 Hey guys, my name is Wilson and today we're going to be going over the top five most profitable business ideas in 2020. Last year we did this video and it was super popular, which is the reason why we're doubling down and cutting right to the chase and telling you the top five most profitable. And they are bubble tea joints, ramen joints, delivery only restaurants, food trucks and plant based restaurants. There you go. Those who cannot wait and finish the whole video, these are the ideas that you can run with. But for those of you guys that want to know the pros, the cons, the nuances of how do you actually be able to take advantage of this phenomenon in 2020, please continue watching throughout the whole video because I'm going to be sharing with you all the research that I've done and as a return, I really appreciate if you can just smash the like button. That's the only thing that I ask for, otherwise let's dive right in. The number one most profitable business idea in 2020 is still a bubble tea joint. It is because it is still super, super popular. I think this thing has become just a phenomenon and a habit for people to take on. For those of you that do not know what bubble tea is, bubble tea is basically an Asian dessert drink with tea based with tapioca on the bottom, something that's very chewy and it has written a huge, huge wave. Even today in 2020, it is still super, super popular and it's evolving like crazy. Now, having said that, if you're not in a location or a city that has high Asian demographic that likes and enjoy this product, then that's probably not a place where you should be opening this and this probably is not as applicable to you when you can skip on to the next one. However, if you are considering if you're actually situated in an Asian dense community that has bubble tea as part of the offering or as a staple item, then this is still a very profitable business idea out there. Now, on the same note, the pros of having a bubble tea joint is the low barrier to enter and the low investment. Why is it low investment? It is because the equipment that is needed is bare to nothing compared to a full scale restaurant. All you need is shaker, a served of a Spencer, an ice machine and a cooler and you're good to go. Bubble tea is super easy to make versus let's say a full scale restaurant that requires a stove and oven and a head of scale fans, all these crazy things. And in turn, you would attract a lot more legalities that you need to deal with, a lot more strict food safety requirements that you need to fulfill and that itself oftentimes takes a lot more investment, a lot more time to build and that's the reason why having a bubble tea shop is just that much more popular because the investment is much lower, the ability to create one is a lot easier as well. Now, the third pros of creating a bubble tea joint is the fact that it's just super easy to make. The quality assurance is so easy versus a full scale restaurant because all you need is to have a recipe, a recipe of putting powder in the drink, milk powder, flavor powder, syrup, mix it for 30 seconds and you're good to go. A lot of times it is so easy to make. Anyone can come into place to make this drink and the product would be equally as good if they follow the formula versus someone that has a recipe that needs to cook up a pasta or chicken or whatever the case may be. It just, there's just more variables to it and it just makes the quality much more difficult to predict and much more difficult to sustain and maintain. Bubble tea joints, the quality assurance just is that much easier. Now, on the same pro, it becomes easier for us to hire talent because anyone can come in and do their job equally as good as the next high schooler. So a lot of times in a food and beverage environment, talent is the one and most difficult thing to overcome and that is the reason why by far I think bubble tea joints are still one of the most profitable, one of the most easiest to create in terms of business models out there in 2020. And last but not least, another pro for bubble tea joint is the fact that the turnover is just so easy for this joint and this model to create because for you to create a drink is just super simple, probably 30 seconds per drink and after you create the drink, people can grab and go. You're not worried about people squatting in your place and not being able to fulfill them and if your place has high demand, it becomes so easy for you to be able to churn and create that volume. And to satisfy that, I actually have friends who are able to make more than a thousand bubble teas in any single day and in turn, they're able to generate tons and tons of profit for this specific model. Oh, guys, I totally forgot to talk about this. Cogs is also one of the major points and the major pros of running a bubble tea joint because the Cogs, which is the cost of good souls, is much lower than, let's say, running a full scale restaurant. The Cogs probably around 20 to 25 percent is what we're looking at. So for any time we have a bubble tea, the cost of creating that is probably around a dollar and we are retelling it for six dollars. So a little bit lower than 20 percent versus someone that is creating, let's say a pasta or a chicken salad or whatever the case may be, the cost of good souls is substantially higher. On the same note, operating a bubble tea shop and maintaining the Cogs is so much easier because everything is portioned out properly to the sizing, which in turns becomes a lot more efficient. So there's less spoilage and less areas for people to either steal from you or less area of where the Cogs goes missing. Whereas, let's say if you're running a restaurant, it's a lot easier for your chicken to go expired, for your chicken to be someone to be selling your chicken now or like your staff going out there and eating all your