In Short
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Choose Your Vehicle Type: Decide between a food van (low-risk, short-term service) or a food truck (full-service, longer hours).
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Obtain Necessary Licences: Secure permits from the NSW Food Authority, Sydney Water, and your local council.
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Ensure Food Safety Compliance: Implement a food safety plan, maintain temperature controls, and train staff accordingly.
Tips for Businesses
Before launching, design your food truck and menu to meet council standards. Prepare a comprehensive food safety plan addressing hygiene, waste management, and odour control. Register your business name and consider trademarking your brand elements. Consult with a legal professional to navigate licensing and compliance requirements effectively.
Food trucks can be a profitable venture for restless entrepreneurs and portable food enthusiasts alike. The City of Sydney requires an applicant to trade as either a food van or a food truck to satisfy strict minimum standards and obtain the relevant licenses.
If you do not comply with these requirements, consequences include a warning letter, an improvement notice, a penalty notice, seizure, prohibition or even prosecution. Understanding the application process before you submit an application can help ensure you do not inadvertently drive your food truck ambitions away.
Before buying a business, it is important to undertake due diligence, to verify the information supplied by the seller. This guide will walk you through the due diligence process.
Decide What Type of Mobile Food Vending Business
The kind of mobile food-vending business you choose to operate will affect how and where you can trade. There are two types of mobile food-vending vehicles:
- food vans; and
- food trucks.
Both will need to outline in their application form where you will trade and a plan of management, which describes the measures you will take to reduce environmental and public health impacts. A plan of management will outline how you will manage food safety and operational issues. It is a document that describes the required steps you and your co-workers will take to ensure the food you sell is safe to eat.
If you decide to trade as a food truck, you must also include a concept design and menu details in your application to the council. Photographs of the food and a brief outline as to how it will be prepared and cooked must accompany your sample menu.
Your concept design must be a full-colour illustration of the vehicle and can be an artistic impression or a photograph. The City of Sydney’s Food Truck Design Panel will assess your design against the following criteria:
- innovation;
- uniqueness and visual appeal of the Food Truck;
- sustainability, including the use of renewable and sustainable materials;
- vehicle build, including any energy-efficiency features of the vehicle (i.e. plans for disposal, recycling waste, waste reduction); and
- ethics (i.e. use of fair-trade products, plans to support specific communities and other charitable causes).
A food van serves food that is not potentially hazardous and can only trade for 15 minutes at a time. A food truck has no restrictions on its menu and can trade for up to five hours. It is essentially a movable kitchen that prepares made-to-order hot foods, such as Thai street food, American pretzels or authentic Spanish churros.
Where do you want to trade?
Your application will detail where you want to trade. This will depend on whether your food truck is street vending or off-street trading.
Street vendors operate on city-owned roads and comply with local car parking restrictions. The operating times for Central Sydney and Other City of Sydney Areas are below:
- Central Sydney: 8 am to 3 am (Monday to Sunday).
- Other City of Sydney Areas: 9 am to 12 am (Monday to Sunday).
Off-Street Trading is available to food trucks only and is at sites that are city-owned parks and plazas. These sites are divided into:
- High Demand Sites: They may have access restrictions and require rigorous plans of management. They are highly sought after because of considerable pedestrian traffic and their location.
- Low Demand Sites: They may not have any access restrictions and require simpler plans of management.
The applicable fees for your food truck or food van are outlined in the Schedule of Fees and Charges. Approvals are issued for 12 months, and the fees must be paid on application and when your license is renewed.
Continue reading this article below the formHygiene and Health Reports
You must also obtain a health inspection report to submit with your application. The inspection must be carried out by the local council’s Environmental Health Officers. Your van or truck must also meet food hygiene construction standards. Inspections of mobile food-vending vehicles are conducted at least once a year, so you must regularly check that food and safety practices are in place, including temperature control, cleanliness, hand-washing, and labelling. It is strongly recommended that you carry your most recent inspection report with you whenever you are trading from your food truck or food van.
Safe Handling of Food
To protect your customers and your business, any food truck or food van must ensure that all foods are stored so that they are protected from likely contamination. You must make sure you comply with the regulations and standards outlined in the Food Act 2003, Food Regulation 2010 and the Food Standards Code.
These require potentially hazardous foods such as chicken, meat, dairy products, seafood, and egg-based products to be stored under temperature control. Temperature control means maintaining cold food at a temperature of 5 degrees Celsius or below, and hot food at 60 degrees Celsius and above. You must also take adequate measures to prevent cross-contamination from raw foods to hot foods. You can take steps to satisfy this requirement by using separate utensils for raw and cooked meats and covering all foods.
