How to Start a Concession Business (Karinderya)

A concessionaire is a person or firm who owns or manages the concession business.  They are the people behind a canteen – company office canteen or school canteen, or a refreshment stand or a burger and hotdog kiosk at a recreational center like in a sports event, carnivals, state fairs, and live music event – indoor or outdoor.  This type of business can be lucrative but it can be quite profitable.  They primarily serve the needs of the people inside the premises, as the crowds of such events are typically hungry more than willing to buy food or snacks. This kind of business is much less expensive and has minimal risks with stable cash flow than any other businesses because it has relatively low start-up costs compared to other which need a bigger building or a lot of staff or equipment.

Things to consider when starting a concession business

The most common concessionaire business is the one inside the school or inside the building.  People who are preparing to venture into this business should consider the following:

1. Determine the nature of business – it can be sole proprietorship, a partnership, or a corporation.

2. Determine the type of canteen you plan to set-up.

3. Estimate the capital requirements.

4.  Study the terms and the requirements of the canteen concession carefully.  The lease price is the most important consideration.  The price of the meals must be affordable too.  Take into consideration the required operating hours as well.

5. Check the initial contract period.  One year is the usual contract period and renewable upon establishment of a record of accomplishment of above satisfactory.

6. Determine your target audience – would it be an office or school canteen? Or do you want to take it just outside?  What kind of food are you offering them?  For example, you cannot put up a high-end coffee and donut shop where students will not be able to afford it.  Determine the prices of products being sold; it should be affordable for the consumers.