Bakery Business Plan In Tanzania 2021

If you want to start a bakery business in Tanzania or expand your current bakery, you need a bakery business plan in Tanzania.

The following bakery business plan in template gives you the key elements to include in a winning bakery business plan in Tanzania.

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Below are links to each of the key sections of your bakery business plan:

  • I. Executive Summary
  • II. Company Overview
  • III. Industry Analysis
  • IV. Customer Analysis
  • V. Competitive Analysis
  • VI. Marketing Plan
  • VII. Operations Plan
  • VIII. Management Team
  • IX. Financial Plan

I. Executive Summary

  • Business Overview
  • Products Served
  • Customer Focus
  • Management Team
  • Success Factors
  • Financial Highlights

Business Overview

[Company Name], located at [insert location here] is a new, upscale bakery focusing on providing organic, healthy and/or premium food products. Our product line fits nicely with health trends nationwide – while people still want pastries and baked goods, they want them to be as healthy as possible.

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Products Served

[Company Name] will sell several baked goods including bagels, croissants, cookies, cakes, danish, muffins, scones and strudel. All products will use 100% all natural and organic ingredients. Several products will have regular and low-fat varieties.

In addition to baked goods, [Company Name] will sell breakfast and lunch sandwiches, salads and soups, and serve a variety of coffees and teas.

Customer Focus

[Company Name] will primarily serve the residents within a 5 mile radius of our store. The demographics of these customers are as follows:

  • 27,827 residents
  • Average income of Tsh. 74,700
  • 58.9% married
  • 49.6% in Mgt./Professional occupations
  • Median age: 38 years

In addition to this prime adult demographic for an upscale bakery, there are five elementary school, a middle school, and a high school. Students from these schools will be sure to frequent [Company Name].

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Management Team

[Company Name] is led by [Founder’s Name] who has been in the bakery business for 20 years. While [Founder] has never run a bakery himself, he has taught baking classes as the local high school for 20 years and has worked part-time at bake shops throughout the region over the past 10 years.

As such [Founder] has an in-depth knowledge of the bakery business including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

  • There is currently no upscale bakery in the community we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to frequent our business when launched.
  • Our location is in a high-volume area with little direct traffic, and will thus be highly convenient to significant numbers of passerby’s each day
  • The management team has a track record of success in the bakery business.
  • The upscale baker business is a proven business and has succeeded in communities throughout the United States.
  • Market trends such as healthy and organic living support our business opportunity

Financial Highlights

[Company Name] is currently seeking Tsh. 370,000 to launch. Specifically, these funds will be used as follows:

  • Store design/build: Tsh. 250,000
  • Working capital: Tsh. 120,000 to pay for Marketing, salaries, and lease costs until [Company Name] reaches break-even

Topline projections over the next five years are as follows:

bakerysummaryebitda

II. Company Overview

Who is [Company Name]?

[Company Name], located at [insert location here] is a new, upscale bakery focusing on providing organic, healthy and/or premium baked goods. We also sell breakfast and lunch sandwiches, salads and soups, and serve a variety of coffees and teas.

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[Company Name] was founded by [Founder’s Name]. While [Founder’s Name] has been in the bakery business for some time, it was in [month, date] that he decided to launch [Company Name]. Specifically, during this time, [Founder] took a trip to Fort Lauderdale, FL. During his trip, [Founder’s Name] frequented a bakery that enjoyed tremendous success. After several discussions with the owner of the bakery, [Founder’s Name] clearly understood that a similar business would enjoy significant success in his hometown.

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Specifically, the customer demographics and competitive situations in the Fort Lauderdale location and in his hometown were so similar that he knew it would work. Furthermore, after surveying the local population, this theory was proven.

[Company Name]’s History

Upon returning from Fort Lauderdale, surveying the local customer base, and finding a potential retail location, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].

The business is currently being run out of [Founder’s Name] home office, but once the lease on [Company Name]’s retail location is finalized, all operations will be run from there.

