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Author Topic: confused on pursuing a foodcart bussiness in malls  (Read 54856 times)

che_21

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confused on pursuing a foodcart bussiness in malls
« on: September 20, 2006, 12:02:55 pm »

    hi guys patulong nman po suggestion lang po, me my friend have been scouting around malls looking for a good location for a foodcart bussiness. We had a chance to talk to some of the sales person there and they told us more or less their estimated daiy sales in terms of the lowest and the highest. we even ask for the monthly rental and all others sorts of questions that we think is important to ask. knowing all this things and reading some of other people suggestion on other topic posted here, i get confused to see na they say its hard to really profit from a foodcart bussiness inside malls and and to think na mas magiging less pa pag may partner ka pa. and ive also witness na mas marami ngayong foodcart bussiness na hindi naman talaga kilala whos also trying their fate inside malls. pls enlighten me kasi  its no joke to invest in a bussiness na ilalagay sa malls ,kaya lang naisip kasi naman mas okey talaga ang markret dun.

butangera

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Re: confused on pursuing a foodcart bussiness in malls
« Reply #1 on: September 20, 2006, 12:57:46 pm »
u already asked around and what did they say? u read what posters say here... u still want to try then go, try it! ull learn better if u try out for yourself.

am just gonna give u a sample comp*tation... something that i came up just now...

RENT                               P 20,000
STAFF (2)                           16,000
SUPPLIES                            30,000

TOTAL FIXED EXPENSES         66,000

P66,000/30 days = P2,200/day <--- this is how much sales u need for u to have break-even

since foodcart yan, so cheap lang ung items na sell mo... let's just say P20 per order

P2,200/P20 = 110 orders per day

110/10 hours of operations = 11 orders per hour

u think it is easy to sell 11 of whatever per hour to reach break-even? break-even pa lang ang pinaguusapan natin huh!

sure, it's a mall... have you tried to sit inside the food court and just watch how each food cart is faring? how many of all mall goers do you think buy from food carts? of the food carts, which has more customers?

my POV:

get out of the mall! look for a better location outside of the mall... mall rental will kill you, for sure UNLESS you have assurance that your product will sell like hotcakes! now, kung g@g@ya ka lang sa iba then you'll sure lose your money lang.

lalay_pazaway

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Re: confused on pursuing a foodcart bussiness in malls
« Reply #2 on: September 20, 2006, 03:26:17 pm »
try ninyo outside like schools, tiange( 150 per day!) or hospitals....

clark

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Re: confused on pursuing a foodcart bussiness in malls
« Reply #3 on: September 20, 2006, 09:51:21 pm »
just want to share you my experience...

we were supposed to franchise a food cart business and submitted our letter of intent for sm. if i remember it correctly, in less than 2 months, we got a call from sm that our request was approved for sm fairview. upon checking the location, we noticed that there wasn't much traffic. we then approached our franchisor and told us that in order for sm to approve the food cart, there should be some extensions to the cart that would cost P23,000 additional (at cost pa ito). furthermore, we weren't allowed to sell beverages and could only sell sm bonus water. in the end, we had to decline sm's approval.

ang sabi ng iba, swerte daw kami kasi in less than 2 months may sagot na yung sm. ang katotohanan, kami ang kaunaunahang maglalagay ng ganong food cart sa sm. sabi din ng iba, kunin na lang daw namin at gawin parang stepping stone. in a matter of months, kapag may umalis sa prime location, magfile kaagad ng letter of intent sa sm para malipat sa mas magandang pwest.

at katulad sa computation ni butangera, halos nasa P2200 ang breakeven point namin. actually sa case namin isasali mo pa nga yung delivery charge ng franchisor.

of course, may cases na malaki ang kinikita ng food cart pero katulad nga ng nabanggit, dapat cheaper, better,  unique, at in demand yung product mo.

you could still try kasi sa sm naman 6 months yung contract lang. if you can accept that the business might fail at malulugi ka, you may have lost 6 months of your finances, but you certainly have gained experience and knowledge in order for you to plan your next strategy.

just my 2 cents worth...

hope this helps

butangera

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Re: confused on pursuing a foodcart bussiness in malls
« Reply #4 on: September 20, 2006, 10:10:05 pm »
that's why for food carts, i dont recommend that you put them in malls coz the overhead expenses will kill you.

just like what lalay said, locate them in schools, tiangge, hospitals, etc.

clark

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Re: confused on pursuing a foodcart bussiness in malls
« Reply #5 on: September 20, 2006, 10:20:50 pm »
dun nga pala sa lagro sa may quirino hiwaysa tapat ng fatima university meron don mga food stalls at baka mas ok. yung sa labas kasi may chowking at nung kinausap namin, nahahatak yung benta nila from that hillside food stalls.

you just might want to check it out.

Rica Gaerlan

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Re: confused on pursuing a foodcart bussiness in malls
« Reply #6 on: September 21, 2006, 11:24:13 am »
I am quite in the same position as Che. I am planning to put up a food cart business.  My plan is, first, I thought since di ko pa tested ang market, I'd put it up my cart sa schools or groceries.  Kapag inaccept ng market ang product then I'll go to the malls.  Kaso umpisa pa lang, the schools have not been very responsive kaya medyo nakakafrustrate.  How do you go about approaching schools ba that would almost make it a sure shot deal? 

One other questions is, do I look for a place first before I buy the equipment and the cart or is it the other way around?  Initially, I thought I'd look first for a space to sell then I'll buy the equipment and the cart kapag meron na akong nakuha na pwesto.  Kaso, aside from the schools being unresponsive some of the groceries that I've approached are asking for a brochure/picture of the product and a picture of the booth together with the letter of intent.  I am thinking baka kaya the schools are not responsive is because I don't have these pictures when I submit the letter of intent.  Kung bibili naman ako ng gamit na, e what if I can't find a place to rent.

Another alternative I've thought of is kung wala akong makuhang space, I'd join bazaars or I'd offer this food cart to children's parties and tie up with party favor stores.  At least, wala akong rentang babayaran kaya lang exposure to my product is limited.  Do you think it's a good idea to offer food cart rentals to parties?

Any advice you can offer I'll really appreciate.

Rica

che_21

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Re: confused on pursuing a foodcart bussiness in malls
« Reply #7 on: September 21, 2006, 07:51:00 pm »

  thanks guys for all of your suggestions, i get your point and there still something in me na honestly is still quite confused, like katulad ng nasbi ko bakit napapansin ko na marami narin foodcart bussiness ngayon na hindi naman franchise yung kinuha nila meaning they just started their own brand, and they still try their luck in malls. aside from that may nakausap kaming mismo na may ari ng isang foodcart na sabi naman niya okey din naman daw. may time na okey may time na sakto lng. with rica alam mo nakakalito nga yung case mo, kasi i also realized na baka nga kailangan mo nga talaga ng picture, pero pano nga yun kung hindi ka naman makkuha ng pwesto pero bilib parin ako saiyo kc mas creative ka sa paghahanap ng market mo, i never thought before of the idea na pwedeng ioofer ang foodcart in parties pero i do believe na possible naman cguro yun. saying all this things i hope other posters here could enlighten us more. thanks again.

butangera

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Re: confused on pursuing a foodcart bussiness in malls
« Reply #8 on: September 21, 2006, 10:07:08 pm »
wag mo muna target ang supermarkets or schools... kung ayaw mo maginvest this early sa cart kasi wala ka pang pwesto... hanap ka muna pwesto... ung mataong lugar... pag may nakita ka na then tsaka ka kuha ng cart... at pag napaunlad mo un eh di tsaka ka kumuha sa supermarkets at schools...

mahirap pag for rent kasi mas malamang kesa sa hinde eh nakatengga din yang cart mo... sayang! natutulog ang pera mo lang.

I am quite in the same position as Che. I am planning to put up a food cart business.  My plan is, first, I thought since di ko pa tested ang market, I'd put it up my cart sa schools or groceries.  Kapag inaccept ng market ang product then I'll go to the malls.  Kaso umpisa pa lang, the schools have not been very responsive kaya medyo nakakafrustrate.  How do you go about approaching schools ba that would almost make it a sure shot deal? 

