HOW PROFITABLE IS A FRUIT STALL, FRUIT SALAD AND FRUIT JUICE BUSINESS IN KENYA?

When I meet Julius Mulei, at his shop in Nairobi Central Business District, he was busy packaging fruits to take to his customers.

Mulei, an orphan, is a boss of eight employees who together prepare and supply fruit salads to offices in the CBD.

The employees are partially the reason he wakes up every day and not give up on the business.

“Sometimes when I face so many challenges especially being harassed by ‘Kanjo’ (county council askaris) I feel like I want to close the shop and do something else away from them. But I ask myself, If I quit, where will these people go?” he says.

Mulei started his small fruit shop with only Sh.200 and one employee. Five years down the line, he has a reason to smile.

At the moment he is able to buy stock worth Sh.8,000 every morning, pay his employees at least Sh.500 each per day and remain with a profit of Sh.2,000 on average.Having studied automotive engineering, employment didn’t go well with him as he had to struggle to meet his daily needs, surviving hand to mouth due to low pay.

However, Mulei is proud to have achieved a lot with his business, including educating his only sibling through secondary to college level, as well as start dairy farming in Makueni. Most people in Kenya have turned to healthy living.

Nutritionists recommend eating fruits daily to strengthen the immune system.With the rise of lifestyle diseases, many people would like to have access to organic produce. Fruits are a source of vitamin C, folic acid, potassium, and dietary fiber.

Fresh fruits are especially a great option for breakfast, snacks, or dessert.Starting a fruit stall, fruit salad and fruit juice business is a noble idea since the demand for fruits is high.

Also, the business does not require huge startup capital. In this article, I will show you how to start a fruit stall and fruit salad business in Kenya.

*Research the market*
You need to research your potential fruit market. You need to identify the type of fruits that are in demand and where to get them. You also need to consider the competition, challenges facing the business, and potential areas you can set up your fruit business.

*Write a Fruit Stall Business Plan*

A clear plan is essential for success as an entrepreneur. You need to plan your business well before launching one. This will help you map out the specifics of your fruit business and discover the unknowns.

The following are some of the things you need to capture in your business plan.

*How much is the startup and operational cost?

*Who is your target market?

*Your business location?

*Types of fruits you want to sell

*Identify a Fruits Business Location*

Speaking of Physical locations; fruit bar businesses tend to do so well where there is a lot of foot traffic.

What’s your target location – is it so close to a college, university, bus terminus or a string of other informal businesses?

You should make a kill in such locations.

You can choose to operate your fruit business in a mobile kiosk, a cart, or a stall.

Display your fruits well on clean counters to attract customers.

You can also set up your fruit business near eateries to get more sales.

The fruit vending business is also ideal near residential areas and institutions like hospitals and colleges.

*Identify Adequate Fruits Supply*

You need to have a steady supply of different fruits variety. You need to know where to source your fruits.

You can get fruits from farmers, wholesalers, or fruit plantations.

Wholesale purchase of fruits is cheaper compared to retail purchases.

Vendors in Mombasa can buy fruits from Kongowea Market, in Kisumu, you will get them fro Kibuye or Jubilee markets.

Fruits and vegetables are bought in Daraja Mbili in Kisii county at a wholesale price.

In Nairobi, Muthurwa is your place.

*Requirements for Starting a Fruit Salad Business in Kenya*

Instead of selling fruits alone, you can sell fruit salad to generate an extra income.

To start a fruit salad business, you need to peel and cut fruits into small pieces and put them into small plastic containers.

You need to know what fruits to mix together to bring out the best flavour.

To start a fruit salad business in Kenya, you need the following:

*Cutlery.* If your customers will be eating the fruits while in your store, then you need cutlery items like spoons, knives, bowls, sieves, forks, cups and plastic containers.

*Display counter and shelves.* You need a display counter where you can be placing your fruits. Ensure that the display counter is neat and well organized.

*Plastic chairs or stools.* These are necessary if you intend your customers to be eating fruits from your fruit stall. Plastic chairs are less expensive compared to wooden ones.

*Fruits.* You also need fruits. The type of fruits to stock in your business depends on the demand. Some of the fruits you can stock in your fruit business stall include:

Bananas

Oranges

Pawpaws

Watermelon

Avocadoes

Mangos

Passion fruits

Thorn melon

Apples

Pineapples

Grapes

Strawberry

Pears

Pomegranate

Sweet melon

Tree tomato

*Packaging for Juice.* Whether you want to start a fruit juice business where people sit to be served or where fruit juices are packaged for take away; you will need to have disposable cups, lids & straws.

And here’s the catch – when you use these packaging materials, you can enhance your marketing by designing and printing your business name on the cups.

It’s costly & it helps spread the word about your juice business.

Plus, Kenyans appreciate if they can walk the streets sipping from straws of sweetness.

*Cost of Starting this business*

The cost of starting a fruit juice and fruit salad business depends on a number of factors like the size of your business, the type of fruits you want to sell and business location.

The rule of thumb is, to start small and then grow your business over time.

You can start a small fruit salad business with Ksh.20,000.

Business registration – Ksh.1,000

Business licenses – Ksh.10,000

Cutlery – Ksh.5,000

Display counters and chairs – Ksh.5,000

If you really want to start big with all the equipment and machines needed, a budget of between Ksh.50,000 to Ksh.100,000 will be enough.

*Secure the Necessary Business Licenses*

The following are the necessary business licenses required:

*Food Handler’s Medical Certificate.* A medical examination is required for all fruit handlers. They should be thoroughly examined to ensure they are free from diseases. The cost is approximately Ksh.600 bi-annually and is obtained from county offices.

*Food Hygiene License.* To get this license, you need the health officials to visit your business premises for inspection. This is the most necessary type of license for starting a fruit business in Kenya. For small businesses, licenses cost between Ksh.500 and Ksh.2,000.

*Single Business Permit.* You should get a single business permit from the relevant county government in order to legalize your business. The cost range for this license is between Ksh.3,000 and Ksh.10,000 per year.

*Market your Fruit Salad & Juice Business*

You need to market your fruit business effectively to attract customers.

You can market your business through social media, posters, or through your friends.

The best way to attract and retain customers is by offering excellent customer service.

Also remember to supply to people working in offices and other businesses in your area.

*Is a Fruit Salad & Juice Business Profitable in Kenya?*

While the only investment that you may have to put into this business is the money to buy equipment & the premise rent, profits guarantee in the end is very high.

Profits usually double or triple the amount you use on buying your fruits stock.

So you can easily make between Ksh.1,000 to Ksh.5,000 daily if you make juice and salad worth between Ksh.1,000 to Ksh.5,000 of fruits & sell everything daily.

There is a constant demand for juice and salad in Kenya and it helps if you can make the best natural juice & retain a huge share of the market.

It takes a shorter time to get all your invested amount back & start earning pure profits.

You can easily blend the juice and salad business with other small businesses – like cake sales, bottled water sales & other bakery and beverages products.

*Finally*

In order to start a profitable fruit business in Kenya, you need to maintain high levels of cleanliness in your stall.

Have fresh produce and ensure that your display counters are neat and well arranged.

It is also important that you understand the product and the health benefits it has to the body. This way, you can advise customers on the best fruits to buy.

As we always tell you, there’s no marathon race that has ever been won by those who did not start the race.

If you like the idea discussed above and you have what it takes to actualize it… then don’t wait to start… just do it.

Writte
By Timothy Angwenyi
Business Consultant

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