Providing Africa with its favorite cuts
Meat is a favorite in most African countries and dependent on where you live the type of meat can be varied. Options range from beef, goat, lamb and chicken which are favorites.
In some areas, there is growing interest in rabbit and other birds. When setting up your butchery, the type of meat you sell will be determined a lot by the culture of the community you live in. This does not mean you cannot sell new meat products but doing so will require a lot of education of the community before they can start consuming a different type of meat.
In urban areas, there is a growing trend of supermarket delis providing meat however a larger population still prefers to buy from traditional butchers and markets. And even with this trend, there is still an opportunity for unique products from the traditional butcher and a need of specialized services for the customer.
To run a successful butchery the following factors need to be put into consideration. Trust this brief will help you evaluate or improve your butchery business.
Pre -Work
Before you start, you will need to survey your competitors so as to get insight into the industry. Find out about the legislation, health tax certification and any other requirements for operating a butchery in your area. You also need to know the other butchery operators in the area you are targeting. In some places you may find that the owner of the small butcheries is the same area is the same person. Find out what each of the butcheries or owners does really well and what they are not good at. Who their suppliers are, the partners, equipment or any strategies that make them unique.
Find out about the needs of the customers and who the biggest customers are and why. Are they family relations, part of a network the butchery owner is in or customers built as a result of referrals for quality products and services/
To understand the market ask the same questions you are asking for your business about their business and get answers.
Who Are Your Target Customers Segments
When there are no customers then we do not have a business but a hobby. There is no business without customers. You have to be clear about who you are targeting as your customers and the group has to be large enough for it to enable you build a sustainable business. Saying everyone who can eat meat is your customer is also not an option. It is important to define your customer by age, income, gender and in every social aspect as much as you can. For an existing business this could be the group/person that buys most from you.
By defining the customer specifically so you can see them in your minds eye in every aspect you know exactly how to please and even exceed their expectations. You will be able to understand their specific needs and even anticipate changes in taste and preferences.
Having a definite target customer enables you determine what quality of meat you will be offering, what they can afford and where to position your business so they can access you easily.
Your Value Proposition
Your value proposition refers to why your target customer should take up your offering as opposed to your competitors (other butchers) offering similar products or services. This can vary from growing your own stock, cutting up the meat for customers, home delivery, cooking it or simply guaranteeing that the meat is fresh every single day.
You value proposition could for a butcher near a school could be; to provide schools with fresh healthy and sufficient meat during school terms that will ensure students are well fed healthy.
While the vlaue proposition in a high end neighbourhood could be; to provide housewives with a wide range of fresh exotic meets to ensure they can have the variety they need in family meals.
While in both cases the meat may be fresh and healthy, in one case the butcher will focus on getting a supply source that will ensure they get the cheapest fair quality meat possible while the other will ensure they have a wide variety of meats so their customers will be able to vary their meals. They may also focus more part preparation by offering marination and other part cooking options to ensure The house wife saves time on meal preparation or offer them recipes and spices along side the meat sold whether these are paid for or not.
On the other hand, a small butcher on the highway whose target is public transport clients or driver will have a totally different value proposition. Their value proposition could be; to offer ready home made meals given the fact that most of their clients would want heavy meals to keep them working and are not thinking of cooking but may want to carry home some meat for their family. Each business’ value proposition will be different based on what the butchery owner wants to offer their client.
The more your value proposition is commonly offered by your competitors (e.g. all the butchers in your area offering to cut up the meat) the more it is an industry standard as opposed to being a unique selling point for your business. Determine what unique or outstanding things you can do. As a standard, offering tender fresh healthy cuts is expected by all customers and is an industry requirement. Most of the time just meeting the industry standard and doing that exceptionally well if you have positioned your business in the right place will give you an advantage that keeps you profitable. However if you do not have positioning advantage, think of other things you can do to keep your business ahead of the pack.
For examples your processing method if cubing – how well do you do it? Should you be using an axe or saw to cut the bone? This may seem small to you but will determine whether a mother who is making a meal for her children will by from you or the next butcher as a split bone in her stew could harm the child and whether she refers your butcher or not. Thus small change you make based on your target market will affect your business. This is because most business will try to keep costs down and in the process compromise on what is viewed as a standard practice.
Revenue streams
These will vary based on how many services and products you are offering or value propositions you may have. As a butchery may offer different plain fresh meat, have them marinated or cooked at different and extra costs. Delivery and any other processing may also be done at extra costs and all this may be different income streams. Often butchers will offer low cost services in their area at no extra or minimum cost to increase sales.
Think through the different revenue streams. Ensure you are not charging for something that your competition is offering free and look out for things your competition is charging that you can include in your offering without charging.
Channels
Communication Channels
This refers to how you communicate your offering to your target customers. How do they get to know about you and your current and future products/services. What channels do they engage on and can you use the same channels to reach them effectively.
