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The only thing better than coffee is coffee that comes to you. For most coffee lovers, this might seem like a far-off dream. But with the rise of coffee vans, it’s becoming a reality—where coffee goes to the customers, rather than the other way around.
If you’re ready to be the hero of someone’s caffeine craving and start your own coffee van business in Australia, keep reading to learn what it takes — legally and practically — to get started.
Is A Coffee Van Business Profitable?
It’s one thing to come up with a business idea, but it’s another to develop a business idea that’s profitable. The reality is, no business idea can guarantee success. Don’t get us wrong — having the right idea is important. However, a huge factor in your success will depend on how well you structure, plan, and operate your coffee van business. From setting up your business correctly to ensuring smooth operations and legal protections, profitability will be influenced by multiple factors.
This is why we always recommend creating a business plan when starting your coffee van business. The better prepared you are, the easier it will be to navigate the business landscape. A business plan typically covers matters such as:
- Business objectives
- Finances
- Competitor research
- Values and culture
- Marketing strategies
- Strengths and weaknesses
- Legal factors
- Implementation goals
- Service and product overview
Your business plan doesn’t need to fit a cookie-cutter template — it should be tailored to your coffee van’s specific needs. However, having one is crucial as it will help you navigate the challenges of launching a new business and overcoming potential hurdles.
For more insights on avoiding common pitfalls, check out our article: 10 Common Mistakes Small Businesses Make.
How To Set Up A Coffee Van Business: Choosing The Right Business Structure
One of the most important decisions when starting your coffee van business is choosing the right business structure. In Australia, the three most common structures are sole trader, partnership, and company.
Sole Trader
A sole trader structure is the simplest and most cost-effective option, but it also carries significant legal risks.
Pros: Easy registration, low costs, full control, and minimal ongoing compliance.
Cons: No legal separation between you and your business, personal assets are at risk, and scaling can be challenging.
To set up as a sole trader, you’ll need to apply for an Australian Business Number (ABN) online, which is free and quick. If your coffee van operates under a name different from your own, you must also register a business name.
However, keep in mind that a sole trader business is not legally separate from you — meaning you are personally liable for any debts or legal issues. Before committing, it’s worth seeking legal advice to fully understand the risks and explore if this structure suits your long-term business goals.
Partnership
A partnership involves two or more people running a business together. It’s a simple structure with shared responsibilities, but it also comes with risks.
Pros: Easy to set up, low-cost, shared financial and operational responsibilities, and minimal compliance requirements.
Cons: Each partner is personally liable for business debts, potential disagreements can arise, and restructuring or dissolving a partnership can be complex.
To set up a partnership, you’ll need to register an Australian Business Number (ABN) and a business name if you’re not trading under the partners’ names. A partnership agreement is highly recommended to outline roles, responsibilities, and profit-sharing arrangements.
While partnerships offer flexibility, each partner is legally responsible for the business, meaning financial or legal troubles could affect personal assets. Seeking legal advice before entering a partnership is crucial.
Company
A company is a separate legal entity from its owners, offering stronger legal protection but requiring more compliance.
Pros: Limited liability (your personal assets are protected), easier to attract investors, and better suited for business growth.
Cons: Higher setup and maintenance costs, strict reporting requirements, and more complex tax obligations.
To register a company, you must apply for an Australian Company Number (ACN) through ASIC, register a company name, and comply with director responsibilities under the Corporations Act. Unlike sole traders or partnerships, a company pays corporate tax rates instead of personal tax rates.
While a company structure provides the best legal protection, it comes with higher costs and administrative requirements. If you plan to scale your coffee van business or bring in investors, this structure may be worth considering.
Do I Need A Licence Or Permit To Start A Coffee Van Business?
Yes, you’ll need several licences and permits to legally operate your coffee van business. The specific requirements depend on your state and local territory, so it’s important to check the regulations relevant to your location. Below, we’ve listed some key licences and approvals that may apply to your business.
Food-Related Licences & Approvals
- Food Business Licence: Most local authorities and states require businesses selling food to obtain a food business licence to operate legally.
- Food Safety Certificates: In many states, businesses handling food must have employees who have completed food safety training, covering safe food handling practices and the supervision of food handling.
- Mobile Food Business Registration: Your coffee van must be registered with a local council or health department.
- Council Permit for Operating in Public Areas: Different councils have specific rules on where mobile food vendors can trade. Some require a street trading permit, roadside vending permit, or temporary food stall permit.
Vehicle-Related Regulations
As the operator of a mobile coffee business, you’ll also need to ensure your vehicle meets legal requirements beyond just having a driver’s licence.
