The food truck industry in South Africa has transformed from a niche market to a profitable business idea in the past decade. From the ubiquitous ice cream trucks, food trucks have evolved to offer unique culinary experiences from poke bowls and wood-fired pizzas, and traditional South African dishes like pap and braaied to American-inspired fare like burgers and hot dogs.
If you are an aspiring entrepreneur with a passion for food, combining your interests can be a lucrative business idea. We've compiled a comprehensive guide to walk you through everything you need to know about starting your food truck business in South Africa.
6 Steps to open a food truck business in South Africa
1.) Market research and concept development
Food trucks in South Africa offer everything from international cuisines to health-conscious options. Finding your niche in this market will be the key to your success. Visit local markets to observe which food trucks are popular and speak to food truck owners and event organisers to understand the food scene.
Once you've understood the market, identify opportunity gaps and inspiration for your truck's concept. Is there a specific demographic you can target? Or a novel take on a currently popular food trend?
2.) Develop a strong business plan
A solid business plan is the foundation for any successful venture, and a food truck is no exception. It serves as your roadmap and shows potential investors the viability of your business idea.
How to write a winning business plan for your food truck
- Business overview
A business overview must include a mission statement describing your food truck concept, your vision for the truck and what makes it unique. Also, define your business structure, for example, a sole proprietorship or a partnership, and detail the legalities required to start your food truck.
- Market analysis
Analyse the food truck market in your area, including your competitors and target audience. Highlight industry trends in Australia and explain how your truck will stand out.
- Menu and pricing strategy
Your menu is the core of your business, so ensure it aligns with your concept and is practical for a mobile kitchen. Keep pricing competitive yet profitable.
- Start-up costs and funding
Provide a detailed breakdown of start-up costs like the truck, equipment, permits, branding, etc. Mention how you will fund the business - whether you plan to use your savings, apply for a loan or find investors for your food truck business.
- Financial projections
Project your revenue and expenses for the first 1-3 years. Include fixed and variable costs, define your break-even point, and outline your growth strategy.
- Operations plan
This includes the day-to-day logistics of running your food truck, including operating hours, staffing, supply chain management, and workflow processes.
3.) Licensing and regulations in South Africa
It is important that you comply with all South African laws and regulations, which include municipal by-laws.
These are the licences, permits, and regulations you will need before launching:
- A driving license
- A business licence
- Certificate of Acceptability ( COA), also known as a food-handing business licence.
- Gas Certificate of Conformity
- Liquor licence (if you plan to sell liquor)
- Mobile Food Vendor Permit
- Food Safety Training
A Music Licence if you plan on playing music. This can be obtained from SAMRO (South African Music Rights Organisation) and SAMPRA (South African Music Performance Rights Association).
4.) Design a winning menu
Your food truck's menu and concept are crucial to its success. Focus on creating a simple, unique menu that caters to diverse dietary needs. Price your items to cover costs while providing good value to customers.
Asian-inspired food, pork belly and ribs, Indian food and bunny chow, gelato and artisanal coffee are some popular food truck concepts in South Africa.
5.) Equipment and setup costs
Starting a food truck business requires a significant investment in equipment, setup costs, and ensuring compliance with health and safety regulations.
Essential equipment and expected costs
- Food truck or van (new, used, or customised).
- Truck modifications
- Cooking equipment (grills, fryers, refrigerators, etc.).
- Power sources (generators, battery systems, solar).
- Refrigeration and storage
- Sinks and water tanks.
- Serving equipment (packaging, utensils).
- Point of Sale (POS) system for payment processing.
- Branding and marketing.
- Ongoing Operational Costs (fuel and maintenance, food and ingredients, staffing).
- Insurance
6.) Choosing the best spots for your food truck
The success of food trucks relies heavily on foot traffic. You need to strategically position your truck in areas with a high concentration of potential customers, like:
- High-traffic areas like CBDs, tourist hotspots and university campuses.
- Live events such as festivals, weddings and markets like LoCrate Market in Soweto; BrownSense in Johannesburg and Cape Town and Fourways Market.
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Catering vans for private events, such as weddings, corporate functions, or birthdays.
