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Hot Bread Business - Business - Nairaland

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Hot Bread Production Profitability / Trend For Bakery And Bread Business / Trend For Bakery And Bread Business (2) (3) (4)

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Hot Bread Business by Ojemedad: 12:21am On Jul 16, 2018
I want to know more about hot bread business, how lucrative it is, how much to startup, the ups and down and many more.
Re: Hot Bread Business by Nobody: 2:07am On Jul 16, 2018
Ojemedad:
I want to know more about hot bread business, how lucrative it is, how much to startup, the ups and down and many more.


1. STAFFING: You'll need an experienced baker and some assistants (depends on how large your production is gonna be).

2. EQUIPMENT:

(a) An industrial oven (electric, gas or diesel, size will also be determined by the scale of production).

(b) Oven trays and pans: You'll need to contact aluminium guys to cast them for you. They can charge a little much but trust me, it'll be worth it. And for the pans, you'll need them to do the casting and riveting with quality steel, those last longer.

(c) Bread Sealer

(d) Digital Scale

(e) Industrial Bread Slicer

(f) Spiral Dough Mixer

3. BRANDING: No one is really into agege bread anymore and bread production is a really competitive business, so in order to attract the type of customers eating queen's bake, breadworth, rehoboth, daily fresh and the likes, you need to brand your business. Contact guys who make polythene bags and request a quote. Remember to choose at least two colors and not dull ones. Nylon aside, you also need to decide on taste as a brand, if you have your own recipe you can teach your baker, if you don't have one it's cool, just let your baker do his/her thing. Also there are two types of bread- regular and special bread. Regular bread is the type you eat everyday, while special bread are: milk, sardine, wheat, coconut, fruit bread and others.

4. SIZE: Cuboid, Long Rectangular and Jumbo size. These are the three most common size there is. The first sells to direct consumers at an average of 100 naira, second for average of 250 and third for an average of 400. Some people are also into production of round-shaped breads, see if your baker can do it.

5. SALES AND PRICING: There are three customers in the bread business: The distributor, the marketer and the direct consumers. Mostly, a bread producer has to deal with the first tow, but in some cases where you have your own supermarket/store, you can also sell to direct consumers. Know this, the price you'll sell to a distributor is different from the price you'll sell to a marketer because they'll also want to make profits from the end users. Here's how the chain works: The distributor operates a bread depot because he buys high volume of different products, he sells to the table-top sellers at higher price while table-top, that is shops, roadside and supermarket owners sell at a higher price to direct consumers. Be wise with your pricing, so as to leave profit for these people, if your price is too high, they'll buy somewhere else.

6. LOGISTICS: You'll need to transport your products to customers, consider getting a small van like mitsubishi (it's what most bakeries use), get a carpenter to fix wooden boards in it so you can have more space. If you can't afford a van, use your personal car, there's no shame in it brother. If you're gonna buy a mini van, then add a driver to the list of staff you'll need.


Anyway, I can't give you a particular amount of money that'll finalise the project but I'll simply tell you how much some things i can remember would cost.

1. A big nine-tray industrial oven of three layers should cost at least 1 million naira.

2. For casting of oven trays and tins, budget 100,000 to 120,000 naira (workmanship included). If your oven is the type that uses racks, then you'll need welder to make one or two for you because ready-made ones are very expensive.

3. A brand new slicing machine should cost at least 200-220k in Alaba.

4. A sealer should cost about 5,500 naira.

5. Digital scale should cost about 12,000 naira.

6. Branded Nylon of 4 colors for the 100 naira bread size should cost about 1400 naira per kilogram.

7. Spiral dough mixer should cost about 290-300k.

For price of ingredients:

1. Yeast is 12k per carton

2. Preservative (Calcium Propionate) costs 31k for a bag which is 20kg. it's better to buy the industrial ones than buy dependox all the time.

3. Rhoda margerine costs 16,700. you can also go for other products that cost lesser,

4. A seal tape costs 4500 for 12 rows.

5. A litre of flavor costs 4,500. Flavor is optional, your bread will still taste nice if you don't use it.

6. A carton of better baker costs 26,700 and it has 200 pieces in it. Two sachets are okay for a bag of flour.

7. Price of flour flunctuates, you should get it for at least 10,300 and at most 10,600. Choose between Honeywell, Mama Gold and Golden Penny.

8. Price of a bag of sugar is 14,500-14,800. But if you can make trips to Seme Border, you should get it for about 9,500.

9. Price of Dangote salt is around 3600 to 3800.

Work Advice:

*Make your workers melt the margerine and rub the dough in them. This saves a lot of time instead of having to rub groundnut oil inside the pans.

* Be careful who you deal with and try to request money before delivery from the distributors and marketers. If they don;t agree, then make them pay half of the money after delivery, then balance up on the next delivery. Also make sure they fill a form and sign agreement to your terms before you start transacting. Get all necessary piece of information you need to. Reason is because they sometimes take advantage of upcoming bakeries and refuse to pay up or keep posting you.

*Also make sure you check on your staff at least everyday so they don't run away with your money, or just put someone you trust there to supervise/manage it.

Overall, bread business can be quite as stressful as it is profitable. Also know this, when it comes to this business, profit is all about production power. The more you can produce and sell, the more you make profits. hope i've been of help.


An then, i don't know how much you have budgeted for investments, but there are other opportunities you can explore that involve way less stress.

4 Likes

Re: Hot Bread Business by nzube89(m): 6:53am On Jul 16, 2018
Were are you I can produce bread Nylon for you at cheapest rate
Re: Hot Bread Business by GimelNwaneri: 9:17pm On Jul 17, 2018
This has been really helpful to me. Thanks!

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