It can also come with lots of different stresses that you may not have thought of, but the good news is a bakery can be one of the most lucrative types of shops to open particularly within the food and beverage industry. Not all bakeries are the same.
Depending on your baking skills and budget, you may choose to open and operate a retail bakery or a wholesale bakery. A retail bakery business sells baked products directly to customers, whilst a wholesale bakery sells or supplies baked goods to retail venues like cafes, restaurants, and grocery stores. It's important to note that the latter type may require a bigger startup capital and workforce because with any luck you will be doing business with large-scale customers from the word go!
There are four basic bakery service styles:. If you choose this type of set up, consider how your customers will place their orders. It's important to have a user-friendly website, digital catalogue with pictures of your baked goods, and a smooth ordering and shipping process. Specialty Bakery - This focuses on a certain kind of baked product. Some common examples are wedding cake shops, cupcake sellers, and pie makers.
Vegan and other health-conscious bakeries also fit under this category. Bakery Cafe - Also known as sit-down bakeries. This is a retail business that has a dining space for customers to sit down and enjoy their baked goods. Counter Service Bakery - This is similar to a bakery cafe but without the dining area.
Just like any other food business, the success of your bakery depends on how solid your plan is. This is the phase where you set your goals, study your competitors, identify and understand your market, and finalise your products or menu. This is also where you line up your financing. Of course, you need money to run your bakery - and this includes not only the startup costs but also the funds needed for purchasing equipment and hiring staff. You will need to list down all the expenses you think you'll incur so you know how much money to invest.
This part of the set up can be tricky and very time-consuming so best practice is to hire a professional accountant or use a good accounting system that can help you manage your financial data. There are two ways you can go about this and it also depends on what sort of shop you're setting up. If you have the money in the bank or you're setting up a dine-in or counter-service bakery you will probably want to look for a place that you can operate from solely - just be sure to keep a check on the rent you don't want to be stuck with high rents from the get-go.
To increase profitability, decrease any possible expenses that do not negatively affect quality. This may mean choosing a different supplier, procuring energy efficient appliances or tightening labor.
Be sure to minimize food waste. Know the best time to purchase supplies, as well as the right suppliers. Consider all aspects of expenditures and potential payoffs. Although her initial expenditure was high, she now supplies English muffins and hamburger buns to about locations. Based in Eugene, Ore. She won the Mahan award in creative writing in and holds degrees in English and education with concentrations in journalism and psychology. By Miki Markovich. Logistics Know your area and competition.
Marketing Differentiate yourself from other bakeries. Employees Employees can lead your bakery to success or failure.
Expenses Running a successful bakery takes strategic planning. Ability to multi-task without bogging down in the small details. This is critical for all aspects if the biz. Staying on top of numbers, marketing, etc. If you are organized and timely it also allows you to step back, take time off and see the big picture of the business. My roots are in agriculture — growing up on family ranches and actively participating in 4-H and Future Farmers of America.
When the opportunity arose to return to Montana to work for a company that fused my passions for agriculture and entrepreneurial endeavors, it was a perfect fit. I'm proud to work for an organization whose mission and values align closely with my own. Montana Street, Dillon, MT Skip to Main Content. Cafe Menu.
If so, You may be destined for bakery cafe success! Subscribe to Updates. Business Ownership Freedom Franchise. Related Posts. Debbie Huber. Eric Keshin.
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