Food is an essential consumable item. Many aspiring entrepreneurs nowadays are seriously searching for profitable and trending food business ideas to start a new venture. Food is an important consumable item for the mass population. For the daily basis requirements, people need to buy food items regularly.
Broadly there are 5 niche subsections you can find in the food industry. These are food processing, food retail, food delivery, eCommerce and knowledge-based business. The startup costs to start the listed ventures will vary from low to medium depending upon the scale of operation.
List of 60 Profitable Food Business Ideas
Find below the list of small food business ideas with low and medium investment:
A bakery business can be initiated in two ways. You can either establish a bakery with a retail location and selling freshly baked items from your store. Or you can establish a large scale bakery unit and selling products through the retailers. A bakery is one of the proven and most profitable food business ideas that can be initiated with proper planning.
Brewpub business opportunity demands adequate knowledge and years of experience in microbreweries. Basically, the business is a restaurant and microbrewery combination that normally offers craft beer with different customized tastes and flavors to their clients on-premise. Studies have shown that drinking beer in different customized tastes is a trend of today’s phenomena.
#3. Fast Food Restaurant
Currently, a fast-food restaurant is one of the most profitable low-cost business in the food retail segment. Depending on your investment capacity, you can open a restaurant of any size. In this business, selecting the menu and tariff are the most crucial aspects that you must consider carefully.
As per reliable sources, 7 out of 10 restaurant owners are running their businesses as single units in the United States.
#4. Cake Shop
Basically, starting a cake shop is a lucrative food retail business. The business is easy to start and manage. Additionally, the cake retailing business is perfect for women entrepreneurs. Any individual can start this business by taking a minimum risk (finance).
Candy making business idea is a fantastic way to turn your hobby and skill into a profitable home-based business Homemade candies are very easier to make and also quite popular. From chocolates to lollipops, children and mature adults enjoy indulging in candy. It’s a wonderful idea you may consider to convert your hobby into a profitable, home-based candy making business.
#6. Catering Service
Catering service is a popular business in the food industry. For every small and big gathering and get together people always looking for a catering service. Apart from that, you will get business through event planners also. With moderate capital investment and proper planning, any individual can initiate a catering service of his/her own.
#7. Coffee Shop
Over the past decade, the coffee shop industry is increasing rapidly. The coffee shop actually treated as a third-place outside of work and home to relax. Coffee shop business is one of the best ways to turn your love for coffee into a profit-making business.
#8. Cookie Gift Business
If you are passionate about making and baking cookies, you can initiate a cookie gift business as a home-based or commercial. As a whole gift industry is booming and the demand increases in festive seasons. This is a self-rewarding and profitable business any individual can initiate with a creative mind.
#9. Cooking Classes
If you love to cook and enjoy crafting new tasty food recipes then you should consider starting a cooking class business. This business can be initiated as a home-based with small startup capital. You can have business tie-ups with retail stores that sell fresh foods.
#10. Dessert Shop
Dessert shop is a very popular and profitable business from the early days. This business approach is simple and straightforward. Simply you will need to have a store location. Keep different items like cake, pastry, cookies, ice cream, pies and any item that suits the locality food habits.
#11. Food Processing
Food processing business includes a vast activity of inventory management, processing, packaging, marketing, and distribution. Jam, jelly, squash, pickles, sauce, ketchup are a popular product you can produce. You can initiate the business on a small scale with limited and selected production targets. As your business grows, you can expand with different product variants.
#12. Food Truck
The mobile food truck business is different from a normal restaurant in two major ways.
One is you are moving and you don’t have a retail location. Second is you are going to the customers. A person having minimum experience in the foodservice industry can initiate this venture in the city area.
From food truck, you can sell frozen and packaged items like ice cream, soft drinks, sweets, and snacks or you can go for cooked items with a specific menu including for breakfast, Tiffin, lunch.
