How A Street Food Vendor Makes 16,00,000 A Month Working 3 Hours A Day
This post is about Patil Vada Pav, a thriving street food vendor in Mumbai, who sells Vada Pav, Samosa Pav, Bhajias and Dhoklas. He makes over Rs.16,00,000 a month in profit by working just 3 hours a day!
Since my classes were located just above his stall, the spicy aromas of the Mumbai potato burger would enter our classrooms every evening between 5pm to 8pm.
For 12 months, between April 2010 to March 2011, my soft skills classes were held at a place owned by Patil, a street food vendor based in Andheri West, Mumbai.
It was a very large classroom with a private toilet and bathroom along with a store room area which gave us additional space to keep things in there so that the classroom area was always clutter-free.
Apart from that, we had a large reception area outside the classroom which gave us a good view of the garden below and the busy street on the other side.
It was common for our students to rush down during the breaks to grab a couple of potato burgers as they just could not resist the continuous temptation given to them through the aromas sent in through the open windows.
Patil lives like a King.
He owns the whole building.
The upper floor is where he lives along with his family. It is a huge space of more than 3000 square feet for his luxurious home.
On the first floor and on part of the ground floor, he has designed offices and commercial spaces to let out on rent.
This is where my classes were.
His potato burger shop is located on the ground floor.
His kids study in International Schools. Paying hefty fees for their education every year.
He made sure that his 2 children were given the best that life has to offer. Even though he does not know to read, write or speak in English himself.
Conducting my classes in such close proximity to his lavish home and potato burger shop on the ground floor, I learned a lot about his business while I was present there during the evening hours.
I observed that his Wada Pav was extremely popular with everyone who passed by his shop in the evening hours.
From office workers to college students, housewives to business people, all of them stopped at his stall between 5pm to 8pm every evening (apart from Sunday) to enjoy Mumbai's most popular snack.
The price of his Potato Burger is just Rs.10 a piece.
His hours of operation was only between 5pm to 8pm, from Monday to Saturday, and closed on all major bank holidays.
Yet as per my discreet but focused observations he sold over 2000 pieces of his snacks in those 180 minutes of running his business every single day.
Since the average cost of each snack is Rs.10, he makes Rs.20,000 per day.
Not per day, but in 3 hours, since his shop was open only between 5pm to 8pm.
What a cool business he had created for himself.
In the year that I was there, my business thrived as well, perhaps it was the prime location of my classes and the continuous flow of patrons that helped me promote my courses for free through strategically placed banners in and around his building.
Anyway, let's come back to Patil's Potato Burger business now...
He sold Rs.20,000 worth of snacks every evening.
Which made him over Rs.500,000 a month.
Based on my observations, he had a very high profit margin on this business.
Earning Rs.8 per Potato Burger sold!
Which means, in an average month, he made Rs.400,000 in profit. Not bad at all.
But wait, there's more.
He owns another 4 Potato Burger stalls in the area. And all of them make more or less the same number of sales each day.
All of them run only in the evenings between 5pm and 8pm, on 6 days a week.
So, basically, Patil was earning 16 Lakhs a month in profit through these 4 Potato Burger stalls he owned in Mumbai.
Then, of course, there's the monthly rent he earns through the 6 tenants in his building. He makes another 100,000 rupees a month through these rentals.
After speaking to him many times during the year, I got to know that he also owned acres and acres of farm land in Panvel, a city just outside of Mumbai, and he earned rent on those agricultural lands too.
Wow, what a great business man he is.
It would be fitting to end this post with describing how Patil is as a human being.
Every time I saw him, he would say "Namaste Sir" and treat me with respect all the time.
He would give my students a big discount on his snacks whenever they went to him.
My staff members would get a discount and a few extra Batata Vadas whenever they went down to buy things from him.
All in all, he is a complete gentlemen, always wearing a smile on his face while he is working down at his shop in the evenings.
His customers love to buy his hot snacks since they were freshly prepared by his wife upstairs and made hygienically unlike most other street vendors.
His wife would change the oil used to cook the burgers and samosas as soon as it would turn a bit off color.
Today evening, my close friend happened to pass by Patil's Potato Burger Shop, and she bought all of us a range of things from him.
He was only too pleased to know that I remembered him fondly till today.
He also sent his best regards and told her that he would let me rent the same classroom I had rented at the same price he gave to me more than 6 years ago.
One thing's for sure, if I ever restart my classroom courses then I know where I will be going to rent the premises to run them.
Patil taught me a lot about business and customer service while I was there in his building for a year.
He taught me that you can make a living working just 3 hours a day, 6 days a week, and live a fabulous lifestyle without compromising on anything.
He has a team of helpers who start the food preparation at 3pm each Afternoon. As I mentioned earlier, his wife fries the Potato Burgers herself.
She too has always been kind and hospitable to us while we were there in their premises. Such a wonderful and calm lady she is.
Both of them have been an important example of my Kyoto Bamboo Principle in action.
You can download the audio book version of the 'Kyoto Bamboo Principle' from the homepage of Gobog.com to know how you can live a fabulous lifestyle like Patil and me without burning the midnight oil.
Once I had asked him what he does the whole day before 5pm and after 8pm when his work ends. He smiled at me, put his arms around my shoulder and said "I just enjoy my life, Sir". I guess this is a fitting end to the manner in which we should all live each day of our lives.
Audio Book Creator. Life Coach. Soft Skills Trainer. Counselor.
Meditation Practitioner. Food Technologist. Frugal Marketer.
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