How to Start a Food Truck Business in Canada
Are you a foodie who has always wanted to start a food truck business in Canada, but is not sure where to start? Applying for a Canadian Immigration Business Visa through the Starter Visa Program will not only make your dreams come true, but it will also give you and your family permanent residence in Canada.
The Canadian street vendor and food truck industry is thriving and, according to Ibis World, the Canadian street vendor industry is now worth $ 325 million, with approximately 2,093 businesses creating 2,483 jobs in the sector. This includes:
- Traditional street vendors;
- Mobile food preparation vehicles(food trucks);
- Industrial catering vehicles;
- As well as others, such as mobile snack and refreshment stands, coffee carts, ice-cream truck vendors, and nonalcoholic beverage stands, to name a few.
Despite a decline in the expected growth of the food truck industry since the pandemic, market forecast trends predict an increase of 0.2% in 2020, which is expected to increase over the next 5 years as the market increases. the national economy is recovering from the crisis. crisis. effects of the current pandemic. With new procedures to be implemented in the restaurant industry, running a food truck business might be a smarter business investment, as it will not be affected in the same way that a restaurant is due to social distancing requirements. . Not to mention the lower overhead costs.
According to government reports on the financial performance of the mobile restaurant industry in 2018, food truck companies can expect an average income of over $ 155,000 per year with a starting cost of around $ 40,000 and $ 200.00. This means that with a good business plan and the right product and the right location, you could make a clear profit in the second year.
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To get you on the right track when it comes to immigration, we’ve compiled some of the best tips for starting a food truck business in Canada in just 8 easy steps.
8 Key Ingredients to Starting a Successful Food Truck Business in Canada
Starting a business in Canada is no easy task, but with these top tips, you’ll be hitting the streets with your food truck in no time. But before we move forward, let’s take a look at the key to any successful business, which is to be prepared and have a solid plan of action before you start the business immigration visa application process. in Canada.
|Business Plan of Action|
|1. Do Your Research|
|3. Business Plan|
|4. Licenses and Registrations|
|6. Source Suppliers|
|8. Outfit your Truck|
1. Do Your Research
As with any successful business venture, it is important to do your market research as poor planning could be the difference between running a successful or unsuccessful food truck business in Canada. There are a lot of things to consider that can affect your business, including:
- Location. Location. Location. – Customers should be able to locate you easily in a regular place.
- Affordable and reliable product suppliers;
- Local laws and regulations;
- Hidden costs such as your license, liability insurance, fuel, event-related costs;
- Networking – Your competition is also one of your best resources. One of the best ways to learn anything is through experience, whether it’s yours or someone else’s.
Marketing is an essential part of a successful business. Your food truck is not only a place to serve your customers but also to attract new ones. When used effectively, your food truck can also be essentially a mobile ad, so it’s important to consider all aspects of your marketing strategy. Social media has also become a very powerful form of modern marketing strategies because it will have greater reach and is also much more affordable than traditional forms of marketing. The following factors are important concepts when choosing marketing strategies for your food truck business:
- Name and concept – this needs to communicate what your product is as well as your brand vision.
- Logo Design – this is something that you really shouldn’t do on the cheap. Although there are free apps available it has its limitations. Do yourself a favor and hire a professional designer.
- Design Your Menu Board – try not to overcomplicate your menu board. It should be easy to read, catch the eye and convey the most important information: what you are serving and how much it costs.
- Social Media – To start out with, use digital resources. Facebook and Instagram will be some of your most powerful forms of social media marketing communication. In order to establish a more established business
3. Business Plan
Having a business plan is not only extremely important when it comes to starting a successful business in Canada, it is also a requirement of the startup visa program. It is also a prerequisite when applying for funds from potential investors, which is another part of the Canadian immigration business visa application process.
Your business plan should contain the following:
- Business description;
- Market analysis;
- Organization and management;
- Product line;
- Marketing plan;
- Funding request and proposal; and
- Financial projections.
4. Licenses and Registrations
Canada has several regulations and policies when it comes to starting a business and having a license is just one of them. You will also need a food service permit, as well as additional permits depending on the province or territory you choose to immigrate to Canada. Be sure to do your research before your visa application. Here are examples of some additional licenses and permits that you may also need:
- Parking permit;
- GST/HST account;
- Taxes – this includes both federal and provincial/territorial taxes;
- Reporting gratuities;
- Food safety – the same health and safety regulations that apply to a restaurant business will apply to your food truck business. Your employees will need food safety training and you will also need to abide by the heightened hygiene and safety measures due to COVID-19 regulations.
The costs of starting your new food truck business in Canada can range from $ 40,000 to $ 200,000, depending on where you decide to locate and whether you plan to buy or lease your food truck. Also, keep in mind that you will need to factor in one-time expenses and recurring expenses, such as the cost of equipping your food truck.
Financing options to consider for new business owners include:
- Equipment loans;
- Business credit cards;
- Personal loans;
- Crowdfunding; or
- Leasing a truck.
Please note that when you apply for a Canada Immigration Business Visa through the Starter Visa Program, you will need a net worth of at least $ 300,000 to be considered eligible.
6. Source Suppliers
Most food companies focus on farm-to-table menus and sourcing local produce. This not only allows you to support local businesses in Canada but also create a seasonal menu based on what’s available to you, reducing the risk of running out of supplies and potentially losing sales or disappointing your customers. .
The average purchase price of a food truck ranges from $ 3,250 to $ 200,000 (including modification and packaging). That’s a big chunk of your starting capital, and so it makes sense to secure your investment with a good insurance plan that covers not only damage, injury or loss, but also lost wages and income.
8. Outfit your Truck
Along with outfitting your truck with the best household appliances, you’ll also need a point of sale (POS) system to make sure it can accommodate credit card sales and contactless payment options. It may be a good idea to select a point of sale that can work offline so that it is not affected by your WIFI connectivity. Other items include a generator and safety devices like fire extinguishers.
What is a Start-up Visa?
The start-up visa allows foreign immigrants to start a business anywhere in Canada. Before you start applying for a business visa for immigration to Canada, you need to make sure that you can meet the minimum requirements. Here are some of the requirements for business immigration to Canada under the Starter Visa Program:
|Start-up Visa Requirements|
|Have a qualifying business Each applicant must hold 10% or more of the voting rights attached to shares of a corporation (maximum of 5 co-owners can apply); and owners and the designated organization must jointly hold more than 50% of the total voting rights attached to shares of a corporation When you receive permanent residence you must actively be managing your business in Canada part of the essential operation must occur in Canada; and your business must be incorporated in Canada.|
|Letter of support from a designated organization|
|Meet language requirements -a minimum of CLB5 in English or French|
|Have sufficient settlement funds – $12,960 to $34,299 CAD (depending on the size of your family) + $3,492 per additional family member if more than 7 people|
Although a business visa can take 12 to 16 months to process, you can apply for a temporary work permit while you wait for your application for permanent residence to be finalized. This means that you will be able to start your business while you wait for your application to be processed.