Do I need an IFSI for my home food business?

Hemant Thakkar - Feb 6, 2023

Home kitchen, home food entrepreneurs have often asked whether they need to signup with an IFSI.

To IFSI or Not To IFSI*

*(With apologies to the bard)

Short Answer

Technically, there is not legal or regulatory requirement for signing up with an IFSI. You can run your #homefood business any way you see fit within the regulatory framework. But ...

Long Answer

There are good reasons to signup with one or more IFSIs.

  1. The IFSI serves as a marketing and distribution channel. Even the large multi-billion dollar businesses push their products and services through their marketing and distribution channels. Mutliple channels allows a business to reach wide audience of customers.

  2. If an IFSI does not charge a fixed upfront fees and only collects a cut (commission) from the order brought in by the IFSI, then there is no reason to no use it as a channel. In this case, the channel is basically free till it brings in revenue for it and then it gets paid from that revenue. It is a no-brainer.

  3. Most IFSIs (perhaps all) are non-exclusive. So far as you avoid any exclusive contract with an IFSI that prevents you from working with other IFSIs and the fee structure is as in #2 above, it is in a home chef's interest to signup with as many as available. Think of it as multiple funnels that can possibly bring customers to you. In any case, your cost till an order comes in is zero.

Our Take

We believe that home kitchen businesses should not shy away from taking a critical look at using IFSIs. As shown above, it could be a zero cost marketing and distribution channel that can funnel in customers. What is there not to like?

Note: First published on Home Food Community forum here.