Urban population growth has stimulated a rise in the number of street food vendors in many cities throughout the world (including Lagos). Demand for relatively inexpensive, ready-to-eat food has increased as people have less time to prepare meals. In many parts of the developed economies, street food has become an integral part of the food scene.
The term "street foods" describes a wide range of ready-to-eat foods and beverages sold and sometimes prepared in public places. Like fast foods, the final preparation of street foods occurs when the customer orders the meal which can be consumed where it is purchased or taken away. Street foods and fast foods are low in cost compared with restaurant meals and offer an attractive alternative to home-cooked food. Despite these similarities, street food and fast food enterprises differ in variety, environment, marketing techniques and ownership.
Notable Statistics i) The annual sale of Street Food in Jogor, Indonesia is about $67million. Also, there is a $2billion annual sales revenue in Malaysia for every 100,000 food carts ii) Street Food Vendors constitute about 26% of Central America’s workforce. The Street Food Industry employs 90%, 53% and 40% of women respectively in Philippines, Senegal and Indonesia respectively. iii) In 2015, the U.S. food truck industry was valued at $857million. Regulatory Requirements To start a mobile food business, you will require the following; 1) Business Registration: Your business must be duly registered with the Corporate Affairs Commission (CAC). 2) Local Government Food Permit and Business Permit: A food/business permit must be issued from the Environment Service Department of the LG/LCDA where the food truck is domiciled. Food trucks and facilities are inspected by health officers for safety and health concerns. Once the permit is approved, business operations can commence. Please note that if you decide to change locations (move another Local Government Area), a new permit will be required to operate. 3) Other Local Government Fees/Levies: Confirm with your local government if you require any other permits to operate within the area. 4) Evidence of Tax Payment: The payment of tax by all businesses is a requirement of the Lagos State Government. Ensure you have photocopies of any tax payments ready for presentation when approached by authorities.
5) Waste/Trash Consideration Arrangement: It is important to dispose your waste properly. Main Attractions ✓ Attracts middle class customers from places of employment especially if food truck is situated in a prime location. ✓ Easy to prepare meals ✓ The food truck is away from road networks and does not cause traffic. ✓ Proper food hygiene and preparation standards can be easily observed. ✓ Little or no business competition in Lagos State. ✓ Creates employment especially for people finding it difficult to obtain work in the formal sector ✓ Provides an alternative meal/food option thereby enhancing variety and introduction of new cuisine. ✓ For the low-income workers, street foods and snacks are essential. In many countries, workers as well as students have their first meal of the day from street food vendor. Challenges in Doing Business ✓ Business Cost: The business is capital intensive. A small sized motorcycle mobile food truck costs about N1 million on average ($3,000). ✓ Disturbances by Local Government Authorities and Lagos State Task Force: Most business owners complain about disturbances from the Local Government Authorities and the Lagos State Task Force. This should not be a cause for concern if you have the required permits and documentation to operate.
✓ Disturbances from thugs and unauthorised personnel: This may affect greatly affect business operations. Ensure safe locations are chosen to minimise risk and exposure. Very little is known about mobile food consumption in Nigeria despite being a sector which could generate numerous employment opportunities and provides an accessible source of food to a large population. We recommend that this industry should be adequately supported to ensure its sustainability to become an alternative form of employment for the youth population.
