Investing in food vending

Mr Sylvester Bbaale, a Ugandan living in Europe attends to a customer. Mr Bbaale owns a mobile food vending business in Copenhagen, Denmark. COURTESY PHOTO

What you need to know:

Eating is a necessity of life, and venturing into food business of any kind pays, especially if well handled. Today, Dorothy Nakaweesi writes about establishing a food vending business.

Food is a human necessity with a guaranteed market for food-related business.
Investing in food vending business is, therefore, one of the investment areas where financially able Ugandans, especially those living and working in the diaspora can tap into back home.
According to Mr John Musajjakawa, the Uganda Investment Authority senior investment officer, the market potential is great since hotels and restaurants are expensive and away from work places.
“This will deliver the food at the required time and service providers take away the utensils as soon as a client has finished. This service limits the movement of workers and makes them more productive,” Mr Musajjakawa shared.
For someone to get started with this kind of investment, he says,

one must have saved about $16,450 (Shs59 million). If one serves about 200 people on a daily basis, at the end of the year, the revenue estimates would have accumulated to $93,600 (Shs336 million).
He said: “What is required here is ensuring quality food, fast and reliable services.”

Incentives
Mr Musajjakawa said that government ensures a liberalised free trade economy as long as you operate within the local authorities by-laws.
Experts say to invest in mobile food vending, one should first do research whether this model works, and then identify the target market or potential partners.
It is also necessary to look at the existing infrastructure, including the type of platforms to be used such as Internet, whatsapp, facebook, phone, app and website plus the personnel to run, maintain and improve them.
Mr Neville Igasira, the head of marketing and public relations at Jumia Food, a company that delivers food using on-line marketing, shares: “If a potential investor can get assurance for these then the next big step is the finances needed to start off, build, grow and then build sustainable growth.”
He added that one has to have enough finances to run, maintain and grow the company for at least five years or more before expecting the company to break even.

“Then the last step is availability of the right personnel to run, build and grow the company,” Mr Igasira added.
Mr Salim Uhuru, the proprietor of Uhuru Food chain in Kampala, says that food vending is a profitable venture if those who want to invest in it look out for the good spot and events.
“When I used to vend food I would look out for seasonal events such as sports car rallies and there I would sell,” Mr Uhuru said.
He, however, cautioned that because mobile food vending may not be allowed as per the Kampala Capital City Authority (KCCA) regulations, those investing in it have to take care.
“Right now according to KCCA’s health regulation there are no gazetted places for food vending,” he said.
The Public Health Act provides regulation for food handling in the city. Anybody in the business of food and drinks should have a certificate of operation from KCCA.
Sharing with Prosper Magazine, Mr Peter Kaujju, the spokesperson for KCCA, said: “All workers in such places should be medically fine and certified.”

Production
A variety of food stuffs should form the menu for this venture.
Different foods are prepared through boiling, frying, steaming, baking, or stewing.
Food is then packed in containers that are taken to different service points and some delivered directly to offices or business premises where clients are. Mobile vans or motor bikes can be used to transport the food.
Experts say that the beauty with this business is that all equipment used to start can be locally accessed.
Food supplies too are available throughout the year across the country.

This article’s ideas and more investment concepts can be accessed on the Uganda Investment Authority website.