Are you interested in the food and snack industry then
starting a potato chip business is a good idea? Startup capital for this
business is small to medium and the model is generally a limited liability
company. The delicious food snack is popular in many countries and has high
demand.
Fast food is a major industry globally and involves
different snacks like biscuits, meat pies, doughnuts, hot-dog and potato chips.
Although the industry has major companies, small business owners are also
smiling to the bank.
All a small entrepreneur needs to do is carve a niche,
create a good product and use targeted marketing techniques.
The production process of potato chip making involves dried
and sliced potato and frying in hot vegetable oil. The process is simple
however chefs apply different spices and experiment with different potato
species.
The major consumers of potato chips are urban dwellers.
You can find the delicious snack as food packages and eaten at home, picnics or
schools.
Places to buy chips are restaurants, hotels, fast food
outfits and snack canopies.
Research
Menus
Anybody can make potato chips but finding the right
ingredients makes the difference. Potato chips also need an attractive
packaging for the product.
Create a good menu and select the type of potato you
like. Conduct market research learn the trade, and get the right equipment.
Find
a Good Location
Your business location is very important to reach
customers. If you locate your business at a shopping mall your customers are
the visitors to the mall.
The best locating are crowded urban areas or business
districts. Another way is to have a mobile snack bus for your business. Best
locations are shopping malls, stores or selling your product at supermarkets.
License
There are a few permits and licenses for food
manufacturers. You need to find out what is obtainable in your country. There
are certain health checks that are required for food vendors.
Register your business as a sole proprietorship or a
limited liability company. Your product would need an identification and
certification number from the relevant authorities.
Sourcing
the Product
Potato is your major product and is seasonal. You can buy
from wholesalers or retailers to reduce cost. If there is a farm in your area buy
directly from the farmer.
You need a steady supply of potatoes, oil, spices and
other condiments.
Potato
Chips Making Process
The process of making delicious potato chips is generally
similar in application. There are basically six steps to the process.
Select
the Potatoes
Select the potatoes you want to fry and do a quick
inspection. Potatoes like other root fruits are subject to diseases and
infestation. Thoroughly inspect them and sort them into groups.
Wash the potatoes by running clear clean water on them. Once
the washing is concluded peel and trim into chips.
Then cut and slice them into thin potato strip. Then
apply spicing and fry in soy oil or ground nut oil. The final process is
salting, cooling and packaging the chips.
To carve a niche make branded packages out of cardboards
and imprinted your brand.
Machinery
and Equipment
The major equipment used by potato chip makers is deep
fryers and knives. You also have the potato peeling machine and weighing
machine.
Other equipment is spin dryers to extract moisture and the
slicing machine. They use blanchers and electronic polythene bag sealers.
Potato
Chips Plant
There is much machinery that carries out the process
seamlessly. The chips are fried in some
plants for 6 minutes at a temperature of 180c.
The blanching time
is 7-15 minutes at a temperature of 70c. French fries are 8-10 minutes and
temperatures of 180c. Blanching time of 15 minutes at 70c
There are different types of potato plants such as automated
and semi-automate plant. Semi-automobile
potato chips plant caters for both small and medium sized companies.
Co-Packaging and Private Label
Co-Packaging and Private Label
To Jump start your Chip business with a co-packing
contract. Seek major manufacturers and secure a non-disclosure agreement which
allows you retain ownership of your product formula. You retain the rights,
formula and ownership of the product.
The co-packers produce a test batch for clients while
providing nutritional analysis and packaging for the export market.
Using co-packing arrangement leverages on the
manufacturers equipment saving cost on logistic, implementation and multiple licenses.
The private label right uses the manufacturer’s product
formula and ingredients. Major manufacturers save cost through outsourcing
their non core business to small manufacturers.
Conclusion
To reach your potential customers do lots of marketing.
Promote your product with advertisement and branding. Offer discounts,
competitions and attractive prices.
Taste is everything in the potato chip making business.
Try to create a unique and interesting taste, colorful packaging and effective
marketing.
Potato chip business is highly competitive but very
lucrative. Start small, master the trade and increase your out put and
production.
Large chip producing factories need lots of funding. The best
way if you want to go large is approach your bank manager for loan.
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