I have a friend getting into the food business. What's your best advice?
1.Food licenses online catering orders?
2.Food truck & license?
Or
3.small storefront restaurant & license?
Which is more cost effective? And are all the license processes the same?
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Answers (21-30)
Food business is very demanding, but it is a major industry. The people that succeed love the business and would not be anywhere else. Frequently, they have grown up in a family owned food business or food has a special place in their life since they were very young. Food and serving others is in their DNA.
If you know the food industry is a MUST for you, the identify the right opportunity that matches you skills and passion. Study the different food business models. The key models are food manufacturing, food preparation, catering, restaurant or fast food models, mobile or brick and mortar. The biggest constraint is all the up front costs and then sustaining a consistent operating process that generates profit.
Brick and mortar is very expensive up front, food truck then catering. Catering is the easiest to launch, however, it is a primarily a sales and marketing effort and resource management. The big drawback is that this business model requires you do more than just deliver food. Clients usually have expectations for event services including entertainment and logistics of setting up and the site. Licenses are not that difficult to get. Licenses to serve alcoholic beverages are a separate item.
Food trucks have a big up front cost of the truck. Securing a stable site and following rules about hours and location have to be addressed in the marketing and sales plan. The logistics of storage, food prep and cooking in a small space require efficient operations plans and management.
Staffing in the food business is challenging in a low wage, high demand industry. Be sure to hire well in the front customer facing roles and the lead chef, cook roles.
Agree learning the business as an apprentice to the successful chef or restaurateur is important. Recognize you have to grow into being the owner, leader and decision maker to sustain and grow the business.
Truck is easier than brick and mortar . However very specific rules about Food trucks carts etc.
Cheapest is an existing licensed facility .Trucks are an awesome route but they are supposed to return to a legal commissary daily for cleaning . Health inspectors vary from area to area. At times you get an inspector that is very helpful and willing to get you open . At times there are inspectors that seem Toto really be meticulous and it may seem frustrating .
You must consider zoning , planning and health departments . Depending on your location other agencies may need to review as well .
Like Cal Trans , , traffic studies and other possible requirements .
Let me know if you need further assistance . I love helping people get up and running in a good cart or kiosk Z
Greg
I agree with many of the comments below around working in the restaurant/food business for at least 2 years for experience first. Then, put together a really good plan around 3 main areas:
1) Cash Flow (rent negotiations, COGS, revenue margins, inventory and vendor management) 2) People (clear recruitment process, on-boarding/training, and well communicated policies and procedures) 3) Product and Experience (the product and overall food experience needs to be authentic to what the owner wants to achieve and who they are targeting/wanting to attract)
Usually the Alameda SBDC as well as the Silicon Valley SBDC have free seminars and workshops that can support new food business owners. Any additional support, please feel free to reach out.
Starting a food business can be very rewarding. Don't expect to be a millionaire within the first few years but do your best to serve your customers with healthy, fresh, and delicious food along with great guest services. Be willing to sacrifice for the customers and I'm sure your business will be noticed/discovered by those who are always looking for stand-out restaurants. Plan to win and don't give up that easily as well.
My advice is: I support anybody that would like to go into business, however there are couple important things to analyze. 1st timining and reason to start! Don’t do it for money! do it because you know it and you like it! And 2nd is preparation make sure you know the business and you have financial backing Do Not start with no money because you will build customer basis but that takes time. God Bless and Good luck! Joe Clydesdale.
Food Trucks are becoming more popular. To answer the question really depends on the area. If it is an area with high foot traffic like NYC, then food truck. Low foot volume, then small storefront.
this is ideal in summer events; get connected to places n organizers of different event and get out of your spot- go beyond.. .
100% agree with Maury!
Make sure they have a good amount of previous experience
Do not take on too much at once. Start of small and build relationships before moving on too catering and deliveries