Local specialty food supplier to cafés and shops

Independent cafés, delis, grocery and specialty shops, and caterers who want a reliable local supplier and don't have a large distributor's minimum order.

You sell at a markup over your buying price, usually on weekly or biweekly orders. Trade accounts with net-15 or net-30 payment terms are common. Revenue grows by adding accounts on the same delivery route.

• Selling and building relationships with buyers
• Organizing orders, stock and delivery routes
• Careful with pricing and cash flow

• State and local licensing for food wholesalers and storage; check with your state agency and county health department
• FDA food facility registration may apply if you store food, so verify with the FDA
• Home kitchens or garages often can't be used to store wholesale food; check what space is allowed
• General liability, product liability and commercial auto insurance
• Refrigerated or frozen goods need proper temperature control and may need a refrigerated vehicle
• Late-paying customers can squeeze cash flow, so set clear payment terms and credit limits
• Sales tax resale certificates and state registration rules vary by state

Startup costs are typically around $8,000 to $40,000, depending on your niche, opening stock, delivery vehicle, storage space and insurance. Refrigerated goods may need a refrigerated vehicle, which can push costs higher.

Monthly revenue is typically around $5,000 to $25,000, depending on how many trade accounts you win, order sizes and your product range. These are revenue estimates, not profit, and stock and delivery costs come out of them.

Check state and local licensing for food wholesalers and storage with your state agency and county health department. Also check whether FDA food facility registration applies, what storage space is allowed, and sales tax resale certificate rules.