The Ultimate Guide to Starting a Street Food Business

From Japanese snacks to bite-sized desserts, the street food business industry has been booming for the past decade― making it attractive to entrepreneurs and customers. If you’re a budding entrepreneur who wants to dip your toes in the food industry, we got your back. In this post, we’ll talk about everything you need to know about starting a street food business in the Philippines. We’ll also give you street food business ideas to help you start things off on the right foot.  

What Is a Street Food Business?

As the name suggests, this type of business involves selling street food like beverages and snacks. They often reflect the local cultures in which they exist. For instance, Filipino favorites like barbeque and noodles are often sold by street food vendors.  

Street food businesses are often located outdoors. However, some street food kiosks exist inside malls. As a result, these stalls usually have higher prices than those found outdoors. You can also find street food stalls in bazaars and night markets. 

In the Philippines, street food businesses have been popular over the last decade. The Filipino masses love their simplicity and accessibility, making them a go-to place for people who want to enjoy freshly cooked snacks. 

Benefits of Owning a Street Food Business

Not yet convinced whether to start a street food business in the Philippines or not? Let us help you decide. Here are the benefits of owning a street food business: 

1. It’s easy to market.

Street food businesses bank on people’s desire for convenience, which makes them easier to market. 

Imagine this: busy people don’t have time to cook food and so often opt for ready-to-eat meals. However, not all of them want to line up at fast food joints. 

This is where street food stalls come in. They’re relatively faster and cheaper than fast food, so many people prefer them.

2. You can start with a small capital. 

Unlike traditional restaurants and cafes, street food businesses in the Philippines call for relatively small capital. 

For one, you don’t have to pay for commercial space since you can start with a stall or a food truck. You also don’t need to have a big inventory, letting you save on operational expenses and facilities. Additionally, you can get workers at more affordable rates since street food items are easy to prepare. 

3. It’s not limited to the outlet.

While serving food on the go, you can also offer street food through user-friendly delivery apps for your customers’ convenience.

By doing this, you can serve customers who don’t have time to go to your stall or truck. They can conveniently enjoy your food in the comfort of their homes. 

4. You can cater to different tastes. 

Nowadays, street food isn’t just limited to fried food. With consumers looking for healthier alternatives, you can now sell healthy food that won’t break your customers’ wallets. These include wraps, sandwiches, coffee, milk tea, and many other items. In fact, huge startups now sell their products through street food stalls. 

5. You can make it sustainable.

Street food businesses consume relatively less energy because they don’t have to operate inside huge buildings. Plus, you can make your business more eco-friendly by offering recyclable cutlery.

Street Food Business Ideas

Running out of street food business ideas? We got your back. Here are some street food business ideas that can help you stand out and invite customers: 

1. Boba Tea and Coffee

Boba tea and coffee are top street food business ideas because they’re the most beloved beverages in the Philippines. Plus, tons of workers flock to milk tea and coffee shops to get their daily fix of energy.

So why not give it a try? From artisanal coffee to Filipino-inspired boba tea, you’ll never run out of options under this category. You can even experiment with coffee-infused boba tea. 

2. Smoothies and Juices

Make your stall or truck stand out by turning it into a healthy haven. Targeting healthy beverage lovers, a smoothie and juice bar can be the turning point you need.

Remember to offer fresh and vibrant smoothies and juices to keep them coming back. You can also offer superfood, protein, and seasonal fruit add-ons to keep things exciting.

3. Korean Food

The Korean wave isn’t going to die anytime soon, so you better take advantage of this street food business idea. From tteokbokki to Korean corn dogs, Korean street food is loved by Filipinos, especially K-pop fans.

Plus, Korean food is easy to make, which gives you the chance to serve food that doesn’t require much training. 

4. Loaded Wraps

Filled with exciting ingredients, wraps are a popular food for those who want to eat a healthy meal without the hassle. 

You can offer different items from around the world, including veggie wraps, shawarma, falafel, and more. Plus, you can offer wheat wraps for those who want a healthier bread option. 

5. Crepes and Waffles

Make your customers sweet and savory dreams by offering crepes and waffles from around the world. Think of Belgian waffles and French crepes with savory and sweet fillings.

You can fill them with meat, fruit, chocolate, and more. On top of that, you can over sweet and savory combinations like bacon with maple syrup to make this street food business idea more exciting for your customers.

6. International Dumplings

The name says it all: dumplings from all around the globe. From the delicious siomai to the healthy mandu, the world of dumplings is so hard to resist.

Don’t forget to serve them with many sauce options to cater to many tastes. Common sauces include garlic and vinegar, soy sauce, and chili oil.

