Category: Business/ Consultancy
Our focus will be on frozen chicken, turkey and fish.
Food business, particularly frozen food business is one of the best business you can consider going into in Nigeria, particularly in Lagos because of its dense population.
Research have shown that an average of 23 million Nigerian households spends about N5,000 monthly on frozen food. That is about N115B monthly revenue.
The reason is simply because food, like water is in constant demand and what you need to set up your frozen food business is not as expensive as going into other kind of businesses. Food business even prospers in the harshest economic situation because people will have to always eat! People can go for months and sometimes up to a year without buying new clothes, but you have to eat every day.
Frozen food is very lucrative, presently in Lagos a kilogram of frozen chicken sells for a minimum of N650.00, sometimes depending on location, it costs as much as N1000. All things being equal, with good patronage an average standard frozen food store makes up to N200,000 monthly profit or more.
Frozen food business is broadly divided into two: Distribution and Production.
Distribution includes wholesale or retail of frozen food products made by other companies. All what is required is a cold room, storage and delivery van, etc. while Production on the other hand involves manufacturing, processing, and packaging of frozen foods, under a brand or label. This requires more capital than the distribution business. A business license is also required from NAFDAC.
To start your frozen food business you need to first put all of these in place:
1. Write Your Frozen Food Business Plan
In writing your business plan, you need to talk one on one with people already in the business; you can offer to work as a sales person for a few weeks to understand how the business is done! Or you can hire a professional to write a plan for you.
2. Determine the Product You want to Start With
There are a lot of food items that can be sold frozen, so, you choose the ones to start with.
In choosing your product you need to consider the taste and financial position of most people within the location where you want to set up your frozen food store. Try to stick to products with the greatest demand.
Also ensure to separate frozen chicken, turkey, gizzard and other meats from fish.
3. Your Location is very important
Choose a location with good prospect, within a residential area with high population is adviced, it can also be close to restaurants, bars etc.
4. Good Storage Facility
You cannot start a frozen food business without properly planning for storages like deep freezers, cold rooms, and other cooling system.
This is very important. You can choose hours to put on your generator to safe fuel so you won’t burn all your profits on power. Ensure to at least have your gen on for minimum of four hours a day non-stop.
6. Mobile Frozen Food Store
This gives access to all types of frozen foods without necessarily having to make a trip to the grocery store. You can make future plans to service your customers from home.
Things Needed to Set up Your Frozen Food Store
- Knives (Big and small)
- Fan/air conditioner
- Sales person maybe one for a start
- Water container
- Frozen Food
- Wooden boards
- Bowls or buckets
- Waste bin, etc
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