If you are an overseas business person with plans to set up a food business in the UK, this article is for you. The food business opportunities on offer in the UK are vast. Whether you want to run a highly profitable food truck business serving outdoor events, a grocery store, a catering business, or a niche food shop, the sky is the limit.
In this guide, we will take you through the steps involved in opening different types of food businesses, including food vans, restaurants, catering services, and niche food shops such as juice bars, doughnut shops, and sandwich shops. Crucially, we will explain how you can leverage the Global Mobility Visa and UK Self Sponsorship immigration routes to you’re your dreams of running a food business in the UK a reality.
Understanding the Global Mobility Visa and Self-Sponsorship routes
The Global Mobility Visa (GBM) and the Self-Sponsorship Visa are two of the leading immigration routes for overseas business people seeking to run a food business in the UK.
The Global Mobility Expansion Worker Visa is designed for existing overseas businesses seeking to set up a branch or subsidiary in the UK. Self-sponsorship, on the other hand, is an innovative route allowing holders to set up a business in the UK and sponsor themselves. This route requires applicants to establish a UK-based company, obtain a sponsor licence, and then sponsor themselves as an employee of that business.
Another visa option is the Innovator Founder visa which is aimed at international entrepreneurs who wish to set up a company in the UK. The difference with this visa is that applicants must have a unique and innovative business idea. Hence, if your food business idea is unique in the UK market, you may be able to consider this visa option.
Opening a restaurant in the UK
Opening a restaurant in the UK is an extremely popular choice for many international food business entrepreneurs. The first step is to draw up a detailed business plan outlining your concept, target market, menu, pricing, and financial projections. There is no one way to create a business plan; what matters is that you have thought through your plans and understand the UK market. It is essential that you consider the following when preparing your business plan:
- Legal Requirements – If you plan to set up a limited company in the UK, it must be registered with Companies House. You will also need food business registration and to comply with health and safety regulations. Remember, food safety is extremely important in the UK.
- Location – As the saying goes, ‘location location location’. Location will be vital to the success of your venture. Carefully choose a strategic location that will draw in your target audience. You will need to come to the UK to find your location; this cannot be done remotely.
- Investment and funding – How are you going to fund your venture? Through personal savings, bank loans, or investors? Investing in a restaurant can be costly, with expenses including rent, equipment, and staffing. However, the earning potential is huge, especially with a strong concept and effective marketing.
- Staff – The labour market in the UK can be challenging due to the low levels of unemployment. Consider how you will legally hire skilled staff and ensure they have the necessary food safety training.
- Marketing – Create a marketing strategy to promote your restaurant through social media, local advertising, and partnerships.
Opening a food van in the UK
Opening a food van in the UK is another extremely popular choice for many international food business entrepreneurs. Again, the first step is to draw up a detailed business plan outlining your food van concept, target market, menu, pricing, and financial projections. When preparing your business plan, take into account the following:
- Legal Requirements – Before you can run your new food van venture, you will need to register your business (if setting up a limited company), obtain a street trading licence, and comply with food safety standards.
- Vehicle – How will you purchase or lease your food van and fit it out with necessary kitchen equipment?
- Location – Perhaps the most important aspect of running this type of business is identifying prime locations and events where you can operate your food truck. There are thousands of events across the UK all year round. Doing your homework here will make all the difference to your food van’s success. Remember, weather is a big factor in the UK, and hence, by choosing the right mix of events at the right time of year, you can ensure a consistently high level of turnover.
- Investment and funding – How are you going to pay for your food van, equipment, and permits? The initial investment for a food truck is lower compared to a restaurant. Earning opportunities can be significant, especially if you operate in high-traffic areas and cater to events.
- Marketing – Use social media and local events to build a customer base.
Opening a grocery store in the UK
The UK has thousands of grocery stores serving a vast range of different markets. From organic fruit and vegetable stores in trendy neighbours, stores serving different nationalities and food cultures, and those serving a broader market, there are plenty of options to choose from. When preparing your business plan, think carefully about your store’s concept, product range, target market, and financial projections. Also, consider:
- Legal requirements -You will also need to apply for any required food sale licences (e.g. a liquor licence to sell alcohol) and comply with health and safety regulations.
- Location – Location is absolutely critical for ‘bricks and mortar’ grocery shops. As much as possible, choose a location with high foot traffic and relatively low levels of competition.
- Investment and funding – How are you going to fund your venture and pay for your premises, stock, and any staff? The reality is that investing in a grocery store involves significant initial costs for inventory and premises. However, the earning potential is high, especially if you can achieve a loyal customer base.
- Suppliers – As part of your planning process, we recommend coming to the UK to establish relationships with reliable suppliers. Having trusted business partnerships with food suppliers across the UK will be critical to your business success.
- Marketing – Promote your store through local advertising and social media. The key is to let the local public know that you exist and why they should come to you.
Opening a catering company in the UK
Catering companies provide food for events such as weddings, parties and businesses. When creating your catering company business plan, describe your catering services, target market, pricing, and financial goals. Also consider:
- Legal Requirements – Before starting your new catering business, you may need to register your business with Companies House, obtain any required business licenses. Food safety compliance also cannot be overlooked in the UK.
- Equipment – How are you going to purchase or lease catering equipment and vehicles?
- Staff – How are you going to recruit experienced chefs and servers? Remember, the labour market in the UK is tight due to the low levels of unemployment here.
- Investment and funding – How are you doing to fund your initial setup and operations? The investment required for a catering company varies enormously depending on the scale of operation. Earning opportunities can be high in this line of business, especially if serving corporate and large-scale event contracts.
- Marketing – Build a portfolio of happy clients and market your services through networking and online platforms.
Opening a niche food shop in the UK
Niche food shops such as juice bars, doughnut shops, and sandwich shops can be extremely lucrative in the UK if you choose the right location and mix of offerings. When drafting your business plan, focus on the niche products you want to offer, your target market, and financial forecasts. Remember, right product, right place, right time. Also, consider your:
- Legal requirements – Register your business, obtain relevant permits, and comply with health and safety standards.
- Location – Carefully select a location for your business that will attract your target audience. Setting up a trendy juice bar in an old-fashioned traditional village may not yield the best results, but an up-and-coming high-traffic location frequented by young people is more likely to be the best choice.
- Investment and funding – How will you secure funding for rent, equipment, and initial inventory? Investment in a niche food shop is relatively low compared to full-scale restaurants. Earning potential is high, particularly with a unique product and effective marketing.
- Suppliers – Source high-quality ingredients and products from suppliers with whom you can form a trusted relationship.
- Marketing – Promote your shop through social media, local events, and partnerships.
- Investment and Earning Opportunities
Life and Living Costs in the UK
Before making your move to the UK, it is always recommended that you visit to understand the life and living costs here. This should be a factor in where you decide to operate from. Remember, major cities like London have higher living costs, including rent, utilities, and transportation. However, the earning opportunities and lifestyle benefits often outweigh these costs.
Final words
Starting a food business in the UK, whether it’s a restaurant, food truck, catering service, or niche food shop, is an exciting opportunity for overseas business people. Understanding the visa options, legal requirements, and investment opportunities will be vital to your business success. With careful planning and by making the right decisions, your food business will thrive in the UK’s vibrant foody landscape. If you need further assistance, consider consulting an immigration law firm to help navigate the visa process and legal requirements.
A Y & J Solicitors is a specialist immigration law firm with extensive experience with all types of visa applications. We have an in-depth understanding of immigration law and are professional and results-focused. For assistance with your visa application or any other UK immigration law concerns, please contact us on +44 20 7404 7933 or using our contact us page. We’re here to help!
