6 Reasons to Start a Snack Business
As an entrepreneur, you’ve got a lot of options to choose from when it comes to starting a business.
Even within the food industry, you could start a fast-food restaurant, a fast-casual restaurant, a food truck, a coffee shop, and so on.
One option that is often overlooked is starting a snack business. But it shouldn’t be. Here are 6 reasons why starting a snack business makes sense today.
It’s a growing industry
When starting a business, it’s a good idea to choose a growing industry instead of a stagnant or declining one, and the market for snacks is growing and continuing to grow.
Nearly half of U.S. consumers are eating three or more snacks a day, up 8% in the past two years, according to Circana Group, a market-research firm. U.S. snack sales rose to $181 billion last year, up 11% from the year prior, the firm said.
Clearly, the snack industry is growing strongly, and the best time to hop on this trend was yesterday, the second best time is now.
Local is hot (and better)
Customers are increasingly looking to support local businesses. But most snacks are made and sold by large corporations like Hershey and Mondelez International.
Starting a snack business fills a need for customers who want to support local businesses for their snack purchases but are finding it tough to.
Yes, customers may be price sensitive, but once they realize your snacks are better and leave them feeling more full than what they usually buy, they’ll be more inclined to buy your snacks.
You can share your passion and creativity
Whether you’re recreating foods that speak to you or combining different elements in unexpected ways, food is a great way to express yourself.
Snacks are not just a way to help people hold people over until their next meal. They are an opportunity to tell your story and share your perspective on food.
And since snacks are smaller and are cheaper than a full meal, more people are willing to give them a shot and so you have a greater chance of your work reaching more people.
Help people be healthier
Many snacks in the U.S. are overloaded with processed ingredients. The risks to processed ingredients are not fully known since they haven’t been around for long.
But we know that processed foods are calorie dense and addictive; they are designed to stimulate our brain’s “feel-good” dopamine center, making us crave more in the future. They are also lacking in nutritional value.
They also come with increased cancer risks, a five-year study of over 100,000 people found that every 10 percent increase in consumption of ultra processed food was associated with a 12 percent higher risk for cancer.
Corporations add processed ingredients to their snacks to preserve their shelf life and to keep customers hooked, so they end up profiting more.
You don’t need to use processed ingredients to build a profitable snack company though. By using more natural ingredients, you can help people feel better and live longer and better lives.
You're in control of your schedule
Restaurants are expected to turn around food in 10-45 minutes.
But with snacks, you can make them in batches on your own schedule since customers typically aren’t looking to eat them right away.
With SnackDial, you can set your kitchen (or production) hours, as well as pickup and delivery hours if you’re willing to deliver.
You can start small and scale up
Some businesses require a significant upfront investment.
Many snacks can start off being made at home, depending on your local regulations (e.g. most don’t allow dairy products to be made from hold and sold directly to consumers). If you can’t sell directly to customers while making it from home, you can reach out to restaurants and coffee/tea shops to see if you can borrow their kitchen space during their off hours.
With SnackDial, you can set pickup locations, whether it be your home, a local park, or farmer’s markets. You can also set a few delivery windows. That way you can manage everything on your own without requiring a huge budget or team to get started.
Once you have your recipes down and are gaining customers, you can scale up to your own retail store or production space.
Conclusion
A snack business can be a great way to build a profitable business while expressing your creativity and helping others snack better.
With more customers looking for quality, locally made, and less processed snacks, it’s a great time to launch a snack business.
SnackDial makes it easy to start small and scale up when needed. As a small business ourselves, we’re happy to help you get the ball rolling on your new venture, so don’t hesitate to reach out for support.
- Kenny Kandola