Pro and Cons of owning a Deli in a Major city?

September 30, 2025

by a searcher from Northeastern University in New York, NY, USA

Hi everyone, I’m exploring the idea of buying a deli and would love to hear insights from this group. What are the biggest risks or challenges of owning a deli, especially for someone without prior food industry experience? What strategies can realistically help increase EBITDA by 20%? What are the main advantages or upsides of owning a deli? Appreciate any thoughts or advice!

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Reply by a professional
from University of Akron in Charlotte, NC, USA

The cons are high... If you have never done it, I would absolutely advise you to not do it. Food service is probably the most challenging business model especially when looking to build a passive income engine. Low pay, low skilled workers who are very transient. Plus, long operational hours. Low margins. High customer quality demands and scrutiny especially in social media. It's a recipe for pain and suffering. Find business models on the opposite end of the spectrum. For me, I like to use the term Operational Viscosity. The more stress and harder to operate and manage, the higher the viscosity. You want businesses that flow freely with less stress and opportunities for failure.

Reply by a professional
from Ohio State University in Westchester County, NY, USA

Revenue: Optimize your process so people can get in and out quickly. Decide on your audience. Are you going to focus on healthy or comfort food. Also, location matters in the city in regards to who you are catering to. Because rents are so high, you are going to need drive volume. Cost: Laser focused on COGS and Labor. See what you can do to drive down food cost. Reduce net payment terms to get better deals, pay your bills on-time, buy in bulk. Keep your ingredient list simple with lots of options. Think about your meals in a quadrant with cost on the y axis and taste on the x axis. You want to focus on meals that taste exceptional and drive retention with low ingredient costs. Give something cheap away like a free cookie.

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