How to Start A Pork Butcheries & Eateries Business in Kenya

Pork Butcheries & Eateries Business Plan (Kenya)


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This guide focuses on specialty small and medium sized pork butcheries and eateries which have pork as the core meal. The butchery and hotel can be each on their own or combined and operating under one roof.

The guide excludes hotels and butcheries which serve tens of other dishes and include pork as one of the general items in the menu.

To make it clear here are several ways in which pork is retailed at a small and medium scale:

Bicycle and Motorcycle Pork Hawkers – These are mobile pork retailers who take pork to the consumers. They usually transport the pork using tin or plastic containers.

In the rural areas the hawkers target farm workers, and small town centers, while in urban areas they aim for factory workers, market areas, bus stations, door to door homesteads in low income areas or anywhere there is a substantial number of people.

The pork sold by these hawkers is of low quality and at times include parts rejected by other traders and processors after pigs are slaughtered. These include the head, legs or skin. However sometimes pork proper is included. The pork is sold in small quantities with price ranging from as little as Ksh.10 all the way to Ksh.100 with most portions sold for Ksh.50 and below.

Pork Only Butcheries – Such only sell raw pork either through small kiosks or typical standard butcheries.

Pork Only Hotels – Simply these sell cooked pork only, mostly accompanied by Ugali and some greens. The most common method of preparation is to fry the meat. The definition of ‘Fry’ defers between various hotels. Some define it as dry cooked pork with no soup at all, while others add quite an amount of soup. Hotels with price points of below Ksh.70 tend to prefer the serving pork with a lot of soup, supposedly to compensate customers for the low number of actual pieces of pork. Roasted pork is increasingly becoming common.

Pork Butcheries and Eateries – A combination of the above two types, having a butchery section selling raw pork, and a hotel section where pork is cooked and served.

Barbecue Butcheries / Hotels – Eateries of this type seek to package themselves like large nyama choma dens. The pork is cooked in open spaces and in different styles.

Customers may select the raw pork that pleases them and have it cooked their way. A number of these barbecues hotels also serve alcoholic drinks and have swings, bouncing castles and other facilities to entertain children.

Related to these are pork eating clubs. Some run by pork butcheries owners or by individual entrepreneurs who organize a group of families, friends or just strangers for a day of pork eating in a pre selected location. These are common in central province.

Outside Catering Pork Services – In this group are traders who specialize in supplying and preparing pork barbecues during occasions such as parties, weddings, anniversaries. They specialize in pork.

Overview & Demand Trends

In the last seven years the number of farmers rearing pigs for income has increased. Though pig farmers are spread all over the country , the growth is more in parts of Central Kenya like Kiambu and Embu, peri urban areas of Nairobi like Ruai, parts of Rift Valley and Western provinces.

The increase in number of pigs has also led to the creation of more marketing avenues. Farmer’s Choice remains the largest single corporate buyer, the other part of the market, the informal one, is controlled by hundreds of brokers. It’s the brokers and farmers who have accelerated the growth of pork butcheries and eateries which alternative marketing channels.

Farmers will start butcheries and eateries because they want to earn more by eliminating the middleman who comes between them and the consumer. Farmers with high number of pigs also want to ensure that they have a ready market for their product, and in a way have a say in the market. Even more motivating for the farmers is that with their own butcheries and eateries the returns are higher; almost 100% more than what they could have gotten selling to a broker. These figures become under the revenue section.

Brokers purchase live pigs, slaughter and then sell to butchers and eateries. Others will purchase pigs for onward sale to Farmers Choice. While some will purchase pigs and sell through their own butcheries, this way they are able to command higher margins. Anyone running a pork butchery will become a broker of sorts: farmers will approach them seeking to sell their pigs.

On the consumer side demand for pork is propelled by a changing lifestyle which is driving consumers to seek alternatives to routine habits or shift to products that seem of a higher value either in taste or health benefits. Pork is white meat and thus follows has less cholesterol.

This is a trend that is set to continue for a long time as incomes increase; consumers become more socially exposed through interactions and education, and also more health conscious.

Of signficance is that there are now better and many ways to prepare pork. Its not just a chunk of fatty food in a plate full of oily soup. It could be fried, roasted or cooked in any of the many modern and experimental methods. This has made pork a delicious attrative meal which in some places is competing with beef. It is now cool to eat pork.

Whatsmore , with many of the modern farmers pigs are not just dirty animals, well they have their share of filth, but there are many which are nothing like the tradiational mustbedirty pigs. This has made many more consumers embrace pork eating.

Despite the positive signs consumotion of pork is yet to reach that of beef. Pork is still an alternative meal, and yet to become mainstream as beef is.


The very basic licenses required to run a pork butchery and eatery are:




Cost and Body




Single User Business Permit

This is issued by county

The cost of the license varies




governments to all businesses

from one county to another . It




operating within the county.

will also vary with the size of






the premises and location






within the county. The cost






could be as little as Kshs.






5000 to as much as







Kshs.20,000. The bigger the






town the higher the cost.






Budget at least Kshs. 15,000






for the license.




Public Health Liceses

This is a necessity for all

Budget at least Kshs.3000 for




establishments selling food.

this license.





Its issued by the public health






officer (or related officials ) at






the county level. Usually they






are based at the county






hopsitals or related offices.






The officials look at the






hygeine coditions of the






premises. These include






drainage, toilets for the staff,






water and relaed factors to do






with health. Often public






health officials are not very






very strict and some will turn a






blind eye or geeraly












improvement.Some eateries






will also operate without the






license . The flip side of this is






that once in a while public






health offiicers will go round






conducting inspections. At






such times if you don’t have a






license you have to close your



















shop until they are gone.



