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
s

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
Cost$

Prod
Cost/yr$

Unit
price

T/rev

Cup
cakes

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