One other questions is, do I look for a place first before I buy the equipment and the cart or is it the other way around?  Initially, I thought I'd look first for a space to sell then I'll buy the equipment and the cart kapag meron na akong nakuha na pwesto.  Kaso, aside from the schools being unresponsive some of the groceries that I've approached are asking for a brochure/picture of the product and a picture of the booth together with the letter of intent.  I am thinking baka kaya the schools are not responsive is because I don't have these pictures when I submit the letter of intent.  Kung bibili naman ako ng gamit na, e what if I can't find a place to rent.

Another alternative I've thought of is kung wala akong makuhang space, I'd join bazaars or I'd offer this food cart to children's parties and tie up with party favor stores.  At least, wala akong rentang babayaran kaya lang exposure to my product is limited.  Do you think it's a good idea to offer food cart rentals to parties?

Any advice you can offer I'll really appreciate.

Rica

butangera

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Re: confused on pursuing a foodcart bussiness in malls
« Reply #9 on: September 21, 2006, 10:14:53 pm »
hinde ka nalilito... nilalabanan mo ung FACTs na nakuha mo sa pagaaral ng MGA foodcarts sa malls... nilalabanan mo ung mga nabasa mo sa forum...

eto sabi mo: "and they still try their luck in malls"... LUCK! do you think na ang biz ay nakabase sa luck?! di ba ang biz bago mo iput up ay pinagiisipan ng husto?! kung kaya mo "ipatalo" ang P66,000 per month then go on...

as ive said, you can still try... balikan mo 'tong thread na 'to after a few months para masabi mo ang experience mo sa pagput up ng food cart sa malls...


  thanks guys for all of your suggestions, i get your point and there still something in me na honestly is still quite confused, like katulad ng nasbi ko bakit napapansin ko na marami narin foodcart bussiness ngayon na hindi naman franchise yung kinuha nila meaning they just started their own brand, and they still try their luck in malls. aside from that may nakausap kaming mismo na may ari ng isang foodcart na sabi naman niya okey din naman daw. may time na okey may time na sakto lng. with rica alam mo nakakalito nga yung case mo, kasi i also realized na baka nga kailangan mo nga talaga ng picture, pero pano nga yun kung hindi ka naman makkuha ng pwesto pero bilib parin ako saiyo kc mas creative ka sa paghahanap ng market mo, i never thought before of the idea na pwedeng ioofer ang foodcart in parties pero i do believe na possible naman cguro yun. saying all this things i hope other posters here could enlighten us more. thanks again.
« Last Edit: September 21, 2006, 10:16:35 pm by butangera »

omd999

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Re: confused on pursuing a foodcart bussiness in malls
« Reply #10 on: January 10, 2007, 02:04:27 pm »
My own experience. I signed up for a 150K franchise for a balut/penoy/kwekkwek/tokneneng business. Mall rent is about 10K a month, 2 crew bale 16K per month silang dalawa. I have made a comprehensive cost-analysis (Excel file, all inridinets, fixed cost and varibale cost, apti 1-2...30 day sales projections) on our first 2 weeks of running. The break even gross sales is PHP2,300 (ball park) -- translates to about 200+ egg product servings per day.

Guess what, the mall has no volume customers. Ang hina ng pasok ng customer sa loob. I guess sa labas ng mall mas malamang mas mataas ang volume ng tao na willing to buy the fod product.  I can only gross PHP1400-1600 per day. I loose between 700 to 900 per day. Multiply to 30 days.. bale I loose 21,000 to 27,000 per month. Hmnn. bad, huh?

Bottomline: Dapt may volume na customer na WILLING to spend on your product. I sell my mura naman, affordable and I make its really clean. OC ako e.

Always make a break-even point analysis and determine kug kaya mo ibenta at the rate na nakuha mo sa computation. NUMBERS don't lie. This is the most scientific estimation that you can get, in addition to field analysis ng surrounding market.

Sa umpisa mahirap mangapa kahit na sinasabihan ka na ng mga may first hand expereince. In the end, yuor own FIRST-HAND experience will be your best and trusted teacher. We can only give insights and share our experiences.