Sometimes you will be caught



, and the public health officials



will likely ask for a bribe. In



major towns Its very



inconvienient to operate



without a license.


Medical Health Certficate

This is issued to all me

Each worker should budget at


workers who are handling

least Kshs. 1500 for the


food. The main purpose is to



ensure that the workers do not



have ay communicable



diseases that they can spread



to customers .The certficate is



issued at a personal level. So



stress to those you plan



employing to have the



certificare. The certficate is



issued at the local medical





Fire Inspection License

All business premises are

Actual cost will vary from


required to have a fire

county to county, budget at


extinguisher. But even beyond

least Kshs. 2000 for the


the legal requiremets its safe



to have an extingusiher if you



are running a hotel. County



government officials usually



inspect the premises to make



usre you have the right kind



and number of fire



extingusher s. After they issue



the certficate


Outdoor Advertising Livense

If you are going to have a

Cost will vary with the county


billboard announcing your

and the size of the board or


eatery or butchery, or simply

sign that you will be using.


painting a name on the out

Budget at least Kshs.4000 for


wall, you need a license from

the license.


the county government .



Before buying equipment decide on the setup you want.

At the beginning we stated the various versions of pork eateries. For purposes of this guide we are going to use the example of a midsized pork eatery selling raw and cooked pork.








Weighing Machine

The scale is used to weigh

Prices of scales vary with the




raw pork for customers. And

quality, supplier and brand.




also weighing the portions to

Budget at least Kshs.10, 000




be cooked, well when they are

for a digital scale. Actual




actually weighed. You know

prices of scales range





like quarter.

Kshs.6500 to Kshs.10, 000.




Nowadays digital scales are

Manual scales average Kshs.




preferred by both customers






and butchers. Digital scales






are flexible enough so that a






customer can order by






amount and not necessarily






by fixed quantities. Digital






scales are also faster and






easier to use. The alternatives






to digital scales are the






traditional manual scales,






where “stones” are used to






weigh. These are quickly






going out of fashion.





Chopping Board / Tree trump,

The chopping boards, tree

Budget at least Kshs.5000 for



hooks, knives, chopping axes

trump is used to place the






pork when cutting bones or






various sizes.






The hooks are for hanging the






carcass for display and






storage, the knives and axes






are for chopping the meat.






The file is for sharpening the












Chairs and Tables

Customers will need to sit

Plastic chairs start from Kshs,




while eating the pork. There

500 each. The exact price will




are no specifics in type and

depend on the supplier.





quantity. The exacts will

Metallic chairs will start at




depend on the setting of the

Kshs. 1200, the exact will also




hotel and your budget. For

depend on the dealer in this




instance if you are in a small

case blacksmith. More



















room having the common

comfortable chairs with a




plastic chairs with arms will

comfortable resin backrest




consume, no pun intended,

and seat start at Kshs.2500.




so much of your space that






the place will feel crowded. It

Simple metallic tables start at




also limits the number of

Kshs. 3000, fiber table start at




tables that you can fit in.

Kshs. 5000





Same way bulky round plastic






tables. These could be






appropriate when you have a






bigger space.






Apart from the plastics






metallic low chairs are the






commonly used. Some






eateries use wooden forms.






Think customer comfort, and






the setting when deciding on






the chairs. Make the same






considerations about tables.






Remember tables are






supposed to have a smooth






easy to clean surface. Metal






chairs will do fine especially






because they don’t take up






much space and are easy to






move. The number of chairs






and tables you require will






depend on the size of your






sitting area. For a hotel of 3






meters by 4 meters, excluding






the butchery and kitchen, can






hold 4 tables, with four chairs






per table. Meaning a sitting






area of at least 16 people.






Plastic tables and chairs can






also be used if you have






enough space, or prefer






readymade solutions for the






furniture. Consider the






durability of the tables and






chairs, comfort and






possibilities of






accommodating more chairs if






business picks up sooner than






you expect.





Cooking Apparatus

Source of Fuel – The source

A 6 kilogram gas cylinder with




of fuel will depend on the

burner averages Kshs. 6000.




setting of the hotel. For

A two burner cooker start at




instance in small one room

Kshs. 3000





hotels where there is only a




















table or two outside then a

Commercial jikos , with bigger




gas cooker, or something as

capacity start at Kshs.60,000




simple as a meko is sufficient

while normal jikos, which you




for you don’t want to have too

can start with average





much smoke and carbon






dioxide due to poor air






circulation . Also if you are






working in such a way that






you only prepare the pork on






order then a gas is sufficient.






In reality, and in some






situations, gas is more






efficient than most imagine






possibly. On the other hand if






you are operating a fairly large






kitchen where there is an






expected constant flow of






customers, then charcoal or






firewood becomes a more






economical option. You have






to keep the food heated, and






cook more as need be.






It’s preferable to have a meko






and a jiko. If space , labour






and wood supply allows then






you can have firewood. It’s






relatively hectic to cook with






firewood, because not only is






it not easily available in some






places, but you also need to






split it and have proper












Some small pork eateries start






with a single meko and






increase facilities as need be.






At the least have three






medium sized jikos.





Cooking Utensils

A standard pork eatery will

Budget at least Kshs. 2,000




serve pork, Ugali and greens.

for a set standard sufurias.




So at the very least you would

Commercial sufurias with at




need three sufurias. But then

least 100 liters start at





you can’t have one for each.

