Popcorn business is a profitable business if run well. The requirements to start are very few and management is easy. Below, I highlight the requirement to start a popcorn business in Kenya
- Popcorns.
Popcorns is a type of corn no wonder it is called pop-corn. The word popcorn originates from the fact that when this type of corn is subjected to heat, it pops open hence pop-corn. Currently, un popped popcorns are sold in most supermarkets in small packets of 500gms or 1 kg. This amount of popcorn is small for commercial purpose. Another drawback that eats on profit is that the supermarkets and groceries include their margin in the cost of the popcorns thus making buying of popcorns from supermarkets for popping an expensive venture. In Nairobi, it is cheaper to get pocorns along Nyamakima or along Keekorok road. There are several dealers of pocorns along these streets. A 25 kg bag will cost approximately KShs. 3000 meaning per kilo is about KShs. 120. This is cheaper than you would buy from a supermarket where 500gms would cost you the same.
2. Popcorn machine
To start popcorn business you require a popping machine. Nowadays, you can pop popcorns in a microwave but it is not economically feasible for large scale popping making the popping machine a necessity. The Juakali guys can fabricate a popping machine at a cost of approximately KShs. 15,000-20,000. It is also possible to buy ready made popping machines from supermarkets or utensil shops. A popcorn machine from utensils shops will set you back KShs. 25,000-30,000.
3. Packaging material
Once the popcorn has popped they have to be packaged either for sale to take away customers or for delivery to shops and stores. In Kenya, plastic bags are banned for ready to go products. Plastics bags are only allowed for industrial production and they have to be printed with logo and details of the manufacturer, in this case the popcorn producer. Those wishing to go the industrial way, there are many companies in the industrial area that produce printed plastic bags. You will need clearance from NEMA for any company to print plastic bags. On average its cheaper to do bulky printing of the packaging bags to enjoy economies of scale. Taking an average of KShs. 1 per bag, bulk printing of 300,000 bags will cost KShs. 300,000 plus the initial stencil cost.
For take away, it easy to get kraft papers or what many people refer to as khaki or brown paper for packaging. There are many outlets selling kraft papers. Also popcorns can be packed in polystyrene cups.
4. Location
To make good money form popcorns which is easy, is to produce in bulk and supply to supermarkets or groceries stores. If the production is low, it is important to get a high traffic location to move high quantities of popcorn. Such locations include: school gates, supermarket entrances, busy streets and bus stops. A small packet of popcorn can go for KShs. 20. Therefore, on a high traffic point, selling 300-500 packets a day can give you an average of KShs. 6,000-10,000 per day.
5. Legal requirements.
To supply popcorns to supermarkets they will require company registration certificate, KEBS certificate and sometimes public health certificate. If you use plastic bags for packaging, NEMA certificate will also be a requirement.
6. Other requirements
Cooking fat, salt, power, a table and a chair or stool and scooping raddle.
All the best as you venture into popcorn business. For any questions, do not hesitate to contact me at 0717-47-37-36.