Street Food in Arendal: Industry Overview and Outlook

Street food in Arendal is an active sector with 9 registered companies, but with significant variation in operating results and scale. In recent years, the sector has been marked by declining sales, with a 40% drop from 2022 to 2023. However, data shows that some companies, such as Lai Lai Take Away As, achieve profitability with a 6% EBITDA margin. The sector has a mix of AS and ENK entities, and there are several new companies in progress, although many have not yet started operations. Outlooks for entrepreneurs are mixed, with both challenges and opportunities related to local competitiveness and market development.

In 2025, the street food sector in Arendal had a total sales volume of NOK 4.0 million, with 30 employees. This is a decline from the 2020 peak of NOK 12.5 million and 74 employees. Sales development has been unstable, with a 77% increase from 2017 to 2018, but a sharp decline of 39.2% from 2021 to 2022. The EBITDA margin stands at 6%, and the average wage per employee is NOK 52,400. The most profitable companies have a higher average sales per employee (NOK 821,100) compared to those without operating results.

In Arendal, there are 9 companies in the street food sector, distributed as follows:

The key companies include:

• Lai Lai Take Away As (Torbjørnsbu 3): Operating profit of NOK 259,000, 4 employees, 13% sales growth.
• Sub 8 As (Sagvannsveien 16): 19 employees, but with a negative operating profit of NOK -7,000.
• New companies such as Alhennawi Firefly and Arendal Brygghus As have not yet started operations.

There are no registered bankruptcies in the sector, but several companies have 0 sales and 0 employees, which may indicate potential instability.

All 9 companies in the street food sector in Arendal are registered in the municipality, without further subdivision into sub-areas. There is no data on distribution between Arendal's different parts (e.g., city center, north side, south side). This may indicate that the activity is spread throughout the municipality, but there is no registered detailed information about specific locations within Arendal.

The sector has been marked by significant variations in operating results and number of employees over time. There are no registered bankruptcies, but several companies have 0 sales and 0 employees, which may indicate instability. The number of employees has fallen from 74 in 2020 to 30 in 2025, with a decline of 59%. At the same time, sales figures have fallen from 12.5 million in 2020 to 4.0 million in 2025. This may be due to both competitiveness and changes in customer behavior, as well as the introduction of new companies that have not yet started operations.

For entrepreneurs in Arendal, it is important to be aware of the unstable sales and operating results in the sector. Although there are opportunities to establish themselves, there is also competitiveness from existing companies such as Lai Lai Take Away As. Entrepreneurs should consider focusing on unique qualities, such as specialized dishes or innovation in business models. It may also be profitable to collaborate with local actors to strengthen market positioning. SmartGrunder can help find suitable locations in Arendal for a new street food enterprise.

In the broader fast food sector in Arendal, there are 17 companies, compared to 9 in street food. Sales figures for fast food have been more stable, with an increase of 174.9% from 2022 to 2023. The most profitable companies in fast food include:

Compared to street food, fast food has a higher number of employees and more stable sales figures. This may indicate that the fast food sector has better scale and more established models, while street food is more fragmented and unstable.

Street food in Arendal is a sector with both opportunities and challenges. It is a growing market key in the broader fast food sector, but street food has a more unstable operating result compared to competitors. Entrepreneurs should consider focusing on unique qualities, innovation, and local collaboration to ensure competitiveness. At the same time, it may be profitable to leverage the growth in the fast food sector as a whole. SmartGrunder can help find suitable locations and strategies for a new street food enterprise in Arendal.