Distribution Channels
This refers to how your target market gets access to your services and products. This could be through an online services; an online market place or your own online shop, or a physical butchery. As your business grows it can be a franchise network you own or partner with.
Most businesses today that have a physical presence today also have delivery and online options. Target customers will define what distribution channels you choose and where the physical channels are located.
For example if your target market is single career women / bachelors having a butchery in a business complex wouldn’t be odd especially if you offer packaged meals or even preparations for parties, partially or fully cooked meals and exotic options.
Customer relationships
When talking of customer relationships we are referring to how you relate with existing customers from the moment they buy. what do they expect of after sales services, how much do they expect you to stay in contact. Most butcheries may take it for granted but if there is opportunity to create long-term relationships between your customer and your business / you ensure you build and think through methods you can do so. This could be;
- keeping a book of new products / services the client may have asked for and making a plan to notify them when what they want is available,
- noting down what they buy often and keeping a physical note or metal note so the next time they come you are having meaningful conversations with them that can help you build your business
- finding opportunity to give exceptional service or give the once in a while discount or freebie
- note how you and your staff treat both current and potential customers both when serving them and in any case of interaction after
Customers, especially in a small neighborhood often become the friends, the market intelligence you need to grow, and even source of other business opportunities. You keeping and maintaining a good customer relationship goes far beyond the hours your business is open and should keep inconsideration social and community etiquette and expectations.
Key Activities
Depending on the services / value proposition, determine the most important activities you your business will be performing. This includes both you and your staff. By determining what is most important to you, you can decide what aspects of the butchery activities can be outsourced and which ones you must handle internally. Using the examples of the three different target clients above we can say
- the butchery near the different schools main activities will be to sources whole animals and probably hang them to be tender to ensure whey supply large amounts that are tender enough for the school children. These two activities, sourcing and hanging become most important for them. The cutting up may be something they pass on to their customer and the abattoir activities may not be in their interest
- on the other hand a butchery on the highway will have a different list of key activities. These could be cooking, keeping an eye on cost and even chopping. The sourcing would be left to a middle man who must ensure they supply them with high quality tender cuts.
- A high end butchery on the other hand may not only be interested in the abattoir but also how the animals are fed, grown and fattened. This may not mean they have their own animals but they may require that they vet the standards of their suppliers and if they grow into a large franchise even grow their own animals to ensure quality.
As you can see just by targeting a different type of customer or determining what you really are good at (value you bring) two butcheries on the same street need not be me too businesses.
Key Resources
the Key activities determine the resources you need in personnel, equipment and finance among other things. A high end butchery may need more refined equipment to cut and process, a butchery targeting schools may just focus on having large a cold room while a butchery serving food will have cooking equipment and have not only the butcher but service staff as well.
The level of knowledge and experience both in years and business areas will vary. e.g. knowledge in food costing may not be necessary for one running a butcher whose target clients are schools but this maybe necessary for the one serving food to travelers and drivers or to the the butcher offering marinated or partially prepared meals. By being clear about your human resources and equipment requirements you can be clear on what you need for financial resources i.e. how much starting and setting up this business will cost.
Key Partners
All the different aspects of the business we have spoken about will determine which key partners you work with and choose. Whether you want a meat supplier who brings the meat to you or you want to grow and process your own meat or, can you work with a local farmer? Who will be doing your accounts and how much knowledge they need to have. Can you do the books yourself or you need an expert to come in.
Cost Structure
Your actual costs will be determined by your activities and the resources you need. You keep your costs down by limiting these as they feed your cost centers.
Other things you may want to consider
Having gone through the key areas of what will influence your business model. Take time to decide what type of butchery you will run. This is not all. There is also trade secrets that come as a result of experience running a business day to day. For example; the weight of a full animal will only give you about a third of meat that you can sell. This is because half the weight is the head, hooves and offal and a further forty percent of that is the bones. Taking time to just hang around other players in the market or working for another will give you this kind of information that may not be available in business books.
When buying from a slaughter house, you are able to choose whether or not to buy the offal and so can easily determine the price. The best quality of meat would be that which you have been partially involved in its production where possible. We discuss this aspect of business in a separate section on animal husbandry.
Butchers not only supply cut meats to individuals and institutions (restaurants and caterers) but are also involved in production e.g. Supplying smoked and dried meats, biltong and other partially processed meats and condiments e.g. marinated cuts.
