Additional revenue streams food businesses should consider

For entrepreneurs starting food businesses, the core focus is often delivering a great product and maintaining customer satisfaction. However, beyond food sales, there are numerous opportunities to diversify revenue streams that not only bring in more income but also strengthen your brand. Especially in competitive urban markets like New York City and Chicago, finding creative ways to expand your business can be key to long-term success. In this post, we will explore several additional revenue streams that food businesses should consider, including merchandise, media and content creation, events, and consumer packaged goods (CPG).

1. Merchandising: strengthen your brand and revenue

Merchandising is one of the easiest and most effective ways to increase revenue while simultaneously enhancing your brand's visibility. Offering branded items such as t-shirts, stickers, hats, and tote bags can build a deeper connection with your customers. Here’s how merchandising can be a powerful revenue stream for your food business:

Why merch matters
Merchandise is not merely an additional item in your store—it serves as a powerful, mobile advertisement for your brand. Every time a customer wears your branded t-shirt or carries your tote bag, they are spreading awareness of your business, especially in highly populated areas like NYC or Chicago. It's a way to turn your loyal customers into ambassadors of your brand. An example of this is the brand Salt and Straw. Their merch has enabled them to grow in the New York City market quickly upon their recent arrival. 

Beyond brand exposure, selling merchandise can create a sense of community. Food businesses that cultivate a loyal following can use merch to engage their customers further, offering limited-edition items or collaborating with local artists for unique designs. This creates exclusivity and can drive more sales. An example of this is when L’appartment 4F created limited edition cross-branded totes and baked goods with Sezane.

How to start a merch line
To get started, you’ll want to consider which items will resonate most with your audience. T-shirts are a classic choice but don’t underestimate the power of smaller, lower-cost items like stickers or enamel pins, which can appeal to younger audiences or those on a budget.

Tote bags, in particular, are popular among environmentally-conscious consumers, especially in urban areas where grocery shopping or farmers' market visits are common. Custom-branded items that are functional and fashionable will have a higher chance of being purchased and used regularly.

Design and production
If you don’t already have a design you would like to use, you can find freelance local artists or designers on platforms like UpWork. They can help you create eye-catching, on-brand designs that resonate with your target audience. Many food businesses find that collaborating with artists within their community is a great way to enhance the authenticity of their brand while supporting local talent. When working with freelancers, it is crucial to provide specific examples of work that inspires you and to provide feedback as quickly as possible

On the production side, you may consider using print-on-demand services, such as Printful, especially if you are planning to sell merch online. This reduces your overhead costs and ensures that you’re only producing merchandise that is being purchased, helping you avoid excess inventory costs. However, be sure to order some samples before launching to customers.

2. Media and content creation: a long-term investment with high ROI

In today’s digital age, having a strong social media presence is more important than ever. Platforms like TikTok, Instagram, and YouTube allow food businesses to showcase their culinary creations, offer behind-the-scenes looks, and engage directly with customers. However, content creation can be more than just a marketing strategy—it can become a legitimate revenue stream.

TikTok creator fund and ad revenue
The TikTok creator fund and YouTube’s ad monetization programs offer food business owners the chance to earn revenue directly from their content. While this revenue stream may take time to develop, it can grow into a significant source of income if you build a dedicated following. Playing the long game is key here—consistency is critical. Post regularly, engage with followers, and stay authentic to your brand’s voice. Contrary to popular belief, You don’t millions of followers to generate revenue. Having a niche local audience that is highly engaged in your content is often just as lucrative, especially when it comes to brand deals. Over time, you may also have opportunities for paid partnerships or sponsorships!

Building a content strategy
If you’re just starting, focus on creating high-quality, engaging content that reflects your brand and showcases your expertise. Videos featuring how-to recipes, cooking tips, or food prep hacks tend to perform well. You can also leverage content creation to educate your audience on industry trends or offer a glimpse into the daily operations of your kitchen.

For food businesses that operate out of shared kitchens like Nimbus, behind-the-scenes content can give potential customers an insider’s look into your culinary process, helping build trust and connection.

Monetize through paid subscriptions
Another option for monetizing your content is through platforms like Patreon, where fans can subscribe to receive exclusive content. Offering cooking tutorials, recipe ebooks, or access to live virtual cooking classes can entice your loyal followers to become paying subscribers. This not only generates income but also deepens customer loyalty.

3. Events: an opportunity for brand development and community engagement

Hosting events can be another effective way to boost revenue, though they require more effort and coordination. Events are ideal for food businesses looking to build their brand and foster community engagement. Whether you’re hosting a pop-up, a tasting event, or cooking classes, events create a unique platform for interacting with your customers in person.

Types of events to consider

• Pop-up restaurants: Pop-ups allow you to experiment with new menu items, test out new concepts, or target different markets. For instance, if your food business is based in NYC but you want to test the waters in Chicago, a pop-up event is a low-risk way to explore that new market.

• Tasting events: These offer a chance to showcase your most popular dishes or introduce new offerings. Pairing a tasting with local beverage producers, like a brewery or winery, can also boost attendance and sales.

• Cooking classes: Hosting cooking classes is a great way to share your knowledge, engage with your audience, and generate additional income. Nimbus offers event space where hands-on classes can be a hit, or you can offer virtual options for a wider audience. Last year, Pasta Class Florence hosted popular pasta-making classes in our Downtown Brooklyn show kitchen! This was a great way for them to build their brand outside of Italy, while also generating revenue!

Brand exposure and networking
In addition to the immediate revenue generated from ticket sales, events offer longer-term benefits by boosting your brand’s exposure. They give customers a memorable experience, something that goes beyond just the food. Moreover, these events can be an opportunity to collaborate with other local businesses or influencers, expanding your network and reach within the community.

4. Consumer packaged goods (CPG): expanding your reach beyond the kitchen

Another lucrative revenue stream food business owners can explore is the development of consumer packaged goods (CPG). This involves creating products that can be sold in retail stores, farmer’s markets, or online. Maybe you have a sauce on your menu that people are always asking for extra of, or maybe you could turn a popular baked good into a box of ingredients. CPG allows you to expand your product offerings beyond the physical walls of your restaurant or kitchen.

Starting small with local retailers
If you’re new to the CPG space, consider starting small by offering your products at local retailers or farmer’s markets. You can operate at Nimbus to produce small batches until you are ready to expand to a co-paker! If you’re based in NYC, there are several well-known local markets where food entrepreneurs can test out their products, like Smorgasburg. Similarly, in Chicago, you could sell your goods at markets like Green City Market.

Scaling your CPG business
Once you’ve gained traction, you can consider scaling your CPG offerings by partnering with regional or national retailers. Many successful food entrepreneurs have started with a single product, like a signature sauce or spice blend, and expanded into a full CPG line. For Nimbus members, the shared kitchen space offers an excellent environment for testing out and developing new products without the long-term overhead of a dedicated kitchen. Once you have mastered small batch distribution, you can consider scaling your operations to a co-packing facility!

Conclusion

Diversifying revenue streams is not just a luxury for food business entrepreneurs—it’s a necessity in today's fast-paced and competitive market. By leveraging merchandise, content creation, events, and CPG, you can tap into new sources of income while building a stronger, more resilient brand. Each of these strategies takes effort and investment, but when executed correctly, they can significantly boost both your revenue and your brand’s visibility.