![How to plan and track the budget of your food brand [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-4_73ee56df-eebd-4504-acf7-7d2879e38b6f.png?v=1715856426&width=1100)
If you don’t plan and track your food brand's budget properly, you're setting yourself up for failure.
When we developed our strategy pack for food brand owners, we saw a lot of entrepreneurs struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having substantial revenue.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your food brand's finances around and set you on the path to success!
Get the budget tracker tailored for food brands
Most food brand founders don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for food brands
Here is an example of a (very) detailed budget for a food brand, to give you some inspiration
1. Production and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Factory Rent | Lease for production facility | $4,000 | $48,000 |
| Electricity | Power consumption for machinery | $1,200 | $14,400 |
| Water | Water usage for production | $300 | $3,600 |
| Gas | Gas for heating and cooking | $400 | $4,800 |
| Internet & Phone | Internet service and business phone | $200 | $2,400 |
| Waste Removal | Garbage and recycling services | $150 | $1,800 |
| Pest Control | Monthly pest control services | $75 | $900 |
| Insurance | Property and liability insurance | $600 | $7,200 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Production Manager | 1 | $5,000 | $5,000 | $60,000 |
| Quality Control Specialist | 1 | $3,500 | $3,500 | $42,000 |
| Machine Operators | 3 | $2,500 | $7,500 | $90,000 |
| Packaging Staff | 4 | $2,000 | $8,000 | $96,000 |
| Warehouse Staff | 2 | $2,000 | $4,000 | $48,000 |
| Sales Manager | 1 | $4,000 | $4,000 | $48,000 |
3. Raw Material Costs
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Ingredients | Raw materials for food production | $15,000 | $180,000 |
| Packaging Materials | Bottles, boxes, labels, etc. | $5,000 | $60,000 |
| Cleaning Supplies | Detergents, sanitizers, etc. | $300 | $3,600 |
| Office Supplies | Stationery, printer ink, etc. | $200 | $2,400 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $500 | $6,000 |
| Social Media Management | Managing social media accounts | $600 | $7,200 |
| Print Advertising | Flyers, posters, magazine ads | $300 | $3,600 |
| Website Maintenance | Hosting, domain, updates | $150 | $1,800 |
| Email Marketing | Email campaigns and newsletters | $200 | $2,400 |
| Promotional Events | Special events and promotions | $300 | $3,600 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of production equipment | $600 | $7,200 |
| Uniforms | Staff uniforms and safety gear | $250 | $3,000 |
| Licenses & Permits | Health permits, business licenses, etc. | $150 | $1,800 |
| POS System | Point of Sale software and hardware | $200 | $2,400 |
| Contingency Fund | Emergency repairs and unexpected costs | $500 | $6,000 |
| Staff Training | Training programs and materials | $300 | $3,600 |
Some food brands make 5x more profit than you!
We have studied the strategies of the best food brands in the world. Replicate them now!
What are the biggest expenses for a food brand?
Be mindful of these critical expenses. Here are five major costs every food brand owner needs to consider, along with some tips on how to manage them effectively.
- Raw material and ingredient costsThese can significantly impact your budget. You're dealing with perishables, and prices can vary based on seasonality, supply chain disruptions, and quality. To keep these costs under control, focus on efficient inventory management, negotiate better prices with suppliers, and minimize waste. It's easy to overspend by purchasing too much or opting for premium ingredients that don't provide enough value.
- Labor costsYour team is essential, but paying for their wages, benefits, and training can be costly. This expense is always substantial because you need a dedicated workforce to ensure quality production and smooth operations. You can optimize labor costs by scheduling efficiently, cross-training employees, and monitoring productivity. However, be cautious not to underpay or overwork your staff, as this can lead to high turnover and decreased morale.
- Facility rent and utilitiesPrime manufacturing locations come with high rent, but they can enhance your brand's credibility. Utilities like electricity, gas, and water are necessary but can add up quickly. To optimize these costs, negotiate favorable lease terms and invest in energy-efficient machinery and lighting. Overspending often occurs when you choose a facility that's too large or too luxurious for your needs.
- Marketing and advertisingPromoting your food brand is crucial, but advertising can be expensive, whether it's online ads, social media campaigns, or traditional media. Optimize this expense by focusing on cost-effective methods like the ones we recommend in our guide. Overspending can happen if you invest in elaborate campaigns without a clear return on investment.
- Production equipment and maintenance costsThis includes everything from manufacturing machinery to packaging equipment. These are costly because high-quality equipment and regular maintenance are vital for efficient production and customer satisfaction. Optimize by investing in durable, energy-efficient machinery and maintaining it regularly to avoid expensive breakdowns. You can overspend by going for the latest high-tech gadgets that you don't really need.
