How to Start a Food Business From Home
Many people dream of starting a food business. Maybe you have recipes that everyone loves. Maybe you love to cook or bake. Or maybe you’ve dreamed of having your own restaurant.
Of course, starting a restaurant or a bakery is expensive and can be risky. According to a survey of 350 restaurant owners, average restaurant startup costs are $375,500. So some people would save their money, waiting patiently until they could get a loan to start a bakery or restaurant with a physical location.
But you don’t have to wait if you don’t want to.
Many people don’t realize that in most states, you can start a food business from home totally legally.
For instance, in New York State, you can legally make breads, cakes, mixes, snacks, and other items without a commercial kitchen or any kind of inspection. All you need to do is submit a one-page form and make sure your food labels include: name of the product, ingredient list, weight, your name and address, and any allergens. That permit allows you to sell those foods to individuals, at farmers’ markets, and even wholesale to businesses and restaurants. So people could be making and selling food within the span of just a few weeks. This is a way that anyone can get started towards the dream of owning a restaurant, bakery, or food business with zero capital.
Almost every state allows home food production, most with a free or cheap registration and no initial inspection. Yes, there are limits to what you can sell of what you produce in your home kitchen – but the cost and hassle savings can be worth it. For an excellent guide to the specifics in each state, click here.
If your state doesn’t allow you to produce the foods you want to at home, another option is to rent commercial kitchen space near you. This can be a shared kitchen, ghost kitchen, or even an informal arrangement with a restaurant on their off-hours. This website can sometimes be helpful for finding space. For even $25/hour this can be a low-cost, flexible way of getting started in producing the foods you want to make.
Of course, once you figure out how you’ll produce the foods you make, there is the question of selling them. This doesn’t have to be complicated either. Ways to sell food or desserts without having your own restaurant or bakery:
At farmers’ markets. Farmers markets can be a great way to build up a loyal base of local customers, as well as to try different ideas on a consistent basis.
To local restaurants or small grocery stores. Many local restaurants (or small grocery stores) are happy to pay vendors for fresh “homemade” items that they don’t have to make in-house themselves. Plus, pitching small restaurants directly is usually easy enough since the owner is often on site.
To individuals and small businesses. Sometimes it makes sense to sell directly to friends, neighbors, or local businesses. They can preorder what you make and pick up from your home (or other location) on certain days and times. Or you can deliver to them on a set schedule.
At a pop-up. This one sometimes takes a little more finagling, but it’s often possible to negotiate a store-within-a-store setup with a local grocery store or restaurant. You can consider a pop-up (on off hours) concept or a “stand” within the store that operates simultaneously with the larger store.
On a food truck. Regardless of whether you make the food in the food truck or not, you can sell from a food truck. Laws on food trucks vary a lot by state, county, and municipality, but it may be an option (even with tables out front.)
If you’re ready to get started with a home food business but still aren’t sure where to start… or if you need help with figuring out permits, making a plan to move forward, or with marketing and sales – Briico can help. We’ve helped thousands of people start and grow small businesses. Our Start Program helps you choose the right business and get things set up well from the start. We give you crucial education as you go and are your “on call” coach for questions and opportunities that arise.
Ready to learn more and get started? Just click here to learn more and talk with us about whether Start is right for you.