REDUNDANCY hit workers are spending their payments on catering vans – only to find there is nowhere for them to trade.

Would-be entrepreneurs are spending as much as £19,000 on vehicles in the hope of setting up their own businesses, without realising that with virtually no pitches available they will struggle to sell a single burger.

Stoke-on-Trent City Council is advising anyone looking to set up a mobile catering business to secure a pitch before investing any money.

The city council issues permits for nine pitches across Stoke-on-Trent, but it has been three years since any were vacant.

Rob Nixon, markets manager at the city council, says 168 people are currently on the waiting list for pitches, with nine new inquiries being received every week.

Mr Nixon, below, says interest has increased considerably in the last six weeks due to the recession.

He said: "There's always been a steady interest in catering, as people believe it's something anyone can do – anyone can flip a burger. In the past we've had one or two calls a week, but now we're getting about nine.

"They're not just from this area either. We've had people calling from Birmingham and Manchester.

"If people are unable to find a pitch, they're selling their vehicles on. I've seen the same van parked outside my office several different times.

"I've spoken to someone who spent £19,000 on a new vehicle, and one man was literally in tears down the phone to me, after he had spent all his redundancy money on buying a van."

Mr Nixon said that areas affected by redundancies were often targeted by businesses selling catering vans.

He said he wanted to help them avoid ending up with even more problems.

Mr Nixon added: "I have a lot of empathy for these people. They're small entrepreneurs, which is what our department is all about.

"But they need to make sure they have a pitch before they spend money on a unit."

Mr Nixon said there could be some available on private land. But prospective caterers would need the landowner's permission, planning permission, a food hygiene certificate and public liability insurance.

Former haulier Graham Walker started up his own catering business 20 years ago.

He says he would advise anyone against entering the trade now, even if they could find a pitch.

Mr Walker, aged 65, of Boulton Road, Wolstanton, said: "It was just something I decided to do when I was driving. It was appalling how bad some of the places people had to eat were.

"But I don't know why people are trying to get into it now. I've seen so many people come in and fail to make a living from it. Even if you have a good pitch, like we do, you're going to struggle, especially in an economic downturn."

Staffordshire Moorlands District Council does not generally restrict the operation of catering vehicles, due to low levels of interest.

The only areas where restrictions do apply are Derby Street, in Leek, where a permit system is in operation, and the area round Alton Towers.

In Newcastle, anyone wishing to operate a roadside catering van would need permission from Staffordshire County Council, and a food safety certificate from Newcastle Borough Council.