Restaurant produce delivery route

Independent restaurants, cafes, small grocers, ethnic markets, caterers and food trucks.

You buy by the case and sell at a markup, charged per order or on weekly invoices. A tight route with repeat weekly orders makes each delivery hour more profitable.

• Judging produce quality and freshness
• Early starts and reliable delivery
• Negotiating with suppliers and customers
• Basic bookkeeping and invoicing

• Check whether you need a USDA PACA license for buying and selling produce, as it depends on your business size
• Check with your state and local health department about wholesale food licenses, food facility registration and cold storage rules
• General liability and commercial auto insurance, plus product liability cover for food you sell
• Cold chain and food safety: spoiled produce means lost money and possible recalls
• Slow-paying customers and thin margins, so set clear payment terms from day one
• A used refrigerated van, first stock and insurance take most of the startup budget, so the low end assumes a used or insulated van and a small first route

Startup costs are typically around $25,000 to $90,000, depending on the van, your first stock and insurance. The low end assumes a used or insulated van and a small first route.

Monthly revenue is typically around $8,000 to $40,000, depending on how many restaurants and grocers you supply and the size of your route. Margins are thin and some customers pay slowly, so set clear terms.

Check whether you need a USDA PACA license, which depends on your business size. Also check with your state and local health department about wholesale food licenses, food facility registration and cold storage rules, plus insurance cover.