How to Start a Frozen Food Business in UK USA (Business Plan)

frozen food business

Do you have these questions in your mind?

  • How profitable is the frozen food business?
  • How big is the frozen food business in UK & US?
  • How much profit should you make in a frozen food business?
  • How do I start a frozen food business?

In this article, you will find answers to all your questions. So please grab a cup of coffee, and let’s get started.

Table of Contents

What is the Frozen Food Business?

The frozen food business is one of the most trending food industry in the world right now. It is defined as food products that are stored under low temperatures and used over some time. 

 

A frozen food business is a company that produces and sells a wide variety of frozen food products, such as frozen fruits and vegetables, frozen meats, frozen ready meals, frozen seafood, and frozen desserts.

 

Billions of people consume various types of frozen food products, satisfying the needs of both vegetarians & non-vegetarians. 

 

Frozen food businesses may also offer a range of products suitable for different dietary needs, such as gluten-free or vegetarian options.

Market Insight: Worldwide statistics suggests that the frozen food market will reach somewhere around $370 billion mark by 2027

frozen food business

Types of Frozen Food Business Models

The best way to choose the Frozen Food Business Plan is by checking the demand for your product in the area & how much you can invest.

Companies can use several types of frozen food business models to produce and sell their products.

Frozen Food Ecosystem:

  • Manufacturer:
    A manufacturer produces frozen food products in large quantities and sells them to retailers or distributors.
 
  • Wholesaler:
    A wholesaler purchases frozen food products from manufacturers and sell them to retailers or other wholesalers.
 
  • Retailer:
    A retailer buys frozen food products from manufacturers or wholesalers and sells them directly to consumers through a physical store or online platform.
 
  • Direct-to-consumer:
    A company that sells frozen food products directly to consumers through its own online platform or home delivery service. 
 
  • Franchisor:
    A company that licenses its brand and business model to franchisees, who operate their own frozen food businesses using the franchisor’s products and systems.
 
  • Private Label:
    A company that produces frozen food products for other brands to sell under their own label.
 
  • Food Service Provider:
    A company that provides frozen food products to restaurants, catering companies, and other food service businesses.Each business model has its advantages and challenges, and the best model for a particular company depends on its goals, resources, and target market.
 

Let’s go through some of the frozen food business models you can start:

  • Convenience Store
    It is an expensive business model due to the high rent, interior, and ambiance, but it is also highly profitable.As customers like to browse through the store and are more likely to buy things more than they needed to.
 
  • eShop Online Orders:
    It is an inexpensive model involving the selling of frozen products through online orders.Investments like rent, inventory, and manpower is not really needed as you can do this simply from the comfort of your home.Orders can be done through your website or from your social media accounts and then delivered to the customer’s doorstep.
 
  • Store Deliveries
    This model involves selling your product to your local convenience stores or any shop which sells frozen products.These stores order these finished and packaged frozen food and then sell them at a profit in their stores.
 
  • A Wholesale Warehouse (Cold Storage):
    This model involves cold storage where other businesses come and buy frozen food products at a wholesale price and later sell them at a profit.This type of business is usually in capital as lots of inventory and manpower will be needed here.
frozen food business

Is the Frozen Food Business the right choice for me?

Pros of a Frozen Food Business

  • Flexibility 
  • Ability to start your business from home
  • Little startup costs required
  • High margins
  • Quick build time
  • Unlimited income potential
  • You are your boss! 
  • You can sell your product in various places!
 

Cons of a Frozen Food Business

  • Crowded Space
  • Finding The Right Supplier
  • Taxes
  • High overhead expenses 
  • You may need to charge sales tax    
  • Work can be repetitive
  • Challenging to build trust with your customer 
  • Learning Curve

TIP: Businesses such as hotels, caterers, restaurants, and fast food chains are among the primary users of frozen food products. So, having a good relationship with these businesses will always benefit you.

Investment required to start a Frozen Food Business

It isn’t easy to provide an exact cost for starting a frozen food business, as this can vary significantly based on a variety of factors such as the size and scope of your business, the location and facility you plan to operate in, and the type of products you will be selling. 

 

On average, starting a frozen food business can range from $20K – $75K, depending on these and other factors.

Major Expense Breakup for Frozen Food Business:

- Raw materials, ingredients
- Gas
- Utilities
- Wages & Salaries
- Equipment
- Rent
- Insurance
- Electricity
- Telephone
- Office Supplies
- Repairs
- Licenses
- Property Taxes
- Loans
- Advertisement Costs
- Office & Administration
- Water bill
- Cold Storage / Godown Rent
- Taxes
- Other Supplies

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frozen food business

List of Equipment Required in a Frozen Food Business

Depending on the heat-transfer freezing equipment are one go the most important equipment in the business, and they can be classified into three main groups:

  • Freezer or cold storage
  • Blenders and mixers
  • Refrigeration equipment
  • Packaging equipment
  • Kitchen equipment
  • Food processing equipment
  • Safety equipment
  • Transport equipment


Other important equipment used in the business are:

