Tiffin Service Business Pros and Cons With Full Calculation

Tiffin Service Business Pros and Cons with full Tiffin calculation  As we have started the tiffin service business, I have self-experienced lot of ups and downs starting from managing the staff till meeting the customers re!uirement and tr"ing hard to retain them# I am writing this blog to point out the pros and cons for the people who are serving the tiffin services across the countr" and the people who are ta$ing the tiffin service# This will be beneficial for both parties if the" both understand each other%s re!uirement and accordingl" fulfill the lo"alt" lo"alt"## Pros. for the Provider: &# This could turn up in good profit# '# Th This is is a no nobl ble e se serv rvic ice e in ho hosp spit ital alit" it" bu busi sine ness ss wh whic ich h gi give ves s "o "ou u sa sati tisf sfac acti tion on if th the e customers are happ" happ "# (# )ou also ma$e a ver" good social networ$ which could be good for "ou and "our  business in future# Cons for the Provider: &# But all these above re!uire a ver" well managed staff and good number of resources# Serving *+ to &++ customer base a da" will at least re!uire ' expert coo$s, ' helpers and ( to  deliver" bo"s serving the different areas# anaging staff now da"s is ver" challenging  .ob as "ou never $now when one of "our coo$ or helper will be off from the wor$# So "ou need to plan the things well ahead# an" times "ou need to alwa"s hire an extra coo$ for  such cases or pa" extra from "our poc$et and hire new one to fill the gap# So "ou need a ris$ and contingenc" planning in the food business# '# )ou need a ver" good customer base to ma$e the profit depending on the t"pe of tiffin service "ou provide# /hen I sa" good customer base that means considering the above number of staffs, one will at least re!uire &++ customers for lunch and &++ for dinner if "ou fix the price of the tiffin as 0+ to 1+ 2s to run into a good profitable business# Profit/Loss and Cut off customer required for tiffin business. 3ets calculate the cut off number of customer base re!uired4 &# Salar" for all the coo$ and wor$ers with above number of staff will var" from *+5 to 0+5# /ow a huge expenditure in tiffin business# But "es this is true# '# 3ets assume that one charges tiffin at 1+ 2s# with a dr" vegetable, daal, rice, chapati, salad and chatani# That means for '* da"s serving in a month "ou will fix subsidi6ed rate to &*++ to &1++ 2s for a month# (# 7ach tiffin food cost comes to '* to (+ 2s# in which the most costl" thing is vegetable toda" which shares *+8 of "our food cost# # If "ou have (+ customers for lunch and (+ for dinner then total cost comes to 0+9': ;Average cost<9'* ;number of da"s< = '+++ 2s# *# & c"linder on an average serves &*+ customers# That means "ou will re!uire '*>;&*+>0+< = &+ c"linder for a month# 0# & commercial c"linder cost &:++ 2s# therefore total cost = &:+++ 2s for a month# 1# ?n an average to serve 0+ customers across ' times "ou will cover '++ 5 with  bi$es# ;'* 5m each time each bi$e<# That means total petrol cost is almost (*+ 2s# per da" and almost @+++ for month# :#  Bi$e maintenance and service cost will come to at least +++ each month# Total To tal Cost4 0++++'+++&:+++@++++++=&((+++ 2s per month# Total To tal 2evenue = 0+9&0++ ;Average price< = @0+++ 2s#

Profit = @0+++-&((+++= ;-(1+++< ?hhhhh#####are we in loss#####"es definitel" we are in loss with onl" 0+ customer base for the da"# ow lets decrease the cost of the tiffin to &* 2s# ;Dust serving vegetable with masala and lot of water and also serving in a ver" less !uantit", no !ualit" grains and oil used< and decrease the cost to * 2s each tiffin# In this model "ou will not get the variet" in vegetable dishes because all t"pe of vegetable cannot be p repared with water# Total Cost4 ++++ ;Cheap labor<  ''*++ ;cost of food for '* da"s<  &:+++&(+++ = @(*++ 2s# Total 2evenue4 0+9&&++ = 00+++ rs# Total profit = 00+++-@(*++= ;-'1*++< ?ops still in loss and almost similar loss as above# ; In such cases business owners tr" to reduce the cost b" decreasing the labor cost and low !ualit" grains, oil and stale vegetables< That hits the !ualit" of the food and deliver" mismanagement# The first model costing is done based on our dail" served food which has a ver" good !ualit" with a reasonable !uantit" to serve a person sufficientl"# /e also eat the same what we serve# Thus we alwa"s follow the first model and still tr" to cope up the mar$et because of the mindset of the people# I will tal$ about the general customers mindset and will tr" to point out how one should thin$ when it comes to a ver" basic re!uirement of the life as dail" food# oral of the stor" is with an" $ind of model above, to meet the cut off "ou should at least re!uire 0+ to 1+ customer base in low !ualit" food business and &++ customers in high !ualit" food business# )ou can do "our own calculation# Therefore it is not eas" business to run untill "ou have well $now good customer base esle "ou will $eep on loosing mone" ever" month#