- Business Plans Handbook
- Business Plans - Volume 05
- Bread Bakery Business Plan Business Plan
Bread Bakery BUSINESS PLAN
BREADCRAFTER
8900 Green Lake Road Port Hanover, Michigan, 49333
This business plan is a tightly constructed, succinct consideration of all factors relevant to launching this bakery. From rent charges to competition and seasonal changes to costs per loaf, this plan hasn't left anything out...all without being overly verbose. This exemplary plan is very focused and complete, which will help the business stay on course.
EXECUTIVE SUMMARY
The company.
Awareness of high quality baked goods is on the rise. Good bread is a rare combination of nutrition, convenience, and luxury. Today's consumer has less time to create wholesome, handmade bread, but increasingly appreciates the nutritional and sensory benefits it provides. Good bread provides fiber and carbohydrates in a convenient, low fat form that is portable and delicious. Good bread never goes out of style.
Breadcrafter will produce and sell high quality, handmade breads to the residents and tourists of Port Hanover and Freeman County. The Company will focus on European Style; naturally leavened breads and baguettes made with high quality ingredients. Breads will be baked and sold at a storefront facility using a 4 deck, steam injected bread oven. Labor saving devices will allow the proprietor to run the entire operation with the help of two part time, seasonal employees.
Breadcrafter's main competition includes a health food store, three pastry shops and three supermarkets in the Port Hanover area. Its advantage lies in the high quality of its products due to specialization and artisan manufacturing. The main marketing focus will be an eye catching sign, the scent of fresh bread wafting out of the storefront, and periodic printed advertisements. The company will sample its products liberally.
After establishing the operation, the company will explore the possibility of making takeout sandwiches. Delivering wholesale bread and baked goods to area restaurants and specialtyretailers will also be considered.
The company is being founded by Kevin Richards, an artisan baker currently baking breads and pastries for Toothsome Foods Company in Port Hanover, Michigan. Kevin has spent the last two years building the TFC program from the ground up. His wife Renee Richars is also a bread baker, having baked for one year at the Grainery Food Co-op, Breadcrafter's chief competitor. Together they bring a wealth of practical experience and a realistic market sense to the company.
Breadcrafter is currently seeking $70,000 in loans to get the business underway. Major costs include equipment purchases, shop rent, ingredient purchases, site modifications, and marketing, which total $61,000. Projected sales for the first three months, based on market and competition studies, will total $41,087. Total operating expenses and cost of sales will leave an average profit of $4,740 per month.
Opening day is scheduled for July 1st, 1996. While Breadcrafter has the potential for high growth, the first three years will be spent establishing company financial stability and increasing market share.
Breadcrafter will be created to serve the Port Hanover community by exploiting the need for a good bread bakery. It will offer a variety of high quality, European and American style artisan breads, baked fresh in its storefront bakery.
The company's immediate goals are to achieve start up by July 1st, 1996, in time to capitalize on the lucrative summer tourist season. It will start with the proprietor, Kevin Richards, as baker and manager with the help of two part time employees. The company should gross over $100,000 in its first year. Long term goals include the addition of a takeout sandwich store to the storefront and wholesale bread sales within one year.
Kevin Richards, the proprietor and baker, is the creator of Breadcrafter. For four years, he has been employed at Toothsome Foods Company, a specialty foods manufacturer in Port Hanover, Michigan. His experience as a Production Supervisor and as a Research & Development Cook bring a sense of production realities and technical savvy to the company. As the driving force behind TFC's current Handmade Bread program, Kevin has two years practical experience with sourdough breads. He holds a BA in English Literature from the University of Michigan.
Renee Richards, Kevin's wife, also has bread baking experience. She baked bread at the Grainery Food Co-op in Port Hanover, Michigan for one year, and she contributes a keen sense of the bread market. She also contributes retail sales experience accrued through several retail jobs around Port Hanover.
The company is in the process of securing $70,000 in start up financing.
