14 Specialty Food Business Success Stories [2024]
Specialty food refers to a category of food prepared in small quantities using premium and unique ingredients sourced globally. Quality ingredients add an extra health dimension to produced foods and provide a wide range of micro-ingredients like vitamins, minerals, and enzymes.
According to research, the global specialty food ingredients market is expanding at an annual growth rate of 6.4%.
Therefore, starting a specialty food business in 2024 could be your big-time business idea. Identify a niche and pick a reliable supplier for your business. Decide on the business type and register it before applying for business licenses and permits.
In this list, you'll find real-world specialty food business success stories and very profitable examples of starting a specialty food business that makes money.
1. Urban Smokehouse ($1.5M/year)
Andrew Buehler, founder of Urban Smokehouse, came up with the idea for his business after noticing the growing market trend and opportunity for online delivery of perishable items during the COVID-19 lockdown. As a foodie with a background in financial services, Buehler saw the rising demand for BBQ, a food that tastes great but is often inconvenient to make, and decided to create a digitally native BBQ brand that offers pre-cooked and sauced ribs that can be easily prepared at home in under 20 minutes. He launched Urban Smokehouse as a Kickstarter project and quickly surpassed his goal, raising over $30,000 in pre-orders.
How much money it makes: $1.5M/year
How much did it cost to start: $15K
How many people on the team: 5
Andrew Buehler launched Urban Smokehouse, the world’s first digitally native BBQ brand, through a Summer Kickstarter campaign, raising over $30,000 in pre-orders; since then, the company has achieved monthly sales of over $5,000 split between their website and in-person pop-ups and events, relying heavily on word of mouth and organic social media.
2. Liberated Specialty Foods ($1.2M/year)
After her daughter was diagnosed with multiple autoimmune diseases, Stacey started hand-making food to meet her daughter's dietary needs. Realizing the need to help others in a similar position, she founded Liberated Specialty Foods to provide baked goods and sauces that are free from additives. The business has grown rapidly, with over 1,000 retailers now selling their products, including major chains like Whole Foods and Walmart.
How much money it makes: $1.2M/year
How many people on the team: 20
Liberated Specialty Foods saw impressive growth, going from 100 retailers in 2016 to over 1,000 currently, while selling a range of foods online and in stores that are suitable for Keto, Paleo, Atkins, and trending diets, with a focus on helping those suffering from autoimmune diseases like Crohn’s and Colitis.
3. ChipMonk Baking ($1.08M/year)
The founders of ChipMonk, David Downing and Jose Hernandez, came up with the idea for their low carb, gluten-free dessert business after Jose, who was diagnosed with type 2 diabetes, baked his own low carb chocolate chip cookies. Realizing the opportunity to fill a market gap, they started selling their cookies at local farmer's markets before scaling up production and launching their website. They have since raised $350,000 and are focused on building their own bakery and warehouse space to support future growth.
How much money it makes: $1.08M/year
How much did it cost to start: $5K
How many people on the team: 10
ChipMonk co-founders built a mail-order bakery selling low carb, gluten-free desserts, making around $25,000 a month with growth through e-commerce, and plans to tighten budgets and conserve cash in challenging times.
4. Small Axe Peppers Hot Sauce ($1.02M/year)
Small Axe Peppers was founded by John Crotty, who saw the potential in an empty lot in the Bronx and decided to turn it into a community garden. Realizing that peppers were the ideal crop for the small space, he came up with the idea to make hot sauce as a way to support the garden and create a commercially scalable product. With the help of Executive Chef King Phojanakong, they developed the Small Axe Peppers line of sauces. Since then, the company has grown exponentially, partnering with over 200 community gardens and distributing their sauces nationwide.
How much money it makes: $1.02M/year
How much did it cost to start: $50K
How many people on the team: 3
Small Axe Peppers is a thriving hot sauce manufacturing business that partners with over 200 community gardens in the United States, growing locally sourced produce and producing an impressive 70,000 bottles of hot sauce per year; the success is the result of a genuine mission, a great story, an online business, and active social media channels.
5. Jaju Pierogi ($960K/year)
Jaju Pierogi, founded by sisters Casey and Vanessa White, started as a side project selling pierogi at farmers' markets and pop-up events. With a background in the corporate world and a love for their Polish heritage, they saw a gap in the market for high-quality, handmade pierogi. Fast forward to August 2022, Jaju Pierogi is now in multiple grocery chains and over 650 specialty independent stores, with a monthly revenue of $80,000-$100,000.
How much money it makes: $960K/year
How much did it cost to start: $3.5K
How many people on the team: 5
Jaju Pierogi started off as a side hustle at farmers' markets and festivals back in 2016, and as of August 2022, they are in multiple grocery chains and over 650 specialty independent stores with a monthly revenue hovering between $80,000-$100,000.
6. Cape Whoopies, Maine's Gourmet Whoopie Pie LLC ($960K/year)
Marcia Wiggins, founder of Cape Whoopies, came up with the idea for her business after tasting her first whoopie pie and realizing it had great potential for unique flavor combinations. With a mission to share delicious whoopie pies made with the highest quality ingredients, Marcia started selling her products online and opened a brick & mortar store that she shares with a coffee shop. Sales have increased by an impressive 81.16% in the first month of operation.
How much money it makes: $960K/year
How many people on the team: 1
Cape Whoopies increased their total sales by 40% by partnering with a coffee shop, scaled their business up by doubling their equipment and incorporating temperature-tracking computer chips to test the temperature for shipping, and grew by 150%, making 47% of sales online and the remaining 53% from their brick & mortar storefront.
