Food, Beverage & Hospitality
Great timing to crowd funding a food service, beverage or lodging business
Low commercial rents, great labor pool, (not to mention many people with culinary degrees and experience) combined with a positive out-look for our industry, translation: a great time to start your new venture. According to many leading indicators, experts and just personal observation things are indeed picking up in for the hospitality industry: this includes all types of commercial food service businesses—food vehicles, fast food, catering, casual and formal eating establishment; lodging—boutique hotels and suites, bed and breakfasts businesses as well. Steadily increasing, consumers are spending more on premise, and are beginning to trade up. There is a optimistic vibe. But don’t take my word, hear first hand from the industry experts. According to Laura Pelner, of Market Watch, (Market Intelligence on Wine, Sprites and Beer) May 2012,
“Restaurateurs and bar operators, along with beverage alcohol suppliers and distributors, have high hopes.” She continues to say, that “After a few difficult years, the on-premise market seems poised to begin an upward trajectory that hasn’t been seen since the recession began in 2008. People appear ready to spend again, though value is still front-of-mind.”
“The concept of over-delivering on value is also a driver of success and something we see at casual dining restaurants.”
The bottom line is that consumers are beginning to spend again, however, more frugally. Businesses that over-deliver on value are the ones that are succeeding in this new marketplace. New more hipper, higher quality value oriented fast causal chains like Shake Shack, Chipolte Mexican Grill and the many super high quality-great value oriented independent gourmet food truck are pioneering this trend. (Read our article oncrowd funding for food trucks). The casual dining restaurants, diners, drive-ins and dives that are serving up high quality food for at a good value are fairing well.
If you are crowd funding for your new or existing business be mindful of the fact that today’s consumers are looking to see how far their money can go. They want to stretch every dollar to the max. Hence the popularity of group buying sites link Groupon, Living Social, and Amazon Local. Keep this reality in mind when you create your crowd funding rewards menu. Offer backers great value for their money. Featuring unique gifts, perks, and rewards that are ‘ too good to be true’ will guarantee a high level of interest in your crowd funding project.
Restaurant Growth Index—top places to open a restaurant. The national average is 100. Higher scores indicate better opportunities; scores below 100 indicate poorer opportunities than average. Markets are scored as a whole. Markets that score below 100 may still have strong pockets of opportunity within the market.
On fire! Gourmet food trucks are popular, affordable and profitable: a perfect business opportunity for the crowdfunding platform. A street food revolution is in full swing–ethnic, authentic, and affordable grub on wheels are all the rage. Would be restaurateur turn mobile restaurant owner realize the practical sense of opening a food truck verse a real estate based restaurant. Although the start up costs for a food truck is far less than an actual restaurant, be prepared to work just as hard. Many mobile food ventures raised money through crowdfunding web sites. Some of these startups enticed funders by offering hard-to-resist discounted food and other perks in trade for funding. (Please refer to our Eco-food truck, example venture on our crowdfunding site.)
The Food Truck Business Plan is a comprehensive document that you can use for raising capital from a bank or an investor. This document has fully automated 3 year financials, complete industry research, and a fully automated table of contents. The template also features full documentation that will help you through the business planning process. This is a full and complete business plan with original research, financial models, and marketing/advertising plans that are specific for a Food Truck. Since 2005, BizPlanDB and its parent company have helped raise more than $100,000,000 through its developed plans.
Food trucks have become a wildly popular and important part of the hospitality industry. Consumers are flocking to these mobile food businesses in droves, inspiring national food truck competitions and even a show dedicated to the topic on The Food Network. The relatively low cost of entry as compared to starting a restaurant, combined with free and low-cost ways to market them to the masses via platforms like social media, are just two of the reasons that food truck business are drawing in budding entrepreneurs.
Author David Weber, a food truck advocate and entrepreneur himself, is here to offer his practical, step-by-step advice to achieving your mobile food mogul dreams in The Food Truck Handbook. This book cuts through all of the hype to give both hopeful entrepreneurs and already established truck owners an accurate portrayal of life on the streets. From concept to gaining a loyal following to preventative maintenance on your equipment this book covers it all.
If you plan on crowdfunding to raise money to manufacture a unique food, e.g., hot sauce, condiment, dessert, snack, frozen food or beverage product, you are aspiring to launch a Specialty food Product. Great timing. According to the National Association of Specialty Food, the Specialty food industry continues to enjoy spectacular growth, outpacing most sectors within the U.S. economy. From 2009 thru present, sales of specialty foods grew by 19 percent. This stable, yet growing one hundred billion dollar a year market means a great opportunity for the specialty food entrepreneur that is well prepared to establish a space brand for their product. This article covers FDA food safety regulations for prepackaged foods; Manufacturing foods in a fully equipped commercial shared kitchen and how to find one; outsourcing manufacturing and packaging of your food or beverage product to a professional co-copacker.
From Kitchen to market, Selling your gourmet food specialty. Grab a slice of the $39 billion specialty food pie with this updated, ultimate resource for gourmet food entrepreneurs. The specialty food industry is THE proven vehicle for entry-level food distribution in the United States. Retail sales of specialty foods averaging an annual growth rate of more than 7 percent presents, to some, a great opportunity—to others, a formidable challenge. Your ability to make your mark in the industry, establish your independence, achieve success, and acquire wealth depends on how effectively you prepare, according to Stephen Hall, a long-recognized specialty food marketing professional. In From Kitchen to Market: Selling Your Gourmet Food Specialty, Hall outlines every food marketing opportunity and then supports entrepreneurial action with detailed guidance. Whether you own your own business or you are thinking about starting one, From Kitchen to Market will show you how to:
- Identify a winning product and its most appropriate markets.
- Get your product ready to market.
- Advertise, promote, and sell your product.
- Create your own success niche.
- Professionalize your business.
Also included is updated information about the role of the Internet, health and organic food markets, the latest government regulations and technological advances, and contact information for dozens of valuable resources. Buy From Kitchen To Market today.
Visit our important Food Association & Web Site page for links to important industry companies and organizations.
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