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Written by: Carolyn Young
Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.
Edited by: David Lepeska
David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.
Published on February 17, 2022
Investment range
$8,550 - $24,100
Revenue potential
$110,000 - $1,100,000 p.a.
Time to build
1 – 3 months
Profit potential
$44,000 - $220,000 p.a.
Industry trend
Growing
Commitment
Full-time
Pay attention to these important factors as you establish your small barbecue business:
You May Also Wonder:
Can a barbecue business be profitable?
Yes, a barbecue business can be profitable. If you run a mobile barbecue stand, your profit margin should be around 40%. The profit margin of a food truck or restaurant will be closer to 20%.
How can I sell my barbecue without opening a restaurant?
You can do catering, have a food truck, or just have a mobile barbecue stand. For a mobile barbecue stand, you’ll need your barbecue equipment and a vehicle to transport it.
How do I market my BBQ business?
Develop a strong online presence by creating a professional website and utilizing social media platforms to showcase your BBQ offerings, menu items, and customer testimonials. Share mouthwatering photos and videos of your BBQ dishes on social media. Implement targeted online advertising to reach individuals in your local area who are interested in BBQ or food-related topics.
What city eats the most BBQ?
The city that eats the most BBQ can vary, but some well-known BBQ hotspots in the United States include Kansas City, Texas (particularly Austin and Lockhart), Memphis, and North Carolina (Eastern-style and Western-style).
What is the best selling barbecue meat?
The best-selling barbecue meat can vary based on regional preferences, but some popular choices include pork ribs, pulled pork, brisket, chicken, and sausage. It’s important to understand the preferences of your local market and offer a variety of BBQ meats to cater to different tastes.
How to set my barbecue business apart from competitors in the market?
Develop a unique BBQ flavor profile or signature sauce that distinguishes your offerings. Emphasize high-quality ingredients and authentic cooking techniques to create exceptional BBQ flavors. Offer a diverse menu that includes unique side dishes, vegetarian or vegan options, or fusion-inspired BBQ creations.
Starting a small barbecue business has pros and cons to consider before deciding if it’s right for you.
Trends in the barbecue industry include:
Challenges in the barbecue industry include:
Startup costs for a small barbecue business range from $8,500 to $24,000. The first main expense is a down payment on a food truck, a down payment on a truck to transport your equipment, or a rental space deposit. The second main expense is for the equipment including a commercial smoker and a grill.
If you want to hone your BBQ skills, you can take online video classes through a site like BBQ Champs for less than $1,000. You can also find a host of free grilling and barbecue videos on YouTube.
You’ll need a handful of items to successfully launch your small barbecue business, including:
| Start-up Costs | Ballpark Range | Average |
|---|---|---|
| Setting up a business name and corporation | $150 - $200 | $175 |
| Business licenses and permits | $100 - $300 | $200 |
| Insurance | $100-$300 | $200 |
| Business cards and brochures | $200 - $300 | $250 |
| Website setup | $1,000 - $3,000 | $2,000 |
| Down payment - food truck, transport truck, or rented space | $5,000 - $10,000 | $7,500 |
| Commercial smoke, grill, and other equipment | $2,000 - $10,000 | $6,000 |
| Total | $8,550 - 24,100 | $16,325 |
The average price of a BBQ meal is about $15. If you operate as a solopreneur with a mobile stand or food truck, your profit margin should be about 40%.
In your first year or two, you could sell 20 meals per day from your BBQ truck and bring in nearly $110,000 in annual revenue. This would mean almost $44,000 in profit, assuming that 40% margin. As your brand gains recognition, you could rent a restaurant space and hire staff, reducing your profit margin to around 20%. You might sell 200 meals per day, giving you about $1,100,000 in annual revenue and a tidy profit of $220,000.
There are a few barriers to entry for a small barbecue business. Your biggest challenges will be:
Now that you know what’s involved in starting a small barbecue business, it’s a good idea to hone your concept in preparation to enter a competitive market.
Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.
Research small barbecue businesses in your area to examine their products, price points, customer reviews, and what sells best. You’re looking for a market gap to fill. For instance, maybe your market is missing a restaurant that specializes in BBQ chicken.
You might consider targeting a niche market by specializing in a certain aspect of your industry, such as vegetable and vegan barbecue.
This could jumpstart your word-of-mouth marketing and attract clients right away.
You could specialize in barbecuing a certain type of meat or offer a variety, and you could also choose a style of barbecue like Kansas City or St. Louis barbecue. You could also offer a variety of side dishes. Potential products include:
A barbecue meal could range from $10 to $18 depending on the size and the number of sides. The average is around $15. Your expenses, if you have a mobile stand, will be for ingredients, packaging, and fuel. You should aim for a profit margin of about 40%.
Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.
Your target market will be very broad so you should spread out your marketing on sites like TikTok, Instagram, Facebook, and LinkedIn. You could also get some recognition by entering a barbecue competition or two.
In the early stages, you may want to run your business as a mobile stand to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out retail space to have a BBQ joint. Find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.
When choosing a commercial space, you may want to follow these rules of thumb:
Here are some ideas for brainstorming your business name:
Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.
Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.
Here are the key components of a business plan:
If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.
Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.
Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!
Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to small barbecue businesses.
If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.
Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your barbecue business will shape your taxes, personal liability, and business registration requirements, so choose wisely.
Here are the main options:
We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.
Choose Your State
The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.
Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.
The IRS website also offers a tax-payers checklist, and taxes can be filed online.
It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.
Securing financing is your next step and there are plenty of ways to raise capital:
Bank and SBA loans are probably the best option, other than friends and family, for funding a small barbecue business. You might also try crowdfunding if you have an innovative concept.
Starting a barbecue business requires obtaining a number of licenses and permits from local, state, and federal governments. A barbecue stand or restaurant may need the following, depending on the requirements in your area:
Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.
You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.
You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.
This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.
If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.
Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.
Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your barbecue business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.
Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.
Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.
Here are some types of insurance to consider:
As opening day nears, prepare for launch by reviewing and improving some key elements of your business.
Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.
You may want to use industry-specific software, such as Restaurant 365, lightspeed, or toast, to manage your inventory, purchasing, menu, and payments.
Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.
You can create your own website using services like WordPress, Wix, or Squarespace. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.
They are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google.
Here are some powerful marketing strategies for your future business:
Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your barbecue business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.
Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your barbecue business could be:
You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a barbecue business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been in barbecue for years and can offer invaluable insight and industry connections.
The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in barbecue. You’ll probably generate new customers or find companies with which you could establish a partnership.
If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles when you get a physical location. Potential positions for a barbecue business include:
At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.
Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.
People love their barbecue, no matter what style, so if you’re a master of grilled meats you could start up your own little BBQ business and put smiles on a lot of faces while grabbing a slice of this $4 billion industry. With patience and hard work, you could eventually grow to have multiple BBQ joints and franchises around the country.
Now that you’ve done your business homework, it’s time to get behind that grill, perfect your recipes and start building your barbecue empire!
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