food cart business plan sample in the philippines

How To Start A Food Cart Business Philippines

How to start a food cart business in the Philippines? This business concept is very hot in the Philippines currently. When we look at the stock market, the economy, and small businesses, we can see that many industries have started to grow, including the food industry, which is excellent news for the Philippines.

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How To Start A Food Cart Business In The Philippines

You could also find more cost-effective food preparation and storage options, such as renting kitchens at a nearby restaurant, school, church, or other location with health inspections and licenses.     

At the very least, business owners will need a business license and a hospitality permit (more on this later). In addition, most lenders and investors will ask about your business plan before taking out a loan or investing in your food truck business.     

If you need additional funds, it is best to start a crowdfunding campaign asking your family and friends for support. Then, you are more likely to get a loan interest-free from them, but this is best discussed with a financial planner.    It is best to explain your financing plan, why you need the loan, and specify the amount you need.

When you plan to finance your food truck business, it is important to determine how the funds will be used, such as buying a truck, cooking equipment, employee salaries (if needed), and repaying the borrowed funds.

Once you have a business plan in place, your financial forecasts will help you obtain an idea and estimate the amount you will need to get your food trucks off the ground.     

A free PDF business plan can be downloaded on our business plan page.

To start a food truck business in the Philippines, you need a competitive and engaging concept, a viable business plan, a well-stocked food truck, and a solid marketing strategy to build your client base.     

Should You Start A Food Cart Business In The Philippines Or A Franchise

Some companies will have monthly fees, while other food cart businesses in the Philippines will have a royalty fee. Some even will have a term that means they will receive a small percentage on each item sold.

Terms when starting your own food cart business in the Philippines : On the other hand, if you start your own food cart business, then the terms are more towards the suppliers. Suppliers could include the location (i.e., landlord) or suppliers of products.

As an example, let us say that we are looking to start a burger food cart business . You have found a supplier for your meat. Do they have a minimum order which is a term that’s important to know before you start the business?

What Is Your Goal When Starting A Food Truck Business In The Philippines

Indeed, you can make a lot of money from a franchised food cart business that is franchised, and there are many benefits to this. Still, there are also limitations to franchising, which need some careful consideration.  

How Much Does It Cost To Start A Food Cart Business In The Philippines?

The cost is the next area when we look at ‘should you start a food cart business in the Philippines?’. Some franchising advertises a minimal amount of required startup capital . Others require a capital of over 100,000 pesos.

The other option that is available to you is to start your own food cart business. Starting your own food cart business would initially be the most expensive route if you were to start your own food cart business. But when looking at this business model long-term, it could be the most profitable and the most money-saving model compared to franchising.

What Are The Business Requirements For Starting A Food Cart Business In The Philippines?

Above are a few of the main areas that you will need as a business owner. Of course, as I mentioned, you may not need every one of these, and some of these may be covered by the franchising company. Nevertheless, the majority of these will put you ahead of the game.

After six months, a new ice-cream restaurant and 7/11 opens in the same location you are in. This example shows us a potential threat to your business. This is, of course, an example for this article, but it is recommended to spend some time looking over your strengths, weaknesses, opportunities, and threats.

What Are The Legal Requirements For A Food Cart Business In The Philippines?

For more information on setting up a food cart business/food truck business in the Philippines, feel free to click on the hyperlinks below to be taken to the relevant pages. 

How To Be Different When Starting A Food Truck Business In The Philippines?

A USP is something that keeps customers coming back. Remember the 80/20 law that we have spoken about before. The law states that 80% of your profits will come from 20% of your customers. So, in other words, when we are setting up a food cart business in the Philippines, we want customers to return and make more orders. Therefore, it’s essential to have a U.S.P.

What should your U.S.P. be? This is your choice. If this is your own food cart business, then you have complete freedom. If you are franchising a food cart business, then you may have specific limitations. However, the company that you are with may have already established a U.S.P. in the market. This will be an advantage in the early days.

What Is The Current Food Cart Market In The Philippines

As we all know, The Philippines differs dramatically from island to island and city to city. In order words, what products are popular in one area may not be as popular in another. This is always a hard thing to scale when looking at a business. Therefore, market research is always critical at the initial business stage.

When we look at the current market, what trends are you starting to see? For instance, a few years ago, milk tea first became popular across Asia, China, the Philippines, Thailand, Taiwan, and many other countries. Do you feel the current market is saturated with this business idea, or do you still feel a market gap?

One of the biggest mistakes I’ve seen businesses make time and again is copying another business that’s been succeeding.

Even filipinowealth.com has seen countless blogs set up in recent times that have copied certain parts of our article and added it to their website as their own. The problem that this causes is there is no originality, and there is nothing unique. Filipino Wealth

This may sustain a business for a little bit of time. But, ultimately, businesses that copy other businesses will fail, so never be afraid to be different and be a leader in your industry.

How To Start A Franchising Food Cart Business ?

How to start a solo food cart business .

On the other hand, if you are looking to start your own food cart business, then there are certain things you will need to do. The most obvious is registering the company and gaining any permits or licenses required for the products you are selling.

Once you have done this, the rest of the business is something many people enjoy doing. You can start building your plans, finding a location, buying your machinery, and of course, the actual food cart itself.

Tips For Starting A Food Cart Business In The Philippines?

Right Location: The right location can make or break your business. Try to look at potential businesses nearby. For instance, is there a call center or corporation nearby where the staff could benefit from your selling product?

Right Network: Are you able to network with different companies or people? Perhaps you can agree with a company to offer its workers 20% off all drinks on Saturday and Sunday.

Right Team : You may decide to run this business on your own, or you may decide to hire someone to run this for you. Whatever you choose, make sure you have the right team behind you. This is critical when building the foundations of your business.

Right Plan : At the start of any business, a plan or a strategy will be needed. Unfortunately, some businesses are ‘winged,’ which means they start without any plan. This is not recommended for a food cart business in the Philippines.

I wouldn’t suggest spending days looking at each of these points but at least a few hours with a pen and paper. Of course, you can always change your plan and strategy as you grow, but having a necessary foundation will help you in the early days of business.

Food Truck Business Philippines: Summary & TakeAway

Is a food cart business a good idea? If you can find the right market, customer, and product, then yes, a food cart business in the Philippines can be very profitable.

What I’ve always noticed around the Philippines is that Word of mouth is powerful. In other words, you will have to bring your A-game when serving customers. It’s effortless to set up a business without the correct requirements.

However, this will always catch up to you, so it is best to obtain the correct permits before opening a business.

If you do not have the resources to fund your own food cart business in the Philippines, another route could be to franchise. When you franchise another company, you are given certain benefits that are very helpful in the early stages of business.

For example, an established food cart business always has its own U.S.P., Idea customer, suppliers, etc. This will help your business run smoother in the early days.

Food Cart Truck Tips

Warnings starting food business, future reading & references.

Food Cart Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Food Sector » Food Truck & Cart

Are you about starting a food cart business ? If YES, here is a complete sample food cart business plan template & feasibility report you can use for FREE .

Starting a food cart might be one of the nicest moves to make. This is hinged on the fact that there are a whole lot of people who are into the consumption of food. In fact it is very essential to human health. Look around you and you will find that there are an avalanche of restaurants that are saddled with catering to the food needs of people.

However, the food cart business is also gaining ore grounds as more and more people are making money from this trade. One thing is however sure, and that is that if you are able to draft a great business plan, you can be sure to work and run with it whilst building your business. Here below is a sample plan to work with;

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A Sample Food Cart Business Plan Template

1. industry overview.

The Food Trucks industry has skilled people and van be said to have witnesses a remarkable rise over the past five years, as consumers have increasingly favored unique, gourmet cuisine at budget-conscious prices.

Despite the efforts which the entrepreneurs in this field put into the trade, there is still a high competition and an unfavorable regulatory conditions in some cities in the united states of America that have limited the growth of industry vendors.

Nonetheless, the industry has overtaken the broader food-service sector over the period in terms of revenue growth. Research has shown that soon in 2023, favorable consumer trends will continue to support moderate revenue growth. However, the industry will need to work with community governments to resolve the numerous legal challenges to food cart operations.

The Food Carts industry is in the increasing phase of its life cycle. Nonetheless, growth has increased slightly over the past few years and revenue is still growing at a much faster rate than the larger food-service sector. In the past food carts have progressed better than their food-service counterparts, primarily due to the budget-friendly features of their products and the expanding style of consumers seeking new food concepts.

Besides, the industry continues to progress and new creations are still entering the industry with new concepts. Figures have it that by 2022, industry value added (IVA), which has its measure an industry’s contribution to GDP, is predictable and is likely to grow at an average annual rate of 6.4%.

2. Executive Summary

Buena Foods ® is a leading and standard food cart Company that will be based in Boston – Massachusetts, USA that covers a wide range of clients both individual and corporate clients.

We have been able to lease a standard corner piece facility that is centrally located in the heart of Boston and few minutes drive to Harvard University Community. We have put plans in place to also sell our franchise and offer consultancy services in line with our area of business.

Buena Foods® is established by the Massachusetts awarding winning food nutritionist and caterer – Andrew Hago – Hugo who has B.Sc. in Food Science Technology and a Master’s Degree in Business Administration (MBA) from Harvard Business School.

He also has a robust experience in the food business having worked both in the public sector and the private sector prior to starting his own business.

We are in the food cart Industry to favorably compete with other leading and brands in the industry. Our corporate business goal is to be among the top 10 food cart chain brand in the United States of America.

As a company, we are willing to go the extra mile to invest in some of the finest professionals we can find and also we have set plans in place to acquire the best of equipment when it comes to setting up a standard and first class food cart business.

When it comes to hygiene and proper packaging, we have put plans, process and structures in place that will ensure that we are always at the top of game when it comes to that. We have been able to secure permits from all relevant departments in Massachusetts.

Beyond every reasonable doubt, the demand for goo food isn’t going to plummet any time soon, which is why we have put plans in place to continue to explore all available market around the cities where we are going to be located and ensure that we create a wide range of distribution channels via franchising. With that, we know that we will be able to maximize profits in our business.

Our strongest selling point at Buena Foods ® is the unique taste of the different types of delicacies that we will make and sell. There is hardly any customer that will taste any of our meals who would not want to come back and make more purchase or order more– we take great delight in welcoming repeat customers over and over again.

Buena Foods ® will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our customers need precisely and completely whenever they patronize our products.

We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our customers.

Our plan is to position Buena Foods ® to become the leading brand in mobile food industry in the whole of Massachusetts, and also to be amongst the top 10 food cart brand in the United States of America within the first 10 years of starting our business.

This might look too tall a dream but we are optimistic that this will surely come to pass because we have done our research and feasibility studies and we are enthusiastic and confident that Boston – Massachusetts is the right place to launch this type of business before spreading to other cities all across The United States of America.

3. Our Products and Services

At Buena Foods ® we make a wide range of pizzas in terms of sizes and flavors et al; we prepare and serve our meals and other related items. We will also adopt full-service restaurants and quick-service style. As part our strategy to create multiple sources of income in line with our core business concept, we will run a consultancy service and trainings.

Our intention of starting Buena Foods ® is to make profits from the industry and we will do all that is permitted by the law in the US to achieve our aim and ambition. Here are some of our products and services;

• sell lunch (assorted meals)
• sell snacks
• sell assorted drinks (Soft Drinks, Wines, smoothie, and punch, Fruit Juice, amongst others)
• Sell franchise
• Training and consultancy services on mobile truck food business

4. Our Mission and Vision Statement

• To become the leading brand in mobile food cart business in Boston and the whole of United States of America.
• We are in the mobile food truck industry with the aim of constructing a brand that can readily meet the needs of our valued clients in places where they can hardly access standard cafeterias.
• And also to offer entrepreneurs the opportunity and training needed to successfully lunch their own mobile food truck business in other cities in the US.

Our Business Structure

Most people who go into the mobile foods business usually choose the business over the conventional restaurant business; this is because it is perhaps less expensive to manage especially when it comes to taking care of overhead and operational cost.

On the average, mobile food companies usually have 4 or 5 employees under their payroll. Because of the type of mobile food business brand that we intend building, we have been able to make provision for the following employees;

• Chief Operating Officer (Owner)
• Chef / Caterer
• Assistant Caterer

Office Administrator

5. Job Roles and Responsibilities

Chief Operating Officer (owner)

• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for the day to day running of the business
• Responsible for fixing prices
• Responsible for recruitment
• Responsible for payment of salaries
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Chef / Caterer /Cooks

• Responsible for preparing delicacies
• Makes lists and budget for kitchen supplies
• Oversees the entire kitchen staff
• Responsible for training new cooks
• Makes sure that the meals being whipped up tastes really good
• Kitchen Assistant / Utility Staff

Assistant the chef/ cook in the kitchen

• Ensures that all the needed cooking ingredients are in supply
• Runs errand for the chef / cook and every member of the workforce
• Ensures that the kitchen area of the truck is clean and hygienic at all times
• Responsible for washing cooking pots, utensil and dishes when necessary
• Assists in packaging food and snacks
• Responsible for moving packed foods from the kitchen to the cubicle / point of sale
• Ensures that various types of drinks are present in the fridge per time (get them replaced as soon as they are sold)
• Any other duty as assigned by the line manager
• Interfaces with our highly esteem customers
• Collects orders and issues foods as demanded by customers after payment
• Keeps proper records of daily sales and then reconcile with the cashier
• Responsible for manning the fridge and every stuffs that are up for sale
• Any other duty as assigned by the Chief Operating Officer
• Receives payments on behalf of the company (POS, cash, mobile money et al)
• Issues receipt to customers
• Prepares financial report at the end of every working week
• Handles all financial transaction on behalf of the company
• Responsible for driving the cart to sales venues and back to base
• Ensures that the cart is in top shape at all times
• Ensures that maintenance schedules for the cart are strictly followed
• Responsible for renewing the vehicle license, insurance and any other documentation for the vehicle as at when due
• Any other duty as assigned by the food cart manager
• Responsible for managing the daily activities of the back end office
• Prepares payroll for the organization
• Prepare monthly financial report for the organization
• Interfaces with vendors and third party suppliers ( drink suppliers, raw food suppliers and maintenance team et al)
• Responds to enquiries on behalf of the company
• Handles phone calls for the company
• Manage the company’s e-mail and website
• Interfaces with our bankers (lodgment of cash, checks and bank drafts et al)
• Responsible for payment of tax, levies and utility bills

6. SWOT Analysis

As a team together with our paid business consultants, we have been able to look both inward and outward, as well as critically assess ourselves and business ideas to know if we are truly ready to launch our mobile food truck business in Boston.

No doubt, we have a lot of factors working in our favor but at the same time we have some factors that we must contend with if we intend becoming the number one brand when it comes to mobile food cart business in Boston and the whole of North America. Below is a summary of the SWOT analysis that was conducted on behalf of Buena Foods® Mobile Food Company;

Aside from the trainings that have been acquired, as well as the hands on experience attained over the years prior to starting Buena Foods ® Company, our strength lies in our financial capacity and determination to succeed in the business at all cost. We have been able to acquire a brand new mobile food preparation vehicle (MFPV).

It has the capacity to meet the needs of well over 500 customers per day. Our strength also lies in the fact that we have relationship with brand experts who are working almost for free for us. With that, will be able to build our brand to a level where we can start selling franchises and offer trainings and consultancy services on mobile food Cart business.

The fact that we are planning to roll out our mobile cart business alongside other similar business offerings like training, consultancy services and sale of franchise could distract us from concentrating and channeling our energy in one direction. We are quite aware of that and we are working towards blocking any area that will sap our energy and make us under performed in our core business area – sale of foods and drinks from a mobile cart.

• Opportunities:

The opportunities that we stand to leverage on are much. The fact that we are not tied down to a location is indeed a good opportunity for us to grow our business to the level we want to grow it to. For example; we can afford to trade foods, snacks and drinks in more than two locations within a day. It is all about knowing when to arrive and leave for another location.

There is hardly any business venture that doesn’t face its own threat. Regarding mobile food cart business, one of the threat that we may likely face is; vehicular traffic in key cities.

Traffic can delay one and as a result of that one may get to the location where one intend selling the foods and drinks late- this could be when the lunch break is over (basically for organized events). Yet another threat is; the government policies, which could also pose a great threat to the mobile food cart industry.

7. MARKET ANALYSIS

• Market Trends

In this dispensation more than ever before, people no longer have sufficient time to do all they would want to do within the available 24 hours. Hence, the rise of fast food restaurants all over the cities. As such, mobile food cart business is another business that is designed to fit into a dispensation like ours. Part of the marketing and sales strategies that we shall adopt include but not limited to the following;

Submit proposals to event management companies to become their official mobile food vendor. Submit proposals to management of public facility (sport centers, beach and schools, et al) to become their official mobile food vendor. Send proposals to schools and corporate organizations to become their official mobile food vendor. Sponsor relevant events, such as cooking competitions, and cultural events, et al.

8. Our Target Market

When it comes to mobile food cart business, there are no restrictions to the market you can explore, as long as you are operating within the law of the state where you are conducting your business. We do not intend to place any limit to the scope of our target market and these are the places / locations where we intend operating our mobile food cart business with the aim of maximizing sales;

• Construction sites
• Tourism locations
• University Campuses
• Carnival ground
• Stadiums and sport centers
• Community Outdoor Events
• Blue Collar work locations
• Farmers Markets
• Industrial Parks
• Movie Recording Location
• Farmers Market
• Military Bases
• Office Complexes
• Mechanic Villages
• Open air shows and programs

When it comes to foods, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who eating out and of course those who would want to try it out. In view of that, we have conducted our market research and we have ideas of what our target market would be expecting from us. These are the groups of people we intend marketing our pizzas to;

• Corporate Executives
• Government Officials
• Business People
• Celebrities
• Military Men and Women
• Sports Men and Women
• Everyone who resides in our target locations.

Our Competitive Advantage

Loads of factors count towards our advantage as a mobile food cart business operator. The fact that we have the ability to determine where we want to sell our foods and drinks per time gives us the leverage to make as much sales as we can make in a day.

It has been observed that any organization that offers training and consultancy services is always amongst the leaders in their industry and we at Buena Foods Company are set to tow along this part because we want to become experts and amongst the leading mobile food truck company in the whole of the US.

We have put plans in place to facilitate continuous improvement on what we do, because we know that is one of the factors that will be give us competitive advantage in the market place. Another competitive advantage that we have as a company is the size and condition of or food truck.

We have been able to purchase a brand new retrofitted food cart with the entire required gadget. It is big enough to accommodate all that we would need for the business, we are going to spend less on maintenance and we can easily obtain approval from the appropriate authorities.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Businesses that do pretty well are businesses that have more than one source where they generate revenue. It is risky to run a business where you can only generate income from just one source. The truth is that if anything goes wrong with the source of income, the business might likely collapse.

This is why we worked hard to provide you with a sample food truck marketing plan template to help you through the process. The big picture we have for Buena Foods ® Mobile Food Company is to generate income from the following sources;

• Sales of launch (meals)
• Sales of Snacks
• Offering training services
• Offering consultancy services in line with our business goal
• Sales of drinks
• Sales of our franchise

10. Sales Forecast

It is important to state that our sales forecast is based on the data gathered during our feasibility studies and also assumptions. This is for sales projections based on what we saw.

• 1000 lunches per day (on average), 12 months per year
• $20 per person on the average
• 1500 snacks per day, 12 months per year
• $5 per person on the average
• Sales of Drinks and Water et al:

On the average over 80% of people who purchase lunch (meal) and snacks would normally consume drinks as well.

• $1.5 for a bottle of coke

This equates to 2000 drinks in a day when you multiply 2000 by 1.5 we will make an estimate of $3000 daily from the sale of drinks alone

• Marketing Strategy and Sales Strategy

Before choosing a location to launch Buena Foods® and also the types and the types of foods we prepare, we conducted a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market in the cities where we intend positioning our business.

We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time and also for our products to favorable compete with other leading food cart brands in Boston – Massachusetts and the whole of the United States of America.

We hired experts who have good understanding of the industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market Boston – Massachusetts and throughout the United States of America where we intend selling our franchise.

In other to continue to be in business and grow, we must continue to sell our products to the available market which is why we will go all out to empower or sales and marketing team to deliver our corporate sales goals. In summary, Buena Foods ® will adopt the following sales and marketing approach to sell our pizzas and soft drinks;

• Introduce our food brand by sending introductory letters to residence, merchants and other stakeholders both in Boston – Massachusetts and in other cities in the United States of America
• Open our food cart business with a party and free meals so as to capture the attention of residence who are our first targets
• Engage in road show in targeted communities from time to time to sell our products
• Advertise our products in community based newspapers, local TV and radio stations
• List our business and products on yellow pages ads (local directories)
• Leverage on the internet to promote our mobile food brands
• Engage in direct marketing and sales
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Despite the fact that our food cart company is a standard one with a wide range of flavors and products that can favorably compete with other leading brands in the United States, we will still go ahead to intensify publicity for all our products and brand. We are going to explore all available means to promote our services ®

Buena Foods ® has a long term plan of opening outlets in various locations all around the United States of America and also to sell our franchise which is why we will purposefully build our brand to be well accepted in Boston – Massachusetts before venturing out to other cities in the United States of America.

As a matter of fact, our publicity and advertising strategy is not solely for selling our products but to also effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Buena Foods

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
• Install our Bill Boards on strategic locations all around major cities in the United States of America
• Engage in road show from time to time in targeted communities
• Distribute our fliers and handbills in target areas
• Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing our products.
• Ensure that all our staff members wear our customized clothes, and all our official cars and distribution vans are customized and well branded.

12. Our Pricing Strategy

Generally food cart business sells meals, and snacks at a cheaper rate when compared to the conventional fixed – restaurant. We don’t have any plans to sell our foods, snacks and drinks beyond the prices that is obtainable in the industry.

That does not mean that we will fall below standard when it comes to the quality of our food. As a matter of fact, one of our strongest selling points will be the taste and perhaps the quantity of our foods when compared to our competitors.

From our market survey and feasibility studies, we are sure going to make reasonable profits even when we sell a little below the average price for package foods and snacks in the food cart industry, especially if the location we intend selling our foods and drinks is not far away from our base.

• Payment Options

At Biena Foods ®, our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;

• Payment by cash
• Payment via Point of Sale (POS) Machine
• Payment via online bank transfer (online payment portal)
• Payment via Mobile money

In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any itches.

13. Startup Expenditure (Budget)

When it comes to starting a standard food cart business, one is expected to spend the bulk of the start – up capital on equipping for the business. Aside from that, you are not expected to spend much except for purchasing distribution vans, paying of your employees and utility bills.

This is the key areas where we will spend our start – up capital;

• The Total Fee for Registering the Business in Boston – Massachusetts – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
• Marketing promotion expenses for the grand opening of Buena Food Cart Business Company®; in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
• Cost for hiring Business Consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
• Cost for construction of a standard bakery – $100,000.
• Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
• The cost for Start-up inventory (raw materials and packaging materials et al) – $80,000
• Storage hardware (bins, rack, shelves, food case) – $3,720
• The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
• Cost for yogurt making equipment – $20,000
• Cost for store equipment (cash register, security, ventilation, signage) – $13,750
• Cost of purchase of distribution vans – $50,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
• The cost of Launching a Website – $600
• The cost for our opening party – $10,000
• Miscellaneous – $10,000

We would need an estimate of $500,000 to successfully set up our Food Cart delivery company in Boston – Massachusetts. Please note that this amount includes the salaries of the entire staff member for the first month of operation.

Generating Funding / Startup Capital for Buena Food Cart Business®

Buena Food Cart® is a family business that is owned and financed by Mr. Andrew Hago – and Family. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sell of stocks
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $100,000 (Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $400,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If any of these factors is missing from a business (company), then it won’t be too long before the business close shop.

Buena Foods ® will ensure that all the factors listed above are reinforced on a regular basis, we will continue to improvise with our products, come up with pleasant and acceptable flavors and also we will engage in continuous capacity building of our workforce. As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more.

We will make sure that the right foundation, structures and processes are put in place to ensure that staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner. We have the plans of

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and construction of standard Bakery: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress
• Purchase of delivery vans: Completed

• Beauty Products
• Clothing & Apparel
• Food Business
• Laundry Shop
• Water Refilling Station
• Business Registration
• Marketing Strategy
• Human Resources
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• Small Business Ideas in the Philippines (2024) Business Ideas

Food on Wheels: How to Start a Food Truck Business Philippines

By  Yesh Quijano     November 11, 2023       min read

Table of Contents

Key Takeaways:

• Understand the local market and select a unique food concept.
• Plan a budget for truck, equipment, licenses, inventory, and marketing.
• Ensure staff hold Health Certificates and comply with food safety regulations.
• Craft a strategic menu, manage the supply chain, and leverage diverse marketing channels.

Ever thought of converting your passion for food into a thriving business in the Philippines?

Food trucks are increasingly taking center stage in the culinary scene, offering innovative cuisines on the go. Embarking on a food truck venture requires a thorough understanding of the local market.

How do you start the best food truck business Philippines has to offer? What distinguishes a successful food truck from an unsuccessful one?

This article will guide you through creating a food truck business in the Philippines, equipping you with insights to thrive in this exciting industry.

Ready to turn the key and get your wheels, and company, rolling? Let’s dive in!

Choose Your Food Concept

A winning food truck business isn’t just about serving food – it’s about serving a unique and appealing food concept. Your food concept is the heart of your business. Your unique selling proposition sets you apart in a market teeming with competition.

Whether it’s a fusion of Filipino and Mediterranean cuisine or a truck dedicated to vegan delights, your food concept can be the magnet that draws customers in. Remember, it’s not just a meal you’re offering, it’s an experience. So, how unique is your food concept? What makes it stand out? These are questions worth pondering.

Factors to consider: market trends, personal passion, and practicality

When choosing your food concept, it’s crucial to balance three key elements: market trends, personal passion, and practicality.

• First, understanding market trends is essential. Are Filipino foodies obsessed with Korean street food, or is there a growing demand for healthy, organic options? Keeping a finger on the market’s pulse can guide you toward a concept that hits the sweet spot of need.
• Second, don’t forget your passion. Running a food truck is hard work, and your passion will keep you going when the going gets tough. Do you love creating vegan masterpieces or crafting gourmet burgers? That passion will shine through in your food and service, attracting customers who share your enthusiasm.
• Finally, practicality should be a key consideration. Will your chosen food concept work well in a food truck environment? Can you source the ingredients locally? Will preparation and cooking times align with the fast-paced food truck setting? Answering these questions can save you a lot of trouble down the line.

Finding the perfect blend of these factors can lead you to a food concept that fills bellies and wins hearts.

Craft Your Business Plan

Venturing into a mobile food business without a solid business roadmap is like setting sail without a compass – you’ll likely get lost in the waves of competition and market unpredictability. Your operational plan serves as your guiding star, illuminating your path and keeping your mobile eatery venture on course.

A well-crafted operational plan sets clear goals, identifies potential challenges, and plots practical strategies to achieve success. It helps you foresee cash flow, budget needs, operational requirements, and marketing strategies. Beyond that, it’s a tangible document that potential investors, banks, or partners can see, providing them confidence in your vision and the practicality of your venture.

In essence, a business plan isn’t just a requirement but a vital tool for the sustainability and growth of your business in the Philippines. Are you ready to map out your journey to success?

What to Include in the Business Plan

Your business plan should be a comprehensive document that covers key aspects of your food truck venture. Here are the essentials:

• Food Concept: Outline your unique food concept. What kind of cuisine or food items will you be offering? How does it stand out from others in the market?
• Target Market: Define your ideal customers. Are you targeting young professionals, students, health-conscious individuals, or a mix of different demographics? Understanding your target market will guide many decisions, from menu creation to marketing strategies.
• Menu: Describe what’s on your menu. Be detailed – include the food items, portions, ingredients, and unique selling points. A well-thought-out menu can entice potential investors and customers alike.
• Operating Locations: Identify your preferred operating locations. Are you planning to park in bustling city centers, near business parks, or at local festivals and events? Your site can significantly impact foot traffic and sales.
• Startup Costs: List your startup costs. Include everything from the cost of the truck, kitchen equipment, inventory, permits, licenses, and insurance. Don’t forget to factor in the price of branding and marketing your mobile eatery.
• Forecasted Revenue: Provide an estimate of your expected earnings. Consider your pricing, estimated foot traffic, and operating hours. Including a forecasted revenue can help you and potential investors understand when you might wish to break even and start making a profit.

Your business plan is the blueprint of your venture. Making it as detailed and realistic as possible will provide a robust foundation for your mobile food business. Are you ready to put pen to paper?

Set and Plan Your Budget

One of the most crucial aspects of starting a food truck business in the Philippines is understanding and planning your budget. There’s more to it than buying a truck and stocking up on ingredients. Here’s a breakdown of the significant costs you need to consider:

• Truck: The truck itself is likely your most significant expense. Buying a new or second-hand truck can cost significantly, depending on the size and condition. If you decide to lease, factor in those monthly payments.
• Customization: Turning a truck into a food truck requires customization. This includes installing kitchen appliances, setting up the serving window, and possibly adding tables or awnings.
• Kitchen Equipment: Equipping your kitchen can be a sizable investment from grills and ovens to refrigerators and utensils.
• Inventory: Your startup budget should include the cost of your initial list. This means food items, cooking supplies, packaging materials, and customer utensils.
• Licenses and Permits: Operating a food truck requires various licenses and permits. These can include a business permit, sanitation permit, and potentially more depending on local regulations.
• Insurance: To protect your business, insurance is a must. This can include coverage for the vehicle, business liabilities, and workers’ compensation.
• Marketing: From painting your logo on the truck to launching a website or social media campaigns, getting the word out about your business is another cost to consider.

When setting your budget, remember to factor in these significant costs. Your goal is not just to start your food on wheels but to keep it running successfully; having a realistic budget is a big part of that journey. Ready to crunch the numbers?

Source Your Food Truck

Once you have your budget and business plan, it’s time to source your food on wheels. There are several ways to go about this, and each has its pros and cons:

• Buying New: Purchasing a brand-new food truck ensures you start with a top-ill vehicle with no hidden issues. You can also customize it to your needs right from the start. The downside? It’s the most expensive option.
• RECOMMENDED! Buying Second-Hand: Buying a used food truck can be a cost-effective way to get started. You might even find one already outfitted for food service if you’re lucky. However, used trucks can come with wear and tear, so it’s important to thoroughly inspect the vehicle and perhaps budget for repairs or upgrades.
• Leasing: If upfront costs are a concern, leasing might be a good option. It requires less money upfront and often includes maintenance. Remember that you won’t own the truck and must comply with the lease terms.

When choosing the right option for your mobile food business in the Philippines, consider your budget, risk tolerance, and long-term plans. Each option can be a valid path to your mobile eatery – it’s all about finding what suits your situation best. Ready to find your perfect food truck?

Name Registration, Licenses and Permits

Starting a Food on wheels business in the Philippines requires several licenses and permits. Securing these before you start serving customers is crucial to operating legally. Here’s what you’ll need:

• Business Name Registration: Register your unique business name with the DTI for sole proprietorships or the SEC for corporations or partnerships. This involves application, fees, and name uniqueness checks.
• Business Permit: This permit is issued by the local government unit (LGU) where your business is located. The requirements can vary, so checking with your LGU is essential. Usually, you’ll need to submit business documents, pay fees, and possibly pass an inspection.
• Barangay Clearance: Before getting a business permit, you must usually secure a Barangay Clearance. This is proof that your business complies with the requirements of the local barangay.
• Bureau of Internal Revenue (BIR) Registration: To comply with tax laws, your business needs to be registered with the BIR . After registering, you’ll get a Certificate of Registration, an Authority to Print invoices and receipts, and a set of BIR books.
• Sanitary Permit: Issued by the local health office, a Sanitary Permit ensures your mobile eatery maintains sanitary conditions and follows food safety practices. You’ll likely need to undergo an inspection to secure this permit.
• Fire Safety Inspection Certificate: This proves your business complies with fire safety regulations. The Bureau of Fire Protection issues the certificate.
• Environmental Compliance Certificate: If required by your LGU, this certificate proves that your Food on wheels business operations won’t harm the environment.

These are just some of the primary licenses and permits you’ll need to start a food truck business in the Philippines. The process may seem daunting but don’t be discouraged. Each permit you secure brings you closer to launching your food truck dream. Ready to navigate the regulatory path?

Ensure All Staff Hold Health Certificates

A critical aspect of operating a food truck business in the Philippines is ensuring all staff hold valid Health Certificates. This proves that your team has undergone and passed the necessary medical and health examinations, ensuring they can handle food. Here’s how you can secure these certificates:

• Schedule a Health Check-Up: Arrange for your staff to undergo a medical examination. This is usually conducted by the local health office or a Department of Health-accredited clinic or hospital.
• Complete the Examination: Each team member will undergo a series of tests. These typically include a physical examination, chest X-ray, and tests for infectious diseases.
• Secure the Health Certificate: Once your staff passes the tests, they’ll receive their Health Certificates. This document should be kept on file and ready for inspection.
• Renew Annually: Health Certificates are typically valid for one year. Plan for your team to renew their certificates annually to comply with regulations.

Securing Health Certificates keeps you compliant with the law and ensures your food’s safety and your customer’s well-being. It’s an essential step in maintaining the integrity and reputation of your mobile eatery.

Menu Development

Developing a menu for your food on wheels business in the Philippines is not as simple as listing your favorite dishes. It requires careful planning and a strategic approach. The menu needs to align with your food concept, and here’s how you can achieve this:

• Understand Your Concept: Review your food concept. Are you offering Mexican cuisine? Are you a dessert truck specializing in unique ice cream flavors? Your idea will guide your menu development.
• Identify Key Ingredients: List the ingredients that resonate with your food concept. These should form the basis of your dishes. For instance, if your mobile eatery serves Japanese cuisine, ingredients like sushi rice, nori, wasabi, and soy sauce will likely be prominently on your menu.
• Create Signature Dishes: Create a few dishes that showcase the best of your food concept. These should be unique to your food truck and serve as your primary draw.
• Balance Your Menu: Ensure there’s a balance in your menu. Have a variety of options, but don’t overcomplicate them. A concise, well-curated menu often works best for food trucks.
• Test and Refine: Once you’ve developed your menu, test it. Gather feedback and make refinements. Remember, your menu isn’t set in stone. It can evolve as you better understand your customers and refine your concept.

