5 Amazingly Profitable Food Business Ideas
There you go. For those who cannot wait and finish the whole video. These are the ideas that you can run with. But for those of you guys that want to know the pros, the cons, the nuances of how do you actually be able to take advantage of this phenomenon in 2020. Please continue watching the whole video because I'm going to be sharing with you all the research that I've done. And as a return, I really appreciate it if you can just smash the like button. That's the only thing I ask for. Otherwise, let's dive right in.
The number one most profitable business idea in 2020 is still a bubble tea joint. It is because it is still super popular. I think this thing has become just a phenomenon and a habit for people to take on. For those of you that do not know what bubble tea is basically an Asian dessert drink with tea-based tapioca on the bottom, something that's very chewy, and it has written a huge, huge wave. And even today in 2020, it is still super, super popular. And it's evolving like crazy. Now, having said that, if you're not in a location or a city that has a high Asian demographic that likes and enjoy this product, and that's probably not a place where you should be opening this and this probably is not as applicable to you, you can skip on to the next one.
However, if you're considering if you're actually situated in an Asian dense community that has bubble tea, as part of an offering or as a staple item, this is still a very profitable business idea out there. Now on the same note, the pros of having a bubble tea joint are the low barrier to enter the low investment. Why is it the low investment it is because the equipment that is needed is bare to nothing compared to a full-scale restaurant, all you need is a shaker a serve the dispenser an ice machine and a cooler and you're good to go. Bubble Tea is super easy to make versus let's say a full-scale restaurant that only requires a stove and oven. How did you scale fans, all these crazy things, and in turn, you would attract a lot more legalities. And you need to deal with a lot more strict food safety requirements that you need to fulfill.
And that itself oftentimes takes a lot more investment a lot more time to build. And that's the reason why having a bubble tea shop is just much more popular because investment is much lower, the ability to create one is a lot easier as well. Now the third pros of creating a bubble tea joint are the fact that it's just super easy to make the quality assurance is so easy versus a full-scale restaurant because all you need is to have a recipe of putting powder in the drink milk powder, flavor powder syrup, mix it for 30 seconds, and you're good to go. A lot of times, it's so easy to make anyone can come into place to make the string and the product would be equally as good. If they follow the formula versus someone that has a recipe that needs to cook up pasta or chicken or whatever the
case may be. It just there are just more variables to it. And it just makes the quality much more difficult to predict and much more difficult to sustain and maintain bubble tea joints, the quality assurance just is that much easier. Now on the same Pro, it becomes easier for us to hire talent, because anyone can come in and do the job equally as good as the next high schooler. So a lot of times in a food and beverage environment, talent is one of the most difficult things to overcome. And that is the reason why by far I think bubble tea joints are still one of the most profitable ones one of the easiest to create in terms of business models out there in 2020. And last but not least, another pro for bubble tea joint is the fact that the turnover is just so easy for this joint in this model to create because for you to create a drink, it's just super simple, probably 30 seconds per drink. And after you create the drink, people can grab and go you're not worried about people squatting in your place and not being able to fulfill them. And if your place has high demand, it becomes so easy for you to be able to turn and create that volume. And to satisfy that I actually have friends who are able to make more than 1000 bubble teas in any single day and in turn they're able to generate tons and tons of profit for this specific bottle. Oh, guys, I totally forgot to talk about There are causes also one of the major points and the major pros of running a bubble tea joint. Because the cogs which is the cost of goods sold is much lower than let's say running a full-scale restaurant, the cogs probably around 20 to 25% is what we're looking at.
So for any time, we have a bubble tea, the cost of creating that is probably around $1. And we are returning for $6. So a little bit low, lower than 20%. versus someone who is creating let's say, a pasta, or chicken salad, or whatever the case may be, the cost of goods sold is substantially higher. On the same note operating a bubble tea shop. And maintaining the COGS is so much easier because everything is portioned out properly to the sizing, which in turn becomes a lot more efficient.