Since incorporation, the company has achieved the following milestones:

  • Found office space and signed Letter of Intent to lease it
  • Developed the company’s name, logo and website located at www…
  • Created the menu
  • Determined equipment and inventory requirements
  • Began recruiting key employees with experience in the bakery industry

[Company Name]’s Products

Below is [Company Name]’s initial menu. All items will be 100% natural and organic. As you can see all items are classified under the following eight main categories:

  1. Soups
  2. Breakfast Sandwiches
  3. Croissants and Danish
  4. Muffins and Scones
  5. Sandwiches and Wraps
  6. Salads
  7. Bagels
  8. Cookies and Desserts

Store Design

[Company Name] will develop a 2,500 square foot store whose key elements will include the following:

  • Kitchen area
  • Ordering counter
  • Self-service coffee area
  • Tables to comfortably seat 15 customers
  • A play/informal eating area
  • Restrooms

Below please find a rough sketch of the floor plan.

bakery-store-design

The retail location has 20 dedicated parking spots which should suffice even in peak hours.

[Company Name] plans to be open 7 days a week, from 7AM to 8PM. As demand dictates, we may extend or reduce our hours. Likewise, as demand dictates, we may offer delivery service.

III. Industry Analysis

[Company Name] directly or indirectly competes with all foodservice providers nearby our store that offer similar products, mainly breakfast foods, breads, desserts, sandwiches and salads. Competition will come from supermarkets, restaurants, coffee shops, bakeries and other retail establishments. Direct competition will come from companies offering 100% natural, organic products like [Company Name].

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Industry Statistics & Trends

The following industry statistics bode well for [Company Name].

According to the recent report entitled, “Retail Bakeries Industry in the U.S.” by Supplier Relations US, LLC, the retail bakery industry’s annual revenue is approximately Tsh. 3.6 billion, with an estimated gross profit of 25.52%.

According to a recent report by Modern Baking, the median annual sales of retail bakery stores surveyed were Tsh. 333,000 while the median store sizes was 2,120 sq. ft, and the average bakery sale per customer was Tsh. 12.51.

According to a recent study by the IDDBA (International Dairy·Deli·Bakery Association):

  • Health is strengthening as a food purchase mega factor, ranking third after taste and price, and above convenience.
  • Frequent bakery shoppers tend to be less health-conscious than the rest of the population, but they are still health-conscious.
  • Shoppers say they are buying more reduced-fat milk (+30%), whole-grain bakery products (+29%), and yogurt (+19%).
  • More than half of shoppers are trying to avoid trans fat, total fat and saturated fat. Frequent dairy, deli, and bakery shoppers are more concerned about trans fat than the average shopper, but less concerned about a reduced-fat claim on products.
  • More than a third of shoppers say that the calorie content of foods is very important to them when they shop in the dairy, deli, and bakery departments. Frequent deli shoppers are the most concerned, with about 40% of full-service and a similar portion of self-service customers indicating they place great importance on calories.
  • Frequent shoppers in the self-service deli and self-service fresh bakery are more likely to buy organic and natural foods.
  • Seven in ten consumers tried to increase their consumption of whole grains last year.
  • About half of frequent deli and bakery shoppers say it’s important for products in these departments to contain added nutrients, such as vitamins or fiber. Added nutrition is ranked even more important by frequent shoppers in the dairy and full-service deli departments.

A recent study by Modern Baking found the following:

  • In-store bakery (e.g., bakeries in supermarkets) annual sales increased to Tsh. 20 billion.
  • Cake and bread are the top two products contributing to sales.
  • Sales of bread products have been positively affected by the demise of the low carb trend, growth of whole grains and an increased interest in crusty bread products.
  • There has been growth in the cookie sales. Declines were reported for bagels, pies and donuts.

IV. Customer Analysis

[Company Name] will serve the residents of [company location] and the immediately surrounding areas as well as those who work in [company location].

The area we serve is affluent and has an affinity to healthy and organic foods and beverages like we will be offering.

We will primarily target the following four customer segments:

  1. Soccer/stay-at-home moms: the town has a large population of stay-at-home moms who are active in the school and community. These moms often meet for lunch or coffee and [Company name] will provide a perfect place for them to congregate. (We also expect mothers to take their children to [Company name] for after school and weekend snacks and meals.)
  2. Morning commuters: many local residents drive to neighboring towns or take the nearby train to work. [Company name] is conveniently located for these individuals to pick up coffee or a breakfast sandwich in the morning or pick up a sandwich in the evening.
  3.  Local office workers: approximately 5,000 individuals work in offices within a quarter mile of our location and we expect a fair portion of these individuals to frequent us during the morning and lunch hours.
  4. Students: there is a middle school and a high school in the town and the high school is within one half mile. Students from these schools will be targeted to frequent [Company Name].

Below is a breakdown of our four customer segments:

bakerysegments

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