Developing a menu that aligns with your food concept can set your company apart. It’s a process of trial and error, but getting it right can be a key to your business’s success.

Market Your Food on Wheels Business

A strong marketing plan is vital for your food on wheels business in the Philippines. It boosts visibility, attracts customers, and sets you apart. With a clear goal, you focus your efforts, maximize your budget, and reach the right people. Plus, it allows you to measure your success and adjust as needed.

Marketing a food truck isn’t one-size-fits-all. Consider all options:

Traditional Advertising: Flyers, banners, and local media ads can work well, especially for reaching a local, older demographic.

Social Media Marketing: Platforms like Facebook, Instagram, and Twitter are excellent for reaching a more comprehensive, younger audience. Share photos, post your location, and engage with your customers.

Local Events: Participating in food festivals, farmers’ markets, and local events can increase visibility and build a solid local presence.

Food Delivery Apps: With the rise of food delivery apps, consider listing your food truck. It’s a great way to reach customers who prefer eating at home.

In marketing, there’s no magic formula. It’s about finding what works for your mobile eatery business, then doing it well. Ready to build a strong marketing plan for your food truck business?

Ensure Compliance with Local Food Safety Regulations

Navigating the regulatory landscape of the mobile eatery business in the Philippines is crucial. Here’s what you need to know:

Health Regulations: The Department of Health (DOH) lays out strict guidelines for food businesses to ensure the safety and health of customers. These include regulations on food handling, waste management, and sanitary conditions.

Environmental Regulations: You also need to comply with environmental regulations. These typically involve waste management and noise control.

Zoning Laws: These laws determine where you can park your mobile eatery. You may need to apply for special permits depending on your preferred location.

Final Thoughts

Starting a food truck business in the Philippines isn’t a walk in the park. It takes passion, hard work, careful planning, and a fair share of patience.

But the joy of serving your signature dishes on wheels, of creating something truly your own, is worth it.

So go ahead, ignite that entrepreneurial spirit, and let’s fill the streets of the Philippines with fantastic food trucks.

Your success story is just a food truck away!

About the author 

Yesh Quijano

Yesh Quijano is an entrepreneur and digital marketer who's been in the game for over 11 years. He started several businesses and helped countless others reach new heights. His goal is to make digital marketing for SMEs simple, accessible, and effective. When he's not working, you can find him cuddling with his two cats.

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• Tue. Sep 10th, 2024

Business Diary Philippines

Small business startup ideas and money making guide

How to Start Your Own Food Cart Business

Starting a food cart business is an ideal start up venture for young entrepreneurs because it doesn’t require a big capital. However, in order for your food cart business to be successful you need to have a good product that people will always want, a good location and you have to market it well.

But before starting a food cart business, here are 10 things you should consider according to Richard Sanz, director of the Association of Filipino Franchisers Inc. (Affi).

1. You should have a good concept. Sanz says the concept should always match the product you are selling. So, if the product is Italian, everything should be consistently Italian themed. If the product is Filipino, the concept should match.

2. Focus on the product first. “Even if the concept is good, but the product is bad, people will just avail at the start to try it out but they will not be coming back,” Sanz said. Making sure that you have a consistently good product will ensure the long term viability of the business.

3. Get a good starting location. This is one of the single most important factors of a food cart business. Make sure that the site is very visible with very high foot traffic. “Do your research, try to gauge the amount of people passing through a particular location, and also make sure that these people suit your target market for your product,” Sanz advises.

4. Come up with a good stall design to attract customers. As a marketing tool, having a good storefront is critical for any startup. “Ask yourself, how will I differentiate myself from competitors? To do this, you will probably need to hire a good designer and architect or visit other countries to get a good idea. Trade books and magazines could also help you decide what design will work for your line of business,” Sanz said.

5. Have an efficient operating system. Sanz said it is very important to install a good operating system in your business, especially if you’re a startup with limited resources. “Here is where the stall operation will revolve. This is important because in cart business, there is limited space. You should be able to store your product and prepare them with that limited space,” he said.

6. Don’t bank on credit to bankroll your business. Obtaining the needed capital for your business is a necessary step, but Sanz counsels it would be wise to use your own money, so in case the business doesn’t do well, no creditor will go after you. “The rule is “you only invest what you are prepared to lose,” he said.

7. Be a stickler for service. A food business is very dependent on a good reputation for success, maintaining a good service level, efficient systems, and clean products and workstations will go a long way in helping your longevity and increase help you build credibility.

8. Pay your suppliers, employees, and lessor (rent) on time to ensure continuity of operations. There’s nothing more annoying than having to stop operations for lack of supplies, place of business, or both. To avoid this, Sanz says entrepreneurs should set up an active payment system that is both efficient and timely. “Suppliers are the lifeblood of your company, and if they stop because of non payment, you will lose a lot money. Also, make sure to pay the right wages and give mandatory benefits to your employees, because a happy worker is a productive worker,” he said.

9. Secure all necessary permits before starting operations. Before the first day of operations, make sure to register your business with DTI, IPO, BIR, and get the necessary business permits in the barangay and municipal/city hall (mayor’s permit). Doing so will save you the hassle of processing it while your business is already under way.

10. Choose the right franchise. If you opt to get a franchise instead of starting your own business, make sure that the franchisor is a member of good standing with any (or both) of the two franchise associations in the Philippines, AFFI (Association of Filipino Franchisers, Inc) and PFA (Philippine Franchise Association). Do background checks, talk with franchisees, and consult a lawyer before signing the franchise agreement.

“People should be very careful before getting a franchise for food carts because there are already fly-by-night franchisers that are taking advantage of this to enrich themselves illegally. This is why the membership with the Affi and PFA is important because these two groups screen their members properly,” Sanz said.

Here are 4 things to know if you want to put a food cart business:

1. You can start a food cart business with a capital of P30,000 to P300,000

– With P30,000 starting capital you can have the following: a. Wooden cart with a signage – P10,000 – P12,000 b. Fryers and grillers – P10,000 c. Products (fishballs and squidballs, etc) – P10,000

2. Food carts are manageable and portable

– Food carts are easy to set up, requires low capital and is cheaper than putting up a restaurant.

3. With a simple 4 to 10 product menu, you can start up your own food cart business.

– In putting up a food cart business, the first thing to consider is the product you will be selling. It could be an exceptional product, a family recipe not known to many, an innovation or variation of an existing product, or a simple and affordable product.

– Your choice of product will also determine the equipment you need.

4. If the business does not work out in one location, you can easily move it to a new and better location.

– Best food cart locations are in malls and train stations, schools, terminals, and office areas. – Choose a location depending on your product and income. – Malls and train stations are expensive are expensive locations so make sure that you have enough budget for the space rentals.

Want to own your dream food cart business? Start today with the help of an  authorised money lender .

Click here on How to Get Business Permits and Licenses .

Sources: Sam’s Everything On Stick (453-5239-40), Christine Magno – Owner FoodBiz (09175652113) – Hanep Buhay, gmanews.tv, entrepreneur.com.ph

Related posts:

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10 best food business ideas with sample recipes, the ultimate automatic milk frother for coffee enthusiasts—dreo baristamaker, sizzling success: launching a beef pares overload business, 22 thoughts on “how to start your own food cart business”.

Those who wants foodcart, kiosk and in-line fabricator. please visit our fb page Builder’s Choice Concept.

how to apply end how much it cost.

what is the maximum number of employees will we hire in a food cart franchise business? Do you have a basis on this number?

hi im interested, but im 46 yo already

Having small capital should not discourage the entrepreneurial spirit of Filipinos. Food is an essential and food carts attract foot traffic everywhere. Juan just need to look for a good location and a trustworthy franchising company to partner with.

If you are interested on starting your very own Food Cart Franchise business.

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If your location is in Metro Manila or nearby areas, we do orientation by schedule in our main office in Greenhills, San Juan by texting 0917-909-1116 for interested franchisee.

For OFWs and outside the Metro Manila areas, we do Skype presentation by schedule for interested franchisee.

Please Like our FB Page on this link bit.ly/foodcartforall or visit http://foodcartforall.com for more information and we will be more than happy to assist you.

I am interested,I wanna no how to apply,pls pm me, thanks..

Hello mam pwde magapply?

That was pretty interesting to know. Anyway, for those poeple who are interested, I have a food cart business for more details please visit this url : http://www.foodcartbusiness.net/

thank you for the helpful tips and I have a foodcart bussiness for more detail visit this link http://www.foodcartbusiness.net/

application process please

pano po mag apply?

Pano mag aaply dto? Add me nman or call me 09466976370

te how po to apply? im interested po

Franchise food cart business now. 52,500 lang you can start your business. Just call 093223140269/09358365517

how to apply?

I would recommend starting your online business at home, even while you have your employment. There are tons of ideas out there, which one can capitalize. Everything is actually going online. I am expecting that Philippines will also follow the trend of 1st world countries, wherein most shopping is now done via online. I do have an online e-commerce website myself and leverages through online free classified ads such as www.mybenta.com, OLX and AYOS.

Heirs Salvaña i messaged you on facebook. please check "other folders" in your inbox. 🙂

im interested..how to apply?

Junna Otayde Reyna i messaged you on facebook. please check "other folders" in your inbox. 🙂

food cart business is a good source income of many filipinos here in our country. . .it’s a good business

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Connecting your passion with your purpose

How to Start a Food Cart Business in the Philippines

Table of Contents

Food-based businesses are one of the most lucrative ventures that you can undertake.

In the Philippine market specifically, food cart businesses have emerged to be an extremely profitable segment due to increasing demand for on-the go and cheap food. Its popularity is evident. Just go to malls and foodcourts in Manila and you’d see hundreds of food carts lined up in every floor. You’d also see variety of them in LRT or MRT stations, school kiosks and even in the streets! With its popularity as an “evergreen” niche, comes with a fiercely competitive market. It’s definitely not a walk in the park if you do not have prior experience in running a food business or if you’re starting out with a limited capital. Not to scare you off or anything, but the real truth is that it’s an extremely cut-throat business. Becoming a franchisee of a well-established food-cart brand can also be very risky. But while it’s also true that the market is also very saturated, there is still a massive opportunity for entrepreneurs in this category. To help you out, here are some tips on how to start a food cart business in the Philippines.

1. Make a business plan

Every business should have a business plan, and I can’t stress the importance of this enough. Most “wantrepreneurs” just dive in straight ahead without proper planning. Thinking of a product or food offering simply isn’t enough. You’d have to take in consideration the following factors:

• Feasibility of the business plan Feasibility takes into consideration all variables, resources and constraints needed to start your business. These include factors like budget, cash flow, deadlines, suppliers, and ability to scale. List down your costs (which includes initial inventory and equipment). Check your starting capital and liquidity and see if it’s enough to cover your costs. How fast will you be able to recuperate your initial capital? What is the return on investment? What are your deadlines? Will you be able execute all those tasks alone or do you need to hire staff for daily operations of your business? Do you have a capital to pay for the salaries of your team? etc. To take the franchising route? or to build a brand? If you’re planning on becoming a FRANCHISEE of an already established food-cart brand or business, take into account all the possible risks associated with it. Initially, the franchisor will guide you along the way and give you a blueprint of how to run the food cart business. But, it comes with a relatively high cost. Some franchisors take a percentage of your monthly profit. Do a cost-benefit analysis for a one (1) year period, two (2) year period, and so on. Will it be more profitable in the long-term? What is the ROI for the franchising model?
• Scaleability of the business Is your food cart business scaleable? And by scaleability we mean opportunities for expansion. Will your budget, cash flow and liquidity be able to handle an increase in demand? Can you replicate the business to other locations as well?
• Mission and Vision What is the purpose of starting a food cart business? How do see your food cart business in the next 5 years? What will be the steps that you’d have to undertake in order to achieve that vision?

2. Conduct a proper market research

Conducting a proper market research ensures that your product offering is fit for your target demographic. It should be according to their tastes, preference, and budget point. After all, the business is not about you- it’s about your customers. Segment the population according to demographics like age, education, income and mobility. Doing this will help you target your customers more accurately. For example, if you’re planning to set-up your food-cart business along the LRT Recto 2 station. Think of the possible target demographic in that area. This demographic could be ages 18-65, middle income earners, students along the university belt (U.E, CEU, UST, Arellano) going to the Divisoria area to Quiapo Manila. They’re on the go and would like a cheap and quick fix for their hunger. They have limited disposable incomes and probably won’t spend more than 100 pesos in kiosks. Determine how fast they want their food to be served. If your customers are on-the go, they wouldn’t want to stand there in minutes just to wait. Even if your food-cart business is supposedly a miniature fast-food style of business on steroids, you’d still have to take into account the overall ease and experience of your customers.

3. Pick your food offering according to your demographic’s tastes

Once you’ve determined your target demographic’s tastes, preferences and budget. Make a list of potential food offerings that you’d want to include in your food-cart. With the process of elimination, choose the products that are the most feasible, least costly to procure, easiest to make, and the most delicious for your customers. Remember, food-carts have one (1) specialty. You have to be the to-go to place or the “first-in mind” brand for a quick fix. As an example, the most popular food cart businesses out there are siomai kiosks, shawarma food-carts, hong-kong noodle kiosks, etc. They’re known for one specific food. The more products you offer, the more complicated and more time consuming it will be to operate as well. Instead of offering different varieties of food, you can just opt to offer complimentary food and beverages. Think of budget meals, or buy one take one offerings.

4. Choose a high-traffic location

In the food-cart business (and as with most brick and mortar) stores, location is everything! Even if you make the most delicious food offerings out there, still, the primary factor that can make or break your food-cart business is location. You’ll only succeed when your food-cart is located in a highly visible , easily accessibly and high foot traffic area . You are not a restaurant where your customers will opt for a full-dining experience. Instead, your demographic is most likely seeking for a quick-fix for their hunger, so they won’t spend minutes of their waking life looking for your kiosk. Food-cart businesses also leverage on their customer’s impulsivity. And being located in a highly visible and accessible area will help you gain more customers that had just seen your cart in first glance.

5. Get a business permit

Before you’d be allowed to operate your food-cart business, you are required to register your business with the DTI and you’d have to get a permit from the mayor’s office in the city hall where your business will be located. You’ll also need a TIN from the BIR and you’ll have to show a lease contract. Pooling all the necessary requirements and documents aside from the actual application process can take a while. Expect long lines when going to government offices. Bring patience. You’d need it the most.

6. Make sure that your food-cart stands out

If you didn’t choose the franchising route, you’ll have more flexibility when it comes to the design and branding of your food-cart business. It’ll take a more considerable time of planning, however, because you’d have to take into account the “brand image” that you want your customers to perceive. It’s always best to choose bright and colorful logos, slogans and color schemes for your food cart business. Colors like yellow and red conjure up excitement and impulsivity from your customers and I think it’s ideal for a food-cart business.

You want your food-cart to stand out amongst the competition, and your menu should be very visible as well. Placing a huge tarpaulin that lists all your products in front of your food cart also helps because your customers will be able to see it even from meters away.

7. Market your food-cart business

If you’re just starting out, it’s incredibly important to do marketing for your business (or for any business, really). Treat your food-cart business as a brand. A brand that is valuable and grows in popularity in the long-term. You don’t want to be just a “siomai house”, you’d want it to become an identifiable brand that you can scale and replicate in other locations as well. Some marketing strategies to help get the word out about your business are:

• distributing flyers if you’re starting out helps.
• making social media fan pages like facebook fanpage, instagram fan page, or even a youtube account
• join trade fairs and distribute samples of your products
• make your product offerings available in online delivery platforms like Grab and Foodpanda

8. Be a hands-on entrepreneur

The success of your food-cart relies heavily on your personnel. They’d be the main point of contact with your customer and your staff’s work ethic will greatly affect your customer’s experience with your brand. If your staff isn’t motivated, they’d work slowly, causing your customers to wait. I’ve seen in happen to a lot of food-cart businesses. The food is good but the staff isn’t approachable, the waiting time is long, and there’s a ridiculously long line. Yikes. It’s a recipe for disaster. Be a hands-on entrepreneur to solve this problem. And by hands-on, I didn’t mean that you should run your business 24/7. By hands-on, I meant, you should actively train and educate your staff about customer experience, food preparation, proper handling of food, hygiene and sanitation. Always visit your store and monitor the inventory levels yourself. Check for customer reviews in your facebook pages. Incentivize employees that work well in order to motivate them to work harder.

Do you have any questions? Feel free to write a comment down below! Thank you.

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10 Tips for Starting a Food Cart Business in the Philippines

Updated: March 13, 2024

Among all franchises in the Philippines, the food cart is probably the most popular. Aside from being affordable, finding your target market is relatively easier with a food business.