So there are less spoilage and fewer areas for people to either steal from you or every less area where the cogs go missing. Whereas let's say if you're running a restaurant, it's a lot easier for your chicken to go expired, for your chicken to be someone to be selling your chicken out or like your staff going out there and eating all your chicken and all these things that can go wrong, which in turn brings up your cost of goods sold. A lot of times I see restaurant cogs at 30 to 35%, which in turn becomes your profit, the better you're able to maintain your cogs, the better, more profit you can put in your pocket. And this is talking from experience because 720 Sweets, we sell bubble tea as well. And the reason why we still sell bubble tea is that it is still one of the most profitable business models out there in 2020. Now, after all the rain, global bubble tea,
there are tons of cons to this business model. First of all, it is super, super competitive. Okay, me walking down our street and Vancouver, there's always going to be more bubble tea shop than seven elevens out there it is fact and it has become one of the staple items in Vancouver. What does that mean? That means competition is just furious people have so much different options that they can choose from so you better be good at what you're serving. Now, with any profitable business model, there's always going to be super high-end competition. So be aware of whether these opportunities still exist within your area. If for example, you still see one or two bubble tea shops around your area and they're always packed, then that's probably an area where there can be room for another bubble to join. Okay.
Now, the second cons of running a bubble tea joint are the low-ticket item. Okay, it is a very, very low ticket item. What does that mean? low ticket item means that you need to run the volume game, you need to sell a ton in order for your math to make sense in order for your business model to make sense. Because if you don't sell enough, your rent percentage and your rent, or your labor percentage would be taking up the majority of the cost, okay. Whereas if you can run the volume game, your rent and your labor substantially went down in terms of percentage-wise, and in turn, you're going to be able to really see the fact and the efficiency of running a model like this, okay, because in a bubble tea environment, at most, you're only selling one or two bubble teas at what $6 A drink.
Whereas attain a full-scale restaurant, anyone that goes in to can go for a ticket price of $50 $60 and in turn, you make more money from fewer people in that restaurant environment. Whereas for a bubble tea joint you're making less money per person. And what does that mean you require a lot more people to come through the doors and that itself, you need to make sure that there's high demand for this product before you go into this business model. So all in all bubble tea concept is still super profitable, but you require to be a lot more competitive moving forward. As an example 720 Sweets we are always innovating with the product that we're serving because you need to be able to carve out a specific niche even within the bubble tea industry right now.
Some people will go for brown sugar milk, some people would go for best tarot, some people will go for the best milk tea, best tapioca. So if you want to be able to succeed in this model, you definitely need to find something that you're really good at. And to have super high quality Long gone are the days that you can just make powder and milk and serve people and that's the reason why at 720 Sweets, we just go for super innovative quality items that we can serve people, and in turn, we see a lot of success by doing that. If you guys are looking for more opportunities for the bubble teenage feel free to leave me in the comment section below. I would recommend to you a few different franchises which I think have great quality Great product that you may be able to bring to your city. So all in all, it is still a very profitable business idea out there. Nonetheless, be very, very careful whether you want to choose this business model to go ahead with because competition is super furious. And what does that mean? Moving forward, people are going for more quality drinks, you cannot just feed people powder and sugar and expect them to come back you need to feed them good quality tea-based items with good quality pearls and tapioca. If you're looking for more information definitely hit me up I can recommend a few different bubble tea joints, I think are doing exceptionally well that have a good process that has good ingredients. And I think going into a franchise model and buying into people's franchise and people's recipe is still a very profitable idea out there. So leave me a comment section below if you want to know more about my recommendation.
Nonetheless, let's jump into the second most profitable business idea in 2020. The second most profitable business idea in 2020 are ramen joints are still super popular as become one of the most, I guess, up-and-coming food staple item out there. All the places different places I've been traveling to ramen is picking up in popularity at a very, very rapid pace. And what does that mean? That means that there's a lot more opportunity for you to be able to take advantage of this phenomenon, ramen joints are super high in popularity. Now on, something that is an advantage over a bubble tea joint is ramen joints have a much higher ticket price.
And what does that mean? That means that when people go into a robbing joint, each ramen is $15 to $20. And in turn, they can also order an appy or gyoza chicken Karamay. And they can also order desserts, and they can also order a drink. And in turn an average ticket value we're talking about anywhere from 20 to $30 versus a $6 drink that bubble tea has. And what does that mean? That means that with ramen joints, they have much more opportunity and much more margins for error and margins for let's say spending into marketing costs. And in turn, if and when you can run around and join with the same popularity in the same amount of traffic going into your joints, your profitability would go up substantially higher as well. Another pro for running a ramen joint is the talent required.
