How to start a food takeaway business in Australia

In the current economic climate, takeaway food services are a good business choice. This is because of the increasing demand for fast food in Australia. Open a takeaway food business is a demanding but rewarding venture. It's essential to develop a business strategy and understand Australian food regulations before starting a food-related business.

Learn the essentials of opening a takeaway business in Australia:

What is a food takeaway business?

Takeaway food businesses provide meals and snacks that people can pick up, eat off-site or at home. 

How to start your own takeaway business

Start a food takeaway business by following these steps:

1. Identify your niche. Choose the take-out food that your target market will enjoy. It could be a healthy take-out food for office workers or a fast-food restaurant. 

Find out what their budget is and who they are. Consider your competitors and how you can offer something different based on price, service, cuisine, or perceived quality.

2. Select a business structure. Select a structure for your business that fits with your budget and goals. Operating as a Sole Trader, Partnership or Company is a popular option for many business owners.
3. Create a business strategy. Create a plan that outlines your goals and tracks your progress. Include your research into the competition and projected costs and profits. A business plan can also help convince potential lenders that your takeaway store is worth investing.
4. Buy equipment and find a suitable location. Find a commercial space that allows you to sell your food near potential customers. 

You should also consider what could happen if you lose customers due to a lockdown or any other closures of restaurants and shopping centres. You will also need to buy or rent the appropriate kitchen and serving equipment.

5. Create a logo and brand name. A logo and name will also be needed to promote your online presence and shop. You can create your logo using these tools and services if you do not have the budget to hire a graphic designer.
6. Register your business. The majority of people need to register their company name with ASIC and obtain an Australian Business Number.
7. Food safety laws. In many states, having at least one Food Safety Supervisor who is trained in the field of food safety working for a takeaway company is either mandatory or highly recommended. Online legal advice or templates may be needed. You might also need to consult a Commercial Lease Attorney and purchase Public Indemnity Insurance.
8. Marketing your business. Online presence is important to attract new customers and encourage word-of mouth business. You can do this by maintaining your Google My Business listing and managing the reviews. Shopfronts in areas with high foot traffic should invest in signs that appeal to your target audience. Flyer menus that include discount codes can also be an effective way to reach out to new customers.
9. Food Delivery Services. You might rely on Uber Eats if you run a shop that is less visible. You'll need to invest in photography skills so that you can take beautiful images of your food for delivery apps. This will help customers to choose you instead of the competition. Consider the costs of the commissions taken by the app and the potential new income and customers that the app may bring. 

Consider creating a website, or a social media account for your takeaway business to give it a more accessible face. This is especially important if the app links directly from your shop.

What are your strengths and weaknesses?

Although there are no formal requirements to start a food takeaway business, experience in the food and hospitality industry is extremely valuable for all prospective business owners. 

Even a few hours of work, whether it is washing dishes, serving customers or preparing food, will give you an idea of how a takeaway business operates.

You'll have to decide what kind of takeaway business you wish to open. It's vital to research the market to find a business which stands out from your competitors.

Due to the fierce competition in the industry, you should create a business plan which outlines your business and the way it will be run. It's also important to learn how to promote your business when you first launch your company and grow your client base.

The right licenses

Don't get caught up in the excitement when you start your business. You need to first obtain licenses and registrations. These licences are for the protection of consumers, and to ensure that you adhere to food safety and hygiene standards.

Each state has different licensing requirements. You will, as a rule, need to register and notify your business at your local council.

You will be asked questions during registration such as what food types you plan to serve, who is going to consume your food, if you are selling pre-packaged foods, and what kind of business you intend on running. Your licence will need to be renewed every year or few years.

Find out what you need to do and how to get started with your takeaway business by visiting the Australian Business Licence and Information Service.

Requirements for courses or qualifications

All employees in the food industry are required by law to complete a course on food safety and handling. You can enrol in the course via:

• Online or classroom-based accredited courses
• Training in-house by an accredited consultant
• Manuals are used to train staff

It is mandatory in many states such as NSW VIC QLD ACT to have a Food Safety Supervisor. Online training or certification is available for Food Safety Supervisors.

Invest in the right software and equipment

The initial investment required to start a takeaway business is a large one. You will need to rent or buy a space in which you can set up your shop. You may need the following equipment:

• Commercial kitchen equipment such as a rangehood, oven, walk in cooler, freezer, and cooking utensils
• Catering and grazing boxes, Takeaway containers, cutlery and takeaway boxes are all examples of the takeaway supplies you need.
• Safety equipment such as fire extinguishers and other safety devices
• Cash register or Online Payment gateway
• If you plan to provide seating, tables and chairs are required.

Select a business structure

You must choose the type of company you want to register. Each of the three business structures most commonly used in Australia has different costs, levels of control and tax implications.

• Single Trader Income from the business is taxed in conjunction with personal income of the sole proprietor. You are responsible for the entire business.
• Partnership. Partners pay tax on their share in the Partnership's income. A partnership is two or more individuals who enter into business together. All partners are equal in their control of the business.
• Company. A business that has its own legal status and pays corporate tax rates. Shareholders make the major decisions.

Online access to legal documents and services

Before you launch your business, it's essential to have legal documents. These agreements will protect your business and in some cases clarify your obligations as a company versus those of your employees or customers.

You may require the following documents to start a food takeaway business:

• Wholesale Agreement When buying in bulk, outline your relationship with your supplier. This includes the price, quantity, and quality.
• Insurance such as public liability insurance, Building and Contents Insurance and Employer's Liability Insurance.
• Employment Agreement If you plan to hire workers.
• Disclaimer for Websites protects your copyright and liability.
• Privacy policy. A notice that explains how your website will use and not use customer information.

FAQ

Can you make money by owning your own takeaway business?

Restaurant & Catering Australia reports that the average profit margin for the industry in 2019 was 4.2%. The low profit margin is primarily due to competition and costs. The good news is that takeaway food businesses are able to keep their operations leaner while keeping costs lower than a full-service establishment.

The success of your takeaway business is a combination of many factors. These include high-quality food, service, price, brand/reputation, and cash flow.

How can I expand my takeaway business?

Customer service is the best way to grow a business. When you are just starting out, marketing is key. This can be as easy as updating your social networking accounts or handing flyers out. Reaching out to customers to ask for feedback and referrals is another way to grow your company.

Should you sign up for a food-delivery app?

COVID-19 has accelerated the demand for convenience by consumers, which has led to an increase in popularity of food-delivery apps such as Uber Eats and Menulog. Research all the food delivery apps in your area before deciding to partner with one. If you want to know if this option is right for your business, look at the percentage the food delivery app takes from it.