Mom-and-pop basics inspire GrandWest Spaza Shop operators

Automotive pioneer Henry Ford believed that family-owned businesses were only sustainable if the owners were engaged. While he allowed his children to nurture their interests before joining the family business, he lured them back once they were successful to take the Ford business forward. 

Ford’s success inspired Bam family patriarch Livingstone Bam to found the well-known Mncedi Store in KwaLanga, Cape Town, in 1967. The tenacious entrepreneur guided the business through trying periods, including having to rebuild the store after it was burnt down, until his passing in 1987. It’s no surprise that his 11 children have all gone on to continue his entrepreneurial legacy.

Natural-born entrepreneurs

Sango (61) tried his hand at various businesses – some of them failing spectacularly – before roping in sister Lindiwe (59) to jointly operate the Spaza Shop at GrandWest Casino and Entertainment World.

The novel mini-supermarket opened in March 2021 and caters to hundreds of staff members from the property who work odd hours and would otherwise struggle to buy groceries and household essentials. The Spaza Shop allows them to complete their shopping on-site, freeing up valuable time to spend with their families and on other pursuits.

Sango ran a bed-and-breakfast and a wine sales company and Lindiwe started her own clothing brand and manufacturing company. In 2012, the pair joined forces and opened a funeral parlour, which is being run by their siblings while they focus on the Spaza Shop. 

The Bams’ journey with Sun International began in 2019, but their plans had to be shelved until earlier this year, following the COVID-19 outbreak. The shop’s success has exceeded their expectations.  

“Shortly after opening, we realised the need for reasonably priced food and so we introduced amagwinya (vetkoek) to the menu, starting with only 20 units a day. We sold out within hours! We kept increasing the number until we reached 120 a day, and still sold out. Despite this great success, we settled on selling amagwinya only three times a week because we outsource production,” explains Sango, adding that they constantly test their methods in order to keep up with the demand and create a sustainable balance. 

Back to basics

Lindiwe explains that they rely on the business fundamentals they learned from their late parents. 

“My parents taught us that the customer is always right. Even when you don’t agree with them, understand their dynamics, have patience, and try to satisfy their needs. As a business owner, always be calm and in control of finances. You need to have a broad overview of day-to-day operations,” she says. 

As beneficiaries of Sun International’s Supplier and Enterprise Development programme, the pair are set to receive additional business support over the next three years, including a rent waiver, metered utility and operational costs, as well as marketing and communications assistance, courtesy of GrandWest. 

GrandWest is also helping develop the business skills they had gained while working at their parents’ shop in conjunction with Business Doctors Western Cape. The support is aligned to Sun International’s sustainability ethos that emphasises the enablement of entrepreneurs for economic growth.

He explains that the Spaza Shop’s customers are completely different to the ones served at Mncedi. The business environment requires a strategic and a customer-centric outlook. While the Spaza Shop deals only with staff, not guests and tourists, this is still a diverse customer base with a range of needs often influenced by religious beliefs.  

“Our clients mostly buy comfort food, such as chocolate bars, snacks, and biscuits. They also want energy drinks and pain-killers after a long day at work. Mncedi Store’s customers wanted medical products because they couldn’t afford doctors and pharmacies were far from townships,’ he explains. 

Their main challenges include navigating extremely tight profit margins and stock management. 

“We are constantly travelling to wholesalers to ensure our shelves are adequately stocked. We can’t always wait for scheduled deliveries from suppliers,” says Lindiwe.

She says the pair’s differing personalities and outlooks have been a key strength.     

“We don’t always see eye to eye when it comes to business, but we are great at communicating our views and compromising. For example, I’m stricter with finances than Sango, but we try to strike a balance because we share the same goal,” says Lindiwe. 

Onwards and upwards 

The Bams signed their contract with GrandWest in February 2021, with the shop opening on 31 March 2021. Sun International extended a R100 000 loan to the siblings for working capital and stock. This was in addition to GrandWest spending just under R400 000 on fixtures, fittings and general supermarket items such as shopping baskets. The shop is open daily from 7am until 10pm, with five employees working across two shifts.

Like Henry Ford, the siblings encourage their children to explore their own interests outside of the family businesses, while offering support from behind the scenes. 

The partners hope to solidify their entrepreneurial processes, lessen their day-to-day involvement, and explore other business opportunities. Their dream is to turn the Spaza Shop into a youth-run franchise that creates job opportunities and tax revenue.