Breadcrafter's breads will stand out from the competition due to their uniqueness and outstanding quality. Most of the breads are European in style, including Sourdough, Miche (a traditional French whole wheat bread), and Sourdough Rye. These breads are made by the sourdough method which uses no added yeast. This method imparts a rich flavor, which can be tangy or mild, as well as a toothsome inner crumb and a crackly crust. By using this method, a skilled baker can create truly delicious breads without added fats or sugars, making many of Breadcrafter's products 100% fat free. Sourdough breads also have an extended shelf life, remaining fresh for days without the use of preservatives. Breadcrafter will also offer specialty breads, which will be made in the sourdough way with the addition of such luxurious ingredients as Parmagian cheese with fresh ground pepper and dried Michigan cherries with roasted pecans. Spent Grain Bread, made with barley leftover from beer brewing, is another unique product that Breadcrafter will offer. Two varieties of French style baguettes will be offered fresh daily, a high demand product that is available nowhere else in the area. Breadcrafter will also produce White and Wheat Sandwich Breads with soft crust and a tender crumb for traditional American Style sandwiches. As the needs of the customer change, so will the lineup of Breadcrafter's products. The bakery equipment is chosen with versatility in mind.
After establishing the business, Breadcrafter will research the possibility of producing sandwiches to increase revenues. This investment would require approximately $1500.00 for the purchase of equipment and ingredients. The company will also pursue wholesale contracts. Toothsome Foods Company has indicated interest in a contract to produce two Christmas products on a per loaf basis, Cherry Chocolate Fruitcake and Midwest Christmas Stollen. These products can help generate revenues in the slower Autumn months. The proprietor will also consider producing some of Toothsome Foods' current lineup of Handmade Breads on a wholesale basis.
A self serve beverage cooler filled with soft drinks will also help increase revenues, as will the sale of fresh brewed coffee.
Production of sellable breads is projected to begin on July 1st 1996. Raw ingredients will be ordered for twice a month delivery from North Farm Co-op and Sysco Inc., at which time a two week production schedule will be drawn up by Kevin Richards, the proprietor/baker. Ingredients will be stored in a dry storage area and in a walk in cooler (already on the proposed premises). Rent of the facility will be $1,050 per month with utility costs running approximately $725/month.
Scheduling will begin with three large bakes per week (MWF) and two small bakes (T,TH). Due to the extended shelf life of sourdough breads, product can be sold for two days before staling. Each bake day the baker will bake breads in a deck oven. The oven provides intense, even heat and a controllable amount of steam injection, allowing tremendous control of crust crispness. Everything from soft white sandwich breads to thick crusted, dense savory breads to sweet baked goods can be perfectly baked in this oven. While breads are baking, the baker will begin mixing the long fermenting doughs to be baked off the next day. Labor saving equipment including a dough divider and a bread moulder makes this possible. Hot breads will begin coming out of theoven by 7:00 AM, and all baking will be finished by 10:00 AM.
The storefront will open at 9:00 AM and close at 6:00 PM Monday through Friday. Saturday hours will be 9:00 AM to 4:00 PM for sales only. Part time employees will work the counter and assist with store maintenance during peak hours while the baker is baking. A beverage cooler and coffee machine will encourage convenience sales at the register.
Breadcrafter will economize on bookkeeping costs by handling its payroll duties in house. Year end bookkeeping will be handled by a professional accountant.
The specialty bread market is about to experience enormous growth. Throughout the country small bakeries are appearing at an increasing rate. Chain stores, such as Great Harvest Bread Company, are experiencing tremendous growth by capitalizing on the wholesome appeal of fresh baked loaves. According to the Bread Baker's Guild of America, a trade organization, membership increased 40% between 1994 and 1995. As people become more aware of its healthy nutritional profile, good bread becomes even more attractive.
There is currently only one source for artisan breads in Port Hanover, Toothsome Foods Company, where the proprietor learned to bake. Market tests performed in the summer of 1995 by Toothsome Foods Company showed strong demand for the product, no price resistance and the need for a more frequent and visible presence. As a pilot program with no promotion in the summer of 1995, Toothsome Foods Company was able to sell all available loaves (20 30 per bake, two bakes per week) all summer long. Even without the benefit of window signage or a consistent delivery schedule, Kevin Richards and TFC have developed a loyal following of regular buyers that continues to grow.
The Millwright Bakery in Maple, MI., a similar operation to Breadcrafter, currently bakes 200- 700 loaves a day for wholesale in the Connor City Area. This bakery has been open since November 1995 and has not yet experienced a summer tourist influx. It has stopped taking on new accounts for fear of exceeding its production capacity during that season. Millwright finds the Port Hanover area very attractive, but delivery from Maple is impractical. This summer season will bring Millwright a large influx of cash, and they will almost certainly consider establishing a bakery in Port Hanover if none yet exists.
