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Why this is the best time to start your food business

DISCLAIMER: This content is provided for informational purposes only and is not intended as legal, accounting, tax, HR, or other professional advice. You are responsible for your own compliance with laws and regulations. You should contact your attorney or another relevant advisor for advice specific to your circumstances.

The food industry is one of the largest and most lucrative industries in Canada. It encompasses everything from restaurants and food trucks to catering services and food delivery. With the COVID-19 pandemic shifting consumer behavior and driving an increase in online ordering and delivery, there has never been a better time to start a food business in Canada. Here are some reasons why:

Increasing demand for delivery and online ordering

The COVID-19 pandemic has significantly changed the way Canadians consume food. With social distancing measures in place, many consumers turned to delivery and online ordering to fulfill their food needs. This has led to a surge in demand for food delivery services, which creates opportunities for food businesses to expand their reach and tap into this growing market.

According to a survey by Restaurants Canada, 53% of Canadians order food online at least once a week.

Changing consumer preferences

Consumers are increasingly looking for healthier, sustainable, and locally-sourced food options. This trend has created an opportunity for food businesses to differentiate themselves by offering unique and healthy food options. For example, plant-based food options are becoming increasingly popular, and many restaurants and food businesses are now offering vegetarian and vegan menu items to cater to this growing demand.

Lower start-up costs

Starting a food business has traditionally been associated with high start-up costs, particularly for brick-and-mortar restaurants. However, with the rise of food trucks and commissary kitchens it is now possible to start a food business with relatively low start-up costs. Food trucks, for example, offer a lower-cost alternative to opening a traditional restaurant, and online delivery services can help businesses save on rent and other overhead costs. More on how commissary kitchens are a great place to start a food business below.

Furthermore, online ordering platforms like Uber Eats and SkipTheDishes have lowered the barriers to entry for food businesses, allowing them to operate with lower overhead costs.

Access to online marketplaces

With the rise of online marketplaces like Uber Eats, SkipTheDishes, and DoorDash, it is easier than ever for ghost kitchens to reach a wider audience. These platforms offer a convenient way for consumers to discover and order from local restaurants and food businesses. This means that even small and independent food businesses can compete with larger chains and reach a larger customer base. Coho Commissary offers designated pick up areas for delivery app drivers, to ensure the experience is as smooth as possible.

Growing interest in local and independent businesses

There has been a growing trend towards supporting local and independent businesses in Canada in recent years, and this trend has been accelerated by the COVID-19 pandemic. Consumers are looking to support businesses in their communities, and this presents an opportunity for small and independent food businesses to gain a loyal following. Commissary kitchens allow you to be in the heart of the city or neighborhood, without the steep costs of renting a front-of-house space downtown.

According to a survey conducted by CFIB, 63% of Canadians have made an effort to support local businesses during the pandemic. This presents an opportunity for food businesses to differentiate themselves by emphasizing their local roots and connections to the community.

Why starting a business in a commissary kitchen is smart

Starting a new food business in a commissary kitchen like Coho Commissary is a good idea for a variety of reasons. One of the biggest advantages is the lower start-up cost, as you can rent space and equipment from the commissary kitchen instead of investing in your own kitchen space and equipment. This allows you to focus your resources on creating and marketing your products.

Additionally, using a commissary kitchen offers flexibility, as you can scale your business up or down as needed, and access to shared resources and expertise. Coho Commissary kitchen is already licensed and inspected by health authorities, saving you time and money on navigating regulatory requirements. Finally, with the increasing demand for delivery and online ordering, using a commissary kitchen can help you tap into this growing market and reach a wider audience.

Additionally, commissary kitchens often have a built-in customer base of other businesses, such as food trucks and caterers, which can lead to valuable partnerships and collaborations. With the lower start-up costs, access to shared resources and expertise, and the ability to tap into a growing market, starting a new food business in a commissary kitchen can be a smart move for entrepreneurs looking to break into the food industry with less risk.

In conclusion, the food industry in Canada is ripe with opportunities for entrepreneurs looking to start a food business. The changing consumer preferences and increasing demand for online ordering and delivery present opportunities for businesses to differentiate themselves and tap into a growing market. With lower start-up costs and access to online marketplaces, it has never been easier to start a food business. So, if you have a passion for food and a desire to start your own business, now is the perfect time to do so.


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