A to Z of F&B

  • Home
  • A to Z of F&B

A to Z of F&B Discover all about the F&B industry

Options for F&B during this covid19 stormRide the storm, don’t get left behindIn times like now, the covid19 pandemic ha...
11/04/2020

Options for F&B during this covid19 storm

Ride the storm, don’t get left behind

In times like now, the covid19 pandemic has crippled much industry across the world. However, food and beverage are considered essential needs. No doubt business is also affected but there are some other methods which you can focus on.

With dine-in banned, delivery and takeaways are your options. Go with food delivery platforms such as Foodpanda or Grabfood as this are the trend now. They collect a significant amount from your sales but their customer traffic is very wide. Consider that their marketing fee. You can do your own delivery as well. Discuss with your staff if they can help since there is no dine-in, your staff are better off doing deliveries. Your own delivery will be a different group of customers from delivery platforms as they only cover a certain distance. You can go further beyond that distance range.

Instead of the usual takeaways, try to create an instant cooking menu. Simple cooking method for those who want freshly prepared without the hassle of going marketing and thinking of a recipe. An example would be a 3 steps menu to cook a dish. This way the customer doesn’t have to worry about food getting cold or late delivery. It can be pre-ordered and kept then cook when it's almost time to serve.

Another option would be to make ingredients for your best-selling dish. Pack it together with simple instructions (not more than 3 steps). This would be good for those who like experimental cooking. Maybe your best-selling dish is fish, they might want to make it chicken, beef, or vegetarian.

Lastly, try giving a huge discount or cashback for takeaways to increase sales. In times like this lower profit is better than no profit. Good luck and stay safe.

Anything that you would like to share with us? Do leave a comment below.

Thank you for reading.

Good Profit in F&B, true or false?Remember this phrase from the previous post?“It is a very good profitable business. 1 ...
06/04/2020

Good Profit in F&B, true or false?

Remember this phrase from the previous post?

“It is a very good profitable business. 1 plate of fried egg might cost Rm 1 but that roadside stall is selling at Rm 10. Then you will be thinking “Wow, can profit 10 fold”. 1 fish cost Rm 20 but I paid Rm 80 at the restaurant. 1 can of Coke which you can buy from Tesco / 7 eleven Rm 2 is sold at Rm 8 in a cafe.”

If the margin is that good, everyone would have invested in F&B and none would have closed shop. The truth is there is a hidden cost yet to be added. Rental, salary, utilities, material cost, etc. When you add all this cost, you would realize that the margin isn’t that great.

It would be good to plan ahead. List down your budget, how much are you going to invest? Keep in mind rental deposit (unless you own the premise), renovation, furniture, equipment and also running cash. Sales do not come immediately at the beginning so you would need to keep some healthy cash flow to sustain. Don’t start and plan later. It would be disastrous if you are stuck halfway without the budget to continue. So plan first and adjust your budget accordingly.

So now that you know, do you still want to step into this business? No doubt, with proper planning, it’s profitable but don’t think of it as fast & easy. Anything that you would like to share with us? Do leave a comment below.

Thank you for reading.

Why do you want to run an F&B outlet?Why do you want to get involved in the Food & Beverage industry? The industry is ve...
06/04/2020

Why do you want to run an F&B outlet?

Why do you want to get involved in the Food & Beverage industry? The industry is very wide. You can be running an outlet (restaurant, cafe, bistro, hawker stall, etc), be a food supplier, food processing factory, consultant, etc…the list goes on but the most commonly seen involvement is running an outlet.

So let’s be more specific, Why do you want to run an F&B outlet? Each individual or corporation has different perspectives. There are no right or wrong. We will share with you the answers that we have gotten over the years.

Good profit

It is a very good profitable business. 1 plate of fried egg might cost Rm 1 but that roadside stall is selling at Rm 10. Then you will be thinking “Wow, can profit 10 fold”. 1 fish cost Rm 20 but I paid Rm 80 at the restaurant. 1 can of Coke which you can buy from Tesco / 7 eleven Rm 2 is sold at Rm 8 in a cafe.

New concept

A concept unseen before that you want to bring to the public. Either it is a pet cafe which you can eat together with a panda bear or roti canai served with pig intestine, you get what we mean right? something that will bring out the surprise factor when someone sees it for the first time.

Passion

You have a love for cooking and would like to showcase your skills to a wider audience. Since you have been cooking for family gatherings and receiving good feedback on your food, it would be good to share it with the public.

Monkey see monkey do

Looking at other’s success, you copy and open in another location or more exciting next door as their competitor. Another case would be looking at the success of well-known brand and buying their franchise or licensing to operate an outlet under their name.

Recession free business

This industry is not as badly hit in times of recession. Good times or bad times, still need to feed the tummy. With the Covid-19 outbreak right now, F&B is still listed as essential service. Even if there is no dine-in, they can still cater delivery and takeaways.

No customer debt

This business is low risk in terms of customer debts. Other businesses would be running on credit terms, meaning you take first pay later. Food & Beverage businesses get paid on the spot by cash or credit card. Even if customer default on their credit card, the bank would have to pay you.

There are many reasons but these are the few main reasons which we encountered. Anything that you would like to share with us? Do leave a comment below.

Thank you for reading.

Address


Website

Alerts

Be the first to know and let us send you an email when A to Z of F&B posts news and promotions. Your email address will not be used for any other purpose, and you can unsubscribe at any time.

Shortcuts

  • Want your business to be the top-listed Food & Beverage Service?

Share