chicken and all these things that can go wrong, which in turn brings up your cost of good souls. A lot of times I see restaurant Cogs at 30 to 35 percent, which in turn becomes your profit. The better you're able to maintain your Cogs, the better, more profit you can put in your pocket. And this is talking from experience because at 720 Suites, we sell bubble tea as well. And the reason why we still sell bubble tea, it is because it is still one of the most profitable business models out there in 2020. Now, after all the regular bubble tea, there are tons of cons of this business model. First of all, it is super, super competitive, okay? Me walking down our street in Vancouver, there's always gonna be more bubble tea shop than 7-11s out there. It is a fact and it has become one of the staple items in Vancouver. What does that mean? That means competition is just furious. People have so much different options that they can choose from, so you better be good at what you're serving. Now, with any profitable business models, there's always gonna be super high in competition. So be aware of whether this opportunity still exists within your area. If, for example, you still see one or two bubble tea shops around your area and they're always, always packed, then that's probably an area where there can be room for another bubble tea joint, okay? Now, the second cons of running a bubble tea joint is the low ticket item, okay? It is very, very low ticket item. What does that mean? Low ticket item means that you need to run the volume game. You need to sell a ton in order for your math to make sense in order for your business model to make sense because if you don't sell enough, your rent percentage and your rent or your labor percentage would be taking up majority of the cost, okay? Whereas if you can run the volume game, your rent and your labor would substantially go down in terms of percentage-wise and in turn, you're gonna be able to really see the effect and the efficiency of running a model like this, okay? Because in a bubble tea environment, at most, you're only selling one or two bubble teas at what? $6 a drink. Whereas, let's say in a full-scale restaurant, anyone that goes in can go for a ticket price of $50, $60, and in turn, you make more money from less people in those restaurant environment, whereas for a bubble tea joint, you're making less money per person. What does that mean? You require a lot more people to come through the doors and that itself, you need to make sure that there's high demand for this product before you go into this business model. So all in all, bubble tea concept is still super profitable, but you require it to be a lot more competitive moving forward. As an example, 720 sweets, we are always innovating with the product that we're serving because you need to be able to carve out a specific niche even within the bubble tea industry right now. Some people go for brown sugar milk, some people would go for best taro, some people would go for the best milk tea, best tapioca. So if you wanna be able to succeed in this model, you definitely need to find something that you're really good at and to have super high quality. Long gone are the days that you can just mix powder and milk and serve people. And that's the reason why at 720 sweets, we just go for super innovative quality items that we can serve people. And in turn, we see a lot of success by doing that. If you guys are looking for more opportunities for the bubble tea niche, feel free to leave me in the comment section below. I would recommend you a few different franchises, which I think has great quality and great product that you may be able to bring to your city. So all in all, it is still a very profitable business idea out there. Nonetheless, be very, very careful whether you wanna choose this business model to go ahead with because competition is super furious and what does that mean? Moving forward, people are going for more quality drinks. You cannot just feed people powder and sugar and expect them to come back. You need to feed them good quality tea-based items with good quality pearls and tapioca. And if you're looking for more information, definitely hit me up. I can recommend a few different bubble tea joints that I think are doing exceptionally well and has a good process that has good ingredients. And I think like going into a franchise model and buying into people's franchise and people's recipe is still a very profitable idea out there. So leave me a comment section below if you want to know more about my recommendation. Nonetheless, let's jump into the second most profitable business idea in 2020. The second most profitable business idea in 2020 are ramen joints. Ramen joints are still super, super popular as become one of the most, I guess, up and coming food staple item out there. All the places, different places that I've been traveling to ramen is picking up in popularity in very, very rapid pace. And what does that mean? That means that there's a lot more opportunity for you to be able to take advantage of this phenomenon. Ramen joints, super high in popularity. Now on something that is an advantage over a bubble tea joint is that ramen joints have much higher in ticket price. And what does that mean? That means that when people go into a ramen joint, each ramen is $15 to $20. And in turn, they can also order an api, either gyoza, chicken karage, and they can also order desserts, and they can also order a drink. And in turn, an average ticket value, we're talking about anywhere from $20 to $30 versus a $6 drink that bubble tea has. And what does that mean? That means that with ramen joints, they have much more opportunity and much more margins for error and margins for, let's say, spending into marketing costs. And in turn, if, and when you can run a ramen joint with the same popularity and the same amount of