Starting a Fruit Shake Business

I. INVESTMENT REQUIREMENTS (All price are in Php based on 2007 market price.)

a. Cost of Utensils:

• 1 pc Fruit slicer 6″ (stainless steel) – 278.25
• 1 pc Can opener – 68.25
• 1 set Measuring spoon (plastic) – 36.75
• 1 pc Measuring cup (plastic) – 57.75
• 1 pc Chopping board (anti-bacterial) – 89.25
• 3 pcs Plastic bowl 26″ @52.00 – 163.80
• 1 pc Spatula – 58.80

b. Equipment:

• 2 units Blender (unbreakable, 350W) @ 1,295.00 – 2,590.00
• 1 unit Kitchen scale (0-1 kg) – 293.95
• 1 unit Styrofoam cooler/ice chest (12×18x24) – 228.90
• 1 unit Refrigerator (3 cu.ft. personal size) – 7,875.00

Sub-Total – P 11,117.35

c. Raw Materials:

• 1/3 cup or 40 gms. Ripe mangoes – 2.55
• 1/8 cup Evaporated milk – 1.00
• 1 tbsp. Granulated sugar – 1.00
• 3/4 ice cubes – 0.50

Sub-Total – 6.05

Other flavors and varieties:

• 1/3 cup or 40 gms. Melon – 1.30
• 1/3 cup or 40 gms. Avocado – 3.35
• 1/3 cup or 40 gms. Strawberry – 8.40

d. Packaging:

• 1 pc Plastic glass (12 oz.) – 1.40
• 1 pc Straw – 0.15

II. PROCEDURES

1. Choose fresh ripe fruits.
2. Peel and remove seeds (when needed) slice fruits into smaller pieces.Remove seeds.
3. Weigh or measure 40 gms. or 1/3 cup fruit and put in blender. Add milk and sugar.
4. Fasten lid of blender and press start button. Use high speed for about 20-30 seconds.
5. Stop the blender and check to see if the ingredients are well blended. Sometimes fruits will jam under the blade. If there is a jammed fruit, use a spatula to unjam then blend again.
6. Once the mixture is evenly blended, slowly add 3/4 cup ice until blender sounds smooth.
7. Pour in 12 oz. plastic glass and serve with straw.

Note: You can mix 2 kinds of fruits together, adjust measurement of each fruit to 1/4 cup.

III. COSTING AND PRICING

a. Product Costing (ex. mango shake)

Direct cost:

• Ingredients used for 1 oz. glass – 5.05
• Packaging – 1.55

Total – 6.60

Indirect cost:

• Labor cost (330.00/day/50 glasses produced) – 6.60
• Transportation (15.00/50 glasses) – 0.28
• Water and electricity (735.00/30 days per 50 glasses) – 0.51
• Contingency (10% direct cost) – 0.66

Total – 8.05

b. Production cost:

• Total direct cost – 6.60
• Add: Total indirect cost – 8.05

Total – 14.65

c. Product Pricing:

• Production cost per glass – 14.65
• Add: 25% mark-up of the production cost – 3.66

Selling price per glass – P 18.31
Market price per glass – P25.00 – 30.00

• Registration Requirements
• SME Loans and Financing Facility
• Training and Seminars Institutions

For more information, contact:

Bureau of Small and Medium Enterprise Development (BSMED)
3/F Oppen Bldg.
349 Sen. Gil Puyat Ave., Makati City
Tel: 890-4968; 897-7596; 897-1693
Fax: 896-7916
Email: bsmed@dti.gov.ph
Website: www.dti.gov.ph

photo from anton.blogs.com