Borrowing from friends enabled him start food delivery business

Mr George Kalibala Ssendawula (L) attends to a custmer at an event. Below left: Ssendawula (2R), the owner of food delivering company named My Kafunda, cuts fish fillet. The company prepares and delivers food. Photos BY Edgar R. Batte.

What you need to know:

With Shs20 million borrowed from friends and family, he started a catering company—My Kafunda— which takes food to people’s doorsteps either at home or at work.

On a bright Sunday mid-morning, people make their way to what has become a popular event on Kampala’s social calendar. Couples, friends, families and entertainers fill the back-end of Uganda Museum, the venue for Blankets and Wines, a top crowd puller.

A man in his mid-20s smiles while inviting any passer-by to his tent with a tempting aroma of food. The tent labeled My Kafunda belongs to George Kalibala Ssendawula, the proprietor of the food company providing food to revellers at the camp-like outing as they dine and take drinks together.

Developing the business idea
Ssendawula’s dream of starting a food company started while he was at the University of Bradford in the United Kingdom, where he pursued a degree in politics, economics and securities studies. Pegging his hopes on Economics, he felt that starting a business is what would give him mileage in his career.

That is how he decided to start a catering company—My Kafunda, which takes food to people’s doorsteps; either at home or at work.
“I got the idea from a company called Okado which enables people order and buy their food and groceries, which are delivered to them. It is as efficient as buying from a supermarket. It is cheaper and more convenient. You get hand-picked and selected products for your household and it is affordable,” says Ssendawula whose offices are located in Kisugu where he pays rent of Shs1.5 million per month.

At the time, he did not have capital to start an online food delivering company yet he was confident about the company’s name. He explains that the name My Kafunda was an easy one because it cuts across many Uganda dialects considering that there is no national language.

“If you go to the north they know what a kafunda is and so for the west, central and south. It is a generic name that is home grown. I would have called my company a sophisticated French name but I am Ugandan. It is time to promote our own,” Ssendawula explains.
The young entrepreneur who hails from a family which cherishes hard work and modesty began the food company in January last year.

Getting capital from family and friends
He needed capital and he did not look to the banks. He instead borrowed Shs20 million from friends and family because they were willing to lend him money at a lower interest and better pay-back terms.
“I used part of the money to buy equipment from ‘The Tamales’ (a company that sells a range of equipment) who have been very good to us. Ninety per cent of the money went towards buying equipment like fryers, kitchen ware and confectionery equipment,” Ssendawula says.

To be unique from other mobile food service providers, he says they endeavour to keep their cooking as healthy as possible. Most of his food is grilled, just like health-conscious people prefer it, save for fries.
He employs 15 people.

“I have three departments in my company; a kitchen department, a front desk department which comprises of people who serve and a department where people assist in carrying, loading and cleaning stuff,” he adds.
Ssendawula spends Shs3 million on salaries where he pays himself Shs150,000.
He says, “I am the least paid in the company. My chef earns Shs800,000. When business improves, I will earn my salary increase,” the professional food vendor says.

His aspirations
His bigger dream is to grow his events, food and online company to make continental food affordable and fresh for people who would like to enjoy it. He says he would like to create a competitive edge over the current leaders in the hospitality industry where food is expensive to the average middle-income earner. “I cost half the price that these places cost yet it is the same product and quality and the service is efficient,” he explains, adding, “We are moving towards offering a fully-fledged online service where you can order and we deliver it to your office. This will be on top of offering outside catering for events, which we are already doing.”

Taget market
Running business has proven fruitful for Ssendawula. “I am hard working and committed to what I do and I feel what I do is better than having a desk job. Some of our clients include Roofings Limited in Lubowa where we deliver food on a daily basis; from Monday to Sunday. We do lunch and supper at Shs3, 000 per plate of local food,” he reveals.

The price of fast foods at My Kafunda ranges from Shs8,000 to Shs16,000.
“I am also depending on deliveries to bring in cash. We have a truck that delivers food daily to different locations in Kampala,” the entrepreneur adds.

“We have a catchment area of Standard Chartered Bank, Stanbic Bank, Barclays Bank, MTN Towers especially in the Central Business District. We are targeting people who want good food and are ready to pay for it. We offer them healthy options too, like salads, boiled rice, fruits, among other foods,” the 24-year-old explains.

Ssendawula interfaces with local suppliers and farmers. “We buy our chicken from a local farm called Hiltop in Jinja, we buy vegetables from Tengo Farm owned by a gentleman called Ssuna Kagga who is also my friend,” he discloses about his business suppliers.

In a week, the economist makes an average of Shs3 million, part of which goes towards clearing his loan from friends and family which he is paying back at an interest of 10 per cent. In a month, about Shs2 million is paid to reduce the loan. Part of the savings he has made have enabled him purchase a mobile truck at about Shs30 million.

Maximise online platforms
Part of his wish list is for Ugandans to venture into online platforms and transact business because they offer fall-back positions. “If there is something wrong with the food that has been delivered, you can always come back to us. This makes us different from the rest of the market,” he says.