Advice wanted for reselling BBQ


 
R

Robert Shackelford

TVWBB Member
Not sure if this is the correct forum for this but here goes.
It's been a couple years since I first bought my WSM and have only been selling my "leftovers" to co-workers, friends, and neighbors for barely over my costs.
Recently though, I gave a small gift bag of pulled pork to our receptionist and he in turn let a guy who owns/operates a food truck sample some. The dude loved it and wants to partner up with me.
I ended up giving him 15lbs (at cost) just to see what kind of interest there was and he sold it all in three days, so the interest is definitely there. (dude made a huge profit I might add)
Needless to say, I now have a standing weekly order to deliver 20lbs of pulled pork for him to resale on his route...if I want the business.
Is this legit or do I need some kind of license for this?
What kind of pricing should I charge? I can buy raw shoulder for about $1.40 or less around here and so I'm thinking somewhere around $7.00 per pound.
Any kind of advice would be greatly appreciated.
 
You cannot prepare foods at home for retail sale almost anywhere in the country. (People do it but it is not legal.) Where it is still possible, a health inspection and license must be obtained. The process for this varies. San Diego County's health department can give you more info (it might be available on line) but if you call, DO NOT mention that it's something you've already done.

There might be a way around it if the food truck guy has a license for on-site food prep (not common for food truck guys) but then you would need to cook/package/store at his licensed location. Whether or not you need another license--like a C.O. or a business license is up to the County. It is also possible that they require a food safety or food handler's license. Again, the HD has the info.

If you are able to make it work (or decide to do it anyway) then pricing should depend on a number of factors. The first is cost of ingredients. Remember that there is loss due to shrinkage/waste. If you figure $1.40/lb and 50% shrinkage/waste then your actual cost is $2.80/lb--for the meat alone. Adding in spices, packaging, etc., I'd go with a minimum of $7.75/lb but only with a 20 lb minimum purchase. Be sure of your meat price though and see if you can get it for less in cases--but don't lower your price to the guy. It's not worth doing just to be able to sell it.
 
Great response Kevin. Exactly the kind of info I was hoping for.
I had to ask about the legality of this since I thought I remembered a local family being fined for making sandwiches in their kitchen and then selling them in one of these trucks a few years back.
I'll talk to the guy about licensing and see what he says and then contact the health dept afterwards and see what they say.
The $7.00 price I came up with was actually after I did some math on a 40lb shoulder purchase and considering the 50% loss. Nice to see your numbers in the same ballpark as mine.
Thanks again.
 
If your food truck guy is legal, he probably operates through a county supervised commissary.
In our part of the country street vendors like a hot dog cart can prepare their commissary approved
food products on site on their cart or truck. It might be more interesting and profitable for you to investigate preparing and selling your BBQ at
events like outdoor antique markets, car shows and the like. Many of these events have currently established food vendors. But good BBQ sells itself. Location, Location, Location.
Why should you do the heavy work and let the food truck guy make the majority of the profits?
 
fwiw, I think you should get some legal advice about setting up an llc or S corp. Lets say that you buy some bad meat and people get sick...or the guy doesn't properly refrigerate the meat...or someone gets sick and its nothing to do with you but they sue you anyway. If you don't have the protection of an S corp or an LLC, they can personally sue you and, if you lose, take personal assets (ie house and savings).

I am not a lawyer, so my advice could be totally incorrect, but legal advice would be my first stop. I wouldn't be able to sleep at night without my llc.
 
In Sacramento and Yolo counties, you have to be affiliated with a restaurant to have a food truck. There are *lots* of food trucks around here, and I eat at them often...and the cops *do* check them, regularly. It's a real hot button issue in many CA cities because the blue hairs don't want the trucks around, saying they are "blight". Nobody else really cares about them. But just so you know, it is one of those things that is enforced pretty strongly...at least around here.
 
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