Ref. No - BFS938099

LocationSouth Africa, Western Cape

Ref. No - BFS938099

Sector - Retail

Asking Price
R1,800,000
Monthly Profit
R57,571
Asset Value
R 1,844,793
Stock Value
R 0
Yearly Net Profit
R 690,849

Summary

A rare opportunity to acquire a previously national food retail brand with strong recognition and proven scalability. Includes an operational store and full franchise rights, offering immediate income and significant expansion potential across South Africa.

Give me more information

Fully describe the business's activities?

Established food retail business offering a range of popular, everyday food products to a loyal local customer base.

The business operates through a customer-facing retail outlet, providing convenient access to quality food products in a proven retail environment. The core activity is the preparation, presentation, and sale of food products to walk-in customers, supported by established supplier relationships, operational processes, and an experienced management structure.

The business benefits from a day-to-day manager who oversees daily operations, staff coordination, and store performance, allowing the owner to focus on strategic growth opportunities.

Current operations include:

Procurement and management of food products through established supplier relationships
In-store retail sales and customer service operations
Product merchandising and presentation to maximise customer engagement
Daily store management, staffing, and operational coordination
Maintaining consistent product quality and customer experience

The business provides a strong foundation for future growth through opportunities such as expanding digital sales channels, developing partnerships with guesthouses, Airbnb hosts, and hospitality providers, introducing online ordering solutions, and exploring additional market opportunities.

This opportunity is ideally suited to an entrepreneur or investor seeking an established food business with an existing operational structure and the ability to unlock further growth potential.

How does the business operate on a daily basis?

The business operates as a structured food retail outlet with established processes, focusing on consistent customer service, product availability, and efficient daily operations.

Day-to-day activities include:

Opening procedures, stock checks, and preparation for trading
Serving walk-in customers and processing point-of-sale transactions
Product merchandising, display management, and shelf replenishment
Receiving supplier deliveries and managing stock levels
Staff coordination, supervision, and daily operational management
Daily cash-ups and basic financial controls

The business benefits from an experienced day-to-day manager who oversees daily operations, staff coordination, and store performance, providing continuity and allowing the owner to focus on strategic opportunities.

Established workflows, supplier relationships, and operational procedures provide a solid foundation for continued growth and future expansion opportunities.

What Advertising/Marketing is carried out?

Marketing is primarily driven through social media platforms, providing a cost-effective way to engage with customers, promote products, and maintain brand awareness within the local market.

Current marketing activities include:

Social media engagement and product promotion
Sharing updates, offers, and food-related content with customers
Maintaining visibility and connection with the local community
Leveraging customer loyalty and word-of-mouth referrals

The business has an opportunity to further expand its marketing reach through additional digital strategies, online ordering channels, targeted advertising, and partnerships within the hospitality sector.

What competition exists?

The business operates within a competitive food retail environment; however, it benefits from a differentiated product offering and a focused market position within its niche.

Competition includes:

National retail chains offering broader food ranges
Independent food retailers with overlapping product categories
Convenience stores competing for everyday food purchases

Competitive advantages include:

A specialised food offering that differentiates the business from general retailers
An established customer base and strong local market presence
A destination-style retail experience rather than a traditional convenience offering
Opportunity to strengthen market positioning through targeted marketing, hospitality partnerships, digital channels, and future growth initiatives

The business provides a platform for an owner with the vision and capability to further develop the brand and expand its market reach.

How could the profitability of the business be improved?

The business offers several opportunities to increase profitability through revenue growth, margin enhancement, and operational optimisation.

Immediate growth opportunities include:

Introducing additional complementary offerings, such as a coffee range, to increase customer visits and encourage repeat purchases
Expanding the product range to increase customer choice and average basket value
Introducing bundle deals, combo offerings, and targeted promotions to increase transaction size
Developing additional revenue streams through partnerships with hospitality providers and other customer segments

Operational improvements include:

Reviewing supplier relationships and negotiating improved purchasing terms
Optimising stock management processes to reduce waste and improve margins
Implementing stronger upselling and cross-selling initiatives at point of sale
Using customer insights and sales data to refine product mix and pricing strategies

Strategic growth opportunities include:

Expanding the business model through additional locations or carefully structured franchise opportunities
Developing higher-margin branded or private-label products
Leveraging digital marketing and online ordering channels to increase customer reach

With focused execution, the business provides significant potential for a new owner to improve margins, grow revenue, and unlock additional value from the existing platform.

Give a breakdown of staff/ functions/ length of service?

The business has a team of 4 employees supporting the daily operations of the retail outlet.

Staff structure:

1 x Day-to-Day Manager
Responsible for overseeing daily operations, staff coordination, customer service standards, stock management, and general store performance.
2 x Shop Assistants
Responsible for customer service, point-of-sale transactions, merchandising, product presentation, and assisting with general retail operations.
1 x Storeroom Assistant
Responsible for stock receiving, stock organisation, inventory support, and assisting with store replenishment.

Do any have management potential?

Yes. The current Day-to-Day Manager has management responsibility and plays an important role in overseeing daily operations, staff coordination, customer service standards, and store performance.

The existing management structure provides operational continuity and support for a new owner, with further development opportunities available for an owner looking to strengthen and grow the business.

How involved is the Owner in running the business?

The owner provides overall oversight of the business, focusing on strategic direction, performance monitoring, and ensuring the business operates effectively.

The day-to-day operations are managed by the appointed Day-to-Day Manager, who oversees staff, customer service, and daily store activities, allowing the owner to take a more supervisory role rather than being involved in the daily running of the outlet.

When does the current lease end?

The current lease is in place until February 2027.

The lease provides the buyer with continued occupation of the premises through the existing term, with the opportunity to engage with the landlord regarding future lease arrangements as part of the acquisition process.

What are the trading hours?

The business operates during the following hours:

Monday – Friday: 09:00 – 17:00
Saturday: 08:30 – 14:00
Public Holidays: 08:30 – 13:00

These trading hours provide consistent access for local customers while maintaining a manageable operational schedule.

What are the main assets of the business?

The business includes a range of operational assets required to support the day-to-day running of the food retail operation.

Main assets include:

Retail shelving and product display fixtures
In-store freezers and refrigeration equipment
Large walk-in freezer facility providing significant cold storage capacity
Desks and office equipment
Point-of-sale (POS) equipment and systems
Coffee machine and related equipment
General operational equipment supporting the retail environment

These assets provide the buyer with an established operating setup, allowing the business to continue trading without the need for significant additional infrastructure investment.

Strengths?

Established brand with prior national footprint (±60 stores)
Niche positioning with limited direct competition
Proven, scalable retail model suited for franchising
Existing store provides immediate trading platform

Weaknesses?

Brand impacted by previous liquidation
Requires capital to relaunch and rebuild network
Systems and structures may need re-establishment

Opportunities?

Franchise rollout across South Africa
Product expansion (e.g. coffee, complementary food lines)
Strong upside through modern digital marketing
Ability to reclaim market share quickly

Threats?

Larger retail chains with overlapping offerings
Execution risk in relaunch phase
Economic pressure on consumer spending

What is the reason for the sale?

The owner is exiting the business due to health challenges that are limiting her ability to remain actively involved in the day-to-day operations.

The business presents an opportunity for a new owner to take over an established operation with an existing team, management structure, and strong foundation for future growth.
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Elmo

Elmo Lombard

LocationSouth Africa, Western Cape

Preferred method of contact

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