traffic going into your joint, your profitability would go up substantially higher as well. Another pro for running a ramen joint is the talent required. The talent required is very, very different from running a full-scale restaurant because a lot of ramen joints, they are actually franchises. And I would highly recommend any of you guys watching if you want to jump into this opportunity to go through franchises because the soul, the heart of where a ramen joint is, is the broth. And it is something that is very, very difficult to perfect, which is the reason why you would always, always, or I would highly recommend you to go with a franchise because they already have perfected the broth. They already have done all the R&D. All you have to do is follow the process, follow the recipe, and you're good to go. And what does that mean? That means that it's so much easier for you to hire people to follow these process as opposed to, let's say, any of the restaurants out there. And a very special thing about ramen joints is they're etiquette, okay? Every time I go to Japan, I go there. There's no reservation. You need to stand outside, line up, and when it's your turn, you have to order one ramen at the very minimum, okay? So if you're taking up a seat, you have to order. This etiquette and this cuisine is not meant to be shared. It's not meant for you to be able to spend hours at this place to socialize. No, it's not like that. You go in, you finish your meal, and you go. Average time at a ramen shop is anywhere from 15 minutes to 25 minutes, and they expect you to finish, and they expect you to be out of there within half an hour. And this is a very, very special etiquette for ramen joints that no other cuisines have expectation for you. And people that enjoy ramen, they understand this etiquette and which in turn, what does that mean? It means much more higher turnover for this business model. And which is the reason why I love this model. Our friends who are making three to $4 million in an 800 square feet place in Vancouver, which is insane. And what that means is that they're just always constantly churning out customers, churning out customers, and just on the go, on the go, super highly efficient. So if you are asking me, I'm gonna tell you, the second most profitable business idea in 2020, what is it? They're ramen joints. Now after raving all about ramen joints, I know there are tons of cons as well. First up, the investment is substantially higher than a bubble tea joint in comparison, whereas it all obviously is so lower than a full-scale restaurant, but you still need to invest in the proper stove and actually hooded fans and all these full-scale restaurant items, right? But nonetheless, the investment itself might not be suitable for everyone, so it requires much more higher in budget, okay? And another cons of running a ramen joint is a lot of people that can get into the ramen business, they have to buy franchises because this is a very niche and very, very specific item. And what does that mean? You need to pay an upfront franchise cost, you need to pay ongoing royalties, but with that, it comes with their support, so this might not be a model that's suitable for everyone. Nonetheless, it is still a super profitable idea out there. And last but not least, another con is that the labor that is required to run a ramen joint is still, I would say, a second tier of talent that is required over bubble tea joints. Bubble tea joints, you require people, anyone can come in and run a bubble tea joint as long as they form a lot, whereas the next step up, I would say that's a ramen joint. People need to be a little bit more skillful in creation and creating the items because there's a broth, a little bit more variable in place. Nonetheless, this is still a very, very profitable idea out there in 2020. The third most profitable business idea in 2020 are delivery-only restaurants, AKA known as ghost restaurants, virtual restaurants, cloud kitchen, whatever the case may be. These models are basically restaurants with no physical storefront. We're talking about only working out of a commercial kitchen and people are commissioning out and working out with third-party delivery apps such as skipped dishes, Grubhub, Postmates, Uber Eats, all these different delivery services to distribute their meals. This is a very, I guess like new business model that is like gaining tons of steam. Even the ex-CEO of Uber, Travis, has raised more than $400 million, creating their own cloud kitchen to be able to service this type of business model. We're talking about Stevie Ioki creating their own pizza brand using this model as well. Food delivery service as an industry is expected to be more than $70 billion in 2022. We're talking about an industry that is gonna be picking up tons of steam and this is still, we're talking about the forefront of this whole model and nonetheless, this is the reason why I'm super, super excited to share this model with you. This is the next most profitable business idea and we're gonna dive right into the pros of running this model. Now the pros of running this model, there's just so many pros. You know what, at the end of the day, you don't need to go through the huge investments of buying your own equipment, to go through all the licensing, to go through the food safety requirements, to understand how the nuances of building out your own kitchen, you don't need to understand none of those. All you need is to go through this kitchen and it's already all provided for you. You don't need to get your own food license. You don't need the major investment that you're gonna be able to throw upfront just so you can build a restaurant. All you require is to be able to rent a spot in the commercial kitchen that can service this type of needs. That itself is a huge pro and versus someone that needs to fork out