Monday, January 14, 2013

Start Fountain Soda Business

Earlier I discussed about options of starting Sugarcane business, its investment and running cost, its profit percentage. In this post, I have discussed in detail about starting a flavored soda business. This is also a standalone machine which requires very small space. Soda machine varies in different sizes and we can order based on the size of our shop.

Floor Size: Soda machine is kiosk form business, so this can be placed in walkway of malls or to a side of big super market or placed outside a crowded commercial spot. Based on space available we can order different size of soda machine. The more the size, the more number of flavors available in the machine, a normal small size machine will be 23"x33"x36", for 4 flavors to a maximum of 66"x32"x32" for 20 flavors.

Machine Price: This machine costs from Rs.1 Lakh to Rs.2 Lakh based on the number of flavors requested. When you purchase or make a deal, you should also get details of how many CO2 cylinders are provided along with this machine. Minimum 2 CO2 cylinders are required, one for use and one for refill, this is to avoid business shutdown because of CO2 shortage.

Power Consumption of the machine is around 900-1000watts, so 1unit of electricity is used for operating machine for an hour, which can produce around 500 cups of Soda, assuming 10 seconds for one cup.

500 Cups of Soda contains (250ml per cup): 250*500 = 125000 ml (125 Liters) of Soda

MaterialCost / 500 Cups
Mineral Water (Rs.25/20Liters can)Rs:160.00
Paper Cup (Rs.0.40/cup)Rs: 200.00
Flavours (Rs:100/Liter and 1gm/cup)Rs:50.00
CO2 (1.2gm/cup @ Rs.100/kg)Rs.600.00
Power Consumption (Rs: 10/unit)Rs:10.00
TotalRs:1020.00
Total (per cup)Rs:2.00
Labor + Rent + Miscellaneous charges (per cup)Rs:0.50

So for a cup of soda, real working cost is Rs.2.50 per cup, and based on the shop location, it can be sold for Rs.5 or Rs.7 or Rs.10 even, which is 100% - 300% profit. Let me know if you find this post useful.

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