Kshs.15, 000 each. And you




You need to store, cook more,

need at least three. Still you




and cook different e.g. fry and

can start with standard 20




boiled, different greens like

liters sufurias. Set aside at




sukuma, managu or cabbage.

least Kshs. 9,000 for all other




This means at the very least






you should have six sufurias






of different sizes.






You also need things like




















cooking spoons, serving






spoons, mwikos, jugs, bowls,






basins and the related.





Customer Utensils

You need plates, spoons and

Price will depend on the




cups to serve the customer.

quality you go for. Budget at




For a start look at your sitting

least Kshs. 5000 for utensils




space and make sure there

enough to serve 20 people.




are at least two of each at






every sitting space. Look for






good quality spoons and






plates and cups which are






easy to clean so that they






don’t end up being oily.






Metallic and melamine plates






are preferred. Avoid plastics.






You can use plates for various






psychological tricks like






shallow but wide plates to give






the impression of more.





Tap and Sink or Washing

Customers need a place to

Budget at least Kshs. 7000 for




wash their hands. If there is

tap and sink. Of course there




good flow of water and the set

will be related cost say of




up allows then a tap and sink

piping if need be. Though the




is great. If not then you need

exact cost could be higher




to have a small tank, and tap

depending on the type of sink




placed at a convenient place

and the plumbing required.




where customers can wash






their hands.

A 50 liter plastic tank, affixed






with a tap averages







Kshs.2000. There are more






fancy tanks, attractive to the






eyes and with a sink affixed to






them which are priced from






Kshs.5000 for a 30 liter tank.




There are a variety of other

A fan could cost Kshs. 5000, a




smaller items that could

mirror at least Kshs.2000. A




enhance the place. For

20 liter mutungi averages




instance a fan helps make the

Kshs.2000. You can budget




air less stuffy and hot. A

Kshs. 10,000 for the extras.




mirror helps since customers






want to look at themselves. A






tank and mitungi will be handy






especially if there is shortage






of water. Extra chairs will be






needed for the workers and











Customer Extras

These include things like

Budget at least Kshs. 3000 as




soaps, serviettes and

you are starting.










Operational Extras

Receipt books, record books,

Generic receipt books start at

















padlocks, dusters, mops,

Kshs. 30 each and are sold at


brooms, soaps, aprons, menu

the supermarket and



stationery shops. Hardcover



books start @ Kshs. 130,



good padlocks will average



Kshs.1200. A mop and handle



will cost Kshs. 1500 at the



least. You can budget



Kshs.4000 for the rest of the




Advertising Board


Budget at least Kshs.12, 000



for a decent 1m by 1m board.

Fire extinguisher


Extinguishers vary with size,



budget at least Kshs. 5000 for



a 4kg extinguisher. Prices can



go down as Kshs. 3000.

Premises Setting

When choosing your butchery and eatery premises consider:

-Accessibility and Visibility – Should be easily accessible and visible. Someone walking around can see it and access it without difficulty.

-Foot Traffic – Should be in an area with high foot traffic that is if you are targeting the mass market. You could also look for places with economies of location: area within a town known for pork eateries. Consumers seeking pork will tend to go to the area, and you should be able to capture some of them. Foot traffic does not necessarily mean crowded, but with a high number of the target market.

-Facilities like water and electricity

Rarely will you find a premise good enough for your pork butchery and eatery. You will need to renovate it to suit your hotel.

The common and usually a good way to set up is to have the butchery at the start next to the entrance. The butchery doesn’t require a lot of space. Whoever is the cashier could sit next to the butchery near the door. Ideally the tap and sink should also be near the entrance or a corner where there are no customers. The kitchen could be at the furthest corner; at the end. There should be a wall separating the kitchen and the eating area. Cooks like their privacy. And it’s not always a good idea to let customers see the chaos in the kitchen.

The above is a standard template, and the most common. Specifics will depend on the shape of the room, traffic flow and related business or facilities in the area. In all cases the idea is to make the flow as easy as possible.

The butchery should be near the entrance so as to make it easy for customers who want to purchase raw pork just to walk in and do it without having to go deep into the hotel. There could be even a window/ counter facing the road from where customers can buy raw meat without having to enter the hotel.

The kitchen also works best when it’s at the furthest. You know remaining with its air of mystery and privacy that is required in the kitchen.

But beyond the setup you need to renovate the building. This could involve things like painting, floor tiles, illustrations to make the place lively and branding the outside.

The cost of these will depend on the state of the premise, what you want and what the landlord allows. The renovation should be with your target customer in mind. It should be aimed at making work easer, such as cleaning the floor or serving food.

Major Steps Setting Up

Identify Location

Identify Premises

Identify Pork Sources

Renovate Premises

Acquire Licenses

Buy Equipment

Hire Staff

Decide on Menu

Start Operations

Some of the steps above can happen concurrently. Like acquiring licenses as you renovate.

Pork Sources

By law pork (or even beef for that matter) should be sold only after a veterinary officer inspects it and declares it fit for human consumption. The proof of this is the veterinary stamp on the pork’s body.

If found selling uninspected pork then you risk jail and your eatery being shut down. Worse still if the pork had some disease then it could poison your customers. Word spreads and that will possibly be the death of your business.

(Well any veterinary officer, even a private one, can inspect a pig and declare it fit or unfit for eating. But if the pork is for public consumption the government wants it inspected at a central point. This is to avoid cases where an individual slaughters pigs at his home, and sells without having it inspected. If caught or there are cases of food poisoning he says well some veterinary officer inspected it for me. And he can’t even name the person)

This means that the best place to purchase pork is a slaughterhouse. Although many slaughterhouses are run by private investors, they are closely monitored by veterinary officers; and work hand in hand. Rarely will you find pork sourced from a slaughterhouse not stamped.