hundreds of thousands of dollars to create their own storefront, to create their own equipment, to create their own restaurant. This is a huge, huge plus because all you have to do is just rent a kitchen and you're good to go. And the second pro of running a delivery-only service restaurant is that you avoid all the headaches with staffing, the front of house staffing. All you need to worry about is production. All you need to worry about is maintaining your operation and the quality of your food service and your food product. That itself is a huge, huge pro. If you are someone that is super skillful and loves just cooking, you don't need to worry about running a brick and mortar store. You don't want to worry about bringing people in through the doors. All you have to worry about is your recipe. This is the model for you because if you have quality item, if you have quality product, all you have to do is create the product, put it on these third-party delivery app services and it that itself. If the quality is good enough, you're gonna be able to attract tons of people to always come in order from you. You don't need to worry about running marketing, getting people through the doors. Or let's say, for example, it's a rainy day. How are you gonna be worrying? You're gonna be thinking that, oh, you know what, I can't pay rent anymore. All you have to do is focus on your craft and you're good to go. And another pro of delivery-only restaurant. This is a very specific pro for this type of business model is that you're not married to your business, okay? You don't need to sign a five-year, 10-year lease into a physical location, which at the end of the day, you might hate, okay? All you have to do is sign a lease with a cloud kitchen and you're good to go. That might be a commitment of roughly a year to two years and that itself allows you to be less stressful. You're not married to it by life. And in turn, allows you to have much more opportunity to try out different concepts until that one that really hits home to your customers. So this is a huge, huge pro specifically for delivery-only restaurant models. Now, the cons of this super crazy good model is the fact that your restaurant has no visibility. You cannot bank and you have much less creativity that you can play because you're relying on third-party apps and delivery services. On the same note of actually relying so heavily on these apps is the fact that all your eggs is in one basket, all your eggs is in this one basket and you cannot diversify because they are the lifeline of your business. Food delivery apps now controls your destiny. And in turn, if any given day they change your policy, they increase their rates or they decide to favor specific brands, then you are in trouble and then you have no more leverage because they control your lifeline. They're holding you by the neck, which is something that I do not like at all. And in turn, how can you actually combat that? And how can you actually leverage this model? You can actually run this by for a year, two years to gain some momentum to prove your concept, to be able to gain your subscription base, your returning customers. And in turn, that allows you to be able to have the confidence and the base to create a storefront. And that allows you to be able to be much less risky in this venture of yours because you have now proven yourself to be super successful and to be a quality item. And last but not least, you do not control your customers. All your customers belong to food delivery apps. This is something that I really, really do not like because this doesn't give me the freedom to reach my customers. This doesn't give me the freedom to be able to own my customers because once again, we're at the mercy of these food delivery service apps and that's something that I really don't like. But nonetheless, the pros of it is that far outweighs the cons. And in turn, if for example, like I said, if you've proven to be successful, then you can go out and create your own restaurant. And this is the third most profitable business ideas out there in 2020. The fourth most profitable business idea in 2020 are food trucks. Food trucks are definitely making a comeback. Food trucks, I would say right now is definitely gaining a lot of steam because people are supporting local small businesses. They're getting into back into the trend of these specialty items and they love it and they have no problem going outside, waiting in line in the rain for a good food truck taco. This is definitely coming and getting a comeback. And a lot of pros with this is the fact that you can actually go to your customers versus a ghost kitchen, which is delivery only service. You can actually go to your customers, you can go to different locations in town who has an appetite for your food offering. Another pro of food truck is the fact that the investment is substantially lower than a brick and mortar store. The investment is somewhere around 100 to $200,000 and in turn you actually own this asset that you can sell in the future versus you being strapped down into a physical location to five-year lease, 10-year lease and that itself is a huge commitment that not a lot of people like. This itself becomes a very, very good business model that fits a very specific type of people that can drive around or not honed and they're not holed down by this physical location. And this is the reason why it has made the list of the top four most profitable business ideas in 2020. Oh, and an added tip with food trucks is the fact that they can run to a lot of different events and usually at events, they are the most popular item. That because that's the only choice that they have and in turn, they often food truck owners see a certain spike and this becomes part of their business model that they can go to different events because those are guaranteed