Monday, May 6, 2013

Looking to Spend Money? Try Investing in the Food Industry.

Ok, I know it sounds crazy. In the past, investing in the food industry sounded crazy. Banks, investors, family members- they all would discourage it. The rate use to be for every 10 restaurants started only 1 would still be standing a year later. That 1 restaurant standing also had a 60% chance of closing before making it to its second anniversary. Well, things have changed and the food industry is booming!

If you're looking to invest in a business then I would suggest you highly consider thinking about a bar or restaurant. You should, as always, check with your legal and business adviser before taking any action- but considering this industry is worth the extensive look.

In 2012, "Venture capitalists poured $350 million into food tech companies last year, an increase of 7.6 percent over 2011, according to research firm CB Insights. Not only that, but the number of deals increased by 37 percent, including robust activity in international markets," according to Steve Tobak of Inc.com. People are demanding more types of healthy, on-the-go foods. As a society we are working longer hours, traditional groceries are starting to cost the same as eating out every night, and there are more and more food allergies and food-lifestyle choices to cater to. Gourmet restaurants and healthy to-go joints are blooming and succeeding more than ever.

Whole Foods, Trader Joe's, and dozens of other markets specializing in natural and organic foods, there are thousands of farmer's markets popping up in cities big and small across the nation. People are demanding better food and yet they have less and less time to dine-in. This is an advantage for anyone who is seeking to open a restaurant. To-go orders are easy, they require less staff and less start-up money. So, when someone asks me where I think their next investment should be, I say in the food industry! Five years ago I would have went through a long list of cons before listing the long-term, yet still rewarding pros. Now, not so much. And, I have been in the food industry as a business owner. I know how hard it is and how quickly money can be lost. I closed a restaurant. But, believe me when I say, things are changing. Do you due diligence and seek out viable options for restaurant investments.

Until next time,
Twyla Garrett

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