By the way, we temporarily closed (praying) that soon the volume of mall-goers increase.

rumega

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Re: confused on pursuing a foodcart bussiness in malls
« Reply #11 on: January 10, 2007, 05:13:05 pm »
Sa mga offices naman, sa start lang ok, after 2 months the employees get "sawa" of the product. They still opt to buy the usual merienda sold along with the canteen ulam. my product is dimsum. i heard people also say sa school, same scenario.the students get sawa later on.

photoaddict

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Re: confused on pursuing a foodcart bussiness in malls
« Reply #12 on: February 18, 2007, 12:33:37 am »
i also have a cart inside a supermarket. hirap din gumalao. considering that we are operating tj food cart. at first mabenta sya, pero after a month... humina na ng humina. lugi... now, we are negotiating with the supermarket to terminate our contract.

pero i still believe in the cart business. i'll check on new location na mas mura. hopefully, gumanda yun benta ko in new location.

afterburner

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Re: confused on pursuing a foodcart bussiness in malls
« Reply #13 on: February 23, 2007, 04:28:43 pm »
u already asked around and what did they say? u read what posters say here... u still want to try then go, try it! ull learn better if u try out for yourself.

am just gonna give u a sample comp*tation... something that i came up just now...

RENT                               P 20,000
STAFF (2)                           16,000
SUPPLIES                            30,000

TOTAL FIXED EXPENSES         66,000

P66,000/30 days = P2,200/day <--- this is how much sales u need for u to have break-even

since foodcart yan, so cheap lang ung items na sell mo... let's just say P20 per order

P2,200/P20 = 110 orders per day

110/10 hours of operations = 11 orders per hour

u think it is easy to sell 11 of whatever per hour to reach break-even? break-even pa lang ang pinaguusapan natin huh!

sure, it's a mall... have you tried to sit inside the food court and just watch how each food cart is faring? how many of all mall goers do you think buy from food carts? of the food carts, which has more customers?

my POV:

get out of the mall! look for a better location outside of the mall... mall rental will kill you, for sure UNLESS you have assurance that your product will sell like hotcakes! now, kung g@g@ya ka lang sa iba then you'll sure lose your money lang.

wow, thanks! nagka-idea rin ako kung magkano inaabot ng mga stalls/kiosk sa loob ng mall. ang mahal nga talaga. thanks again!

may food stall din kase ako sa tapat ng trike station dito samen. Maraming tao. Sobra. Ang problema. di sila ang market. what i did, tinarget namen yung mga trike drivers. ayun, lumakas ng sila yung mga nagsibili ng produkto. may mga bumibili rin na mga passers-by/pasahero. pero syempre, mas aasahan mo yung mga drivers na arw-araw nandun. binalak ko rin kase sa mall kaso kakapusin talaga ko. ang rent ko sa pwesto ko is 100/day. not bad at all. ngayon, pag hapon, nauubos agad ang mga products. kaya nagsasara na lang. share ko lang po... :)
« Last Edit: February 23, 2007, 04:40:54 pm by afterburner »

GerelRoa

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Re: confused on pursuing a foodcart bussiness in malls
« Reply #14 on: February 25, 2007, 03:56:01 pm »
Hello,

As a rule of thumbs, it is usually not advisable to go to a mall to set-up a food cart on a "franchise", unless the franchisor has a well-known name already. Also, for a franchise, marketing strategy is the responsibility of the franchisor and if the franchisor cannot address the location issue vs the marketing stance, then it is better not to go into it.   Remember: you are doing business to earn, not to make the franchisor earn.

On a typical mall, you will need to have an understanding of the traffic flow of people inside the mall. It is a common misconception that malls means that your business will earn automatically.  Just ask yourself: in the many instances in the mall, did you buy anything from ALL of the stores?   You probably bought most of the things from the same store over and over.

As a general rule, less than 15% of the actual number of people passing through an area actually buys something from a new store.  A site survey usually has to be done to monitor the number of people passing by an area.  Some areas of the mall are more frequented than others and you should keep this in mind always.

When venturing into a mall, it is a good idea to create your own brand over using a "franchise" that is not really a household name.   At least in this way, you carry the same risk, but will enjoy the benefits yourself.  Having a franchise for an unknown brand is usually the same as making others profit for your own efforts.

Cheers!

Gerel

 

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