There is a tendency – perhaps it’s human nature – to enter into a business sector in which there is a belief that it is easy to make profit by putting very little effort. This is what has been driving most to the businesses of supplying food, refreshments and hosting events.
“It is just like any other business you still have to work hard, you still have to be focused, you still have to be creative,” says Maria Makhado, Managing Director of Khathu Lutendo, narrating her experience.
Based in Chiawelo, Soweto, Khathu Lutendo Pty Ltd provides its dedicated clientele with refreshments, food and, when demand arises, hosts events.
The business started running in 2014-2015. It had stopped for a while to restructure, before resuming. “Now, we are back with a bang!” Makhado says jubilantly.
She feels what continuously draws customers to Khathu Lutendo is excellent customer service. ‘We ensure that customers receive the best every time. Our quality of food and refreshments is way above our competitors in the area.”
Khathu Lutendo endeavors to be relevant at all times, since there are many people offering similar services in the surrounding areas Makhado says. “It’s fiercely competitive out there and you have to be prominent!”
Noticing that in a congested market there was not going to be a winner, she has always tried to convince her competitors that consolidation of their services under one company would result in more success, but they have repeatedly dismissed her suggestion. “Everyone appears to have their own interests at heart first and foremost,” she says.
Another downside to the business is its erratic nature. There is a boom during month end and midmonth it’s very flat.
“It’s also not easy to attract many people to premises to purchase food, as people appear to have their options predetermined,” Makhado laments.”
Securing legislation from concerned authorities is also an issue. Khathu Lutendo has been waiting for a licence to operate a liquor outlet for a while now. Without a liquor licence, the enterprise’s operations are limited. “We frequently clash with neighbours who complain about loud music,” she says, stressing that she wants her business to abide by relevant by-laws.
As part of her immediate plans, Makhado aims to upgrade Khathu Lutendo into an upscale market pub, attracting a clientele who are upwardly mobile in terms of their social status.
When time comes, depending on resources, she wants to franchise Khathu Lutendo to other sections in Soweto.
After experiencing the hardship of establishing a business singlehandedly, using every cent she had raised and prevailed, Makhado has now a better understanding about what small business undergo without start-up capital from any institution. “When you start a business and look for funding, all you get are empty promises from ‘experts’ who flatter you and promise that they are interested in rendering their assistance,” she says.
To those who think that a food and beverages is a money minting machine, Makhado has a candid piece of advice: “Don’t go the shebeen way, rather register a company. It’s hard work, focus and constant invention.”
Makhado was inspired to go into the food and beverages business by her mother who used to run a shebeen business, selling fermented beer. She had been closely observing her mother’s persistence and picked up a few business ethics. One can almost see her mother’s DNA coursing in this spirited woman. Like mother like daughter!