Another good reason to buy from a slaughterhouse is that you have adequate supply and options on quality and price. This is more so when you are a beginner and without your own pigs or very clear idea of where to source the pork.

To get a better understanding of the business let us illustrate with an example which captures the general working of a slaughterhouse.

Say for instance a farmer has three pigs he wants to slaughter and sell. He transports them to the nearest slaughterhouse. The slaughterhouse provides facilities like a certified area to do the actual slaughtering, staff to slaughter, easy access to veterinary staff and even a sort of marketplace.

At the slaughterhouse the farmer pays a standard fee which is the cost of slaughtering and inspection. The fee varies but averages Kshs.400 in peri urban slaughterhouses. On payment the pigs are passed onwards to the slaughter men. Often these are casual workers on a daily wage. In some few cases they are permanent staff on monthly salary. The men, for they are all men, in as little as 20 minutes.

During the slaughter the farmer can either stand there or just trust them. The latter is seen as a bad move. Often the men will try to steal; cut chunks of pork and hide in their gumboots, troughs with feaces and blood, aprons or even their underwear. They will later sell these chunks at low prices to small scale hotels and butcheries or even some reputable ones who want to make a quick shilling.

On slaughterer the farmer is given the head and feet. Its also common nowadays to remove the skin; many consumers don’t like the skin because it contains too much fat. He can sell the skins and head at throw away prices to the small traders. Others will fry the skin and sell separately mostly in the evening outside the eatery. There are also people who buy the skin and head for dogs . In some cases the pig owner will give the head and skins to the slaughterhouse owner in lieu of the slaughtering fee.

That done, the rest of the pig’s body is inspected and if it alright stamped. If not then it has to be disposed, and in addition the farmer at times has to pay the veterinary officer a fee; yes for trying to ‘sell’ infected pork.

Now the farmer has his slaughtered pig, which is now referred as pork, ready. Most slaughterhouses will have informal market places where the farmer will hook and display his pork and wait for buyers.

Buyers are butchery and hotel owners. They will look at what on display, looking at things like the fat content, how lean it is, how tough it is and such other attributes. If pleased they make an offer, which of course is within the prevailing market prices. In many cases there will room for slight negotiations.

Now instead of the farmer it could be a broker who has bought the pigs from the farmer and is bringing them at the slaughterhouse to resell at a higher price.

The alternative to this is where the farmer or broker brings his pig to the slaughterhouse, have it slaughtered and inspected, but instead of waiting for the butcher he takes the pork to his own butchery or eatery. The broker could also be selling to a butchery or eatery owner for onward sale to consumers.

Again, and this is pretty common, the butchery owner could have bought pigs from farmers or even his own pigs, takes them to the slaughterhouse , have them slaughtered and stamped then takes them to his butchery.

Because of limited capacity butchery and eatery owners will have a person going round in the locality trying to negotiate deals with farmers. Buying directly from farmers earns the butchery owner higher margins, although it requires more effort. When buying live pigs for the informal mass market, weight is the key consideration. And it’s a fact that most farmers can’t tell the weight of their pigs. On the hand a broker or a butchery owner or any other experienced person can look at a live pig and give a very good estimate of how many kilograms it will be when slaughtered. This means that often brokers and butchery owners shortchange farmers, and thus earning even higher margins.

In summary to get pork in wholesale:

Start with the nearest pig slaughterhouse..You will get farmers, brokers and many people more than willing to sell you their pork. In many cases it’s an open market; walk in, walk out. Like in any business there will be people willing to take advantage of you simply because you are new. You have to be street smart. Know the prevailing prices in the area. All pork has fat but balance between too much pork and lean meat.

Sellers who have been in the business for long might tend to favor more established butchers. But then in an open market you negotiate your way in or out. Sellers will also favour those who buy in large quantities. Don’t be under pressure to buy more than you need especially at the start; you can begin slow, observing the market and increase the quantity as your business gets traction.

We have listed some specialist pork slaughterhouses below. However it’s important to note that with the increased number of pig farmers rules have changed and now pigs are slaughtered even in some cattle slaughterhouses.

Pig slaughterhouses have the advantage of having a wider variety, more information on prices and generally this and that about pigs and pork.

If you are a farmer then you can take your pig to the slaughterhouse and sell the pork at your hotel. The alternative is to use brokers. You agree on a price and the broker delivers to your butchery. In areas with many pig farmers you just ask around and you will be connected to a broker. Many brokers tend to have a favourite place where they ‘hangout’

In areas without an abundance of pork you have to look a little harder. A good starting point is always the cattle slaughterhouse, the other is look for veterinary doctors, independent or civil servants. , May times they have contacts of farmers rearing pigs or pig markets in the area.

When you open your butchery and hotel you will definitely get offers from farmers and brokers seeking to supply you with pork.

Look for specialist slaughterhouse

Look for cattle slaughterhouses

Look for farmers / brokers

Wait for farmers and brokers to approach you

Some Major Pig Slaughterhouses

Datfarm – Ridgeways Kiambu Road

Kitengela Slaughterhouse - Kitengela

Ndumboini Slaughterhouse – Ndumboini, near Uthiru, Waiyaki Way

Utugi Nakuru


There are many slaughterhouses all over. If you are stuck let us know and we will try give directions to the nearest.


