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Top 5 Most Profitable Food Business Ideas For 2019 | Small Business Ideas - YouTube
Channel: Wilson K Lee - How To Open A Restaurant / F&B Shop
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Hey guys.
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My name is Wilson, and today we're going to
be diving into the top five most profitable
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beverage restaurant owners and created the
survey.
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That's the reason why I was able to gain a
lot of insight into which types of business
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are actually making money and what is not
making money.
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This report is a lot of work, and it gave
us a lot of insight into how people invest
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and the type of service we're going to be
offering.
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Today I'm going to be sharing with you the
top five most profitable businesses, so make
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sure you guys stay until the end.
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I'm going to be sharing with you guys.
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We talked about the few things to look out
for when creating a restaurant and when you're
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opening up a restaurant and, within this video,
we talked about the margins that typical food
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and beverage owners make, and that ranges
from 5% to 10%.
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That is very, very slim margins.
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Today, these five businesses that I'm gong
to be talking to you about, the five industries,
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all range from 20% to 35% margins.
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We're talking about 20% to 35% margins take-home,
so make sure you guys stay until the end.
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This is something I've never done before.
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I don't even know if I'm going to get in trouble
by doing this, so if you're watching this
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video, good for you.
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If this video is down that means I'm getting
sued, okay?
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Before we dive right in, I'm going to be talking
about the structure of how I'm presenting
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it.
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I'm going to be talking to you about the pros
and the cons and basically why this is such
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a profitable idea.
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You would want to really pay attention to
this because before we dive into creating
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and actually committing into your next five
years of business, you probably would want
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to know what is the most profitable.
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You probably want to know which business idea
to get into so then that way, after five years,
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you're not better off not starting at all.
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So many businesses are like that, but today
these five businesses are the kings and the
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queens of 2019.
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Are you guys ready?
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All right, let's dive right in.
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The number one most profitable food and beverage
business to be in in 2019 is a bubble tea
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shop, and the reason why it's the most profitable
is because the cost of goods sold is relatively
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low.
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It ranges from 10% to 15%.
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It is super easy to make, and on top of that,
the quality control is always there.
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You just follow the formula.
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You have all the powders, you have all the
syrup and you're good to go.
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Training people is super easy because of the
fact that the quality control is so easy to
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make as well.
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Some of the pros of operating a bubble tea
shop is that it has high demand.
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Nowadays, everyone is drinking bubble tea,
and if you do not know what bubble tea is
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you definitely are missing out.
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Second thing is high turnover rate, and what
that means is that you don't need a really
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big space in order for you to do a lot of
volume.
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People grab their bubble tea and they go.
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A lot of people order takeout, and that is
the reason why it is such an attractive business
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model.
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On top of that, it doesn't require a lot of
investment.
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All the equipment that it requires is actually
very, very affordable.
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The fourth thing is that the quality control,
everything is processed in terms of it has
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a process.
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It doesn't require a very high skill to be
able to make the product good because it's
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all in the formula.
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It's all in the syrup, it's all in the powder.
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That's what makes this product and this business
model so attractive.
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For us, we actually started selling bubble
tea as well at 720 Sweets two years ago because
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we saw how profitable it is, and how much
of a demand it has.
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Now, the con of running this business is that
the average ticket price for this product
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is relatively low, so what that means is that
you need a lot of volume in order for you
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to be super profitable.
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The second con is that it is highly, highly
competitive.
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I'm not sure about you, if in Vancouver we
have more bubble tea shops than 7-Eleven's,
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and in any convenience stores, going down
a block you're going to see at least five
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of them.
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It is because it is such a profitable business
idea out there.
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Just to share some behind-the-scenes stories
with you is that I actually have a lot of
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friends who are in this field and that are
in this business, and just to let you know
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about the volume that they're actually doing
is that a lot of them actually clear seven
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figures selling bubble tea.
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We're talking about peak times, more than
$200,000 per month.
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That is crazy amount of volume and crazy amount
of demand, and that's the reason why 720 Sweets
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is in the forefront and our franchisees love
us providing this as well.
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I mean, if you're not in this business in
today's age, you're definitely missing out.
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The second most profitable food and beverage
business out there is an ice cream shop and,
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luckily enough, our 720 Sweets, our dessert
chain, is in the forefront of this as well,
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and this is the reason why we've expanded
so rapidly.
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Nonetheless, just to share with you some of
the pros, is that the cost of goods sold,
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once again, is relatively low in comparison
to a full service restaurant.
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We're talking about around 20% to 25% in cost
of goods sold.
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Now, the quality control is definitely one
of the pro things because when you make these
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things in batches, and it comes in formulas,
basically just mix A, mix B, mix C, and out
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comes a product, so it doesn't require a lot
of high skilled labor and talent in order
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for them to create the product.
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At the end of the day, who doesn't like ice
cream?
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Come on, you tell me one person that doesn't
like ice cream, I will give you free ice cream.
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Everyone loves ice cream and, at the end of
the day during the summertime, it is amazing
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that the amount is crazy during the summertime.
