August 18, 2017
If you are a burger addict, especially at odd hours of the night when it is almost time for your favourite drama, or you’re looking for one after a long day of work, the Ramly burger always saves the day. We can’t help but wonder, how much can we really earn from selling Ramly burgers?
Ramly Burger was founded in Malaysia in 1984, by Haji Ramli Mokni. The company’s main goal is to produce properly sourced, halal meat products. Besides burger patties, they also produce chicken wings, chicken nuggets, hot dogs, and even sauces.
However, many burger stalls today don’t necessarily use Ramly burger patties, the name has caught on amongst locals and no matter what type of patty used, it will always be a welcomed business because of its affordability and deliciousness.
If you are setting up a stall in front of your house, you will need to begin by buying the equipment: a metal burger stall, a gas stove, a solid table, a fluorescent light and some cooking utensils. Most of which can be found at kitchen products distribution stores, warehouses or even Mudah.my (for second-hand goods).
You will need an initial start-up capital of RM5,000 to RM6,000 depending on the brands and prices of the utensils you get:
You will also need to prepare some cash flow (RM200 to RM400 per month?) for raw materials:
The number of burgers you can sell highly depends on the location of your stall and your quality (for sure), hence, we suggest you look at setting up stall within neighbourhood areas, nearby Mamak stalls, cyber cafes, apartments or even convenience stores. This way, you will have a higher chance of securing more customers.
On average, an ‘Ayam Special Burger’ is priced at RM4 to RM5 these days and you can sell up to 20 or 30 similarly priced burgers in one day (depending on the crowd), which makes the total revenue of the day at least RM80 a day. If you decided to operate every day (without a rest day), you are likely to make about RM2,400. To make more you need more customers or extend your selling hours during the weekend.
However, you will need to deduct your monthly operating costs from your revenue so you can get a clear picture of your net profit.
Formula 1: RM2,400 (Revenue) – RM400 (raw material and minor operating costs) = RM2,000 (Net Profit)
However, let’s not forget your initial startup cost. To break even, it might take you about 6-12 months. You can divide the initial start-up cost of RM5,000 by 6 months or 12 months and deduct that amount from your monthly revenue to get the real net profit.
For example, RM5,000 divided by 12 months = RM417.
Formula 2: RM2,400 (Revenue) – RM417 (fixed costs) – RM400 (raw material & operating costs) = RM1,583
This only applies until you break even. After the first 12 month period ended, you can use Formula 1 to calculate your net profit. If you ever need to buy new equipment or utensil for upgrades, you can always use Formula 2 to decide your break-even period, revenue estimation as well as net profit within the period.
Like many careers, you will need to think this through before deciding to jump in. We compiled both positives and negatives so you can have a better picture before making your decision.
Yes, you should if you meet these requirements:
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