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Innscor Africa Limited’s bread making subsidiary, Baker’s Inn, has recorded a 36 percent increase in sales volumes to 340 000 driven by price reductions.
Chief executive Mr Toni Fourie said the jump in sales volume was mainly driven by the reduction in the price of bread from $1 to 90c.
“Our sales volumes for bread have increased significantly from 250 000 to 340 000. This increase is a direct result of the 10 percent reduction in the price of bread to 90c, following the introduction of the bond coins which enabled us to give our customers more value for their money,” he said.
Baker’s Inn also reduced the price of its pies to 80c from $1, a move which is expected to have a significant impact on overall volumes.
Mr Fourie said Baker’s Inn is being haunted by some bad management decisions which included alterations in some of the recipes that customers had become accustomed to and the move to invest $16 million in a new bread plant.
He, however, said Baker’s Inn has since gone back to its original bread recipe.
The firm has a 35 percent market share and is facing stiff competition from revived bakery, Lobels.
Baker’s Inn is part of the Quick Service Restaurants cluster that Innscor wants to unbundle and list on the stock exchange by way of dividend in specie. The move will create the only listed African-focused fast food chain outside South Africa and blends well with the organisation’s thrust to grow its revenues outside Zimbabwe to a 50 percent contribution. – Wires.
Peter Tanyanyiwa
Online Reporter