If you’re looking for a franchise, there are many food cart businesses to choose from. However, setting up your own food stall isn’t that complicated, either.

Below are ten tips to remember when starting a food cart business. I hope this quick guide will help you achieve success as a food entrepreneur.

1. To franchise or start your own?

Before anything else, you should decide whether to get a franchise or start your own food cart business. There’s no better choice, and it all depends on your skills and resources.

Franchising will save you time in planning and execution, but it will cost much more. Also, you’ll have less control over the business and will need to follow the terms of the franchisor.

It’s more affordable to start your own business, but you’ll need to do everything — think of a business name, design your logo, find suppliers, and many other tasks.

2. Write a business plan.

A business plan is your blueprint for success. Writing one allows you to run your business on paper and helps you visualize all the tasks you’ll need to execute.

Moreover, a comprehensive business plan will be useful if you need to find partners or investors for your venture. Having one gives an impression that you’re committed to succeed.

3. Build on one product.

A food cart business isn’t a restaurant that can offer a variety of meals, so don’t be one. All successful food carts focus on only one product. Just think about it — french fries, siomai, fruit shakes, nachos, waffles, etc.

You can innovate and offer something new or compete in what’s currently popular or an emerging trend. Either way, also make sure that you’ll have the resources to manufacture your product by volume.

4. Choose a good location.

Go where your target customers are. Food cart businesses are best inside malls, near office establishments, adjacent to transportation terminals, and beside colleges or universities.

Moreover, assess the area’s security and accessibility. It is recommended that you observe your planned location for several hours on different days before pursuing it.

5. Ensure proper food sanitation.

Be meticulous about your food preparation and handling. Ensure proper sanitation in all steps. Invest in quality containers and packaging. Be strict with the expiration dates of your ingredients.

In today’s age of social media, you don’t want people talking about how unclean your food is or how unsanitary your food cart is. Additionally, you can be held liable if someone gets sick from eating your products.

6. Develop eye-catching food cart design.

Colorful and well-designed food carts can easily attract customers. Use vivid hues of yellow, red, or orange. Make your logo recognizable. Make your text and menu display simple and easy to read.

Draw a mock-up of your food cart and show it to friends. Observe their first impressions, then ask for feedback and suggestions on how you can improve them.

7. Excel at customer service.

You are not only selling food but also providing a service to your customers. Teach your staff to be warm and friendly and to always serve with a smile.

People often become impatient and ill-tempered when they’re hungry. That’s why it’s important to train your crew on how to handle difficult clients.

8. Be strategic with pricing.

Sell at a price to make reasonable profits. Make sure that your prices are at par with competitors’. Lastly, assess whether your prices are affordable to your target customers.

There is no straightforward formula for pricing. It’s really a matter of finding the balance between affordability, competitiveness, and profit and then adjusting accordingly.

9. Register your business.

A food cart business is exposed to the public. Business inspectors will most likely visit your store regularly, so it’s important to register your business and operate legally.

Moreover, apply for all necessary permits. In addition to the usual licenses from the DTI, barangay, city hall, and BIR, you should also have BFAD approval on your products, health and sanitary permits, and many others.

10. Be your number one customer.

Don’t sell food that you’re not even a fan of. When milk tea became a craze, I knew someone who ventured into it even though he didn’t drink milk tea. That business didn’t last long.

By being your number one customer, you’ll know exactly what makes your product good. You’ll also have insights on how to sell and market it properly. And more importantly, it’ll be easier for you to innovate on the food.

Running a food cart business can be challenging. Success requires careful planning, so never rush into starting one to avoid costly mistakes.

Getting a food cart franchise is a good option for first-time entrepreneurs. It’s a great training ground that will familiarize you with the food industry.

But strive to hopefully someday start your own. By doing so, you’ll have the opportunity to offer your food cart business as a franchise and compound your income passively in the future.

What to do next: Click here to start your financial journey with IMG Wealth Academy

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Food Cart Business: Beginner’s Guide (Top 9 Ideas)

Franchising is “a method for expanding a business and distributing goods and services through a licensing relationship,” a definition provided by the International Franchise Association.

This licensing agreement involves the participation of both franchisor and franchisee. You should know the difference between these two in layman’s terms:

• Franchisor

He is the legal owner of the overall rights, including trademark, method, and products of the company. He grants the license to the franchisee.

• Franchisee

He is the one bound by the licensing agreement granted by the franchisor. The franchisee purchased the right to sell the franchisor’s products.

In this case, planning to start your food cart franchise through already established brands will make you the franchisee.

Advantages of Franchising

1. Established brand and customer base – When you franchise, the brand is already recognized and has proven its profitability. You won’t worry that much about incurring huge losses.

2. Higher chances of success

3. Faster return of investment

4. Growing trend

5. Minimal risk

6. Marketing support – Advertisements are often aired on televisions and radios. Some are even heavily promoted through billboards and other powerful outlets so attracting customers won’t be that burdensome.

Disadvantages of Franchising:

1. Royalty fees – Fees must be remitted to the franchisor for a percentage of your monthly sales; thus, your income is reduced.

2. Limited control and freedom

3. Dependence on franchisor success

4. Limited creativity and flexibility – If you ventured into a milk tea franchise, you can’t innovate the taste of the milk tea. You can’t decide on your own and replace the tapioca pearls with your own preferred version.

As you can notice, the advantages still outweigh the disadvantages. Actually, the franchise has been named as the “business with least tears and fears.”

This boosted your motivation, am I right?

I hope you keep that passion burning!

Food Cart Business Ideas

You already made progress in reading this blog. Probably, this guide already flicked a light on your mind!

So, upon conducting a little research on what Filipinos love today, here are some ideas for your own food cart business that could further spark your interest!

1. Milk tea

Among all the food products on this list, this one takes the crown. Filipinos ranked second highest milk tea drinkers in Southeast Asia. The average milk tea consumption in the Philippines is 5 cups per month!

As a milk tea addict, maybe you have that unique milk tea formula you’d like to explore! Turn those pearls into cash! If this doesn’t convince you, I don’t know what will.

Gilbert Jim, a tea-lover and owner of Bubbatealicious which started in 2008, wanted to advocate tea-drinking which wasn’t prominent in the country at that time. He continued advocating tea-drinking until his hard work only paid off in 2010.

As your own milk tea business reaps its success, expect the blockbuster lines, and the whopping blockbuster sales!

2. Fruit shakes

Filipinos, regardless of age, want something to quench their thirst in this microwave oven we live in.

Whether you built a cart in transport terminals or beside schools won’t matter; people will still be lining up for a refreshing mango shake or buko shake.

The perfect ulam + sinangag + itlog would always be the ultimate favorite combination. Tapa, tocino, hotdog and bangus are some of the classic favorites.

It’s not only ideal for breakfast but satisfies your stomach for any meal of the day.

A perfect example of a successful food cart business would be Ate Rica’s Bacsilog.

The craze started in DLSU, until it branched out its operations in other areas. They stepped up the typical bacon silog by featuring and boasting their most-loved cheese sauce!

4. Chicken wings

Who doesn’t love chicken wings? Chicken wings are a timeless favorite. People continue to indulge in experimenting sauces and new flavors that would be on par with other chicken wings restaurants.

5. Street food

Make those kwek-kwek, isaw, fish ball, siomai or dimsum your own version! You can innovate by producing a delicious coating or even by adding a twist to the usual orange kwek-kwek color.

Be remembered as a modern street food cart business that prides in cleanliness, affordability, and superior taste.

Top 9 Food Cart Franchise Opportunities (Ranked starting from the cheapest)

Before giving you the updated list that would hint your next business franchise venture, here are some terms you should be knowledgeable of:

Payback period – the length of time that would recover your initial investment.

For example, your initial investment for Siomai King amounted to P150,000. For a year, your monthly income amounted to P12, 500.

P12,500 x 12 months = P150,000.

Your investment was recovered in a year. The faster the payback period, the better. However, also consider inflation. The money you initially invested may not have the same value in the future.

For this list, the capital ranges from P50,000 to P250,000!

For your convenience, relevant information such as contact details is provided. Here are the franchise businesses leading the pack in terms of minimal investment:

1. Burger Matsing Franchise

• Minimum initial investment: PHP 50,000
• Package inclusions: Franchise fee, franchisee and crew training, online ordering system, operations and marketing support, etc. (Excluded: Store construction cost, equipment, and initial inventory)
• Contact information : [email protected] / 0945-3456957 / 0939-8775810 / 0943-8700283

Yes, for only P50,000, your goal of a food cart business can be at the palm of your hands. With proper management, this can be as easy as pie.

2. Star Frappe’ Food Cart Franchise

• Minimum initial investment:  PHP 99,000
• Package inclusions:  Trade name use, food cart, equipment, crew uniform, initial products worth PHP 3,000, franchisee and crew training, and after-sales support
• Contract term:  1 year (renewable without a fee)
• Average payback period:  3 to 4 months
• Minimum space requirement:  6.25 sqm
• Contact information:   [email protected]

Your investment is already recovered in a short period! You will then start earning profit in your 5 th month of operations. Be completely aware of your franchisor’s terms regarding royalty and franchise fees.

3. Boy Kanin Food Cart, Kiosk, Dine-in Counter, or In-line Store

• Initial investment: a. Kiosk: PHP 149,000 b. Dine-in counter: PHP 199,000 c. Small in-line store: PHP 249,000 d. Big in-line store: PHP 299,000 e. Food cart: PHP 299,000
• Package inclusions:  Franchise fee, trademark use, initial stocks, franchisee and crew training, marketing support, opening assistance, crew uniform, cart, equipment, etc. (Excluded from the kiosk, dine-in, and in-line store packages: Construction cost, equipment, and marketing materials)
• Contract term:  3 years
• Space requirement:  4 sqm (Kiosk/food cart) / 15 to 20 sqm (Dine-in) / 30 to 50 sqm (Small in-line) / 60 to 100 sqm (Big in-line)
• Contact information:  [email protected] / 352-8130 / 0917-3443472 / 0923-6831409

4. Hong Kong Style Fried Noodles & Dimsum Food Cart Franchise

• Initial investment:  PHP 150,000
• Package inclusions:  Food cart, equipment, utensils, small wares, initial product, training, pre-opening and opening assistance, crew uniform, and marketing materials
• Space requirement:  4 sqm
• Contact information:  343-0536 / 0917-5000772 / 0922-8307611

5. Siomai King Food Cart Franchise

• Initial investment:  PHP 168,888
• Package inclusions:  Security deposit worth PHP 40,000, trade name and logo use, food cart, equipment, utensils, food tasting products worth PHP 1,000, training, operations manual, opening assistance, marketing materials, etc.
• Contact information:  [email protected] / 889-4773 to 76 / 0918-8JCFRAN (523786)

As part of the new normal, Siomai King allows online franchising. Even when on lockdown, you can launch your food cart business.

You can be a franchisee in the comfort of your home. If you’re interested, click for full details .

6. Potato Corner

• Minimum initial investment:
• Food cart: PHP 200,000
• Kiosk: PHP 400,000
• In-line store: PHP 500,000
• Package inclusions: Franchise fee, food cart, franchisee and crew training, equipment, small wares, and initial supplies
• Average payback period: 1.5 years
• Contact information: [email protected] / 534-5845 / 534-5846

7. Mister Donut Food Cart, Take-out Booth, or Dine-in Shop

• Minimum initial investment: a. Food cart: PHP 200,000 b. Take-out booth: PHP 400,000 c. Dine-in shop: PHP 650,000
• Package inclusions:  Food cart, equipment, small wares, POS tablet, and crew uniform (Excluded: PHP 50,000 franchise fee)
• Contract term:  2 years (renewable for another two years at PHP 50,000)
• Average payback period:  8 months (cart) / One to two years (dine-in)
• Minimum space requirement:  1.35m x 2.16m (Cart) / 6 to 9 sqm (Take-out)
• Contact information:  [email protected] / 370-1236 / 0917-8896148

8. Waffle Time Food Cart Franchise

• Initial investment:  PHP 250,000
• Package inclusions:  Franchise fee, food cart, equipment, training, and crew uniform (Excluded: PHP 50,000 refundable security deposit)
• Contract term:  3 years (Renewable for another three years)
• Average payback period:  6 to 12 months
• Minimum space requirement:  4 sqm
• Contact information:  [email protected] / 584-1601 / 584-3704 / 0933-8513968

9. Happy Cup

• Minimum Initial Investment:
• Cart – PHP 250,000.00
• Outlet & Kiosk – PHP 300,000.00 to PHP 350,000.00
• Area Franchise – PHP 750,000.00
• Contact Information: [email protected] / 0917-12345678

Did none of these wake up the entrepreneur in you? To have a full list of food franchises you can venture into, particularly those below P1M of investment, read more

If your budget is specifically below P500,000, here is a compilation under these two categories, click here

Final Note to Aspiring Entrepreneurs

A food cart business can be a root to wonderful opportunities. That cart will be one of your first symbols of success. Hence, acquainting and engaging yourself in the food industry is indeed a wise decision.

However, kickstarting your business can be both intimidating and challenging.

Life isn’t about rainbows and butterflies. Get rid of your “what ifs” and start your business planning process! Be embodied with passion and zeal in the pursuit of your dreams.

There’s a quote that says, “If you have lemons, make a lemonade,” But do you ponder on and reflect on the true meaning of this?  Lemons represent the sourness, the adversities in life, but we shouldn’t settle with its sourness forever but radiate optimism and hope instead.

Let go of the fear that your business will fail. It will only be a failure the moment you didn’t try. Soon, you will reap your big success.

I would like to hear your food cart business journey soon!

Read these next:

• Pisonet Business: Everything You Need to Know!
• 25 Best Franchise Business Opportunities in the Philippines – by Grit PH
• How to Start A Successful Internet Cafe Business
• 14 Things You Need to Start A Sari Sari Store Business

Jerico Saquing

Jerico is the founder of Peso Hacks. He's also a freelance writer who specializes in topics related to finance, travel and games. In his spare time, he likes to watch anime, play mobile games and read books.

Fresh Posts

Do you want to run a food cart business in the Philippines? In this article, we will discuss what is food cart business and things you need to prepare for it. Check this out!

Things You Need to Know About Food Cart Business

Are you intending to make a food cart business and confuse how to start food cart business? Don’t worry because we will discuss it here. Most food cart business is from franchising. Franchising is a faster way to have a food cart business without needing to think about food cart business ideas.

There are several types of food cart business that you can choose to franchise. There is also a food cart business worth 15k. Nowadays the leading food cart business in the Philippines is beverages and drinks. Before choosing the food cart business, you need to be selective and choose the food cart business that suits your passion. To increase your business sales, you can promote it in social media marketing .

Read also: Digital Marketing vs Social Media Management, Same or Not?

What Are the Preparations?

Your selling stock is messing up you need help.

Ginee Omnichannel allow you to automatically sync every stock from all of your online stores. It’s faster way to helps you profit!

Before running a business food cart, of course there will be requirements for food cart business Philippines you need to complete like your personal data but before starting a food cart business, here are the things you need to consider first.

Do Market Research

The first thing you need to consider is how the market is going. You need to make your food cart business plan before running the food cart business. In the business plan, you can use 5 W’s which are Who, What, When, Where, and Why to help you find information. You can also write your business goals and targets.

To get more complete information, you can do market research to help you. You can share a questionnaire to buyers about things they like and dislike. You can also search for information about the food card business you want to franchise before investing in it.

Prepare the Business Legal Requirements

When you are setting up a business , you will need to prepare the business legal requirements first. The requirements will be personal identity, health requirements, food services permits, tax permits, business licenses and others. These requirements will depend on what business you are going to franchise.

Start the Business

After you have done the market research and prepared your legal documents, now you can start the business. You can decide whether you want to make your own business with your own brand or buy a franchise. No matter what you choose, you still need to put in a lot of effort so that your business will grow.

Read also: 15 Small Online Business Ideas with Small Budget to Start

Steps to Start Your Own Food Cart Business

Here are the steps you need to follow to start a food cart business philippines.

Prepare the Concept

When you want to start your own food cart business, you need to prepare your business concept first. A good concept is when your business and the products match each other. So when you sell Chinese food, your food cart must be using the Chinese theme.

Focus on the Product First

Even when you have a good business concept, it will be nothing when your product is bad. That’s why you need to keep checking your product quality. If you have a good product, your customer will keep coming back and increase your sales .

Find a Good Location

Your business location also plays an important role. You need to find a place where many people pass by. You can do research on a good business location and make your business target.

Design Your Stall Attractively

To attract more customers, you need to design your food stall attractively. You can try to find food stall references on the internet but don’t ever copy other people’s designs. When you copy others’ designs, you have to be prepared to get sued by them.

Do You Want to Manage Multiple Marketplace Just by Single Person?

Of course you can! You can handle multiple stores from all marketplace just by single dashboard. Cut your Business’s cost, and Boost your Efficiency at the same time.

Use an Efficient Operating System

It is important to use an efficient operating system. This system will help you to work faster when there is an order. Besides that, it also helps to avoid any misorder.

Offer a Good Services

Besides having good food and a good stall, good service is also important. Your business will have a good reputation when having a good service. To get a good review from customers, you need to make sure that you are offering good services, food and also a good and clean stall.

