BUSINESS IDEA FOR FOOD VENDING

Introduction

This business idea involves preparing different kinds of foodstuffs. The food is prepared and served to people at their work places. The various local dishes prepared include: matooke, groundnuts, beef stew, rice, sweet potatoes, beans, cassava, peas chicken and greens.  The most commonly used method for cooking is using a charcoal stove or a firewood stove. The business idea is premised on production of 130 plates of food per day which translates into 3,380 plates of food per month and 40,560 plates per year. The revenue potential is estimated at US $73,320 per year.

 Production process:

Raw food stuffs are procured from the market and processed through various preparations then cooked using either a charcoal stove or firewood. Various additions can be added through frying the sauce to add flavor.

Market Analysis:

There is ready market for food in workplaces since people do not want to move to eating places outside their workstations. There are many players in this business especially women.

Capital Investment Requirements in US $

Capital investment item Units Qty Unit cost Amount
Chairs and tables No. 300 13 3,900
Charcoal stove (big  size) No. 5 43 215
Table No. 2 10 20
Saucepans No. 10 50 500
Utensils (Plates, cups ,spoons, knives) No. 400 150 60,000
Washbasins No. 4 2 6
Total cost on equipment       64,491

Production and Operating Costs in US $

Cost Item Units Unit cost Qty/ day  Pdn cost / day  Pdn cost/

month

Pdn cost/yr
Charcoal sacks 13 2 25 650 7,800
Matoke Bunches 6 3 18 468 5,616
Beans kg 1.3 3 4 98 1,170
Rice kg 1.2 7 8 209 2,512
Kalo kg 1 4 4 104 1,248
G. nuts kg 1.2 3 3    90 1,076
Meat kg 3 8 20 520 6,240
Peas kg 0.6 2 1 31 374
Greens Bundles 0.5 2 1 26 312
Chicken No. 6 4 24 624 7,488
Salt Grams 0.3 2 1 16 187
Sub-totals   84 2,835 34,024
General costs (overheads)
Utilities (water and power) 100 1,200
Labor 125 1,500
Rent 150 1,800
Miscellaneous costs 50 600
Depreciation (Asset write off) Expenses 1,250 15,000
Sub -total 1,675 20100
Total Operating Costs 4,510 54,124
  1. Production costs assumed 312 days per year with a daily capacity of 130 plates of food.
  2. Depreciation (fixed assets write off) assumes 4 years’ life of assets written off at 25% per year for all assets
  3. Direct costs include materials, supplies and other costs that directly go into production of the product.

Project Product Costs and Prices Structures in US $

Item Qty /day  Qty/yr Unit Cost Pdn cost /yr Unit Price  Total revenue 
Plate of food with chicken 30 9,360 1.33 12,490 2.0 18,720
Plate of food with beef 100 31,200 1.18 36,816 1.8 54,600
Total cost 40,560    73,320 

Profitability Analysis:

Profitability Item Per day Per month Per Year
Revenue 235 6,110 73,320
Less production and operating Costs 173 4,510 54,124
Profits 62 1,600 19,196

Sources of Supply of Raw materials and Equipment:

Raw materials and Equipments are locally available.

Government Incentives:

Uganda is a liberalized economy and trading is quite free as long as you are within the confines of the law.

Research was done by Business Synergies for Uganda Investment Authority SME Department.