While discretionary spending has recently decreased, hurting overall industry revenue, some niches thrived. People instead shifted to cheaper alternatives, whose revenues saw substantial growth.
Now that the global economy is recovering, more people are purchasing their normal foods once again.
Increasingly tight health regulations will increase expenses, which smaller companies may not be able to manage.
Depending on what aspect of this industry you want to enter, startup costs will vary widely.
Retail Food Business
Before you do anything, make sure you possess all necessary licenses and permits. If you are starting a physical location, regulations are strict. However, you can sell certain food products online.
Some areas do not allow you to use your home kitchen to sell a commercial product. Keep this in mind if you are considering a retail food business for sale.
Be sure to have a great inventory tracking system in place. No matter how you enter this industry, you will have substantial turnover in inventory.
If you are starting a physical location, take stock of which equipment you will need. Equipment and labor are your two largest initial costs. Your health department may require other equipment in addition to what you currently have.
If you have strong culinary talent, keep in mind you will also need strong business skills. Small price differences add up to one large difference when you sell hundreds of a single product.
Determine who your customers are and how you will reach them. Flyers, advertisements, online directories, and trade shows will get you started.
If you're considering growing the company, prepare to hire employees. Keep in mind not to hire based solely on experience. Having someone who fits the system and does a great job on their own is more valuable than an experienced, but troublesome, employee.
While in many companies you can do the accounting yourself, this may be one where you hire help. You will have hundreds of transactions on a weekly basis. The time it takes to track all this is enormous.
Your skills are best used in areas where you are already strong. Don't waste your time managing daily minutia.
If you are considering selling a retail food business, now may be a good time. Prices will rise with industry growth, but not at a fast rate. Alternatively, if you are thinking of buying a retail food business, now may not be a bad time either.