Food cost is the single most important number in your street food business — and the one most new traders get wrong.

Industry Data: The golden rule in catering is that your food cost should represent 25–35% of your selling price. If your dish sells for £10, your ingredients should cost between £2.50 and £3.50. Anything above 35% and your margins are too thin to sustain a viable business once you factor in pitch fees, packaging, equipment, and labour.

UK food prices have risen sharply in recent years. The value of the UK food and grocery sector grew over 2% in 2024, driven partly by persistent food inflation (Yahoo Finance, 2025). As ingredient costs rise, traders who fail to review their pricing regularly will find their margins eroding without realising it.

Practical steps to manage food cost: buy ingredients in bulk from wholesale suppliers like Booker, Makro, or Costco; standardise your recipes so every batch uses the same quantities; track your food waste meticulously and adjust your prep quantities; and review your menu pricing every three to six months to keep pace with ingredient cost changes.

Never underprice your food to attract customers. Underpricing trains customers to expect low prices, damages the perception of your quality, and makes your business financially unviable. Charge what your food is worth — and make sure it is worth charging for.

References & Further Reading

  • NCASS Learning Hub: Food Cost Management for Caterers — ncass.org.uk
  • Yahoo Finance/Kantar (2025): UK Food & Grocery Markets Report — yahoo.com
  • Booker Wholesale: Trade Pricing for Caterers — booker.co.uk
  • FSB (Federation of Small Businesses): Running a Food Business — fsb.org.uk