Prepare All the Legal Documents

Before starting a food stall business, you need to prepare all the legal documents. The legal documents such as personal identity, health requirements, food services permits, tax permits, business licenses and others.

Examples of Well Known Food Cart Business in the Philippines

Here are some of the well known food cart businesses for your reference.

Citrus Zone

The first food cart business is Citrus Zone. Citrus Zone offers a healthy concept in their business by offering lemonade and freshly-pressed juices for a healthier diet. The investment capital you need to franchise Citrus Zone is about PHP 350,000.

Another popular food stall business in the Philippines is Happy Cup. Happy Cup offer beverages products that were established in 2017. The total investment capital might take around PHP 250,000.00 to PHP 750,000.00.

Magic Melt​

There is also a famous food stall that was established in 1999 by the Lumakang family which is called Magic Melt. The total investment capital you need to prepare if you want to franchise is around PHP 395,000.

Mister Donut

You can also choose Mister Donut for your business. Not only donut, there is also a coffee in Mister Donut. The total investment capital is around PHP 306,000 to PHP 366,000.

Franchise is really popular in millenials. When you choose to franchise a food cart business, you don’t need to think about the food cart business name ideas . You will use the business name that you franchise, menu, time as well as the risk. As long as you put effort into running the business, you will get a positive result.

Join Ginee Philippines!

Starting a food cart business in the Philippines might be hard if you don’t know how to manage it well enough. Therefore, you will need Ginee Philippines because with Ginee, you can manage products, orders, stocks, promotions, and more in only a single dashboard. Especially, if you register your business online in marketplace or e-commerce platforms. Increase your sales with Ginee Philippines now freely !

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Ginee product management allow you upload products to all of your online stores from all marketplace just once! Save time, save cost, save energy, join Ginee Now!

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how to start a food cart business in the Philippines: NEGOSYO REVIEW: Maganda Ba Magsimula Ng Food Cart Business?

Posted by Damian Roberti on June 25, 2023

How to start a food cart business in the Philippines:  NEGOSYO REVIEW: Maganda Ba Magsimula Ng Food Cart Business?

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How to start a food cart business in the Philippines

"food on wheels: starting a food cart business in the philippines".

From the piping hot sisig of Pampanga to the delectable lechon of Cebu, the food scene in the Philippines is as diverse as it is flavorful. One popular and affordable way to dive into this thriving market is to start a food cart business . It's an appealing prospect that allows entrepreneurs to serve up their culinary creations without the high overhead costs of a traditional brick-and-mortar restaurant. If you're pondering how to start a food cart business in the Philippines , this guide is for you.

First Step: Sizzling Idea Creation

A food cart business is more than just selling food on the street. It's about creating a unique dining experience that will have customers coming back for more. Whether you want to sell traditional Filipino fare, western fast food , or a fusion of both, your food cart should offer something unique to the market.

Second Step: Business Plan – The Recipe for Success

Just as a good recipe is essential for a delicious meal, a well-crafted business plan is a must-have for your business. This document outlines your business goals, target audience, strategies, budget, and cash flow projections.

Third Step: Navigating the Legal Landscape

Starting a food cart business in the Philippines comes with its fair share of legal requirements:

Business Name Registration: First, register your business name with the Department of Trade and Industry (DTI) for sole proprietorships or the Securities and Exchange Commission (SEC) for corporations and partnerships.

Barangay Clearance: This is a certificate verifying that you have the approval of your local barangay (district) to operate a business in the area.

Mayor's Permit: Before you can operate, you must obtain a Mayor's Permit or Business Permit from the local government where your business will be located.

Bureau of Internal Revenue (BIR) Registration: You will need to register with the BIR to get your taxpayer identification number, register your books of accounts, and secure invoices/receipts for your business.

Food and Drug Administration (FDA) Permit: If you’re planning to sell processed food, you need to secure a License to Operate (LTO) from the FDA.

Fourth Step: Selecting Your Ideal Cart

Select a cart that is not only appealing but also functional and aligns with your product offering. Ensure it has sufficient storage and preparation space, and meets all health and safety requirements.

Fifth Step: Scouting for the Perfect Location

High traffic areas, such as near schools, offices, or public markets, can be lucrative locations for your food cart. Make sure to get the necessary permits and clearances to operate in your chosen location.

NEGOSYO REVIEW: Maganda Ba Magsimula Ng Food Cart Business?

Sixth step: sourcing top-notch ingredients.

Your products are only as good as the ingredients you use. Build relationships with local suppliers to ensure a steady supply of high-quality ingredients.

Seventh Step: Setting a Competitive Price

The right pricing will cover your costs and yield profits, while also remaining affordable for your target customers. Compare prices with similar businesses to ensure you're competitive.

Eighth Step: Serving Up Your Marketing Strategy

Now it's time to get the word out about your new business! Utilize social media, flyers, partnerships with local businesses, and attend local events and fairs to boost your visibility.

And there you have it - a comprehensive guide on how to start a food cart business in the Philippines . Starting a food cart business is an exciting journey that combines culinary creativity with entrepreneurial spirit. With careful planning, top-notch food, and a keen understanding of your local market, you'll be serving up success in no time. Remember, the most important ingredient in any business is passion. So, get out there and start cooking up your dream business!

Here are 5 websites that can provide more information about starting a food cart business in the Philippines:

Department of Trade and Industry (DTI) : This is where you can register your business name and find resources on doing business in the Philippines.

Securities and Exchange Commission (SEC) : You can register your corporation or partnership here.

Bureau of Internal Revenue (BIR) : The official site for all tax-related matters in the Philippines.

Food and Drug Administration (FDA) : For securing a License to Operate (LTO) for selling processed food.

Entrepreneur Philippines : A rich resource for starting and managing a business in the Philippines. It often features articles and resources specifically tailored to the food cart industry.

These websites will provide a wealth of information for anyone considering how to start a food cart business in the Philippines. Always verify information across multiple sources to ensure accuracy.

• Tags: How to start a food cart business in the Philippines: , NEGOSYO REVIEW: Maganda Ba Magsimula Ng Food Cart Business?
• Choosing a selection results in a full page refresh.
• Press the space key then arrow keys to make a selection.

Things to Consider Before Starting a Food Cart Business

Nowadays, the food cart business remains to be a lucrative franchise idea in the Philippines, particularly amongst entrepreneurs. Just like the fast-moving consumer goods (FMCG), the food cart business is also very dynamic. It is also booming since people are always looking for new food concepts available in the market.

Look around you and observe. Food carts are everywhere because there are demands from the people. Moreover, it is noteworthy to note that Filipinos generally love food, which means more franchise concepts are possible to happen in the coming years.

The Basics of Food Cart Business

First of all, you must understand the reach of the food cart franchising in the country. It is not only limited to the street food craze. In fact, in malls and other establishments, a lot of food carts and kiosks can be seen. Hence, there is always a market and opportunities for those who want to venture into this business.

So, if you think this business is for you, then start it right by evaluating the following steps in starting a food cart business:

Do Market Research

Any business technically needs a well-done and thorough market research. It involves understanding and finding answers for the 5W’s (Who, What, When, Where, and Why). It is very unsafe to assume that things will work out; hence, the need for this research before investing. During this phase, you need to address concerns about the operations, target market, competition, and location.

Adhere to Business Legal Requirements

Just like the other types of franchises, there are still legal documents that need to get processed. These documents include food service permit, health requirement, business license, sales tax permit, and truck or cart registration. When it comes to these requirements, there is usually a difference from one city or municipality to another. Therefore, it is best to inquire to your city or municipal hall to have the correct information about the requirements you need to fulfill.

Start the Business

Take note that in the food cart business, you have the right to start your brand or just franchise. There are pros and cons for each choice, but the good thing is that there is always an advantage for a franchise since the business is already established in the market.

Choosing the Right Food Cart Franchise

Engaging in a business that you like and close to your heart is the primary key to a successful franchise business. So, if you opt to get a franchise instead of starting your own business, be sure that the franchisor has a good standing and a member of either Association of Filipino Franchisers, Inc (AFFI) and/or Philippine Franchise Association (PFA). 

It can also be helpful if you do a background check first, then talk with other franchisees, and consult a lawyer before signing the franchise agreement. Often, franchisees also tend to feel overwhelmed over the benefits of successful brands, but as the golden rule, you should never feel intimidated with the franchisor’s success.

Instead, you must bear in mind that you too can be a tycoon in the business and manage other franchisees in the future. Moreover, you should always know whether you want a food cart business alone or if you prefer to have kiosks. Though they differ in the space area, carts and kiosks remain competitive in the market carrying brands that are successful in the field.

Tips for Starting a Food Cart Franchise Business

When starting the business, there are helpful tips that can help you stay on track. Specifically, for food cart and kiosks, here are some useful tips to follow.

Do Not Go Hybrid Right Away

While it is also a good option to offer more than one food in your cart, focusing on just one first is a good way to build the foundation of your business (if you are starting your own brand). This will give you a complete focus on developing your business model and system, which are considered pillars of successful franchise brands.

Observe Proper Sanitation

Always make sure that you prioritize clean food preparation and handling at all times unless you want people to talk about your dirty business.

Invest in the Food Cart Design

It can’t be denied that visuals are very helpful in catching people’s attention. Hence, it will be helpful if you can have an attractive food cart or kiosk design.

Prioritize Customer Service

Remember that in a food cart business, you are not just selling food; you also provide services to the customers. Always try to smile at your customers and serve them well despite the long queues.

Are you planning to start your dream food cart business soon? If yes and you are ready to jumpstart your franchise business , then do not hesitate to follow the points and tips we have for you.

Let us help you in achieving your franchising goals! Check the latest franchise listings too!

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Disclaimer: Franchise Market Philippines strives to provide relevant and accurate information in all its articles. However, some information in our articles may differ or might be outdated from what you can see or read directly from the establishments' or businesses’ websites. Please get in touch with us directly for any discrepancies.

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How To Start a Street Food Business in the Philippines: A Beginner’s Guide

The street food business in the Philippines has carved a niche of its own.

Informal, unpretentious, and affordable, the traditional Pinoy street foods cater to growling stomachs who don’t have the time and money to go to fine-dining restaurants. Some even make them part of their daily diets just for the thrill.

If you want to sell something that appeals to the taste and budget of the masses, you can never go wrong with a street food business in the Philippines. This guide will show you how to start it from the ground up.

Go back to the main article: Best Small Business Ideas in the Philippines with High Profit

• Budding entrepreneurs and food enthusiasts whose starting capital are too small for a  carinderia  or catering business.
• Those living in populated areas near schools, offices, terminals, or busy streets.

Capital: Php 5,000 to Php 20,000

• It doesn’t need a large capital.
• No need to pay rental fees if you’re going to start the street food business in front of your house.
• Lower overhead cost compared to other food businesses.
• Minimal promotion/marketing since people are already familiar with street foods. All you need is to leave a good first impression to have repeat customers/buyers.
• Location isn’t a problem since you can sell it anywhere with high foot traffic. If it’s impossible to launch it in your own place, a mobile food cart allows you to sell it anywhere else.
• Affordable prices mean more potential customers and more flexible profit margins.
• The market is diversified. Street foods appeal to the taste buds of Filipinos from all social classes, assuming that your products have great flavors that people can’t get enough of.
• As with any other type of food business, street foods take a lot of time and effort to prepare. Depending on the type of street foods, it’s not unusual for vendors to wake up as early as 4 A.M. every day to buy fresh ingredients and spend the remaining hours preparing sauces and putting them on a skewer.
• It takes time to scale it into a multi-million business. Unless you’re already an established name that is ready for franchising , you have to spend years developing your product and building your customer base.
• Since the street food business in the Philippines has low start-up costs, expect high competition. To stand out, you must think of innovative ways to attract more customers.

How To Start a Street Food Business in the Philippines

Step 1: decide whether to franchise or go independent.

The easier path, of course, is to franchise an already established brand .

One advantage is sanitation. Since traditional street food vendors in the Philippines are notorious for their unsanitary practices, several food cart companies offer their products in great packaging and promote them as safe, clean, and fresh.

Food cart companies like Pinoy Hot Balls and Fries , Takoyaki , and Gulaman Corner also offer assistance in marketing and finding a good location for your stall.

Of course, none of these food carts have the same charm as legit street foods peddled in actual streets. People flock to them because they provide a homey vibe you won’t get in air-conditioned malls.

In addition to that, starting your own street food business from scratch requires less capital. You have control over what street foods to offer and how many to sell without being burdened by any franchise fee.

Step 2: Pick a Strategic Location

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

It doesn’t matter how tasty or flavorful your street foods are; if your location is too far from your target market, nobody will bother to buy from you.

Remember, businesses should find and come to their potential customers, not the other way around.

Strategic locations may include areas near schools, terminals, offices, or busy roads. If that location happens to be where your house is also located, good for you. You will recover your initial investment faster since you don’t have to pay rent.

Step 3: Choose the Type of Street Foods You’re Going To Sell

Thanks to Filipinos’ creativity and penchant for turning ordinary stuff into delectable street foods, you’ll never run out of choices to offer.

The best part is you don’t have to spend much on packaging since most street foods are placed in plastic cups/bags, poured in a bowl, or put onto skewers.

If you’re looking for ideas on what street foods to sell, the list below should get you started:

• Isaw – intestines of either chicken or pig that are coiled onto skewers and grilled over charcoal. Its smoky flavor contrasted with the sweet and tangy vinegar sauce make it a perfect afternoon snack or pre-dinner appetizer.
• Ukoy – a classic Filipino fritter made of bean sprouts, shrimps, and julienned squash mixed with orange batter and deep-fried to crispy perfection. Ideally partnered with a sweet vinegar sauce.
• Kwek kwek – quail eggs covered in orange-colored batter and deep fried. Other variations include hot dogs covered in the same orange batter (think Filipino version of the popular corndogs). When dipped in vinegar sauce with chopped garlic, onion, and chilis, kwek kwek bursts with amazing flavors that Filipinos are all familiar with.
• Helmet, Adidas, and Betamax – grilled street foods made of chicken head, chiken feet, and coagulated chicken blood, respectively. Although some foreigners may find them repulsive, these adventurous street foods are prime examples of Filipinos’ resourcefulness. As they always say, one man’s trash is another man’s culinary treasure.
• Mango-on-stick – Fresh, green Indian mangoes with seeds removed and poked onto skewers, then served with a nice spread of sweet, salty shrimp paste (bagoong). It’s the ultimate summer snack that passersby won’t be able to resist.
• Fish balls/chicken balls/squid balls – the all-time favorite Filipino street food snack, fish balls are usually served by getting your own skewer and poking them straight out of the oil. Although the balls are made primarily of flour, the sweet and special “Manong’s sauce” is the reason why people keep coming back for more.
• Other street food ideas: Balut, Banana Q, turon, binatog, 1-day-old fried chicken, taho, mami, sotanghon, and palabok.

Step 4: Find a Reliable Supplier

Owning a street food business in the Philippines requires you to shop for fresh ingredients every day.

Hence, it’s important to build a long-term partnership with a reliable supplier in the market, one who will set aside the quality and fresh materials for you and give discounts when you buy in bulk.

In turn, don’t let this relationship go sour by not paying on time. Remember, your business heavily depends on your suppliers. Without enough raw materials, your daily business operations will be affected.

Step 5: Invest in the Right Equipment and People

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

Use grilling/cooking equipment and utensils you already have and save money in the process. 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. 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.

Step 6: Make a Delicious Sauce

Street foods won’t be as appetizing without their corresponding sauces.

In the Philippines, sauces are just as varied as the street foods they complement . It reflects the different preferences and tastes of Filipinos–some like it spicy while others prefer sweet with a little bit of tanginess.

Sauces are so important that customers buy street foods for the sauces alone. They pour it on their rice like soup and eat it as if it’s a full-course meal. So, if you want to earn a lot of  suki,  work on your sauces and perfect them as a real chef would.

Luckily, YouTube is a treasure trove of tutorials that will teach you how to make the special vinegar sauce or the popular “Manong’s sauce” perfect for fish balls.

Step 7: Set the Right Price for Your Products

Right pricing can be the difference between a successful street food business and one that is a dud. You want to price your street foods to cover your overhead cost while keeping them affordable.

Survey your competitors to gauge whether you’re pricing your products too low or going overboard.

Always remember that the reason why Filipinos prefer street foods is that they fill their stomachs without hurting their pockets. Keep the prices “abot-kaya” for the masses but never forget that this is a business, and businesses need to profit.

Step 8: Observe Proper Sanitation

Street food vendors, especially the ambulant ones, 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.

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Food Cart Business in the Philippines: Franchisees Speak Out

We own 3 food cart businesses from 2 different franchises. We’re also friends with 11 other groups who collectively own 14 other food cart business franchises. You might be wondering what it’s like to own a franchise. Quite frankly, our experiences have been very different from online testimonials. I speculate most are paid ads , but that’s neither here nor there. To be fair though, some franchisors have exceeded expectations while others have disappointed. We shall omit the names of these franchise businesses but, for your reference, the franchise fees range from Php200,000 to Php1.5 million.