A talent required is very, very different from running a full-scale restaurant because a lot of ramen joints, they are actually franchises and I would highly recommend any of you guys watching if you want to jump into this opportunity to go through franchises because the soul, the heart of what aware of ramen joint is, is the broth and it is something that is very, very difficult to perfect, which is a reason why you'd always or I would highly recommend you to go with a franchise because they already have perfected the broth they already have done all the r&d, all you have to do is follow the process, follow the recipe and you're good to go. And what does that mean? That means that it's so much easier for you to hire people to follow these processes as opposed to letting's see any other restaurants out there and a very special thing about ramen joints is their etiquette Okay?
Every time I go to Japan, I go there there's no reservation you need to stand outside line up and when it's your turn you have to order one Roman at the very minimum, Okay, so if you're taking up a seat you have to order this etiquette and this cuisine is not meant to be shared was not meant for you to be able to spend hours at this place to socialize. No it's not like that you go in you finish your meal and you go average time at a ramen shop is anywhere from 15 minutes to 25 minutes and they expect you to finish and they expect you to be out of there within half an hour and this is a very very special etiquette for ramen joints that you know no other cuisines have an expectation for you and people that enjoy around India understand this etiquette and which in turn what does that mean? means much higher turnover for this business model. And which is the reason why I love this model. Our friends were making three to $4 million in an 800 square feet place in Vancouver which is insane. And what that means is that they're just always constantly churning out customers and just on the go on the go super highly efficient. So if you are asking me, I'm going to tell you the second most profitable business idea and 2020 What is it? There ramen joints?
Now after raving all about ramen joints? I know there are tons of cons as well. First up, the investment is substantially higher than bubble tea. Join in comparison, whereas it all obviously is so lower than a full-scale restaurant, but you still need to invest in a proper stove and actually hooded fans and all these full-scale restaurant items, right. But nonetheless, the investment itself might not be suitable for everyone. So it requires a much higher-end budget. Okay, another con of running around and joining is a lot of people that get into the ramen business, have to buy franchises because this is a very niche and very, very specific item. And what does that mean, you need to pay upfront franchise costs you need to pay ongoing royalties. But with that, it comes with their support.
So this might not be a model that's suitable for everyone. Nonetheless, it is still a super profitable idea out there. And last but not least, Another con is that the labor that is required to run a ramen joint is still I would say, the second tier of talent that is required. Over bubble tea joints, bubble tea joints, you require people anyone can come in and run a bubble tea joint as long as the formula. Whereas the next step up, I would say types of ramen joint people need to be a little bit more skillful in creating and creating the items because there's broth
a little bit more variable in place. Nonetheless, this is still a very, very profitable idea out there in 2020. The third most profitable business idea in 2020, our delivery-only restaurants aka known as ghosts, restaurants, virtual restaurants, cloud kitchen, whatever the case may be. These models are basically restaurants with no physical storefront, we're talking about only working out of a commercial kitchen, and people are commissioning and working out with third-party delivery apps such as skip the dishes, GrubHub, Postmates, Uber Eats all these different delivery services to distribute their meals. This is a very, I guess, like the new business model that is, like gaining tons of steam. Even the ex-CEO of Uber, Travis has raised more than $400 million dollars creating their own kitchen to be able to service this type of business model, we're talking about stevia Aoki, creating their own pizza brand. Using this model as well. food delivery service, as an industry is expected to be more than $70 billion in 2022. We're talking about an industry that is going to be picking up tons of steam. And this is still what we're talking about at the forefront of this whole model. And nonetheless, this is the reason why I'm super, super excited to share this model with you.
This is the next most profitable business idea. And we're gonna dive right into the pros of running this model. Now the pros of running this model, there are just so many pros, you know what, at the end of the day, you don't need to go through the huge investments of buying your own equipment to go through all the licensing to go through the food safety requirements. To understand how the nuances of building out your own kitchen, you don't need to understand none of those, all you need is to go through this kitchen. And it's already all provided for you.