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Now, some of the cons of running an ice cream
shop is the fact that the equipment is a little
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bit higher in cost and also the seasonality
of the problem and also the low ticket cost
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of the ticket item, so that means you need
a lot of volume in order for you to be able
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to able to make the big margins that I've
been talking about.
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Just as an example, sharing a little bit more
with you, is that the reason why 720 Sweets
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was able to do quite decently well is because,
knowing the fat that seasonality is a problem,
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we introduced bubble tea, and we introduced
taiyaki as well, because we want to make sure
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that we uplift that average ticket cost.
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People don't only come in for dessert.
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They can also can come in for a light lunch
or a light dinner.
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We have these taiyaki sandwiches, which is
a croissant made sandwiches that people love,
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and that helped us increase our average ticket
cost, as well, and on top of that, it also
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tackled the seasonality problem.
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If you are in any of these lines of business,
and if you think that these are all the cons,
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these are just creative ways of how you can
actually come up on top of the cons, so there
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you go, second most profitable food and beverage
business idea in 2019.
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The third most profitable food and beverage
business idea in 2019 is having a ramen joint.
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Ramen joint is amazing when it comes to profitability
because the cost of goods sold is only 15%
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to 20% and, on top of that, the pro is that
people love ramen.
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Tell me one person that doesn't love ramen.
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Everyone loves ramen, okay, and on top of
that the average ticket cost is definitely
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a lot higher when it comes to per person spending,
so that is a really high must, and on top
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of that it requires a medium skilled labor.
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It doesn't require a full-on chef to create
this product but, nonetheless, a lot of the
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things actually are preset.
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You actually follow a formula in order for
you to create the product, which is the reason
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why it is such an attractive model when it
comes down to it.
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On top of that, super, super high turnover.
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Haven't you been to a ramen shop where they're
like, if your whole party is not here, you
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cannot go in, you cannot eat?
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I've definitely been to a lot of these ramen
shops.
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It's part of the culture because they want
you to grab and go, grab and go, so they can
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have that turnover.
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I have friend who is in the ramen joint business.
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His place is only a thousand square feet and
he makes more than $2 million dollars in revenue.
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It is mind blowing.
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It is crazy how much volume that they do because
of how much high turnover, just completely
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crazy.
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Now, on the flip side, the investment is definitely
a lot higher when it comes down to it.
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They have a lot more competition as well.
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The fourth type of super profitable food and
beverage ideas in 2019 is having a pasta joint.
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Pasta place is super profitable as well.
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I've interviewed more than hundreds of food
and beverage owners.
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Pasta is always on the top in terms of profitability
because of how a staple this item is.
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Just like ramen, people love pasta, and the
cost of goods sold is incredibly low because
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they're just mixing flour and water.
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It's just crazy.
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Typically speaking, we are talking about around
15% to 20% cost of goods sold, high demand,
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average ticket cost is definitely a lot higher
than bubble tea and also ice cream as well,
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so this is something that is definitely a
pro.
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Now, the con side is that the investment to
open a pasta joint is definitely a lot higher
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when it comes down to it, because you need
to have a full-on kitchen and, on top of that,
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you need to have a higher skilled labor to
open up a pasta place.
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The final, fifth, most profitable business
idea in 2019 is having a pizza shop.
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You know, this has always been something that
is super profitable because you're basically
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mixing dough and water as well.
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You're talking about maybe 10% to 15% in cost
of goods sold.
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Now, depending on what type of pizza joint
you serve, some people might have arugula
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and have different types of really upscale
meat so, for those joints, their cost of goods
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sold are definitely higher, but for a lot
of your neighborhood pizza places, their margins
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are insane.
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Grab and go, high turnover.
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Who doesn't like pizza?
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Come on.
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Everything that I mentioned, people love,
which is the reason why it makes them have
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so much demand and high margins, okay?
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So when it comes to pizza, the skill required
to make pizza is definitely a lot lower than
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a full-on restaurant as well.
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On the con side, the investment for having
a pizza shop is definitely a lot higher as
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well.
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So there you go.
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The top five most profitable food and beverage
businesses in 2019.
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I know I've focused a lot on the cost of goods
sold but because of the fact that when it
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comes to running a food and beverage business,
the margins is really determined by the cost
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of goods sold, by your labor, and by your
rent.
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So if you can control any of these to a minimal,
that's where upside comes from, which is the
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reason why these five different business ideas
is so incredibly profitable in 2019.
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If you guys are looking for more resources
and insight into how the food and beverage
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industry is doing across the platform and
across the board, definitely download the
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link below.
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The report that we have done and the survey
that we have done is something that we're
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doing for you guys.
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Hopefully, it helps you into gaining a little
bit more insight when you're considering the
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types of food and beverage that to want to
be in.
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If you guys like this video, give me a thumbs
up.
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Leave in the comments section below what you
think about this video or, if there's any
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other industries that you know are super profitable
as well that I missed out, I'd gladly put
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it in my next video.
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Otherwise, subscribe for the next video.
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I'll talk to you guys next week.
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