The UK’s pop-up retail economy is booming and is currently worth £2.3bn, according to a 2015 report from the Centre for Economics and Business Research. It seems not a day goes by without a restaurant reviewer or fashion editor hailing a new pop-up restaurant or designer outlet as the hot new place to splash our cash.
Many entrepreneurs start with a pop-up shop, market stall or roaming van these days before putting down roots – often for good reasons, such as lower premise and utilities costs and the ability to reach a wider range of prospective customers. Thanks to social media, it’s easier than ever for entrepreneurs to create a buzz around their transient business offerings.
But it’s not all plain sailing for pop-up retailers. It can be difficult to grow a loyal customer base when your whereabouts is variable on any given day; and taking payment is a clunky process if you lack the means to take card payments.
So what is the day-to-day reality of running a pop-up business? Does being mobile bring any unique perks? And how do mobile business-owners overcome the struggles they face daily?
“Every day is different”
Makatcha is a mobile business that sells south-east Asian street food at markets and music festivals. Maria Knowles, the owner, says being a mobile business makes her appreciate having a customer-facing role: “Being at different sites each day means every day is different. You meet lots of different types of customers – from the lunchtime office crowd to tourists and locals.”
Makatcha has two mobile Barclaycard terminals, which enable the business to take card payments as well as cash. Knowles says the benefits of these are manifold: they allow customers to buy on impulse when they’re without cash, they speed up the payment process and they accept contactless mobile payments. “Contactless is amazingly quick and when we’re busy it allows us to serve more quickly.” With no need to give change, staff are freed up to serve a greater number of customers.
So far Knowles has managed to attract customers with strong branding, an active social media presence and Makatcha’s unique culinary offering. She aims to make her brand even more “visible and recognisable” in the future, and then possibly open a bricks and mortar shop.
“We reach a much wider spectrum of people”
Paz Sarmah is the co-founder of Bad Brownie, which offers “dangerously good” brownies around London. He says being a mobile gives him and his business partner Morag Ekanger flexibility and enables them to “reach a much wider spectrum of people than we would ordinarily do”, as they often operate from various locations in the same week.
The short-term nature of a mobile site also helps to generate excitement, says Sarmah. “Because it’s for a limited time, people are much more excited and willing to try something in case they miss out – our liquid salted caramel brownie gets long queues at mobile markets.”
The downside, however, is that people miss out. “While it’s exciting to be there for only a day or two at a time it’s a shame, in areas where we do really well, to not to be there longer,” adds Sarmah. The company posts upcoming dates and locations via social media and on its website to keep people in the loop.
Despite the drawbacks, Sarmah and Ekanger will never give up the mobile side of the business, but they hope to open a more permanent shop at some point that can work in conjunction with the mobile business. “The benefit of a fixed site is the ability to do things you just can’t from a gazebo – we can have drinks, puddings and all sorts.”
“We serve in more interesting locations”
Graham Faragher co-founded Bertha’s Pizza, a mobile sourdough pizza van that operates in Bristol, with his wife Kate. They are part of the Bristol pound*, the city’s local currency, which enables them to accept payments via text message. They plan to open a bricks and mortar restaurant in Bristol this summer.
There are multiple benefits to being mobile though, says Faragher, including instant customer feedback and lower setup and overhead costs. “We can also serve in more interesting locations – such as halfway up the Old Man of Coniston, up a steep gravel track.”
While it’s fun, it’s also “hard, physical work bringing a pizzeria to the people,” he says. “I’m usually shattered before the event starts. Trade is very weather dependent and it’s also challenging to manage our dough over a range of temperatures.” To anyone operating in unpredictable conditions, Faragher would advise packing a raincoat, an extra layer of clothing and additional weights to hold down a marquee.
“Just start”
If you’re attracted to life on the road as a small business, Faragher advises: “Just start. You’ll learn an incredible amount in a short space of time. We make notes after each event on how we could improve and these have been invaluable.”
Sarmah, from Bad Brownie, echoes this: “There’s no better feedback than finding a local market, selling your wares and seeing what happens.” Get your relevant insurance and health and safety documents sorted beforehand, he adds, and speak to customers to understand what’s working, what isn’t and what can be improved.
When it comes to taking customer payments, it’s also worth being aware of the direction the market is heading. Contactless mobile payments were introduced in the UK last year, and James McDonald, head of strategic initiatives and innovation at Barclaycard, says they will continue to grow. The seamlessness of the method means small-business owners will need to make especial effort if they want to interact with customers.
“Consumers want a frictionless experience, but some retailers actually want friction,” says McDonald. “They don’t want people to drop out because it’s too much trouble, but they do want to be able to engage with their customers.”
Content on this page is paid for and produced to a brief agreed with Barclaycard, sponsor of the Smarter Working hub on the Guardian Small Business Network.
*eligibility criteria applies
