How is a food and beverage business affected by the seasonal nature of the industry and what are ways to minimize the affects?

Answer 1

It is difficult to answer your question without knowing what type of food and beverage business you operate or are thinking about starting (i.e. energy drink manufacturer, baker, restaurant, etc.). As an example, let's say that you operate a smoothie bar located near a beach in Maine. Maine only has about five or six months of warm weather, with only three months of true beach weather. Thus, one of the risks in running or starting this type of business is seasonal fluctutations. Who wants to buy a cold smoothie in Maine during the cold winter months? So, you need to come up with a way to diversify your income to offset the changes in consumer demand. One option is to offer other food products, such as coffee or lattes. But since the business is located near a beach, this might not be feasible, as the entire region is probably dependent on summer tourism. Another option is to come up with other products that can be produced and sold to local restaurants, supermarkets and so on during the winter months, such as smoothie ice cream or smoothie cakes. Your best approach is to write down all potential risks associated with your industry, and then come up with a risk minimization plan.