Summary

This bakery is like no other - the bread takes 3 days to make, slow natural unhurried fermentation in cool temperatures ensures the enzymes feed slowly and deeply on the nourishment within the stone-ground flour making it easily digestible. Flour, water, salt and wild yeast are combined to our secret recipe to ensure once tasted there is no going back.

Give me more information

Fully describe the business's activities?

A work-from home hand-crafted artisan sourdough bakery. Whilst sourdough loaves make up the largest proportion of sales revenue the bakery also produces rolls, pizza bases, pitas, bagels, brioches, prego, ciabatta, seed-loaf, rye, olive, cheese and onion, tomato and garlic, sweet potato breads. They do speciality bakes such as hot cross buns, scones, brownies and kitka. The bakery is managed by the head baker and his assistant who are involved 5 days per week and overseen by the owner who liaises with clients for weekly orders, arranges distribution, runs the accounts and replenishes supplies.

How does the business operate on a daily basis?

Orders are accepted weekly within a 3 day order window to allow for fermentation and autolysis (clients are on a WhatsApp group) and the bakery operates 5 days per week with the Head Baker and his assistant managing daily baking operations and the owner dealing with clients, suppliers and doing the accounts and admin.

What Advertising/Marketing is carried out?

The use social media such as Facebook and Instagram, web site, in-house courses and restaurant visits to find new clients.

What competition exists?

A more commercial bakery is located in the village but nobody is able to compete with the sourdough recipe which has been perfected over the years based on knowledge gained whilst abroad - this sourdough is unique based on the "mother" (+ 20 years old) and the process which is overseen by an expert sourdough baker. Most clients never return to previous outlets once they have experienced our breads.

How could the profitability of the business be improved?

The current business has reached capacity on a 5-day per week single shift basis and a footprint of 86sqm.
A new owner could increase output based on size of footprint, additional staffing and equipment, expanded markets and some CAPEX investment.

Give a breakdown of staff/ functions/ length of service?

Head Baker - 8 years
Assistant Baker - 3 years

Do any have management potential?

Between the Head Baker and Assistant Baker they are capable of running the operational aspects of the bakery. They are expert in the quality of the products and can make process adjustments on the run to maintain the quality clients have come to expect. They are not capable to run accounts or do the marketing and larger client interaction.

How involved is the Owner in running the business?

The owner is involved for a few hours every day - he is not required to work in the bakery on the process. He deals with client orders, distribution, suppliers, marketing accounts and general administration.

When does the current lease end?

No lease in place as it is a work-from home business.

What are the trading hours?

The bakery operates 5 days per week but does not ordinarily deal with the public - orders are placed and either delivered or collected. The business opens at 07h30 and closes at 16h30 daily.

What are the main assets of the business?

An asset list has been provided. The major assets based on value above R 10 000.00 are
6 gas ovens
I fridge
1 freezer - R 20000.00
1 magimix
Numerous small baking related items from R 2000.00 to R 18.00

Strengths?

This is a unique business based on intellectual property acquired over the past 8 years.
The sourdough is considered high-quality in both flavour and the health benefits.
Various bakery products compliment the business and offer diversity
East to run and manage business with low overheads and staff costs
Can be set up on home property - by-laws dependent
Existing client base and growing
Service which is personal is a distinguishing feature.
Capacity to expand market

Weaknesses?

No lease - must be a work from home business
Head baker and his assistant are key to the business and live locally and should, ideally, go with the new owner.

Opportunities?

Plenty room for expansion in product range and market penetration.
Increase footprint, CAPEX injection and review distribution aspects.

Threats?

The product is unique based on the IP and process. Clients do not generally leave once they have experienced the product.
Sourdough is freely available from most large food retailers as are their scones, buns, bagels, brioche, Kitka etc.

What is the reason for the sale?

The owners have embarked on a new venture and require the space that the bakery occupies. They do not intend working in the baking sector going forward.