Home – New Forums Starting your journey Test the market for nonexistant takeaway idea

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  • #991126
    Helado
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    • Total posts: 4
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    Dear all, I discovered Flyingsolo via Somersoft (property equivalent forum). I wish to know how to test the market with relatively minimal cost (questions below). You can skip the context sections if you want to go straight to answering my question.

    Context: Product
    I have a very unique takeaway idea (not a cafe/salad/roll/sushi/tea/etc) that resembles more closely to the Asian delicacies/beverages. Apologize for not being able to reveal the name of product here yet

    The product is something that can be eaten like a takeaway snack, and I have searched everywhere (internet/in-person) and have determined that only certain few asian restaurants offer them; these are usually dine-in restaurants, but what I see, is that the product is definitely not for the dine-in environment, but an immense opportunity to convert this into hugely successful small takeaway chain stores not unlike Chatime, Hot Star Chicken, Gong Cha!

    Context: Assets
    I am a young professional on a fairly average graduate engineer rates, and recently bought my investment 3 bedder last year. Current savings $30k cash (not a lot at all)

    Question
    1. Is there a way to try out the idea before committing to a physical store in future? (See below also)

    2. How viable or likely that I could set up temporary food stores during key events like Japanese festivals, Korean festivals, Moomba festivals, etc etc. To serve the product, I would need pre-cooking preparation at home kitchen, and only one commercial cooker (very simple process). What would be the rough estimation of capital needed, from getting required approvals, applications, etc to actual store setup cost (disregarding cooker & ingredient cost)?

    3. Pop-up stores have become a thing lately, but pop-up takeaway food stores??

    Thank you for taking your time to read my first post here. Obviously this is a pre-plan for future (I don’t even know if it is near/far-future now), but I would like to start the journey by learning and absorbing experience :)

    Then again, time is ticking until another rich entrepreneur bring this in from Asia (just like the many successful Asian chains: Chatime, Papparich, etc etc).

    #1180123
    ThexArm
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    I can’t answer how much will it cost to get the licensing for food business. You need to find this out from your local authorities.

    It looks like you are not bringing anything new but trying to innovate an operational model that is going to be unique. So, product is not new to the market. I think it would be a good idea to do a feasibility study. You need to determine your target market. Do you anticipate this to be popular in the mainstream market or just in Asian communities?

    The best way to do this would be to go to weekend markets and put up your stall. Try going to different markets to understand the dynamics. That will give you a very good starting point and market stalls are not very expensive.

    In any case you will need to get food licensing before starting.

    #1180124
    Dave Gillen – Former FS Concierge
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    Hi there,

    Welcome to Flying Solo!

    You are on the right track for sure with wanting to test out the idea first. Japanese festivals and food festivals are a good idea, but in case these are competitive to get into (competing with proven profitable food vans), Thexarm’s suggestion of the markets might be more accessible for a first-timer.

    It won’t prove that a physical shop will be profitable, but it will help you prove a number of things to yourself – e.g. can I make the product well, can I produce large numbers of them well, does the product sell well, do people like it, do I enjoy preparing them, do I enjoy selling them, is the cost of producing them what I thought it would be, are there hidden costs I didn’t anticipate, etc, etc.

    Once you’ve ticked off these boxes, then you can approach the remaining challenges with more confidence.

    Good luck!

    Dave

    #1180125
    James
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    I have just done a bit of research on the NSW food authority website out of curiosity – http://www.foodauthority.nsw.gov.au/.

    From what I can see there is state-level licensing requirements depending on what (most) products and ingredients you use/sell (<$1000). There is also a state (perhaps federal) requirement for someone in your organisation to have a food safety qualification (~$200 for course). Then you also have to seek approval from the councils in which you produce and sell the goods. All in all it looks a bit of a hassle to get started, especially just to validate a concept. If I was starting a food business I would want to test the product before going to the effort of getting licensed. The best way to do that without fear of major repercussions would be through people you are already connected with: friends, family, school, work etc. If your boss is game you could cook up a batch for lunch one day and ask people at work to contribute what they think it’s worth to cover costs and get an insight into demand.

    #1180126
    Helado
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    Thanks Dave, Thexarm! I’ll look into the market idea.

    James Rayers, post: 210057 wrote:
    All in all it looks a bit of a hassle to get started, especially just to validate a concept.

    If I was starting a food business I would want to test the product before going to the effort of getting licensed. The best way to do that without fear of major repercussions would be through people you are already connected with: friends, family, school, work etc.

    If your boss is game you could cook up a batch for lunch one day and ask people at work to contribute what they think it’s worth to cover costs and get an insight into demand.

    Totally with you on this one, but that is just like shouting to your boss and co-workers: ‘Hey! I am exploring my options to quit my job here and start a business!’. Is that….wise?

    That concern aside, my workplace do plan BBQs every now and then, and I happened to be the activity chair (I can influence what gets planned!)

    Everyone else, please keep the ideas/opinions/discussion coming!

    #1180127
    Dave Gillen – Former FS Concierge
    Keymaster
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    Totally with you on this one, but that is just like shouting to your boss and co-workers: ‘Hey! I am exploring my options to quit my job here and start a business!’. Is that….wise?

    I think James is spot on with work/family/friends. It allows you to test many of the same aspects (preparation, costs) and get feedback on the food, presentation etc.

    At work just say it’s a hobby that you hope to make a side business on the weekends (which is all true at this stage). No problem.

    Dave

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