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Food business idea-where to start?

 
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foodiedes

posts: 4

Mar 27, 2008 1:06 PM ET    Quote  Report Abuse
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Hey everyone,

My name is Deseree and I am from Seattle, WA . I came across this site while I was researching the possibility of starting a small side business. I have a recipe that I have received great reviews on constantly. I have been often asked, "Why don`t you sell this?". But I realize that most of my tasters have been family, friends and coworkers so that is not a good judgment of how it actually would do with the public. However, the thought has still crossed my mind that I might be able to have a business selling my products on the side, maybe one day being able to turn it into something full time. I have read "From Kitchen To Market", it seems to be the only book on the topic I can find, and I have also done some other research. Where my problem lies is that most of the research I have done has told me what to do if I was making a sauce, or other non-perishable product. However, mine is frozen and then either fried our baked. I was wondering if anyone else has attempted selling a frozen product. Should I rent a commercial kitchen make some of the product and then distribute free samples to see if there is any interest? If you have any advice on where I should start it would be greatly appreciated. Thanks! Des

CraigL

posts: 9051

Mar 28, 2008 1:13 PM ET    Quote  Report Abuse
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We`ve had a number of discussions about bringing a food product to market. I did a search in the forums, with "food" in the topic title, and found a few of them. Here`s one site you might find helpful:
http://www.just-food.com/store/

The biggest problem is FDA regulations, and the cost of developing a total package. If you want this carried in commercial stores, your presentation not only involves the taste of the product, but also the packaging design and artwork, plus preparation and so forth. That costs a lot of money.

One option you might consider would be to think of yourself more as a caterer, rather than a product salesperson. That way, you could provide this one product to people who want it for distribution. So for example, if you hooked up with an actual catering service, they might place an order for X number of frozen units for a particular event.

Nowadays, with such an abundance of recipes around, it`s not easy to sell a particular food item, frozen or otherwise. You can`t copyright or patent the ingredients, you can only copyright the recipe. But to what end? People will just make something else.

If you were to open a small restaurant or diner, you`d have other items on the menu, and this particular item would be perhaps a "showcase" item around which you could build a reputation.
winston2

posts: 122

Mar 28, 2008 4:35 PM ET    Quote  Report Abuse
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I would not go to the expense of renting a kitchen right now. I would make up some samples, go to a busy park or shopping center and tell people you are doing a market study on these products. Do not let them know your are the one that makes them. Let them have a taste and have them answer some questions. Would they purchase these items? How much would they pay for the item. How would they rate the taste from 1 to 10, etc. If you talk to 100 people and you get a positive response then I would go on to the next step. Mock up packaging, Figure your costs per unit, add the markup, take them to your local grocer and see if there is any interest. Explain to the grocer that you are just doing marketing research at this time but if there is enough interest you would start production soon. I also think that there is trade shows that specialize in presenting new products such as yours to buyers.
Hope this helps,
Winston
  
CraigL

posts: 9051

Mar 28, 2008 11:27 PM ET    Quote  Report Abuse
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There is a tradeshow, and I got a chance to see it on the Food TV network. There was an episode with a family putting together some frozen Italian entrees. Their cost for packaging was around $25K, I think, and to rent space at the show in NY was around $3K...not sure on that, though.
foodiedes

posts: 4

Mar 31, 2008 10:49 AM ET    Quote  Report Abuse
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Thank you both for your comments. They did help. I looked at some of the other posts regarding selling a food product and I think that I will start, as Winston suggested, by giving away some samples, to test the waters. I think that trying to do it this way may be more cost effective. Opening a small restaurant/diner would not really be an option for me, I would like to start this out as a side venture. I would rather sell at farmers markets, online and eventually (providing there is enough interest) neighborhood grocers/gourmet food stores. As far as design and artwork, my husband does graphic design work (and is an accomplished web designer/developer, which will help with the website)so the package design and artwork would be free. We have found a few similar products on the market and think that we could create a package relatively inexpensively.

So now that I have decided that I need to write a survey and give away some samples, does anyone know if I need to cook those samples in a commercial kitchen or if it is something that I can make at home?

Thanks in advance!
Des
CraigL

posts: 9051

Mar 31, 2008 6:36 PM ET    Quote  Report Abuse
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You`ll probably want to check both FDA regulations and local ordinances pertaining to food. When you say you want to try selling a frozen-food item over the Web, that could be problematic both from shipping logistics, and from a regulatory perspective. Somewhere along the line, too, you`ll probably want to discuss things with a lawyer. How to protect yourself in the event of some sort of food-related injury issue and that sort of thing.
barkwheats

posts: 35

Apr 01, 2008 9:31 AM ET    Quote  Report Abuse
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Just my 2 cents from someone with a long family history of owning restaurants and being involved in the food business, regulations can be a real headache.  You wouldn`t want to just set up a stand in a part and start giving away samples of your product for people to respond to.  If an officer came by and you didn`t have a license to sell food products, you`d be in deep, hot water.  Then, if they found the food came from an unlicensed kitchen...even worse.  Regulators and inspectors are very hard core and even just this year, regulations got stricter here in Maine.  After 9/11...food regulations became ultra strict, with Homeland Security getting involved with the FDA to oversee those regulations in places preparing food for human consumption.

Our Food Code here is 90 pages long with lots and lots of little teeny things that an inspector can get you on.  For instance...if you have a flour bin and you keep the scoop for that flour INSIDE the bin...they`ll write you up.  The scoop needs to be hanging on the outside.  One wouldn`t normally think that`d matter too much, but the little things like that can drive a person mad. 

Packaging design is much different cost wise from packaging production.  I did the design work on my packaging and branding with my partner, and that just cost our time.  To have our boxes and other products actually printed....that`s where the big bucks are.  Not many people take the step to get fabulous packaging printed because of the cost up front.  That, to me, is why so many don`t make it.  Packaging is definitely an important, and pricey, part of the equation.

I don`t mean to deter you at all, so please don`t take it that way.  One just needs to be aware, as Craig has pointed out, of the FDA regulations involved in processing food for human consumption.  If you were to make food for animals, however, the code becomes a bit...well...non-existent almost for kitchen certification.  At least here in Maine.  But, coming from a family with such a long heritage in food (our first family restaurant was (still is) the famed Anthony`s Pier 4 in Boston) I take all the necessary precautions to make sure my kitchen would be inspectable if it needed to be.



-------------------------

Barkwheats Dog Biscuits
-all natural, maine-made buckwheat dog biscuits
foodiedes

posts: 4

Apr 01, 2008 11:54 AM ET    Quote  Report Abuse
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Thank you all again for the feed back. I wasn`t sure where to start and you have helped me. I will look into FDA regulations and start looking into getting a permit so that I can make my samples in a commercial kitchen. I have a few inexpensive places in mind that I may be able to rent for short periods of time. I don`t want to invest too much money right now because I would like to test the waters first. However, I would like to make sure that I do everything legally and in compliance.
Where could I get a copy of the Food code for WA state? Again thanks for your help!



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