#13. Frozen Yogurt Store
Frozen yogurt store is a profitable business that can be started with small capital investment also. Selecting the right location and value-added products are the most crucial issues in getting success in the frozen yogurt store.
#14. Ginger Garlic Paste Making
Basically, ginger garlic paste is ready to cook the item. It comes under the FMCG segment. The shelf life is higher when stored in the refrigerator. Actually, ginger and garlic are two important spice for cooking many foods including non-veg items. Nowadays, the product has huge popularity throughout the globe.
The online homemade cookie making business eliminates the cost of renting a brick & mortar store. Additionally, you can start this business either of your own or with having one or two employees. As you are selling the cookies from your online store, you can attract a wide range of consumers. Additionally, an online operation allows you to promote your business online in numerous ways.
#16. Hookah Bar Lounge
Profitable Hookah Bar Lounge Business opportunity demands to learn the operational aspects related to the business. A truly passionate entrepreneur can initiate a hookah bar lounge business with strategic planning and substantial capital investment.
#17. Ice Cream Stand
For a metro city starting an ice cream stand or kiosk is a very profitable idea to generate a handsome income. You can also run this business as a seasonal and part-time basis. A mobile ice cream stand is more profitable than a fixed location comparing the ROI.
#18. Jam Jelly Making
Actually, jam and jelly are the most important food items in the food processing and FMCG industry. The products come under the preserves category. The manufacturing process is simple. Additionally, you can expand the business in several ways including area expansion or initiating new product line.
#19. Juice Bar
The juice bar is one of the most popular food business ideas from the early days. You can also keep synthetic juice with fresh juice. Fresh juice bar can be initiated with low startup capital. Location plays here an important role in getting success.
#20. Nutrition Coach
Increasing awareness about health among the people creates a demand for the nutritionist. As a nutritionist the main service you will be rendering that is, helping them as a diet coach to live longer with healthy health. This business can be initiated as a home based and part time also.
#21. Grocery Store
The grocery store is one of the most profitable food business ideas one can initiate with proper strategy making and substantial capital investment. Huge media promotion is needed. Crafting the right business model is important for a successful grocery shop.
#22. Organic Food Store
In starting an organic food store business most important consideration is the store location. As with any other retail business, the right location is the main parameter to get success in the business. With the increasing awareness of healthy living, people are more interested in taking organic food though they are more expensive than non-organic food. The retail organic food market is an emerging trend and it is growing by 20% every year.
#23. Packaged Drinking Water Supply
As the quality of normal water is decreasing very fast, people become heavily dependent on packaged drinking water. Now drinking packaged water is not a luxury, but essential. Packaged drinking water is one of the most profitable food business ideas one can initiate with substantial capital investment.
#24. Papad Making
Papad making business is very profitable in food industry considering the investment of low start-up capital. Basically, papad is often served as an appetizer. Generally, people consume it in all parts of India. It’s a thin wafer-like product. A variety of pulses and proportion of pulses and spices varies from region to region depending upon preferences of local people whereas certain varieties are popular on a larger scale.
#25. Personal Chef
Having experience and knowledge about the chef, any individual can initiate this business from right from his/her home location. Many celebrities and health cautious people generally like to keep personal chef to have a daily basis of healthy and hygienic food. If you enjoy to become a personal chef and working for a celebrity you may initiate this business.
#26. Pizza Delivery
The main focus area of the pizza delivery business is choosing the right delivery boy and selecting the menu. A lot of the people will likely to have meals at their doorsteps due to their ultra busy work schedule. Pizza is now a well known, favorite, tasty dish all over the world. And starting a pizza delivery business can be a popular and enjoying way of profit-making.
#27. Start a Restaurant
Starting a restaurant is one of the most trending food business ideas. People always love to have a meal according to their own choice and enjoy selecting from many options. The right location and proper marketing strategy are important in starting a restaurant.
