ESTABLISHING AWAY SIDE RESTAURANT


Introduction
There is high demand for food and beverages in Uganda. Any attempt in establishing a modern restaurant can prove to be a profitable business especially when it’s located in a good area. The establishment of this project requires a total fixed cost of 21,710US$, and operating costs of 94,428US$, generating revenue
of 984US$ in the first year of operation.
Production Capacity, Technology &Process
The production process involves preparation of food, beverages and snacks.
Investment Scale, Capital Requirements & Equipment
The investment scale basically depends on the desired objectives of the entrepreneur. However, the following equipment can be used in the project establishment.
Capital Investment Requirements in US$

Capital investment item

units

Qty

unit
cost

Total

Fridges

No

3

375

1,125

Cutlery

Sets

60

20

1,200

Furniture

No

-

-

4,500

Cooking Equipments

No

-

500

2,500

Music System, TV & Computer

No

3

500

1,500

Blenders, food warmers, juice
mixers &flasks

No

6

150

900

Delivery Van

No

1

7,000

7,000

Bouquet set

Sets

2

350

700

Gas and water tanks

No

-

-

400

Decoration materials empty crates

No

-

-

935

Standby generator

No

1

750

750

Other equipments

-

-

200


Total

21,710




1) Production costs assumed 312 days per year with daily capacity of selling 130plates of food, 150 bottles of beverages &80 cups of tea.
2) Depreciation (fixed asset 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.
4) Total monthly days assumed are 26-days.
5) The valuation currency used is United States Dollars
Production and Operating Costs
(a)Direct Materials, Supplies and Costs in US$

Cost Item

Units

Unit
cost

Qty/d
ay

Pdn
cost/
day

Pdn
cost/
mth

Pdn
cost/
yr

Food Items

Bchs

-

-

59

1,546

18,550

Sauce Items

Kgs

-

-

65

1,687

20,240

Beverages

Cts

-

-

28

729

8,750

Spices, Cooking
oil, Sugar etc

Kgs

-

-

31

795

9,540

Other materials

-

6

150

1,800



Sub-total

-

189

4,907

58,880



General Costs (Overheads)







Labour

1,000

12,000





Utilities

600

7,200





Gas & Charcoal

160

1,920





Uniforms

38

450





Cleaning & Toiletries

113

1,350





Rent

500

6,000





Miscellaneous expenses

100

1,200





Depreciation

452

5,428





Sub-total

2,962

35,548





Total Operating Costs

7,869

94,428





.
Market Analysis
The market readily exists as food products are consumed by every body & combined with outside catering services, the business can be a viable venture.
Project Product Costs and Price Structure

Item

Qty/
day

Qty/
yr

Unit
Cost

Pdn cost/
yr

Unit
price

T/rev

Foods

130

40,560

1.55

62,952

2

81,120

Beverages

150

46,800

0.34

15,738

0.5

23,400

Tea

80

24,960

0.63

15,738

0.9

22,464

Total

112,320

94,428

126,984




Profitability Analysis Table

Profitability Item

Per Day

Per Month

Per Year

Revenue

407

10,582

126,984

Less:Pdn&Operating Costs

303

7,869

94,428

Profit

104

2,713

32,556

Facilities and Incentives
Generally There Are No Set Government Incentives On Restaurants But Prosperity For All Programs Can Be An Intervention Program.