The Start Up Guide To Begin Bread Bakery Business In Nigeria & Costing:
Bread is the third most consumed food staple in Africa just behind rice and cassava. It is a generally accepted food, and its appeal is because of its ready to eat nature and the fact that is is enjoyed by almost everyone.
The global bread consumption rate is estimated to be around $487 billion dollars annually, with the United state been the highest consumer of bread globally, consuming over $71 billion dollars worth of bread annually.
In Nigeria, the bread market was estimated to be worth around $338 million dollars in 2015, with over 160 million people consuming bread daily, and an average consumption rate of over 10,000 Naira being spent per head and around 2.2kg of bread consumed per head annually.
These bread consumption statistics makes the bread bakery business in Nigeria and many other places around the world, a very lucrative one as it produces an immediate turnover and can turn a profit in a very short time due to excessive demands.
If you’re looking to start a bread bakery business in Nigeria, you should read on
What Is Bread?
Bread is a staple food made mainly from the mixture of flour and water, that makes a dough which is then baked to make bread.
Bread is a typical food throughout history, and it’s one of the oldest foods made, dating back to the discovery of agriculture, and has widely been accepted by different nations and groups.
What Is A Bread Bakery?
A bread bakery is a shop or an outlet where the whole process of producing bread is carried out, and the finished product, being the bread, is made. This process may include; knitting of the bread (that is mixing the bread with butter, sugar, water and other ingredients) to pre-heating the oven to finally baking of the bread.
Business Opportunities Bread Bakery Business in Nigeria
1). Source Of Food:
Bread has been a major source of food that is widely accepted around the world as an affordable meal for everyone to easily have.
2). Food Ingredient:
Bread has been known to be an ingredient in other food preparations, like its use as breadcrumbs in the preparation of crunchy crusts, thicken sauces, salad topping, stuffing roasted turkeys, or in bread puddings.
3). Animal Feed:
Bread when stale can be converted to animal feeds.
Facts And Benefits Of Bread
- Bread is famous around the world and is one of the world’s oldest foods
- Bread is closely tied to religious expressions, communion, easter and lent
- Sliced bread was first invented in 1928
- Ancient Egyptians used mouldy bread as a treatment for infected burn wounds.
- Bread goes stale 6 times much faster in the fridge than at room temperature.
- The first meal ever consumed on the moon was bread and wine.
- Germany has the most variety, selection and production of bread in the world, with 200 types of bread.
- Bread is high in fibre and aids digestion.
- Bread is high in calories, producing high energy.
- Bread remains one of the most affordable food staples.
- Bread is made from whole grains, making it a healthy source is carbohydrate.
- Whole wheat bread helps in weight loss.
How To Start A Bread Bakery In Nigeria: Step By Step Guide
There are different approaches to starting a bakery in Nigeria, but these are some necessary steps to starting a bread bakery in Nigeria:
1). Get Traning:
To become a professional baker, you need training in bakery and food processing. Going to work for a bakery or having an experience of working in a bakery would go a long way to help put you on a good start.
If you don’t want to work for a bread bakery, you could attend a bread bakery training and learn how to bake great bread, or you could simply hire an experienced baker and have them be in charge of the bread baking at the bakery.
2). Choose A Great Location:
When starting a bread bakery, doing a proper feasibility study cannot be overemphasised. You need to know the best areas to set up the bakery in.
Ideally, it should be a highly trafficked environment with ample parking space and close to residential environments so that a lot of people and businesses can see, visit, and also park while looking to purchase freshly baked hot bread.
Some other things to consider when choosing a location are:
- Nearness to affordable raw materials
- Nearness to market
- Cost of landed properties
- Power supply and road network
5). Building the bakery:
When building a bakery, you must build to the required standard set by designated authorities, this is crucial as the daily running of the bakery is wholly depending on it.
Beyond the minimum best practice, you should also make the interior design of the bakery rich and inspiring to visitors so that they immediately feel hungry and have their cravings kick in the moment they step into the bakery.
6. Procure Bread Baking Equipment:
Some basic bread baking equipment you need to procure are;
i). Baking Oven
Starting a standing bakery, you would need an industrial oven, most likely the electric industrial oven as it would improve the quality and taste of the bread. It might cost a bit higher than traditional ovens, but is well worth the price and would make your work a lot easier.
ii). Flour Mixer
The flour mixer is a device that mixes the flour and other ingredients into a dough ready for baking. Depending on the size of the bakery and the amount of bread to be baked, you could choose the size of the mixer to buy.
But it is important to note that the mixer determines the texture of the bread so the best affordable quality should be selected.
iii). Slicing Machine
Sliced bread is the most popular bread in the world. Therefore, the slicing machine is key if you are baking in Nigeria and for Nigerians.
iv). Baking Pans
It is essential to create or buy baking pans that would match the shape and the size of bread you intend to bake, and most importantly, the shape and size in demand by the market.
There must be a steady, reliable generator that can power all available devices you have in the bakery.
