Rolex, one of the CNN recognised world famous foods is basically a Ugandan Chapati wrapped around a fried egg. Chapati is one of the most sought after snack like foods by all categories of consumers.
Chapati as it is known in Uganda
Making and selling Chapatis is one of the businesses that many find easy to set up due to the low start-up investment costs as well as high demand for the product(s). It is however important to note that while you can run it as a standalone business, it is always wise to have two or three other complementary products alongside it in order to reap maximum benefits. Some of these products are Samosas (sumbusa) and Mandazi that have similar requirements for inputs. What is shared here can be similarly applied to other products like doughnuts.
What infrastructure do you need to effectively run a Chapati business?
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Operating Table. Notice the concealed compartment. It is a pre-requisite when selling food products by the roadside in Kampala.
Operating Table for a Chapati business
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Charcoal Stove
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Saucepans (At least two big ones)
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Frying pan (For preparing the chapati)
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Bench (for customers to sit on while eating)
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Plastic plates (for customers to use when eating)
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Jerrycans (keeping a water reservoir for customers to clean their hands or even wash your utensils)
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Basin (for mixing dough)
Key considerations when setting up the business
This is a basic, easy to set up business. However, one need consider the following issues:
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Business Plan: A basic plan can suffice. It ought to answer a few questions like target market, desired sales targets, long term outlook, product mix (are you dealing in chapati alone or a mixture of products), planned operation approach among others. If you feel encumbered writing it down, at least have some of these issues answered mentally.
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Recipe: For those that know all about Chapati, you definitely can tell the difference between a good and bad one. This usually boils down to recipe and of course workmanship. Considering that there are many chapati sellers especially in the key trading or residential areas, having an attractive recipe will guarantee you return clients.
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Location: In this business, location is paramount. It is essentially a roadside business whose ultimate goal is to prey on the gullibility of people going about their usual routines. You need to make it as convenient as possible for someone to part with that loose change in order to satisfy their hunger pangs. Common locations for chapati stalls are trading places with shops, restaurants and supermarkets; residential neighbourhoods; public transport stages as well as environs of bars.
Notice the strategic roadside corner location of this chapati business
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Raw Materials: Other than the earlier mentioned equipment, recurrent costs go to cooking oil, Wheat flour, baking powder and any other ingredients of your choice. Most of these are readily available in supermarkets and shops. Just make sure you purchase quality and unadulterated products.
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Products: Chapati can be packaged in different ways to form different products. You can offer a plain chapati, Rolex or even a Kikomando (Chapati mixture with beans)
Kikomando, one of the best selling products
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Human Resources: If you do not plan to directly run the business, then you need to hire decent people or a person that will ensure you offer a very tasty product as well as manage customers well. Do not underestimate the kind of person you choose to play this role. They are the face of your business. Structure out a motivating payment structure. As opposed to a fixed salary, a sales oriented approach towards payment is likely to be more enticing.
Some of the factors that attract customers to your chapati stall are;
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A nice recipe
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Good public relations / sales language. The way your staff talk to the customers especially ladies who happen to be the biggest customers is key.
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Smartness. Ensure that you or your staff manning the stall is smart at all times.
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Endeavour to keep the operating area as clean and free of insects like flies.
How can one invest in the Chapati business
One can venture into this business in different ways. Some of those that I have been able to identify are:
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Renting Space. You might be having a shop or premises that are in a strategic location by the roadside. You can simply rent out space to anyone who is interested in setting up a chapati stall and they are in position to pay something commensurate monthly.
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Hiring a Location and erecting key infrastructure. As seen earlier, the operating table can take on different designs as well as abilities. Some people have specialised in identifying customer friendly locations, erecting a shelter as well as the required operating table then renting out the facilities to actual chapati sellers for a daily rate. One of those locations I know of earns the landlord UGX 50,000/= daily!!!!!
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Acquire all the requisite infrastructure and set up a chapati stall. This would imply running the business in its entirety. It might involve you manning the stall directly or hiring an individual that you pay.
What is the sales outlook like?
The location in which I did the research from was in a Kampala suburb called Kyebando. It is not as busy as many of the suburbs I know. However, the sales figures were quite interesting.
One packet of Wheat Flour weighs 2 Kilogammes and on average produces 20 chapatis. The highest selling stall in that area consumes not less than 24 packets daily. The arrangement used is option two where the actual chapati seller hires infrastructure from someone else. He pays a daily rate of UGX 50,000/=. Considering that each plain chapati costs UGX 500/=, this guy should be earning gross revenues of at least UGX 240,000/=. This is exclusive of extra income that comes from Rolex and Kikomando sales.
Something definitely looks quite appealing. Don’t you think so? If I were to go into this business, I would focus on eventually setting up a chain of outlets using investment model II above.
Welcome to the Chapati business. I wish you the best in your endeavours.
James Wire is a Small Business and Technology Consultant based in Kampala, Uganda
Follow @wirejames on Twitter.
Email lunghabo [at] gmail [dot] com
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