How to spend less with your food brand?
Here are practical tips to help you, as a food brand owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Raw Materials | Partner with local suppliers for fresh, seasonal ingredients at lower prices. |
| Labor Costs | Implement a scheduling software to optimize staff hours and reduce overtime. |
| Utilities | Install LED lighting and energy-efficient production equipment. |
| Marketing | Run social media contests for your food brand and collaborate with local influencers for free exposure. |
| Packaging | Use cost-effective, eco-friendly packaging and offer discounts for customers bringing their own containers. |
| Equipment Maintenance | Set up a maintenance log for regular equipment checks and servicing. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider moving to a less expensive location. |
| Insurance | Regularly review insurance policies to ensure they meet current needs and compare rates annually. |
| Distribution | Plan delivery routes to maximize efficiency and reduce fuel costs. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital order systems. |
| Inventory Management | Use inventory management software to track stock levels and reduce spoilage. |
| Quality Control | Implement a quality control system to minimize waste and ensure product consistency. |
| Technology | Invest in multi-functional production appliances and utilize management software for orders and inventory. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals. |
| Transportation | Plan delivery routes to maximize efficiency and reduce fuel costs. |
| Staff Training | Conduct regular in-house training sessions and use free online resources. |
| Waste Management | Implement a waste tracking system to minimize waste and donate excess food. |
| Research and Development | Allocate a budget for R&D to innovate and improve your product offerings. |
| Customer Feedback | Use customer feedback to make informed decisions and improve product quality. |
| Uniforms | Choose durable, easy-to-clean uniforms and offer staff a stipend for maintenance instead of using an external service. |
Copy the tactics of the best food brands in the world!
There are food brands that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a food brand
Yes, some expenses for your food brand are just unnecessary. They don't contribute to increasing revenue or enhancing customer satisfaction.
| Food Brand Expense | Reason It's Useless |
|---|---|
| Luxury Packaging | Overly extravagant packaging doesn't necessarily attract more customers and can be a drain on the budget. |
| Premium Ingredient Sourcing | Unless you are targeting a niche market, most customers are satisfied with high-quality, mid-range ingredients. |
| Excessive Product Variants | A large product line increases inventory costs and leads to more waste. |
| High-End Production Equipment | Top-of-the-line production equipment is not always necessary and can be cost-prohibitive. |
| Traditional Advertising | Traditional paper ads often have a lower return on investment. Don’t include them in the marketing strategy of your food brand. |
| Multiple Packaging Designs | Having various packaging designs increases costs without adding significant value to the customer experience. |
| Excessive Staffing | Overstaffing leads to higher labor costs without necessarily improving production efficiency. |
| Premium Subscription Services | Expensive subscriptions for industry reports or magazines often go unnoticed by customers. |
| Exclusive Ingredients | Using rare ingredients can inflate costs and complicate supply chains. |
| Costly Office Furniture | High-end office furniture is not always appreciated by employees and can be a significant expense. |
| Custom Printed Labels | Personalized labels are a minor detail that most customers overlook, and they can be expensive. |
| Unnecessary Software | Paying for software with features you don’t use is a waste of resources. |
| Premium Water Brands | Most customers are content with filtered tap water, making expensive bottled water unnecessary. |
| Extra Delivery Vehicles | Maintaining a larger fleet than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Overly Frequent Rebranding | Constantly updating branding and packaging can be costly and disrupt operations. |
| Expensive Promotional Items | Elaborate promotional items are often ignored by customers and add to the cost. |
| High-End Office Supplies | Luxury office supplies are prone to damage and expensive to replace, often going unnoticed by employees. |
| Excessive Team Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Label Designs | Frequently redesigning labels is costly and often unnecessary. |
| Unused Promotional Materials | Ordering more promotional items than needed leads to waste and unnecessary expense. Get our marketing budget planner template. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. |
| High-End Catering Equipment | Specialized catering equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your food brand!
Managing a budget for a food brand when funds are tight can feel overwhelming. It's like being trapped in a cycle where any unexpected expense can throw you off balance.
This constant pressure makes it nearly impossible to invest in growth initiatives, leaving you always scrambling to cover costs. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, pinching pennies and barely making ends meet. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on growing your revenue. More income means more flexibility and more resources to invest back into your brand.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of food brands just like yours. Get them now!
Make your food brand more profitable
We have studied the strategies of the best food brands in the world. All their tactics are explained in our pack!
