Usually, food entrepreneurs are opening either an EU (sole trader company), a partnership (GbR, OHG) or a limited company (UG, GmbH). Sole trader companies as well as partnerships can be created easily and for a small amount of money. However, the person(s) or partners are personally and unlimited liable. In order to reduce risk with bigger investments, it is recommended to created a limited by shares’ company. The liability is then limited to the company’s assets but the creation of the company will be more expensive and higher costs will follow.

says our expert Stefanie Rothenhöfer | FEC

Do you trust each other and have respect for each other?
Which skills are bringing the other founders?

The founding team is most of the time the first criterion for a successfull new venture. That’s why the partnership must be exclusively based on trust and respect. In the best scenario, you will spend a part of your future together, celebrate successes but also face stress situations together. While creating your team, you should take into account, which competences each of you is bringing to the business. It is important that most of the daily business requirements could be done by the founding team from the very beginning on. Before getting an investment, it would be helpful to make a test phase together (for instance during a supper club, the opening of a street food stand), in order to test how you work together.

says our expert Stefanie Rothenhöfer | FEC

Own capital & Love money (family & friends)

House bank
Crowdfunding
Investors/Crowdinvesting

It is recommended to use your own capital at the beginning in order to test the business idea at a small scale with low risk. The conventional way of getting capital leads to a bank, which will be involved in all further business transactions. Usually, the bank will ask you to bring 20-30% of the total amount needed. The credit needed depends on the external funding possibilities. Business ideas with a broad public relevance or social focus can often be financed by crowdfunding campaigns. Concerning a financing by crowdinvestment or business angels, the investors will mostly give advices to the founder(s) and take a share in the capital involved.

says our expert Stefanie Rothenhöfer | FEC

During the concept creation.

You should start to think about taxes while creation your concept. You must take taxes into account while writing your business plan. The bank or investor will quickly know if founders calculated the finance planning taking it into account or if they are surprised by this theme. That’s why the founders shall get in contact with a competent accountant who will help them created the finance planning and give first information about taxes.

Income taxes
Business taxes
Other taxes

If you are not affiliated to the “small companies regulations” (revenue < 17.500€ for the first year and < 50.000€ for the following years), you will need to pay income taxes on a monthly basis. At the end of the year, you will need to make a final income statement as well as a yearly balance sheet. This needs to be submitted depending on the legal form either as a revenue-surplus statement or as a balance sheet and an income statement. Earnings are subject to income taxes. In addition, commercial and vehicle taxes may apply.

says our expert Stefanie Rothenhöfer | FEC

The founder can delegate mostly everything concerning accounting, from cash accounting to invoices’ payment. The founder should however control and do regular reporting in order to keep an eye on important metrics.

VAT: 12% of your daily gross revenue
Income taxes: depends on how your business’ success

Taxes will depend on your revenue and the kind of tax you need to pay. VAT is usually 12% of your gross revenue. Income taxes won’t be a fixed percentage of your revenue. However, if you expect your yearly revenue to be of 50.000€, you should put 25% of this amount aside, which means 1.050€ per month.

VAT was the subject of a lot of changes in the past few years. Under the German law, you are allowed to sell food with a discounted VAT (7%) if the following statements do NOT apply:

– the service personal serves food directly on the table
– you are providing seats for consumption
– individual consulting for the selection of food (for instance, menu planning for a wedding).

In summary, a snack stand may tax its sold food at 7% only if it does not offer seats but only set up tables and if the dishes are disposable tableware and do not need to be cleaned.

The new law brought a few changes in 2016. As of the 01.01.2016 (transition period ending the 31.12.2016), all the electronic cash register systems must meet and record the following features:

– all journal data,
– all data of setting updates, master data changes and programming,
– plus, all data must be able to be read in the GDPdU format.

– document revenues and purchases
– revenue-surplus accounting
– tax return

In Germany, anyone operating a business must pay taxes. Thus, each business owner must document its sales and purchases. All this must be reported to the tax authorities at the end of each accounting year in form of a revenue-surplus declaration and a tax return.

– Net sales,
– cost of goods sold,
– workforce.

