Source: Radio New Zealand
More Chinese migrants are investing in coffee vans to launch coffee businesses in Auckland, arguing it’s the most cost-effective way to test the market waters before committing to a physical location.
But as competition intensifies, securing a stable operating location has become increasingly difficult for some vendors.
Kaiyi Huang, a second-generation Chinese New Zealander, has been operating a mobile coffee and tea business called Xian Kona from a 5.7-metre truck since February.
After graduating in 2023, Huang worked part time as a barista and later as a dental assistant.
She said a tight job market prompted her to try her hand at the coffee truck business.
“I started the coffee truck because the economy in New Zealand is pretty bad,” she said. “I couldn’t find a full-time job.”
Kaiyi Huang runs a mobile coffee and tea business from a 5.7-metre truck at YiCart Asian Supermarket on Auckland’s Dominion Road. RNZ / Yiting Lin
Huang said the part-time work she held at the time did not provide sufficient income.
Her parents, who are vegetable farmers, converted a family truck into a mobile coffee shop to support her.
Primarily operating from YiCart Asian Supermarket’s car park on Auckland’s Dominion Road during weekdays, as well as at the Pukekohe Park Country Market on Sundays, Huang said the business initially struggled in its early months but picked up toward the end of the year, as more markets and festivals opened for the summer season.
However, competition remained intense as more vendors also entered the market.
“I’ve also heard of physical cafes closing down and switching to mobile businesses,” she said.
Huang said standing out from competitors in the market was difficult.
She credited the popularity of signature drinks such traditional Cantonese lime teas and matcha-flavoured beverages for decent sales.
Many vendors, she said, were less fortunate, particularly those unable to secure a permanent location for their mobile coffee businesses.
“A lot of people that I know who do the coffee vans are doing it as a side hustle,” she said. “Not a lot do it full time. They don’t have a permanent location to set up every day.”
Huang said her long-term goal was to open a physical cafe, with the coffee truck serving as a complementary option.
Momo Yu converted a small van into a mobile coffee shop to operate her business. RNZ / Yiting Lin
Momo Yu, an Auckland-based operator, also hoped to open her own cafe.
Before doing so, she started coffee van business Moffee in 2024 as a way to test the viability of running a cafe business.
Yu invested about $50,000 in a small van and essential equipment to get started.
Yu said operating a coffee van was the most cost-effective way to enter the industry, particularly for a solo operator.
“It can cost at least $200,000 or $300,000 to open a physical cafe, which I can’t afford,” she said. “It’s also impossible for me to run a cafe on my own.”
Yu said the coffee van business had become a growing trend within the Chinese community from 2024 through mid-2025, drawing many young people into the market.
She said many operators, herself included, made an early mistake by buying a van before securing a stable location.
“Location is the key,” she said. “Many people think they should get a coffee cart first. I made the same mistake. I bought my van, but I had nowhere to go at first.”
“Most markets already have long-term coffee vendors,” she said. “It’s difficult to break in.”
Through referrals from friends, Yu later secured two stable operating locations, one at Auckland’s MacMurray Centre and another next to Cantonese restaurant Hungry Head on Torrens Road.
She said weather conditions posed another major challenge for coffee van operators, directly affecting daily sales.
“I work five days a week now, but during winter I used to work only three or four days,” she said. “If I work just three days, revenue drops significantly.
“Sometimes people don’t want to come out to buy coffee in winter because it’s too cold. They prefer to go to a cafe, where they can sit in a warm environment and drink coffee.”
Despite the challenges, Yu said the coffee van remained the most suitable business model for her, and that she enjoyed making coffee for a wide range of customers.
“Running a small business is like drinking a cup of coffee,” she said. “It smells great, but it tastes bitter. If you run it well, it becomes sweet. For me, it’s both bitter and sweet right now.”
The interior of Momo Yu’s coffee truck. RNZ / Yiting Lin
Chris Zhang, who has operated a coffee cart business called Moss Coffee for about three years, said he had carved out a niche by providing catering services for events and companies when competitors attempted to squeeze margins, rather than rotating through markets and locations.
“Catering actually has a fairly large market,” he said. “Many companies inquire about this service. It’s like bringing a coffee shop to their doorstep and providing the service on site.”
Zhang said the advantage of catering was that revenue depended on service contracts rather than the sale of individual cups of coffee.
“There are many open homes that provide free coffee on site,” he said. “For example, I might make 40 cups of coffee in an hour. I don’t charge by the cup, I charge a service fee.”
He said the work could be both steady and demanding. On some days, Zhang worked from 8am until 9:30pm, driving his coffee van between three different events.
The schedule provided stable income, he said, but also came with significant stress.
Zhang said the relatively low cost of operating a coffee cart business was a key reason many Chinese entrepreneurs were drawn to the sector.
He lived in the Auckland suburb of Hobsonville, where at least four coffee cart businesses were currently operating, he said.
“If you already have a van and want to keep costs down, you can buy secondhand equipment,” he said. “It would cost around $20,000 to get set up.”
Zhang agreed the main challenge was finding a suitable place to operate the business, a factor he said should be considered before getting started.
Chris Zhang says the relatively low cost of operating a coffee cart business is a key reason many Chinese entrepreneurs are drawn to the sector. Supplied
Veronica Lee-Thompson, principal specialist in licensing and environmental health at Auckland Council, said coffee van owners must be registered to sell coffee, as well as hold a current mobile trading licence if operating on public land.
However, Lee-Thompson said some exceptions existed.
When an event is held on public land, traders are covered under an event permit issued by the council and do not need a separate mobile trading licence.
“Regular markets on public land are generally authorised under a market licence or other council approval,” Lee-Thompson said.
“This allows mobile vendors to participate without requiring their own individual mobile trading licence.”
Lee-Thompson said operators should also be aware that a standard mobile trading licence allowed trading at up to five locations.
However, it did not permit overlapping trading hours, meaning different locations could not be used at the same time under a single licence, she said.
She said not every public location was suitable for mobile trading.
When assessing applications, Auckland Council reviewed the suitability of a site and considered potential impacts on public space, access, safety and the surrounding area, she said.
“We encourage anyone interested in starting a coffee van business and planning to trade on public land to get in touch with our team,” Lee-Thompson said.
“We can provide guidance on the requirements and help determine a suitable trading location.”
– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand