Churro stand: keys to success

A churro shop or churro stand is an attractive business because of its high profitability, thanks to the fact that it does not require a large initial investment and it is not expensive to keep it running

Many people wonder how to set up a churro shop, but what do you need to set it up? In order to open a churro shop, you not only need to know how to prepare churros, you also need to know which are the right machines for the business, what space is suitable for you to open your churro shop or how to obtain the necessary licenses.

Know all the important aspects, procedures and equipment you need to set up a successful churro shop in a short time

You need this to open a churrería

You cannot open your business without having certain basic aspects defined, such as business planning and having the premises or place where you will set up your churro stand.

Both steps are important to have the basis of how you want your churro shop to be and what strategies you will use to attract new customers.

Business-focused strategic planning

Regarding the strategic planning focused on your business, you have to investigate what is the churro shop competition in the area where you want to open your business and create a business proposal that makes you be seen like more interesting than othe business.

It is also important to define your target audience and design the menu of your churro stand, as well as offers or promotions that will attract everyone’s attention.

Within this strategic planning you must also establish what you want to be the image that characterizes your churro shop, what will be the media to be used to carry out the marketing strategies and the strategies you will define to increase your reach.

Location where the churro shop will operate

Churrerías are not businesses that require a large space to start operating . Generally, the choice is between mobile churro stands or a place that is no larger than 50 square meters

Whether it is a mobile stand or a local, it has to be located in a point of the city where there is a good flow of people, at any time of the day and throughout the year

A good tip is to set up churrerías around squares, sports facilities, theaters, shopping malls and other busy businesses

In the case of mobile churro stands, you can choose to use a food truck to sell churros throughout the city. In addition, you will have the ability to participate in fairs, events, concerts or markets.

Equipment for a churro stand

The equipment to have a churros stand is integrated by the machinery, the furniture and a system that facilitates the ventilation and extraction of the smoke produced by the cooking of the churros.

Take a pen and take note of each of the equipment that you must acquire to start up your churro shop.

Machinery and supplies

To define the machinery you need, take into account the three fundamental processes that make up the preparation: kneading, frying and serving.

In each of these steps, you will need equipment or machinery to make the preparation easier: fryer, kneader, trays to drain the churros, bowls, dosing machines, chopsticks and tongs, are some of them.

To serve, you will need paper bags for churros, greaseproof cones, plates, napkins, straws, disposable cups for chocolate, among other basic products to serve your customers as they deserve

As the demand for your churro stand grows, you will need to increase the amount of equipment or your production capacity.

Ventilation equipment

Ventilation equipment consists of all those extractors that allow the smoke generated in the establishment to escape through filters that purify its odor.

Make sure that the chimney through which the smoke comes out is located upwards and does not disturb neighboring buildings.

Furniture

As for the furniture, you have to acquire work tables to prepare the dough for the churros, shelves for storage and refrigerators

To offer an excellent customer service it is important to buy tables and chairs where your customers can sit and enjoy their order. Preferably, choose stainless steel ones for easy cleaning.

Likewise, you cannot leave out the decorative objects of the establishment or stall, to attract the attention of people passing by your churrería.

Permits and licenses to open your churro parlor

There are different types of catering licenses and as in any gastronomic business, it is a must to have all the permits and licenses up to date to set up a churro shop. How to obtain the licenses for your churro stand?

The first document that you must have in your hands is the civil liability insurance. It is essential to cover any accident that may occur in the establishment

On the other hand, all the staff of the churro shop that has contact with food must have their food handling license in force.

Also, you have to apply for the activity license in the town hall of your autonomous community, so you will have the permission to start up your churros stand

Finally, you have to register in the tax of economic activities, in the special regime of self-employed workers and to constitute the society of your churros business.

Is a churro stand profitable?

It can be said that the churro shop is synonymous with profitability. They are businesses that do not need an important sum of money as initial investment. Also, the purchase costs of the necessary ingredients to prepare the churros are not great and the profits of the establishment are greater.

It must be taken into account that seasonality affects this business more than others in the hotel and catering industry: in summer, street stalls and churros shops close their shutters due to the low demand for this product in the hottest months of the year. In addition, sales are higher on weekends and holidays. And if you opt for a food truck, unless you go to markets or fairs during the week, sales will be very small. This goes up again on weekends.

Therefore, it is important that if you set up a churrería in a local, you have a plan for the summer months, keeping it as a cafeteria or bakery. And if you opt for a traveling environment, you should be interested in all the summer fairs you can attend.

It is important to remember that, if you sell a quality product, you will have a lot of demand from local people, visitors and tourists.

is there a lot of competition in the churro sector?

As in any restaurant or hospitality business, churro stands have their competition. However, there is nothing that a good sales strategy cannot solve.

If you have a gastronomic and service offer different from the rest, you will have a better chance of attracting new customers

For example, offering a 24-hour or home delivery service can make the difference between the common service of any churro shop and what your target audience is looking for.

Mobile or fixed churro stand: Which is better?

Either having a churro shop or a mobile stand are good options to start a business, i.e., it is not necessary to have a mobile stand and then move to a shop.

However, it is important to take into account the aspects, advantages and limitations offered by each of these modalities.

Setting up a churro shop in an establishment allows customers to come and buy churros as many times as they want. However, it offers the limitation of depending on the area in which it is located.

Mobile churro stands, on the other hand, are versatile and allow you to attend events, markets and fairs in different areas of the city. This ensures that a greater demand is met than would be possible in a local store.

The disadvantages are the need to issue additional permits in order to operate, so it could be a little more complicated than opening a fixed churro shop.