- Vehicle Registration & Insurance: Your coffee van must be road-registered and have at least Compulsory Third Party (CTP) Insurance.
- Modifications Approval: If your van has been modified to install coffee-making equipment, it may need a vehicle modification approval.
- Gas & Electrical Compliance: If using gas appliances, they must be installed by a licensed gas fitter and comply with state gas regulations.
Music Licensing
If you plan on playing background music while operating your business, you may need a OneMusic Australia Licence. This is typically required if you play recorded music for customers in a commercial setting.
Are There Any Other Legal Documents Required To Start A Coffee Van Business?
Aside from licences, permits, and certifications, there are several legal documents you should consider when starting your coffee van business. While these may not always be legally required, they play a crucial role in managing risks and safeguarding your business.
Supply Agreement
Needing coffee on repeat? Grocery store runs may not cut it when running a business, so it’s important to have a reliable supplier for your essential supplies. However, don’t rely on verbal agreements—make sure you have a solid contract in place to protect your business interests.
Non-Disclosure Agreement (NDA)
Have a special coffee recipe or a secret ingredient for your famous banana bread? Keeping your business secrets confidential is crucial. An NDA ensures that employees, suppliers, or business partners cannot disclose sensitive information without consent.
Employment Contracts
When hiring employees for your coffee van business, you’ll need an employment contract that clearly outlines their pay, leave entitlements, job responsibilities, and other key terms. A proper contract helps protect both your business and your employees.
Workplace Policy
Managing a team can sometimes lead to miscommunication and operational inefficiencies. A workplace policy sets clear expectations and guidelines, ensuring that everyone is on the same page and contributing to a well-organized, efficient team.
Privacy Policy
This is legally required if your business:
- Operates a website that collects personal information from users.
- Generates more than $3 million in annual revenue.
A privacy policy outlines how you collect, use, and store customer data, ensuring compliance with privacy laws.
What Legal Considerations Do I Need To Think About?
Several legal considerations will impact your coffee van business operations. As a business owner, it’s crucial to understand the relevant regulations and how to comply with them effectively. Here are some key regulations to keep in mind:
Australian Consumer Law
Upholding customer rights and treating them fairly is essential for any business. Your coffee van should be well-informed on matters such as pricing, advertising, refunds, and returns to ensure compliance with consumer protection laws.
Food Safety Regulations
Following Food Standards Australia New Zealand (FSANZ) regulations is crucial for handling and preparing food and drinks safely. Compliance helps protect both your customers and your business from potential legal and health issues.
Local Council Regulations
Local councils may enforce noise restrictions, waste management rules, and trading location regulations. Understanding and complying with these local laws can help you avoid fines or operational disruptions.
Employment Law
If you hire employees, you must ensure they receive their correct entitlements, such as wages, leave, and workplace protections. Providing a safe and fair work environment is a legal requirement under Australian employment law.
Intellectual Property (IP) Law
If you’re creating a logo, branding, or other unique elements for your business, securing IP protection is essential. At the same time, ensure your coffee van business is not infringing on another company’s IP rights.
Data & Privacy Law
Protecting customer and employee data is a business responsibility. Ensure you have the correct legal protections and privacy policies in place to comply with data protection laws.
Key Takeaways
If you want to start your coffee van business the right way, it’s important to pay attention to the legal considerations when setting up your business. To summarise what we’ve discussed:
- Profitability & Business Planning: Success in a coffee van business depends on more than just a great idea — it requires proper planning, structuring, and operations. A business plan covering finances, marketing, and legal factors is essential.
- Choosing a Business Structure: The three main structures are sole trader (simple but high personal liability), partnership (shared responsibilities but potential conflicts), and company (limited liability but higher costs and compliance).
- Licences & Permits: Operating a coffee van requires various food-related licences, council permits, and vehicle compliance approvals. These depend on local and state regulations.
- Vehicle & Equipment Compliance: Your van must be road-registered, insured, and meet gas and electrical safety standards if modified for food preparation.
- Legal Documents: Contracts such as Supply Agreements, NDAs, Employment Contracts, and Workplace Policies help manage risks and protect business interests.
- Regulatory Compliance: Understanding Australian Consumer Law, Food Safety Regulations, Local Council Rules, Employment Law, and Privacy Laws is crucial for smooth operations.
- Protecting Intellectual Property: If you create branding, logos, or unique recipes, securing intellectual property rights ensures your business remains protected while avoiding infringement on others.
If you would like a consultation on starting a coffee van business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
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