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 business risk involved is healthy and safety related risks surrounding the manufacturing and processing. 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 $85,800 per year and net profit margin 27%.
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.
Capital Investment Requirements in US $
| Capital investment item | Units | Qty | @ | Amount |
| Chairs and tables | No. | 300 | 14 | 4,200 |
| Charcoal stove (big size) | No. | 5 | 40 | 200 |
| Table | No. | 2 | 20 | 40 |
| Saucepans | No. | 10 | 50 | 500 |
| Utensils (Plates,cups ,spoons, knives) | N0 | 400 | 150 | 60,000 |
| Washbasins | No | 4 | 2 | 6 |
| TC on equipment | 64,946 |
Production and Operating Costs in US $
| Cost Item | Units | @ | Qty/ day | Pdn cost/ day | Pdn cost/ month | Pdn cost/ year |
|---|---|---|---|---|---|---|
| Charcoal | sacks | 10 | 2 | 20 | 520 | 6,240 |
| Matooke | Bunches | 8 | 3 | 24 | 624 | 7,488 |
| Beans | kg | 1.3 | 3 | 3.9 | 101.4 | 1,217 |
| Rice | kg | 1.12 | 7 | 7.84 | 203.84 | 2,446 |
| Kalo | kg | 1 | 4 | 4 | 104 | 1,248 |
| G. nuts | kg | 1.6 | 3 | 4.8 | 124.8 | 1,498 |
| Meat | kg | 4 | 8 | 32 | 832 | 9,984 |
| Peas | kg | 2.4 | 2 | 4.8 | 124.8 | 1497.6 |
| Greens | Bundles | 0.2 | 2 | 0.4 | 10.4 | 124.8 |
| Chicken | No. | 8 | 4 | 32 | 832 | 9,984 |
| Salt | gms | 0.2 | 250 | 50 | 1300 | 15600 |
| Sub-totals | 184 | 4,777 | 57,327 |
General costs(overheads
| Utilities (water and power) | 100 | 1,200 |
|---|---|---|
| Labour | 100 | 1,200 |
| Rent | 100 | 1,200 |
| Miscellaneous costs | 50 | 600 |
| Depreciation(Asset write off) Expenses | 1,000 | 12,000 |
| Sub –total | 1,350 | 16,200 |
| Total Operating Costs | 6,127 | 73,527 |
- 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$
| Item | Qty / day | Qty/yr | @ | Pdn cost /yr | UPx | TR | |
| Plate of food with chicken | 30 | 9,360 | 1.5 | 14,040 | 2.5 | 23,400 | |
| Plate of food with beef | 100 | 31,200 | 1.2 | 37,440 | 2 | 62,400 | |
| TC | 40,560 | 85,800 |
Profitability Analysis
| Profitability Item | Per day | Per month | Per Year |
|---|---|---|---|
| Revenue | 275 | 7,150 | 85,800 |
| Less production and operating Costs | 235.7 | 6,127 | 73,527 |
| Profits | 39.3 | 1,023 | 12,273 |
Market Analysis
The market for this business consists of people who are not able to prepare food because of their commitments at their work place. The food will be vended in different places like workplaces, markets, building sites and bus stages.
Government Facilities and Incentives
Uganda is a liberalized economy and trading is quite free as long as you are within the confines of the law.