#28. Sea Food Selling
Initiating a specialty seafood selling business is a wonderful and profitable business one can start from home location. You will need to source the products as wholesale purchase and store them in frozen condition. Through a delivery vehicle, you can make the delivery at the customer’s doorstep. Proper product promotion plan is required in this business.
#29. Specialty Cake Making
Specialty cake making is one of the most profitable food business ideas one can initiate from his/her home as the part-time basis also. You may focus on a specific niche with some specific products like the wedding cake, birthday cake, etc.
#30. Tea Bag Making
Tea bag making business requires only tow major raw material component – tea and paper bags. A tea bag is a small, porous sealed bag containing tea leaves and it used a hot cup of water to prepare the beverages called tea. An aspiring entrepreneur having adequate knowledge about tea leaves can start tea bag making business with moderate capital investment.
#31. Food Blog
If you are a food lover and enjoy exploring new recipes, starting a food blog is good money making business. You will find many successful food bloggers making a good income out of their blogs related to cooking and recipes.
#32. Sauce & Ketchup Making
Specialty sauce and ketchup have a great market demand. And if you have the expertise of making different types of delicious sauce and ketchup, you can start this business. You can sell the products both from offline and online.
#33. Squash & Marmalade Making
This is another great business in the food processing industry. Marmalade generally comes with orange peels. However, you can produce squash from different types of fruits. The production process is simple. And the business demands a small startup capital investment initially. However, you have to pay attention to the packaging.
#34. Vending Machine
This is a unique food retail business that you can operate from home. You need to put the vending machines in the right place and ensure sufficient storage. In addition, you can start the business in two ways. Either you can start off your own, or you can start with a franchise of a reputed vending company.
#35. Food Delivery
Without having a retail location, you can start the food delivery business from home. The business demands moderate capital investment. However, it demands strategic financial and marketing planning.
#36. SeaFood Selling
This is a niche food eCommerce business. Seafood is healthy food items. And people generally, like the taste and flavors of the seafood. You can sell them both fresh and ready to cook items from your online store. However, when you are starting the business from home, you must have sufficient arrangement for keeping the food items.
#37. Snacks Store
The demand for ready-to-eat snacks is increasing globally. Nowadays, people rather prefer to buy the snacks item than preparing of their own. However, start a business locally. After getting the order, you will need to deliver the foods within the stipulated time.
#38. Wine Shop
Starting a wine shop requires a substantial capital investment because the wines are high-value products. In addition, you are targetting an upscale clientele. Furthermore, you have to offer different types of products like vodka, wine, champagne, etc.
39. Herbs & Spice Store
Herbs and spices are costly items. However, these are very essential items for preparing food. You can start a niche online store focusing on the herbs and spices. You can start the business at home. In addition, you can operate the business with two to three employees in the initial stage. You will need to be careful in good packaging and on time delivery.
#40. Online Organic Retail Store
The demand for organically grown items is increasing very fast. And organic retail store eliminates the costs of renting a brick and mortar shop. If you can properly procure the organic food items, then this is the best business to start from home. However, fresh vegetables and fruits are highly perishable items. So you will need to be very careful about that.
#41. Biscuit Making
Though there are several biscuit brands in the market, people prefer to have sometimes freshly baked biscuits. And they generally look for the same. In addition, if you can offer some special taste and fragrance then you will definitely get a huge response.
Home-Based catering is one of the most profitable businesses nowadays. However, this business demands moderate startup capital investment. Additionally, you must have the skill of arranging every detail related to this business. Not only for big functions, but people also look for good quality catering service even for small family gatherings. In addition, birthday parties, office get together, an anniversary is the functions of this business.
#43. Chuck Wagon
Chuckwagons are generally mobile restaurant. The concept is, you prepare the food at home, put those items in the van and park the van in a busy area. Allow your customers to pick up the food from your food van or food truck. However, you will need to offer the food according to the taste of the local people. In addition, you can also sell ice cream or soft drinks from your chuck wagon.
