Trade-Only food warehouse for restaurants and caterers

Small restaurants, cafés, caterers, food trucks, churches and community groups, and small shops that need bulk food at short notice.

You sell at a markup on bulk food, with volume discounts for regular accounts. Extra income can come from a local delivery fee and from stocking convenience items such as packaging and disposables.

• Inventory management and ordering
• Negotiating with suppliers
• Customer service and account management

• Zoning, certificate of occupancy and your state's wholesale food license or registration
• FDA food facility registration may apply; check with the FDA and your state
• Cold storage, spoilage and food safety rules; check your health department's requirements
• Lease commitments and inventory tied up in stock before sales build up
• General liability, product liability, property and workers' compensation insurance if you hire
• Competition from large wholesalers and club stores means your edge needs to be clear, such as niche range or local service

Startup costs are typically around $40,000 to $150,000, depending on the warehouse lease, opening stock, cold storage and insurance. Inventory is tied up before sales build, so the amount of stock you carry affects the total.

Monthly revenue is typically around $20,000 to $100,000, depending on your customer base, product range and pricing. These are revenue estimates, not profit, and stock, rent and staffing costs come out of that figure.

Check zoning, certificate of occupancy and your state's wholesale food license or registration. Also check whether FDA food facility registration applies, health department rules on cold storage and spoilage, and insurance including workers' compensation if you hire.