ESTABLISHING A CUPCAKE MANUFACTURING PLANT
Introduction
Cupcakes are small sweet individual
sized sponge cakes which are often decorated with icing, frosting and other
decorations. The demand for cupcakes is very high all over the country
especially in Bakeries
and Confectionaries as well as Ice cream producers. It is estimated that the initial
investment requirements for the first month of operation is USD 5,187.5.
Production Capacity
The production capacity is estimated at
1,000 Cupcakes per day.
Process
Cupcakes can be baked directly in a patty tin which is similar but smaller than
a muffin tin. They are most often baked in paper cases - either plain white
cases or coloured decorated cases. Basic Cupcake Mix
The basic mixture for a cupcake recipe is the same as for many other large
sponge cake recipes with the basic mixture consisting of:
50g/2oz self-raising flour
50g/2oz Caster sugar (superfine)
50g/2oz Butter or margarine (shortening)
1 Egg
N.B: These quantities are enough to make about 10 very small cupcakes, about
5cm/2-inches in diameter and can be doubled or trebled as required
Tools & Equipment
The Essential tools and equipment required include: Measuring Cups, Measuring Spoons, Electric Mixer or Hand Mixer, Spatula, Sheet Pans or Cupcake Pans and Oven Thermometer.
Market Analysis
The demand for cupcakes is spread all over the country especially in urban centres, Schools, Hospitals and Hotels. This sector has registered a huge number of investors almost in all Bakeries and Confectionaries.
Project Costs
The Project Costs are summarized in
the Tables below:
1. Capital Investment
|
Item |
Unit |
Qty |
Unit Cost$ |
Amount $ |
|
Delivery Cycles |
No. |
2 |
1,000 |
2,000 |
|
Mixer |
No. |
1 |
250 |
250 |
|
Cup cake Pans |
No. |
10 |
25 |
250 |
|
Gas Cooker |
No. |
1 |
500 |
500 |
|
Spatula |
No. |
1 |
20 |
20 |
|
Thermometer |
No. |
1 |
15 |
15 |
|
Measuring Spoon |
No. |
1 |
5 |
5 |
|
Measuring Cup |
No. |
1 |
5 |
5 |
|
Total Amount |
3,045 |
2. Operating Costs$
|
item |
unit |
Unit cost |
Qty/day |
Prod cost/day |
Prod cost/month |
Prod cost/year |
|
Direct costs |
|
|
|
|
|
|
|
Flour |
Kgs |
0.75 |
500 |
375 |
9,750 |
117,000 |
|
Margarine |
Kgs |
3.5 |
5 |
18 |
455 |
5,460 |
|
Baking Powder |
Kgs |
1.2 |
2 |
2.4 |
62 |
749 |
|
Eggs |
Trays |
2.5 |
4 |
10 |
260 |
3,120 |
|
Sugar |
Kgs |
1.1 |
40 |
44 |
1,144 |
13,728 |
|
Sub total |
449 |
11,671 |
40,057 |
|||
|
General Costs (Over heads) |
||||||
|
Rent |
200 |
2,400 |
||||
|
Packaging |
260 |
3,120 |
||||
|
Labour |
300 |
3,600 |
||||
|
Utilities (Power &Water) |
200 |
2,400 |
||||
|
Repair & Maintenance |
500 |
6,000 |
||||
|
Gas |
500 |
6,000 |
||||
|
Fuel |
200 |
2,400 |
||||
|
Depreciation(Asset write off) Expenses |
63.44 |
761 |
||||
|
Sub - total |
2,223 |
26,681 |
||||
|
Total Operating Costs |
13,895 |
166,738 |
3. Project Product Costs & Price Structure
|
Item |
Qty/day |
Qty/yr |
Unit |
Prod |
Unit |
T/rev |
|
Cup |
1000 |
312,000 |
0.53 |
166,738 |
0.6 |
187,200 |
4. Profitability Analysis
|
Item |
Per day |
Per Month |
Per Year |
|
Revenue |
600 |
15,600 |
187,200 |
|
Less: Production & Operating Costs |
449 |
13,895 |
166,738 |
|
Profit |
151 |
1,705 |
20,462 |