Many businesses have struggled during 2020 and the pandemic, with the hospitality industry still on the back foot at this moment in time.
However with people craving takeaway food and tasty treats, now is a surprisingly good time to launch your food-based business.
Whether you are planning to sell delicious baked goods, offer takeaway or start a food subscription service – there is no time like the present!
Join us as we take a look at why it’s a great time to start trading, and how you can get started on your foodpreneur journey in 2021.
Why start your foodpreneur journey now?
There are many reasons why you should take that all-important step towards starting your food-based business at the start of 2021.
Here are four reasons why now is a good time.
- Takeaway orders are on the rise
Over 46 million takeaways were ordered through Just Eat in the space of three months in 2020.
The lockdown has fuelled the nation’s appetite for food delivery, with the average Brit spending £21.60 on takeaways a month in the UK in 2020 – an increase of 8% since the previous year!
- People are craving luxury and variety
Restaurants, bars and pubs are closed. Holidays are being cancelled. People are stuck at home and feeling bored.
As a result of this, more and more people are ordering luxurious food and drink items to make lockdown more tolerable. Think high-quality seafood and meat, fruity alcoholic cocktails and indulgent desserts.
Variety is also high on people’s agendas too. Many people only have a handful of recipes in their repertoire and are tired of eating the same thing for dinner every day.
Meal kits have seen a boost in popularity with market leader Hello Fresh seeing a 95% increase in revenue.
- The market is starting to favour local businesses
Many national restaurant chains suffered in 2020, with brands including Byron, Chiquito’s and Pizza Express forced to close some of their branches. This has resulted in a less saturated market for newcomers to make their debut.
Although locally based businesses have not been immune from the issues caused by lockdown, customers have started to favour independently owned restaurants, cafes and takeaways.
According to Statista, one in three people ordered takeaway from a local business last year, with 30% ordering gift vouchers for themselves or someone else.
Local food has also played a part too, with people being more keen to enjoy food from local suppliers and growers. 35% of people said that they bought more locally grown produce in 2020.
- There is more time to plan
Many food businesses established in 2020 were created by people who had been put on furlough or made redundant. With time on their hands, they had the opportunity to plan their next course of action and do their market research.
According to web development company Web Eden, independent food and drink delivery services were the most popular type of businesses started during lockdown in 2020. Why? Because these businesses were easy to set up, there was a lot of demand, and minimal investment was required.
If you have found yourself back at home at the start of 2021, it may be an excellent opportunity to take the time to turn your start-up idea into a reality.
Top tips to get started
So you’ve decided that now is the perfect time to launch your food business? That’s great!
Here are our top tips to help you get started.
- Do your research
As tempting as it may be to jump straight in, it’s always a good idea to do some market research first.
For example, have a look at your competitors. See what types of food they are selling, where they deliver to and what price they sell at.
Price up your product. How much are the ingredients, how much are you charging for your labour and what mark-up do you want to add on top?
Also see if there is scope for what you are selling. For example, if you want to make and sell Korean food, but there is no local interest, you may need to rethink your marketing strategy.
- Determine where you will make your food
Many new entrepreneurs are cooking in the comfort of their own kitchen. If you go down this route, be aware that you will need to register with your local council and allow them to conduct a food hygiene inspection.
If you do not want to cook at home, there are alternatives. For example, you may look at hiring a dark kitchen to prepare and cook your food.
- Work out how you will sell
You will need an outlet for selling your food and collecting payment.
If you are starting small, you can do this using social media platforms like Facebook and Instagram. You can upload photos of your goods, ask people to message you for orders and collect payments through BACs or PayPal.
Alternatively, you can create your own eCommerce website or use a dedicated delivery platform like Just Eat or Deliveroo to bring the orders in.
- Plan for delivery
With the UK Government looking at banning click and collect services in the not-too-distant future, you will need to deliver your food and drink to your customers.
Depending on the type of food you are selling and your availability, you can do this yourself. if you do not have the capability, you can use a food delivery service like Deliveroo or Uber Eats, or alternatively, hire your own drivers
2020 has not been an easy time for the food industry, and the start of 2021 is not looking much better.
However, if you have an idea and are keen to take your first step into becoming a foodpreneur, you may have a captive audience ready and willing to purchase your products.
If you are planning to launch your business this year… the best of luck!