Challenges Of Starting A Bread Bakery In Nigeria
Here are some challenges that can affect starting a bread bakery in Nigeria, Africa, or many other places around the world:
- Lack of new creative recipes
- Unhealthy baking environments
- Bureaucratic bottleneck
- Poor Power supply
- Lack of investment
- Lack of industrialised equipment
- Poor attitude to work
- Poor managerial skills
- Lack of capital for large scale production
- Lack of adequate government assistance
- Poor security
To Sum It Up
Bread is the third most consumed food staple in most contries around the world. It is widely consumed across the various continents, and almost everyone likes the taste of bread, especially when it is freshly baked.
As a quick and cheap food anyone can get their hands on when they are hungry, starting a bread bakery business in Nigeria or anywhere else around the world can be a great move to make since it has a ready hungry market with almost immediate returns.
Cost Of Starting Bakery Busines In Nigeria
If you are passionate about baking and consumed with the zeal to expand your horizon by setting up your own bakery, here is a brief guide on formalities and everything else you will need to know. It involves quite a lot but you can start from somewhere.
DECIDE ON THE KIND OF BAKERY YOU WANT: the kind of bakery you will run will be dependent on your skills, your resources, time, goals and budgets.
You may decide to run an online bakery which doesn’t need a store, you only need to work from your home then put up good pictures of your work on your website where customers can place orders. Many Nigerians run online bakeries by websites and instagram pages.
You can run a counter service bakery which involves getting a commercial store where customers come and buy from the counter. It is the commonest form of bakery in Nigeria, example of a good, old and running counter service bakery that has consistently delivered quality flour foods is the high quality bakery in calabar, cross river state.
You can also choose to run a speciality service if you specialize in a certain kind of service like wedding cakes, bread and snacks for diabetic patients and for fit family. You get to choose whether to operate from your home or rent a shop. There are very many specialty shops in Nigeria; some are online while most of them operate in stores.
HAVE A DETAILED BUSINESS PLAN: A bakery, like any other business requires planning. You have to come up with a detailed plan that defines your business goals, source of funding, expenses, your competition and customer base.
Generate your capital either from potential investors, friends and family, loans from banks or your private savings then begin the acquisition of relevant equipment you will need. Like refrigerators, ovens, slicing machines, bread wrapper, mixers, utensils, pans, a supply van and a generating plant for power. Calculate your costs and figure out how to breakeven.
REGISTER YOUR BAKERY: Make your bakery legal by registering it with appropriate authorities like the association of Nigerian bakers. Get a lawyer to do the necessary paper work for your license and obtain NAFDAC approval to ensure that your products are safe for consumption.
HIRE LABOUR: You will need to hire labour irrespective of the type of bakery you are going to run. There is no possibility of running your bakery which is a small establishment alone, hire qualified, trust worthy and experienced staff to enable an start easy. Formulate guiding principles that promote work ethics if you really want to succeed.
FIND AND RETAIN CUSTOMERS: In order to find a market for your products, you must study your competitors. Find out the kind of services they render and work at setting yourself apart. Do you have special recipes? Use them; work hard at making your bakery different and a delight for potential customers.
Be prepared to market your product by all means.
Be ready to go an extra mile to make your services known to all and sundry. Social media and the internet in recent times has been an effective market place for young, thriving and experienced businesses, make good use of it. Create a website and make it available on the internet, this will make your products available to unlimited numbers of people who are likely to patronise you.
As the customers begin to troop in, you have to give each customer a memorable and beautiful experience, only satisfied and happy customers are likely to become repeat customers. Ensure that your staffs are polite, hospitable and courteous. Engage your customers politely and warmly to create a friendly atmosphere and ignite a sense of belonging.
With all the above properly and carefully set up, your bakery is set and with the high demand of bread, you can supply an average of fifty thousand loaves weekly. This will fetch you good profits after deducting total costs of production.
CHALLENGES OF RUNNING A BAKERY
THEFT: you are likely to be faced with theft because you will be producing in large quantities, it might go unnoticed that a few loaves are missing on a daily basis and this will affect your profits. The theft maybe carried out by your staff or by other people who get into the premises. This can be checked by installation of cameras for security and making adequate provisions for other security measures.
HARRASEMENT BY GOVERNMENT OFFICIALS: In Nigeria, government officials in the course of carrying out their duties tend to harass entrepreneurs. It may come in form of police harassing your supply van on its way to supply or by environmental health officers who come to inspect the premises of your bakery, their demands for bribe is alarming. This can be controlled by ensuring that all safety and health standards are maintained.
FLUCTUATION OF PRICES AND SPOILAGE: Constant fluctuation of prices in goods like flour and other ingredients used for baking may minimise your profits. If your production costs are too high, you may end up with little or no profits.
When you suffer spoilage or in cases where bread and other snacks get burnt, your input will be way higher than your output and this signifies a loss. The only way to put these in check is to ensure vigilance and discipline of staff, maintain your equipment as such that they don’t develop faults that mess up an entire batch of production.
I will also advise that you make purchases from whole sellers in large quantities, that way you are guaranteed of a constant supply at fair prices.