Eatery business also known as a restaurant business is one of the profitable business in Nigeria. Irrespective of how people see it, it will continue to offer it services to people. Base on our research, we have found out that 90% of Nigerians has eaten in a restaurant (eatery) and they will still continue to eat in eatery. This should make smart entrepreneurs or investors to invest in this wonderful business. Although it may look unlucrative or a woman’s business, But it is worth investing.
There are lots of profit to make ranging from N300,000 to N900,000 or more than per month depending on the size of the business. On daily basis, some small scale eateries make as much as N9000 to N90,000, While medium or large scale eateries can make as much as N90,000 and up to millions per day.
Eatery business doesn’t require huge capital to get started on a small scale. In fact, the startup capital depends on the size you want to run the business. The most important aspect of this business is a quality planning, No need to rush without being ready. That’s why we wrote this article to help interested entrepreneurs or business starters to get a hint about the business.
Starting An Eatery Business In Nigeria
Here are step by step guide on how to start an eatery business in Nigeria:
1. Research: The first thing to consider/or do before starting any business is research. Detailed research will give you more knowledge about the business and help you know the market demand, what people likes most, how to treat your customers right, which dishes will fit them, the major complains of customers and how to avoid it. Research will also help you in aspect of conducting market survey and also help you to meet up with the criteria that is required most.
2. Good Training: Now that you have done your research, you should get properly trained and gain the knowledge of restaurant business which will inculcate you on how to run this business smoothly. By achieving this; you have to go for tutorials, catering schools, reading catering related books and online training to gain the required skills in dish preparation and handling of customers.
You should have it in mind that eatery business is full of competition, So your delicious meal will make your customers come back over and over again. If you don’t want to lose your customers to other eateries, then you must be ready to learn how to cook in order to keep your customers.
3. Budget: This is the most important factor that will determine the structure and how your business will look like. Every business requires capital to run effectively. You have to budget for equipments, business registration, decoration, tables and chairs, employment fee (salary), air conditioner or standard fans and other logistics. Sufficient capital is needed to fund and run a successful eatery business.
We don’t advice getting bank loans, because there may be disadvantages that may face you in future. It is very much important to raise capital through cooperative societies than obtaining a loan from bank. Ensure that you have enough capital before venturing into this business.
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4. Good Location: Location really matters a lot, Consider a location that is in busy areas such as business centers, market areas, offices etc. This will enable fast patronage of your services. Also ensure that your premises is very clean and hygienic, Nothing irritates customers than a dirty area. What attracts 40% of customers is the neatness of the environment and what keeps 60% of your customers is how delicious your meal is.
Another thing to consider under this category is the accommodable aspect of the environment. Can it contain your customers? Will your customers feel comfortable? What if rain comes will it affect your customers or the environment?, These are some of the questions to ask yourself when choosing an environment for your business.
5. Employment: Employing your staff is not all about favoritism, is all about employing people that have good knowledge of meal preparation and good customer relation. You should consider your venture as a serious business, thereby employing hardworking and dedicated staff that will assist in expanding the business. But don’t forget this >> “Always pay them at the fixed agreed date for payment”.
6. Business Registration: Do you want to take your business to the next level?, Why not consider registering your business?. It has lots of benefits and will give your customers guarantee that you are running a legitimate business. As a registered eatery, you can take your business online because you have a license covering you.
7. Security: Depending on the size of the business, If it is a large scale or medium scale eatery, It will be very important to employ security personnels that will protect your environment incase of any unusual movement. So it is very much important to have them at your enterprise.
8. Marketing: Marketing and advertisement both online and offline will be very important to create awareness and expand your business. Although, if your food is delicious, it will attracts more customers through your customer.
Requirements And Cost Of Starting An Eatery In Nigeria
How much does it cost to start up an eatery in Nigeria? Here are vital information on the requirements and cost of starting an eatery business in Nigeria:
1. Renting Cost: Renting should cost between N20,000 to N300,000 depending on the location and size.
2. Equipment Cost: This include cost of of kitchen utensils, tables and chairs, cooking, fans or air conditioner, and other necessary equipments, This should cost from N50,000 to N250,000.
3. Cost Of Business Registration: Business registration should cost from N5000 to N30,000.
4. Marketing Cost: Expenses for creating awareness should cost from N10,000 to N50,000 (depending on the level of marketing).
5. Employment Cost: Depending on the number of staff and size of business, Salaries ranges from N8000 to N30,000.
Total: Cost of starting a small scale eatery is about N100,000. While Medium cost about N700,000, Large scale eatery business should cost about N5 Million upward to get started.
Summary
Eatery business in Nigeria will continue to be one of the best lucrative business opportunities for entrepreneurs. Ensure to conduct a feasibility study because it will enable the success of your business. A good knowledge of how an eatery business can be run will definitely make you an expert.