Corner Bakery

David Botha, Marketing and Sales Director for Retsol, the privately owned holding company for Corner Bakery and Equatorial Coffee, shares his insights into bakeries and their future…

David Botha, Marketing and Sales Director for Retsol

Corner Bakery, located within Engen Quickshops across Southern Africa, is probably best known as the convenience bakery of choice for their delicious and wholesome pies and variety of mouth-watering meal options.

Corner Bakery offers one of the most differentiated pie product selections in the country, baked just right, locally relevant and priced competitively, from Big Shot Burger Pies, the famous Corner Bakery Foil Pies, Corner Bakery Fold-overs and the scrumptious Pie Bites – all forming part of the market leading pie category of products and at market leading prices.

As a market leader, Corner Bakery sells pies to millions of customers every month. Pies are the core of the sales mix but a range of pre-packed products, the Corner Melts (toasted sandwiches and paninis), a variety of other on-the-go hot food solutions make their product portfolio enticing to every consumer. All of which, with the advent of the latest technology, allow for simple to no on-site preparation – making it easy for franchisees to compete in the market.

The brand has seen a steady year-on-year growth allowing the landscape of South Africa’s largest bakery franchise group to broaden and include the opportunity for standalone franchise stores. Franchises are owner operated and one owner can create a network of individual stores, with ease.

As the 6th largest food franchise in terms of turnover, Corner Bakery offers a solid investment opportunity having delivered double digit sales growth for the past eight years running, making it a lucrative investment choice.

Botha shares his invaluable insights into the bakery industry, and where this dynamic franchise is headed:

 Q: How is an unrivalled product quality created?
“There are a good few integral components to creating a product with incomparable quality and that involves long-term supplier partnerships and strategic buying of the highest quality ingredients, central production facilities that operate to the strictest codes of food safety compliance and ensuring that every part of your product is the best it can be. Strategic partnerships also enable you to influence and be part of continuous product innovation.

Q: How do franchisees benefit from a robust franchise infrastructure?
“Franchisees are the heart of your franchise network and their passion and love for your brand needs to be supported with a solid infrastructure for everyone to reap rewards. A franchise is only as good as the systems that support the day-to-day running of the network. This includes the production of consistently great products, product innovation, reliable delivery of products through a dependable distribution network, continuous marketing support, widespread consumer brand awareness and the in-store support of in-field operations specialists.”

Q: Does true value lie in relationships with franchisees?
“Absolutely, a great franchise is built up of franchisees that are just as passionate about your brand as you are. Franchisees are the face of your brand and the ambassadors of your product. There’s a synergy in working together towards common goals and targets. Customers feel that positive energy when they walk into your store.”

Q: Can you share some insight into the support a franchisee should receive to make his business a success?
“A franchisee should receive comprehensive support and it needs to be designed and delivered specifically to each owner and store. Leadership should be given through management training, staff training, collaborative store modelling and market segmentation analysis, marketing and sales support and in-field operations support.”

Q: Can you share what the future holds for bakeries?
“Global trends clearly indicate an increased consumer demand for quality baked goods, the use of technological advances in par-baked and pre-packed frozen bakery products is the way forward for bakeries of the future.

Production out of central bakery facilities ensures easier adherence to food safety regulations for each store, consistent quality, minimal to no wastage, lower operating costs and great profit margins. Producing goods centrally allows your store product variety to increase or change without the necessary complexities like staff, training or electricity that would be unavoidable for on-site bakeries. This saves time, space and money whilst providing customers with a consistent product that is as good as being baked from scratch on-site.

Par-baked frozen products that are oven baked on site evoke the senses, there is nothing quite like the scent of freshly baked bread and pastries to get taste buds watering and pre-packed specialty products produced at central bakery facilities help to extend the shopper basket with take-home goods that are consistent in taste and quality.”

Q: How does Corner Bakery fit into the future of bakeries?
“As a pioneer in the franchise industry, Corner Bakery’s strategic investment into central production facilities poises us to vertically integrate at every opportunity.

Continued investment in product innovation has created an expanse of opportunity for stores across various market segments. Bakery will always be core to our business but the extension into meals and fast foods offer additional income-generating categories – all with a limited need for resources and equipment.

We are already the 2nd largest franchise in South Africa with regards to the number of stores with more than 430 outlets spread across South Africa. The brands’ reach also extends to Botswana, Mauritius, Mozambique, Namibia, Reunion, Zambia and Zimbabwe – where the forecourt convenience market is seeing exponential opportunities for future growth.

Corner Bakery has been a dominant force in the convenience and Engen forecourt realm, our next chapter is ushering in an extended store positioning within both the Engen network but more importantly the new format of stand-alone Corner Bakery stores. We want to see a Corner Bakery on every corner across South Africa.”

Q: How is Corner Bakery positioned to grow?
“Corner Bakery is inviting all pie-lovers to help share the yumminess to even more South African’s. The opportunity now exists to own and operate a Corner Bakery stand-alone store in any location that has potential for sales. Our business model is flexible (Corner Bakery Pies, Chips and Gravy at the core and a suite of product add-ons) – meaning that we will work with future franchisees to best define the product mix for their store location and customer profile.

 The Nitty Gritty:

  • Initial UFF: R90 000 (excl VAT)
  • Monthly Brand Fees: 8% of turnover (excl VAT)
  • Investment from: R400K – R600K (dependent on size, product mix and location)
  • Recommended / Ideal Space: 40-50m2
  • Staffing: Owner operated and average of 4 team members

“Come and join the Corner Bakery family to get your slice of the pie.”

For franchise enquiries email: franchise@retsol.africa
For further information on CORNER BAKERY, visit www.cornerbakery.co.za
Facebook: /@cornerbakerySA
Twitter: #cornerbakerySA

 

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