From Rs 4 Lakh Investment To Rs 2.1 Lakh Monthly Revenue: Biryani Seller Shares Business Journey

The story of a food business owner who has recovered Rs 4 lakh investment and now earns Rs 2.1 lakh per month with his food business is shared. His story on the sales, prep cost and expenses every day has generated a social media conversation about the opportunities and risks of running a small food business.

The owner shared his experience in a video posted by Instagram content creator, @numaan.decodes. The seller claims that he has been operating this shop for over a year and that he has about 60 to 70 customers a day on average.

He also recommended that if the budding entrepreneurs want to start their business they can invest to the extent of Rs 1.5 lakh to Rs 2 lakh depending on their requirements.

How Much Does It Cost To Prepare A Vessel Of Biryani?

The owner of the shop explained the working of the shop, saying that the one big vessel would fill with around 8 kg of biryani and will cost around Rs 1,000 in the shop to prepare.

The shop sells approximately 3-4 vessels each day with each vessel costing nearly Rs 2000. This means that an estimated loss of Rs 1,000 per vessel is incurred between the cost of preparing the vessel and the price at which it is sold.

Based on these figures, the daily sales of biryani is estimated to be Rs6,000 to Rs8,000 with the preparation cost as mentioned being Rs 3,000 to Rs 4,000.

How is the total amount made in a month calculated in The Shop?

The Instagram owner took and used the seller's daily sales data to calculate a daily margin.The Instagram owner took and applied the seller's daily sales data to calculate a daily margin which he then estimated to be a monthly margin.

The calculation is as follows: first 15 days, the shop sells three vessels per day, and the next 15 days the shop sells four vessels per day. That's 105 ships for a month.

The estimated margin between the two is Rs 1,000 per vessel, which works out to be around Rs 1.05 lakh per month before other operating costs.

The seller also informed that Rs 10,000 is paid as monthly rent in the shop and Rs 3,000 is spent per month on electricity.

When these two expenses are deducted from the estimated margin, about Rs 92,000 is left. This is a pre-cost number and doesn't include any extra costs.

Social media users are debating the business model

For some, the video was sparking mixed emotions as they talked about the cost and practicalities of having a food business.

While computing profits, one would need to take into account electricity cost, rent and staff salaries as well, one user noted. The creator replied to the comment saying that the shop didn't have any extra employee and that their rent and electricity bill for the month would be Rs 10,000 and Rs 3,000, respectively.

Another user pointed out that the Rs 1.05 lakh figure should not be regarded as profit as other expenses of operation would have to be deducted. The creator explained that the monthly earnings of the shop were approximately Rs 2.10 lakh.

Some users also pointed out the significance of location on the success of a food business. One shared an instance of a ‘biryani wala' whose business began on a street stall around a university and has now grown to multiple food outlets in four to five years.

But others warned that not all food enterprises were going to be so successful. One user said that he had lost Rs 5 lakh after opening a store, and in a span of one month, the cook had left the place.

It emphasizes the importance of factors like proximity, customer demands, costs and employee dependability in the performance of a small food business.

ABOUT THE AUTHOR

Susmita Modak

[email protected]

Always love to raise the unraised matter. In a world of worries, I am always ready to come over my comfort zone and taking the step ahead of spreading awareness.

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