  • Polyethylene (PE) Film
  • PE Derivatives 
  • Polyethylene Terephthalate (PET) 
  • Cardboard and Laminated Paper 
  • Tin Cans 
  • Aluminum Foil Laminates 
  • Direct Heat Sealer
  • Impulse Heat Sealer
  • VFFS Systems 
  • Zip-Locks

Some popular frozen food selling items in the United States and the United Kingdom are::

- Frozen Pizza
- Frozen Vegetables
- Frozen Dinners (e.g. Lasagna, Chicken Pot Pie)
- Frozen Fruits
- Frozen Waffles
- Frozen Chicken
- Frozen Fish (e.g. Salmon, Cod)
- Frozen Shrimp
- Frozen French Fries
- Frozen Burritos
- Frozen Breakfast Sandwiches
- Frozen Burgers
- Frozen Meatballs
- Frozen Salafel
- Frozen Appetizers (e.g. Mozzarella Sticks, - Chicken Tenders)
- Frozen Soups
- Frozen Smoothies
- Frozen Ice Cream
- Frozen Yogurt
- Frozen Fruit Bars\
- Frozen Pie
- Frozen Quiche
- Frozen Ravioli
- Frozen Wontons
- Frozen Spring Rolls
- Frozen Egg Rolls
- Frozen Pot Stickers
- Frozen Tater Tots
- Frozen hash browns
- Frozen Muffins

frozen food business

Hygienic Standards you must follow in a Frozen Food Business:

  • Regular hand washing
  • Proper food handling
  • Clean and sanitize equipment
  • Personal hygiene
  • Pest control
  • Temperature control

 

Other Important Points to implement:

  • Surfaces have to be smooth, easily cleanable, non-absorbent, and resistant to water and sanitizing agents.
  • Water accumulation or water leaks are prohibited.
  • The building has to be free of dust, rust, webbing, and food accumulation.
  • Dumpsters and waste receptacles must be regularly cleaned.
  • Equipment should be constructed from food-grade, non-absorbent, non-toxic, and corrosion-resistant materials.
  • Use equipment and utensils that divert condensation away.
  • Steel wool or metal sponges are not to be used for cleaning.
  • Mechanical breakdowns, time delays, or temperature fluctuations should be monitored.
  • Food packaging should be of the right mechanical strength.
  • Packaging material must not be close to chemical substances.
  • Frozen product must be kept at a suitable temperature.
  • Raw food must not be with food that is ready to eat.
frozen food business

How do I get started in the Frozen Food Industry?

Things to keep in mind while selling frozen food-based products:

  • Make an effort to specialize
    It is not advisable to sell frozen foods that customers can purchase at supermarkets.

    The best results will come from unique health foods, homemade foods, and products only available in your area.

  • In the beginning, keep things small
    The food industry is primarily based on reputation. Therefore, attempting to cover an overly large customer base frequently results in dissatisfied customers.

    Sell only one or two products first, and concentrate on providing excellent customer service.

  • Cut costs by Renting & Leasing 
    Only buy or lease equipment once your revenue covers the costs.

    The initial costs of delivery truck leases, kitchen equipment purchases, and real estate contracts can often take years to recover. 

    They can decrease your capital, forcing you into debt to keep your business running.

Starting a frozen food business is relatively easy and does not require as much overhead as opening a restaurant. But yet, it needs planning and preparation.


Get your ideas off the ground:

• Determine which frozen products you will sell
• Develop a business plan
• Plan your logistic
• Raise funds
• Obtain a license
• Think about joining a franchise
• Expand your distribution channels
• Focus on quality
• Diversify your product line
• Invest in marketing and promotion
• Focus on customer service

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frozen food business

Logistic Strategy for a Frozen Food Business

In the frozen food business, the distribution plan (movement of inventory from point A to point B) is the topmost point that will ensure your success.

Logistics can be particularly challenging for a frozen food business due to maintaining a cold chain to keep products fresh and safe.

Storage:
Frozen food products must be stored at very low temperatures to maintain their quality and safety. Therefore, you require specialized storage facilities with proper temperature control and insulation.

Transportation:
Frozen food products need to be transported in a way that maintains the cold chain and prevents thawing.

This involves using refrigerated vehicles or containers or working with a third-party logistics provider with experience handling frozen goods.

Order Fulfillment:
The logistics of fulfilling orders for frozen food products can be complex, particularly if the business sells directly to consumers. It may be necessary to have a system to manage inventory, process orders, and coordinate deliveries.

Supply Chain Management:
A frozen food business may need to work with multiple suppliers and partners in the supply chain, such as farmers, manufacturers, and distributors.

Therefore, it is essential to have a clear plan to manage these relationships and ensure that products are delivered on time and in good condition.

Developing a well-thought-out logistics strategy can help a frozen food business run smoothly and efficiently and ensure that products are delivered to customers promptly and satisfactorily.

Here are some considerations for developing a logistics strategy for a frozen food business:

  • Consider the number of frozen meals to be delivered
  • To make deliveries, the vehicle you choose is essential
  • You will need a strategy for coordinating inventory and distribution
  • You can market your products online and deliver them in freezer trucks / vans

Is it necessary to offer delivery service in the Frozen food Business?

