Ref. No - BFS938071

LocationSouth Africa, Gauteng

Ref. No - BFS938071

Sector - Food

Asking Price
R6,650,000
Monthly Profit
R203,686
Asset Value
R 9,991,076
Stock Value
R 50,000
Yearly Net Profit
R 2,444,227

Summary

This is a well‑established premium cake and confectionery business with diversified revenue streams across wholesale, retail, bespoke, and online sales. The operation is fully managed by an experienced team and is not dependent on the owner for day‑to‑day operations. It benefits from strong industry relationships, a prime retail location, and substantial production infrastructure. The business enjoys consistent demand supported by brand reputation and repeat customers. Clear opportunities exist to scale wholesale production and expand the retail and online offering.

Give me more information

Fully describe the business's activities?

The business is a well‑established, premium cake and confectionery operation specialising in bespoke decorated cakes for weddings, birthdays, celebrations, and corporate events. Its product offering includes custom celebration cakes, cupcakes, cookies, cake pops, cheesecakes, and a range of classic and themed cakes produced using tried‑and‑tested recipes.
In addition to bespoke orders, the business operates a fully equipped wholesale bakery supplying cakes to a portfolio of established restaurants, coffee shops, and hospitality clients across Gauteng. Wholesale production is supported by purpose‑built manufacturing facilities and established supply relationships that are not owner‑dependent.
A retail outlet operates as a cake slice café and coffee shop, located within a busy, upmarket shopping centre, generating consistent walk‑in trade. The retail operation offers cake slices, pre‑made cakes, beverages, and takeaway treats, and also serves as a brand showcase for custom cake orders. The business further supports sales through an online store, allowing customers to place orders for cakes and treats for collection or delivery, including via third‑party delivery platforms.
The business also provides dessert catering and is an approved or preferred cake supplier to several well‑known wedding venues and event partners. Operations are supported by trained management and staff, established systems, health certification, and infrastructure such as backup power, enabling reliable production and service continuity.

How does the business operate on a daily basis?

The business is managed on a day‑to‑day basis by an experienced management team. A manager is responsible for opening and closing the premises, overseeing production, retail operations, order processing, and logistics to ensure accurate and punctual fulfilment of all wholesale, retail, and bespoke orders. Staff members are well trained and operate within clearly defined roles and responsibilities across baking, decorating, retail service, administration, and delivery.
Daily operations are supported by established systems for order intake, production scheduling, and sales recording across wholesale, retail, and online channels. Retail sales are processed through a point‑of‑sale system, wholesale sales are recorded through accounting software, and bespoke and decorative cake orders are tracked separately, allowing for clear operational oversight and reporting.
The owner maintains an oversight role, focusing on overall performance, financial management, supplier relationships, and strategic decision‑making, while being minimally involved in daily production or front‑of‑house operations. The business has been operating largely independently of the owner on a day‑to‑day basis, with trained managers capable of maintaining operational continuity.
The operation is fully compliant from a regulatory perspective, with health certification in place, and is supported by appropriate infrastructure, including backup power at the retail location, ensuring continuity of service during outages.

What Advertising/Marketing is carried out?

Marketing activity is primarily brand‑driven and digitally focused, supported by targeted industry exposure rather than ongoing paid advertising. The business maintains a strong social media presence with approximately 20,000+ followers on Facebook and 16,000+ followers on Instagram, which serves as a key source of inbound enquiries and repeat customer engagement.
The business participates in wedding expos and industry events, providing direct exposure to brides, event planners, venues, and corporate clients. These exhibitions form part of the business’s strategy to maintain preferred‑supplier relationships and generate high‑value bespoke orders.
Additional visibility is achieved through an established website and online ordering platform, as well as third‑party delivery platforms supporting retail and pre‑made cake sales. The retail outlet further benefits from landlord‑led marketing initiatives within a busy, upmarket shopping centre, contributing to consistent walk‑in trade.
Overall, marketing expenditure is low relative to turnover, with demand driven largely by brand recognition, social media reach, venue relationships, and repeat business.

