November 26, 2022
Food Business

17 Best Food Business Ideas to Start in 2020

The concept of food business industry is very vast. There are many segments in this industry. It can be preparation of food, packing, storage or transportation. These all can be different but related parts of food industry.

In this article we will come to know about 17 best food business ideas to start in 2020. Secondly we will know how to start these food businesses.

Food Business Ideas for 2020

Hence, food industry is very huge. It can cover so many businesses who are dealing with eatable items. Whether someone is producing raw food items in his agricultural land, or processing it for the use of households. But here we are going to discuss some major type of this business who are providing eatable food for its consumers.

Let’s start by listing down these types.

  • Traditional Food Restaurant
  • Fast Food Restaurant
  • Coffee and Tea Shop
  • Fresh Juice Corner
  • Bakery

Above mentioned types are selling their final product to their customers. Food they are providing is ready to eat. But, there are many other businesses in this industry who provide food in raw form.

For Example:

  • Fruits and Vegetables Shop
  • Meat Shop
  • Dairy Products
  • Spice Processing
  • Grocery Store
  • Organic Food Shop
  • Bottled Drinking Water
  • Beverages Distribution
  • Dessert Shop
  • Flour Manufacturing
  • Tea Bags Making
  • Fish Farm

List of food business ideas can be continued further. We will discuss them in depth in another post. For now, let’s come back to the main topic is this article and we are going to discuss them one by one.

1. Traditional Food Restaurant

The idea of opening a traditional food restaurant is great. If you love cooking or you are fond of eating and trying different cuisine, you can open a restaurant. Restaurant business is very lucrative and you can earn handsome profits out of it. Starting a restaurant is not easy, it is a full time job.

First of all, location is much important for the success of restaurant. You have to choose a perfect location for your food business. Take your time to research, analyze your target market and know your competitors. Find gaps and plan to fill them by your services.

Similarly, you have to give equal importance to other steps while starting your restaurant. Test your menu and master it before offering to the customers because first impression is the last. Hire good human resource for your restaurant. Purchase good quality equipment for your kitchen and dining area.

2. Fast Food Restaurant

Starting a fast food restaurant is also very lucrative food business idea. Fast food is very trending now a days. You can avail the opportunity by working on this idea. Setup cost of a fast food restaurant is low as compared to a traditional restaurant.

You can offer burgers, pizza, sandwiches, fried chicken, donuts, fries, fish and list goes on. There are so many options in this business. You can offer any of them to your customers. People don’t have time to wait for food, so they prefer to go to a fast food restaurant and to have their meal ready in few minutes.

3. Coffee and Tea Shop

Coffee and Tea Shop

Coffee and tea cafes can never be out of style. People love to drink coffee or tea many times a day. Here it comes with a great opportunity to get into this food business idea.

Profit margins in this business are very high. You can earn a handsome amount of profit. You just need a shop on a good location. Ideal location for this business idea can be near offices or in a market where people come for shopping or they hang out with their family and friends.

There are many kinds of coffee and tea. You can offer different flavors of tea and coffee. Once you have started this business, you can also offer different types of cookies and pastries at your coffee and tea cafe. It will add value to your business.

4. Fresh Juice Corner

Demand of fresh juices never goes out of business. There are many seasonal fruits which you can offer to your customers in shape of juices and shakes. This business idea is very lucrative. You just need few juicer machines, a shop and some other kitchen equipment.

Chances of failure are very low in this business. Hence, you can start a juice corner with a low investment and earn a handsome amount of income out of it.

5. Bakery

Bakery is a popular food business. You can do this business in two ways, either you can be a wholesaler or a retailer. Both types of bakeries may offer same type of products but to different customers.

Retail Bakeries are more common. You can start your bakery business and offer many baked items and bread to your customers. You can specialize yourself in one or two baked items and can earn a notable income out of this business. People celebrate their occasions with different types cake and cookies. You can offer different types of professionally baked cakes with high quality ingredients.

6. Fruits and Vegetables Shop

People are more health conscious now. They demand fresh fruits and vegetables to add them in their daily routine. Therefore, chance are high to be successful in this business. Fruits and vegetables are known as perishable goods. You have to keep them fresh. You can not stock them.

Profit margins are around 50% in this business. But, it is not fixed. Sometimes you may bear some loss if the goods not remain fresh. You only need a shop and few shelves to start a fruits and vegetables outlet. If you have agricultural land, you can also produce your products by yourself. Or you can purchase from whole sale markets and can earn good profits.

7. Meat Shop

Meat shop is another great food business idea. But it requires a professional skill set. You need to have an apprentice before opening your own butcher or meat shop.