Key Success Factors
Location; this single factor can determine whether or not you are successful as a butcher. Choose a location that is convenient for both suppliers and customers, with customers having priority. A high traffic location like a market, mall or nest to a supermarket gives you the best options. If you run a separate eatery or restaurant you may have more options for choice but in this situation, you would need to have a good reason a people would want to come to your butcher/restaurant as opposed to one that is on their way
Quality; the quality of meat you are able to supply your clients with will determine how consistent they will be. Buy from reliable sources even if it costs you slightly more as this will determine whether of not you keep your clients
The Service & Product Range; determines the range of products early in the business so that you are able to determine the quality standards you require from your suppliers and what your clients will buy early on. Product variance will also be determined by your location, and transportation methods available. While you may be able to charge a premium for products that are not easily available locally it could also mean they are not available because the demand does not justify production. Where there is a justified gap it would be in your interest to produce to meet the demand.
Cleanliness; as with any food item the level of cleanliness will determine how whether or not you remain open. Alongside this ensure the meat is well stored and the store meets the required health standards in your area.
Knowledge; If you are not trained as a butcher having an experienced person in your team and understanding how to cure meat before selling is information that is indispensable and that will require that you take the time to learn and understand for you to be effective in the business. Good business sense especially in determining stock flow will ensure you sell your meat when it is at its best quality. Not knowing how to manage this and a good understanding of meat processing may result in poor sales and losses.
Storage; Have sufficient facilities to store the meat depending on your client base. Depending on your business model, how soon the meat comes to you after slaughter and how long it takes before it gets to the client determine how large the premises needs to be and whether or not you need freezing partial processing.
Equipment; the quality, facility and size of equipment will determine what you are able to offer your clients. Simple equipment may cost you some clients, for example, using a saw to cut bones as opposed to hacking it and having bone splinters in the meat may cause a client to prefer one butcher as opposed to another. From the basic products (meat cuts) to processed meats (marinated meats, sausages) to meals all this will be dependent on the equipment you have.
Marketing; while depending on the local clientele can be a source of income, there is great value in targeting larger clients like hotel, restaurants and outside caterers. Such clients will give you the volume business you need to expand and venture into new areas of meat processing.
Business Strategy; It is in your interest to ensure you start simple and build the business and auxiliary products as you go along. Offering too much, in the beginning, may compromise quality which is the most important aspect in your success. Sell only what you can do very and replicate this excellence in other areas of your business as you grow
Traceability; if you are supplying pre-packaged and processed foods then you will need barcoding so that you can trace different packages of food.
Related Services
There is a range of services that you can offer alongside in your butchery. The range is varied and can include;
Meat condiments
An eatery
Marinated meats
Recipes to go alongside new meats or cuts that you are introducing
Certification & Insurance
In most countries you will be required to meet health standards in your country and so will your staff. The premises may need to be inspected especially if you are processing the meat on a commercial level to supply other butchers. An environmental certification may also be required if you slaughter the animals and birds.
Your insurance will also need to cover your employees and you need employer liability insurance as the work requires the use of sharp knives and equipment.
Hallal & Kosher Meats
There is an opportunity to capitalise on specific segment however if you decide you want to supply to specific groups then you will need to make the decision early when setting up your butchery to ensure all guidelines are met. Having a separate counter for kosher or halal meat may not really work and it is best to have the butcher branded as halal or kosher as this will not affect sales from the rest of the market that is not concerned with the slaughter process.
Trends In The Industry
As the world focuses on healthy foods the source of meat is important for many people. In developed countries the source of meat is often an area of concern and it would be wise that as you build capacity you are able to grow your own meat or partner with farms. This is more relevant to small animals and birds in Africa. This ensures you always have the best cuts and are able to lock in major buyers because of your superior quality. Also, as the market develops licensing of products will provide butchers with the opportunity to go into mass production of unique products that they may cobrand with clients.
Record Keeping
High end butchers’ shops will require more in depth record keeping than lower risk food businesses, and the extent and detail of these records will vary depending on the specific activities carried out. A small outlet that disposes of its meet daily will also need less record keeping than a more robust outlet. As with cooking and restaurants, activities that could affect food safety should be considered when developing food safety management procedures, including how they are carried out and how the activities can be managed to ensure food safety. These includes:
- cooking, cooling and subsequent storage times and temperatures
- controlling cross-contamination from processes such as slicing and vacuum packing
- cleaning and disinfection arrangements
- personal hygiene requirements
- water quality
- management of food safety activities, such as:
- details of suppliers and other traceability arrangements
- staff training
- complaint management
- maintenance of equipment, including calibration (accuracy) of temperature monitors
A record of this information should be held along with a summary of the types and volume of products produced and the processes used and a plan for establishment showing layout, location of equipment with the direction of food flow.
Investment Requirement
A small profitable butchery can be started with a capital investment of about USD 1000 in most African countries. This would be in a high traffic residential area, possibly with opportunity to make and sell street food to either travelers or workers in the area. High end butchers would require investments of at least USD 20,000 for good quality equipment, freezers and displays.
Are you looking to start a butchery? Feel free to ask questions and contact me for support as you set up.
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