The main operations of a pork butchery and eatery are:

Buying pork from the relevant suppliers – Which we have covered this above

Deciding on quantities that will be sold raw and also as cooked - Cooked pork will go bad sooner than raw pork. Thus it’s important to start by cooking smaller quantities and as your customers increase cook more. You have to be flexible such as that if you observe there are more customers than you had anticipated you cook more. In an effort to control theft some eatery owners who are not involved in the day to day running of the butchery set fixed amount on what should be cooked daily, and if the amount runs out then the staff have to turn customers away. If you cook on order then this should not be a problem.

Weighing and cutting the quantities for cooking – Say if you are going to cook five kilograms then you need to weigh and cut the meat. Often when you are cooking for many people you will not do it quantity by quantity, say quarter by quarter, rather you will cook all of it in a sufuria. Then when a customer orders a quarter of ready pork you use the serving spoon or size of plate to measure. It’s not exact weight when compared to selling raw pork. Still, to reduce theft you should know the equivalent of plates that comes from a particular weights. For example five kilogram serves this average number of plates.

Weighing the raw pork as per customer order and getting paid – This is in the butchery and is straightforward. A customer walks in and orders a kilogram of pork. You cut weigh and give the customer who pays. Some customers will want the pork chopped for them, and you do it. Sometimes customers will want only the lean pork without the fat. But if you give them so much leeway then you will be left with large chunks of pork that you can’t sell. You have to give both the fat and lean meat. Alternatively do as some butcheries and sell lean, fat free pork at a premium.

Cooking the pork, cooking ugali, greens and others - This is the actual cooking which depends on your menu. There is sometimes a system to this, which you can suggest or let the cooks decide based on what works best for them.

Taking orders from customers and serving them – Then there has to be someone, a waitress or waiter, on the floor who takes orders from the customers and conveys to the kitchen. The kitchen loads the plates and waiters serve the customers. The exact operations of these will depend on the size of the eatery. The key is to be as fast and efficient as possible so as not to keep the customers waiting

Getting paid by the customers – Its best when there is only a single cashier receiving money from customers. Accounting and accountability becomes easier that way. How then does the cashier know how much each customer spent? The simplest way and which is used in many establishments is to have the waitress issue the customer with a receipt showing the amount to pay. When paying the customer gives the cashier the receipt. In smaller five person establishments, this is not necessary as one person is able to monitor the customers no matter the number.

Cleaning the floor and utensils - The floor, utensils and general environment should be kept clean at all times. Sometimes it’s not possible to have everything spotlessly clean but a decent level of cleanliness.

Accounting and Reconciling – At the end of the day it’s important to go through the day’s sales, expenses and stock. 15 kilograms of pork were sold; does it correspond to the cash at hand? How many kilograms of unga were bought or used today? What is remaining?

Daily reconciliation helps you to discover any revenue leakages, see the progress you are making, keep track of expenses and income, and also see areas to improve on. The longer you stay without reconciling the higher the risk of revenue leakages. Keep good and proper records.

Cooking Pork – There are various ways in which pork is prepared among small and medium scale eateries. We highlight two which are very common. One is to weigh quarter chunks of pork, deep fry them, then put them in polythene paper bags which are placed in a tray on the counter. A customer walks in and picks one of them; the one that pleases them. The pork is the cut put in a plate and served with some kachumbari, ugali. In this case the quarter is almost exactly a quarter.

The other common method is to dry fry and serve per plate. In this case the pork is fried, when a customer orders, he gets a plate with pork, some greens and ugali. Though it will be referred as a quarter, it’s not exactly a quarter. Depending on the hotel a quarter will serve two plates or one and a half plates. The price of the plate will be more or less that of the real quarter. It follows then, keeping everything constant, this method could net more profit.

Capital Breakdown





























Single User Business Permit







Public Health License







Signboard License




2, 500



Medical Certificate







Fire Compliance License







Sub Total




























Digital Weighing Scale







Chairs (Plastic)


20 @ Kshs.700.






4 @ Kshs.3000




Knives , Axes, Chopping boards/log, Hooks, Aprons



8, 000



Cooking Apparatus


Meko and Jiko




Cooking Utensils







Customer Utensils







Sink / Tank























Extras ( Mirror , Fan etc)



Customer Extras ( Serviettes, Soaps, Toothpicks etc)



Operational Extras



Advertising Board



Fire Extinguisher



Sub Total







60 kilograms @



Kshs.240 per kilogram












2 months deposit + 1



month rent. Will



depend on location.



(@ Kshs.15,000 per





Renovation and Remodeling

Repainting and any





Sub Total






Working Capital







3 months @



Kshs.8000 per month



per worker



3 months @



Kshs.1500 per month





Sub Total









Grand Total ( Adding all the above sub totals)



Notes on Capital

The above are guidelines based on market prices October 2016. Actual figures will certainly vary depending on the supplier and specific of what you want.

You can start with lower capital depending on your setup. For instance the rent could be lower, you can start with just six seats and a table, your working capital could be lower. Extras such as fans are not a must when you are starting. The converse is also true depending on the scale and setup.

It’s a good habit to have working capital when starting. The first few months are a little uncertain, and as much as you plan there will be unexpected expenses. Then it’s unlikely you

will break even in the first month, so you need money to pay salaries, water, electricity and other expenses.


Prices and Margins

Retail Price of Raw Pork ( Average )

Kshs. 400 per kilogram ( Range Kshs.360 to





Price of Cooked Pork (served with ugali +

Kshs. 90 to Kshs.150 per quarter though some


of the low end sell portions of Ksh.30.