You don't need to get your own food license, you don't need the major investment that you're going to be able to throw upfront just so you can build a restaurant, all you require is to be able to rent a spot in a commercial kitchen that can service this type of needs. That itself is a huge Pro, and versus someone that has needs to fork out hundreds of 1000s of dollars to create their own storefront to create their own equipment to create their own restaurant. This is a huge, huge plus. Because all you have to do is just run a kitchen, and you're good to go. And the second pro of running a delivery-only service restaurant is that you avoid all the headaches. With staffing the front-of-house staffing, all you need to worry about is production. All you need to worry about is maintaining your operation and the quality of your foodservice and your food product that itself is a huge, huge Pro. If you are someone that is super skillful and loves just cooking, you don't want to worry about running a brick-and-mortar store. You don't want to worry about bringing people in through the doors, all you have to worry about is your recipe. This is the model for you.
Because if you have quality items, if you have quality products, all you have to do is create the product, put it on these third-party delivery app services. And if that itself, if the quality is good enough, you're going to be able to attract tons of people to always come in order from you. You don't need to worry about you know running marketing getting people through the doors or let's say, for example, it's a rainy day. How are you going to you're going to be worrying you're going to be thinking that oh you know what, I can't pay rent anymore. All you have to do is focus on your craft and you're good to go. And then another pro of delivery only restaurant this is a very specific pro for this type of business model is not You're not married to your business. Okay, you don't need to sign a five-year 10 lease into a physical location which, at the end of the day, you might hate, okay, all you have to do is sign a lease with a cloud kitchen, and you're good to go. That might be a commitment of roughly a year to two years. And that itself allows you to be less stressed, you're not married to it by life, and in turn, allows you to have much more opportunity to try out different concepts until the one that really hits home to your customers.
Sothis is a huge, huge Pro, specifically for delivery-only restaurant models. Now, the cons of this super crazy good model is the fact that your restaurant has no visibility, you cannot bank and you have much less creativity that you can play because you're relying on third-party apps and delivery services. On the same note of actually relying so heavily on these apps, is the fact that all your eggs are in one basket, all your eggs in this one basket, and you cannot diversify, because they are the lifeline of your business, food delivery apps now control your destiny. And in turn, if on any given day, they change their policy, they increase their rates, or they decide to favor specific brands, then you are in trouble. And then you have no more leverage because they control your life. And they're holding you by the neck, which is something that I do not like at all. And in turn, how can you actually combat that? And how can you actually leverage this model, you can actually run this by for a year or two years to gain some momentum to prove your concept to be able to gain your subscription base, your returning customers, and in turn, that allows you to be able to have the confidence and this the base to create a storefront. And that allows you to be able to be much less risky in this venture of yours because you have now proven yourself to be super successful, and to be a quality item.
And last but not least, you do not control your customers, all your customers belong to food delivery apps, this is something that I really, really did not like because this doesn't give me the freedom to reach my customers. This doesn't give me the freedom to be able to own my customers. Because once again, we're at the mercy of these food delivery service apps. And that's something that I really don't like. But nonetheless, the pros of it far outweigh the cons and in turn, if for example, like I said, if you're you've proven to be successful, then you can go out and create your own restaurant. And this is the third most profitable business idea out there in 2020.
The fourth most profitable business idea in 2020 is food trucks, food trucks are definitely making a comeback. Food trucks, I would say right now is definitely gaining a lot of steam because people are supporting local small businesses, they're getting back into the trend of these specialty items and they love it and they have no problem going outside waiting in line in the rain for a good food truck taco okay, this is definitely coming getting a comeback. And a lot of pros with this is the fact that you can actually go to your customers versus a ghost kitchen, which is delivery only service, you can actually go to your customers, you can go to different locations in town who has an appetite for your food offering another pro of food truck is the fact that their investment is substantially lower than a brick and mortar store.
The investment is somewhere around 100 to $200,000. And in turn, you actually own this asset that you can sell in the future versus you being strapped down into a physical location to a five-year lease 10-year lease. And that itself is a huge commitment that not a lot of people like this itself becomes a very, very good business model that fits a very specific type of people that can drive around are not honed, and they're not held down by this physical location. And this is the reason why it has made the list of the top four most profitable business ideas in 2020. Oh, and an added tip with food trucks is the fact that they can run to a lot of different events and usually events, they are the most popular item because that's the only choice that they have. And in turn, they often food truck owners see a certain spike. And this becomes part of their business model that they can go to different events because those are guarantee traffic and in turn guaranteed business for them. Now on the flip side, the con is the fact that you're always on the road is very, very difficult to be on the road. It is very exhausting because you don't have a physical location which you can just go in and clock in and clock out because you're always chasing after that business.
