Mr Bakery Master Business Plan — Key Performance Indicators
The volume, prime cost, waste and channel indicators monitored weekly, with the thresholds that trigger management action.
Key Performance Indicators
Jump to section
- Overview & contents
- i. Important Notice
- 1. Executive Summary
- 2. A Note on the Name
- 3. The Market and Why Scale Is the Enemy
- 4. The Product Strategy
- 5. SWOT and Competitive Position
- 6. Route to Market
- 7. Unit Economics and Prime Cost
- 8. Returns: The Wholesale Bakery Tax
- 9. Energy
- 10. The Five-Year Build and Its Gates
- 11. Funding
- 12. People and Production
- 13. Food Safety and Compliance
- 14. Financial Projections
- 15. Break-Even
- 16. Sensitivity and Scenarios
- 17. Risk Management
- 18. Implementation Timeline
- 19. Returns
- 20. Key Performance Indicators
- 21. Key Assumptions
- 22. Conclusion
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Capital Schedules
- C. Appendix C: Funding and Debt Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Glossary
The following are the operating measures on which this plan should be managed. Four of them — prime cost, returns, units per drop and drops per route — are weekly numbers rather than monthly, because in a business with an 11.2 per cent mature EBITDA margin a month is too long to discover a problem.
|
Indicator |
Definition |
Target |
Why it matters |
|---|---|---|---|
|
Prime cost |
Ingredients plus packaging plus labour ÷ revenue |
Below 63.2% by Year 5 |
Calculated weekly; a monthly account is four weeks too late |
|
Returns as a share of gross sales |
Value returned ÷ gross sales |
Below 3.4% by Year 5 |
One percentage point is R178 000 at Year 5 volume |
|
Units per drop |
Units delivered ÷ delivery stops |
Rising |
Route density, not customer count, is what makes a route profitable |
|
Drops per route |
Delivery stops ÷ vehicle days |
Above 20 |
A route with 12 drops costs almost the same as one with 24 |
|
Confectionery share of units |
Confectionery ÷ total units |
61% by Year 5 |
The line that carries the business at 39.3% contribution |
|
Ingredient yield per batch |
Actual output ÷ theoretical output |
Above 97% |
Weigh every batch; scaling by eye loses margin invisibly |
|
Energy per unit |
Kilowatt hours ÷ units baked |
Falling |
Rising energy per unit signals an oven needing service before the bill does |
|
Debtor days |
Trade debtors ÷ wholesale revenue × 365 |
32 days |
Customers pay on 32 while flour is bought on 30 |
|
Retail share of revenue |
Retail ÷ total revenue |
Rising from Year 4 |
No returns, cash on sale, highest margin per unit |
|
Debt service cover |
EBITDA ÷ interest and capital repayments |
Above 1.30x from Year 5 |
The Year 5 gate condition |