The Pastryworks
| Business Location: | Urban |
| Province | Eastern Cape |
| Branch: | Nelson Mandela Bay |
| Business Start Date: | |
| Busniess Type: | cc |
Business Dynamics and Challenges
Business Activities:
Bakery and Events organiser
Challenges/Needs:
Rising Operating Costs. During the current challenging economic period, The Pastryworks faced increased costs of key inputs like wages, flour, sugar, butter, and energy. The rising cost of ingredients and utilities can significantly affect profitability, making it harder to sustain the business and create new job opportunities. As overhead expenses increase, The Pastryworks needs to pass on the costs to consumers, which could reduce demand or shrink margins.
Decreased Consumer Spending. During the current economic downturn, consumers tend to cut back on discretionary spending, including non-essential food items like pastries, specialty bread, and cakes. This decline in demand directly impacts sales, limiting The Pastryworks ability to expand and create new positions. A lower customer base means reduced production volumes, fewer orders, and less revenue to fund job growth.
Competition from Larger Brands During economic downturns, supermarkets with in-house bakeries have a competitive advantage due to economies of scale, broader distribution channels, and lower prices. Independent bakeries like The Pastryworks struggle to compete, leading to lower sales and limited capacity for job creation.
Intervention Insights and Results
Intervention Details:
Seda assisted the client in applying for ECDC’s Jobs Protection and Stimulus fund.
Outcome Details:
The R150,000.00 in grant funding helped The Pastryworks to keep paying its employees' salaries on time, preventing layoffs or salary cuts, and ensuring that all 12 workers remained employed.
Client Feedback
Client Comments:
Seda’s help, guidance, and assistance has been invaluable help to us to move forward with our business. We could not have done this without them.
