Summary

Established home-based bakery producing artisan breads and pre-baked pizza and pita bases. The business trades from established Pretoria-area markets and operates only three to four days per week.

Give me more information

Fully describe the business's activities?

The business produces and sells a focused range of pre-baked breads and ready-to-use pizza bases. Products are sold from well-established positions at farmers markets and other markets in Pretoria and surrounding areas. Customers can also place orders and collect products directly from the current home-based premises.

How does the business operate on a daily basis?

The business currently operates mainly three to four days per week. Baking takes place on Thursdays, followed by packing and order preparation on Fridays. The products are then sold at markets on Saturdays and Sundays. Customer collections from the premises are also managed by arrangement.

What Advertising/Marketing is carried out?

The business benefits primarily from regular exposure at the markets, its established trading positions, repeat customers and referrals.

How could the profitability of the business be improved?

There is an opportunity to increase production and trading days, add further markets and collection points, introduce online ordering and delivery, expand the product range and pursue retail, wholesale, restaurant and food-service customers.

How involved is the Owner in running the business?

The two owners are currently hands-on and manage production planning, preparation and packing, market operations, customer collections and administration. The business is primarily managed over three to four days per week.

When does the current lease end?

The business is currently home-based and relocatable, and no premises lease will transfer to the purchaser.

What are the trading hours?

Production and baking take place on Thursdays. Packing and order preparation take place on Fridays. Market trading takes place on Saturdays and Sundays. Customer collections are handled by arrangement.

What are the main assets of the business?

As part of the business package, the seller will purchase, supply and assist with the setup of the following equipment at the purchaser's premises:

2 × Gas deck ovens, including 6 baking pans
1 × 30-litre planetary mixer
1 × Storage shelf
4 × Plastic proofing containers
3 × Stainless-steel worktables (1.8 m)

All electrical equipment will be single phase.

The purchaser will be responsible for ensuring that the premises are suitably prepared prior to installation, including an 80-amp electrical breaker and the required electrical points/plugs.

The standard setup uses 9 kg or 18 kg gas cylinders with approximately 1.2 m gas pipes, for which a formal fixed gas installation is normally not required. Should the purchaser require a permanent or full gas installation and/or Gas COC, this will be arranged for the purchaser's own account.

The seller will assist the purchaser with the equipment setup to facilitate a smooth commencement of operations.

Strengths?

Well-established and secure trading positions at farmers’ markets and other markets in Pretoria and surrounding areas
Established customer base and repeat business
Low-overhead and relocatable operating model
No leased premises required
Business currently operates only three to four days per week
Combination of gas and single-phase electrical equipment helps manage utility requirements and operating costs
Immediate-payment sales through the markets and customer collections
New production equipment included in the transaction
Experienced baker will transfer with the business
Seller will provide 30 days of training and handover assistance

Weaknesses?

The operation currently relies heavily on the two owners
Dependence on one key baker for production continuity
Sales are concentrated over weekends and at markets
The current collection point will need to be relocated to the purchaser’s premises
The business currently operates across a limited number of production and trading days

Opportunities?

Increase the number of production and trading days
Expand into additional farmers’ markets and other suitable markets
Establish additional customer collection points
Introduce online ordering and delivery
Supply retail stores, restaurants, caterers and other food-service customers
Expand the bread and pizza-base product range
Use the capacity of the new equipment to increase production volumes

Threats?

Market positions may be subject to the approval and requirements of the relevant market organisers
Market attendance and sales may be affected by weather and customer footfall
Food-safety and municipal compliance requirements
Increases in ingredient, packaging, gas and electricity costs
Dependence on the baker and owners’ operational knowledge
Competition from other artisan bakers, market vendors, bakeries and supermarkets