As it were, this price range of food cart business ideas most likely covers the franchise you’re considering if you’re in the market for a food stall business. I hope our combined experiences provide some value to your plans of franchising a food cart business in the Philippines.

Page Contents

What is it like to own a franchise?

A sensible way of sharing our experiences is to break down the chronological stages of franchising a business . We’ll begin with the initial research and what to expect when franchising; cover the necessary legwork and steps to open a franchise business; touch on what franchisors provide such as the required series of training and construction of food stall; operating the business and what support to expect from a franchisor.

Stage 1: Researching a franchise

The research stage is arguably the most important part of the process . And other than actually operating the food stall, it might also be the longest. The right or wrong food cart business idea will make a huge difference to your experience, so choose wisely.

1.1 The best location for food cart business

Having a bankable location is the number one priority. Most franchisors actually require you to submit the details of your proposed location. Some franchisors have a list of viable spots, but more often than not, location is the responsibility of the franchisee.

Have at least 3 options for the franchisor to consider. It’ll make the process easier for both the franchisor and franchisee.

( Tip: If a franchisor isn’t strict with their locations, then that’s probably a bad sign. )

Breakeven point analysis

The best locations bring in traffic that makes it easy to reach your breakeven point. We recommend using this 3-step process to check if a business idea is worth pursuing . A 30% gross profit margin also generally works in the food & beverage industry, but you may adjust this accordingly.

In performing your market evaluation, it’s extremely helpful to visit your location on at least 3 separate days and time. Observing foot traffic is key, and by spreading out your visits, you get a fair assessment.

While you’re at it, also interact with some of your future competitors — particularly if a competitor serves the same niche or is at a similar price range.

• How much do they make in daily sales?
• What has been their lowest sales total? Highest?

(TIP: Make sure you buy from them first to get them to share important information. Most will be hesitant if you randomly blurt out your questions. )

Matching location and franchise

A massively overlooked part is that your franchise should  complement  your location. There’s no universally accepted best location, really, and it’s all a matter of matching a food cart business idea with the place. For example, if the proposed location is a high-traffic place visited by people from markets C or D (e.g., terminal station), and you’re selling products for markets A or B (e.g., premium cakes), then that might not be a good match.

That said, a good location might even be able to offset a subpar franchise. This brings us nicely to our next point, franchising business models to avoid.

1.2 Franchising models to avoid

Fair warning, this is a generalization of what we’ve found to be the common themes of a bad franchise. Unfortunately,  bad  in this context may mean a few things. It may be subpar, but still tolerable, relative to other franchises. Or it may mean downright fraudulent businesses. Probably best to avoid franchises that follow these just to be on the safe side.

Incentive to recruit

Some franchise business models follow the multi-level marketing (MLM) scheme where there’s an incentive to recruit other franchisees . You could say it’s a viable business model, but the problem with this is it highlights recruitment over the actual franchise. You’re ultimately buying a recruitment business first, and a food cart second.

Bundled and limited-time promos

Other franchises force bundled promos that include other products to the franchise you actually want (e.g., beauty products bundled with your food stall). Some impose a limited-time offer for an illusion of scarcity, forcing franchisees to act right away. In general, we’ve found these to be superficial tactics and have had poor experiences with them since becoming franchisees.

( Tip: These are actually ongoing promotions, so don’t fear missing out. )

No established track record

It’s probably a given, but you shouldn’t franchise a business with no proven track record . Recent trends have been to franchise food carts with no real brand value. Although we do not have personal experiences with these types of franchises, it’s clear they do not provide enough merit and assistance to warrant a franchise. More on this later.

Over-endorsed franchises

Celebrity endorsements are a double-edged sword. On the one hand, they (in theory) bring in more sales. On the other hand, the costs to book these celebrities are passed on to franchisees in the form of higher franchise fees. You will need to determine if the higher franchise fees are justified by enough increased sales . ( With an emphasis on “enough.” ) For example, if the franchise fee is higher by 50%, but the increase in sales, compared to another franchise that’s not heavily endorsed, is only 25%, then that’s probably not a good deal. Of course, we’ll never really know for sure until it’s there. But it’s still a good notion to keep in mind. ( Related: See freedom locker PH’s #businesseconomics tag for more tips on Business Economics .)

Again, these don’t mean a franchise is automatically bad when they have these things . But we do want to highlight that our experiences have been poor with franchises that have these gimmicks.

1.3 Franchisor background check

This isn’t a typo. A franchisee (you) should vet franchisors before franchisors (they) have a chance to vet you. Yes, you do benefit a lot from a reputable franchise. But also consider that you are doing them a favor by expanding their business. It’s always best to partner with quality franchisors.

Franchisor registrations and affiliations

Some of the areas to look out for include the following:

• Are they registered with the SEC?
• Do other government agencies recognize them?
• Are they affiliated with franchise clubs and groups?

Government requirements are must-haves while their affiliations with franchise clubs are a plus, but not necessary.

No affiliations do not mean they’re outright bad, but it is worth investigating further — because reputable franchises have an incentive to be part of franchise clubs and groups. There are definite exceptions. One of the best we’ve worked with isn’t on this list , so take this advice with a grain of salt.

Sample Franchise Clubs

Franchise package inclusions

You also need to do your due diligence on the franchise package inclusions. Some exclude capital requirements and are limited to the use of their product names or logos. Others are all-inclusive packages and may even include a week’s worth of raw materials and supplies.

For provincial franchisees, specifically franchisees outside of Metro Manila (NCR), also make sure you ask  who shoulders the ocular inspection fee . This includes flights, meals, and accommodation costs of the franchisor’s representative. This is a significant cost that’s often forgotten. Make sure you consider this in your analysis.

Franchisors also typically have a commissary where you’re required to buy your raw materials. If you’re a provincial franchisee, also consider asking if it’s possible to source some low-ticket items locally. These include rice, eggs, cooking oil, and so on. ( Franchisors may or may not allow you to buy elsewhere. )

1.4 Other important matters

Depending on the franchise, you may also want to start looking for food cart contractors. Some franchises include the construction cost in the franchise fee, while others merely provide construction guidelines. It’s best to have a list of credible contractors ready just in case. 

Stage 2: The groundwork of a franchisee

At this point, you’ll have the approval of your franchisor as their franchisee. This phase includes setting up your DTI requirements, mall or location approvals, Mayor’s Permit, occupancy permit, fire permit, construction designs (if applicable), etc. Also, have your cash ready as this stage will require your first large cash payments.

Also for the legwork, know which tasks the franchisor or the franchisee is responsible for. For example, the coordination with the mall or location is typically done with a franchisor’s representative, unless it’s either not part of the package or if you’re in a provincial area.

2.1 Initial cash outlays

Some of the major cash payments you’ll have to prepare yourself include the following:

• Mall or location security deposit and advance payment. Prepare at least 3 months’ worth of rent.
• Initial or full payment of franchise fee, depending on your franchisor’s requirements.
• Budget for your contractor and architect, but also dependent on the franchise inclusions.
• Miscellaneous expenses for airfare, accommodation, and food . More on these later on.

2.2 Mall or location approvals

Most locations will specify allowed designs. For example, if you’re in an in-line store vs. a standalone food stall, the design elements will be very different. You’ll receive the design requirements from the mall or location’s architect, building administrator, building engineer, or similar.

Designing the food cart

You will want to coordinate the design requirements with your franchisor. Again, depending on the franchise, the architectural designs may or may not be included in your franchise package .

If your food cart franchise package does not include architectural designs for the food stall, a cheap alternative we’ve found is through Fiverr . Fiverr is an online marketplace with global freelancers, including architects. Check out the search bar below to look for a draftsman or architect.

( Tip: When designing your signage, have the non-lit parts set to opaque where light doesn’t seep through. It just looks nicer compared to signages where the entire design is translucent. )

Lease agreement

It should be pointed out that the lease agreement is required by the BIR and Mayor’s Permit (succeeding steps), which is why you will want to secure a copy (or draft) of the lease agreement first.

When opening a new food stall business or food cart franchise in a mall (and most other locations), they assume you’re a new business and will not require the government requirements (below) at the outset. You will, however, have to submit the government requirements before opening your business.

2.3 Government requirements

If this is your first food cart business, you will want to submit your application to the Department of Trade and Industry (DTI). DTI has many online payment options though, and this step can be completed in 5 minutes. 

When registering a business, remember that you are allowed to reserve the proposed business name for one week. Failure to pay within a week will forfeit your reservation. 

Open a DTI application form

This is also the time to process the other regulatory requirements, including your Mayor’s Permit, fire permit, occupancy permit, sanitation, and health cards.

( Tip: You will need to submit the details of at least one employee for the processing of your application with SSS, HDMF and Philhealth.)

2.4 Construction of food stall

Again, depending on the franchise inclusion, this may or may not be an involved step. If the food cart is inclusive of your package, the franchisor will have the unassembled cart shipped to your location.

Otherwise, you will need to hire a contractor, which you would’ve found by now if you followed through Stage 1 above.

Either way, you will need to hire help in setting up the food cart or food stall if this is something you’d rather not do.

2.5 Franchisee training

A few things to note when scheduling your training with the franchisor.

Make sure you allow enough time for the training of your head staff. Some franchisors require at least one staff (other than the franchisee) trained at the franchise head office. Others only require the franchisee.

Provincial franchisees will have to shoulder the related costs of training. These include airfare, accommodation, food, and others. We’ve yet to find a reputable franchisor that doesn’t train its franchisees.

( Tip: Most franchisors’ training will be limited to a run-through of the inventory monitoring system. For small business food cart franchises, we’ve found most “systems” to be lacking and you will probably need to set up your own monitoring and accounting system. )

( See Accounting Solutions for Small Businesses in the Philippines , or create a FreshBooks account, our recommended accounting software, for your free 30-day trial . )

Stage 3: Daily operations as a franchisee

Stage 3 is certainly an ongoing process. We’ll talk about your operations and hiring decisions. The excitement builds up.

3.1 Finalizing your system

A lot of franchisors will provide an operations manual. From our experiences though, this is really just a set of general guidelines you’ll have to tweak specific to your needs. They will have a set of rules regarding interactions with the franchisor, particularly the commissary, but you’ll have to make adjustments to your store’s policies.

For example, malls restrict the time you’re allowed to pick up or drop off supplies (e.g., 10am to 12nn and 3pm to 5pm). This isn’t much of an issue with non-mall locations.

3.2 Hiring more help

Hiring actually takes place in the prior stage, Legwork , but as mentioned it’s an ongoing process. There are no hard and fast rules in recruiting help. If you do decide to hire via the Facebook route, here are a few tips that have helped us.

Interview process

List 2 to 3 required fields to filter qualified applications. A lot of the applications on Facebook will be lousy, quite frankly, and to wade through the poor applications, including strict requirements helps a lot. Once you’ve shortlisted your candidates, schedule everyone’s interview in one day.

( Tip: Instead of scheduling each applicant with a specific time block, let them know of your interview start time and then commence the interviews on a first-come-first-served basis. )

Make sure you have a tool to document the interview process. You will forget a few details (or maybe a lot) and you’ll thank yourself for jotting down the highlights of the interview. We use a standardized spreadsheet with the same questions written down.

( Tip: Role-playing customer service, at the risk of sounding cheesy, actually helps you see how they react to pressure or if they’re sociable frontliners. )

Other tasks

If you’re hesitant to hire prior to opening, also keep in mind that your new hires will be able to help you with the groundwork or legwork. They can, for instance, assist in the construction of your cart, processing unfinished requirements, and similar.

3.3 Opening day

The excitement will undoubtedly pick up and peak on opening day. As much as I’d like to say “try not to stress too much,” that’s truly easier said than done. You’ve worked tirelessly and the anticipation is understandable.

A few things to keep in mind on opening day.

Have enough coins on hand.  This single tip will drastically lower the stress on opening day. Also, have enough inventory sheets on hand and other supplies. A good franchisor will help you with a list of things you’ll need but plan ahead anyway.

Not everything will go according to plan. And that’s alright. Coming in with this expectation, that issues will come, puts you in the right frame of mind and lessens your stress.

And finally, though actually also done before opening day, have spare equipment ready.

Food cart franchise or create your own?

My hope is this chronological set guides you in your food cart business. But there’s one question you’re probably wondering. Should I  franchise  a food cart, or is it better to create my own business plan and follow the same steps without the franchise?

A lot of the steps are actually doable yourselves and might also cost you less (e.g., raw materials could be cheaper). Ultimately, it comes down to brand recall and recognition. Will customers buy your product regardless, or will the brand name bring in more sales, and are the increase in sales enough to offset the franchise fees and additional costs?

There’s no right nor wrong answer, but it is worth mulling over. When you think you have the best location for a food cart business, ask yourself if franchising is the best option for the place. I hope our shared experiences help you in your decision. All the same, remember that action trumps inaction. Just start, franchise or not.

Franchising Timetable

Research the idea

The best location, understanding the franchising model, franchisor reputation Go to Stage 1

Legwork duties

Handle government, franchisor, and location requirements. Go to Stage 2

Business on autopilot

What to expect in your day-to-day operations. Go to Stage 3

*This post may contain affiliate links. You can read my affiliate disclosure here , Terms & Conditions, #6 Links.

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Starting A Food Cart Business in the Philippines

For those who have limited capital, starting a food cart may be the best option. When going into the food cart business, one of your main decisions is whether to get a franchise or to start your own food cart business from scratch. If you intend to remain in your day job or present business, then it is strongly advised that you get a franchise because starting a food cart business needs your full attention.   While a franchise is also a business, you must follow the franchisor’s system. Here are some tips that should help the beginner get started:   Determine the best location for your type of food cart . Your location could make or break your business. Among the many factors that determine suitable locations are sufficient foot traffic, affordable rentals, and competitive environment.   Practice proper food safety . You must know how to implement food safety procedures not only to be legally compliant but also to inspire confidence in your product. Know about HACCP (Hazard Analysis and Critical Control Points) for better food safety control. Customers must also see that your employees are handling the food in a hygienic manner.   Have a good internal control system . Since only one or two persons will be tending your food cart, a reliable way of controlling cash and other assets must be developed to minimize the chances of theft. Having a Point of Sale (POS) system can help control both cash and assets, and it can also track many other useful data like product movement.   Develop a new and exciting product . The most important task is to develop something that is significantly new and superior in taste that would please people and get them to spread the word about your product.   Study the ideal pricing and adapt your costs to the price . Determine the ideal price point and then to adapt the product serving size and other cost factors.   Develop an operations manual . So many things must be done on an everyday basis and having them written down is the only way to remember everything. With a well-written operations manual, you can easily train your employees. There will also be consistency in taste and quality.   To know more about this business, BusinessCoach, Inc., a leading business seminar provider, conducts a seminar entitled, “Starting a Food Cart Business.” Contact (02) 727-5628, (02) 727-8860, (0915) 205-0133 or visit www.businesscoachphil.com for details.

  Click here to view details of the seminar: Starting a Food Cart Business »   *Originally published by the Manila Bulletin. C-4, Sunday, October 27, 2013. Written by Ruben Anlacan, Jr. (President, BusinessCoach, Inc.) All rights reserved. May not be reproduced or copied without express written permission of the copyright holders.

FOOD CARTS: The Ultimate Small Business to Start in the Philippines

The food cart industry is hailed as today’s top small business to start in the Philippines. The absence of complex requirements and set-up, offers an interesting option for people who are aiming to test the ‘business waters’. The market trend in the Philippines now also demonstrates that engaging in the food cart industry has now become on one of the top choices of budding entrepreneurs.

Food carts can easily be spotted anywhere. From MRT and LRT Stations down to every corner of the street in the local Barangays, one can instantly enjoy a serving of siomai, pizza, empanada, hotdogs, waffles, and good old comfort foods like mami and rice porridge. Schools and even the churches have now become the tiny hubs where these small and sometimes moveable kiosks have flourished.

Gone were the days when food carts were only for street food vendors. Even the most unexpected kind of foods have also started to be sold in small and colorful carts. These foods include Filipino all-time favorites such as tapsilog, sisig, and all sorts of rice toppings you can think of.

But what makes this industry appealing? The low capital outlay is certainly one of the reasons. After all, a mere Php 10,000 is what it takes to actually start a food cart business. This already includes an entire package – the cart to be used, the initial products to sell, the training of the crew, and the uniform they need to wear.

People who have the capital and the will to know more about the business still need to do a bit of research about running a food cart business. Finding the right product is a good step. You need to find the product that people will never get tired of.

Be smart about the competition as well. Check which food item is not yet available in the location of your choice. Note that even if you sell the best-tasting siomai on the planet, but if you put it next to another food cart selling the same product, chances are you will not get noticed right away.

In order to maximize your profit and optimize your success, there are some pointers shared by Potato Corner founder Jorge Wieneke. These pieces of advice can help aspiring entrepreneurs prepare for battle of food cart businesses. These advice includes:

This business is by far the easiest to start. If you are looking for an extra income, but are afraid to gamble a huge amount of money, then you may try putting up a food cart business. With all the above-mentioned advantages, this can definitely be inferred to as the best small business to start in the Philippines.

