Business

Start Home-made food Business in Pakistan

Homemade foods (such as pizza and cakes) have grown in popularity in recent years due to the widespread opinion that they offer good taste, quality, and hygiene. So in this post, we will discuss how you can start a home-made food business in Pakistan. We will discuss how much money you need to start this business from home. I will try to give you the contacts as well. This post is part of my business feasibility series. I have written about starting a bakery business. and all this information has been taken from the Ministry of Commerce.

Breif Description of Home-made food business

Following parameters are considered while writing this post

Technology

This article discusses homemade Food Products (Pizza & cakes). Its pizza procedure involves dough preparation, topping ingredient preparation, topping application, and baking. Mixing the batter, filling the molds, baking, cooling, and eventually stripping, decorating, and packing cakes are all part of the process. We will consider the entire process flow as manual, it requires expert personnel to use specialized mixing and baking equipment.

If you are a chef or know how to cook, the above section is for you. The next and most important part is sales. You will need an interactive website to take orders online. A beautiful catalog for cakes and pizza should be available on the website.

Location

As we are considering the home-made food business so location will be your home and you can deliver whereever you want. however if ideal location will be residential areas where delivery will be easy and human resources available

Products

The company suggests making pizza and cakes (pound, dryfruit, plain, fruit, and cream cakes) and marketing them through media exposure and website development. Chicken Tikka, Chicken Fajita, Chicken Tandoori, B.B.Q pizza, grilled chicken, vegetable feast, Hawaiian, Italiano pizza, and other pizza varieties are offered. Whereas the cakes department would make pound cake, cheese cake, various dry fruit cakes, simple & fruits cakes, and fresh cream cakes in various flavors, among other items.

Target Market

The products’ target market is local, i.e. people residing in Quetta, Karachi, Lahore, KPK, and Islamabad, who may order their product by phone or online through its website and have it delivered to their location.

Estimated Manpower

As this is big venue for indivisual we need to hire a team for that purpose. i am considering total of 12 personals for this Business

Basic Production Process Flow

we will discuss basic process flow of major items here. recipes will not be shared. so let’s start

Pizza

  1. Making the dough
    Making the dough is the first step in the procedure. A high-quality pizza dough is essential for producing a light and delicious pizza. A bread maker can help you save time while producing a handmade crust. Consider adding a few herbs, such as basil or rosemary, and garlic to the dough to boost the flavor.
  2. Making the Crust
    Pre-baking the pizza crust is a major step that many people overlook when cooking pizza. Baking your crust for six minutes or so before adding toppings in a preheated oven to 425F prevents the dreaded “doughy crust” that is often the downfall of an otherwise excellent homemade pizza.
  3. Prepare the Sauce and Topping Ingredients
    Sauces are an important component of pizza making, and they can also be created at home rather than purchasing costly prepackaged sauces. However, the decision is made by the you. The sauce is then drizzled over the pizza top. We can sprinkle cheese at this point if the recipe calls for it.
    The topping components are then filled in on top of the sauce and distributed uniformly for uniform texture and flavor.
  4. Preparing the pizza for baking
    The pizza is baked for about 15 minutes at 450°F (230°C), or until the cheese is bubbling. The pan or stone is removed from the oven with the peel. Pizza should be sit for 5 minutes before cutting into slices

Cake

There are hundreds of Cake recipe; some are bread-like, some are rich and ornate, and many are centuries old. Most commercial cakes are created with a batter that contains wheat flour, oil, eggs, sugar, milk powder, water, flavorings, preservatives like sulphur dioxide, and rising agents like sodium carbonate. The components are mixed together using either the sugar batter or the flour batter procedures. The butter and sugar are mixed together in the sugar batter method, followed by the liquid and then the flour. The fat is combined with the flour before being progressively mixed with the eggs and sugar in the flour batter method. The “all-in-one” method, which combines all components except the fruit at the same time, is becoming more popular.

