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All entrepreneurs aim to own a profitable business and thus, keeping costs to a minimum while selling items at the right prices are a must.

 

Here's how to start making bigger profits

As a food operator, a profitable operation will bring in:

Profitable food operations will:

  • Ensure more return customers
  • Provide a better lifestyle for your family
  • Provide more spare time for your family and religion

 


Formula for a profitable food operation

A. Food cost = Raw material + Seasoning + Ingredients
B. Labour & Overhead cost = 5% x Food cost
C. Profit = 65% x Food cost
D. Price = Food cost + Labour and Overhead cost + Profit

Example – Ayam Masak Lemak Cili Padi (Spicy and Creamy Chicken) for 10 pax:

Chicken
RM11.50
Ingredients
RM  6.45
Seasoning (Knorr Chicken Stock)
RM  0.50
  ---------
  RM18.45

A. Food cost = RM18.45
B. Labour & Overhead cost = RM0.92 (A x 5%)
C. Profit = RM12 (A x 65%)
D. Price = RM31.37 (A + B + C)
E. Price per dish = RM3.13 (D / 12)

 

Food substitutes

To ease your food cost and shorten duration of food preparation, consider using modern scratch products that Unilever Food Solutions provides. They are a good substitute for ingredients that might be difficult to source or ingredients that are subject to price fluctuations depending on the season.

For example, instead of ordering kilos and kilos of limes, why not try Knorr Lime Powder? It helps you prepare lime-based dishes without the hassle of squeezing! It also produces less waste and provides you with a consistent lime taste in every dish.

Or instead of spending countless hours peeling and cleaning potatoes, why not use Knorr Mashed Potato? It’s made with 99% real German potatoes that you can prepare in only 5 minutes!