Producers on the "ready-to-eat" market are struggling to find suppliers for sandwich production, on a market that now, after several years, brings entrepreneurs revenues worth 700,000 euros.
In 2005, Dan Moga set up Rivoli Food, a Constanta-based company that makes sandwiches.
"I chose this type of business due to the growth of the ready-to-eat market in Romania and the company has been operational for three years," stated Moga.
At 29, when he started his own business, Moga just had experience in the restaurant industry. He describes the development stages of such a business as "simplistic and sometimes naive," as the business is based on numerous ideas that have been presented at important fairs in France, Germany and England.
Initial investments were small. "Subsequently, I invested around 1.5m euros in an automated plant with a production capacity of 60,000 units per day, with equipment from Germany and England," he explained.
Whereas in the first year of activity Rivoli Food had a production capacity of 1,500 units per day, after massive investments started in September 2007 and finished in May 2008, capacities surged to 3,000 units per hour, according to Moga.
Production started with 4 employees, whilst the number now stands at 15. The company offers three types of sandwiches. Clients were lured through the door-to-door sales method.
The company distributes sandwiches in petrol stations, such as Petrom and Mol Romania, as well as in local stores. It posted turnover worth around 700,000 euros last year. "We're trying to grow through permanent investments and new partnerships. This year, we plan to double turnover to some 1.5m euros," stated Moga.
This year, another sandwich producer was also founded, Sandwich-Break, by Mihai Ursu and a partner. "I started the business at 26, together with my friend. We created several recipes, we looked for ingredients suppliers, headquarters, equipment and employees," said the company's manager.
Initial investments stood at 45,000 euros, whilst generated revenues were subsequently reinvested. Sandwich-Break's cofounder puts this year's turnover at 200,000 euros alongside a profit margin worth 20%.
Difficulties they experienced in the sandwich production activity were related to finding reliable suppliers of ingredients. Operations started with 2 employees and the firm now has 6 employees.
In Bucharest, there are very few large sandwich producers, whilst the majority are very small firms that do not offer special products. Short-term plans target a stronger foothold on the market by adding new fillings and products, whilst during the medium term the firms target partnerships with coffee shops and open-air terraces and even nationwide expansion in franchise networks.
Rivoli Food
Initial investments were small; 1.5m euros was subsequently invested in an automated plant with a daily production of 60,000 units
Production started with 4 employees, which has now risen to 15
Distributes sandwiches in filling stations, such as Petrom and Mol Romania, as well as in local stores
Is trying to grow through permanent investments and new partnerships and this year plans to double turnover, to 1.5m euros
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