Every business owner shall be aware of his net sales, his cost of goods sold and his workforce costs and verify them on a regular basis. It is essential to have all these metrics always in mind in order to identify vulnerabilities and eliminated them at the very beginning.

Health Insurance and Care Insurance
Public liability insurance
additional insurances

In Germany there is a duty of a statutory or private health insurance for every entrepreneur. Also, you must subscribe to a liability insurance before starting with your activities. In the long term, further insurances such as a disability and accident insurance are recommended. Whether you open a food truck or a restaurant, you will need to subscribe to other insurances (see corresponding category).

The “Rote Karte” means that you have been instructed according to the law for protection against infections.
Anyone working with food in Germany needs the “Rote Karte”.

As soon as you work with food and offer it for sale, you (and all your employees!) need the “Rote Karte”. It proves that you have been instructed about how to handle food from a hygienic point of view in order to avoid the apparition of food specific diseases. The instruction has to take place before you start working for the first time with food. You have to be able to present your “Rote Karte” at any time during your working hours.

says our expert Stefanie Rothenhöfer | FEC

The “Rote Karte” means that you have been instructed according to the law for protection against infections.
Anyone working with food in Germany needs the “Rote Karte”.

As soon as you work with food and offer it for sale, you (and all your employees!) need the “Rote Karte”. It proves that you have been instructed about how to handle food from a hygienic point of view in order to avoid the apparition of food specific diseases. The instruction has to take place before you start working for the first time with food. You have to be able to present your “Rote Karte” at any time during your working hours.

says our expert Stefanie Rothenhöfer | FEC

HACCP= Hazard Analysis Critical Control Point, for all rooms, equipments, employees, cleaning, desinfection, etc.

The law says that all commercial stores selling food must conduct control on hygiene and food on a regular basis and following several control points.

All the critical factors that could affect and infect food must be controlled, analyzed and eliminated. Critical control points are specified in order to avoid risks.
On top of it, you must have a cleaning and hygiene plan, a knowledge on how to handle sensible products (fish, poultry, eggs, etc.), temperatur controls in fridges, etc.

You should basically design your menu depending on the season and on the region you want to trade in, and do the shopping respectively. Therefore, you should look for farmers and producers in your surrounding.

In our category “Servicepartner-purchasing” we are providing you with a list of different regional suppliers.

says our expert Stefanie Rothenhöfer | FEC

Your story should answer the following questions: what is the reason for your self-employment? Where does your passion for good food come from? Where are your recipes coming from? Where do you get your ingredients from? What makes your dishes unique?

says our expert Stefanie Rothenhöfer | FEC

Interesting content
Regularity

The use of social medias will enhance your visibility on the market and I will help you to communicate easily (and for free) with your “fans”. The success factor of social medias if that you post regular content that catches up your target group (for instance, while testing a new recipe, posting a picture of your visit at farmers places in research of a good supplier). If you do not have the feeling of being a good social medias’ communicator, you should ask someone (a friend, someone in your family), to take care of it for you.

says our expert Stefanie Rothenhöfer | FEC

Ella Luna: The crossroad of should and must – find and follow your passion

Jen Sincero: You are a bad ass – Stop doubting your greatness and start an awesome life

Jonathan Safran Foer: Eating animals

Karl-Heinz Hänssler: Management in der Hotellerie und Gastronomie

Milena Glimbowski: Ein guter Plan

recommends our expert Stefanie Rothenhöfer | FEC

The content of this website has been compiled with meticulous care and to the best of our knowledge. However, we cannot assume any liability for the up-to-dateness, completeness or accuracy of any of the pages.
Also damages of any kind that have occurred through the use of this information and can lead to potential liability claims against the author are excluded. Any reproduction, retransmission and copy even partially or the content requires the written consent of the website owner.

Business registration, tax number and red card
Liquor license
Berufsgenossenschaft
Bauamt
LaGeSi
GEMA
Beside the business registration, the application for the tax number and the red card, you will need to apply for a liquor license to your district’s commercial office (Gewerbe- und Ordnungsamt). The company must be registered at the professional food and restaurants association (BGN). The Construction and Housing Authority (Bauamt) of the district approves new constructions and building modifications as well as changes of use of the commercial store. The State Office for Health and Technical Safety (LaGeSi) is responsible for the safety and health of employees. If you decide to play music in your restaurant (including radio / TV), you will have to register to the GEMA. In addition, fees to the public broadcaster (GEZ) will be due.

