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Compedium of Diaspora opportunities

FOOD VENDING BUSINESS IN UGANDA

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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. 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.

 

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