Covid drives surge in food start-ups

Thousands of entrepreneurs have started food collection and delivery businesses during the coronavirus pandemic driven in large parts by financial insecurity.

Over 9,000 takeaway food shops and mobile food stands were established during 2020, according to research published by The Accountancy Partnership. 

Over 600 new food businesses were created by Britons on furlough, while 1,450 new registrations were made by those made redundant, an increase of a third from the previous year.

Around 1,270 businesses, representing 14% of new food collection and delivery registrations, were the result of a need for an extra source of income, according to the research.

Almost half (46%) of entrepreneurs who started businesses during covid said they had always wanted to be self-employed or own a business.

“Our research shows that many lockdown entrepreneurs saw creating their own takeaway food businesses as their only option after being made redundant or facing other financial troubles, but the statistic of those fulfilling longer-term dreams of owning a business is hugely encouraging,” said Lee Murphy, managing director of The Accountancy Partnership.

More than a fifth (21%) of pandemic-born businesses started their life as side projects, a 40% increase from 2019.

Facebook and Instagram are popular trading platforms for entrepreneurs starting up new businesses, along with dedicated shopping platforms such as Spotify and Etsy.

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