6 Things To Remember When Running A Canteen Business - Entrepreneur PH

11/11/2017 6 things to remember when running a canteen business | Entrepreneur Ph
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6 things to remember when running a

canteen business
Take advantage of a captured market to run a pro table canteen business.
By Mishell M. Malabaguio | Aug 29, 2012
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For instance, running a food concession business is so unlike running a are agreeing to our use of cookies.
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restaurant or a food cart. A food concession may take one of several setups: to 850 Stores
vending, food consignment in an already existing canteen, or running the GOT IT!
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canteen itself. Why Sun Life’s Riza
Mantaring Wants to Triple
PH’s Top Insurer’s Clients to
A canteen is said to have a captured market, whether it is located in a school, 5M in 5 Years
of ce building or factory. This does not make running the business any easier.
https://www.entrepreneur.com.ph/business-ideas/6-things-to-remember-when-running-a-canteen-business 1/7
It just presents a particular set of challenges depending on the market one RUN AND GROW
chooses to serve. Working from Home is the

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1. Imaginative menu RUN AND GROW
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Since a canteen has a captured market, it needs a menu that offers suf cient Not Feeling It
variety, says Marie Paz Pineda, a food concessionaire for about 22 years.
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Follow This Savings Plan
“You serve the same people everyday and they should not get tired of your and You Can Retire in 15
Years
offerings,” says Pineda. It is then important for a food concessionaire to
regularly introduce new items to the menu. STARTUP TIPS
This Beauty Queen
Overcame Debt and Started
an International Business
2. Little promotion
Canteens need very little promotion and advertisement. Entrepreneurs who are NEWSLETTER
in this business, therefore, hardly spend for advertising. Subscribe to our email newsletter for
useful tips and valuable resources.
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3. Segments
There are three market segments usually served by food concessionaires: 

BUSINESS OPPORTUNITIES
students, of ce employees, and factory workers.
Among the three, students–speci cally private-school students—are the most COLUMNS
The End Game
lucrative for Pineda, who runs canteens in an exclusive school and dormitory
All returns are risk driven
in Manila.
Francisco J. Colayco
“Students from such schools have more purchasing power,” she says. How much risk should you tolerate when taking
significant investments?
“Moreover, students lead active lives, so they tend to eat more.”
On the other hand, Annie Valdez, who co-owns CTED Food Services, says that
catering to of ce employees is more pro table, because an of ce canteen could
be operated continuously throughout the year, unlike school canteens that are
shut during school vacations.
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4. Rent
This depends on the leasing policy of the property administrator. Valdez cites
her parents who run a factory canteen as an example: “They don’t pay any rent.
Even the utilities, such as water and electricity, are free of charge,” says Valdez.
“The administrator wants them to cater to the factory workers. The

disadvantage, though, is that they couldn’t increase their prices since these
workers have limited budgets.”
Rental rates may also vary depending on the size of the facility being served
and the location of the facility.

5. Lease contract
The lease contract in schools is usually co-terminous with the term of the
school headmaster or the signatories of the contract. For of ce buildings, the
contract usually lasts for a year; however, it may vary depending on the policies
of the building association or administration.
Valdez and Pineda generally nd it easy to deal with school administrators.

However, Valdez advises would-be food concessionaires to practice
pakikkisama, that is, to be very accommodating of the administrator’s policies,
whether the concession is located in a school, of ce building or factory. PR—
public relations—is very important in any business, they stress.

6. Operating hours
They must match the in ux of customers, whether students, of ce, or factory

workers. Valdez starts her school canteen operations as early as 5 a.m. and
ends at 7 p.m. Pineda operates her school canteen from 7 a.m. till 6 p.m.

Find out more here.

* A food concession business has its own set of advantages and disadvantages
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when compared to other types of food businesses:
• Complicated inventory system
There are a lot of items to track when operating a canteen. These include
cooked dishes down to the last cooking ingredient, cooking and eating utensils,
and kitchen equipment. Valdez conducts a monthly inventory of her canteen’s
stocks and utensils.
• Close supervision
Running a canteen requires a lot of attention from the entrepreneur – it is not

something the owner can just leave to the care of the employees. Food
concessionaires need to have production systems down pat before delegating
supervision to employees, speci cally the operations manager.
• Capitalization
The initial capital needed to start a school canteen depends on the size of the
facility to be served, the equipment to be acquired , the number of customers
served , and extent of the renovation required, if any.
For a canteen with a serving capacity of some 200 people, an initial investment
of P1.5 million to P2.5 million is required. About 70% of that amount would go to
acquiring equipment, and the rest could serve as the initial working capital.
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11/11/2017 6 things to remember when running a canteen business | Entrepreneur Ph

Franchising Forum Promos Biztools        

6 things to remember when running a

MOST READ ARTICLES

chooses to serve. Working from Home is the

email address Subscribe

There are three market segments usually served by food concessionaires: 

We use cookies to ensure you get

“The administrator wants them to cater to the factory workers. The

Valdez and Pineda generally nd it easy to deal with school administrators.

They must match the in ux of customers, whether students, of ce, or factory

We use cookies to ensure you get

• Complicated inventory system

• Close supervision

Running a canteen requires a lot of attention from the entrepreneur – it is not

3K Shares Share Tweet Share

VIEW OTHER ARTICLES ABOUT

startup business canteen business food concession business food concessionaire

startup business canteen business food concession business food concessionaire

BUSINESS IDEAS BUSINESS IDEAS BUSINESS IDEAS

We use cookies to ensure you get

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NEWS AND EVENTS

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by Pauline Macaraeg | November 11, 2017 10:00:00

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by Sherrie Campbell | November 11, 2017 08:00:00

RUN & GROW

Brain Science Says to Trust Your

by Nina Zipkin | November 11, 2017 02:00:00

We use cookies to ensure you get

What Entrepreneurs Need to Know

by Kimanzi Constable | November 11, 2017 00:00:00

NEWS AND EVENTS

Keen on the 'World’s Sexiest Job'

by Entrepreneur Staff | November 10, 2017 19:00:00

NEWS AND EVENTS

Rising Vacancy Rates in 3rd Qtr:

by Lorenzo Kyle Subido | November 10, 2017 12:00:00

From Php15K to Php20M: How a

by Chiara U. Mesiona | November 10, 2017 11:00:00

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by Rose Leadem | November 10, 2017 08:00:00

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by Victoria Cairl | November 10, 2017 06:00:00

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by Nina Zipkin | November 10, 2017 02:00:00

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by Pauline Macaraeg | November 09, 2017 11:00:00

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