If your food truck is handling any meat, seafood, egg or egg-related products, or dairy, you will also need to hold a current NSW food license.
Staff Training
All food trucks and food vans must ensure that any worker handling food is skilled and knowledgeable in food safety and food hygiene. Your food truck requires a food safety supervisor if it is processing and selling food that is:
- ready to eat;
- potentially hazardous (i.e. requires food temperature control); and
- unpackaged (i.e. not sold and served in the supplier’s original packaging).
Legal Considerations for Your Food Truck Business
While navigating the regulatory landscape is crucial, there are additional legal considerations that food truck operators must address to ensure compliance and protect their business interests. As a lawyer, I advise clients to pay close attention to the following legal aspects:
Business Structure and Liability
Choosing the right business structure is fundamental to your food truck operation. While sole proprietorships are common, incorporating as a company or setting up a trust can offer personal asset protection. Each structure has different legal implications for taxation, liability, and operational flexibility. It’s crucial to consult with a legal professional to determine the most suitable structure for your circumstances.
Contracts and Agreements
Food truck businesses often rely on various contractual relationships. These may include lease agreements for the truck itself, supplier contracts for ingredients and equipment, and service agreements for events or regular vending locations. Ensure all contracts are well-drafted, clearly stating the rights and obligations of each party. Pay particular attention to termination clauses, payment terms, and liability provisions.
Intellectual Property Protection
Your food truck’s brand, including its name, logo, and unique recipes, may be eligible for intellectual property protection. Consider registering trademarks for your business name and logo to prevent others from using similar branding. If you have proprietary recipes or cooking methods, you might explore options for protecting these as trade secrets through confidentiality agreements with employees.
Employment Law Compliance
You must comply with Australian employment laws if you plan to hire staff. This includes adhering to the relevant awards and ensuring proper classification of workers (e.g., full-time, part-time, or casual). Implement clear employment contracts and policies to manage your obligations and protect your business from potential disputes.
Food Safety and Liability
While health inspections are mandatory, it’s advisable to go beyond minimum requirements to mitigate legal risks. Implement robust food safety protocols and maintain detailed records of your food handling practices. Consider the legal implications of food allergies and ensure proper labelling and staff training. In the event of a food safety incident, thorough documentation can be crucial in defending against potential lawsuits.
Insurance Coverage
Adequate insurance is not just a business consideration but a legal safeguard. Beyond the mandatory public liability insurance, consider product liability insurance to protect against claims related to your food products. Professional indemnity insurance may also be relevant if you provide catering services or food advice. Review your policies carefully to ensure they cover all aspects of your mobile food business.
Local Council Regulations
In addition to the City of Sydney’s requirements, be aware that regulations can vary between local council areas. If you plan to operate in multiple jurisdictions, you may need to comply with different sets of local laws. Stay informed about zoning regulations, noise ordinances, and waste disposal requirements in all areas where you intend to operate.
You can build a strong foundation for your food truck business by addressing these legal considerations proactively. Regular legal check-ups are advisable to ensure ongoing compliance as your business grows and regulations evolve.
Key Takeaways
Starting a food truck business in Sydney requires meeting strict standards and obtaining the right licences for either a food van or a food truck. Compliance with food safety laws, including proper storage, temperature control, and hygiene, is essential to protect customers and avoid penalties. Planning where to trade, preparing a management plan, and ensuring staff are trained in food safety will support smooth operations. Additionally, understanding legal aspects like business structure, contracts, intellectual property, employment law, and insurance is vital to safeguard your business and ensure ongoing compliance with council regulations.
If you have any further questions regarding the structuring of your business, our experienced business lawyers can assist as part of our LegalVision membership. You will have unlimited access to lawyers to answer your questions and draft and review your documents for a low monthly fee. Call us today on 1300 544 755 or visit our membership page.
Frequently Asked Questions
Do I need a licence to operate a food truck in Sydney?
Yes, you must apply for a licence as either a food van or food truck and meet the City of Sydney’s strict requirements.
What food safety rules must I follow?
You must store food at safe temperatures, prevent cross-contamination, and ensure all staff handling food are trained in food safety.
Where can I operate my food truck?
Depending on your licence type and application, you can trade on city streets within set hours or at city-owned parks and plazas.
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