One of the advantages of owning a food truck is mobility. Many successful food trucks move between multiple high-traffic spots to reach different audiences on different days or times of the week.
Common challenges and pitfalls to avoid
Like any other business, running a food truck comes with its own set of challenges. Being aware of these common pitfalls can help you avoid costly mistakes. Here are some common pitfalls you should avoid:
Ignoring weather and seasonality
A food truck's success depends on weather and seasonality. Bad weather can reduce foot traffic and sales. To succeed, cater to the weather by offering hot soups in winter and refreshing smoothies on hot days.
High competition in urban areas
The food truck scene in South Africa is competitive, with many businesses vying for attention in popular areas. Assess your competition, and find ways to make your food truck unique.
Inefficient workflow and menu planning
Operating in a small kitchen with limited staff can be challenging, especially during busy hours. Simplify your menu and kitchen setup to allow quick service without compromising quality.
Failing to comply with local regulations
Regulations for food trucks vary in South Africa, and failing to comply with these can result in fines, forced closures, or even the revocation of your operating licence. Stay on top of local laws and ensure your truck and staff meet health and safety requirements.
Underestimating ongoing costs
Many new food truck owners assume start-up costs will be lower than a restaurant, but expenses like the truck itself, equipment, permits, and insurance add up quickly. Ongoing costs, such as fuel, maintenance, and ingredients, can strain cash flow, so ensure you have enough working capital for the first few months.
Lack of marketing and branding
Many food truck owners overlook the importance of branding and marketing. Building a unique and recognisable brand can make all the difference in a crowded market. Use social media to your advantage and build a loyal following.
Successful South African food trucks
Wahine Food Truck (Cape Town)
Wahine Food Truck was established in 2014 by Richter Kriek and Samantha Erasito. Their ever-changing menu comprises an array of cuisines, from traditional Hawaiian and Fijian to Korean and Japanese-inspired dishes. They are popular for their generous grills, colourful salads, crunchy pickles, and vegetarian and gluten-free options.
Balkan Burger Bus (Johannesburg and Pretoria)
The Balkan Burger Bus is a popular food truck in South Africa, known for its authentic Balkan-style burgers and other dishes inspired by the flavours of Serbia, Croatia, and Bosnia. It was launched by the brother and sister team, Bojan and Lidija Ivanovic, on a hunch, with only R 5 000 in 2012. Their signature "Balkan Burger" features a unique patty blend of beef, pork, and lamb, infused with traditional spices. The food truck's high-quality, locally sourced ingredients and authentic recipes have made it a favourite in South Africa's food truck scene.
3 Cities Where Food Trucks Are Thriving
1.) Cape Town
Known for its inherently multicultural society and diverse culinary scene, Cape Town has a bustling food truck culture. Trucks offering everything, from gourmet burgers to international cuisine, can be found at popular markets like the V&A Waterfront and events like the Cape Town Street Food Festival.
2.) Johannesburg
South Africa’s largest city, is a hub for street food innovation. Food trucks are a common sight at events, markets like Neighbourgoods Market, and trendy areas like Maboneng, offering a variety of global flavours and local specialities.
3.) Durban
With its rich blend of Indian, African, and colonial influences, Durban has a growing food truck scene. Trucks specialising in everything from bunny chow to fusion dishes are popular at markets like The Morning Trade and beachfront spots, catering to locals and tourists alike.
It's time to get on the road
The South African market is one of the leading emerging economies on the African continent, and there is potential for high growth in the food truck industry. Research your local market and food trends, stay on top of licences and regulations, and you will soon be the most popular food truck in South Africa.
FAQs
How much does it cost to start a food truck in South Africa?
Costs could range from R $50,000 to upwards of $150,000 depending on size, features, and equipment.
How much do food trucks make?
Food trucks operating in less busy areas may earn around R20,000 to R30,000. A well-established food truck operating in busy areas or at popular events can earn between R30,000 to R80,000 per month.
Do I need a licence to start a food truck?
Yes, all food premises must have a Certificate of Acceptability (COA), also known as a food-handing business licence, in possession.