Pakistan

How to Start Homemade Food Business in Pakistan

Homemade food products (Pizza & Cakes) have gained popularity over the past few years due to the general belief that it has good taste, quality and hygiene. Taking this true perception as an opportunity the business is proposed to be located in the city residential areas while considering other mandatory inputs i.e. availability of human resource, utilities and easy delivery etc. The objective is to promote home-based businesses, boosting women entrepreneurship, create employment and economic activity generation. Products in this pre-feasibility include pizza & cakes. Installed capacity of the business is 118,109 cakes/pizza per year with production of 67,200 Pizza & 50,909 Cakes. However, initial utilization has been taken as 70%.

Total Cost Estimates is Rs. 4.67 million with fixed investment Rs. 3.23 million and working capital Rs. 1.43 million. Given the cost assumptions IRR and payback are 44% and 3.08 years respectively.

The most critical considerations or factors for success of the project are:

  • Home Made Food Products are recommended to be established in their homes by people living within city residential areas considering other mandatory inputs i.e. availability of human resource, utilities and easy delivery etc.
  • Easy access to the consumer market is advised to be studied thoroughly and made a key consideration while setting up the project.
  • Online order booking and sale will be an innovation / customer facility and is important to boost sales along with media exposure of the business.

Following key parameters must be addressed as per pre-feasibility study under preparation

Technology: The proposed project is about Homemade Food Products (Pizza & Cakes). Its processing for pizza includes dough making, preparing topping ingredients, application of the toppings and Baking. For cakes it includes mixing the batter, filling the molds, baking, cooling down and finally stripping, decorating and packing. The entire process flow is suggested to be manual requiring skilled workers using specialized mixing and baking equipment. An interactive website is proposed to be developed for taking online orders of pizza & cakes. The website will host design catalog of fresh cream cakes for various events that can be baked upon ordering online.

Location: The business is proposed to be located within the city residential areas while considering other mandatory inputs i.e. availability of human resource, utilities and easy delivery etc.

Product: The business proposes manufacturing of Pizza and Cakes (pound, dry-fruit, plain, fruit & cream cakes) & market them through media exposure and through website development. The Pizza varieties includes Chicken Tikka, Chicken Fajita, Chicken Tandoori, B.B.Q pizza, grilled chicken, veggie feast, Hawaiian, Italiano pizza etc. Whereas cakes section would produce pound cake, cheese cake, various dry fruit cakes, plain & fruits cakes and fresh cream cakes of different flavors etc.

Target Market: The target market for the products is local i.e. for people living within residential areas of Quetta, Karachi, Lahore, KPK and Islamabad, who can order their product via telephone or online through its website and will delivered to their location.

Employment Generation: The proposed project will provide employment to 12 people.

Production Process Flow for Homemade Food Business in Pakistan

Making Pizza as Homemade Product

Dough Making: The first step in the process is making the dough. Good quality pizza dough is definitely critical to insuring a pizza which is light and flavorful. To save time while making a homemade crust, a bread maker can be a good tool. To improve the taste of your dough, consider incorporating a few herbs such as basil or rosemary and garlic.

Preparing the Crust: One big step many people skip in the pizza-making process is pre-baking the pizza crust. Baking your crust in the preheated oven to 425○ F for six minutes or so before putting on toppings prevents the dreaded “doughy crust” that often is the downfall of an otherwise delicious homemade pizza.

Making the Sauce & Topping Ingredients: Sauces are important ingredient for pizza making and it can also be made at home instead of buying ready-made expensive sauces. However the choice depends on the chief. The sauce is then applied on to the pizza crest. We may sprinkle cheese in this stage as per the requirement of recipe.

The topping ingredients as per the flavor of pizza are then filled in on the top of the sauce and distributed evenly for uniform texture and taste.

Baking the Pizza: The pizza is baked at 450°F (230°C) for about 15 minutes or until the cheese is bubbling. The pan or stone is removed from the oven with the peel. The pizza is allowed to sit for approximately five minutes before cutting it into slices with a pizza wheel. Slice shapes, like the placement of the mozzarella cheese, differs from region to region.

Making Cake as Homemade Product

There are countless cake recipes; some are bread-like, some rich and elaborate and many are centuries old. Most standard commercial cakes use a batter made from wheat flour, fat, eggs, sugar, milk powder, water, flavorings, preservatives such as sulfur dioxide and raising agents such as sodium carbonate. The ingredients are combined in either the sugar batter or flour batter methods. In the sugar batter method, the fat and sugar are creamed together, followed by the liquid then the flour. In the flour batter method, the fat is blended with the flour before being gradually mixed with the eggs and sugar. Increasingly, the “all-in-one” method is being used, which combines all the ingredients except fruit simultaneously.

Mixing the Batter: The batter is mixed in a commercial mixer. Once all the ingredients are combined, the mixer continues to beat the mixture for a further 10 minutes in order to trap in air and allow the cake to rise properly. The air works in conjunction with the added raising ingredient and the cake will grow in size during the baking process. Once the mixing is completed, the batter is turned into a mold for baking.

Filling the Mold: The baking mold is sprayed with a thin layer of oil, which prevents the batter from sticking to the mold during the baking process. The mold is then filled with batter according to the shape, weight and level of the batter.

Baking: Once full, the molds are taken to an automatic oven. The temperature and humidity of the oven are carefully regulated to produce the best result for the cake type so that it cooks evenly and thoroughly. To prevent the surface of the cake from cracking during the initial rising process, the crust is sprayed with water to make it more flexible. Once the cake has fully risen, the crust is allowed to dry and take on its baked coloring.

Cooling Down: After baking, the cake must be thoroughly and carefully cooled so that it does not collapse. As the cake cools, it releases moisture into the air that is removed by powerful suction fans in the kitchen so that no condensation forms.

Stripping, decorating and Packaging: Once the cake is completely cool, it is released from its mold and packaged so that it will be ready for transportation. The cake must be completely cool before packaging, or condensation will form and damage the product. Commercial cakes are normally wrapped in plastic packaging, possibly with the additional of a cardboard tray.

For cream cakes, after stripping from its molds, it is decorated with flavored cream and other ingredients and packed in boxes or kept open and placed in refrigerator to cool before dispatching.

Installed and Operational Capacities

The yearly installed production capacity of the project is 118,109 cakes & pizza with production of 67,200 Pizza & 50,909 cakes. The Pizza varieties include Chicken Tikka, Chicken Fajita, Chicken Tandoori, B.B.Q pizza, grilled chicken, veggie feast, Hawaiian, Italiano pizza etc. Whereas cakes section would produce pound cake, cheese cake, various dry fruit cakes, plain & fruits cakes and fresh cream cakes of different flavors etc. Project Capacity utilization has been assumed at 70% in the first year and is increased at a rate of 5% annually, capped at 95%.

Investment Required For Homemade Food Business in Pakistan

All the figures in this financial model have been calculated for estimated sales of Rs. 27.99 million in year one. The capacity utilization during year one is worked out at 70% with 5% increase in subsequent years up to the maximum capacity utilization of 95%. For detail financial analysis, pre-feasibility study by SMEDA can be download.

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