Breadcrafter will set up its storefront bakery in the Green Lake Shopping Center. The center is conveniently located on one of the busiest arteries to and from Port Hanover. It has plenty of parking and is easily accessible from the road. The shopping center currently contains a successful, higher end grocery store, a successful liquor convenience store, and a donut bakery that also sells country clutter handicrafts. The shopping center is currently a destination for people seeking gourmet foods. These people will appreciate Breadcrafter's products. There is very little market overlap between Breadcrafter and the donut shop, and the two could exist in synergy. Pricing of artisan type breads around Port Hanover currently ranges from $2.50 per loaf (GraineryWhole Wheat) to $5.95 per loaf (Toothsome Foods Pesto Bread). Breadcrafter's products will range in price from $2.25 (Sourdough Baguette) to $4.95 (Pepper Parmesan Loaf).
COMPETITION
Grainery food co-op.
Breadcrafter's primary competitor. The Grainery currently has a customer base that regularly buys whole grain breads. These customers are interested in healthy foods, and they will appreciate the attractive nutritional profile of our products. Due to undercapitalization, the Grainery will have trouble responding to the quality advantage our equipment and methods provides. Many potential customers are reluctant to patronize the Grainery, perceiving its patrons and employees as "too liberal". True or not, these customers may feel more comfortable at Breadcrafter. Renee Richards, the proprietor's wife, was formerly a Grainery bread baker. She knows their business well.
Helmut's Pastry Shop
An established bakery specializing in pastries and doughnuts. They have a capable facility. Due to heavy investment in pastry equipment and relatively small bread sales, they are unlikely to react strongly to our presence.
Twin's Bakery
Very similar to Helmut's.
The Coffee Mug
Specializing in donuts, pastries, and country clutter handicrafts. They sell some lower quality breads. Major risk is their location, right next door to Breadcrafter's prospective site. This risk could also be an asset, bringing bakery customers in search of better bread to Breadcrafter.
Fred's Markets
Large supermarket with in store bakery. Fred's offers nonscratch, relatively low quality breads and pastries at very low prices. Their largest advantage, other than price, is the convenience of one stop shopping. There is some possibility of future wholesale distribution of our products.
Daley's Supermarkets
Very similar to Fred's
Taylor's
Similar to Fred's and Daley's, but smaller. Higher possibility of future wholesale distribution.
Toothsome Foods Company
Downtown specialty foods retailer. Current employer of Breadcrafter's proprietor. TFC has a small, undercapitalized bread program Due to the absence of the baker, they are unlikely to compete. Proprietor will offer to buy some of the bakery equipment. Future wholesale distribution of contract products is a strong possibility.
Breadcrafter's production capacity will be an advantage over the specialty stores. Product specialization will be an advantage over the pastry shops and supermarkets. Breadcrafter's product quality will be an advantage over all local competitors.
Breadcrafter will sell its products to new and repeat customers from its storefront in the Green Lake Shopping Center, located on the busy stretch of M-17 between Port Hanover and Crescent Heights, Michigan. A large, tasteful, storefront sign will catch the attention of passing motorists. The smell of bread as it comes from the oven will bring customers in from the parking lot. Breadcrafter will offer a sample of fresh baked bread to anyone who comes into the store.
Breadcrafter's products will be truly unique in the marketplace. The look, feel and taste of its breads, when compared with the competition, will underscore their quality and value. Many of the products, such as Pepper Parmesan Bread and Sourdough Baguettes, will not be available anywhere else. Breadcrafter will also actively encourage customer satisfaction. Our product line will react to the needs and desires of the customer, thereby encouraging repeat and word of mouth sales. As a small hands on facility Breadcrafter will have the freedom to react quickly and accurately to changes in the market. Due to its uniqueness and convenient location, Breadcrafter will become a destination for food lovers.
Printed advertisements, which will run opening week, will highlight bread as an everyday product, to be purchased fresh on a weekly or daily basis. More printed advertisements will run Labor Day weekend and during the Christmas season. Costs for these advertisements will be approximately $200 each.