Jack is a self-made entrepreneur, who actually started out in the Military, then worked for the Government for a few years, until he finally made that bold step and started out his own online and offline businesses. He’s never looked back ever since, and hasn’t been happier…

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How to Start a Food Cart Business: a Step-by-Step Guide for Beginners & Entrepreneurs

Wondering how to start a food cart business?

The timing couldn’t be better: it seems that the street food craze is sweeping the world.

From bustling cities to small towns, food on wheels is a growing trend. And it’s not just drawing street food fans, it’s bringing in big bucks too: according to Intuit , the street-food business, including food trucks and mobile food carts, is a $2.7 billion industry that has seen a 12.4% growth in the last 5 years alone!

Traders are encouraged by the growing number of urban street markets, private events and street food festivals, while the entire trend is supported by the global rise of the “foodie” culture, making the public increasingly open to new taste experiences and quality cuisine.

Which begs the question:

What Makes Street Food So Popular?

From the entrepreneur’s perspective , street food comes with important benefits such as low start-up costs and mobility. Kiosks, food carts , trailers, and food trucks have a lower overhead than restaurants and can be moved if one location does not generate enough business.

For customers , street food is convenient and cost-friendly, which makes it attractive for basically everyone: locals and tourists, students and busy professionals, frugal singles and large families.

The most popular street foods?

There are the classics: hot dogs, hamburgers, ice cream and doughnuts.

Then there are those inspired by ethnic cuisines such as tacos, empanadas, sushi and crepes. The possibilities are endless and it’s up to you, the entrepreneur, to find the dishes and recipes that will set you apart from the rest and, most importantly, that will help you build a good reputation and a loyal customer base.

But, before you decide what foods you’re going to sell, you’ll have to consider:

The PROs and CONs of a Food Cart Business

There are many advantages to starting your own food cart business, which is why a lot of people choose to do just that. The PROs include:

• Low start-up costs
• Less risky than opening up a restaurant
• The ability to be your own boss
• The flexibility to work when and where you want
• Little restaurant experience required
• The growing popularity of the street food trend

But, as with all business endeavours, there are also CONs to examine. A food cart business is no walk in the park: there’s a lot of hard work to be done and you’ll only see significant profits after your business picks up.

The biggest CONs are:

• Being self-employed can be testing for some
• Long hours, early mornings and night shifts required
• Fierce competition
• There are many regulations and laws to comply with
• Seasonal reliance
• Finding a suitable location that you’re allowed to trade in
• Customer service can be challenging if you’re a solo-preneur

From our experience as food carts manufacturers , people are attracted by affordable start-up costs and by flexibility; at the same time, the most common complaints – at least in the initial phase – are long working hours and industry volatility in terms of trends and business opportunities.

However, if you are passionate about good food and you start with solid and well-researched plan, there is every chance you could make a roaring success of your food cart start-up.

How to Start a Mobile Food Cart Business? A Step-by-Step Guide

First step: market research.

Market research involves finding out the “who, what, where, why and when” of your business, and while it’s not the most exciting part of your endeavour, it’s certainly an essential one.

It can be risky and even silly to assume that you already know the answers to these questions and then get caught out later on.

Here’s what you need to address at this stage:

Operational

• Where will you set up your food cart business?
• When will you open to ensure the best business?
• How will the weather affect your trade?

Target Market

• Who are your customers? What is their demographic?
• Competition
• Is there any competition? What do they offer?

Locations & Business Opportunities

Finding a couple of great locations will play a major factor in your success and it depends on several key factors:

• Where you’re allowed to park by law
• Where the customers are
• The prime hours for each location

Some great places and opportunities to consider for trading are:

• Office parks
• The business district
• Shopping districts or malls
• Popular tourist locations
• Sports venues
• Parks and beaches
• Bus and train stations
• College campuses
• Festivals and events
• Conferences and conventions
• Private events (weddings, birthdays, etc)
• Corporate events

Most of these locations will require permits and/or owner agreements, so make sure to check with your local authorities & institutions beforehand.

When it comes to festivals, events, conferences and conventions the best thing to do is to get in touch with organizers and lease your space well in advance.

Determining Your Food Cart Business Legal Requirements

You’ve probably noticed that most How-To guides on this subject place sorting out the legal requirements at the bottom of their To-Do list.

And here’s why: the permits and licensing requirements for food cart businesses vary from country to country, state to state, and even city to city, so making a definitive list with everything you need is close to impossible.

Only your local Health Department can provide you with the information that applies in your case.

At this stage, you’ll address issues such as:

• The street food vending regulations in your city
• Licenses and permits required
• The types of food you’ll be selling and how they’re handled, stored, thawed, and cooked
• Commissary requirements (the requirement to operate from a licensed commercial kitchen)*
• The size, make and the equipment of your street food vehicle
• The vehicle’s fresh water and waste water holding capacity
• Safe food handling course requirement
• Hygiene policies
• Pre-approval inspection of the equipment

* Most municipalities don’t allow food vendors to operate a food cart business from a residential kitchen and they require the use of a commissary – a licensed and inspected commercial kitchen.

Vendors have to report to the commissary each day of operation to prepare the food that will be served from the cart and to clean the vehicle’s equipment at the end of the day.

If you are selling prepackaged foods, you are not considered a food handler and may have less stringent requirements than if you are actually preparing foods or even scooping ice cream.

But as long as food is unwrapped, you are typically considered to be a food handler and must meet specific regulations.

While your cart or truck manufacturer will not know the nuances of each city’s requirements, they can usually help you meet specific health standards.

For example, all of our food carts are manufactured using food-grade materials for countertops and other parts/areas where food may be stored and prepared.

In addition, we work closely with each of our clients to adapt the carts’ cooking & water systems so they will meet all the health and safety standards specific to the vendor’s area.

Getting all the trading, health and safety qualifications in order will not only allow you to operate legally (and avoid hefty fines), but it will also help enforce the public’s hard earned perception that that those running a street food business are doing their utmost to meet and surpass sanitary requirements.

Basically, your legal status and reputation are on the line.

In addition to the food service permits and health requirements, you may also need to apply for:

• Business license
• State sales tax permit
• Truck/cart registration

To sort these out, the city hall or the county clerk’s office will usually point you in the right direction.

Keep in mind that before you can hit the road, health inspectors will check your vehicle. Usually, they look for:

• Proof of ownership, proper identification and license (of the vehicle)
• Proof of District-issued Food Manager Identification Card
• Food-purchase record storage and record keeping
• That your depot, commissary or service support facility meets your vending unit operation needs
• Copy of license for the service support facility and/or a recent inspection report

Food vehicles are typically inspected at least once a year by a health department inspector, sometimes randomly.

The inspector checks to see how food is stored so that it does not spoil and that it is kept at the proper temperature. All food equipment as well as sinks and water supplies are checked.

Commercial kitchens and garages in which food vehicles are kept are also inspected frequently and can be given high fines if they do not meet health and fire codes.

Some have been shut down because of too many violations. Likewise, trucks and carts have lost their licenses over repeated violations.

Editor’s Note: if you want to learn more about what it takes to launch a business, from a more general perspective, here’s a great resource to get you started: How To Start A Business: A Complete Playbook

Choosing Your Street Food Business Platform/Vehicle

Mobile street food businesses come in a variety of shapes and sizes, and deciding which is the right one for you depends on your:

• Start-up budget
• Time commitment
• Vision and the ability to fulfill it
• Experience at running a business
• Target demographic

Your options are: food stands, food carts , concession trailers and food trucks. Each of them has its own unique benefits as well as some disadvantages:

Food Stands

Food stands are essentially booths or stalls that are either temporary or mobile, and are used to sell everything from quick snacks such as bagels, pretzels and ice cream, to more elaborate meals.

Most food stands are usually operated indoors and they are an excellent choice in areas where outdoor selling is limited by cold or unpleasant weather.

Pros: low start-up and running costs, flexibility. Cons:  limited trading areas, limited inventory.

Mobile Food Carts

Pros: affordable, easy to customize, easy to move between locations (they can be pulled by a bicycle/car or pushed by hand), easy to park, easy to maintain, suitable for both indoor and outdoor use, may require less licensing than a food truck. Cons: not too much space for preparing elaborate dishes.

Concession Trailers

Same as food carts, concession trailers have been around for a long time and are often found at fairs, carnivals and sporting events.

Pros: low overhead costs compared to food trucks, more space for cooking. Cons: more difficult to move between locations, require bigger parking space both on/off-duty, involve higher operating costs.

Food Trucks

We believe food carts are the best choice, especially for first-time entrepreneurs. Their size, mobility and low running costs make them ideal for starting a profitable food cart business with the potential to grow and expand at a rapid pace.

Are Food Carts Profitable?

A food cart business can be very lucrative right from the start; however, this depends on many factors such as location, footfall, weather, product type etc.

According to our customers, if you can secure a good location for your business, you can expect between 100 to 400 customers per day (during weekends, festivals and public events), bringing in anywhere from $500 to $3,000 daily.

Choosing Your Concept, Menu & Suppliers

Whether they’re food carts , concession trailers or food trucks, most successful street food businesses out there have themes or concepts that are consistently reflected in all their elements: exterior design, branding, menus and recipes.

Your concept should be a means of distinguishing you from your competition and building your niche market. And, if you get it right, it can even draw media attention to your business.

This brings us to menu planning. Choosing what kind of food you’ll prepare and sell can be a fun task, and if you look at the carts, trailers and trucks operating on the streets, you’ll find that almost anything edible can be served as street food.

But there are a lot of factors to consider when it comes to menu planning, such as:

• What foods do you know how to cook?
• What foods do you enjoy cooking?
• What are the most popular foods in your area?
• What foods can you prepare relatively fast, repeatedly and without difficulty?
• What foods could your customers take with them easily?
• What foods have a good profit margin?
• What times of day will you be open for business?
• What are you going to specialize in?
• How many items will your menu have?
• Where are you going to get the ingredients from?

After deciding on the type of food you’re going to sell, it’s time to start working on recipes and experiment with various ingredients.

Once you’ve found a few favourites, test them on your friends and family first. Don’t be afraid or dismissive of criticism: it’s better to receive it from them.

The bottom line is, don’t start out with foods you have not thoroughly tested. This means you need to perfect each recipe to be sure it has the following qualities:

• It tastes consistently good
• It’s easy to make repeatedly in large quantities.
• It’s easy to serve
• It’s easy to store & carry

Next in line is figuring out your sourcing – where will you buy your ingredients from?

Sourcing your food can be an important factor in planning your purchases, schedule and menu items.

Common sources include wholesale food distributors, food manufacturers, local and regional suppliers, green markets and farmers markets.

Determining the right quantities is another matter that you’ll need to deal with, initially by trial and error. If you have the time, spend a couple of hours observing the street food vendors in your area. How many customers do they have per hour? When’s their busiest period? This will help you estimate a potential sales volume, which you can use to draft your shopping list.

Pay special attention to foods and ingredients that lose their freshness quickly; learn which are the items you can safely keep throughout the day and how many of them you can sell before they go bad.

Creating Your Food Cart Business Plan

Despite the low start-up costs involved, jumping in to street food without any kind of plan is a sure-fire recipe for disaster. The space is extremely competitive, and you need to have a very clear idea of the niche you plan to fill before taking the plunge.

Writing a business plan isn’t a complicated job and it doesn’t have to be very long. Keep it concise, to the point and ensure that you cover each of the following topics:

• Your business’s name
• Business management: who’s going to be in charge?
• Your mission statement: in one sentence, summarize the aim of your street food business.
• Your vehicle: are you going to use a stall, a cart, a trailer or a truck?
• Start-up costs: what do you need to buy to get started? What fees to you need to pay in advance?
• The daily operational costs: how much will you spend on ingredients and what are the overhead costs on a weekly or monthly basis?
• Funding and financial projections; where do you plan to get the money from to start the business and what are your projected profits/losses for the next month, year, 2 years etc? How will you maintain the cash-flow?
• Your schedule: will you work on the business full-time or alongside your day job?
• What’s your main competition and how will you differentiate yourself from it?
• What is your marketing strategy?
• Do you have the logistics in place to deal with delivery and customer service?

If you plan to focus on events, your food cart business plan should include a clear targeting strategy. Pitch fees will vary widely, and there are a whole host of other variables to take into account including total attendance, other traders present, and the demographic of customer that will attend.

A good idea would be to create a spreadsheet with all the events and street food opportunities in your area. The amount of options available could seem daunting in the beginning, so start by thinking about what kind of event or environment you would expect to see a street food business similar to yours.

The next step would be to attend a few events yourself, taking note of the businesses that appear to be doing well and why.

As a general guide, generic fast-food businesses that focus on sales volume fare well at large music festivals and other events where the food is incidental to the main experience, whilst high-end street food traders perform better at events in which the customer will be searching for a new taste experience.

However, all the preparation in the world can’t account for the unexpected, and you will find some events simply fail to produce the expected revenue.

Your business plan should account for this, and you should always have enough spare cash in reserve to act as a safety net when you run up against the worst case scenario

Your approach to branding and marketing is a vital part of your business plan. A strong brand will help you stand out from the crowd, which is important for attracting customers as well as for securing spots at venues.

Remember: you are often selling a lifestyle with street food, so your brand should have a good slogan and a clear identity which reflects this.

Social media should obviously be central to your marketing plan and a strong Facebook and Instagram presence will help you raise your profile and create an army of online followers who you can spread your message to.

Regularly update your profiles with good quality photos as they generate a lot of interest and always display your social media handles so your customers /potential customers can connect with you

Estimating Costs: How Much Does It Cost to Start and Run a Food Cart Business?

There’s no set formula for determining how much starting a street food business is going to cost you since the niche is very broad and there are too many possibilities.

But even so, if you were to estimate, here’s a general expense breakdown:

Food Cart Business

• $3,000 – $5000 on a fully equipped food cart
• $500 – $700 on your ingredients & initial food stock,
• $400 – $ 600 on permits and registrations,
• $500 – upwards on marketing,
• $500 for the first month to park and clean the cart
• $500 in other miscellaneous costs

For comparison purposes, here are the estimates for a food truck business:

• $50,000 – $75,000 on a retrofitted food truck
• $1,000 – $1,500on initial ingredients
• $2,000 on permits and licenses,
• $2,000 for the first month of a commercial kitchen rental
• $500 for the first month of parking and maintaining the truck
• $1,800 on kitchen supplies
• $3,000 on marketing and promotion
• $2,000 on packaging
• $500 in miscellaneous costs

Huge difference, right? Regardless of your choice, you need to do the math before spending any money so that you do not run out before you get started.

Final Words of Advice

Speaking with our customers about their businesses, we’ve learnt that a background in catering or hospitality isn’t necessary to succeed – indeed, a lot of successful food cart businesses were founded by people with no prior experience of serving food.

Their biggest allies? Great food, flexibility – the ability to pivot according to the market’s trends and demands, marketing – a well-thought strategy for promoting their business across multiple channels, and outstanding customer service.

Do you have any questions concerning our food carts ? Contact us and we’ll do our best to help you out!

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Carinderia business plan (with pdf).

• Food & Beverage

A carinderia business may be attractive and seemingly easy to set up: have a stall near your house, few tables and chairs, adequate cooking equipment and utensils and a good cook might be all you need to get started. But it’s actually a tough business to manage with low margins and factors that are hard to control. That is why, just like in any other business venture, careful planning and execution is key to getting the carinderia business off the ground and get started. A misaligned priority or missing out on a key component of the business could easily shut it down. So we came up with this basic business plan for those interested but unsure if carinderia business is the way to go. Just because you like the business does not always mean it’s meant for you. Thorough research and sufficient business support are needed.

Table of Contents

Market research

• Which segments do they belong to (low-wage workers, office workers, housewives, students, drivers, seasonal workers)?
• What is their corresponding buying power?
• Do they tend to be loyal at a specific eatery or can easily be swayed of their choices depending on available food, season, weather, etc?
• Are they encouraged to eat out or can easily switch back to prepared meals if provided with the opportunity?

Existing carinderias in the neighborhood . Identify them and ask yourself and others about them:

• Do they serve a good variety of food for customers ?
• Do they operate 24/7 or only during lunch/dinner or a certain times of the day?
• Do they operate as a legitimate business or behave like an extended table serving home-cooked meals?
• Do they source their materials from sustainable
• Do you or others have a good impression of them in terms of sanitation, food taste, price point, general ambiance, and customer service?
• Do they have generally favorable sentiment from customers?
• What are their advantages and disadvantages?

Urban planning and development. Think about what the neighborhood would look like in the next five to ten years.

• Are there proposed landmark buildings, infrastructure projects, new business establishments, or public projects forthcoming?
• Are there new schools, residential buildings, hospitals, or transport rerouting planned?

Available resources. This is key to sustaining the needs of your carinderia business.

• Are suppliers available nearby and accessible without investing a significant amount of money or time? They include meat, poultry, vegetable, seafood, or fruit dealers.
• Are there cheaper alternatives you can explore such as wholesalers who can give you better deals and stronger business relationships?
• Is it easy to find workers like waiters, dishwashers, cooks, assistants, cleaners, and cashiers who can augment the needs of a growing business?
• Is the power supply stable and does not require you to procure generators in case of a power failure?
• Is the water supply stable and does not require interruptions?
• Do you have existing materials and equipment such as fridges, freezers , or gas stoves that can be used and reduce initial spending to set up the carinderia business?
• Is there an ample disposal area to discard material waste?

