This paper presents the problems facing food firms using information from focus groups of industry executives from New Jersey. The leading problems for food manufacturers are related to regulation, taxation, economic development, and high business costs. For food wholesalers the leading problems are transportation, regulation, labor quality, training and education, and public relations. Food retailers cite litigation and liability, high business costs, regulation, and insurance costs as leading problems. For food service firms, regulation, licensing and permits, labor quality and costs, and high business costs are the most pressing problems. Policy recommendations for improving the business climate are provided.