Opening a modern bakery in Nigeria can be an exciting and lucrative venture.
With the increasing demand for baked goods and pastries, particularly among the growing middle class, there is a huge market waiting to be tapped.
In a conversation with the owner of DEMASTER Bakery, Mr. Oyegade Adeyemi, he said, it is important to carefully plan and strategise before embarking on this journey, adding that, ‘You need to know the rudiments of the business; that is the first thing.’
He said, it is essential to conduct thorough market research to identify potential customers, the location where you want to set up your bakery, the consumption patterns of that area, understand their preferences and needs, and assess the competition.
These, he stressed, will help in determining the ideal location for the bakery as well as the types of products to offer.
Equipment
An oven is important for a bakery, but other equipment is necessary too. Mixing, moulding, cutting, and storage require additional tools. Cutters and mixers are needed but may not be as expensive as the oven.
Business Capital
Market conditions make it difficult to determine how much to invest in the business, and predicting the market is uncertain due to various factors in the country, said Adeyemi.
So to establish a modern bakery, it is important to own the land where it will be built to avoid harassment.
Renting a place is not ideal. The cost of the land depends on location and can range from N500,000 to N50 million. But the basic equipment needed for minimal operation will cost at least N5 million.
You can explore renting a bakery and start baking your bread if you do not have enough money to buy or build a bakery, or you can explore franchising with others and produce your bread with recipes to sell. This is considered the easiest way to start a bakery business.
Registering
For someone setting up a bakery in Nigeria, the most important thing you must start with is to be registered with NAFDAC. Once that bakery is registered, you have done the basics.
As for association, belonging to an association is not the top priority. But it does not mean you will not cooperate with your colleagues. If you do not cooperate with your colleagues, it is to your disadvantage because what 10 people would do at a go and get, you as a person may not be able to do it, and that is why you see the Premium Breadbakers Association of Nigeria (PBAN) gathering together, the Association of Master Bakers, with over 5,000 bakeries.
Advice
Adeyemi advised that, before going into the baking business, it is important to have knowledge and skills. One can acquire this through books or by finding mentors.
Investing in knowledge is crucial for success in business. It is important to understand the challenges that come with the baking journey and be prepared to overcome them. Simply wanting to establish a bakery because others are doing it is not enough.