Wholesale Price of Raw Pork Meat

Kshs. 180 to Ksh.240 per kilogram with an


average of Ksh.200. Plan with Kshs.240.



September 2016 averages.

Notes on Revenue

As can be seen from the above the average wholesale price of pork is Kshs.200 per kilogram while the retail price averages Kshs.400 per kilogram. There are slight variations to this. Gross margins thus are Kshs.200 per kilogram. But there are expenses tied to the operation.

Simply this means the way to increase your profits is to sell more quantities while keeping your expenses low.

The major expenses will be:






Stock – Pork, Flour, Cooking Oil, Greens and related.


Miscellaneous – Soaps, serviettes, toothpicks, receipt books,

From the figures above a quarter of raw pork is Kshs.100 while that of cooked pork could be Kshs.140 (served with Ugali). Now if you consider the cost in labour, inputs and time is the extra amount, Kshs.40 in this case, worth it?

The main purpose of cooking is to move more quantities of pork. To attract those customers who would have not bought the pork if it were not a meal; if there was no ready pork an

employee on lunch break would have opted for something else, say beef. By cooking you are able to capture this consumer who otherwise would have been lost. You provide the convenience the consumer is seeking and by that you make a sale. Hence pork butcheries with an eatery and located in good places record higher revenue.

If you deduct labour, fuel, rent and the related expenses almost half of the Kshs.40 extra gross margin in cooked pork is eaten up. Margins average 12% depending on the efficiency of the operation.

In some eateries the margins from cooked pork are above average because a quarter of cooked pork is not necessarily defined as 250 grams, the amount could be lower say 200 grams or even 125 grams in some cases. This almost doubles the margins.

The difference between the actual quarter and the “plate quarter” is ‘covered up’ by using various tricks. These include using shallow wide plates which give the impression of plenty or having too much of the extra say ugali, at the expense of the pork, serving with higher quantities of soup.


Price based on your competitors, if any, and the prevailing market prices

Consider costs such rent, operational expenses and the wholesale price of pork.

Consider any differentiation you have and if it’s worth charging a premium. There are eateries which charge a premium simply because of the way they cook the pork or the aura of the hotel.

Consider the location. If you are in a strategic location or with a monopoly of sorts you can add a premium compared to equivalent markets

In centers with more than one pork eatery the difference between the highest and lowest price of pork, raw or cooked averages Kshs. 10. When unsure go with the prevailing market prices. Since 2013 the price of pork, raw and cooked, has been increasing by an average of Kshs.10.

Aggressive price based competition is not common. There is no advantage in charging the lowest price, more so if you are operating from a good location or the quality of your cooking is great. Usually eatery owners set the price based on what they believe is the level of quality of the pork they sell, the competition, the cost of acquiring the pork and value of their location.

As more eateries open price based competition will increase up to a point where it will no longer be possible to profitably manipulate price.

There are butcheries which charge extra for lean pork which either means ‘fatless’ pork. The amount could be as much as Ksh.80 so that a kilo sells for Kshs. 480 instead of Khs.100. This helps attract customers who usually avoid pork because of the fat.

Factors Influencing Revenue

Expenses – The lower the expenses the more the higher the margins.




Pork Eatery Case Study

Now some actual figures from a Pork Eatery in Kiambu County

The eatery is located behind a market in a busy center. Though the market is open every day there are two market days every week. There are six pork eateries in the center, with the nearest about 100 meters away. Within a radius of 20 meters are 7 beef butcheries and 4 bars.

In addition to the normal businesses that are found in any medium sized town the center is also host to over 10 financial institutions, several small colleges, private and public schools. It also hosts government offices, county government and a police station. There is also a level 2 hospital and several private clinics. The center is also a transitional point from smaller rural towns to Nairobi.

The eatery was started in 2009 and sells both raw and cooked pork. It’s housed in a room 4 meters by 4 meters. Behind this is another room 3 meters by 3 meter which serves as the kitchen. A section about 1.5 meters by 1.5 meter, at the entrance, is portioned and serves as butchery. Next to it is a small table where the cashier seats. There are 4 midsized tables and a total of 18 chairs.

There is a butcher man who sometimes also helps in the kitchen, permanent cashier, two waitresses and two cooks.

Rent is Kshs. 14,000

The four tables cost an average of Ksh.4, 000 each.

The chairs are metallic qualities averaged Ksh.700 each

The electronic weighing machine cost Ksh.20, 000. Prices have since gone down to an average of Kshs.10, 000.

He started with utensils worth Ksh.5000 but has increased the numbers with time.

Other cost involved in starting the business are a business license which cost Ksh.7, 000, Public health certificate which cost Ksh.3000, costs of portioning, installing a sink and other such related items.

Total amount invested to start the business was Ksh.360, 000

The proprietor sources pork largely from Datfarm slaughterhouse, Ridgeways along Kiambu Road. He also rears some pigs and purchase from individual farmers. The wholesale price mainly ranges between Ksh.210 and Ksh.240 per kilogram. There are times he is able to acquire pork at Ksh.170 per kilogram.

He sells a kilogram of raw pork at Ksh.400 and Kshs.480 for lean pork. Ready cooked pork is largely sold in quarter portions. A quarter of pork accompanied by a sizeable ugali, and some greens goes for Ksh.140. Without the ugali the price falls to Ksh.120 per quarter or Ksh.480 per kilogram. The pork is fried with only some very little soup.

At the end of the day he sells more of the cooked pork than raw. It’s important to note that the quarter of cooked pork is about 150 grams.

