Establishing a public kitchen project

Business idea

Association for the Needy in Tira initiative to establish a kitchen in the city of Al-Tira in the Triangle and its goal is to provide a “hot meal” for school students and kindergartens in the countries: Qalansuwa, Al-Taiba: Jaljaleh, Kafr Qasim, and all countries that have the right to receive a “hot meal” within the school food program.
In addition, this kitchen will be activated to employ job seekers. And selling meals to families, institutions and companies in the country and the region.
The National Nutrition Project was activated in 2004 according to the government’s decision on 2/2004 and it serves primary school students in the societies that got the extension of the school day and this applies to the school days that end in the afternoon, and the decision also states that the school financing activities in 2005 – 2006. In order to implement this decision, a steering committee was established which approved the principles and rules for the school redemption program.
Today, the kitchen provides a hot meal for the 180,000 children entitled to it, due to the social and economic situation. It provides services to 105 towns and 140,000 school children, in addition to 38,000 children in kindergarten.
When adopting the recommendations of the Trachtenberg Committee regarding the nutrition project: another day (5 days instead of the current four) will be added, and the number of those receiving a hot plate will increase.
The Association for Change in Education is the financier who pays restaurants suppliers and there is no effect of local authorities on this payment system as it ensures the regular transfer of cash receipts.

Professional facilities

For the sake of the responsibility of the kitchen project, the association hired the services of a business consulting and financial support company, where it helped to establish a women’s kitchen that was built in the country of Hura in the Negev.

• This movement evaluated the practical program for setting up the kitchen in the south and continued to manage the projec
• We believe that the services and experience of this company in setting up and managing such a project will help us expedite the procedures and manage it properly.

The first stage

• In the first stage, food will be produced, the production volume is 10,000 meals per day, and it will employ 27 people, including 24 women, and at a later stage, to 20,000 meals per day, and about 40 people will employ them, including at least 32 women.
• The association will go to many social, governmental, and voluntary institutions to recruit the resources necessary to establish this kitchen.

Fixed property investment plan

The cost of the meal is in the packaged package

Sales

• The number of meals produced per month is 200 thousand
• The price of the meal was set by the association for the change in education and it is updated annually according to the weighting of different indicators. The sale price for each meal up to today’s date is 12.5 shekels.
• A, The sales volume is expected to reach about 2.5 million shekels a month
• The expected sales volume in the year – ten months – will reach about 25 million shekels
• The project will work in the short term to reduce the risks arising from the focus basket working with one client and heading to potential new markets in order to reach 60% of the food law, and 40% of new markets.

Activation expenses

Activation expenses – pensions and work fees

Monthly Salary

• The monthly salary of female workers – the basis of the salary according to the hours system, at a rate of 44 shekels per hour, workers work 10 months of the year, approximately 20 working days per month from Sunday to Thursday and 8 hours of work per day, the working day begins at 4:30 until 13:00 pm .
• Chef’s salary – a monthly salary, he works for 11 months of the year, and gets a salary of approximately 11,000 shekels total. The working day starts at 3:00 am until 13:00 pm.
• The monthly salary of a chef assistant – The base salary is a monthly salary that works 10 months of the year, a monthly salary of about 5300 shekels. The working day starts at 3:00 am until 13:00 pm.
• Professional employee working part-time job, 2750 NIS per month.
• Administrative work manager who works as an employee at a monthly cost of 12,000 NIS per month.
• 20% of the workers ’wages are added to the social rights that come under the law.

Attachments

• Calculating expected profits and losses
• Operating cash flow report
• Great repercussions
• Balance point
• Investment return period

Calculate expected profits and losses

• He is expected to provide a net surplus after tax, totaling NIS 3.4 million annually, with an expected sales volume of about NIS 25 million.
• The gross profit margin – after the cost of purchasing raw materials, packing and shipping – is 37%.
• Net profit rate is 19% after all expenses.

Operating cash flow report

• If sales expectations are achieved in the first year (i.e. the kitchen will start producing 10 thousand meals from the first day), it is expected to report on excess liquidity with banks, which amounts to approximately 1.3 million shekels.
• The data in the attached appendices assume that the kitchen will continue to produce 10,000 meals during the program (4 years), and ignore the initiator’s program to increase production capacity to 20,000 meals with the aim of emphasizing the economic viability of the project and the level of excess liquidity from 10,000 meals per day

Balance point

• A balance point means what is the volume of sales that leads to economic stability, that is, without profit or loss.
• According to the analysis of the project’s equilibrium point for the first year, the kitchen will have an economic equilibrium with sales amounting to 44% of expected sales.
• In other words, the sales volume is about 11 million shekels for the first year of operation of the project and achieves financial balance. The expected sales volume for the first year is 25 million shekels.

Investment Return Period

The expected investments in the project are divided as follows:

Investment in the field of construction and equipment – see details before – about 2.23 million shekels. Working capital financing is approximately 2.11 million shekels.

Total investment = 4.34 million shekels

Total investment = $ 1.17 million

Payoff = 2 years

Alhak and Reform Society, Association for the Needy in Need, Tira No. 580400919, Bab Al Khan Street, PO Box 2372, Workers Bank, Tirah Branch, 12506257061

We desperately need your donation to keep giving