Certificate of Acceptability

The permit issued by a local authority under the food premises regulations. No food business may trade without one, and it is a Year 1 gate condition in this plan.

Confectionery

Pies, muffins, scones, doughnuts and koeksisters. 61 per cent of units by Year 5 at a 39.3 per cent contribution — the core of the business.

Contribution

Revenue less the costs that vary with it. Stated per unit in Section 4 and in total in the income statement, before overhead.

Debt service cover

EBITDA divided by interest plus scheduled capital repayments. The Year 5 gate is 1.30 times; the plan reaches 1.52 times.

Drops per route

Delivery stops made by one vehicle in one day. The measure of route density, and the trigger for adding a vehicle.

Landlord installation allowance

A stated rand contribution by a landlord toward tenant fit-out, negotiated into the lease. R180 000 here, presented once as a reduction in the cost of the fit-out.

Prime cost

Ingredients plus packaging plus labour, as a percentage of net revenue. The control metric of any food manufacturer; 69.1 per cent falling to 63.2 per cent here.

Retarder

Controlled refrigeration that holds proofed dough overnight, allowing a single team to deliver fresh product at six in the morning without a full night shift.

Returns

Unsold product taken back from a wholesale customer under sale-or-return terms, absorbed by the bakery. 6.2 per cent of gross sales falling to 3.4 per cent; one point is R178 000 at Year 5 volume.

Section 20 limitation

The South African tax rule capping the set-off of assessed losses at the higher of R1 million or 80 per cent of taxable income.

SEDFA

The Small Enterprise Development and Finance Agency, the merged national small business funder. Requires CIPC registration, SARS tax compliance and a proposal in its own format.

Spaza shop

A small, typically informal neighbourhood retailer. The primary wholesale customer in this plan, and the subject of a R500 million government support fund.

Units per drop

Units delivered divided by delivery stops. Together with drops per route, the measure that determines whether a vehicle earns its keep.