Estimating Your Startup Costs

What It Really Takes to Get a Food Business Off the Ground

One of the first questions every founder asks is: “How much does it cost to start a food business?” The answer depends on your product and where you plan to sell; but the core costs are more predictable than most people realize.

If you're launching a packaged food or refrigerated item, you’ll likely face expenses like commercial kitchen rental, packaging, labeling, cold storage, and possibly lab testing. Even if you're starting small, selling at a farmers market or through pre-orders, these early costs add up fast if you don't plan ahead.

This guide breaks down the most common startup costs for food businesses and gives you a real-world budget example to help you avoid surprises and launch with confidence.

Real-World Example: Launching a Refrigerated Salsa Product

Here’s a simple but realistic budget for someone starting with a single refrigerated salsa SKU and aiming to sell at local farmers markets. This covers legal production, packaging, and the basic gear to make a clean, professional impression—without wasting money on fluff.

Step 2: Packaging & Production Supplies

Ingredients for 50 units (bulk tomatoes, onions, chiles, etc.)
Sourced from a restaurant wholesaler or ethnic grocer.
→ $100

Packaging (plastic deli cups with tamper-evident lids x 50)
Refrigerated products need moisture-safe packaging.
→ $40

Thermal Labels + Printer Setup (basic starter kit)
You’ll want print-on-demand flexibility for batch info.
→ $150

Storage (Chest Fridge or Upright Refrigerator)
Used on Facebook Marketplace or Craigslist.
→ $100–250

Cooler & Ice Packs for Transport (farmers market day)
Keeps product cold during transit and at booth.
→ $60

Hairnets, gloves, cutting boards, utensils (food-safe supplies)
Only buy what you don’t already have.
→ $40

Subtotal: $490–640

Step 1: Facility Access & Legal Requirements

Commercial Kitchen Rental (10 hours @ $30/hour)
Prep, cook, and clean your first three test batches.
→ $300

Food Safety Certification (ServSafe or state-level)
Most states require this to work in a commercial kitchen.
→ $90

Business Registration or LLC Filing
Optional at launch, but gives legitimacy and allows you to get insurance.
→ $125–150

Product Liability Insurance (monthly premium)
Covers you at events and protects your brand.
→ $50

Label Compliance Review (DIY or consultant)
Required to ensure you meet FDA or state labeling rules.
→ $0–200

Water Activity & pH Testing (to confirm safety for cold storage)
Often required if you’re not going through a co-packer.
→ $300–500

Subtotal: $865–1,290

Step 3: Farmers Market Setup

Folding Table & Tablecloth
→ $60

Tent/Canopy (optional but preferred)
→ $120

Branded Sign (vinyl banner or tabletop easel sign)
→ $50

Digital Payment Setup (Square reader)
Usually free with account setup; fees taken from sales.
→ $0

Market Booth Fee (per event)
Varies, but plan for a small local market.
→ $25–50

Business Cards or Flyers
Optional, but useful.
→ $25

Subtotal: $280–305

Step 4: Samples, Testing, and Early Sales Strategy

Test Batches & Samples (3–4 rounds)
You’ll give away a good number of jars early on—for feedback, not favors. We love sampling to get new customers!
→ $75–100

Be strategic: only send full samples to decision-makers—buyers, reviewers, store managers—not your friends. We have a policy here at CPG Guy: we do not encourage feedback from friends and family when they’re given free food. It almost always comes back 100% positive and with no actionable information.

Grand Total Estimate: $1,710 – $2,335

This is a lean, real-world starting budget for launching a refrigerated salsa product with 50+ sellable units, a compliant setup, and a credible presence at a farmers market.

And from here, your costs become much more aligned with production and sales costs, not so much focused on setup. Some of these costs will come back again: shelf life testing, package changes, new SKUs, etc.

Next Steps

Now that you’ve seen what it takes to launch one refrigerated product, we’ll help you prepare for the actual sale: