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As the ‘real food’ (organic, local, slow), picky diets (paleo, banting, vegan), and all-round love affair with new and exciting foods gain momentum, farmers’ markets and ‘up’ markets are no longer just tented outposts for selling fresh produce, but a place for artisans to showcase their creations and launch their businesses. By Tracy-Lee Nicol

THIS LITTLE PIGGY WENT TO MARKET

Frustrated Joburger, Greg Straw, took matters into his own hands and created his own über picnic park, also known as the Fourways Farmers’ Market.

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CREATING A MARKET PLACE FOR SMEs Q&A

How did you get into markets?I’m a serial entrepreneur and have founded tech businesses in England and South Africa. The V&A Waterfront put out a tender to build a 100% food market and my business partners and I leapt at the chance to apply our tech and IT knowledge to a market.

We won the tender on 24 September 2012, with a deadline to open by 1 December. It was a challenging time, but we managed, with support from our V&A partners.

What makes this market unique?We’re different because we’re a hybrid model of market and retail and we’re open seven days a week. This means it’s a space for our 50 vendors to be full-time artisans and foodies who don’t need to travel between markets, and they get practical experience of operating a business. For example, each stand has its own water and electricity meter so the vendors manage their own fixed expenses. An example of our impact as an incubator is a vendor selling bubble tea who has grown to seven stores around Cape Town’s markets.

By October 2012, word was spreading through the close-knit market community that we were looking for tenants. With the prime location, applications started flooding in and we had to be very selective about who we brought on board – we’re always looking for unique products that aren’t just aimed at tourists, but locals too as it’s an even split with visitors.

What is the appeal of markets?People want wholesome food and they want to know its story and origin. It’s a global trend that is gaining momentum in South Africa. There are now 42 markets between Cape Town and Paarl. I don’t see that rate of growth lasting, and the numbers will stabilise in the next few years.

What should a prospective marketeer know before launching into business?Marketing is very important. We’re able to draw attention to the market through large billboards and street posters which vendors would never be able to achieve on their own, but it’s also up to them to create a social media presence. It’s not expensive to market your offering these days.

What should vendors know about leases?Each market is different and will have its own model, so do your research. At our market we don’t have a blanket approach as fresh produce vendors have a lower profit margin than finished food products. So some get a flat rate, while others pay a percentage of turnover. Ensure the market you’re joining has a model that will help you be profitable too.

Markets are also great starting points because there isn’t the pressure of a long-term lease. That said, you need to know and accept the terms and conditions of leasing a spot, particularly at very popular markets with long waiting lists.

How seriously should prospective vendors take their market? Very seriously. With popular markets you need to prove that you’re passionate and able to run a successful business. We don’t just look at product offering and presentation, we insist on a business plan and interview.

What is a common mistake made by vendors?They often miscalculate how much money they’re going to make. It takes time to build a following and the food market is tough. Cooked food is highly profitable but you’re competing with 50 other vendors for customers’ lunch money, notwithstanding external competition. You must manage your finances properly – plan for slower months so the business doesn’t collapse, and make contingencies.

Are markets more profitable in summer?That depends on the kind of business you’re running. In high summer this market can see 12 500, and in winter that can drop to 8 000. Summer will see light, fresh foods, drinks and ice-creams; in winter people will want heartier foods. You’ve got to be attuned to the changing seasons. and customer demands.

What’s your career background?I’m a landscape architect and horticulturist, with several smaller add-on businesses.

How was the Fourways Farmers’ Market conceived?I’d bought the old Keith Kirsten nursery, which also had an adjacent

Greg Anderson is the entrepreneur behind one of Cape Town’s busiest food markets. The V&A Food Market sees 12 500 visitors a weekend in summer. Sound like a place you want to launch?

GREG STRAW AND Greg Anderson, founders of Fourways Farmer’s Market and the V&A Food Market respectively, explain the hype around markets, and why they’re such a great business oppurtunity for entrepreneurs looking to reach captive markets and secure prime locations.

GREG ANDERSON, V&A FOOD MARKET

GREG STRAW, FOURWAYS FARMERS’ MARKET

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vacant plot. While fixing it up, it struck me that Joburgers work their backsides off Monday to Friday, with little escapism available on the weekend. I love picnicking, and saw an opportunity to build a picnic park for families like mine.