What competition exists?

The business operates in a competitive market that includes smaller bakeries and independent cake decorators. However, few competitors offer the same combination of wholesale production capability, a permanent retail outlet in a prime location, online ordering, and established relationships with restaurants, venues, and event planners. The scale of operations, infrastructure, skilled staff, and diversified revenue streams create meaningful barriers to entry and differentiate the business from smaller, less‑established competitors.

How could the profitability of the business be improved?

Profitability can be improved by expanding wholesale supply to additional restaurants and coffee shops and increasing utilisation of existing production capacity, including extended or night‑shift manufacturing. Further upside exists through wholesale product range expansion, improved retail margin mix, growth of online sales, and replication of the retail model through additional outlets or franchising. The existing infrastructure, systems, and staff are capable of supporting higher volumes without a proportional increase in overheads.

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

Management and Administration:
2 staff members responsible for overall day‑to‑day management, administration, order coordination, and operational oversight.
Production Team:
10 bakers responsible for wholesale and retail cake production.
3 decorators responsible for bespoke, decorative, and themed cakes.
Retail Operations:
4 retail staff members responsible for front‑of‑house service, cake slice sales, beverages, and customer interaction at the retail outlet.
Logistics:
1 permanent driver supporting deliveries.
1 temporary driver utilised as required.
Support Staff (Temporary):
2 temporary cleaners utilised as needed.

Do any have management potential?

Yes. The business has experienced management staff in place who are capable of overseeing day‑to‑day operations and supporting continuity of the business. The existing management structure allows the business to operate without reliance on the owner for daily operational activities.

How involved is the Owner in running the business?

The owner is not involved in the day‑to‑day operations of the business. Daily activities are managed by an experienced management team, with the owner retaining an oversight role focused on performance, payments, and strategic support. The business operates independently of the owner, allowing for continuity and a smooth transition to a new owner.

When does the current lease end?

30 November 2026

What are the trading hours?

The retail outlet operates Monday to Friday from 09h00 to 18h00, Saturdays from 09h00 to 17h00, and Sundays from 09h00 to 15h00.

What are the main assets of the business?

The business is fully equipped with purpose‑built production, retail, and support assets. The main assets include, among others:
- Somerset industrial dough sheeter
- Three large industrial Anvil ovens
- Large walk‑in fridge and freezer
- Additional walk‑in fridge
- Industrial storage shelving
- Front retail counters
- Multiple large commercial mixers
- Stainless steel production tables
- Cake tools, tins, and specialised baking equipment
- IT and support equipment, including Apple laptops and point‑of‑sale systems
The above represents a summary of the principal operational assets. A detailed and comprehensive asset register, including individual items and values, will be made available to serious buyers.

Strengths?

Established business with a strong reputation and long trading history
Diversified income streams (wholesale, retail, bespoke, online)
Experienced management team; not owner‑dependent
Well‑equipped production and retail infrastructure
Strong wholesale, venue, and industry relationships

Weaknesses?

Multiple systems and channels increase administrative complexity
Seasonal revenue fluctuations - Wedding-related revenue is concentrated in specific months, which can create uneven cash flow across the year.
Single retail outlet - Physical retail exposure is currently limited to one location, restricting geographic reach through walk-in trade.

Opportunities?

Expand wholesale supply and geographic reach
Increase utilisation of existing production capacity
Grow online sales and product range
Replicate the model through additional outlets or franchising

Threats?

Economic sensitivity - Demand for premium celebration products may be affected by broader economic downturns or reduced discretionary spending.

What is the reason for the sale?

The sale is driven by the owner’s decision to focus on family commitments and spend more time with her children. The business is profitable, stable and fully operational, with an established management team responsible for day-to-day operations; the sale is not due to any financial or operational concerns.
Location

Contact | Enquire

Tommie

Tommie Cronje

LocationSouth Africa, Gauteng

Preferred method of contact

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