Blade, that's true of all business ventures, not just those in the food industry.
Undercapitalization is the major reason businesses fail. The second major cause is lack of management and administrative skills.
Too often somebody is good at the purpose of the business: they like cooking, so open a restaurant; they're talanted woodworkers, so open a cabinet shop, etc. But what they lack, in addition to money, is all the management knowledge that's needed to run a business---no matter what the product may be.
People get so anxious to have their own businesses, though, to be their own bosses, than their critical judgement often goes out the window.
I remember a short-lived magazine aimed at women in the outdoors. Good nitch, with plenty of room to grow. The woman who started it figured she needed $100,000 (which is way too little to start a national publication, btw). But give her her due. A hundred grand needed. She had $8,000 that her husband was saving for a new truck. So, what the h_ll, they figured. Go for it!
To this day I wonder where they thought the additional 92 large was coming from.
They have taken the oath of the brother in blood, in leavened bread and salt. Rudyard Kipling