Filters
LocationSouth Africa, North West

Sector - Food

Asking Price
R1,430,000
Monthly Profit
R 5,976
Asset Value
R 2,351,000
Stock Value
R 0
Yearly Net Profit
R 71,715

Summary

Long established Butchery, potential to expand revenue streams as well as catchment area. Large property included

Give me more information

Fully describe the business's activities?

Butchery serving local community for more than 50 years on large property

Products and Services Offfered

The standard range of Butchery products are offered. The butchery has its own Wors recipe that is sought after, as well as their Biltong products. They do cold meats as well as local requirements from time-to-time as required by the market that includes Bones, Lungs. They also stock large chickens that is sourced from farm in area and have customers driving from surrounding towns for some of these products. They recently started supplying marinated Sosaties to butcher in one of the surrounding towns as well as farmstall in area, they expect this relationship to continue.

The owner also occasionally bakes different products yet time is constrained to do this fulltime. The local "Tuisnywerheid" also places their products for sale in the Butchery

What is the unique value proposition of the business?

There are no real other butcheries in the area. The product quality is fantastic and the service done with respect and local friendliness. There are no issues with beggars and uncomfortable characters surrounding the store, therefore people come from surrounding town to buy their products without fear of being prone to harassment, pickpockets and crime from central town in surrounding areas that has become a problem.

How does the business operate on a daily basis?

Through the Store itself only, with walkin business

What Advertising/Marketing is carried out?

Have a WhatsApp group that updates on products, promotions are sent. No other advertising at this point

What competition exists?

There is an informal Sheep and Pig provider in town, yet the quality of the product is questionable and therefore customers remain consistent

How is Load Shedding Impacting Business

There is a generator on site so operationally there was no impact, albeit that fuel costs is naturally higher

How could the profitability of the business be improved?

There is significant potential for someone that is dedicated to the business in terms of time available as well as having the capital. The community has a definite need for fresh produce that could be supplied as well as bakery products.

Offering Blockman services to the hunting farms in region is an opportunity that could be activated with existing infrastructure, only licensing needs to be obtained.

Manufacturing and distributing larger quantities of Biltong under own brand could be explored, especially since C Grade meat yields better tasting biltong and meat products.

The local boarding schools, old age home, hotel, farms and regional institutions also hold immense potential.

Could also explore selling live sheep and pigs in the area behind the butcher on a regular basis to cater for this segment in the market.

Experienced Butcher that also understands the informal segments requirements and pricing points could position pre-packed products for distribution to Satellite points in surrounding areas

Meal services can be explored.

How can revenues be boosted?

There is significant potential for someone that is dedicated to the business in terms of time available as well as having the capital. The community has a definite need for fresh produce that could be supplied as well as bakery products.

Offering Blockman services to the hunting farms in region is an opportunity that could be activated with existing infrastructure, only licensing needs to be obtained.

Manufacturing and distributing larger quantities of Biltong under own brand could be explored, especially since C Grade meat yields better tasting biltong and meat products.

The local boarding schools, old age home, hotel, farms and regional institutions also hold immense potential.

Could also explore selling live sheep and pigs in the area behind the butcher on a regular basis to cater for this segment in the market.

Experienced Butcher that also understands the informal segments requirements and pricing points could position pre-packed products for distribution to Satellite points in surrounding areas

Meal services can be explored.

Do any have management potential?

Yes both the Blockman are exceptional and dedicated people

Do any have management potential?

Yes both the Blockman are exceptional and dedicated people

How involved is the Owner in running the business?

Constantly involved, although Blockman manages when owner not in store

Property Summary Description

Corner Property consisting of Building that houses Butchery as well as office that is currently rented out to administrative business. The building is approx 300 square meters and the property overall approximately 2,230 square meters. The property on Deeds Office records is split across two properties,

What are the main assets of the business?

The Property, Cooling Rooms, Generator and Butchery Equipment, See Asset List. The business Recipes are recorded and will be made available to new owner. Corner Property consisting of Building that houses Butchery as well as office that is currently rented out to administrative business. The building is approx 300 square meters and the property overall approximately 2,230 square meters. The property on Deeds Office records is split across two properties

Weaknesses?

The fact that personal loan payment is paid by Butchery is placing pressure on activation revenue generation initiatives as capital is not available to activate these. Stock control could be improved.

Opportunities?

Expanding the business to be a mini Supermarket that can supply a larger variety of products above will yield positive results.

Satellite offices that is serviced by main butchery, with these satellite points away from Central CBD that will attract customers that are afraid of these crime "hotspots", rent on these should also be lower as they should not be placed in the centre of these towns, these should include the Biltong products.

The property itself is large, adding a borehole could unlock potential to plant organic vegetables that could be supplied into market.

Adding Offices on property could attract rental income.

What is the reason for the sale?

Owner wishes to retire. Personal loan repayment from butchery placing block on expanding services to cater for needs of community ad unlocking greater revenues for the business. Property although large remains underdeveloped as well as a result, therefore losing out on additional opportunities.

Location

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Frans

Frans Joubert

LocationSouth Africa, North West

Preferred method of contact

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