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 |
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 |
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 |
Qty/d |
Pdn |
Pdn |
Pdn |
Food Items |
Bchs |
- |
- |
59 |
1,546 |
18,550 |
Sauce Items |
Kgs |
- |
- |
65 |
1,687 |
20,240 |
Beverages |
Cts |
- |
- |
28 |
729 |
8,750 |
Spices,
Cooking |
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/ |
Qty/ |
Unit |
Pdn cost/ |
Unit |
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.