7. Portable Chef ($744K/year)
Uri Attia, founder of Portable Chef, came up with the idea for his business out of desperation after losing his banking job in the 2008 financial crisis. With a passion for cooking and understanding the demands of busy New Yorkers, Uri saw the opportunity to provide customizable, healthy meals for his clients. Today, Portable Chef generates an average monthly revenue of $60,000 by making 25,000 custom meals a year.
How much money it makes: $744K/year
How much did it cost to start: $0
How many people on the team: 3
New York food business founder goes from broke and desperate to cooking 25,000 custom meals per year with an average monthly revenue of $60,000, focusing on pleasing existing customers and word of mouth for new clientele.
8. Baltimore in a Box ($420K/year)
Ross Nochumowitz founded Baltimore in a Box after realizing there was a demand for Baltimore-inspired care packages. He started by curating boxes with iconic Baltimore items and offering customization options for customers. Despite initial challenges and a plain-looking box, the business gained traction and received attention from local media, leading to its success.
How much money it makes: $420K/year
How much did it cost to start: $500
How many people on the team: 1
Baltimore in a Box founder Ross Nochumowitz created a customized gifting company that allows customers to easily send iconic products from Baltimore to loved ones anywhere in the world, resulting in steady business growth with minimal digital marketing efforts and expanding into corporate gifting with orders increasing year after year.
9. Chandler Honey ($120K/year)
Tique Chandler, the founder of Chandler Honey, came up with the idea for her infused honey brand by leveraging her knowledge of beekeeping and her desire to make honey more exciting. She created interesting flavors and used bright branding to differentiate her product. In under two years, Chandler Honey is now in 150+ stores in Canada and continues to grow.
How much money it makes: $120K/year
How much did it cost to start: $50K
How many people on the team: 1
Chandler Honey is a Canadian organic honey brand with unique flavors, founded by Tique Chandler. With only 2 years since incorporation, the brand is now in 150+ stores in Canada and brings in $10k revenue monthly.
10. Secret Food Tours ($120K/year)
Nico Jacquart and Oliver Levene, founders of Secret Food Tours, came up with the idea when they realized that many of their friends traveling to Paris or London would ask them for recommendations on where to eat. After testing the market with a quickly created website and selling their first ticket within hours, they knew they had a winning concept. Now, Secret Food Tours has launched over 80 tours in more than 50 cities worldwide and continues to experience 100% year-on-year growth.
How much money it makes: $120K/year
How much did it cost to start: $3K
How many people on the team: 4
Serial entrepreneur Nico Jacquart shares how he and his partner validated and grew a global food tour company with tours in more than 50 cities worldwide, experiencing year on year growth of 100%.
11. Napkin LLC ($96K/year)
The business started as Maura's graduation project, which was originally to make Napkin a hard cider company. Eventually, she met a woman with a farm-to-table restaurant business and helped her develop operational systems. She enjoyed this work and started acquiring more clients in the same niche.
How much money it makes: $96K/year
How much did it cost to start: $500
How many people on the team: 0
Napkin LLC is a consulting firm aimed at helping mission-driven food and farm people thrive through solutions-oriented business planning, with services including Production Capacity, System Integration, Hospitality Management, and Demand Generation, charging $50-$150 per hour based on the client.
12. Simple Goodness Sisters ($84K/year)
Belinda and Venise, the Simple Goodness Sisters, came up with the idea for their business while running a mobile bar company. Clients constantly asked how to recreate the fresh, farm-fresh drinks served at their events, leading them to develop their own small-batch, homemade mixers made with ingredients from Venise's farm. After much research and hard work, they launched their farm-to-bar mixers and accessories in Fall 2018, with their products gaining popularity in the cocktail and alcohol-free cocktail scene.
How much money it makes: $84K/year
How much did it cost to start: $30K
How many people on the team: 0
Simple Goodness Sisters is a lifestyle beverage brand that produces "farm to bar" cocktail mixers and accessories made with natural, sustainable ingredients, growing at a rate of 4 times their original production.
13. janori ($36K/year)
Raphael and Johanna Spannocchi founded janori after realizing the flaws in the current food distribution system. They wanted to create a platform that connected customers directly with local food producers, allowing them to support small businesses and enjoy delicious, organic products. After launching in November 2020, their best-seller was the Christmas box, containing chocolates, sugared almonds, and more.
How much money it makes: $36K/year
How much did it cost to start: $10K
How many people on the team: 0
Janori, an online store founded by Raphael and Johanna Spannocchi, sells local, organic food and offers monthly food boxes with 80+ products from 14 vendors, with its best-seller being the Christmas box, and aims to create a circle of support for suppliers by focusing on the people and creating compelling content.
14. Karachi Kitchen ($24K/year)
Sadaf, the co-founder and designer behind Karachi Kitchen Foods, started the business with her mother, a long-time chef and culinary instructor. They launched their business after collaborating on a self-published cookbook, which won a Gourmand Award. Despite facing setbacks due to Covid and learning about federal and state regulations, they have seen sales more than double since launching their online store.
How much money it makes: $24K/year
How much did it cost to start: $5K
How many people on the team: 0
Karachi Kitchen Foods saw over 200% growth in sales in the past year, offering seven different chutneys and spices, and plans to launch an online subscription box and publish recipes on their website in coming months.
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Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
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