For a start up company, should the owner invest in the facility before marketing the product or should he/she market the products before investing in the facility? How to cope with this dilemma? Income needs to be in place in early stage. Marketing the products as first leads to high sales and fast business expansion. But costs are also high.
Owners are soon going to face the issue with raw ingredients. Does production volume positively relate to a stable growth rate? If these two are not proceeding side by side, the speed of business expansion will be retarded.
How to lower the labor cost and earn profits? Rents are expensive these days so how to create a win-win outlook? To run a retailer in an expensive section of a city with an easy SOP which everyone can follow regardless gender or age. It is suggested to have complicated works and soup cooking done at the location where rents are chapter. By having a small central kitchen with a packing room to food safety standard and dispatching the foods to branches can result in high profits and low costs. The budget for purchasing automatic machines comes from the saved labor cost. Branches deal only with easy preparations, such as heating and serving, but not cooking. Cleve Central Kitchen had planned a small central kitchen for a customer whose daily production volume up to 2 tons of Italian sauces, soups and so on.