5 Biggest Mistakes New Food Entrepreneurs Make (And How to Avoid Them) – As Covered in My Free Masterclass

Have you ever visited a restaurant or a cozy little food spot, taken a bite of something amazing, and thought, “I could do this. I should open my own place!” If you’re a true food lover, you’ve probably had that thought more than once. Turning your passion into a business is exciting, but running a successful food business is very different from simply loving great food.

Starting a restaurant, canteen, or food service business is an exciting journey. You have a passion for cooking, a vision of happy customers enjoying your meals, and dreams of running a thriving food business. But here’s the reality: many new food entrepreneurs struggle because they make a few common but costly mistakes.

The good news? You don’t have to learn these the hard way. In my Free Masterclass, I walk you through these mistakes step by step, plus the exact strategies to avoid them. Today, I’m giving you a preview so you can start smarter and get results faster.

Mistake #1: Trying to Do Everything Yourself (and Burning Out) 

Many new restaurant or canteen owners believe they need to do everything—from cooking and serving to accounting and marketing. While dedication is important, running a food business alone or with a small team doing too much is a fast track to burnout and inefficiency.

The Common Traps:

• Spending too much time in the kitchen instead of managing operations.

• Handling all the admin work—accounting, orders, staffing—while still trying to cook.

• No clear delegation, leading to mistakes and inconsistency.

The Fix:

• Use a partnered kitchen model—Instead of setting up a full production kitchen from scratch, consider working with an existing professional kitchen or outsourcing food prep.

• Automate processes—Use online ordering, simple POS systems, and meal-prep batching to save time.

• Hire or collaborate with a small but specialized team—Chefs focus on food, admin staff handles orders, and you focus on growth and customer experience.

👉 In my Coaching programs, I break down the best kitchen and staffing models that help food businesses scale without the overwhelm.

Mistake #2: Choosing a Large, Costly Location Too Soon 

Many food entrepreneurs dream of opening a huge restaurant or a full-scale canteen right away. The reality? High overhead costs and slow initial revenue can cripple your business before you get started.

Why This Hurts Your Business:

• High rent and utility costs drain your cash flow.

• Big spaces require more staff, more equipment, and higher fixed expenses.

• If foot traffic is low, you may struggle to fill tables consistently.

The Fix:

• Start with a small, efficient space or a cloud kitchen model. This minimizes costs while allowing you to test your concept.

• Focus on takeout, delivery, and catering—you don’t need a big dining area to start making profits.

• If you want a physical location, consider shared spaces or food halls before committing to a standalone venue.

👉 In my Jumpstart Masterclass, I share real-world examples of food entrepreneurs who started lean and scaled profitably.

Mistake #3: Pricing Meals Based on Emotions Instead of Strategy 

A common pricing mistake is setting prices too low to attract customers or too high without justifying the value. Pricing your meals incorrectly can kill your profit margins and make it impossible to sustain your business.

What Happens When You Price Too Low:

• You barely cover costs, leading to financial stress.

• Customers expect cheap prices forever, making it hard to adjust later.

• You work long hours for minimal returns.

What Happens When You Price Too High:

• Customers hesitate to buy because they don’t see the value.

• Competitors with better marketing may take your potential customers.

• You risk limiting your customer base too soon before building trust.

The Fix:

• Calculate true food costs—including ingredients, labor, rent, packaging, and overhead.

• Use a preorder system or set menus to control portions and reduce waste.

• Offer meal bundles or prepaid meal plans—this improves cash flow and ensures consistent sales.

👉 In my  Coaching programs, I show you a simple pricing strategy that ensures every meal is profitable.

Mistake #4: Not Having a Customer Acquisition Plan 🎯

Opening your restaurant or canteen is just the first step—getting a steady flow of customers is what keeps you in business. Many food entrepreneurs rely only on walk-ins or word-of-mouth, but that’s not enough.

What Happens Without a Marketing Plan?

• You depend on random customers—leading to inconsistent revenue.

• If people don’t know you exist, they can’t buy from you.

• You struggle to compete with food businesses that actively market online.

The Fix:

• Leverage social media marketing—Instagram, Facebook, and Google My Business help local customers find you.

• Build an email or WhatsApp customer list—send weekly menus, promotions, and meal plans to past customers.

• Use preorders and meal subscriptions—this locks in sales before you cook.

👉 In my  Coaching programs, I show you how to market a food business affordably and effectively.

Mistake #5: Ignoring Customer Retention and Repeat Orders 🔁

Many new food businesses focus only on getting first-time customers and forget about keeping them coming back. The truth is, repeat customers are the key to a sustainable and profitable business.

Why This is a Huge Mistake:

• New customers cost 5x more to acquire than keeping an existing one.

• No customer feedback means you miss chances to improve.

• Loyal customers can become brand ambassadors who bring referrals.

✅ The Fix:

• Implement a simple loyalty program—discounts for repeat orders, free meals after a certain number of purchases.

• Collect customer feedback and act on it—people appreciate when businesses listen.

• Offer exclusive meal plans for returning customers—prepaid packages keep revenue stable.

👉 In my Jumpstart Masterclass, I walk you through how to build a loyal customer base that keeps coming back.

Want to learn how to structure your food business the right way?

Watch my JUMPSTART MASTERCLASS now →https://www.healthyfoodstartup.com/jumpstart

Have you ever dreamed of opening your own food business? If so, share your vision in the comments below—what would your dream food place look like? I’d love to hear about it!