For a long time, the catering business in Uganda has remained largely informal with players setting up small restaurants to just feed the people next door. However, 32-year old Geoffrey Matovu, the brain behind TM

Foodland Limited, has spent the last seven years of his business life doing things differently. At a time when most catering businesses are run informally, Mr Matovu set up TM Foodland, a catering business, in 2010 that he registered as a company in 2012 with the intention of offering catering services to public institutions, private companies and individuals.

Fast forward to 2017, this Ntindabased company emerged second in rank during the Top 100 Mid-Sized Companies 2017 survey organised by KPMG and Daily Monitor and supported by Uganda Investment Authority (UIA) among others. Mr. Matovu commends KPMG and Daily Monitor for the financial literacy classes and the marketing opportunities presented.

The event connected TM Foodland to several businesses. By selling local dishes to customers such as Uganda Revenue Authority (URA), Kampala Capital City Authority (KCCA), Uganda Health Management Group (UHMG), Uganda Aids Commission (UAC) and The Aids Support Organisation among many, the company realized a turnover of Shs2.2b in 2017 up from Shs1b in 2016.

Months before enrolling at Makerere University for a Bachelor’s Degree in Social Sciences, Mr. Matovu washed people’s cars to raise startup capital. He understood that no matter how many restaurants were in existence people were destined to eat every day. So there was always space for a fresh restaurant or catering experience. With Shs500,000 (Five Hundred Thousand) savings that paid his rent, two tables, chairs, a charcoal stove purchased on credit and a dozen plates donated by his step mother, he opened a small restaurant in Kawempe, a Kampala suburb.

He went on to equip himself with business knowledge from seminars held at the university and it is there that he realized he had a competitive advantage over old illiterate women who dominated the restaurant business. He figured that if he could incorporate the business he would be able to extend catering services to corporate organisations. After two years of hustling and learning, Mr Matovu wrote proposals to several banks and landed a two-year contract to serve Bank of Africa’s employees. Even though he had a restaurant set up already, he started cooking from his home which had more space so as to meet the increased demand.

Breakthrough

In 2015, Uganda Aids Commission turned the company around with a Shs83m contract.

“I did not look at the profit but the profile because my intention was to grow and get other contracts. I would sell a plate at Shs4,000 which was small money compared to the menu,” he says.

This well calculated move paid off, because soon after he secured three contracts to serve URA in Mityana, Hoima and Fort Portal. Later, he got a three months contract worth Shs151m from Uganda National Examinations Board (UNEB). UHMG also came on board, outsourcing the company’s services for special occasions.

Challenges

Although TM Foodland has had a good year because of several lucrative contracts, capital constraints remain a huge stumbling block. Fortunately, suppliers are backing him up.

“My capital is based on those poor women you see in the market. You treat them well, sit down with them, drink a bottle of soda with them and by the time you leave they have said take five bunches of Matooke and pay me after a month,” he explains.

He adds that banks have become his other source of capital once he wins a contract. Mr Matovu says the catering business is unpredictable since prices keep fluctuating. “You sign a contract today and then prices change. Look at charcoal, previously it was selling at Shs30,000 now its at Shs80,000 a bag. The contracts are not amended,” he explains.

Taxes on supplies are high too, besides the process of procurement is tricky. “You bid and compete with the same person supposed to give you the contract because they are in the same business,” he says.

The human resources also require consistent training. Mr Matovu also says perceptions about catering have not changed, and that people especially government and corporate institutions are reluctant to consider it a professional business.

Present situation

Now, TM Foodland has over 30 employees including part-time and permanent staff. Catering equipment can now serve over 10,000 people in a day. The lunch menu once consisting of rice, matooke, posho and beans at Shs2,000( two thousands), has grown to include luwombo, malewa, boo at Shs30,000. Lessons taken on importance of transparency, discipline, an engaged team and remaining in touch with operations on the ground have worked for the company.

TM Foodland is now expanding its business to local food packaging, manufacture of serviettes and distribution of food and drinks to maintain daily cash inflows. TM Foodland is soon launching a service that will enable customers order and get deliveries of local food at their door step.

“If a customer does not want to cook, we plan on having standby chefs who once given a call can come, cook and you pay us our money,” he says about a service for busy corporate employees who want local dishes at home.

The Future

Five years from now, Mr. Matovu expects to expand and work with some foreign investors. “I want to give franchises to those interested in the catering business, instead of registering a company, I shall give caterers my profile and brand. So that one operates as TM Foodland, he or she gets a profit and I get a small percentage to keep my business going,” he says.