A license is required if food and alcoholic drinks are available for consumption in the store.

say our expert Stefanie Rothenhöfer | FEC

Information about
– people
– space
– type of business

The concession will be granted to specific person(s) and for specific area of the commercial store. It depends on the type of business you are running: how you are conducting your operations, what are the operating hours, the type of food and beverages you are providing, etc. Something that is not clearly described in the concession is not allowed.

Proof of a suitable restaurant (preliminary contract, lease, purchase contract)
Valid residence permit for foreign citizens (out of the EU)
Certificate of the IHK on food regulatory issues (delivered after a 4h class)
Police clearance certificate (registry office)
Central Trade Register Extract (registry office)
Tax clearance certificate (tax office of your city/district)
Red Card (Health)
Plans, unless it is a new direction

The location must suit your concept
You will need to pay a special attention to the selection of your location. The concept must suit the location. First, you will need to know if your concept will be more a daily or an evening concept. Will the turnover be generated by a high number of visitors (each one generating a small revenue) or by less but wealthier clients? That’s why it is important to know if the location’s revenue is mostly generated by stamm guests or by tourists and people passing by. If your location is a bit isolated, you will need to make more marketing actions. Once you’ve narrowed down the rough location, it is recommended to scan vacant object in the selected district and get in touch with the manager or the owner of these properties.

Recommends the DEHOGA Berlin

possibly make an application for renovation / conversion of the property
Complete rental, lease or purchase agreement
The signature can be done only after a lawyer has reviewed the contract

If you are taking over a store that wasn’t a restaurant nor a gastro-store before, you must ask for a conversion permit at the construction office (Bauamt).

If the property already had a gastronomic function before, you must check if the property meets the conditions of your concept. The best way to do it is to visit the store together with someone who has experience in constructions work (most particularly in electricity and water matters). He could make you an overview you coming renovation costs. Furthermore this will give you more power while negotiating a possible transfer fee (Ablöse).

Exclusion of liability for the predecessor
Check license restrictions
Verify if disabled toilets must be installed

If applicable, you are obliged to take over all the employees of the business at the same conditions they had. You should definitely check with the trade office, if the business has any running sanction concerning security and/or hygiene. If the former owner had license restrictions, they must be taken into account and can be changed if necessary. In addition, you need to check if the business already has a disable toilet and/or if you need to install one.

Examination on concession ability
Request for conversion
Request for concession
Check how the changes could be made

When taking over a store that was previously not a restaurant, you must check with the owner, the public order office as well as the food inspection office, if the premise can possibly have a concession. After that, you will need to apply at the building authority for a conversion of the store. The building authority will then check if the store can be used as a restaurant. On your side, you should check with the owner if the conversion and installation works (most important thing, the extraction) can be made, and whether the store is easily and permanently accessible for suppliers. You must clarify if the owner will pay a part of the investment costs involved in the conversion/renovation and (if applicable) if you need to pay any transfer fee for an inventory.

Business liability insurance
Content insurance
Glass insurance
Business interruption insurance
Legal protection insurance

In addition to the personal insurances (health & care insurance) you should subscribe to:
a business liability insurance (which protects you against damages caused to people and things, wealth, environment and your commercial store); a content insurance (which protects you against damages caused by fire, burglary, theft, vandalism, damages caused by water and other elemental forces); a glass insurance (against damages on glasses in- and outside your store and also on advertising signs and neon lamps); a business interruption insurance (which will cover your lost profits, running costs and salaries in case of a non wanted business interruption), as well as a legal protection insurance.

says our expert Stefanie Rothenhöfer | FEC

A rough rule of thumb says that the rent should be reimbursed in 1.5 opening days (excluding VAT). This should be achieved after 6-8 months of opening.

recommends Stefanie Rothenhöfer | FEC

Showing the name at the entrance
Display a price list
Display the Workers Protection Act
Display the Youth Protection Act

Anyone who operates a restaurant, is obliged to show his family name with at least one complete first names outside or at the entrance of the restaurant. In addition, you must show a price list outside of the restaurant of the most common food and beverages sold. The display of the employee Protection Act and the Youth Protection Act is also required.