#44. Coffee Service
If you are living in a metro city, you can start coffee business from home. In every city, you will find small offices that don’t have the coffee making arrangements. You can offer your service to those employers. You have to serve the hot coffee at the scheduled time of a day. This is a one of the most popular small food business ideas to start with a very small capital investment.
#45. Wedding Cake Selling
This is a food business for creative individuals. Wedding cakes are very special items. And the preparation demands utmost care and dedication. However, the business ensures a very lucrative profit margin to the owners. Even if you don’t have the skill, you can learn wedding cake making from books and online tutorials.
#46. Dry Sweets & Namkeen Making
Dry sweets and Namkeen have a larger shelf life compared to many other food items. In addition, these are healthy snacks. If you enjoy cooking, you can turn your hobby into a profitable business today. In addition, this is the perfect business for housewives, moms, and homemakers. Pay attention to the creative packaging of the items.
#47. Fruit Bar Making
Fruit bars are healthy snacks. In addition, fruit bars have a larger shelf life than fresh fruits. The fruit bar making process is also simple. And you can produce delicious fruit bars from your own kitchen. However, you must identify the locally available fruits and the time duration of the availability. In addition, you can also make delicious fruit candies.
#48. Ice Cream Making
Home-based ice cream making business is a profitable food business. It eliminates the cost of getting a location. In addition, you can sell the ice cream from online marketplaces. However, establishing a local distribution network is always better to get immediate orders. In addition, it helps to maintain the regular cash flow of your business.
#49. Office Meal Delivery
Office meal delivery is a low-cost food business you can start tomorrow. People always prefer to have homemade food in the office. And if you can offer healthy and tasty food, you will definitely get positive responses. Pay attention to the packaging as you have to move the food packets from your home to different offices.
#50. Bed & Breakfast Business
The demand for bed and breakfast business is getting popular worldwide. If you have extra rooms for renting out, starting this business will fetch you good returns.
#51. Mushroom Farming
Mushroom farming business can be done both from home and commercially on a larger scale. The production proccess is easy and can be started by anyone after training.
#52. Fish Farm
Fish provide many essential nutrients in human body. The consumption of fish is growing all across the globe. More and more people are farming fish as it fetches high profit.
#53. Herb Farm
The demand for herbs has grown significantly in recent years. Herbs are now more and more used as alternative medicines and food supplements. Industry experts predict more growth of the herbal industry in years to come.
#54. Aquaponics Farm
Aquaponics is an advanced form of agriculture farming. It is a mechanized form of raising fishes and vegetables with hydroponics. The business is ideal for those who have a vacant backyard and passionate about farming.
#55. Bagel Shop
The concept of Bagel was made popular in the city of New York. Bagel is a sumptuous meal for breakfast and lunch. In addition, most bagel business owners offer beverages and side dishes to their customers.
#56. Olive Oil Selling
As per Statista, the global production of olive oil has grown from 2.5 million metric tons in 2012/2103 to 3.36 million metric tons in 2019/2020. This data proves the consumption of olive oil is on the rise. You can make good money selling olive oil as the profit margin is quite high.
#57. Cooking School
If you love cooking and enjoy teaching, the cooking school is a profitable food-related business. The business primarily suits women and housewives and can be started from home with nominal investment.
#58. Noodle Making
Most fast-food restaurants sell dishes made up of noodles. But, not everyone makes noodles of their own. Talk to local restaurant owners and if you find there is a demand, noodle manufacturing business will fetch you good returns.
#59. Food Kiosk
Be it a roadside, shopping mall, nowadays food kiosks are seen in plenty. The main reason for success is that it is an extremely low-cost business and customers are available at ease.
#60. Asian Food Shop
People of Asian origin is seen in every nook and corner all across the globe. Asian people are food-loving people. Starting a food shop
In addition to this list, there are plenty more food business ideas that can be explored. The success of a food business largely depends on the local taste and demand. Hence, it is essential from your part to do extensive research of the local market, find the gap and accordingly plan your food business.