The most interesting part of the Food Industry is that it has room for every new entrepreneur. To clarify, the demand for food is high since food choices differ from person to person. Eating is a basic necessity of life. To put it differently, there is a high demand for resources to get food that suits the taste of a particular consumer.
As a result, if you wish to hit big in the food industry, you have the ball in your court. To make room for yourself in the huge food market, you need some useful food business ideas. To kickstart your career and follow the right path, you need a proper idea about the food business industry. Here are some tips aiming for fresh talents entering the world of food business.
Are Food Businesses Successful?
Analogous to the fact that the food industry has room for everyone, a report says that around 60% of restaurants shut down within 5 years of their opening. Not limited to that, around 80% cease their operations within their first 5 years.
You do not need to feel discouraged.
The key to success is taking baby steps towards your goal. Equally important, you should also be aware that running a business is not a cakewalk. Above all, there is an estimated success rate of 20%. To be a part of that 20% you need to figure out a strategic plan.
This plan has to be efficient and practical. I know you have big dreams of taking the food business industry by storm. As has been noted, starting small is always a good idea. By following these tried and tested food business ideas, you are sure to accelerate your journey as a first-time entrepreneur.
4 Profitable Business Ideas for First-Time Entrepreneurs
#1. Cloud Kitchens
Cloud kitchen or Ghost kitchen is basically an online shop which takes orders through digital platforms. Owing to the pandemic and the free time at the hand of most food business aspirants, social media platforms are booming with cloud kitchens. It is a great way to start up your food business, with less investment. In effect, it is possible to start a cloud kitchen from the comfort of your home. Not to mention, there are certain expenses such as hiring delivery services, cooks and buying supplies.
On the contrary, there are some clever plans which can reduce the cost. According to a source the Cloud Kitchen Market size is predicted to reach $71.4 billion by 2027 with a 12.0% CAGR from 2021 to 2027.
The ease of delivery in a small time is what attracts customers to cloud kitchens. That is to say, this is one cost-effective food business idea for new entrepreneurs.
#2. Food Trucks
The reason for the success of this food business idea lies in its mobility.
To be able to move your shop to areas with potential customers can prove to be profitable for your food business. Not limited to this, a food truck can give the chef creative liberty to create their own authentic menu. It is similar to working at a restaurant but at a much lower cost.
The most popular things to serve are burgers, hot dogs, cupcakes and desserts. When planning a food truck, it is better to aim for handy food items that the customer can have on the go. It is also important to spot certain places with potential customers and request legal permissions to run your business there.
All things considered, food trucks can prove lucrative and could be a useful baby step in your food business journey.
#3. Ice Cream Parlors
Ice cream is one of the most versatile desserts with a great variety to choose from Italian Gelato to soft American serves. The most intriguing part is its appearance. Adding to this, it is served in cups, cones and or sticks which naturally draws children to ice cream parlors.
Well, even the crankiest of consumers can pick their choice owing to the wide variety available. Another key point, if you are planning to start your business in the US, you have a high chance of success.
The ice cream industry in the US reported $5 billion in revenue in 2014 which has been growing higher every year.
Now you know the power of this fun, happy and mood-lightening dessert. You can leverage its power in starting up your food business. It definitely will prove a good option for novice entrepreneurs.
#4. Coffee Shops
How do you think Starbucks started? Back in 1971, it was a basic coffee store, selling coffee beans and a variety of tea to the customers. It gradually started selling beverages with the passing years till now it has become the favourite coffee joint in the world.
I am not advising you to copy Starbuck’s journey step by step. As a matter of fact, a coffee shop can be a reasonable business idea for you. The main focus when starting a coffee shop should be on branding to stand out from other coffee stores.
Adding to it, the supply of coffee is easy and your startup expense won’t be heavy on your pocket. With all adults becoming ‘caffeine addicts’ today, coffee shops can prove highly profitable for you.
In Conclusion
The food business industry might be a highly competitive one but it accommodates a large number of entrepreneurs because of its vitality. Apart from ideas to start your food business, you need strategic planning.
Try to go for the most cost-effective option, keeping in mind your budget. You shouldn’t jump over putting in huge amounts of investment, because the success rates are low.
All you need is to make small yet practical decisions to ace your food business. Patience is the key to running a successful food business. You should focus on getting the most profits out of your income. Remember, each drop forms the ocean, so don’t be impatient with your business! Besides, a passion to serve and cater to the needs of your customer is all you need to get started.
Are you ready to start your food business journey? Which of these food business ideas did you like? Comment down below to let us know!