To solve the hassle of catering I came up with the idea of an outdoor supermarket. That’s when the market started taking shape.

What research backed up your idea? I visited and researched markets all over the world and in South Africa to see what worked and what didn’t and then formulated my own idea. People flow and ergonomics are very important to a successful market. This market has been planned in AutoCad and the resulting aisle layout means that each vendor has ample space, there are no dead spots or bottlenecks, and items are grouped into sections like a supermarket.

We also made distinct areas for buying and consuming, essentially creating different ‘rooms’ for different functions and to accommodate all visitors.

This doesn’t look like a lean operationIt’s not! There are the beautiful gardens and lush lawns to picnic on, with add-ons like security cameras, baby changing facilities, umbrellas, car guards, cleaners, a paramedic, music bands, garden and lawn maintenance and carpentry. It’s capital intensive and high maintenance, but it puts the market in a league of its own. There are rose gardens, olive groves, veggie and herb patches, water features and arbours, beautiful flowers everywhere – and while people scoffed at the money spent to achieve this, and questioned the ROI, people walk in and are blown away. It’s a place they want to keep visiting.

How have you created a profitable model?In two years we’ve grown to 106 stores – 100 are leased to vendors, six belong to us because leasing isn’t sufficient to create profit. We supplement income with sale of coffee, sodas and water, and we sell all the liquor. We limit the market to Sunday from 10:00 to 15:00 to create exclusivity and give our vendors a break. The rest of the week the venue is leased for private and corporate functions.

What is the secret to getting a market right?First is organisation. Next is getting your mix right: The ratio of finished foods, prepared foods, food ingredients, raw foods, craft, beverages, gifting and jewellery. We’ve ensured there’s no direct competition with the vendors, that the quality is very high, and they’re selling something new and different that customers want to buy. We insist that vendors pay attention to the whole consumer experience, as that creates a lasting experience.

How can a market help launch new businesses? We’ve had vendors build up such a client base in 18 months that they’re now supplying local supermarkets or building their own shops. While it’s a part-time passion project for some, it’s a stepping stone for others, depending on their goals. As a start-up you come in at a minimum rental, have a space and an audience, you can develop your product and brand and get to know your true target market, and you get massive exposure.

What have been some unexpected snags?With seating capacity for 2 400 people in a day, we’re technically Joburg’s largest restaurant and you wouldn’t believe what people can do to the infrastructure. There’s a lot of maintenance every week so it’s ready for the next Sunday.

We’re expanding to other locations now, applying lessons we’ve learnt. We’re in the final stages of zoning for a new market and managing objections.

From an old nursery and vacant plot, Fourways Farmers’ Market sees up to 6 000 feet every Sunday.

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Herzon and I met twelve years ago on a taxi. He was studying to be an accountant, I was going to chef school. Whenever we met we’d talk about food.

In 2011 we bumped into each other again and I was trying to open my own restaurant. I had been demoted in my previous job, and I convinced my brother to bankroll my dream. The restaurant was a super expensive non-starter. We never even served a single meal.

At the same time, Herzon worked as an accountant and owned a food trailer that he paid people to run for him. He wasn’t making profits and I convinced him to come on board full-time.

A bumpy, harsh startWe branded the trailer, put in some more equipment and hit Arts on Main. We had no idea who we were, we were just going to bring restaurant food to the people, from a trailer. We didn’t last three months. We weren’t ready for a market and we didn’t have thick skins.

Licking our wounds we took to the streets of Midrand. For two years we persevered and slowly developed an identity, an offering and a following. Our first day, we had eight customers and walked away with –R480. We realised offering restaurant food wasn’t working for us and we re-evaluated everything. Each week the numbers increased until we were serving 80 customers a day.

Another fortuitous meetingA vendor at the Fourways Farmers’ Market asked us to help to redesign his boerewors rolls. It got us a foot in the door and we realised how special this market was. We persisted for three months before getting in. Again, we had no idea what to serve because we couldn’t sell burgers, boerewors, sandwiches, pregos, chicken wings… what was left? We settled on goujon chicken (crispy fried chicken fillet strips) our least favourite because it was hard work, but everyone loved it. With a small deep-fryer, we increased progressively from 120 portions, and when that doubled we bought bigger, better equipment. At the 400 meals mark we bought our 1992 double-decker Mercedes bus that was converted into a kitchen and dining area. We gained exposure in magazines and landed a spot on TV with Ultimate Braai Master.

