PROFIT ON BREAD

Press, Volume CI, Issue 29908, 23 August 1962, Page 14

PROFIT ON BREAD

Inquiry Given Examples

(N.Z. Press Association) AUCKLAND. Aug. 22.

A large Auckland dairy selling 42.848 loaves of bread each year, made a net profit of only £44 13s 7d on the bread sales, the committee of inquiry investigating the wheatgrowing. flourmilling and breadmaking industries, was told today. Telling the committee this. Mr R. A. Wood, secretary of the Federation of Restaurants, Milkbars and Mixed Business Associations, said the federation wanted the retail mark-up on bread increased from |d to ltd a 21b loaf.

He said the mark-up was the same as it was in 1936. when a loaf of bread was sd, yet operating costs and the general standard of living had soared since then. Bread, like every other item, should stand on its own feet. Retailers should fairly expect a gross profit of 33 1-3 per cent, on bread, to cover overhead, interest on capital, and to provide a reasonable return to the proprietor for the very long hours he worked.

Mr Wood said the shop which sold 42,484 loaves of bread annually had an overall net profit of £2679, but it must be remembered the proprietors between them worked 249 hours a week This represented a return of 3s lOd an hour. The average hourly rate for which dairymilkbars worked was a “pitiful” 2s to 2s 6d an hour.