Wednesday, July 16, 2014

Retraction of the economy in the country already affects bakeries

The deceleration of the Brazilian economy has impacted the market of bakeries throughout the country. The thread has suffered from the negative results recorded since last year and is forecast to grow only 3 percent by the end of the year. Other than that, the expectation is that the result from getting worse in the next year, as high inflation has influenced the increase in food prices and reduction of power consumption.
"This is a reality that is being felt throughout the power segment, since retailers don't have presented the same performance seen in recent years," pointed out the food service Managing Director of Gouvea de Souza (GS & MD), Sergio Molinari. For him the result draws attention and will be the first year in which the market will perform under 10%. "The Brazilian businessman was used to grow, but will have to face this new reality, as the real growth will not be greater than 3%," he said.
The expert pointed out that despite the retraction, the bakeries are still great investment models, since business success depends only on the vision and entrepreneurial enhancement. "We have about 10 thousand bakers, who are showing positive growth, in addition to important profitability".
Given the uncertainties, Molinari says that modernize the undertaking is essential to distinguish themselves in the market. "The bakeries must adapt and provide different experiences of purchase throughout the day, since the consumption profile changes between breakfast, lunch and dinner".
To do so, identify the public profile and products of greatest interest may be the solution. "We have to be careful with fads. Example of this are the wine cellars, which work very well on drives geared for classes A and B, but that doesn't reflect the reality of shops in peripheral neighbourhoods ".
Large sectors Among the companies recorded sharp drop in the first half of the year is the network of bakeries Dona Deôla. With hopes to keep the growth in 2%, number of clients seen last year, the company seize the moment to organize the business, since the situation should worsen in 2015, as the Group CEO, Flavio Del Nero. "The first half was not positive, because we had an increase in the prices of inputs and the transfer had to be inhibited by fear of the fall in consumption. If we were we would have run through a lag of 10% to 15% ".
According to him, the Director of the World Cup also contributed to the negative result, but without affecting the revenues of the brand. "The world has not been positive for us, since we recorded a significant drop in the movement. In addition, we had difficulties in controlling the production of food in Brazil games days, which impacted on waste ".
With 13 units between street shops and points in hospital, the Group invests in attendance 12:0 am to consumer loyalty. In addition, two new units are planned, until 2016. "This model of operation helps to dilute fixed costs, since night demand has grown in the city of São Paulo. We have a diversified public, and during the week we ended up picking up more corporate profile, which on weekends is exchanged by the families, "he said.
Among the major difficulties that the network has faced, Del Nero points out the lack of skilled labor. "We don't have a lot of problems with bakers and confectioners, because we have good policies in wages. But it's hard to find professionals for physical attendance at the store ".
High standard structure Another which also suffered from the impact of the World Cup in Brazil was the Boston Bakery. Located in the region of Itaim Bibi, in São Paulo, the brand saw its sales decrease by up to 20% in the world games, reaching 30% in days of Brazil's games, as did the manager-owner of the brand, Gilson Dutra. "At lunch, for example, we recorded a reduction of up to 70% in consumption in Brazil games day, since many companies started to release employees sooner".
With 12:0 am operations, the network-with three bakeries with different names-, invests in the quality of services. "Two years ago we expanded the ability of 50 buffet for 220 seats, soon is expected to grow three times more", says the Executive. He believes that the bakery who works only with breads will not be able to survive for long.
Considered a gourmet boutique, the Boston Bakery features a menu ranging from sushi to soup and pizza. "We have a full grocery store. Here he can buy from a wine and to rice package toilet paper ".
Small entrepreneur as well as the major networks of baking, the small business owner in the business has also suffered with the downturn of the Brazilian economy. Among them is the Santa Efigênia bread and Cia, with two units in the central region of São Paulo and which saw its sales fall 35% in one of the units during the World Cup in Brazil. "The situation is complicated because the prices have increased a lot and we're not getting through. The industry is suffering a big THUMP, since everything has been readjusted up inflation, "said the report, the network's owner, Marcelo Amorim.
Without great growth prospects, the entrepreneur stresses that went on to invest in a production center to reduce business costs, optimizing the operation. "Today we are expanding and renovating our units, investing mainly in food service service", recalled him.
According to Amorim, today is very difficult to act as a follow-up, since there is no negotiations with industry inputs. "Eating out is very expensive. Besides the rent is expensive and the workmanship is also high, getting the position of the entrepreneur pass the costs to consumers. I believe this is a moment to reassess the business, already thinking about next year, "he said.
Diário Comercio Indústria & Serviços - 16/07/2014
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