The major risk to any Port Hanover area retail operation is the seasonality of the customer base. Breadcrafter will address this problem by opening at the height of the lucrative summer season. This will give the company a good supply of working capital to help with the startup period. The company will market itself primarily to the year round population. Contract products prepared for Toothsome Foods Company will bring in cash during the slow fall season. Unless strong demand shows a need, labor will be eliminated in the slower seasons and advertising will be minimal. Depending on available cash after Christmas, Breadcrafter will contemplate adding a sandwich bar to serve local shoppers and employees.
Breadcrafter will budget $9,800 in cash reserves as a cushion to help weather the startup period.
(Personal Income Statement removed for privacy.)
Start Up Costs
The compnay is in the process of securing financing for startup. The proprietor currently has $20,000 from private sources and is seeking $50,000 in additional bank loans.
OPERATING COSTS
Two part time employees will be hired to start working on opening day. They will be retained until Labor Day weekend unless strong sales show a further need for them. In the fall, winter and spring, the proprietor and his wife will be the only staff required. Employees will be paid $5.50 per hour, and will work a combined total of 30 hours per week. Wage expenditures will be $707.00 a month with additional payroll taxes running $71.00, for a total expenditure of$778.00.
The Green Lake storefront currently under consideration rents for $1050 a month.
Heat and Electric bills for Jordan Galleria, a downtown storefront of approximately the same dimensions required by Breadcrafter, pays $225.00 at the height of the winter heat season. Taking into account walk in and reach in cooler use, a figure of $350.00 is a reasonable estimated monthly average.
The bread oven will be run four hours per day on busy bake days. Conversations with other bakery owners have indicated that a 4 deck oven consumes $4 of gas per hour, for a total of $343.00 per month at maximum capacity.
A total figure of $725.00 per month is a reasonable estimated monthly average.
Advertising
Breadcrafter will run an advertisement in the Port Hanover News Review during opening week. Another advertisement will run Labor Day weekend. Total advertisement expenditures will run $200 per month. The News Review is known to do spotlight stories on new Port Hanover businesses and Breadcrafter will take advantage of this publicity.
Advertising expenditures will be kept to a minimum in the fall, winter and spring. The company will rely on community service functions, liberal sampling, and word of mouth to reach new customers.
Repair and Maintenance
The estimated maintenance cost for the first month is $500.00. From there it gradually diminishes to $200 a month for the remainder of the year. After the first of the year maintenance estimates are reduced to $100 a month.
A Business Owner's Policy, covering contents, liability, and some loss of income, will cost $400 $500 a year for Breadcrafter, as quoted by Sam Williams of Port Hanover Insurance. Worker's Comp will run $2.25 for every $100 paid. Breadcrafter has budgeted $50 a month in general insurance and $20 a month in Worker's Comp. Health Insurance premiums for the proprietor and his family will run $250 per month.
Taxes and Licenses
The company has budgeted $150 a month on miscellaneous taxes and licenses.
General Supplies
General supplies will consist mainly of bread bags which cost $.05 each for paper and $.03 each for plastic. Bag material, which affects the quality of the crust in storage, will be chosen by the customer. These prices have been included in the cost of sale of each loaf. Cleaning and maintenance supplies will total no more than $50 per month. Breadcrafter has budgeted $125 per month as a conservative figure.
Professional Fees
Professional fees after startup will be kept to a minimum. The proprietor will perform all the necessary filing and bookkeeping chores required except year end tax filing and calculation of depreciation. The company has budgeted $325 in January and
$325 in March to cover these needs.
Miscellaneous
Breadcrafter has budgeted $120 per month to cover miscellaneous expenses.
Proposed Baking Materials Requirements
Proposed Equipment Requirements
Miscellaneous Requirements
Bread Cost/Profit Analysis
Beverage Cost/Profit Analysis
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Bakery Business Plan Template
Business Plan Outline
- Bakery Business Plan Home
- 1. Executive Summary
- 2. Company Overview
- 3. Industry Analysis
- 4. Customer Analysis
- 5. Competitive Analysis
- 6. Marketing Plan
- 7. Operations Plan
- 8. Management Team
- 9. Financial Plan
Bakery Business Plan
You’ve come to the right place to create your bakery’s business plan.
We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their bakeries.
