Food Business Type

Pros

Cons

Wholesale is selling bulk goods to other businesses that will go on to retail the goods to consumers.

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• Bulk ordering
• Support from government and large producers
• High demand
• Profitable
• Must have a harvest schedule way ahead

• Seasonal production - you’ll have smaller yields based on the weather
• No flexibility - you have to deliver what you promised
• All products must meet rigid product quality standards
• High Insurance
• Only growing one main crop
• Must have a harvest schedule way ahead
• Requires very careful planning

Food Business Type

Pros

Cons

Restaurants are places where people pay to eat meals that are cooked and sometimes served on the premises.

• Easy first sale
• Small order size / frequent delivery
• Good market intelligence

• High margin
• Requires top quality
• Buys by the carton-Slow pay
• Can buy a little or a lot
• Requires personal attention
• High turnover of buyers

Food Business Type

Pros

Cons

Farmers Markets are marketplaces designed to sell food directly from farmers to consumers. Farmers' markets typically consist of booths, tables or stands where farmers sell their goods. GrowNYC operates the majority of farmers markets in NYC.

• Highest margin – full retail
• High selling cost per unit sold
• No standard pack or grade
• Can sell a little or a lot
• Good market intelligence
• Direct contact and feedback from customers
• Customers support ethical farming and willing to pay more for organic/naturally grown
• Customers often take responsibility of word-of-mouth marketing
• Emotionally gratifying, you see your product from seed to plate – and get to build a community in the process

• You may not like to sell face to face
• Market schedule is grueling
• Might have to pay additional staff
• Must adhere to market rules
• Would have to rent/pay for market space

Food Business Type

Pros

Cons

Pop-up Farmstand is a temporary use of public space, used where farmers sell their goods directly to consumers, usually organized by the farmer, as opposed to a third party market group.

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• High margin – full retail
• Lowest overhead expense
• Very high profit per unit after breaking-even
• Staffing expenses
• Steady cash flow

• High regulatory risk exposure
• No transport cost
• Location is critical
• Requires constant management skills
• High levels of farm maintenance

Food Business Type

Pros

Cons

Community Supported Agriculture - CSA is an arrangement between a consumer and farm business where farmers provide consumers with goods, usually once a week, or consistently over a recurring period throughout the growing season. Consumers usually pay the cost of all of the goods for the entire duration of the CSA upfront, which helps farmers pay initial farm costs each season. Typically, the contents of the CSA are determined by the farmer based on what they have available.

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• Reduces the need for raising large operating capital
• You are selling your story more than you are selling produce
• High margin – full retail
• Can farm more ecologically
• No standard pack or grade
• Light post harvest requirements
• Emotionally gratifying, you see your product from seed to plate – and get to build a community in the process
• Best risk management because you have consistent buyers

• Requires very heavy and skilled marketing management
• Requires advanced growing skills
• Production risk transferred to CSA community
• Requires very careful planning