Susan Gordon, Business Reporter

Steven Golding, who has taken over the family bakery Honey Crust, says his focus will be on profit, not sentiment. - File

Local franchise holder of KFC, Restaurants of Jamaica has acquired the building in Old Harbour Square, St. Catherine which housed the indigenous family pastry business, Honey Crust Bakery.

The Financial Gleaner understands that general manager of Restaurants of Jamaica Mark Myers intends to locate another KFC outlet there while Honey Crust Bakery, owned by Prime Minister Bruce Golding for more than two decades, has closed down its operations with an intention to retool, relocate and relaunch under the management of another generation.

Steven Golding will take operational control of Honey Crust from his mother Lorna Golding, The Financial Gleaner was advised.

The Financial Gleaner was unable to obtain comment on the price of the Myers/Golding deal, but was told by Steven that the market value of the more than 6,000 square feet property was estimated between $40 million and $50 million.

The deal is expected to close by the end of the month.

"Nobody is selling the bakery," said Steven Golding when questioned about the development by The Financial Gleaner.

"We sold the building to KFC and Honey Crust Bakery is relocating to Lincoln Plaza," he said.

Up to press time The Financial Gleaner was unable to contact Myers for comment on his plan for the 16 East Street premises in Old Harbour Square.

Opportunistic

However, the move was deemed 'opportunistic' for Honey Crust Bakery, given its plans to relocate to the family-owned complex by the end of the year.

"The timing is opportune as Mr. Golding is looking to retire from private business. He is opting out of it," said the son.

"His children are looking to take over and we are not sure if the Honey Crust brand will remain."

"Honey Crust was traditional home style bakery. In terms of the baking industry we have fallen behind. We have not advanced technologically," he explained.

If the name is kept, it would be for sentimental reasons only, he said. He suggested, however, that profit consideration would override sentiment.

Honey Crust employs 15 persons and operates 7 days per weeks with two shifts per day in a café-type setting.

The bakery produces bun, pastries and its main product bread.

"The business at present, moves about 30 to 40 bags of flour per week or anywhere up to 2,000 loaves of bread per week," he said.

Golding may discontinue the pastry line, substituting pizza, ice cream and salads.

"We introduced Pizza in the late 80s and it didn't hold. I'm of the view that with cable. it may take off now."

However, he underscored that the plans were not finalised.

The business will be scaled down with the smaller square footage at Lincoln Plaza being a factor.

He said for the immediate future Honey Crust would look at retailing in Old Harbour, and close down its distribution business.

"At one point we had four or five satellites across the island. We closed all the satellites and were left with a plant doing the retailing," he said

Lincoln Plaza fronts the Clock Tower in Old Harbour Square. The plaza houses 15 to 16 shop spaces, with 12 being occupied.

susan.gordon@gleanerjm.com