In this busy world, people always don't get time to make their food; So, so that's why they may order a bunch of frozen food at once, so later they can efficiently heat it up and then eat.

You should offer delivery service to customers to reach the maximum number of people you can.

Consistently deliver your products every time to satisfy customers, and always maintain the quality standard of the product.

frozen food business

Buy an existing business or franchise or start from scratch

Buying an existing Frozen Food Franchise of a recognized brand is a good idea; however, it is expensive also.

 

On the other hand, the franchisor will benefit you will all the existing brand image, customer loyalty, advertising, market research & strategies. 

 

In addition, you will get guidance from the franchisor about training the workforce & ambiance of the premises.

 

Some of the top Frozen Food Franchises in the UK and USA 

 

  • Kraft Heinz
  • General Mills
  • Conagra
  • Bernard Matthews Ltd
Frozen Food Business

Frozen Food Business SOP 

Developing and following SOP will help you streamline the functionality of staff & their training and efficiency standards, reduce wastage, and help prevent mistakes or errors that could compromise food safety or quality.

  • Receiving and storing frozen food products: 
    This outlines the steps for receiving deliveries, checking the condition of the products, and storing them in the appropriate areas of the facility.

  • Handling frozen food products: 
    This SOP includes instructions for thawing and preparing frozen food products for cooking or processing and guidelines for maintaining cleanliness and hygiene.

  • Packaging and labeling frozen food products: 
    This SOP details the steps for packaging and labeling products according to industry standards and regulations.

  • Transporting frozen food products:
    This SOP outline the steps for loading and unloading frozen food products onto vehicles and guidelines for maintaining the cold chain during transportation.

  • Cleaning and Sanitizing: 
    This SOP includes instructions for cleaning and sanitizing equipment and surfaces in the facility and guidelines for personal hygiene and food safety.

 

Training & Customer Service:

If you have taken a franchise, you will get a list of SOPs from the franchiser. These SOPs generally have a training manual in the contract. Even a product expert may visit to train the new workers so that all the franchises maintain the standard of the parent company.


A company with good customer service can only meet customers' expectations, so a Customer service SOP needs to be designed besides product preparation or kitchen training.

Conclusion

Yes, a Frozen food business is a good idea; the profits are rewarding. It is a significant part of modern culture & is profitable; congratulations on your decision to start a Frozen Food Business


Do offer both Vegetarian & Non-vegetarian options on your list of Frozen Food Products, and also try to deliver low-fat and gluten-free products if necessary. Also, provide different varieties of food products, as customers need types as per their tastes & food allergies.


Just remember, to operate a frozen food business, you must comply strictly with all relevant food safety regulations and obtain the necessary licenses and permits. 


Overall, the frozen food industry is a significant and growing part of the food industry in the United States and the United Kingdom.

Want to Save Time in your Business Launch?

  • How to Create a Business Plan
  • What is Market Research, USP, Niche & Positioning
  • How to find a suitable name for your business
  • How to create your brand image (Logo + Branding)
  • How to Register Your Business
  • How to Register for Taxes
  • How to get Licenses / Permits
  • How to Open a Business Bank Account
  • How to Get Business Insurance
  • Which Payment Processing Terminal (POS) to buy
  • How to get Funds for your Business
  • How to do Sales & Marketing – Offline & Online
  • Why have a Website / Blog / Social Media
  • How to build & train your Dream Team
  • How to provide Excellent Customer Service
  • Buying an Old Business Vs Franchisee Vs Own Brand from Scratch

Handpicked inspirational Youtube videos for you

The Frozen Food Startup Innovating Subscription Meal Delivery In The Time Of Coronavirus | Forbes – YT Channel ‘Forbes’

Frozen Food: The $300 Billion Idea That Changed How We Eat | Billion Dollar Breakthrough – YT Channel ‘Insider Business’

Shopping with Michael: Frozen Foods, (Episode 28) – YT Channel ‘Store Brands USA’ 

A. According to the American Frozen Food Institute, the business will keep expanding as a result of developments in foods that cater to particular nutritional requirements, like plant-based foods and foods that promote immunity. 



A. The best way to store ready-to consume food is by freezing it. It is necessary to place these frozen food items in a cooler with adequate ice cubes or blocks for transportation, though. 

There are several ways you can promote your frozen food business:

1. Develop a strong online presence
2. Offering discounts and promotions
3. Collaboration with other businesses
4. Participation in local events
5. Using targeted marketing
6. Focusing on customer service
7. Using packaging to your advantage

A. The size of the global frozen food market was valued at $224.75 billion in 2020 and is expected to grow at a compound annual growth rate of 3.2% from 2021 to 2026.

A. Here are a few well-known frozen food companies in the UK:

1. Birds Eye

2. Findus

3. McCain

4. Green Cuisine

5. Goodfella’s

A. Here are a few well-known frozen food companies in the US:

1. Nestle

2. ConAgra Brands

3. Kraft Heinz

4. Pinnacle Foods

5. Tyson Foods

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