property will have already operated as a takeaway business in the past, as this will mean the relevant licenses will be in place and easy to obtain yourself.
What Financing Will I Need To Start A Takeaway Business?
Starting a takeaway business on your own will require a lot of capital to invest, and not everybody is in such a fortunate position. But that doesn’t mean you can’t open one at all. There are financing options available to new business owners that you ought to consider.
Some examples include:
- bank loans
- private lenders
- investors
- crowdfunding
Research your options and see which suits you best. Remember, you can also think about combining the different funding options to give your business a real cash injection as you get started.
But what do you need to access these funding options? Well, in order to be approved you’ll need a strong business plan (so remember to follow our guide above), a clean financial record and some experience in business – preferably. You should know how much you’ll need to kickstart your business so you can explain what you need and why you need it to anybody who you’re asking for money.
Think About The Importance Of Compliance In A Food Business
A takeaway business has to be completely above board, because it’s dangerous to operate not in accordance with the rules and regulations of your local authority and the Food Standards Agency.
Start first by officially registering your business. Apply for any licenses you need to operate a takeaway business in your area. Keep good books so you can provide HMRC with all the financial information they need each year. Stay looped in to the latest health and safety regulations, requirements, and advice to ensure full compliance with food preparation and safety.
Before you open your takeaway’s doors, you’ll need to register with your local authority – this has to be at least 28 days before opening day, but you should check for your individual authority. This allows all checks to be completed. You should also obtain a Food Hygiene Rating which will tell your customers about your business’ food hygiene standards. Also ensure your menu is properly labelled with all ingredients and allergens.
Being fully compliant is so important to avoiding legal issues and protecting the health and safety of all of your customers.
Get Insurance For Your Business
Setting yourself up for success is just one part of being a responsible, savvy business owner. The other part is preparing for when things go wrong. Insurance is the best way to prepare in this way. It’s not always obligatory or legally necessary – although employers’ liability insurance is. Choose for yourself which insurances you deem necessary for your business from the following:
- Public liability insurance
- Employers’ liability insurance
- Product liability insurance
- Business equipment insurance
There are many insurance packages that cover all of the above insurance options, and it is well worth making use of all of them if you want to be covered.
While insurance may seem like an unnecessary cost every month, it can truly save your business in case something goes wrong.
Imagine one member of the public is injured in your takeaway because of a member of staff’s negligence. They have every right to make a claim against you, and that claim could come to £1000s depending on their injuries, the cause, and the lasting impact on their life. Public liability insurance – an optional extra for many businesses – would cover those costs.
Start Connecting With Reliable Suppliers
Regular supplies is necessary when you open up a takeaway business. From ingredients and packaging to cleaning equipment and more, you need to find the best people to buy these things from. Get to know different suppliers in your area and build a relationship with those that communicate well, set good prices, and have proven reliability in the industry.
Unsure where to start? Ask other takeaways in the area who they work with. Most business owners won’t mind helping out a new takeaway owner, so long as you’re not direct competitors of course.
Unreliable suppliers can seriously impact customer experience and your bottom line, so choose wisely here and focus on suppliers with a track record for excellence.
Hire Reliable Staff
Reliable staff is far more important than experienced staff when you’re starting out. Workers who show up consistently and try their best can learn the trade. But an unreliable staff member who doesn’t care about being on time can sink your business operations on any given day.
If you’re thinking of hiring workers, concentrate on how they can help so you can put together an accurate job description to prevent any surprises. Will they need to help with food preparation? Will they be customer facing and dealing with orders? Make sure you know what you’re hiring for, so you can find the best fit for the role.
Finding experienced, reliable staff is naturally like winning the jackpot for any takeaway business, as they’ll know the basics. Whatever the case, you’ll still need to provide some training to ensure the newest member of your team is familiar with your processes and menu so they can deliver the best results day in day out.
Professional employment contracts should be drawn up. There are many templates online, but you may want to consult a legal professional if you are new to drawing up employment contracts.
Final Step: Market Your New Takeaway Business
Once you have most of your business affairs in order, it is time to start marketing your business. You want to ensure that you have eye-catching marketing materials such as a logo, menus, etc. It is important that you invest in quality marketing material that will look good on various online platforms and in printed format. From here, you can look at marketing. There are many avenues you can take, including:
- Word of mouth– Tell all of your family and friends about your new takeaway business. You’ll be surprised by how quickly word of mouth travels.
- Social media marketing– These days, all businesses need to be active on social media. Ensure your menu and contact number is easily visible.
- Local resources– Local resources, such as local newspapers, Facebook groups etc., can be very valuable for advertising.
- Influencer marketing– Influencer marketing can be a fantastic way to reach a large number of people by providing an influencer with a free meal in return for a shoutout on their platforms.
- Flyers– Handing out flyers and menus in your local area is a great way to alert your local community about your new business venture.
Marketing is exceptionally important for any business, and it may be well worth your time to sit down with a marketing specialist and have them design a custom marketing plan for you.
How To Open A Takeaway Conclusion: Start Cooking
Once all your business affairs are in order, the only thing left to do is wait for your first order and start cooking!
The initial stages of opening up a takeaway can be very challenging. There may be processes that need a lot of refining, and you may battle to reach customers in the beginning. As long as you are prepared for the challenges involved and have a rock-solid business plan to stick to, you can turn this business venture into a resounding success.
Preparation is key for any business, but if you get this right, know who your customers are, and create a menu and marketing strategy that directly speaks to them, you can’t really go wrong.