7. Fresh Lemonade

Lemonade may be common but you can make yours special by preparing it fresh in front of your customers. You can also offer varieties like lavender-infused lemonade, lemonade with fruit bits, and sparkling lemonade. 

8. Gourmet Hot Dogs

Take the classic hot dog to the next level by offering gourmet items that your customers will crave. Think beyond the usual ketchup and mayo toppings. You can add blue cheese, pickles, guacamole, caramelized onions, salsa, and the like.

9. Ethnic Fusion

Offer people a melting pot of delicious food by combining popular cultural food like ramen carbonara, Thai curry noodles, teriyaki chicken tacos, and kimchi quesadilla. While they may sound bizarre at first, they’ll make your customers realize how delicious fusion food can be.

10. Ice Cream

Of course, ice cream has to be included in this list. Filipinos love ice cream, and going beyond the usual chocolate and vanilla flavors can set you up for success.

Think about offering artisanal ice cream with Filipino flavors like ube cheese, cheesy mamon, champorado, and banana turon. Oh, and don’t forget to offer vegan options by using plant-based milk. 

How To Start a Street Food Business

Now that we’re done with the benefits, let’s take a look at how you can start a street food business in the Philippines:

1.  Decide whether to franchise or go independent.

Let’s face it: the easier way is to franchise an established brand. However, this requires larger capital than going independent. 

If you decide to franchise an established brand, be prepared to shell out hundreds, if not millions of pesos. Despite this, franchising lets you use the branding and systems the company has already established. Popular street food franchises include Master Siomai, Potato Corner, and Waffle Time. 

But if you want to go through the independent route, you can start a small street food business in the Philippines. You can also make your stall unique and sell items that are not often sold by corporations. Plus, you can give your customers a homey vibe that they won’t usually get in malls.

2. Set it up at a strategic location. 

A strategic location is a place where there’s a high volume of people. This is non-negotiable if you want your street food business to profit.

Remember, you can sell the most delicious food on the planet, but if no one sees it, you’ll end up closing it. 

Strategic locations usually include areas near schools, terminals, offices, or busy roads. If that location happens to be where your house is also located, great for you. You can get your return on investment faster since you don’t have to pay rent or set up a stall from scratch.

3. Choose what you’re going to sell. 

Thanks to Filipinos’ creativity and penchant for turning ordinary stuff into delectable street food, you don’t have to worry about running out of choices to offer. Plus, you don’t have to worry much about the packaging since you can place them in cups, bowls, or skewers.

If you don’t know where to start, check out the street food business ideas we enumerated above. 

4. Find a reliable supplier. 

Owning a street food business in the Philippines requires you to use fresh ingredients every day. Hence, it’s important to build a long-term partnership with a reliable supplier in the market, one who will ensure quality and fresh ingredients for you and give discounts when you buy in bulk.

Remember, the success of your business heavily depends on your suppliers. Without enough raw materials, your daily business operations will be affected.

5. Invest in the right equipment and people. 

You can start a street food business in the Philippines with whatever you have.

Use grilling or cooking equipment and utensils you already have to save money. In case you need to buy new items, don’t sacrifice quality for affordability. Most cheap products don’t last long, and the money you save by buying them could have been better spent on pricier but more durable alternatives.

When starting, you also need at least one person to assist you in operating the business. Find someone trustworthy who will never resort to pilfering.

Don’t just rely on referrals. Check the person’s background meticulously. Then, set up an easy system to track daily inventory activities, so you’ll know how much money comes and goes and prevent profit loss due to stealing.

6. Set the right price for your products. 

Right pricing can be the difference between a successful street food business in the Philippines and a dud one. Price your products to cover your overhead costs while keeping them affordable. You can also survey your competitors to see whether you’re pricing your products too low or too high. 

Always remember that the reason why Filipinos prefer street food is that they fill their stomachs without hurting their pockets. Keep the prices affordable for the masses while getting stable profits. 

8. Observe proper sanitation. 

Street food vendors have earned a bad reputation for putting their customers’ health at risk due to their unsanitary practices. Don’t be one of them.

Instead, break the stereotype by keeping your area clean and observing strict sanitation during food preparation and storage. The last thing you want for your business is to crumble in pieces due to a customer contracting diseases from the food you serve.

If you want to know more about how to sanitize your kitchen tools and equipment, check out this guide. 

Frequently Asked Questions

Conclusion

A street food business might just be the plot twist you’ve been waiting for. So, what are you waiting for? Get those brain cells going and start creating your street food business plan now!

About HICAPS

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