On another note, the con is the fact that weather might be a concern. If the weather in your area is always raining, then it becomes They have a year operation. So in Vancouver food trucks are super popular during the summertime, whereas in the wintertime, right now it's snowing outside, and there's just the food trucks are all out of commission. And that in turn limits, the number of days it can be an operation and the quality and the service that you can provide to your customers, people might think that you're not as relevant. And that itself is a con of this business model.
Nonetheless, this business model is only attractive to very certain types of people that might, for example, want to try out different business ideas. In Vancouver, we have a ton of food trucks that is out there, creating an experience for people testing out different formulas, testing out whether there is a demand for their offering. And in turn, they turn into a business, they turn into a storefront. And that's usually how the model works, we have three different restaurants off the top of my mind that went from having a food truck to getting into a solid brick-and-mortar location. So if you don't have that much investment, and if you want to limit the amount of risk you have, this might be a profitable business idea that you can consider in 2020. Oh, and something that I totally forgot. And thank you, Jason, for reminding me of the licenses are usually super, super confusing. And within any city, in any jurisdictions, they have only a certain amount of permits that they allow people to operate in, you oftentimes need to go and apply for them. And oftentimes, there are quotas that you need to apply for which identity makes it super confusing, and in turn, turns a lot of people away from the food truck business. So for example, when within our Vancouver city, there are only 30 different food licenses, food truck licenses that they're offering. And if we want to be able to get into the business, we cannot actually apply for anymore because they already shut them down.
All you can do is buy an existing food truck license off those people now how are you going to be able to head down to 30 different food trucks and ask them whether they have an wanting to sell. That's a very, very difficult process already. So nonetheless, that's a really, really big con is that it's not something that you can apply for and get right away. There are quotas, and there are city permits that you need to go through the hoops and get the fifth most profitable business idea in 2020 are plant-based vegan restaurants.
Okay, we're talking about a plant-based restaurant that, you know, 510 years ago, no one has even thought of creating because there's just not much of a demand for it. It's just not the cool thing to talk about. People are less health-conscious about what they put in their bodies. But in today's age, it is definitely gaining a ton of steam. A lot of celebrities are jumping on the train right now people like Beyonce, people like Brad Pitt, they're, they're really, really vocal in terms of their support and a plant-based diet. And even for like ice cream, plant-based ice cream has increased more than 25% year over year. And we can actually see this movement gaining so much steam when actually just last year alone. All the fast-food chains have plant-based options.
They have vegetarian options like Beyond Meat, meat substitutes, which is crazy. And this is something that was unheard of even just three, four years ago. So in today's age, I know it's in its infancy, still very, very infancy. But if you have the passion to actually love what you love the substitutes love plant-based stuff. And really being be an advocate of this industry than this is still a very, very profitable idea that you can actually go in during the beginnings and to be able to reap the rewards from years from today. Because people who are industry, people who are passionate about it are going to love what you have to offer. On the con side, this is still very, very beginning, as I was saying that you're not going to be able to hit the masses, you're not going to be able to hit the main streams. However, once again, if you're passionate about this, then is completely fine. It is a very good model that you can actually be able to benefit from because people who love it, they rave about it. And the supply for this is still very, very low. So if you're thinking about creating a plant-based restaurant, now's the time to do that because there's just not much demand for not much supply of it. And the demand is growing leaps and bounds every single year. So there you go the top five most profitable ideas and in 2020 we're talking about bubble tea joints, ramen joints, food trucks, delivery, only restaurants. And last but not least, the plant-based restaurants.
These are the most profitable ideas out there amongst all the research that we have done and identity is not suitable for everyone. You really need to see if it is suitable and it has to be Man identity, it's about the demand in your area. If there's no demand, there's no need to create something like this. And it is also not for every single one you need to understand how your personal circumstances are like at this moment to choose the right vehicle to get you there. Nonetheless, I really, really hope you have enjoyed this video. The only thing I can ever ask for is for you to smash the like button. Otherwise, comment below and let me know if you guys have any questions. I'll see you guys in the next article.