The content of this website has been compiled with meticulous care and to the best of our knowledge. However, we cannot assume any liability for the up-to-dateness, completeness or accuracy of any of the pages.
Also damages of any kind that have occurred through the use of this information and can lead to potential liability claims against the author are excluded. Any reproduction, retransmission and copy even partially or the content requires the written consent of the website owner.

Everything your heart desires, if all the requirements and hygienic necessities are satisfied. You might need a kitchen and storage facility that are independent from the truck.

says our expert Klaus-Perer Wünsch | Foodtrucks Deutschland

Basically anything that a food truck customer wants. However, if you want to make benefits out of it, it is recommended to sell dishes which ensure a big amount of purchases.

says our expert Klaus-Perer Wünsch | Foodtrucks Deutschland

This depends on the region (Bundesland). The most important ones are the following: Regulatory Authority, Commercial Office, Finance Office, Veterinary Office, Food Inspection Agency (hygiene).

says our expert Klaus-Perer Wünsch | Foodtrucks Deutschland

Normally, you are a travelling restaurant as soon as you do not have a permanent store. For a travelling restaurant, all employees including you, will have to have a travelling restaurant card (Reisegewerbekarte). If your stand is fixed or at recurring time points at certain locations, you have the possibility to be classified as a restaurant. Other rules will apply in that particular case. The classification of your stand/store must be approved by the relevant commercial office (Ordnungsamt).

says our expert Stefanie Rothenhöfer | FEC

There are nowadays several suppliers and even specialists all over Germany.

says our expert Klaus-Perer Wünsch | Foodtrucks Deutschland

The price range is wide and varies from 10.000€ to 150.000€. But there are good opportunities to join-in even with a small amount of money.

says our expert Klaus-Perer Wünsch | Foodtrucks Deutschland

Advantages up to 3,5t: younger drivers possible (only a class B driver’s license is required), mostly newer vehicles, more versatile, need less space on selling points, usually lower gas consumption.
Disadvantages up to 3,5t: low net load (payload), less space for interior fittings.

Advantages from 3,5t: bigger payload, more space for interior fittings, more storage capacity, possibility to have more employees in the truck (production and service).
Disadvantages from 3,5t: driver’s license C1 is required, which leads to limited staff possibilities, higher gas consumption.

says our expert Klaus-Perer Wünsch | Foodtrucks Deutschland

Both. Electricity for maintaining the cold chain, for beverages and lights ; and gas for cooking! Even if this answer seems confusing at first, the combination of both is often the best solution.
However, gas is in closed rooms in most cases not allowed. If you want to sell your products mostly outside, then the combination of both electricity and gas is the best solution.

says our expert Klaus-Perer Wünsch | Foodtrucks Deutschland

Being self-sufficient (subject water tank) isn’t a must have, but by experience a very nice thing to have.

says our expert Klaus-Perer Wünsch | Foodtrucks Deutschland

At the local license registration office.

says our expert Klaus-Perer Wünsch | Foodtrucks Deutschland

Depending on the type of vehicle and brand, you will find specialized companies.

says our expert Klaus-Perer Wünsch | Foodtrucks Deutschland

If you have a permission, yes. But be careful! Keyword: Be sure to have the appropriate fine particle sticker and environmental protection zone. You have to mind these things.

says our expert Klaus-Perer Wünsch | Foodtrucks Deutschland

On any place where you have a public and/or private authorization for.

says our expert Klaus-Perer Wünsch | Foodtrucks Deutschland

If you have a special authorization, yes. In bigger cities, you can get it via the Real Estate Office or, in smaller cities, directly at the municipality.

says our expert Klaus-Perer Wünsch | Foodtrucks Deutschland

Normally, beer and wine may be sold in closed bottles if the guest opens the bottle himself. Otherwise, you may as well sell alcohol from the bottle if you have the license for it and respect the rules set by this license.

If you sell alcohol, you have to follow the legal requirements for youth protection and visibly hang the corresponding section of the youth protection law at the vending point.

says our expert Klaus-Perer Wünsch | Foodtrucks Deutschland

– document revenues and purchases
– revenue-surplus accounting
– tax return

In Germany, anyone operating a business must pay taxes. Thus, each business owner must document its sales and purchases. All this must be reported to the tax authorities at the end of each accounting year in form of a revenue-surplus declaration and a tax return.

