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.
How much do you need to start a Ramly burger stall?
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).
Estimation of costs
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:
- Average price of a metal burger stall = RM2,000 to RM3,000
- Average price of a gas stove = RM200 – RM500
- Average price of a fluorescent light = Less than RM50
- Average price of cooking utensils = RM500 to RM800
You will also need to prepare some cash flow (RM200 to RM400 per month?) for raw materials:
- Ground white pepper
- Chilli sauce
- Worcestershire sauce
- Beef or chicken patty
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How many burgers can you sell in a day?
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.
Estimated net profit per month
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.
Pros and cons of selling Ramly burgers in Malaysia
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.
- A flexible schedule. You get to decide your opening hours and location considering the small size of a burger stall.
- You can interact with people in your neighbourhood. This is a good way to know your neighbours and the wider community.
- On a good day, you can sell as high as 50 burgers if you are fast and hard working When there’s a big game on, like a football match or badminton tournament, you can expect a healthy number of customers and extend your operating hours to earn more than usual.
- You make your own rules. Whether it is outfits, standard procedures or closing earlier than usual, you get to make the call as an owner. You can even do this as a part-time business after your 9-5 job.
- The inconsistent number of customers. You cannot expect to make the same amount of money two days in a row, and this can cause headaches over time as it will be a challenge to estimate your income.
- The weather can work against you. Heavy rain or storms not only keep your customers away, but it can cause physical damage to your stall if the weather is hectic enough.
- Safety and security concerns. You might want to consider the safety and security matters of the location before opening a burger stall. This is to ensure you don’t lose all your money you make a whole night to theft.
- You will need to break even in the first year of your business which can be stressful. Or else, it might not even worth the effort to continue if you do not make a profit.
Should you run a Ramly Burger stall?
Yes, you should if you meet these requirements:
- You can afford the RM5,000 – RM6,000 start-up costs
- You have the flexibility of time to commit to operating your Ramly burger
- You can afford to make monthly repayments to your personal loan, if necessary. Check out the monthly installments here based on the loan amount you need.
- You are good at cooking and have a great customer service.
Need cash to start your business? Check out the best personal loans with the lowest interest rates now!
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