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LocationSouth Africa, Western Cape

Sector - Food

Asking Price
R1,182,000
Monthly Profit
R 42,764
Asset Value
R 536,000
Stock Value
R 18,000
Yearly Net Profit
R 513,171

Summary

This well established and profitable bakery supplies freshly baked artisan bread daily to supermarkets, deli's and coffee shops, farm stalls, guest houses, restaurants, etc. Good potential for growth.

Give me more information

Fully describe the business's activities?

This wholesale bakery supplies a variety of freshly baked artisan breads delivered daily. They pride themselves on the quality of their product and service excellence. Their clients include large supermarkets, delicatessens, guest houses, coffee shops and restaurants. They survived lockdown by doing home deliveries and have built a solid customer base of home based individuals. They have a large following on social media and they keep their Facebook page active and interesting.

How does the business operate on a daily basis?

The night supervisor opens at 22h00 and print the baking list and client invoices. Bread dough is mixed, proofed and baked from approximately 02h00. After cooling down under fans, the bread is packed according to invoices and the various delivery routes. Bread is delivered from approximately 06h30 - 10h00 in the morning. The day baker continues baking rusks and preparing pizza bases during the morning whilst the cleaner cleans the premises. The front shop is stocked with rusks and the over bake.

What Advertising/Marketing is carried out?

Promotions are advertised through WhatsApp messages and on social media. They have a large following on social media and advertise special offers regularly on this platform.

What competition exists?

There are larger wholesale bakeries, but this business sets themselves apart by their passion for healthy bread and their dedication to service excellence.

How could the profitability of the business be improved?

Potentially profitability could be improved by maximising their route planning and increase the number of deliveries (i.e customers) on a specific route, which implies increased turnover.

Do any have management potential?

The night supervisor and the day baker both exhibit management potential.

How involved is the Owner in running the business?

100% involved in the day-to-day running of the business.

When does the current lease end?

The lease expires January 2022 and is renewed annually with a 7% escaltion.

What are the trading hours?

Night staff works from 22h00 - 06h00
Delivery staff works from 06h00 - 11h00
Day baker and cleaner work from 08h00 - 15h00

What are the main assets of the business?

Baking equipment and ovens
Delivery vehicles (x3) (not on the asset list - registered in the owner's name and will have to be transferred to the new owner)
Undoubtedly also the staff

Strengths?

Well established with both suppliers and customers
Solid customer base
Excellent reputation for quality products and excellent service
Good cash flow
Well trained and loyal staff
Outstanding products

Weaknesses?

Escom load shedding - no generator(s)
Six day work week

Opportunities?

If load shedding continues from time to time, the business will benefit from a generator.
The business may benefit from employing a sales consultant/representative(s)
Farmers markets
Food and wine shows

Threats?

Rising cost of ingredients and fuel, etc.
ESCOM load shedding
Potential of third wave of Covid and stricter lockdown regulations

What is the reason for the sale?

The business is being sold because of health reasons.

Location

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Kutu

Kutu Venter

LocationSouth Africa, Western Cape

Preferred method of contact

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