For Cape Town chef and entrepreneur Shannon Smuts, growing a food business meant learning that strong sales do not always translate into a healthy business.
Her journey with Pure Good Food has seen her move from running the business largely on instinct to using financial data, digital tools and systems to support sustainable growth.
Smuts, who appeared on MasterChef South Africa Season 2, founded Pure Good Food after connecting with Baphumelele Children’s Home in Khayelitsha, which had started an organic food garden and needed a market for its produce.
What began as a small café has grown into a food-service business operating across schools, workplaces, events and cafés.
“Like many entrepreneurs, I started with passion, determination and very little structure,” says Smuts, who initially handled everything from cooking and marketing to bookkeeping and deliveries.
As the business expanded, she realised that revenue alone was not a measure of success.
“In the beginning, I measured success by revenue. Today, I understand that cash flow, margins, forecasting and sustainability are far more important indicators of a healthy business.”
Using technology as a business tool
Pure Good Food subsequently introduced Xero accounting software, point-of-sale technology, inventory tools and digital ordering platforms to improve visibility across the business.
“For the first time, we could see what was really happening inside the business and make decisions based on data rather than gut feel,” says Smuts.
Smuts also uses artificial intelligence for tasks including content creation, proposal writing, staff training and data analysis. She sees technology as a way to reduce administration rather than replace the human side of the business.
“It doesn’t replace creativity, leadership or human connection, but it allows us to work smarter and move faster,” she says.
Her advice to other entrepreneurs is to start small. “Choose one area that is causing frustration, whether it’s stock management, invoicing, reporting, or communication, and solve that first.”
For Smuts, effective systems ultimately give entrepreneurs more freedom to focus on growing their businesses.
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