business plan for kakanin

How To Start a Kakanin Business in the Philippines: A Beginner’s Guide

Kakanin business marries tradition with entrepreneurship.

Also known as rice cakes, kakanin has been part of the Filipino culture since ancient times when it was offered as food for the gods.

The word kakanin was derived from the root word “kanin” which means either “prepared rice” or “to eat.” Rice, specifically the sticky variety or malagkit, is the primary component of the kakanin.

Also Read: Why do Filipinos love to eat rice?

For other provinces where rice has less supply, root crops like purple yam or taro are also turned into delicious kakanin desserts.

Filipinos’ love for kakanin goes beyond simple gastronomic pleasure. It is said that its stickiness helps attract luck that’s why it’s served during fiestas and other special occasions.

If you want a business with ready buyers and products deeply rooted in Philippine culture, the kakanin business is definitely worth a try.

Go back to the main article: Best Small Business Ideas in the Philippines with High Profit

Table of Contents

1. educate yourself about the kakanin business by attending seminars and training, 2. offer something unique to the market, 3. test your kakanin business idea by offering samples, 4. register your kakanin business, 5. write a kakanin business plan, 6. find a reliable supplier, 7. invest in a good packaging design, 8. find a good location, tips and warnings.

• People with hands-on knowledge and experience in making kakanin like sapin-sapin, biko, puto, and kutsinta.
• Those who have a passion for traditional Filipino desserts and way of cooking.
• Full-time employees or stay-at-home moms looking for a side business.

Capital: Starts at Php 5,000 or less.

• Requires low start-up cost since the ingredients are cheap and easy to find in the market. It’s the ideal business you can start even with small quantities, allowing you to experiment with the product and test if there’s a demand in the market.
• Unless you’re getting a franchise , starting a kakanin business gives you the freedom to choose which types of kakanin to produce, how much to sell, and to whom.
• You can start this business virtually anywhere and regardless if you’re a full-time employee or unemployed.
• Business location is flexible in the beginning. If you’re starting with small quantities to test the market, a door-to-door or made-to-order selling will help you find your first few loyal customers and grow from there.
• Huge potential for growth. Since there’s a wide variety of kakanin business ideas you can tap into, the possibility of expanding your product offering after initial success is always waiting in the corner.
• Kakanin business takes a lot of time and effort to operate. Preparation and cooking alone will consume most of your energy, especially during the Christmas season when the demand usually spikes. With limited capital, you will be required to handle most of the business operation alone at the beginning, hence the need for passion and commitment.

How To Start a Kakanin Business in the Philippines: 8 Steps

DTI and other private institutions offer training and seminars yearly. Ideal for those who want to venture into the kakanin business but have no experience making rice cakes, these seminars usually teach participants hands-on experience in cooking the kakanin and insights on how to price the products and get reliable suppliers.

This may not be applicable if the kakanin business is already part of your family’s heritage, with the techniques and hands-on training provided by your own relatives.

Kakanin business is ubiquitous in the country. It’s impossible to visit any town or city without stumbling on a kakanin business.

While the presence of competition means there’s a huge demand for the product, it also requires newcomers to come up with unique ideas to penetrate the saturated market.

Start by specializing in one kind of kakanin and offer the best product in this category.

For example, Rosalie’s in Marilao, Bulacan started with bibingka, making it different from other competitors by adding leche flan on top of it. From there, the store expanded and added other types of kakanin in its inventory.

Alternatively, you can focus on a native delicacy unique to your town or province. Susie’s Cuisine of Pampanga, for example, found success in selling “tibok-tibok,” a delectable Kapampangan pudding made with carabao’s milk.

The following is a list of other kakanin business ideas you can try:

• Palitaw de leche
• Buchi de leche
• Maja blanca
• Pichi pichi
• Halayang ube
• Kalamay na kalabasa
• Kalabasa flan with honey butter sauce
• Suman sa lihiya
• Suman sa ibos
• Cassava cake
• Bibingkang pinipig

Tasting your own kakanin may involve some kind of bias. The only way to test whether your product is ready for launching is to have it pass the discriminating tastes of people immediately around you.

