Food Distribution Business

How Much Does It Cost To Start A Food Distribution Business? (In 2024)

Updated: January 18th, 2023

Looking to start a food distribution business?

But curious about:

  • how much it costs to start a food distribution business?
  • what are the typical food distribution business startup costs?
  • or the actual cost of starting food distribution businesses?

Well, we have the data to prove it, supported by real food distribution businesses and how much they actually cost to start.

Let's go over it.

Learn more about starting a food distribution business:

Where to start?

-> Pros and cons of a food distribution business

Need inspiration?

-> Other food distribution business success stories
-> Marketing ideas for a food distribution business

Other resources

-> Food distribution business tips

Equipment & Supply Expenses

Starting a food distribution business may require purchasing some equipment, whether that's for producing the product or packaging the goods, or equipment needed in the back office.

Cost Required? Min Cost Max Cost
Cleaning Supplies ➜

Optional

$63

$200

Business Formation Fees

There are a few key costs associated with forming your business entity, such as setting up an LLC and getting trademarks, copyrights, and patents sorted.

Cost Required? Min Cost Max Cost

Set up business: LLC & Corporations

Required

$50

$500

Small Business Insurance

Recommended

$500

$2,000

Permit and License Fees

Optional

$50

$700

Trademark

Optional

$0

$700

Lawyer Fees

Optional

$0

$1,500

A Patent ➜

Optional

$5,000

$15,000

Software Expenses

Your food distribution business needs software to run efficiently!

Why spend money on software? Because it can help you save time and automate certain parts of the business, so you can focus on the most important matters. Software and technology can help you grow your business, and save you from expensive personnel costs.

Cost Required? Min Cost Max Cost

File Hosting Service

Recommended

$0

$299

Email marketing tool

Recommended

$0

$100

Accounting & Invoicing Software

Recommended

$0

$50

CRM Software ➜

Recommended

$12

$300

Project Management Software

Recommended

$0

$25

Internal Communication Tool

Recommended

$0

$20

IT Support ➜

Optional

$150

$2,000

Design Programs & Software

Optional

$0

$50

Social Media Management Tools

Optional

$0

$50

Payroll Software

Optional

$0

$200

Office Space Expenses

It will be your call to determine if you need office space. It is not a requirement but may be necessary as your food distribution business grows.

Cost Required? Min Cost Max Cost
Rent ➜

Optional

$0

$5,750

Utility Costs For Office Space ➜

Optional

$0

$1,150

WiFi & Internet ➜

Optional

$0

$100

Employee & Freelancer Expenses

Cost Required? Min Cost Max Cost
Payroll Costs & Fees ➜

Optional

$150

$250

Employee Hiring Expenses

Optional

$1

$2

Employee Rewards ➜

Optional

$0

$100

Website Costs

Every business should have a website, and it's worth spending a bit of money to set it up right.

Cost Required? Min Cost Max Cost
Domain Name ➜

Required

$12

$200

Website Hosting Costs ➜

Required

$0

$300

Website Builder ➜

Recommended

$10

$500

Business Email Hosting Service ➜

Recommended

$1

$15

Website & Live Chat Tool

Recommended

$0

$200

Web Designer ➜

Optional

$200

$6,000

Inventory Expenses

If you sell a physical good, you'll likely have to start with some inventory.

Cost Required? Min Cost Max Cost

Upfront Costs For Inventory

Optional

$300

$5,000

Inventory Storage

Optional

$0

$5,000

Package Design ➜

Optional

$50

$3,000

Shrinkage

Optional

$0

$1,000

Distribution costs

Optional

$0

$750

Advertising & Marketing Costs

Cost Required? Min Cost Max Cost
Business Cards ➜

Optional

$0

$50

Customer Research & Surveys

Optional

$0

$300

Local fairs and festivals

Optional

$0

$500

Direct Campaigns, Printing and Mailing

Optional

$0

$300

Affiliate Marketing Commission & Fees

Optional

$0

$250

Influencer Marketing

Optional

$0

$750

Google Ads

Optional

$0

$300

Facebook & Instagram Ads

Optional

$0

$350