Sales on a Friday September, 2016

Raw pork – 42 kilograms (42 x Ksh.400) = Kshs.16800

Cooked Pork – 168 plates ( 168 x 140 )= Kshs.23520

Sales are not constant. The eatery records the highest sales during market days. The lowest sales recorded were 18 kilograms of raw pork and 76 plates.

Major Monthly Expenses:

Rent – Ksh.14, 000

Salaries (7 Employees) – Kshs.68,000

Electricity – Average Kshs. 3,000

Water – Average Ksh.2, 500

Miscellaneous - Kshs. 6000 average

Competition and Survival


Like we mentioned at the start the number of pork butcheries and eateries has been on the rise in the last four years. The number will continue increasing as more entrepreneurs get into pig farming and seek more marketing channels.

The fact that a large number of the pork butcheries have opened in the last four years, with almost a third of them coming into operation in the last two years shows the market is growing and opportunities still exist. This is further reinforced by the relatively small number of butcheries closing as compared to opening. The ratio depicts a growing market.

At the present rate of growth it’s safe to predict that the market will be fully mature and saturated by 2019. (In this case think saturation as the present state of beef butcheries).

Demand, as we noted, is increasing as more consumers embrace pork as a modern alternative to beef.

Among other things saturation will mean that all locations will be fully served, there won’t be much room as exists presently to play around with price, and margins will be lower. This however is assuming all relevant factors will remain constant and there won’t be any drastic changes say in policy that affects the rearing of pigs or an extreme reduction in disposable income in turn affecting the amount spent on meat.

Despite these rosy prospects there are cases of pork eateries and butcheries closing down. The reasons have to do the usual challenges of running a small business.

Pork is a perishable product and if you don’t sell enough and your stock keeps remaining then it accumulates and turns to real losses which kill the business. Of course you can have a freezer as a mitigating measure, but in reality this won’t solve the problem of poor sales. Then you can only store the pork in the freezer for sometime before it loses the glow of freshness and customers avoid it.

Reasons for Poor Sales

So what will cause poor sales? The basics.

Poor location - This could mean you are in a part of town with low foot traffic, not easily accessible, or where the business does not meet the needs of the target customers. As mentioned such locations could for some time lead to losses, low returns or extend the breakeven point. And though in most cases the shortcomings of a poor location could be overcome with time, severally the owners didn’t have enough capital or patience to run the business until they got better returns.

Poor quality of food – If the pork is cooked poorly then customers will not come back. Poor could mean many things from undercooked, tough pork, too oily or anything of sorts.

Mismanagement – Mismanagement could do with lack of control in managing expenses, poor procurement, and staff discipline. All these add up until the business cannot take them anymore.

Losses – Direct losses happen when there is theft, poor controls, sourcing expensively.. all these munch the margins until there are no profits at all. Manage expenses for instance don’t pay too much for rent if it does not correspond to expected returns. Don’t source poorly or have workers who are not adding value to the business.


Before sampling pork from a particular eatery a customer assumes that all pork is the same. Thus location is important especially when starting the business. Location gives the exposure required for customers to get a chance to experience your pork, your business.

A good location also draws in the initial batch of customers, who if well treated can be converted to loyal customers. A good location also reduces the time it takes to break even.

Even when customers are not loyal, and probably your quality and service not great, a good location will ensure a continuous flow of new customers. This way the business remains alive despite its weaknesses. Location however does not guarantee good returns and growth of the business; these are a function of satisfied customers.

An imperfect location is only a drawback in the short run. In the long run the disadvantages of a flawed location can be overcome. For instance by creative marketing or better still by making sure each and every customer who walks to your eatery enjoys the experience and comes back again. With time there will a number of customers big enough, who will spread the word. The eatery will gain a great reputation so that the ‘poor’ location no longer matters. However one needs to have enough capital to sustain the business until it turns a profit. At least enough capital to run the business for at least 3 months.

Dominant Players

The domination of the pork business by a few traders is becoming quite common especially in Central, Rift Valley and Eastern provinces. The motivation for this is to simply grab as much market as possible so as to lock out competition while locking in the profits and enjoy benefits of scale. The normal way to do this is setup pork eateries in several strategic areas of a town.

The dominant player has advantages in being a more recognized ‘brand’, understanding consumers and having efficiencies in supplies. This does not mean that the new entrants can’t win a section of the consumers, they can. The dominant player can’t be in all deserving locations.

Innovation in terms of recipe and setting can help your business gain significant market share to make good profits if not dethrone the dominant player. Your aim should be to win enough customers to make the business sustainable.

Barriers to Entry

Barriers to entry in the business continue to go low. Previously one of the biggest constraints was supply. However with the number of pig farmers increasing supply is a relatively minor constraint.

Of course supply is not uniform; there are areas which are oversupplied while others are undersupplied. And the supply bottlenecks tend to correct themselves at a cost on the deficit areas.

A shortage of pigs exists in some areas, and sourcing them from long distance away results in relatively low returns for the investment. You can only raise price up to some point. Figuring out the source of pigs/pork should be a key consideration before setting up the business.

Supply as a barrier serves to lengthen the time it takes to break even. If the owner does not have enough capital to sustain the business until he figures an efficient way to overcome the supply hitches then the business collapses.

Capital has and is still not a high barrier to entry. As little as Kshs. 300,000 is enough to start a decent pork butchery and eatery. Though there are more pork eateries which are setting up in a hip manner, the traditional a little bit rough pork butchery still rules.

Perceptions about returns in the business and doubts about market reception have previously played a role in the limiting the number of eateries opening. There are places where consumers were skeptical about the health benefits and dangers of pork. But pork as a healthy alternative and the pork eatery as a business have been validated by the numbers that exists and their success. Perceptions are changing favorably and more people are willing to invest in the business.