You can sell your kakanin or offer free samples to your officemates, close friends, and relatives. Get their feedback and use the constructive criticisms you’ve earned to improve the product.

To make your business legitimate and to protect your exclusive right to use your business name, register it to the Department of Trade and Industry (DTI) and in the Bureau of Trade Regulation and Consumer Protection (BTRCP).

Related: How to Register a Business in the Philippines: The Ultimate Guide

You also need to get Barangay Clearance and get a permit from the Local Government Unit and the Bureau of Food and Drugs.

A business is a blueprint that gives your kakanin business a sense of direction. It will help you determine whether you’re achieving your goals and vision.

Without something to target, your kakanin business will easily lose its identity and direction.

Even without an MBA, you can create your own business plan.  After all, you’re dealing with a small business for now. It’s a living document subject to changes over time.

A basic kakanin business plan includes the following:

• Executive summary which provides an overview of the business, its products, competition, and target market.
• Marketing plan featuring the strategies to reach out to the target market.
• Production plan with details of the processes involved in making the product/s.
• A financial plan which lists down the gross profit, expenses, and net profit of the kakanin business, giving the owner a compass on how to maximize his income.

A kakanin business needs regular fresh ingredients for its daily production.

Find a trustworthy supplier and forge a long-term business relationship with it. By doing so, you will be able to avail of discounts and be assured that your business operation will run smoothly.

People buy with their eyes. No matter how great the taste of your product, people will still think twice about buying it if it comes with a terrible box.

A good packaging design is an effective marketing tool. It shows the business owner’s professionalism, creativity, and dedication to provide the best product possible.

The box must be as visually appealing as the product inside, with vivid hues like red, yellow, or pink to evoke happiness and excitement.

The location also matters to a kakanin business especially if you’re offering it through a stall.

Put it up in crowded places like inside the mall or near the terminal, school, or office. If you’re just starting out, you can participate in food bazaars to introduce your products to as many people as possible.

• Start small. Focus on a single type of kakanin and constantly improve its taste, presentation, and uniqueness to earn loyal customers. From there, you can reinvest your income to expand your product line and offer other types of kakanin.
• Participate in seminars or training that not only teach you how to cook the kakanin but also techniques that can extend its shelf life.
• Spend your income wisely. Every single centavo must be tracked to ensure nothing is spent on useless expenses. Reinvest whatever you earn back to your business.
• Be innovative. Never stop improving your product to stay above your competition. Whether it’s a new technique to prolong the shelf life of your kakanin or marketing strategies that will put your business in front of many people, grab every opportunity to keep your competitive edge.

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How to Start a Kakanin Business

Because of its popularity among Filipinos here and abroad, many household mom entrepreneurs saw the need for commercializing it into a kakanin business , knowing that this type of industry can be easily manufactured at home. From traditional ways of cooking and selling, native kakanin delicacies have now reached major mall food stalls around the country. And, from unsophisticated plastic wrappers, kakanin are now gracefully stuffed in polystyrene foam (commonly known as “Styrofoam”) with printed labels on them. No doubt, these generated income opportunities to many Filipinos.

Just like any other business, you must first get to register your kakanin business . Follow these steps in business registration . You must also get your products approved by the Bureau of Food and Drugs.

The important thing that you must do before going into this kind of business, if you don’t have any experience, is to get a training. You can get that one thru DTI-sponsored seminars and trainings and to any other training institutions. This is one way of educating and empowering you as an entrepreneur.

