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LEADING bakery Baker’s Inn is targeting to reach full production level by year end as the company is set to benefit from its product rebranding and lower bread price.
Production is expected to increase to 550,000 loaves per day from the current 355,000 loaves, managing director Ngoni Mazango told journalists after the rebranding event yesterday.
He said the company was now geared “to grow (daily) capacity levels to 550,000 loaves” following product rebranding and reduction in bread price. Baker’s Inn reduced its bread price in March this year, a development which has resulted in increased volumes. Mazango said production has since increased by as much as 30 percent.
“Our strategy is really lined up to get to full capacity,” said Mazango, who is former chief executive of Lobels. “By end of 2015, we would have reached full capacity.”
The capital expenditure, including what the company has already spent on equipment and rebranding and what it will spend to achieve full capacity level will get to $50 million.
Baker’s Inn, the unit of Innscor Africa, is also looking at replacing its entire delivery vehicle fleet and to modernise equipment. Without providing specific timelines, Mazango said Baker’s Inn, which enjoys 35 percent of the local market, would look into regional markets.
Last month, Innscor chief executive Toni Fourie said Baker’s Inn immensely benefited from the price cut to $0,90 from $1 after production rose to 340,000 loaves from 250,000.
Earlier at the event, chairman Addington Chinake said the company would continue investing in new equipment to keep pace with technological changes to remain efficient.
Baker’s Inn is part of the Quick Service Restaurants cluster Innscor Africa wants to unbundle and separately list on the Zimbabwe Stock Exchange by way of dividend in specie.
The move will create the only listed focused fast foods chain outside South Africa and blends well with the organisation’s thrust to grow it revenues outside Zimbabwe.
Online Reporter