5 Factors That Can Hamper Your Food And Beverages Business

Food and Beverages are the life of any event. One might not remember the decoration or the weather of that day, but they remember the joy of tasting something exciting and delicious. There is always a need for a food and beverages business to bring vibrance to an event. Today, the food and beverages industry is rapidly growing due to increasing demand. The industry is thriving and operates with a diverse range of machines and other resources. 

One of the main functions of the food and beverages industry is the transformation of raw materials from different sources into final products. These primary functions begin with collecting raw materials, processing them, and packaging them after processing is complete, followed by distribution, the final step. 

However, like any other industry, businesses in the food and beverages industry are also susceptible to highs and lows that come with profit and loss. Following are five factors that can impact your food and beverages business:

1. Taxes that are Too High

Paying taxes after starting a business is a must. However, the number of taxes one has to pay to be in the food and beverages industry can be a factor that negatively impacts your business. If you are beginning and are yet to gain your footing, balancing between profits and the rising amount of taxes can be difficult to cope with. 

This significant rise in the taxes for food and beverages businesses hampers the industry and adversely impacts the clients. The consumers end up paying the price much higher than they are supposed to due to high taxes. 

High taxes propel businesses to raise prices on the finished product and services to include taxes as they make a decent profit. The government’s compulsory taxes is one of the factors that can hamper the progress of your food and beverages business.

2. Rising Price of Raw Materials

The food and beverages industry relies on raw materials to begin their day to day operations. Without a sufficient amount of raw materials, the finished product would not be in sufficient quantity. But the price of these raw materials can be a determining factor in making or breaking your business. 

For example, the raw materials needed to begin processing include sweeteners, carbonated water, and flavoring agents in any beverage. These elements are common across most non-alcoholic beverages and need to be purchased in large quantities depending on demand. Raw materials need to be sourced from reliable vendors to ensure quality, and the machines used for processing also need constant maintenance. 

If the prices of these raw materials keep rising, it might hamper your food and beverages business, especially if the profit margin is comparatively small. The budget can take a serious hit if the raw materials are not priced at an affordable rate. The cost of machines and their maintenance is also a factor that might influence your business.


3. Service Not up to the Mark

The products you are offering remain an essential aspect of your business. Still, they remain incomplete if you do not factor in the significance of providing quality service to your custom glass bottle. The service you provide decides if the customers would return to you for future events. It also promotes your business by word of mouth to close relations and acquaintances of your customers.
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Focussing on customer satisfaction and after sales service is an aspect of business that should not be ignored. Through dedicated services, you ensure that a customer’s expectations are not only met but also exceeded. The food and beverages business services include marketing, cuisine, branding, transport, and style. 

Not providing quality service is a big red flag for your business practices. Build trust among your client base by fulfilling the demands of the customer in a professional manner. If your business solely focuses on selling packaged goods, one of the most critical aspects of your business would be to ensure that the packaging of the finished product is done right. This would require a seller who sells quality products and some research into the demands of the market.

4. Not Enough Promotion in the Market

Quality sure matters, but you cannot win on quality alone in a competitive market. Clients will not care for your services much if you do not market your products accordingly. Your name should be familiar if not famous in the business. An adequate promotion gives you an edge over your competition while no promotion takes you back several steps. 

Suppose you bag a deal with a major business in your initial days, that gives you a great chance to prove your abilities. But if you do not get any such chance, marketing your brand will help you gain a firm footing in the industry. Fulfilling the promises you make is the next important step. Promotion will get you clients, but it will need to be paired with other business strategies to spell success for your business. 

Having a dedicated fund for promotion will help your business, while no marketing at all can spell doom for any service provider. The key to balance business strategies with targeted marketing. 

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5. Storage Factors

A functional business model is essential for any business, and it applies to the food and beverages industry as well. Whether you are a new business or an old one does not matter as long as you have enough capital to stay true to your chosen business model. Please pay attention to your cost funding as it impacts your business directly.

Cost funding also includes packaging, which is vital for the life of the finished product. Packaging can range from tetra packs to plastic pouches to aluminum cans. Machines used for packaging also have a cost of their own, as mentioned above. The packaging material should be durable, non-corrosive, non-toxic, and of good quality. Recyclable packaging is preferable to a one-time use of materials. 

For beverages, consider a custom bottle manufacturer that gives you a container that does not rust over time and can be stored at room temperature. It will reduce the price of having the beverage refrigerated. Consider a seller who has experience in the business and does some research to understand the best storage factors for your products. Inadequate storage practices can hamper the business as it will negatively impact your finished product and hamper your profitability.


The food and beverages industry is profitable and is growing with time. Several factors might hinder your progress towards success. Whether it is paying high taxes or high prices for raw materials, the budget needs to be looked at along with the service you provide. Marketing and quality control are also factors that can hamper your business if not focused on. 

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