0207 608 5500
Search ideas, news and case studies
Blog Categories
How to Start a Street Food Business in the UK
Dreaming of running your own food stall? Whether it’s artisan burgers, bao buns, or churros, pop-up food businesses are booming, and it’s easy to see why. They’re creative, more affordable than a restaurant, and a great way to test your ideas in the real world. But is it really worth it? Let’s break down the legal steps, practical tips, and pros and cons of launching your own pop-up food business in the UK.
Key Takeaways
- Register with your local authority at least 28 days before trading and follow Food Standards Agency hygiene rules
- Choose a business structure (sole trader or limited company) and register with HMRC to meet UK tax requirements
- Get essential insurance such as public liability and employer’s liability if you hire staff
- Keep your menu simple and pricing realistic, factoring in ingredients, overheads, and profit
- Pick a high-footfall location and comply with food safety laws, allergen labelling, and sustainability rules
Step 1: What are the Pros and Cons of Street Food Businesses?
Why it’s a great move
- Lower start-up costs – often under £5,000
- Work when and where you want
- Less risk than running a restaurant
- Total creative freedom- there are no limits when it comes to experimenting with different dishes and flavour combinations
What to watch out for
- You’ll need to stay on top of admin and food safety regulations – from registrations to hygiene standards, there’s paperwork and compliance involved.
- Sales can be unpredictable – bad weather or low footfall can directly impact your income on market days.
- There’s no guaranteed income – it may take time to build a steady flow of customers and reliable profits.
- Some markets have sustainability rules – you may be expected to use compostable packaging and reduce single-use plastics.
Step 2: How to Choose the Right Business Structure for My Street Food Business?
Sole Trader or Limited Company – Which Is Right for You?
You can operate as a sole trader or register a limited company. Each has pros and cons:
- Sole trader: Easier to start and run, less admin, but you’re personally liable for any debts
- Limited company: Offers several advantages, including:
- Limited liability – you can only lose the money you put into the company
- Tax efficiency – you may be able to pay yourself through a combination of salary and dividends
- Professional image – clients view you as more established or credible
- Easier to scale – if you plan to take on partners, investors, or employees, a limited company structure makes this simpler
Check out our company formation packages here to find the right fit for your business.
Step 3: What are the Legal and Compliance Requirements for Starting a Street Food Business?
How to Register with your local authority
If you're selling food, you’ll need to register your stall with your local authority at least 28 days before you plan to trade. After that, someone from the Environmental Health Office (EHO) will visit to inspect your setup. Once they give you the go-ahead, you're good to start.
You’ll also need to register with HMRC as a sole trader or limited company. Not sure which is right for you? Compare your company options here.
What Food Standards Agency (FSA) Rules Need to be Followed?
To sell food legally, you and your staff will need the right hygiene certificates:
- Level 2 Food Hygiene Certificate if you’re preparing or handling food
- Level 1 Certificate for staff who aren’t handling food directly
These help show that you understand food safety, allergens, and how to store things properly. You'll also need to be confident discussing allergens with customers, and if you pre-pack any food, allergen labelling rules (like Natasha’s Law) may apply. Natasha’s Law applies to food pre-packed for direct sale (PPDS) – not made-to-order items, but it’s still good practice to label allergens clearly.
How to Register Your Business with HMRC
Before you start selling, it’s important to register your business properly.
If you earn over £1,000 in a tax year and you're not already set up as a limited company, you must register as a sole trader.
Whether you choose to operate as a sole trader or set up a limited company, you'll need to:
- File a tax return each year
- Pay Income Tax and National Insurance (depending on profits)
- Keep records of expenses, invoices, and earnings
The benefit? You can claim back many of your business-related costs, like ingredients or cooking equipment and appliances, as allowable expenses.
When Do You Have to Register for VAT in the UK?
If your VAT taxable turnover exceeds £90,000 in a 12-month period, you must register for VAT.
If you're below the threshold, registering voluntarily might still help, for example, if you work with VAT-registered suppliers or want to look more established.
Register your company for VAT with our VAT registration services and save yourself time.
What Insurance Do You Need to Protect Your Street Food Business?
- Employer’s liability insurance – legally required if you hire anyone (you'll need a certificate to display prominently in your stall)
- Public liability insurance – not a legal requirement, but highly recommended in case a member of the public is injured or made ill because of your stall.
What Health and Safety Requirements are there for Street Food Businesses?
- Health & safety checks – you’ll need to carry these out regularly (either yourself or by a hired specialist)
- Health & Safety Policy Document – only needed if you have five or more employees, but good to have anyway
It’s also worth checking out NCASS (National Caterers Association). They offer guidance, training, and downloadable templates to help you meet legal requirements and run a safe, compliant stall.
Step 4: How to Refine Your Menu and Pick the Perfect Spot for Your Street Food Business
Do some digging
It’s not just about what you want to cook – it’s about what sells. Ask yourself:
- What’s already doing well nearby?
- What’s missing from the local food scene?
- Where are similar stalls or restaurants based?
Walk around markets, festivals, and local events to get a feel for what works. And don’t forget to set up a reliable contactless payment method, most customers will expect to tap and go.
Keep your menu tight
Less is more. Aim for 3–5 standout dishes that you can make quickly and consistently. This keeps your service smooth, your waste low, and your brand strong.
Step 5: Know Your Worth - How to Price Your Street Food Fairly
When pricing your street food dishes, make sure to consider:
- Cost of ingredients
- Maintenance, overhead, and staff costs
- Desired profit and VAT
- Target market (consider location)
Don't undervalue yourself. If it's your business, your time and skill deserve pay too.
So… is it worth it?
Running a pop-up food stall can be hugely rewarding – if you go in prepared. You’ll have freedom, flexibility, and the chance to build something of your own. But success takes more than just great food. You’ll need a solid plan, proper compliance, and a bit of resilience, too.
Ready to dive in?
We’re here to help. From registering your business to handling the extras like name changes or VAT, we make it simple. Compare formation packages here →
The information in this blog is correct at the time of publication. For the latest updates on government regulations or requirements, visit www.gov.uk or check with your local authority’s official website.
