Starting an independent burger business is a huge challenge as means of competing with multiple well-known fast food establishments offering franchise as burger business. It;s important therefore that entering the burger selling competition it would be best to know why some succeed in winning the competition while others don’t. Studying the feasibility and profitability of a burger business are general terms that you need to thoroughly understand om every business undertaking.

 

Understanding Profitability in Relation to Standard Costs

Profitability starts with determining the basic cost of the burgers that are actually sold each day, to determine if they fall within the benchmark cost. If not, this should raise your awareness about paying too much for overhead expenses like labor costs, utility expenses, packaging costs and possibly, even spoilage.

According to Small and Medium Enterprise (SME) experts, the standard labor rate of a worker’s hourly salary follows the expected actual average hours worked to create a unit of product. Divide the actual number of products produced by the number of workers who produced the total units to get the standard rate. If a number of units produced by a worker is below the standard used in determining the labor cost, it denotes that worker is underperforming.

This is just a sample of what you, as an aspiring owner of an independent burger business should understand.

Paying for costs that do not generate the expected return means you must also focus on other aspects that can help you establish a successful brand of burger.

Citing Jollibee as an Example of an Unknown Brand to Make It Big as a Burger Business

A classic example of an independent burger business that succeeded in toppling burger giants like McDonald’s and Burger King is Jollibee. It’s the Filipino brand of burger that succeeded in establishing its own brand not just in the Philippines but worldwide.

In the mid-70s, Jollibee burgers were sold massively by a little kiosk in Araneta, Cubao because they were affordable for the ordinary daily wage earners. Everyday, commuters were attracted to the smell of hamburgers being cooked on hot metal plates. Anyone who passes by, just had to buy one before taking the long ride home.

The long and short of it is that Jollibee was able to carve its identity as a Filipino brand of food. Overseas Filipino workers across the globe pined for Jolibee food products as better alternatives to McDonald’s.

Moreover, Jollibee offered not only hamburgers and other fast food treats. It was also a home away from home since most customers can place orders while speaking in Filipino. Jollibee made it a point to employ only Filipino cashiers, servers and busboys.

Maintaining Cleanliness as an Important Feature of a Business

One of the strongest turn-off that can drive customers away from a restaurant, or a thriving burger business, are the dirty toilets and sanitation facilities. Service providers of plumbing companies restaurants call on, know the value of being available any time other than during regular business hours. Plumbing problems are best addressed after store hours to avoid offending customers further with foul odours and loud, noisy plumbing equipment.