Not at all. There is still a lot of potential existing. Lunchtime in a lot of cities for instance. And there are a lot of good possibilities with the increasing number of festivals. Furthermore, there are still completely empty Foodtruck-spots in Germany.

says our expert Klaus-Perer Wünsch | Foodtrucks Deutschland

You can sell it over our platform: www.foodtrucks-deutschland.de or other trading/selling platforms.

says our expert Klaus-Perer Wünsch | Foodtrucks Deutschland

The content of this website has been compiled with meticulous care and to the best of our knowledge. However, we cannot assume any liability for the up-to-dateness, completeness or accuracy of any of the pages.
Also damages of any kind that have occurred through the use of this information and can lead to potential liability claims against the author are excluded. Any reproduction, retransmission and copy even partially or the content requires the written consent of the website owner.

The success is certainly related to each single person and business. Our friend Andrew Fordyce gives us his HIGH FIVE success factor for a street food stand.

– offer less than 5 products
– use less than 5 ingredients per recipe
– the production and delivery of the product to the client must last less than 50 seconds
– there should be less than 5 people responsible for the operation side (preparation, kitchen and selling)
– the price should be around 5 pounds (6.50€)

The concept is a prerequisite for a successful market stand. Enhance your profile! Offer a high quality product, with which you can identify yourself and transmit your story and passion. That way, you will satisfy and inspire your clients on a longer time.

says our expert Stefanie Rothenhöfer | FEC

– Private events
– Weekly and special markets
– Street food markets
– Festivals

The spectrum of street food’s selling possibilities is big, from private events to weekly and special markets until bigger events and festivals. In order to keep the financial risk as low as possible at the beginning, you should start to sell at local events and markets.

says our expert Stefanie Rothenhöfer | FEC

The food that will be offered to sell must be prepared in a commercial kitchen that has been controled by the official district’s food control. You also have the possibility to share a kitchen with other professionals in order to reduce kitchen’s off time. Our section “Servicepartner-Produktionsstätten” gives you a list of commercial kitchens in Berlin.

Supplies costs
Equipment and furnishing costs
Marketing (flyers, website, …)
Personal costs
Rent
Vehicle costs
Insurance

The pre-opening costs will be divided into furnishing (front shield, decoration, lights, napkins etc.), equipment (sink, electric equipment, additional equipment in the kitchen, cutleries etc.), rent (market stand and kitchen), vehicle (gazoline, parking, etc.), insurance, supplies (including stocks), marketing (flyers, brochures) and personal costs (including founder(s)’ salary). These costs have to be calculated in the price of the offered products.

says our expert Stefanie Rothenhöfer | FEC

Washable preparation and service surfaces as well as floors
Hygiene protection
Hand washing sink with hot water
Red card (Rote Karte)

The floors of the whole commercial store must be washable, as well as the surfaces where food will be prepared and served. In addition, the goods offered for sale must be protected by a hygiene protection between you and the client. A hand wash sink with hot water is mandatory. All these rules and others will be explained to you during the Rote Karte class. Each employee must have this red card while working at the stand.

Enough light
The design of your menu
The presentation of your products
Cleanliness

Your stand should be the same as your home while receiving some guests. A clean and bright stand will look appealing and professional. One of the most important factor for a good presentation is the light. When you are offering your food on a market stand, you need to take good care of the disposition of your lights in order to offer a warm and appealing presentation. The menu should not have any mistake, easy to read and with a nice typo. Even if your recipes are ready to sell, I recommend you to give the “last twist” in front of the guest. This enhance the freshness of the recipe and catches one’s attention. It is often meaningful to have a presentation product as an example of what the client could get.

The content of this website has been compiled with meticulous care and to the best of our knowledge. However, we cannot assume any liability for the up-to-dateness, completeness or accuracy of any of the pages.
Also damages of any kind that have occurred through the use of this information and can lead to potential liability claims against the author are excluded. Any reproduction, retransmission and copy even partially or the content requires the written consent of the website owner.