Differentiation in the business is based on:

Recipe- Eateries try to differentiate by how they prepare the pork. There are now several creative and inexpensive ways to cook pork. Each is aimed at making it best, better than the competition and getting customers hooked. A great recipe is one of the most effective ways to win and keep customers.

Even in locations with one pork butchery it pays to build the loyalty from the start because eventually competition is bound to come in.

At the present rate of growth, and keeping everything constant, it’s safe to bet that by 2019 there will be pork butchery within 100 meters of a butchery presently enjoying a ‘monopoly’.

Setting – The décor, set up and general aura of the butchery is also becoming a widespread way to differentiate. Traditionally there has been some roughness associated with pork butcheries, but gradually in the market are pork butcheries which are trying to look modern: clean, hip places to have a meal and ‘hangout’.

The more ‘sophisticated’ the setup is the higher the customer expectations. So if the setting is not backed up by good recipes, pricing ad service then it will not make customers loyal on its own it. What a good setting and poor quality will do is keep attracting many new customers who visit once or twice but never come back. Such an establishment will survive if it’s located strategically.

Service – This includes everything from how orders are taken, how soon they are fulfilled, and quality of food. It also has to do with how easy it is to access things like drinking water, soap and water for washing hands, serviettes, toothpicks and such other seeming unimportant but crucial items. More important it has to do with the general attitude of the staff, how friendly and helpful they are.


The market accepts and sustains any positive branding. So it’s important to have some sort of branding however crude it could be. Pick an easy to remember name and some outstanding colours. This sort of branding helps especially when you want to open various branches within a town or region. So if consumers loved the original then they will expect the same in quality, recipe and service in the branches. (Some very common names include Pork City, Uncle Pork…)

Critical Success Factors

Unique and wonderful recipe

Great location and setup


Good sourcing


Opportunities in the pork eateries business exist. The market is expanding at a relatively fast rate.

Competition varies from place to place but as a general note there is enough demand to sustain the entry of an extra pork eatery. Indirect competition comes from butcheries selling beef and mutton. Since the price of beef is higher than that of pork and has been steadily rising at a faster rate as compared to that of pork there are now more consumers willing to purchase pork as opposed to the other kind of meat.

The barriers to entry have less to do with capital but perceptions of the viability of the pork business and in some place not enough pork supplies in some areas.

Differentiation among pork eateries is based on the quality of the cooked pork and how it is presented to the customer. Quality is defined variously but it has to do with the tenderness and taste of the pork, and also the recipe.

The presentation, which here means how good the pork is, the setting of the hotel, the plates, quality of the accompaniments and service customer loyalty. Loyalty helps buffer against increased competition that you should expect in the future.

In some markets there is room to compete on the basis of price though this is not sustainable in the long run.

Location offers advantages especially when starting the business. In the long run the disadvantages of a poor location which mainly have to do with customer acquisition can be overcome. With time customers are able to discover a ‘hidden’ eatery and if the pork is quality

The average break even is 7 months. This however could reduce or increase depending on location, marketing and the management.

Survival of the pork business depends on location, marketing, good supplies source, product differentiation, and customer service and management efficiency.

Consumer Behavior

Pork has a reputation as containing organisms which can cause severe food poisoning. In this regard consumers first want to be sure the pork is inspected by veterinary officials and well cooked.

Not that consumers will demand to see the inspection stamp; rather they rely on the image the pork butchery portrays. The image could mean different things in various locations; and include the setting and cleanliness level of the eateries, the reputation of the owner, the strictness of health officials in the area, the presentation of the workers and other such factors.

Consumers just need to taste and look to see how well cooked the pork is. Still the real validation occurs when the consumer eats the pork and does not suffer a stomach upset or health scare later.

Yet as more pork eateries are set up trusting the quality of pork is becoming less and less of a concern.

As mentioned consumers judge quality of pork differently. For some, quality is okay when the pork has as little fat as possible or without any skin at all, while for others tender and dry fried. Others prefer pork with some little soup. Fry pork is the most dominant though roast pork is quickly catching up.

What accompanies the cooked pork also matters. Well prepared ugali, some greens and equally delicious kachumbari are preferred. In areas with competition a small amount of greens included per serving can tilt the balance in favor of one butchery. There are not many creative pork recipes and many eateries opt to play safe by working with tested formulas. There is room for innovation.

For raw pork a lot of customers prefer lean pork with has no fat. However pork being what it is there must be an amount of fat, aware of these customers now seek a balance between the fat and lean meat. They avoid butcheries which serve excess fat.

Good customer service is also desired. This involves the basics; how polite the staff is, speed and consistency of survive, Cleanliness and a level of comfort while having their meal.


Average no of employees


Lowest number of employees


Highest number of employees


Average Salary

Kshs. 8,000



Lowest Salary

Kshs. 3000



Highest salary recorded

Kshs. 16,000



Average qualification




Highest qualification




Staff in a pork eatery include a butcher man in charge of the raw meat section, the cashier, waitress and cooks. Some eateries merge some of these roles so as to save costs. Thus you find a waitress also acting as cooks, a cook acting as a butcher man and so forth. The goal is to create an efficient system that saves the proprietor costs without negatively affecting the customer experience.

The common method of reward is a monthly salary. The alternative is daily wages which normally range from ksh.200 to Ksh.400

Butcheries selling only raw pork average two employees. Payment is largely on a monthly salary though some owners pay on commission from daily sales.

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