Introduction
This proposal is production and mobile vending of food. About 200 covers would be produced daily. The Project costs are US $ 16,450 and estimated revenues stand at US $93,600 per year. Market potential is great since hotels and restaurants are expensive and away from work places. This will deliver the food at the required time and take away the utensils soon. This service limits the movement of workers and makes them more productive.
Production, Capacity and Technology
A variety of food stuffs would form the menu for this venture. Different foods are prepared, cooked by boiling, frying, steaming, baking, stewing. This is then packed in containers that are taken to different service points and some delivered directly to offices or business premises. Mobile vans or motor bikes can be used to transport the food.
Capital Investment Requirement in US $
| Item | Units | Qty | Price | Total |
| Distribution vans | No | 2 | 7,000 | 14,000 |
| cooking pans | No | 10 | 30 | 300 |
| Warmers | No | 10 | 38 | 380 |
| Plates | No | 150 | 2 | 300 |
| Glasses | No | 150 | 0.8 | 120 |
| Cutlery | No | 200 | 1 | 200 |
| Dish washer, wipers, trays, serviettes, stuck buckets | No | 1 | 1,150 | 1,150 |
| TC of Machinery & Tools | 16,450 |
| Cost Item | Units | Unit cost | Qty/ day | Pdn cost/ day | Pdn cost/ mth | Pdn cost/ yr |
| Direct Costs | ||||||
| Food stuffs (rice, posho, potatoes, cassava and bananas). | Kgms | 2 | 30 | 60 | 1,560 | 18,720 |
| Cooking oil | ltres | 2 | 1 | 1.5 | 39 | 468 |
| sauces (meat, chicken,gnuts, beans, greens, peas, etc) | Kgms | 5 | 25 | 50 | 1,300 | 15,600 |
| Spices, onions, tomatoes | Kgms | 2 | 5 | 10 | 260 | 3,120 |
| Drinks | crates | 1 | 10 | 10 | 260 | 3,120 |
| Sub-total | 131.5 | 3,419 | 41,028 | |||
| General Costs (Overheads) | ||||||
| Labour | 600 | 7,200 | ||||
| Selling & distribution | 100 | 1200 | ||||
| Utilities (Water, power) | 70 | 840 | ||||
| Rent | 100 | 1,200 | ||||
| Miscellaneous expenses | 50 | 600 | ||||
| Depreciation | 260 | 3,120 | ||||
| Sub-total | 1,180 | 14,160 | ||||
| Total Operating Costs | 4,599 | 55,188 | ||||
- Production costs assumed 312 days per year with daily capacity of 200 Covers.
- Depreciation (fixed asset write off) assumes 4 year life of assets written off at 25% per year for all assets.
- Direct costs include materials, supplies and all other costs that directly go into production of a product
- A production month is assumed to have 26 days.
- Currency used is US Dollars.
Market Analysis
Food is a human necessity and therefore the market for this business is guaranteed. What is required here is ensuring quality Project product costs and Price structure food, fast and reliable services.
Source of Equipment and Materials:
All equipment is locally available. Food stuffs are available throughout the year.
Profitability Analysis in US $
Government:
Government ensures a liberalized free trade economy as long as you operate within the local authorities by-laws.
| Item | Qty/ day | Qty/ year | @ | Pdn cost/yr | UPx | TR |
| Food | 200 | 62,400 | 1 | 55,188 | 1.5 | 93,600 |
| Profitability Item | Per day | Per month | Per year |
|---|---|---|---|
| Revenue | 300 | 7,800 | 93,600 |
| Less: Production and operating costs | 176.8846 | 4,599 | 55,188 |
| Profit | 123 | 3,201 | 38,412 |
