Food business is big business and across the value chain, there is huge money one can make from it, if the owner understands how it works and where produce and ingredients can be gotten at the cheapest rate.
Local dishes and the market for it vary from location and where the market thrives.
In the bustling streets of Ayobo, Lagos, Cafey Catering Services and Finger Foods has been serving up delicious Nigerian dishes for 5 years.
Founded by Funmilola Ogundipe, the restaurant’s passion for cooking and commitment to excellent customer service has made it a beloved spot and talk of the town in the community.
Business Capital
According to a thriving food business owner in outskirts of Lagos, Mrs Keji Amope, running a local food business takes a lot of patience, manpower and meager resources, with a minimum initial capital of N100, 000 depending on the location. One can make as much as N40,000 daily.
Amoke Oge Restaurant in Lagos is a beloved spot for locals and visitors alike. The restaurant’s owner, Mrs. Amoke, who has been in operation for over seven years, said her inspiration for opening Amoke Oge came from her love for Nigerian cuisine and her desire to share it with others. I wanted to bring the flavors and warmth of Nigerian hospitality to the community, she explained.
Local food business owner in Maryland, Mrs Obalanse whose shop in an interview with our correspondent, said, a seed capital of N1.5 million was raised through three investors after a proposal was written. Mrs Amoke said, she started her business with 200,000 Naira, “We’re committed to sharing the flavors and traditions of Nigerian cuisine with our customers,”
Challenges
In every business, there are challenges and they must be overcome for attaining business success. Amoke Oge stated that, she faced challenges such as inconsistent power supply and competition from other restaurants. But we’re determined to overcome these challenges and continue serving the best Nigerian cuisine in town, Mrs. Amoke says with a smile.
CEO of Obalanse Foods said, the challenges she faced are issues of theft of food stuffs, money generated from sales and others but surmounted it. On raising the seed capital, Obalanse said, “Loan repayment to investors became a burden until it was cleared with family support. Limited space and poor ventilation created challenges, forcing outdoor cooking. Staffing also posed problems, with theft, high turnover, and trained workers leaving to start their own shops.
“Growth came through different avenues like corporate contracts. Certifications in food safety and hygiene were pursued to maintain such contracts.
“Kitchen staff is paid above minimum wage, given accommodation and food, and allowed weekly rest. Theft and recipe copying remain issues, though measures are being introduced to reduce losses.”
Raw Materials
According to Funmilola, “We source our local dish ingredients from local markets. We bulk buy our produce from various local markets which makes for seamless preparation of the dishes.” This approach not only ensures the freshness and quality of their ingredients but also supports local farmers and vendors.”
Another local food vendor, Mrs. Amoke said, ‘we source our ingredients from local farmers and suppliers to ensure that every dish is fresh and authentic.’
Location
In food business like other major businesses, location is key. The food vendor prioritizing in local dishes must have its place of business in a place with visibility. Mrs Obalanse stated that location place a role in accessing her customers. Her shop located at 1, Ijaola Street, Onigbongbo, Maryland, Lagos and another at 3, Ajegunle Street, Onigbongbo in Maryland, is an open place and has attracted several customers both from corporate world and from individuals.
Staff Strength
With a team of dedicated staff, Amoke Oge is committed to serving the best Nigerian cuisine in town. “We’re passionate about what we do, and we’re committed to making our customers happy,” Amoke says.
With a team of 10 dedicated staff, Cafey Catering Services and Finger Foods is a testament to the power of passion and hard work. As Funmilola says, “We’re not just serving food, we’re serving love.”
ROI / Profit
Mrs Obalanse started operations in July 2018 and within a year, the owner who had previously engaged in catering, soup delivery, and online food sales, she was able to raise the seed capital of N1.5 million and refund it to the investors.
According to our correspondent who observed the daily business dealings, she makes a rough amount of N300, 000 daily.
The business, which began with local delicacies including Amala, Abula, Ewedu, Ofada rice, and pounded yam, has customers from different place in the neighbourhood of Maryland and Ikeja with an impressive turnout.
Obalanse now relies on referrals from existing customers and online presence for new patronage. Company contracts and catering services remain the mainstay of the business.
Enabling Environment
As the restaurant looks to the future, Funmilola hopes for government support in the form of training programmes for restaurant staff and grants to help small businesses like hers grow and thrive.
Mrs Amoke believes that government support in the form of subsidies for local farmers and artisans would help her business grow. ‘We also need training programmes for restaurant staff to improve service delivery,’ she advocated.
