In 2008, three young Egyptian entrepreneurs launched their business Delicious Bakery. Tarek El Nazer, Basel Mashhour and Sameh El Sadat founded the first bakery to target Egypt’s upper class with fresh bread, pastries and sandwiches. In a market dominated by informality, lack of product differentiation, and low margins – their model stands out. By using a sophisticated par baking and frozen delivery system, the retail locations stay stocked with hot bread and minimise overhead.
Delicious Bakery is using three sales channels: retail stores branded as The Bakery Shop (TBS) – serving a full range of products and drinks, a B2B catering service, and “Delicious Bakery” corners in supermarkets. Because only 2% of the Egyptian population is considered part of the upper to middle class income bracket, the three young entrepreneurs began focussing on the mass market.
After five years of operation, they shifted from only managing an artisan retail bakery business to semi-industrialised bakery production facilities to cater to all three revenue streams (TBS, Delicious Bakery & B2B). With a main focus on expanding the company’s B2B line by providing a frozen (par baked) range of bakery goods, TBS believes in exponential growth in the next three years since a huge demand for the product is foreseen.