A bakery business plan is a plan to start and/or grow your bakery. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan, and details your financial projections.
How To Write a Bakery Business Plan & Sample
The following information will provide a description of what to include in your bakery business plan along with links to an example for that section:
- Executive Summary – The Executive Summary section provides a high-level overview of your plan. It should include your company’s mission statement, as well as information on the products or services you offer, your target market, and your business goals and objectives.
- Company Overview – The Company Overview section provides an in-depth look at your company, including information on your company’s history, ownership structure, bakery location, and management team.
- Industry Analysis – Also called the Market Analysis, in this section, you will provide an overview of the industry in which your bakery will operate. You will discuss trends affecting the industry, as well as your target market’s needs and buying habits.
- Customer Analysis – In this section, you will describe your target market and explain how you intend to reach them. You will also provide information on your customers’ needs and buying habits.
- Competitive Analysis – This section will provide an overview of your competition, including their strengths and weaknesses. It will also discuss your competitive advantage and how you intend to differentiate your bakery from the competition.
- Marketing Plan – In the Marketing Plan section, you will detail your marketing strategy, including your advertising and promotion plans. You will also discuss your pricing strategy and how you intend to position your bakery in the market.
- Operations Plan – In the Operations Plan, you will provide an overview of your store’s operations, including your store layout, staff, and inventory management. It also includes information on your warehousing and distribution arrangements and a list of long-term milestones or business goals.
- Management Team – In this section, you will provide information on yourself as the talented baker, your team, your experience, and your roles in the company.
- Financial Plan – In this section of your bakery financial plan, you will include your financial statements: income statement, balance sheet, and cash flow statement. It also includes information on how much funding you require and the use of these funds.
Next Section: Executive Summary >
Bakery Business Plan FAQs
How can i complete my bakery business plan quickly & easily.
Learn more about writing a successful plan by using this bakery business plan template .
Where Can I Download a Bakery Business Plan Template?
Get a downloadable bakery business plan template here .
What Are the Main Types of Bakeries?
A bakery can be retail or wholesale. A retail bakery sells baked goods directly to customers, while a wholesale bakery typically sells products to other businesses, like restaurants, grocery stores, specialty shops, and cafes.
How Do You Get Funding for Your Bakery?
Bakeries are most commonly funded with personal savings and bank loans. Credit card financing and angel investors are also popular forms of funding for bakeries.
Learn More: Seeking Funding from Angel Investors vs Venture Capitalists
What Are the Main Sources of Revenues and Expenses for a Bakery?
The primary source of revenue for bakeries is its baked good sales. This includes deliveries and online orders. Sometimes bakeries also earn from bulk orders from wholesalers or special occasions.
The key expenses for bakeries are rent, wages and salaries, ingredients and packaging.
What are the Steps To Open a Bakery Business?
Opening a bakery business can be an exciting endeavor. Having a clear roadmap of the steps to open a business will help you stay focused on your goals and get started faster.
1. Develop A Bakery Business Plan - The first step in opening a business is to create a detailed bakery business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your bakery business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your bakery business is in compliance with local laws.
3. Register Your Bakery Business - Once you have chosen a legal structure, the next step is to register your bakery business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to open your bakery business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Bakery Equipment & Supplies - In order to start your bakery business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your bakery business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.
Learn more about how to start a successful bakery business:
- How to Open a Bakery Business
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How to Create a Bakery Business Plan: Guide and Template
By Debra Weinryb
Are you a talented baker looking to start or grow your business? A bakery business plan is a great place to start. A good business plan will help you outline all the steps necessary to make your bakery successful – like hiring a talented management team, building an effective marketing plan, and securing the technology you need to boost sales, like a bakery POS .
After you’ve decided on the type of bakery you want to open – whether that’s a bakery cafe, food truck, specialty bakery, or another type – it’s time to get into all the fine details.
Your business plan is a crucial part of starting your new restaurant because it will help you structure your ideas and goals, what types of products you will sell, what your marketing strategy will be, how your business will operate, and so much more.
To help you get started, we’ve covered the key elements of how to write a bakery business plan in a section-by-section format. We’ll explain everything from how to describe your bakery offerings and menu items, to tips on how to make financial projections to attract potential investors. Follow along by downloading our bakery business plan template and customize it to fit your needs.