Financial ability and literacy.  This is what everyone wants to discuss when planning for the business so this must be very important.

• Will you use your personal savings to invest in the business?
• Do you need to borrow money to finance the business?
• Do you have a credit line to use as a lifeline in procuring necessary materials?
• Do you or a partner have a background in accounting and basic concepts of cash flow?
• Are you familiar with the business licensing, taxes, wages, and benefits that go with the carinderia business?

Hopefully, the list provides a sufficient understanding of how suitable you are to pursue the business. This research is helpful not only for the business but also to prequalify you as a player in the business. Without due diligence and enough market know-how, challenges that would have been anticipated in this initial research stage could emerge down the road and it’s more difficult to back down and make hard choices.

Capital money

Some sources say us included, that a P15,000 investment will be enough to start the business, maybe as a food delivery business instead of a full-fledged carinderia entity. With limited capital money to buy bulk inventory of ingredients, food will be cooked in smaller portions, and orders are delivered to homes instead of accepting dine-in customers. But even before operations can begin, administrative expenses should be considered: barangay permits, rental fees, and so on. Profits will be minimal at around 5% depending on how you source your ingredients or save on costs (more on this later below). Breaking even will depend on your setup. If you are mostly utilizing your own resources such as vacant space in the backyard instead of renting a space in the market or family members helping out instead of hiring an extra hand, a significant amount of your capital expenses can be used for production. This counts utensils, cooking equipment, meat and seafood produce, vegetables, and condiments. Spending your capital money on a formal venue like a market stall may be more expensive but it also signifies your long-term commitment to the business. When the business falters when you find out your backyard does not have enough foot traffic, it’s easy to fold because you are less dependent on external factors. Hiring an experienced cook will help guarantee food quality especially if family members are less skilled or less committed to working for free for the family business. So it doesn’t mean that if you’re investing less in setting up your eatery business, you’ll more likely to succeed. Likewise, if you borrow a huge amount and are heavily invested in a proper venue, you’ll be less likely to prosper.

Carinderia design

The design of your eatery business will ideally evoke the character of your business: friendly and inviting, a place to relieve the cravings of a hungry stomach, and doubles as a place of socialization. Of course, we all imagine great designs as below with fancy design and bright, airy atmosphere. But we also think of practicality and associated costs. We ask ourselves:

• Do our customers stay long enough to marvel at the interiors or do we simply want them to spend half an hour so more customers can come in and eat?
• Do we wish to establish our presence as the talk of the town and generate word of mouth or even get featured in local magazines or TV shows?
• Do we have enough resources to execute our design plan? Money to pay a good interior designer. Materials to put brilliant design ideas into life.
• Are our ideal designs applicable to the neighborhood we wish to operate in terms of practicality such as comfort, ease of access, and efficiency in managing incoming and outgoing customers?

Manpower resources

Managing a carinderia business can range from an all-around cook/dishwasher/accountant/procurement officer to a full team of specialized roles. Depending on the scale of operation and number of customers that can be accommodated at any given time, here are some of those specialty roles: Cook – the heart and soul of the carinderia business. He or she conceptualize which types of food appear on the menu, handpicks the ingredients, slices them accordingly, and does magical things in the kitchen. Whether honed by skills passed on in the family or acquired in a culinary school, the cook’s masterpiece will be significant in customer loyalty and the carinderia’s reputation. Manager – often the owner of the carinderia business, he or she oversees the overall operation of the business. From ushering in customers inside to ensure a steady supply of food choices in the tray, he/she attempts to troubleshoot problems and achieve harmony in the operation. The manager can also dabble into cleaning up tables, assisting the cashier, verifying supplier deliveries, and makes quick resolutions on issues that may arise. Cleaner – this person ensures that the sanitation of the carinderia is in top shape. The cleaner makes quick work of tables and prepares them for the next customer. He or she ensures that leftover soft drinks, plates, and discarded food are away from the eyes of the public as soon as possible and makes prompt disposal of garbage. After operating hours, he or she makes a thorough cleaning of the carinderia: floors, tables and chairs, food shelves, kitchen and cooking area, and lastly, the toilet. Dishwasher – this role extends beyond cleaning dishes and other tableware, glasses, and cooking utensils during business hours. After hours, the role of the dishwasher will transform to that of the cleaner. This separate role manifests the importance of making the tableware clean; a singular presence of blemish can tarnish the reputation of the carinderia. This is especially crucial if the eatery relies on handwashing and without the help of a dishwashing machine. Cashier/Accountant – this person takes charge of the finances of the business. He or she collects customer bill payment, looks at the inventory of materials, analyze which menu items are profitable or loss-making, makes suggestions on the menu from a profit perspective. He or she also looks after the cash flow management and makes tight monitoring of expenses (LPG supply, electricity/water bills, supplier invoices, salary/payroll, and taxes and permits ) against income. Utility person – this person does everything not defined from the above list. This role can assist the above jobs or tasks that are not anticipated in the operation. He or she helps arrange the delivery of meat/veggies of suppliers, replaces broken bulbs or faucets, orders extra rice from other restaurants or condiments from the supermarket if supply is short, or keeps an eye on customers who try to steal items like cutlery.

Keeping carinderia operation costs low

In a business known for razor-thin margins, keeping operational costs low is key. There are expenses that you cannot avoid (permits, raw materials, equipment, and labor), but you can keep them low without resorting to unlawful practices to get the bottom line.

• Location. Rental costs cover a significant amount in a daily expense, so if you can set up in a space you own, that saves up a lot of money. It can be a small space at the beginning, as you start to attract loyal customers and build your carinderia’s brand. You can later move to a more prominent location and expect your loyal customers to follow.
• Labor. Employing family members can help mitigate labor costs, but it’s also important to realize that even if they are not working for free, and must be compensated in some shape or form. Their presence helps minimize expenses that would otherwise go to a skilled and experienced worker, but their lack of know-how can also be detrimental to the carinderia operation. If they lack exposure to the job, family members can fill roles (dishwashing, cleaning) that are not specialized (cooking, accounting).
• Materials. Will you require high-end meat cuts to achieve premium taste or do lower-grade meats still do the job? Will you use ceramic which is more stylish and food safe or plastic plates that are less risky to damage or breakage?
• Buy equipment at second-hand shops, shops winding down, or nearby auction events. This includes fridges, cooking utensils, tables, and chairs. Buying brand-new ones minimize the risk of breakdown, but if you know how to examine the quality of say, a freezer or the safety of a gas stove offered at a second-hand shop, you can save lots of capital money.
• Rent items you don’t need to buy outright. Tables and chairs are classic examples. Once you’ve grown the business, you can replace these with more appropriate dining furniture.
• No freeloaders. Except for family members, do not allow anyone else to dine at the carinderia without paying. You are running a business and not a charity so your decision must be respected.
• Marketing the business. Will you advertise in your local newspaper or promote it on Google My Business? Are you investing in great-tasting food and planning to make each customer the salesperson in a word of mouth advertising? Are you willing to offer discounts to customers for an honest positive review online? Or do you wish to get the attention of influencers promoting your carinderia in their Instagram feed or YouTube channel? There are certainly ways to promote your carinderia without spending top money on traditional advertising media.

Commitment to growth

Starting your carinderia business is the most challenging, just like in any other business. You set up your venue, acquire equipment and tools, human resources and promote your eatery to the public. That’s an investment of so much effort, not to mention your financial input in the process. And that’s even before you transact with your first customers. Sustaining the business is another beast to tame. As you get started, there are adjustments to make as everything is a new experience. But you dismiss these early challenges in the name of committing to growing the carinderia business. Are you willing or prepared to change your lifestyle and make this commitment? Not all carinderia follow the same timeframe as it depends on sourcing ingredients, kitchen manpower, or operation plan but it’s not unusual to observe certain owners expend a lot of energy and sacrifice a tremendous amount of time.

• 2am – Wake up to source the freshest produce as ingredients for the day.
• 4am – Return to the kitchen to process the ingredients — wash, slice, marinate, etc.
• 7am – Prepare the kitchen and its equipment to cook after deciding what is the menu for the day.
• 10am – Open the carinderia for an early brunch menu or early lunch orders
• 11am – Be ready for the rush of customers
• 2pm – Close the carinderia for midday cleanup and preparation for the dinner menu
• 5pm – Open the carinderia for dinner guests
• 9pm – Last dinner orders received
• 10pm – Close of business day, calculation of income, cleanup, etc

There are types of food that are considered can’t miss and often attract the attention of customers. But menu items can only materialize and make more sense if:

• they are easily sourced and profitable, even if they are quite expensive to buy from suppliers
• the typical customers are likely to pick them based on taste or financial power. How much will students, office workers, or tricycle drivers be willing to spend for lunch?
• they align with the timing of your operation. A menu of goto, tapsilog, lugaw or tokwa is good to start the day while preparing the main menu for lunch.

Depending on your market research, you might decide that your carinderia will only serve lunch as it’s the peak time of activity in the area. Maybe folks (students, factory workers, laborers) will likely return home and eat dinner prepared by their families. In that case, you can narrow down options, even though there’s a lot in common between lunch and dinner options for a typical Filipino appetite. Fixed menu or flexible menu? It’s certainly your call as you discern the pattern of your past customers. But it would be great to have a bit of variety (think of specials for the day menu) available to those who wish to explore new options. Or have a certain specialty like lechon or ginisang munggo available on a specific day. This can be a deliberate choice of day or due to the required time to prepare or sourcing of raw materials. We have a list of popular carineria menu but you can consider the following items as well:

• Adobong manok
• Adobong baboy
• Adobong pusit
• Adobong kangkong
• Chicken tinola
• Chicken afritada
• Pork menudo
• Pork sinigang
• Bistek Tagalog
• Inihaw na liempo
• Nilagang baka
• Bicol express
• Pork barbecue

Pick 3-5 main specialties and make sure you have enough rice! This staple food is a Filipino favorite and cost-wise it helps customers get full without spending much. A safe bet would be items that don’t spoil easily. Otherwise, food poisoning and other health issues can easily break your personal reputation and destroy the business. If you think offering unlimited rice (even as an opening week promotion) will attract customers without going in the red, it would be a good marketing approach.

Focus on cleanliness and carinderia hygiene

Many carinderia businesses in the Philippines exist in places that are less desirable for health reasons. Many are located near the road where food and customers are exposed to dust, smoke, and other sources of unpleasant odor. And just because nobody got sick does not mean you are operations are up to prescribed sanitation standards. Operating a clean carinderia will incur extra costs but this will always pay off as customers will appreciate how you take care of their well-being as much as your business bottom line. After all, you are preparing what they’ll eat and that’s a big deal health-wise. Cleanliness is not just about food preparation. It also includes the sanitation process when cleaning plates and cutlery, sourcing of your drinking water, cleanliness of hand towels, and condition of floors, food shelves, and toilets. These are things you not only consider but follow by heart.

• Ensure everyone involved in the carinderia operation has health clearance.
• Maintain cleanliness and safety in your kitchen area. Clean pots, pans and maintain the cooking area in an orderly manner. Wipe the floors to avoid slipping.
• Maintain cleanliness of floors by wiping off dirt and discarded materials as often as possible.
• Keep pets, stray animals away from your kitchen and dining area.
• Make washing of hands a standard procedure and provide appropriate facilities for both workers and customers.
• The kitchen crew must wear proper clothing (apron, gloves, masks, hair nets).
• Servers also need to wear clean clothing.
• Make trash cans available in designated areas.
• Dispose of garbage frequently and in an orderly manner.
• Have sanitizers available in the kitchen and serving area
• Use electric fans or mosquito coils to keep insects like flies and mosquitoes away.
• Make sure all food served is properly covered with lids, aluminum foil, or cling wrap to avoid contamination.
• Sanitize all kitchen utensils, cutting boards, plates, bowls, and pans in hot water and anti-bacterial solution.
• Store food in sealed containers and incorrect temperature settings.
• Do not transact with suppliers with questionable sources or low-quality materials.
• Clean knives, tongs, spatula and wipe them clean before usage to avoid cross-contamination between meats and other ingredients.
• Sterilize utensils and wipe them clean before access to customers
• Use separate serving spoons for every dish.
• Use separate kitchen equipment for cooked and uncooked ingredients.
• Dispose of used oil properly.
• Throw away food or ingredients if you are unsure of its quality.
• Discard items once they are past their expiry dates.
• Make sure you end the carinderia’s business day with a clean kitchen, utensils and cutlery, dining area, toilet.
• The following day, wash all plates, utensils, and cutlery again.

A carinderia business is a business that requires a lot of work and dedication, so it’s suitable for people who value hard work but have little capital money. It requires the full cooperation of staff and commitment to great experience — food service, food quality, great dining experience, and clean surroundings. That builds up over time and your effort and commitment will bear fruits sooner than you expect. Loyal customers will soon sing praises of your carinderia once you have put in a consistent effort to achieve that great dining experience. Good luck from Pinoy Negosyo!

Download PDF – Carinderia Business Plan

• 9 Filipino Dishes Your Carinderia Should Serve
• 7 Reasons Why You Should Open a Carinderia Business
• Basic Guides on Operating a Carinderia / Catering Business
• 5 Stressful Challenges Carinderia Businesses Often Face
• Refrigerator Buying Guide for Pinoy Business Owners

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Tips on how to start your own food cart business in the philippines.

A food cart business is one of the most common, and at the same time, ideal business for Filipinos because of our love for food. A lot of entrepreneurs have found their success from starting from this small business.

You, too, can be successful in a food cart business because aside from being affordable, it is can also be very popular especially when you have found a good spot and you have chosen to sell a product that is surely going to be wanted and loved by most people.

If you can’t wait to start this business soon, here are the most important tips you need to bear in mind.

1. Choose your main product line. This is the first and the most crucial step you will be making. It is critical that you choose a product that is both affordable and delicious for your consumers. You have to make sure that your product is unique, otherwise, it will be more difficult for you to establish your brand.

2. Find a good location. The location of your business will also have a significant impact on the success of your business. You must be able to find a spot where your food cart will be highly visible and a location where there is high foot traffic. It will be better if you take time to do a little research on this.

Read also:  How to Find the Best Business Location

3. Develop a concept for your cart. Depending on your choice of product, the concept of your cart should also match the product you sell. If you are selling Japanese food then, the theme of your cart should also be Japanese. Make sure that your cart also looks appealing and attractive to passers-by so as to attract more customers.

4. Ensure food sanitation. When you are in the food business, one of your priorities is making sure that the food you sell is clean. And not only that, your food cart should also be sanitary. You must implement strict processes when it comes to food handling and preparation because you don’t want to be held accountable for someone getting sick because of your product.

5. Register your business . Make sure to register your business and secure all the permits and legal documents before you start with your business.

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5 Low-Cost Small Food Cart Business Ideas You Can Easily Start

If you have a food business idea, you might want to start looking at building a food cart. Many business owners became millionaires thanks to their food carts . You can easily change your location, alter your menu to suit the tastes of the crowd, and frequently, you can operate without paying rent.

Don’t let your budget deter you from starting your food business. Even with a small amount of money, you can still start a low-cost food cart business. To get started, we listed some of the best low-cost food cart business ideas you can start for less than P1,000

1. Fish balls

Fish balls, kikiam, tokneneng, and other fried street foods are in-demand snacks wherever you go. You can easily sell store-bought products in your food cart. But following the golden rule in business, you want to come up with something different that your customers will crave. So, it’s best to research online for homemade fishball recipes or best sauce recipes and experiment with which ones your customers love. A business owner earns P120,000 a month by selling her special fishball sauce . There’s so much potential in street foods!

You might be surprised at how the humble siomai still continues to be a marketable product. A siomai stall in Munoz sells over 100 kg of siomai daily . That’s how powerful the humble siomai is! It’s also affordable to get started, especially if you get your meat from the market. You can also give your siomai a twist, like how a business offers flavored siomai.

3. ‘Samalamig’ or beverages

Samalamig or cold beverages are also a low-cost but profitable idea for your food cart business. You can get started with the basic flavors such as orange, pineapple, buko juice, iced tea, etc. But you can also expand your ‘samalamig’ business by researching interesting flavors such as magic water and more.

4. Ice Scramble

The popular cold treat of our childhood remains a low-cost but lucrative business idea. You can move your food cart outside schools, churches, or near subdivisions. This is a great idea because they don’t need many ingredients to get started. Plus, you can be creative and offer add-ons if you have an extra budget. An ice scramble business earns over P30,000 a month by offering huge cups that friends can share.

5. Sweet corn

Sweet corn is also an easy-to-start food business because you don’t need many ingredients. You can buy canned sweet corn, cheese powder, and some more add-ons to make it special, and viola! Research other ways you can creatively offer sweet corn and you’re good to go.

We hope our list gives you the inspiration to get started today. We picked items that were simple to make, didn’t require many ingredients, and were Pinoy favorites. So, get started, and good luck!

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