Conducting a deep operational audit with Realise Business has uncovered significant cost savings and new growth strategies for Imperial Gluten Free Bakery in Rydalmere.
As the owner of Imperial Gluten Free Bakery, Danny Haddad has worked with Realise Business adviser, Tim Noye, to improve business productivity while continuing the company mission to produce delicious gluten-free items.
“We are passionate about maintaining the quality of our goods and offering high-end gluten-free goods to the market,” says Danny.
The quest for quality growth and wider markets
In May 2019, Danny purchased the bakery that was established in 2011, attracted by the Victoria Road based business and the potential to scale up. The focus on gluten-free products gave it a unique selling point within a competitive marketplace.
The bakery sells gluten-free breads, cakes, pastries, and pies suitable for anyone with coeliac disease or gluten intolerance. Fresh preservative-free breads are baked daily and shipped Australia-wide in special vacuum sealed packaging.
Incorporating the gluten-free experience in the average family’s shopping and dining habits was a key area of potential growth to consider.
“From the very early stages of taking over the business, we noticed that it was a challenge for parents and partners to find food that was appealing to both gluten-free and non-gluten-free family members, and for the gluten-free customers to not feel as though they were singled out because of their dietary requirements,” observes Danny.
Plan of action
Expanding the business to cater for this wider market was a good idea, but Danny wanted to grow sustainably and not sacrifice quality. To develop the right strategies, Danny consulted Realise Business adviser Tim Noye.
After learning more about the gluten-free baked goods business, Tim proposed a three-point action plan:
- Operational audit and analysis of the cost of goods sold (COGS),
- Sustainable expansion
- Streamlining operational efficiencies.
“Without the support of Tim, we would have had no idea where to start,” comments Danny.
Operation audit and COGS analysis
The Deep Operational Audit was conducted to determine current business performance and reduce costs while not decreasing quality or value.
The tailored Operational Audit accumulates all business expenses then provides details of accurate running costs that can be worked on – with the overall aim of bringing costs down.
The audit of Imperial Gluten Free Bakery resulted in an advisory to:
- Review arrangements with core suppliers
- Negotiate or tweak what and how the bakery orders, to make the supply chain as cost-effective as possible
- Make in-house those major items that represent the highest bills for the business, rather than outsourcing.
Analysis within the operational audit, for example, cross-compared the costs of in-housing versus outsourcing items. It produced costings that showed this fresh ‘in-sourcing’ approach would mean considerable savings to the business.
Sustainable expansion
Tim supported the bakery’s aims of expansion as well as advising on strategic supply chain refinement and cost-trimming.
“I personally would say our growth has a lot to do with his support,” says Danny.
The first phase of the bakery’s expansion has been a success, according to Danny. He was able to land a major contract with a well-known large capacity stadium. As well as providing security, the contract enables further scaling of the business – operational costs may be reduced by as much as 10%.
Danny comments, “Business Advisor Tim Noye played a crucial part in streamlining our operations, restructuring the business and implementing new strategies. This, in turn, enabled us to grow our business and operations sustainably.”
The next phase of growth
The bakery is well on track to succeed, and Danny has further expansion on the agenda. “Our future aim is to expand, hiring more staff and producing our own flour blends to reduce operational costs.”
This will put the bakery in an excellent position to compete with larger similar organisations. Danny envisages that “attracting blue-chip clients and high-volume clientele such as stadiums and airlines” will be associated with the business expansion.
He endorses the advisory experience. “We wanted to grow sustainably without sacrificing quality, and the advice given has enabled us to do this,” says Danny.
As part of their profile-raising in the local area, Imperial Gluten Free Bakery will be offering seniors and pensioners a 10 per cent discount when they buy from the store.
Find out how the experienced advisory team at Realise Business can help your business achieve sustainable growth and what is involved in a deep operational audit. Book your advisory session today.
