Tuesday, June 22News That Matters

Fishball and Kikiam Business Case Study

Fishball and kikiam are some of the most popular street foods in the Philippines and can be seen anywhere in the country especially in urban areas. Because of the ongoing pandemic, Filipinos are looking for other ways to make extra cash, and selling these street foods is one of the better alternatives.

In this article, we are going to take a look at how much money needed to start a kikiam and fishball business and how much money we can make in doing so.

If you are living in an urban area, you are in a better position to start this business but don’t worry if you are outside the city, you can still try.

Fishball and kikiam vending business 2021

Costs of tools and equipment

  • Mobile food cart – ₱10,000
    The mobile food cart is your main tool here. This is like your entire store. The average cost of the mobile food cart (BMX bicycle with customized sidecar) is ₱10,000
  • Kerosene stove – ₱900
  • Frying pan – ₱200
  • Strainer – ₱120
  • Frying spoon – ₱80

Subtotal – ₱11,300

Costs of materials (Ingredients and consumables)

Golden Peacock brand

  • Kikiam (1kg) 118 pcs – ₱70
  • Fishball round (400g) 33 pcs – ₱41
  • Fishball flat (500g) – 93pcs – ₱23
  • Cooking oil (1 bottle) – ₱25

Subtotal – ₱159

Sauce

  • Water 1/2 cup
  • Soy Sauce 1 tbsp ₱0.50
  • Brown Sugar 1 tbsp ₱0.40
  • MSG/seasoning 1/2 tsp ₱0.45
  • Garlic powder 2 tsp ₱2.5
  • Black Pepper 2 tsp ₱5.50

Subtotal – ₱9.35

Packaging materials

  • Kikiam tray (50 pcs) – ₱20
  • Bamboo skewers (50 pcs) – ₱7.5

Sub total – ₱27.5

Other

  • Kerosene (100 ml for 1 kilo kikiam) – ₱5.00

Total cost (excluding tools and equipment)

  • Main ingredients – ₱159
  • Sauce – ₱9.35
  • Packaging materials – ₱27.5
  • Kerosene – ₱5.00

Total – ₱200.85

Revenue

SRP

  • Kikiam – ₱1 x 118 pcs = ₱118
  • Round fish ball – ₱2.00 x 33 pcs = ₱66
  • Flat fish ball – ₱0.50 x 93 pcs = ₱45

Total revenue = ₱229 – ₱200.85

Net profit = ₱28.11

Looks too small? NO!

The higher the volume sold per day, the lower the production cost.

The cost of your sauce and packaging materials including oil and kerosene would dramatically decrease by up to 20% if you cook in bulk. So assuming you sell 10 times of this in a day plus 10% to 20% fewer materials, the total cost and revenue would be:

  • Kikiam (10 kgs) – ₱700
  • Fishball round (4kgs) – ₱410
  • Fishball flat (5kgs) – ₱115
  • Cooking oil (50 less) 5 bottles – ₱125
  • Sauce (less 20%) = ₱74.8
  • Kerosene (1 liter) = ₱50
  • Packaging materials (less 20%) = ₱216

The total cost of all materials and ingredients = ₱1690.8
Total revenue – ₱2,008.5

Net profit = ₱317.7

A lot of people who are doing this daily earns more than ₱1,000. Some sell more than 30 kilograms tripling the income. It may look small but as you do it daily, you are learning to adjust on how to lower your cost. The cost of your tools and equipment will be paid later as your income gets bigger.

The cost of the business permit is not included because permits are required only in bigger cities like Metro Manila. More than 90% of moving street food vendors don’t require a business permit.

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