Profit Margins by Food Category
- Honey production: 30% average profit margin
- Coffee shops: 25% average profit margin
- Popcorn businesses: 22% average profit margin
- Custom cakes: 19% average profit margin
- Chicken poultry: 17% average profit margin
- Pizza: 15% average profit margin
Most Profitable Foods to Sell
Toasts, grilled cheese, BBQ, french fries, fried onion rings are among the easiest and most profitable foods to sell. Food trucks that sell burgers, coffee, and popcorn also tend to be highly profitable. Catering and Italian restaurants are quite profitable as well due to their pasta-based dishes.
When starting a food business, choose the type of product you want to sell and create a detailed business plan. Strong branding can make a company stand out in a competitive environment. Offering specialty and gourmet foods can yield high profits by catering to specific dietary needs. Analyze costs and aim for high-demand items with low production expenses to maximize profit margins.
High-Profit Food Categories
On average, the highest profit margin food includes meat-free vegan and vegetarian dishes that utilize vegetables, pulses, and legumes, sauces-based cuisines such as curries, chilli, and soups, and items which have low-cost base ingredients like pizza and pasta.
Questions to Consider for a Food Business
- What food has the highest profit margin?
- Which type of food business is most profitable?
Profitable Food Business Types
Broadly five types of food businesses are the most profitable:
- Manufacturing food items
- Retailing and food distribution
- Farming
- Online food business
The most lucrative food businesses include the bakery, food trucks, fish farming, restaurant, food items for pets, and wine shop.
With meticulous planning and moderate investment, one can plan to open a restaurant, which is a highly profitable business if managed correctly.
Popular Food Businesses
The top 5 most popular food businesses include:
- Restaurant
- Food truck
- Bakery
- Coffee shop
- Pet food
Most Profitable Restaurant Types
The following are the six most profitable restaurant types, with bars having the highest profit margins:
- Bar
- Fast-food restaurant
- Bakery
- Decide what type of food business you want to start and create a business plan.
- Consider whether you want a simple or complex menu and what items you wish to specialize in.
Our 8th most profitable food business idea is the cake business. This business has a steady revenue potential since cakes are bought all year round. You can start a cake business from as low as $2000.
When considering starting a food business, look for industry insights and market trends, such as those showing that McDonald’s, the largest food chain, had a significant revenue increase from 2018 to 2019. The bakery industry is also one of the most profitable sectors globally. By choosing the right niche and targeting the correct market, your food business can be similarly successful.