traffic and in turn guaranteed business for them. Now on the flip side, the con is the fact that you're always on the road. It's very, very difficult to be on the road. It is very exhausting because you don't have a physical location which you can just go in and clock in and clock out because you're always chasing after that business. On another note, the con is the fact that weather might be a concern. If the weather in your area is always raining, then it becomes a half a year operation. So in Vancouver, food trucks are super popular during the summertime, whereas the winter time, right now it's snowing outside and the food trucks are all out of commission and that in turn limits the amount of days that you can be in operation and the quality and the service that you can provide to your customers. People might think that you're not as relevant and that itself is a con of this business model. Nonetheless, this business model is only attractive to very certain type of people that might, for example, want to try out different business ideas. In Vancouver, we have a ton of food trucks that is out there creating an experience for people, testing out different formulas, testing out whether there's a demand for their offering and in turn, they turn into a business. They turn into a storefront and that's usually how the model works. We have three different restaurants off the top of my mind that went from having a food truck to getting into a solid brick and mortar location. So if you don't not have that much investment and if you want to limit the amount of risk you have, this might be a profitable business idea that you can consider in 2020. Oh, and something that I totally forgot and thank you, Jason, for reminding me are the licenses. Licenses are usually super, super confusing and within any city and any jurisdictions, they have only certain amount of permits that they allow people to operate in. You oftentimes need to go and apply for them and oftentimes there are quotas that you need to apply for which at the end of the day makes it super confusing and in turn turns a lot of people away from the food truck business. So for example, within our Vancouver city, there's only 30 different food truck licenses that they're offering and if we want to be able to get into the business, we cannot actually apply for it anymore because they already shut them down. All you can do is buy an existing food truck license off those people. Now, how are you gonna be able to hunt down the 30 different food truck and ask them whether they have and wanting to sell? That's a very, very difficult process already. So nonetheless, that's a really, really big con is that it's not something that you can apply for and get right away. There are quotas and there are city permits that you need to go through the hoops in getting. The fifth most profitable business idea in 2020 are plant-based vegan restaurants, okay? We're talking about a plant-based restaurant that five, 10 years ago, no one has even thought of creating because there's just not much of a demand for it. It's just not the cool thing to talk about. People are less health-conscious about what they put in their body but in today's age, it is definitely getting a ton of steam. A lot of celebrities are jumping on the train right now. People like Beyonce, people like Brad Pitt, they're really, really vocal in terms of their support in plant-based diet. And even for like ice cream, plant-based ice cream has increased more than 25% year over year. And we can actually see this movement gaining so much steam when actually just last year alone, all the fast food chains have plant-based options. They have vegetarian options like Beyond Meat. They have Meat Substitute, which is crazy and there's something that is unheard of even just three, four years ago. So in today's age, I know it's in its infancy still, very, very infancy. But if you have the passion to actually love what you love the substitutes, love plant-based stuff and really being an advocate of this industry, then this is still a very, very profitable idea that you can actually go in during the beginnings and to be able to reap the rewards from years from today because people who are in this street, people who are passionate about it are gonna love what you have to offer. On the con side, this is still very, very beginning as I was saying that you're not gonna be able to hit the masses. You're not gonna be able to hit the mainstreams. However, once again, if you're passionate about this, then it is completely fine. It is a very, very good model that you can actually be able to benefit from because people who love it, they've rave about it and the supply for this is still very, very low. So if you're thinking about creating a plant-based restaurant, now's the time to do that because there's just not much demand for, not much supply of it and the demand is growing, leaps and bounds every single year. So there you go, the top five most profitable idea in 2020. We're talking about bubble tea joints, ramen joints, food trucks, delivery-only restaurants and last but not least, the plant-based restaurants. These are the most profitable ideas out there amongst all the research that we have done and at the end of the day, it's not suitable for everyone. You really need to see if it is suitable and it has demand. At the end of the day, it's about the demand in your area. If there's no demand, there's no need to create something like this and it is also not for every single one. You need to understand how your personal circumstances are like at this moment to choose the right vehicle to get you there. Nonetheless, I really, really hope you have enjoyed this video. The only thing I can ever ask for is for you to smash the like button. Otherwise, comment below and let me know if you guys have any questions. I'll see you guys in the next video.