Roasted Suckling Pig Business Opportunity discovered by Francis Magellan!

500 years ago, Ferdinand’s Magellan expedition around the world was starting. Now, in 2020, is time for another Magellan, Francis, to make some discoveries in MAC.

Francis went to Norteshopping, passed by Forno do Leitão do Zé and while waiting in the queue (about 15 min) with 20 pax ahead of him, he observed and start thinking if it would be feasible to implement a business like this one in another country. The sale price of the menu was listed as per below: 

·        Suckling Pig Sandwich: €8,20

He started looking and predicting the costs and how many menus they would have to sell to reach the Breakeven Point:

Service / Cost per month	Fixed Cost	Variable Cost	Direct Cost	Indirect Cost
Rent (€5000)	●			●
3 workers’ wages per turn (2 turns per day) (€63000)	●		●
Director wages (€2000)	●			●
Crips Package (€0,20)		●	●
Meat in sandwich (€0,70)		●	●
Bread (€0,10)		●	●
Drinks (€0,40)		●	●

Having calculated the Total Fixed Costs, with the rent, and wages and the contribution margin with the variable costs (Crisps, Meat, Bread and Drinks) it was then easy to reach the breakeven!

Estimating an average of around 450 sandwiches sold a day, based in the queue peak time, is fair to say this business has some potential!

Francis thought if he was to apply this business in another country, he would have to have in mind discretionary costs (that could be easily changed in short-term) as marketing or labor training to increase is sales and committed costs (increasing the oven space in the restaurant).

All seemed good, but one more variable came across.. Would the sandwich be good? Nothing like taste it...

The feedback? Absolutely superb and a guaranteed success!