Below are list of Filipino kakanin delicacies which you can use to start a small kakanin business . (Note: some descriptions were taken from the source sites)

Biko is a Filipino rice cake made from sticky rice (locally known as malagkit), coconut milk, and brown sugar. Like other rice cakes, this is referred to as kakanin (derived from the word “kanin” which means rice) and is often eaten as dessert or meryenda (mid-afternoon snack). Biko recipe here- panlasangpinoy.com

Kalamay hati – a native kakanin or rice cake. It is made from ground sticky rice, sugar, mascuvado, coconut milk and sesame seeds. It is brownish in color; it is very sticky that you will almost spend your whole time chewing it. Kalamay hati recipe here – iloveiloilo.com

Sinabalo (Suman) – this suman recipe is from Cagayan Region II. Instead of wrapping the malagkit in banana leaves, it is broiled in fresh bamboo tubes. Sinabalo (suman) recipe here- filipinovegetarianrecipe.com

Palitaw – made from glutinous rice and sugar, sprinkled with sesame seeds and topped with grated coconut. They’re very soft and easy to chew and are best served cold. Palitaw recipe here- easymealrecipes.blogspot.com

Espasol – kakanin dessert made out of glutinous rice, coconut milk, shredded coconut, rice flour. Espasol recipe here – easymealrecipes.blogspot.com

Tupig – made from glutinous or malagkit rice flour, coconuts, molasses, sesame seeds, wrap in banana leaves and baked over live charcoal. Tupig recipe here- filipinovegetarianrecipe.com

Cassava cake – a classic Filipino dessert made from grated cassava or manioc, a woody shrub where the starch that is used to make tapioca are derived. Cassava cake recipe here – panlasangpinoy.com

Special Puto – a steamed rice muffin which is of a plain white color but adding certain common Filipino ingredients like coconut milk, ube and pandan (made from pandan leaves) slightly changes the flavor and completely changes the color of the finished product. Special puto recipe here.

Cuchinta (kutsinta) – a native delicacy in the Philippines. It’s a sticky, golden brown, sweet dessert popular among Filipinos. Cuchinta recipe here. – easymealrecipes.blogspot.com

Maja Blanca – a cake made out of rice flour, coconut milk with addition of milk to make it more tastier and creamier, top with latik. Maja blanca recipe here. -easymealrecipes.blogspot.com

Puto Bumbong – a steamed glutinous (malagkit) rice mixture which is popular during Christmas season. Puto bumbong recipe here – filipinovegetarianrecipe.com

Buchi or Butsi – a rice cake made from sweet rice flour that is molded into shape with a sweet bean paste filling and sesame seed coating. This delectable treat is deep fried under high heat before serving. Buchi recipe here- panlasangpinoy.com

Sapin- Sapin – a native dessert consists of coconut milk, ube powder, gelatin and corn kernels. Sapin-sapin recipe here – filipinovegetarianrecipe.com

Ube Halaya – a native dessert made of mashed purple yam and condensed milk. Ube halaya recipe – pinoyfoodblog.com

Bibingkang Malagkit – a rice cake made out of glutinous rice, coconut milk and brown sugar. Bibingkang malagkit recipe here – easymealrecipes.blogspot.com

Buko Pie – an all-time favorite traditional Filipino pastry style, young-coconut-filled pie. Buko pie recipe here – easymealrecipes.blogspot.com

With this kind of business, it is also good to complement it with Binignit, champorado, buko pandan or even halo- halo.

Kakanin Business Tips: – Join any capability-enhancement trainings to boost your morale – Adopt new better technology to increase production and to improve the shelf life of kakanin. – Formulate new marketing strategies to broaden your niche.

These Might Interest You:

• Filipino Native Delicacies – Kakanin Recipes
• Rice Recipes for Business
• Yema, Macaroons, Mango Float, Leche Flan, Cassava cakes, Ube Jam
• Sugar and Weight Loss: How Sugar Affects Your Weight Loss Goals
• Donut Recipes for Business
• Weaning Food Blends (Food Business)
• Coconut Recipes: Pan de sal, Macaroons, Noodles, Brownies

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Maraming salamat po sa recipe,alam ko po na malaking tulong sa akin ito para magkaroon ng hanapbuhay kahit nasa bashay lang po ako.at sisiguradohin ko po na lalago po ito.salamat po.

thanks for the info

pwed po mag semunar

Nice site you have here. I’m a certified kakanin lover! 🙂

hi…how can i get copy of how to start kakanin business….i cannot directly copy the article…please help i badly need this article.

Just click the PDf button

Hello, thanks for the info and thanks also for mentioning one of my sites!

You’re welcome! Mabuhay ang pinoy!

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