Pricing is one of the most important and least well understood aspects of running a street food business. Too many new traders underprice their food — and pay the price financially.

Industry Data: Start with your food cost. Calculate the exact ingredient cost of every dish on your menu. Multiply by 3 to 4 to get your minimum selling price (this gives a food cost of 25–33%). Then check that price against your market. Is it competitive? Is it reflective of your quality? If it feels high, the answer is not to lower your price — it is to reduce your food cost through better buying or smaller portions.

Add your indirect costs: pitch fee, packaging, travel, equipment depreciation, and your time. Divide these by your expected number of covers per day. That is your true cost per portion — and your price needs to cover it with margin to spare.

Review your prices every three to six months. Ingredient costs change. Pitch fees rise. Your customer base grows and becomes less price-sensitive as your reputation builds. Do not be afraid to increase your prices as your business matures.

References & Further Reading

  • NCASS: Pricing Your Menu Profitably — ncass.org.uk
  • Square: How to Price Food for Street Trading — squareup.com
  • Zettle by PayPal: Street Food Business Guide — zettle.com
  • FSB: Small Business Pricing Strategies — fsb.org.uk