In this article, we will cover:
- Why you need a bakery business plan
- How to write a bakery business plan
- 7 bakery business plan sample sections
Bring your bakery concept to life with this customizable bakery business plan template.
Why You Need a Bakery Business Plan
There are many benefits to writing a bakery business plan. First, it helps you better evaluate your business ideas and goals through research and documentation. Second, a bakery plan helps you build a structure for identifying next steps to bring your vision to life. You can always refer to your business plan to stay on track to achieve the goals you’ve set out.
Writing a business plan for a bakery will also help you figure out what you need to grow your company. You’ll gain a clear understanding of the equipment, supplies, and capital you will need to make your dreams a reality. By making a strong and well-thought-out plan, you’ll be more likely to secure funding from banks, potential investors, and lenders.
Look at any bakery business plan sample, and you will see how much information can be conveyed to your reader in an easy-to-understand manner. You might be surprised by all the components you overlooked! Now’s the time to think about improving your bakery.
How to Write a Business Plan for a Bakery
Writing a business plan for a bakery is no easy feat. You have to think about all the various aspects of your business – like how often you need to order ingredients, how you will market your business to reach new customers, and the amount of staff you will need to hire. Essentially, you’re putting together a manual for your bakery’s success, and it needs to convince investors and new business partners to support your business.
To help you get started, we put together a free bakery business plan template . Acting as a roadmap, our template provides step-by-step instructions for how to think through all of the key elements of a bakery business – including a market analysis, operations plan, marketing and PR plan, financial analysis and projections, and more. You can use the tips in each section to learn how to write a bakery business plan.
Bakery Business Plan Sample Sections
To help you fill in your own business plan, here we’ll cover what you need to include in each section.
1. Executive Summary
Your executive summary is the most important part of your business plan, even though it’s usually written last. The goal of this section is to give an overview of what will be discussed in your business plan and to entice readers (or investors) to learn more.
You will describe your bakery’s mission statement, proposed concept, your target market, and explain how the uniqueness of your bakery will ensure your success. For example, you can explain any special traits of your team that will help your bakery grow, like exceptional customer service or attention to detail when preparing pastries for guests.
Additionally, you will offer financial highlights of how you plan to use funding from potential investors. Perhaps you will spend money on the design of your bakery, purchasing initial inventory, or covering overhead expenses. You can also include a chart to show how potential funding will help increase your bakery’s revenue over time.
While this section is important, remember to keep it to the point. Aim for around 600 words to entice the reader to keep reading the rest of your business plan. You can also check out a bakery business plan sample for inspiration.
2. Company Overview
Your company overview section presents a summary of your bakery’s history and why you opened it in the first place. For example, you can write about how your bakery is different from your competitors – such as your team’s impressive credentials, or how you’re the only business in your area selling gluten-free and vegan baked goods.
You should also include important details like your bakery’s legal structure, founding team members, location, and milestones to date. Milestones are goals that you met, like opening your first bakery location, launching a website, or hiring your first head baker.
Lastly, mention the type of bakery you plan to run. Your service type will be important as you write your bakery plan, helping define the space and equipment you need, and how you’ll interact with guests. For example, if you run a bakery cafe, you’ll need a sit-down area, as well as a front-of-house and back-of-house area. If you operate a food truck bakery, you’ll need to buy or rent a truck so your bakery will be able to move around.
3. Market Analysis
This section focuses on the customers that you plan to serve. For example, do you plan to bake cakes and pastries for weddings? What about school events, birthday parties, or private events? Maybe you’re a neighborhood bakery that relies on foot traffic from your regular customers?
If you rely on grocery stores, farmer’s markets, or restaurants to sell your baked goods, you can mention that too. Supplying products like breads, biscottis, brownies, bagels, or other baked pastries to restaurants will also help you grow your customer base faster.
After you’ve defined your target market, you can go into more detail by describing your customer personas:
- Is your target market working professionals or students?
- Are they thrifty or willing to spend on a specialty drink?
- Does the quality of ingredients matter to them?
- What about the customer service they receive?
Once you’ve outlined your target market’s unique requirements, make sure you write how you will meet each of their needs.
