Back to Lusaka
Chapter 12: Back to Lusaka
By the age of 20, Chanda's business empire had firmly established itself as a dominant force in rural Zambia. His success in providing essential goods in underserved areas made him both respected and wealthy. Yet, Chanda knew the rural market had its limits.
"If I want to grow further," he thought, "I need to reinvest in Lusaka, where competition is fierce, but the opportunities are limitless."
This time, he set his sights on hospitality. Lodges, restaurants, and cafes had consistent demand in the bustling city, and Chanda wanted to stake his claim.
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A Modest Start
Chanda spent months scouting Lusaka for the right property. Eventually, he found a rundown lodge near Kalingalinga, a densely populated area with steady traffic from travelers and traders. The lodge had eight small rooms, a reception area, and a small kitchen, but it needed significant repairs.
The asking price was 450,000 ZMW, and after some negotiation, Chanda bought it for 400,000 ZMW, using his savings of over 1 million ZMW. He allocated another 100,000 ZMW for renovations, determined to make the lodge welcoming but affordable.
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Transforming the Lodge
Chanda focused on creating a space that catered to budget-conscious travelers, such as traders, truck drivers, and local tourists. Renovations included:
Repainting the exterior and interior walls in warm, inviting colors.
Adding simple but durable furniture, like beds, desks, and chairs.
Installing fans and mosquito nets in every room.
Refurbishing the kitchen to serve basic meals.
When the lodge reopened as "Chanda's Haven," rooms were priced between 100–250 ZMW per night, depending on size and amenities.
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Gaining Traction
Chanda's Haven quickly became popular among travelers looking for affordable, clean accommodation. Within the first three months, the lodge was operating at 70–80% capacity, generating:
Monthly Revenue: 12,000–15,000 ZMW
Net Profit: 5,000–7,000 ZMW
Chanda kept costs low by hiring local staff, including two cleaners, a receptionist, and a cook, each earning 1,000 ZMW monthly.
He also introduced affordable meal options for guests, such as nshima with beef stew for 25 ZMW, which became a hit.
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Expanding Into Restaurants
While managing the lodge, Chanda noticed an opportunity in Lusaka's food market. Many areas lacked affordable, clean dining options for workers and students. Seeing the potential, Chanda leased a small space in Kamwala, a busy district, for 200,000 ZMW.
He transformed the space into a casual restaurant called "Chanda's Kitchen," offering simple meals like:
Nshima with chicken: 30 ZMW
Rice with vegetables: 25 ZMW
Tea and fritters: 10 ZMW
The restaurant quickly gained a loyal customer base, generating 10,000 ZMW in monthly revenue with a profit of 4,000 ZMW.
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Challenges in the City
Lusaka presented new challenges. While Chanda's businesses thrived in rural areas due to limited competition, the city was a different game. Established lodges and restaurants often slashed prices to attract customers, and maintaining visibility was tough.
One competitor, Sunrise Lodge, began offering rooms for as low as 80 ZMW per night, drawing budget travelers away from Chanda's Haven. Meanwhile, a fast-food chain opened near Chanda's Kitchen in Kamwala, threatening his restaurant's customer base.
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Strategic Adjustments
Chanda adapted quickly:
1. Improving Marketing: He hired a graphic designer to create posters and flyers advertising "Affordable Rooms, Comfortable Stay" for his lodge. He also listed Chanda's Haven on popular platforms like Booking.com to attract online bookings.
2. Loyalty Programs: At Chanda's Kitchen, he introduced a loyalty card—customers earned a free meal after buying five meals.
3. Unique Offers: He added free breakfast for lodge guests and a small discount for groups booking more than three rooms.
These strategies helped Chanda regain his footing. Within a few months, both businesses were thriving.
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Adding More Locations
With the success of Chanda's Haven and Chanda's Kitchen, Chanda began expanding his presence in Lusaka:
He purchased a second lodge in Makeni, closer to the city center, for 500,000 ZMW.
He opened two more Chanda's Kitchen locations—one near Cairo Road and another in Matero—each costing 200,000 ZMW to set up.
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A Growing Hospitality Network
By the end of the year, Chanda's hospitality ventures had grown into a solid revenue stream:
Chanda's Haven (2 Lodges): 40,000 ZMW monthly revenue, with a profit of 15,000 ZMW.
Chanda's Kitchen (3 Restaurants): 30,000 ZMW monthly revenue, with a profit of 12,000 ZMW.
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Balancing the Load
With multiple businesses to manage, Chanda focused on building a strong team. He hired Mwila to oversee the lodges and promoted a talented young chef, Patrick, to manage all restaurant operations.
Weekly meetings with his managers helped Chanda stay updated without micromanaging. He also invested in training programs, ensuring his staff understood the importance of excellent customer service.
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Reflecting on His Growth
One evening, as Chanda walked through the bustling dining area of his first restaurant in Kamwala, he felt a deep sense of pride. At just 20, he had built a thriving business in both rural and urban Zambia, creating jobs and opportunities along the way.
Yet, Chanda knew this was just the beginning. His vision extended beyond Lusaka. He wanted to dominate Zambia's hospitality industry, opening lodges and restaurants in every major town and city.
As he sat down to review his plans, he wrote in his notebook: "100,000 ZMW monthly profit by 22."
For Chanda, the journey was far from over. His focus on affordability, quality, and community had brought him this far, and he was determined to take it even further. The boy from Kaoma was becoming a force in Lusaka's business world—and he wasn't stopping anytime soon.