Britain runs on coffee: around 98 million cups are drunk here every day, and a growing share are bought on the move — at station forecourts, business parks, markets and football grounds. A mobile coffee van serves that demand without high-street rent, and it is one of the cheapest food businesses you can start in the UK. Done well, it can replace a full-time wage; done badly, it can drain your savings on a van parked in the wrong place. This guide covers the real costs, the legal steps in order, and how to find pitches that actually make money.
Why a coffee van works as a first business
A coffee van has three advantages over a café. First, far lower startup costs: no lease, no shop fit-out, no business rates bill. Second, you can move to where the customers are. Third, excellent margins: a flat white selling for £3.00 to £3.50 typically costs just 30p to 50p in beans, milk and cup, leaving room for pitch fees, fuel and your time.
It is not passive income. You will be up early, working outdoors in all weather, and your income depends entirely on where you park. Those who succeed treat it as a proper trade: good coffee, regular pitches and repeat customers.
How much does it cost to start?
Costs depend on whether you buy a ready-converted van or build one up yourself:
The lean start: £8,000 to £15,000
This suits someone testing the idea, perhaps alongside a part-time job: a second-hand van (£3,000 to £6,000), a second-hand LPG or dual-fuel espresso machine (£800 to £2,000), a grinder (£200 to £500), a water tank and filtration (£300 to £600), plus stock, branding, insurance and licence costs (£500 to £1,500). Fit it out yourself and upgrade as income grows.
The professional setup: £15,000 to £35,000
This buys a professionally converted van with a proper water and power system, a new commercial espresso machine (£2,000 to £4,000), full signwriting, and working capital for three months. Franchise-style conversions can exceed £30,000, but are unnecessary for a first van. Buy the best machine you can afford: a temperamental machine on a busy Saturday costs far more in lost sales.
The legal checklist, in the right order
Mobile catering has a reputation for red tape, but the steps are straightforward in sequence. Allow at least six weeks from decision to first trading day.
1. Register as a food business (free, at least 28 days before trading)
Every UK food business must register with the local council where the van is based, at least 28 days before trading. Registration is free and online, and environmental health may then inspect the van and award a food hygiene rating.
2. Get your food hygiene certificate
Take a Level 2 Food Hygiene course, available online for around £20 to £100 and completed in a few hours. You need it even if you only sell drinks: it covers cross-contamination, safe milk storage, allergens and cleaning routines. Staff need it too.
3. Sort your street trading position
This is the step beginners get wrong most often. Councils classify streets as licence, consent or prohibited. On a licence or consent street you need that council’s licence or consent, costing from around £50 a year in a quiet area to £2,000 or more in a busy town centre. On a prohibited street you cannot trade at all, and you need permission from each council you trade in.
The popular alternative is private land. Trading in a business park car park, garden centre, farm shop or office estate needs only the landowner’s permission, not a council street licence, though food registration, hygiene training and insurance are still required. Many operators start here because it is faster, cheaper and comes with a built-in audience. Get any agreement in writing, including the fee or percentage of takings.
4. Insurance and safety certificates
At minimum, arrange public liability insurance, motor insurance for the van, and equipment cover. Many councils and event organisers require at least £5 million of public liability cover before they let you trade. LPG installations must be fitted and signed off by a competent gas engineer; electrical equipment should be PAT tested. Keep every certificate in the van — organisers and officers do ask to see them.
5. Register with HMRC
Register as self-employed with HMRC as a sole trader, or register a limited company if you prefer. Keep records from day one: takings, stock invoices, fuel, pitch fees and repairs. VAT registration becomes compulsory once rolling 12-month turnover passes £90,000.
Choosing your van and equipment
Your van needs enough payload for a full water tank: 100 litres of water weighs 100kg before you add the machine, stock and gas bottles. Check the payload rating before you buy. A panel van with a side hatch works well, as customers order and pay without coming inside.
The core kit list is short: a commercial espresso machine (LPG or dual-fuel for off-grid work), a grinder, a water tank with pump and filtration, a fridge for milk, a generator or leisure battery system, and a card reader. Take card payments from day one: most coffee sales are now contactless. Keep your menu short at first — espresso-based drinks, filter coffee, tea, hot chocolate, plus iced coffee in summer — as a short menu is faster to serve, cheaper to stock and easier to keep consistent.
Finding pitches that make money
Your pitch is your shopfront and decides your income more than anything else. Four reliable types exist:
- Regular weekday pitches: Business parks, industrial estates, hospitals and transport hubs, where the same workers buy every morning.
- Weekend markets and farmers’ markets: Higher footfall but higher fees and more competition.
- Events and festivals: The biggest single days of the year, but fees can run into hundreds of pounds.
- Private contracts: Offices, schools, building sites and gyms wanting a regular service — a weekly contract is income you can plan around.
When you trial a new pitch, measure it properly: cups sold, average spend and hours worked, then takings divided by hours. A pitch taking £300 a day but eating six hours including driving and setup may be worse than a £180 pitch two hours from home. Drop weak pitches quickly.
Pricing and realistic earnings
A sensible starting menu is £2.50 to £3.00 for filter coffee, £2.80 to £3.50 for a flat white or latte, and £3.00 to £3.80 for a large or speciality drink, adjusted to your area. City-centre prices can be higher; a village pitch may need lower prices. Watch competitors’ prices, but do not start a price war: customers pay a little more for better coffee and a familiar face.
The maths of a decent day: sell 100 cups at £3.00 average and take £300 gross. Stock costs roughly £30 to £50, fuel and pitch fees perhaps £30 to £60, leaving £190 to £240 before tax, van costs and your time. A well-placed operator trading five days a week can gross £4,000 to £6,000 a month in a good spell, though winter and quiet pitches pull some months below that. Keep a cash buffer for January and February, and add seasonal drinks — hot chocolate in winter, iced coffee in summer.
Marketing a van on a small budget
Your van is your advert, so invest in clear signwriting with your name, menu and prices readable from metres away. Beyond that, the cheapest marketing works best: an Instagram page showing where you will be each day, a Google Business Profile, and a loyalty card (buy nine, get the tenth free). Ask regulars for a Google review, remember their orders, and keep the serving area spotless.
Common mistakes to avoid
First, buying the van before securing anywhere to trade. Second, underpricing, then discovering you cannot cover pitch fees and fuel. Third, skipping insurance or gas certification: one incident or inspection can end the business. Fourth, ignoring weather and seasons in your cash-flow plan. Fifth, trying to serve everything: a tight, excellent menu beats a sprawling, average one.
Your first 30 days, step by step
Week one: register the food business, book your hygiene course, and shortlist three to five pitches, including one private-land option. Week two: buy the van and machine, arrange insurance and gas certification, and apply for street trading licences. Week three: fit out the van, practise your menu until you can serve a flat white in under two minutes, and set up your card reader and social pages. Week four: trade at your best pitch, track every cup and cost, and adjust on what the numbers say. Measuring, then adjusting, separates a hobby from a business.
Like any trade business, a coffee van rewards the operator who plans and works the plan. If you are weighing other hands-on ideas first, read our guide on how to start a handyman business in the UK: the fundamentals are similar — low overheads, local customers, and reputation doing the heavy lifting. The same pricing discipline matters, as our guide on how to price a cleaning business shows, and protection is covered in our guide to insurance for the self-employed. For a lower-cost comparison, see also how to start a window cleaning business. A coffee van will not make you rich overnight, but for someone who likes early mornings, good coffee and being their own boss, it is one of the most accessible businesses in Britain today.