  1. Mixing the Batter
    A commercial mixer is used to combine the batter. After combining all of the ingredients, the mixer continues to beat the batter for another 10 minutes to trap air and allow the cake to rise appropriately. The air, in conjunction with the added raising agent, causes the cake to expand during the baking process. After mixing is finished, the batter is poured into a form and baked.
  2. Mould Filling
    A little layer of oil is sprayed on the baking mold to prevent the batter from sticking to it during the baking process. The mold is then filled with batter based on its shape, weight, and level.
  3. Baking
    When the molds are full, they are placed in an automated oven. The oven’s temperature and humidity are carefully controlled to achieve the greatest results for the cake type, ensuring that it cooks evenly and thoroughly. The crust is sprayed with water to prevent the cake’s surface from splitting during the initial rising process.
  4. Cooling Down
    The cake must be properly and carefully cooled down after baking to avoid collapse. As the cake cools, moisture is released into the air, which is collected by powerful suction blowers in the kitchen, preventing condensation from forming.
  5. Stripping, decoration, and packaging
    When the cake is entirely cool, it is removed from the mold and packaged so that it may be transported. Condensation will form and damage the product if the cake is not entirely cooled before packaging. Commercial cakes are often covered in plastic, with the addition of a cardboard tray. Cream cakes are decorated with flavored cream and other ingredients after being removed from their molds and packed in boxes or kept open and stored in the refrigerator to rest before shipment.

Consideration of Operational Capacities

The project’s yearly installed production capacity is 118,109 cakes and pizza, with a capacity of 67,200 pizzas and 50,909 cakes. Chicken Tikka, Chicken Fajita, Chicken Tandoori, B.B.Q pizza, grilled chicken, vegetable feast, Hawaiian, and Italiano pizza are among the pizza options. Whereas the cakes area would make pound cake, cheese cake, various dry fruit cakes, simple & fruits cakes, and fresh cream cakes in various flavors, among other things. Project capacity utilization is projected to be 70% in the first year and increases at a rate of 5% per year, with a limit of 95%.

Costing for Business

Space Requirements

The proposed Homemade Food Product will require 224 square feet of cooking space and 288 square feet of management office space. The cost of remodeling / modification is anticipated to be Rs. 1,500 per sqft & Rs. 250 per sqft, respectively, taking into account various amenities such as shelving, processing tables, lighting, exhaust, open space covering, and so on. Details on space requirements and building costs are provided below.

DescriptionEstimated Area (Sqft)Unit Cost (Rs.)Total Cost (Rs.)
Kitchen Renovation / Modification2241,500336,000
Management Office Renovation / Modification28825072,000
Total  408,000

Machinery & Equipment Requirement

S.NoDescriptionQuantityUnit cost in Rs.Total
1Pizza convection Oven1500,000500,000
2Proofing oven/cabinets251,500103,000
3Flour / batter Mixer132,96032,960
4Spice grinder1154,500154,500
5Spice Blender150,00050,000
6cooking pans (ss304)82,00016,000
7Flour shifter22,0004,000
8Pizza Baking Pans502,500125,000
9Cake Baking Pans501,33966,950
10Food Blender115,00015,000
11Spices Grinder110,00010,000
12Cake Convection Oven1500,000500,000
13Egg beater130,00030,000
14Misc cake & pizza utensils  1  65,000  65,000
15Refrigerators260,000120,000
16Misc Tools & Eqpt1100,000100,000
17Website development1100,000100,000
18Tables for Production25,00010,000
19Freezer140,00040,000
20Weighing Scales25,00010,000
21Microwave Oven215,00030,000
 Total  2,082,410

Furniture Requirement

S.NoDescriptionQtyUnit costTotal
1Chairs & Other Furniture125,00025,000
2Air Conditioner175,00075,000
3Sign Board115,00015,000
4Electric wiring & Lightings125,00025,000
5UPS & Batteries (Set)350,000150,000
6Exhaust fans25,00010,000
7Misc  5,000
 Total  305,000

Office Equipment

DescriptionQuantityUnit Cost (Rs.)Total Cost (Rs.)
Laptop150,00050,000
Printer110,00010,000
Billing machine115,00015,000
Telephone Sets21,5003,000
Misc Equipment115,00015,000
Total  93,000