Those winnings helped us fund our growth, but the market really changed our lives. It’s a spot where corporate decision-makers take their families and that’s how we’ve landed corporate catering.

Learning important lessons» Have your own identity and style. We started out selling expensive

food and people at markets didn’t want that – they want delicious street food.

» We learnt to take criticism constructively and grow a thick skin. » Be flexible. Introduce yourself to the market, but don’t wait for them

to decide who you should be.» Our core offering allowed us to grow a trusted following who were

game to try other things like soft-shelled crab, trout and quail, because they knew the quality and they were curious.

» We now have a staff contingent of 18 people, seven permanent. We focus on spirit as much as qualifications when recruiting, because that makes as much of an impression on customers as the food.

» Preparation is important. We start prepping three days in advance so that we can deliver quickly and maintain quality in a small space.

» Don’t give up. » Keep careful tabs on costs.

COMPANY: Sumting FreshPLAYERS: Andrew Leeuw and Herzon LouwLAUNCHED: 2012

MASSIVE GROWTHThick skins and open ears have seen this business grow exponentially (by 9 000%) in three years. Test your idea before pouring in the cash.

Andrew Leeuw and Herzon Louw, founders of Sumting Fresh, failed at their first market. So they went back to the drawing board and today are a roaring start-up success. These are their lessons on making the most of markets.

ENTREPRENEURS CASHING IN ON MARKETSCASE

STUDIES

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Our adventure into food markets started entirely by accident. I was a corporate innovation engineer, my sister, a lawyer. We agreed to meet our best friends at Neighbourgoods Market in Joburg, but got our times mixed up. We missed our friends and by 12:30 most of the food was gone and what was left was expensive. We paid R200 for a cheese platter and two beers because we were that hungry and it was a simple supply and demand equation.

My sister and I are entrepreneurs by nature and spotted an opportunity to bring Serbian and Eastern European food to the market. We contacted the managers of Neighbourgoods, pitched our idea and they invited us to present our food. We roped our mother in to make a feast of Serbian food. She slaved for hours and the market managers were blown away.

Leftovers for weeksOur first few Saturdays were really tough. We over-estimated how much we’d sell and had this huge spread of food that we’d eat ourselves and give to charity. We took an iterative approach and started paying attention to what was selling and what wasn’t, quickly axing the non-sellers. Our burgers were a winner. I believe in specialisation of labour, so we focused on redefining the burger experience by listing all the things we hated about classical burgers, and that’s how we ended up with a flat, folded patty, a non-traditional bun, and no tomato sauce or mustard. It took us two and a half years to perfect our Balkan Burger. Even now with our shop in Greenside, we have six subtle topping variations.

Navigating the start-up daysOur start-up capital was minimal; I bought a braai for R4 700, and we paid for ingredients and other business expenses with salaries from our full-time jobs. We put about six pay cheques into the business and only really started seeing profit after a year. Our mom and dad helped us, and our friendly family banter became entertainment to our customers, who also learnt about a different culture through food and interaction.

At that time we were focused more on building the brand and getting our name out there than making money. After a year we decided to expand to Fourways Farmers’ Market on a Sunday. We were working seven days a week, but by August 2013 Lidija was working full-time in the business and I joined her. I made no contingency plans and that motivated our success.

Creating exclusivityWaste is expensive, so we always set goals for ourselves of, say 100 servings, and work towards that. That has created exclusivity and demand because people who arrive late at Neighbourgoods are disappointed to miss their shot at a Balkan Burger, so we tell them to get to Fourways early the next day as we’ll be there.

By September 2013 we’d created a loyal following and a demand for the brand. We were also able to buy and launch our Balkan Burger bus which is a retro-fitted 1967 short body school bus, so we could be mobile.

A bus in the wayWe were effectively food truck pioneers in Joburg and had no one to guide us. We took our bus to Arts on Main in Maboneng and parked

it at the entrance but that didn’t work out: People walked past to other restaurants. It was bad for sales but good for marketing and brand building.

We started getting calls from people asking us to cater for their events, parties, weddings, corporate functions, and that catering has become the bread and butter of the business Monday to Friday between markets.