You can offer chicken, mutton, beef or different kinds of fish on your meat shop. This business can be run via two models. First is, you can have alive birds and animals and cut them on the spot for your customers according to their need. Secondly, you can start a retail meat store in a market by freezing meat in final shape.

8. Dairy Products

Milk Bottle

Next food business idea in this list is a business of dairy products. Whether it can be a milk shop, bottled milk distribution or in any other shape. Dairy products are the part of out daily routine. Every household purchases these products. Why not purchasing from you?

But, before jumping into this business, you need to do some research. First of all, research about sourcing of your product. It is very important to ensure the in-interrupted supply of milk products through out the year. Secondly, how will you store it? You have to adopt complete mechanism from supply to storage and then its distribution to your customers.

In my opinion, start from 100 customers. Plan to collect milk from dairy farmers who are providing quality milk. Milk is a perishable commodity, you need to take care of hygiene and other quality assurance measures to avoid losses. You need chillers for its storage. Then distribute it among your customers. Get some experience in this field with low number of customers. Increase your customer base step by step.

9. Spice Processing Business Idea

Spices are the main ingredient of most of the food items. This business can turn very lucrative. Specially, if your are planning to start it in Pakistan or India. This business can be started from home. Startup cost of this business is very low. You just need spices in raw shape and a grinder to process it.

Spices help to bring color and taste in food. Most common types of spice are turmeric powder, chili powder, coriander powder and cumin. These spices are the main ingredient of every food cooked in Indian or Pakistani kitchen.

You can purchase these herbs and spices in bulk quantity. Repackage them into small packaging and supply it to retail shops and households. This is very great business idea with low investment.

10. Grocery Store

This business can never fail. Because the products which a grocery store offers, are the need of every household. There is a vast target market. You can earn a handsome amount of income from a grocery store. You just need to have a good location near any residential area or in a commercial market of a city.

Grocery stores makes most for their profits from processed food items to house holds. These stores also offer cleaning items, self care items, candies and soft drinks etc. There is a average profit margin of 15 to 20 percent on sales. You can increase your profits by increasing your sales.

11. Organic Food Shop

Organic food have grown without the use of pesticide and chemicals. Farmers use natural fertilizers for the growth of plants. A food commodity which is free of artificial food additives can be labeled as organic food.

The consumption and demand for organic food has grown rapidly in last two decades. People are getting health conscious day by day. They don’t want to compromise on their health. That is why they prefer organically grown food and animals for their food requirements.

If you can manage to have organic farmers as your suppliers on board, this business can turn very profitable for you. You need to select a suitable location for your organic food store and a promotional campaign to attract customers.

12. Bottled Drinking Water

As we all know the quality of under ground water is decreasing very fast. Demand for bottled drinking water is going high day by day. This is not a luxury anymore, but a necessity. This can turn into a lucrative business idea. You can start it by setting up a small water filtration plant.

13. Beverages Distribution Business Idea

Starting a beverages distribution in your area is a great business idea. You will need to have a delivery van and a warehouse for this business. You will supply different beverages to the retail stores, restaurants, drink corners and school canteens.

14. Dessert Shop

Dessert Shop Business is very popular business idea since ever. People love to add some sweets in their meals. They celebrate their occasions and family get together functions with desserts along with other traditional dishes. You can make handsome profits out of this business idea. You can offer different cakes, pastries and ice creams to your customers.

Dessert Shop
Image by Free-Photos from Pixabay

15. Flour Manufacturing

Flour is the main ingredient of so many food items like bread, pizza, cakes and snacks. These items are being consumed all over the world. You can set up a mini flour manufacturing unit with a nominal investment. Demand for flour will never go down specially in India and Pakistan. People use flour for making homemade bread for their meals.

You just need to purchase wheat in bulk quantity to lower your production cost. Demand for freshly produced flour is high. You can supply flour to different retail stores and restaurants in your own packaging.

16. Tea Bag Making Business

Demand for an energetic and hot cup of tea will never go out of style. People working in offices, industries or any other workplace drink several cups of tea during whole day. It helps to keep them awake during hectic routine. If you are fond of tea, you will enjoy doing this tea bag making business. You just need to items to start this business. Good quality tea and a small sized bag specially designed for tea bags.

Tea Bags

17. Fish Farm

Setup cost for a fish farm may be a little high. But once you have started this fish farming business, it can bring you more profits. You can supply different kinds of fish to restaurants, grocery stores, meat shops and to the customers directly.


Food is the basic need to human being. Without food we can not survive. Hence, we can conclude that any business which is related to food can never go out of style. People have to spend on food on daily basis. You can start any of the above businesses, there are very fever chances of failure. But before starting any food business, do proper research work and planning to avoid any kind of losses. I wish you good luck for your new venture.


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