Many dream of starting a food business, but only a few take the plunge. Most people still believe that setting up shop requires unlimited financial resources. But this is no longer the case – you can turn that idea into reality even with minimal costs! Read on to learn how to start a food business with a small capital of as low as P5,000.
A slew of home-based businesses on social media and food delivery apps have shown how to find success. Their small food business ideas came to life by investing time and creativity instead of their life savings. Fancy equipment and an upscale location are no longer requirements to get that biz up and running. Feeling inspired already? Here are some profitable food business ideas to consider.
Why Start Small
Starting a small business is not impossible. But it can get challenging. There will be long days of multitasking. And as the owner, you have to take sole responsibility for decision-making. Consider also the limitations that come with running a start-up. Production will be limited, and your marketing budget won't allow sweeping campaigns. You might also face higher costs for packaging.
But the advantages can still outweigh these liabilities. Starting small allows you to be more involved in operations, from drafting the business plan to conducting inventory and accounting. Seeing your vision translated into actual progress can be very fulfilling! What’s stopping you from turning a kitchen hobby into a home-based brand selling on-the-go food? You’ll also have more leeway for experimentation. Remember: you gain full control of the menu.
Trending Food in the Philippines for Your Menu
Food is the heart of your business. Make sure your menu items cater to your target market’s needs. Get as creative as possible! Here’s a list of trendy concepts that are cost-efficient and easy to sell.
1. Rice meals
No Filipino meal is complete without rice! Take advantage of this by offering rice meals throughout the day. Having the carb as the center of your menu gives you enough flexibility to play around with viands. You can always rely on comforting silogs to boost sales. Or you can go for traditional Filipino favorites with fun twists or low-cost, Asian-inspired dishes.
2. Burgers and sandwiches
Burgers and sandwiches are also big hits among Pinoys. These handheld classics are quick to assemble and easy to tailor to your customers' preferences. Go ahead and mix and match fresh local produce and proteins. You can even change your lineup depending on seasonality.
3. Chicken wings
If you're looking for a crowd-pleaser, then chicken wings are the way to go. Fry a big batch and flavor them with various powders and glazes, including salted egg or soy garlic. Make sure to develop unique versions to capture your market’s attention. Have you ever heard of sinigang chicken wings?
4. Snacks
Merienda is a huge part of Filipino food culture. You’ll never go wrong with traditional favorites, like fish balls and turon. But you can also come up with innovative yet affordable treats! Introduce new menu items, like salted egg vegetable chips or Mexican tacos, to excite customers.
Chef Pau’s tips!
Chef Pau recommends choosing one cooking method for your core menu. This means you only need to adjust some ingredients to develop new variations of the same main offering. For example, you can choose deep-frying as your primary technique and just offer flavor options via glazes. You can also do the same for pasta and play with its sauces.
When it comes to costing, chef Pau's go-to formula is food cost + operational expenses + net profit. Make sure you track industry rates to keep your prices profitable yet competitive.
How to Keep Costs at a Minimum
Once you’ve sorted through these small profitable business ideas, the next steps are to find suppliers and finalize operational plans. Here are some tips to help keep your costs low.
Tip #1: Find local distributors and buy ingredients in bulk or commercial sizes.
Unilever Food Solutions offers all its iconic ingredients, like Knorr Liquid Seasoning, Knorr Chicken Cubes, and Knorr Oyster Flavoured Sauce, in sizes fit for businesses. Compared to buying retail in supermarkets, these products help you cut up to 20% on costs. You can then use these savings to increase your marketing budget or hire extra staff.
Tip #2: Fill your menu with items that use ingredients and equipment you already have.
Already pinned down the staples on your menu? Why not develop more offerings by playing around with the same ingredients? Get more value from your supplies by using them for more than one dish. Plus, more options for customers mean more reasons for them to order again.
Tip #3: Source secure delivery or takeout packaging that won’t bloat costs.
While it might be nice to have fancy-looking packaging, it's always best to be practical when running a small business. But affordable doesn't have to mean bad for the environment either. Look for eco-friendly containers that customers can reuse or recycle. If you want your logo on your packaging, try stamping it on instead of having costly stickers and sleeves made.
Learning to start a food business with small capital can be a rollercoaster experience. But stay focused on your goals, and you’ll soon turn that dream into reality. Follow these tips and cook your way to success!