Big concerts, big crowdsOver time we’d become part of the close-knit artisan community and we’d share news and leads with each other. As a result we landed a spot at one of the In The City concerts thanks to our friends at

COMPANY: Balkan BurgerPLAYERS: Bojan and Lidija IvanovicLAUNCHED: 2012

Bojan and Lidija Ivanovic, founders of Balkan Burger, started their business for less than R5 000. Thanks to exposure at markets, they’re now busy every day of the week, and have become niche caterers.

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“Every weekend we made it a condition of sale that customers give us feedback that provided a lot of insight.”

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FARMERS MARKETS GO DIGITAL

BRINGING MARKETS TO DIGIBOTS AND LOCAVORSFarmer’s markets are great but not everyone has the time or inclination to battle the crowds and carnival atmosphere for their fresh, organic and artisan produce.

So forward-thinking entrepreneurs in the UK are now allowing you to enjoy all the fresh produce benefits of a market without ever leaving the house, thanks to digital.

Online marketplace Bonativo, launched in early 2015 in the UK, offers Londoners access to the freshest local produce from nearby farms, all online. And it’s not just customers who are smiling, producers have seen sales go crazy since listing.

The right time to go online“It’s the right time to bring the farmers’ market concept online,” says Bonativo co-founder, Nigel Akehurst.

Each of the 750 products featured has a description of the farm where it was grown or made. And farmers are offered a direct route to consumers, helping preserve their margins. Prices are set by the producers and Bonativo takes a small percentage of each sale. The company handles the logistics, and once an order is processed, the goods are sent to Bonativo’s warehouse where they are packaged with a handwritten note.

“We’re taking the stress out of selling online, leaving farmers to focus on their business of farming to a high standard.”

Bonativo isn’t for the budget conscious though, with one loaf of bread costing £5. “It’s more for the young professionals and older,” Akehurst admits. To make the model worthwhile, the minimum spend per order is £30 and the company offers bundles of certain products, such as the Sunday roast bundle for £30, or the meat and cheese charcuterie bundle for £40.

Bonativo, processing ten orders a day, isn’t the first company to offer such a service, with the wave of food box subscription services carving out a lucrative niche across UK, Europe and the US. In the UK, the organic food market is worth £1,68 billion per annum and food subscription company Hello Fresh! is set to haul in a projected £10 million in its second year in business.

Learn more: Google ‘Farmigo’ to learn about another digital farmers’ market in the US that’s gained huge traction — and funding.

Learn moreMother Truckers – A Joburg-based association of food trucks vendors. www.facebook.com/JHBFoodTrucks Market on Main – A weekly up-market food and craft market in Joburg CBD. www.marketonmain.co.za Neighbourgoods Market – Founded in 2006, this Cape Town and Joburg market is one of the oldest weekly food markets. www.neighbourgoodsmarket.co.za Fourways Farmers’ Market – The picnic spot for Joburg families and friends. www.ffmarket.co.za V&A Food Market – A tantalising offering of raw, fresh and prepared food. www.marketonthewharf.co.za

Braamfontein restaurant, Great Dane. Through that exposure and constantly being visible at markets and events, other concert and event organisers have contacted us.

Event organisers look for caterers who can bring experience as much as food to their events – and that’s what we did.

Big challenges and lessons» We never planned to go into the food business so we’ve gone with

the flow, and learnt quickly from our mistakes and pivoted.» We still haven’t figured out stock because everything is fresh and we

don’t want waste. When we run out, we leverage that into a kind of exclusivity and FOMO. Sometimes, less is more.

» We’ve kept things lean and simple – patties, burger buns, packaging and toppings, and that lets us focus on delivering the best product every time.

» As we’ve grown we’ve learnt big lessons in shop fitting. We spent a lot of money on the truck, the container at The Sheds and in Greenside. They’re beautiful but we could’ve pulled it off with less money.

» You don’t need a lot of money to get started. But you do need to invest time and energy.

» Use the market to validate your product ideas and get exposure.» When picking markets, research them, find the busiest and do your

utmost to get in.» If you’re doing something different and amazing, you’re more likely

to get into high traffic markets as it gives them the edge. » Brand ambassadors are an important marketing tool. We don’t have

business cards, just social media and a website. EM

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