A bakery is one of the most fulfilling businesses, this is because people who usually go into this business are usually passionate about baking. The best thing about opening a bakery business is that you don’t have to have culinary experience or education. Anyone who is skilled in baking delicious treats can open a bakery business in South Africa. This is a guide on how to start a bakery business in South Africa.
Types of bakeries
There are retail bakeries and wholesale bakeries. Retail bakeries are the most common, these are traditional bakeries that sell goods directly to customers, these include bakery cafes, home bakeries, cake shops, bakery food trucks and counter services. Wholesale bakeries don’t sell goods directly to the customer but to businesses like grocery stores, restaurants and cafes.
In this article we will be more focused on how to start a retail bakery business more than wholesale bakeries. This is because a lot of entrepreneurs prefer to start retail bakeries and they are generally easier to start and run compared to the latter.
Costs of starting a bakery business
1. Company registrations
You will need to register your bakery business, registering a business in South Africa costs R125 but you might need to trademark your logo, which might set you back around R3 000.
It is highly advisable to register it as a private company, you will get other options in forms of ownership like sole proprietor or partnership. Registering it as a private company protects your personal assets in case your client decides to sue you because of food poisoning.
2. Branding and uniform
You will need to invest into branding your bakery, this is not that expensive. You will need to get a logo, a logo costs anywhere from R150 to R1 500 in South Africa. We recommend you get a logo that costs at least above R500. You will also need to have a uniform for your staff, it is of utmost importance that it be branded.
3. Operating premises
Operating premises will be one of your biggest operating expenses. The amount you will pay for leasing a building will be highly influenced by the location. You can expect to pay more if you are renting a space in Johannesburg as compared to renting a space in Matatiele.
4. Insurance
Any business with tangible assets needs to have insurance. You will buy equipment for your business, what if something happens to it? People can break in and steal your equipment or it can be damaged by natural disasters. Insurance for a bakery should cost anywhere from R600 per month in South Africa.
5. Renovations
You will have to remodel whichever building that you lease to fit the setting of a bakery. This will cost you a lot, you might find that the previous tenant was a furniture shop. You will have to spend money on plumbing, air conditioning, adding tables and everything necessary to make the room feel more like a bakery store.
Renovations will probably be one of your highest costs when starting a bakery business.
6. Equipment
Equipment might set you back around R40 000, unless you buy used equipment, which can be just as effective; while saving you a lot of money. Bakery equipment can include bread pans, cake mixers, a dough divider, a dough moulder and other equipment. This equipment will depend on what your bakery specializes on.
7. Security
Any shop with a commercial space needs to have security, you need security to protect your assets in case of theft, robbery or burglary. Security systems may include an alarm system and armed response services, cameras and a safe to store your money.
8. Utilities
These are the day to day things you need to run your business, including things like electricity, stationery and other small costs. It’s good to budget for 3 months’ in expenses for utilities.
9. Wages and salaries
You will need a few people to help up with running your business so that it becomes efficient. These people can include a baker, and a person that is responsible for cleaning the premises and keeping them clean.
10. Building and hosting a website
A website helps your business become more visible online, it makes it easier for people to find your business through Google and other search engines. You will pay anywhere between R1 200 to R3 500 for a good standard website in South Africa from reputable web designers.
11. Grand opening marketing
You will need to spend some money to advertise your opening day. A grand opening helps get in a lot of customers and those customers might be loyal to you and your business. It is to help spread the word and quick awareness about your bakery shop in a short amount of time.
Just opening the bakery shop and waiting will take longer to get people to notice your bakery.
Health requirements
Your bakery will need a health certificate before selling food to the public. Things like sinks and tables, ventilation and lighting, storage facilities, clothing and equipment will all have to be in a good condition.
Conclusion
This was a guide on how to start a bakery business in South Africa. Do you have any thoughts or questions? Comment below.
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molifi nape
19 Dec 2020It will a great pleasure to get help from your side
Buhlebendalo Perseverance Khumalo
5 Jan 2021I am looking to opening a business this year. What services can you offer me?
Ofentse K.
3 Mar 2021This was helpful. Thank you.
sibabalwe
3 Mar 2021Glad you liked it 🙂
Tendani Manenzhe
16 Mar 2021Insightful thank yyou
sibabalwe
16 Mar 2021We are glad you found it to be useful.
Nomah
7 Jul 2021Insightful thank you
sibabalwe
13 Jul 2021I am glad you liked it Nomah ?
Mnambithi Tshabalala
5 Aug 2021Thanks a lot, it is helpful.
sibabalwe
5 Aug 2021I am glad you liked it Mnambithi.
Tumelo
22 Aug 2021Good day,
Thank you for this information.
I am interested in starting a bakery, specifically focusing o bread and rolls.
Can you please share more information on where can one go for training, the governing bodies as well as getting machinery for baking.
Kind Regards
Ernest
4 Sep 2021I would like to be in contact with, because that’s exactly what I would like to start.
SmartTech
31 Aug 2021We are a bakery consultant who will assist you through the process from start to finish for your new or improve performance of existing bakery
Shakira
8 Oct 2021Please contact me on your service offering
Mpho
12 Sep 2021Very helpful indeed
sibabalwe
13 Sep 2021Thank you so much Mpho 🙂
Solver
23 Oct 2021It is very helpful much appreciated
sibabalwe
4 Nov 2021Thank you Solver, it means a lot to me 🙂
Angel
11 Nov 2021That was very informative.
Any idea where I can buy the equipment’s reasonable?
Angel
Lerato
18 Nov 2021Very helpful, Thank you.
Molly
24 Nov 2021Helpful information, can i contact you for equipment info,thank you
Monde
21 Dec 2021Thank you so much. Highly insightful.
Sibusiso
29 Dec 2021This was a very good read. I Took notes.
I will be saving for the next coming months and help my aunt get her bakery started.
Thanks for the information
Rowena
7 Jan 2022Wow very insightful. I’m planning to open a doughnut shop and hopefully this year. I’m a tax practitioner and believe it or not I’m a bit scared to do this….
sibabalwe
7 Jan 2022Hi Rowena, I think 2022 is the year we should let go of all our fears and just do it. Good luck 🙂
Ntando
22 Feb 2022Wow I am really taken I would really enjoy having my own bakery but the problem is that I do not know if I will be able to. I am a bit scared when it comes to starting my own things but I would love to do something different in my community and that is to own my own bakery
sibabalwe
28 Feb 2022Wishing you all the best 🙂
Lebohang Tlali
11 Apr 2022Thank you so much for this guide?
May you kindly share more details on where to get equipment
Lebohang
Msolwana
20 May 2022Thank you so much for information I am planning to open bread bakery.Maybe share about where does one get equipment.