Small food production unit supplying retailers

Restaurants, cafés, independent grocers, caterers and sometimes larger grocery chains. Some also sell direct to consumers online or from a small shop counter.

Regular wholesale orders at set prices, supplemented by direct sales. Profit depends on controlling ingredient costs, wastage and labour as volume grows.

• Production planning and scheduling
• Food safety systems and record keeping
• Managing suppliers and staff
• Wholesale selling and costing

• Zoning, building and fire code approvals, and a food premises permit with plan review and inspection, check with your municipality and public health unit
• A Safe Food for Canadians licence from the CFIA may be needed for interprovincial trade or export, and larger buyers may ask for a written food safety plan
• Equipment, fit-out and lease costs can add up quickly, so check ventilation, drainage and utility requirements before committing
• Workers' compensation coverage once you hire (rules by province), plus product liability and property insurance
• Ingredient prices and large buyers' payment terms can squeeze cash flow
• Cold winters and seasonal demand can change volumes and delivery logistics

Estimates suggest startup costs typically around $30,000 to $120,000, depending on the lease, fit-out, equipment and utility requirements. Costs can add up quickly, so check ventilation, drainage and utility needs before committing to a unit.

Monthly revenue is typically estimated at around $8,000 to $35,000, depending on your products, number of wholesale customers and production volume. That is revenue, not profit. The business is estimated to need about 35 hours a week or more.

Check zoning, building and fire code approvals, and a food premises permit with plan review and inspection. Also check whether a Safe Food for Canadians licence applies to interprovincial trade, plus insurance and workers' compensation coverage once you hire.