How to breakeven at Ramadan Bazaar Singapore?

Opening a shop at the Geylang Ramadan Bazaar can be a great opportunity to earn money during the festive season. The question is, can you actually make a profit? In order to answer this question, let's take a closer look at the costs involved and the potential revenue you can generate.

Assuming a rental cost of $18,000 for a period of 30 days, we can break down the costs into four main categories: rent, manpower, equipment, and cost of goods sold. Rent alone comes up to $600 per day, which means that even if you sit at home and do nothing, you're already paying $600 per day. Manpower is also a significant cost, assuming that you need at least three people to run the operation – yourself, a cashier, and a cook. Assuming a part-time salary of $12 per hour and an eight-hour day, the cost of manpower comes up to $350 per day. Lastly, the cost of equipment is assumed to be minimal for a simple satay shop – just $50 for charcoal and basic cooking utensils. Adding up these costs, you're already looking at a total of $1,000 per day before you even start selling your food.

Moving on to the cost of goods sold, let's look at the example of satay. Assuming an average weight of 20 grams per stick, and a cost of $20 per kilo pre-marinated Satay meat, the cost per satay is about 40 cents, not including the cost of the stick. Alternatively, if you were to buy a bulk frozen chicken leg from NTUC and marinate it yourself, the cost could be as low as 12 cents per satay. For the sake of argument, let's take the average cost at 25 cents per satay, which comes up to $2.50 per portion of 10 sticks. Adding on the cost of other ingredients such as onions, cucumber, and packaging, the total cost of goods comes up to around $3 per portion.

Now let's look at the potential revenue. Assuming a selling price of $1 per stick, or $10 per portion, you would need to sell at least 100 portions per day just to break even. However, this is just the break-even point – in order to make a profit, you would need to sell more than that. Assuming a profit margin of 5%, which is the average for F&B businesses in Singapore, you would need to generate daily revenue of $1,200 in order to earn a profit of $60 per day.

Of course, these numbers are just estimates, and there are many factors that could affect the actual costs and revenue. For example, if you're able to negotiate a lower rental cost or find a more efficient way to operate your business, your costs could be lower. On the other hand, if sales are slower than expected, you may need to adjust your pricing or marketing strategy to attract more customers.

In conclusion, while it is possible to earn money by opening a shop at the Geylang Ramadan Bazaar, it requires careful planning and execution in order to make a profit. By understanding the costs and revenue potential, and by being flexible and adaptable in your approach, you can increase your chances of success and make the most of this festive opportunity.