Human Resource Requirement

In order to manage this venture below is my estimation

DescriptionNo. of EmployeesMonthly Salary per person (Rs.)
Owner/Manager150,000
Main Chef240,000
Sales/Delivery man313,000
Helpers515,000
Sweepers113,000
Total12131,000

Utilities and other Costs

The cost of energy, gas, and water is an important cost that the enterprise must bear. The electricity bill is anticipated to be roughly Rs. 50,000 per month, the gas bill is estimated to be Rs. 42,001 per month, and the water bill is estimated to be Rs. 2,000 per month. Furthermore, promotional costs are expected to be 0.5% of total marketing costs for homemade food goods.

Revenue of Rs. 11,666 per month, which may include web marketing, printing banners, brochures, and cable ads, among other things

Total Project Cost

Table 3: Project Cost

DescriptionAmount Rs.
Capital Cost
Land
Building/Infrastructure408,000
Machinery & Equipment2,082,410
Furniture & Fixture305,000
*Office Vehicles196,950
Office Equipment93,000
Pre-operating Cost146,708
Training cost
Total Capital Cost3,232,068
Working Capital
Raw Material Inventory854,357
Upfront building rent311,040
Up-front Insurance Payment50,968
Cash216,895
Total Working Capital1,433,261
Total Project Cost4,665,261

Contact Details

Name of SupplierAddressPhonewebsite
 No. 201, Floor 2,0086-371-http://www.okma
 Henan Free Fashion55158837chinery.cn
Henan BrimfulHotel) 400m West To  
Shine CommerceCrossing Of Garden0086- 
And Trade Co.,Rd. And Guoji Road,15803863877 
Ltd.Jinshui District,  
 Zhengzhou, Henan,  
 China (Mainland)  
Dastgir Engineering Co.12-A Lahore road, Saddar cantt. Lahore Pakistan.+92-301- 8420186 +9230184201http://pk10444400 76.fm.alibaba.co m/contactinfo.htm
  86l

Revenue Generation

Based on the capacity utilization of 70% for production of pizza & cakes respectively, sales revenue during the first year of operations is estimated as under;

Revenue Generation – Year 1

DescriptionProduction Quantity SoldAvg. Sales price/unitSales Revenue (Rs.)
Cakes (lbs)71,27322716,147,436
Pizza (units)47,04025211,850,096
Total  27,997,532

Assumptions

Operating Cost Assumptions

DescriptionDetails
Sales Price Growth Rate10 % per year
Production Capacity Utilization Growth Rate5 % per year
COGS growth rate10 % per year
Wage growth rate10 % per year
Operational cost growth rate10 % per year
Travelling expenseRs. 32,463 per month
Communication expenseRs. 2,000 per month
Office expenses (stationary, entertainment, janitorial services, etc.)Rs. 2,000 per month
Promotional expense0.5% of revenue

Production Cost

DescriptionDetails
Cost of goods sold 1 (cake)Rs. 164 / lbs of cake
Cost of goods sold 2 (pizza)Rs. 187 / pizza
Cost of goods sold (packaging)10
COGS growth rate10%
Production Capacity (Pizza & Cakes)118,109
Production Capacity utilization in Y170%
Production capacity in Yr 1. (Pizza & Cakes)82,676
Maximum Capacity95%
Revenue Assumptions 
DescriptionDetails
Sales price per unit in Rs. (cake)Rs. 453
Sales price per unit in Rs. (pizza)Rs. 252
Sales price growth rate10%
Total unit sales (No. of Pizza & Cakes)82,676
Total revenue (Rs.)27,997,532

Cheap Option less than 10,000 PKR

In case you don’t have this much budget, consider the cheaper option. You can use used equipment or smaller equipment to start. below is an excelent vidoe which will guide you for cheaper option

Conclusion

In conclusion you can start home-food business in Pakistan as cheap as 10,000PKR and the standard investment required is around 45-50 lakhs which will return to you in 3 years time. i hope you have liked this post. Please do comment for your advices

2 thoughts on “Start Home-made food Business in Pakistan

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