Mr Bakery Master Business Plan — People and Production
The production establishment, shift planning around oven capacity, and the skills a confectionery bakery depends on.
People and Production
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
|
Role |
Year 1 |
Year 3 |
Year 5 |
Responsibility |
|---|---|---|---|---|
|
Founder and manager |
1 |
1 |
1 |
Buying, pricing, funding relationships, route oversight |
|
Head baker |
1 |
1 |
1 |
The bake, the recipe book, yields and quality |
|
Production supervisor |
— |
1 |
2 |
From Year 2; runs a shift without the founder present |
|
Bakers and assistants |
3 |
7 |
11 |
Mixing, moulding, proofing, baking, finishing |
|
Packers |
1 |
3 |
4 |
Packing, labelling and load preparation |
|
Route salesmen and drivers |
1 |
3 |
4 |
Delivery, order-taking, returns collection and credit |
|
Retail staff |
— |
— |
3 |
From Year 4, at the retail outlet |
|
Administration and bookkeeping |
1 |
1 |
2 |
Invoicing, debtors, payroll and the weekly prime cost calculation |
|
R’000 |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|---|---|---|---|---|---|
|
Labour |
1 022 |
1 673 |
2 460 |
3 359 |
4 287 |
|
As a share of revenue |
27.8% |
27.1% |
26.4% |
25.7% |
25.0% |
|
Owner and management |
264 |
312 |
372 |
432 |
498 |
|
Combined |
1 286 |
1 985 |
2 832 |
3 791 |
4 785 |
|
As a share of revenue |
35.0% |
32.2% |
30.4% |
29.0% |
27.9% |
Labour and owner remuneration together fall from 35.0 per cent of revenue to 27.9 per cent. Owner remuneration is a real cost from Year 1 at R264 000 rising to R498 000, and it is deducted before EBITDA, which means the break-even in Section 15 is calculated after the founder has drawn a living.
12.1 The production day
|
Time |
Activity |
Note |
|---|---|---|
|
22:00 – 01:00 |
Sponge and dough preparation; overnight retarding |
The retarder is what makes a single shift produce a morning delivery |
|
01:00 – 04:00 |
Bulk mixing, dividing, moulding and first proof |
The head baker’s shift; yields are measured here |
|
04:00 – 06:00 |
Baking, cooling and finishing |
Oven scheduling to load; the energy discipline in Section 9 |
|
05:00 – 06:00 |
Packing and route loading |
Overlaps the bake so vehicles leave on time |
|
06:00 – 11:00 |
Delivery routes; returns collected on the round |
The route salesman’s shift |
|
11:00 – 14:00 |
Second bake for afternoon and next-day lines; cleaning |
Cakes and tarts, which are ordered rather than speculative |
|
14:00 – 16:00 |
Order-taking for the following day; returns reconciled |
The order book per shop from Section 8.1 |