4. Business Offerings and Menu
The Business Offerings and Menu section focuses on what type of baked goods you will offer customers. Whether you offer fresh bread, cookies, or cakes, discuss every detail about what you plan to sell. Make sure to provide an explanation for why you sell these products, and how your delicious goods will drive foot traffic to your bakery.
Remember to always write in layman’s terms so even if someone is unfamiliar with your bakery, they can still get excited about your products. To do so, avoid industry jargon, buzzwords, or technical knowledge that might not be common knowledge to investors.
Here are a few questions you can answer when writing out your business offerings:
- Will you be reinventing recipes, or creating brand new products?
- Will you include specialty items like nut-free or custom-made products?
- Where will you source and buy your ingredients and equipment from?
- How do your baked goods compare to others currently on the market?
5. Operations Plan
This section is where you expand on your business goals, including what the management team will look like and what technology you’ll need.
For your team, you should provide details like whether you will be hiring full-time or part-time staff, what their roles will be, and at what hours your bakery will be open. For technology, you can list restaurant equipment that will help you get your job done well every day. For example, you might need mixers for blending batter, a stone deck oven for making bread, and a refrigerator for storing eggs, milk, and other important items.
You can also list operational milestones that you want to achieve over the coming months to ensure your bakery operates successfully. For example, you can mention when you want to finalize your lease agreement, begin construction for a bakery redesign, or mark the date of your bakery’s grand opening.
6. Marketing and PR Plan
You’ll need a solid marketing and PR strategy to enter your target market and attract new customers. In this section, you will explain the steps you plan to take to reach potential guests.
Aside from coming up with a catchy bakery name, there are many ways you can draw in an audience.
Social Media
Social media platforms can be used to develop unique and fun posts about daily bakery specials, or tease the latest products that are “coming soon.”
Asking customers to leave a review and spread the word is an effective way to market your bakery. If your baked goods speak for themselves, you will likely benefit from this marketing strategy.
SEO Marketing
Making sure you’re found on Google is imperative for a bakery. You’ll definitely want people to find your storefront, and not your competitors. By working on a search engine optimization (SEO) strategy, you can be found when people type into Google terms like “local bakery” or “bakery near me.” Keeping your website up-to-date, accessible, and user friendly can also increase engagement.
7. Financial Analysis and Projections
For the last section of your bakery business plan, you will focus on the financial projections for your business. You’ll outline the potential costs for ingredients, equipment, technology, bills, and salaries that will keep your bakery running. For example, costs might include pastry products, like flour, sugar, butter, and cream. They may also include baking materials like cake pans, stand mixers, rolling pins, and measuring cups.
You’ll also include several documents in your financial analysis, such as an income statement, balance sheet, and a cash flow statement. After listing all of the costs of your bakery design, inventory, and other working expenses, you will then project the time it will take to achieve a profit. Remember to keep your numbers realistic, so you can let investors know how you could actually use their support to grow your business.
A bakery business plan is the best way to start or grow your business – it helps finetune your business concept and identify your target market. If you look at any bakery business plan sample, you will see many important sections that help guide a bakery to achieve success.
Once you have finished writing your bakery plan, you can refer back to it on a regular basis to make sure you are keeping up with the goals you set. Remember, that you’ll need to update your document if your market should change. For example, if customers start demanding more gluten-free products, you can update your plan on how your bakery will meet this requirement.
While writing a bakery business plan can feel tedious at times, remember to think of it as a fun and creative project. There are so many ways to open or expand your bakery business! If you need inspiration, use our bakery business plan template that can be customized to meet your specific business needs.
Debra is the Content Marketing Specialist at TouchBistro, where she writes about the latest food and restaurant industry trends. In her spare time, Debra enjoys baking and eating together with family and friends. Her favorite creations include chocolate cake with Italian meringue buttercream, mile-high lemon meringue pie, and fresh naan with tahini sauce.
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How to Write a Bakery Business Plan: Your Recipe for Success
- by Alexandra Sheehan
- Starting Up
- Dec 5, 2021
- 11 minute read
The rise of the gig economy , the COVID-19 pandemic, and advances in technology have all contributed to more people working from home and even pursuing their own home business ideas . Entrepreneurs across the globe continue to find ways to leverage their unique skills to set up an income stream. One of those skills is baking.
If you consider yourself a talented baker with entrepreneurial dreams, a bakery is an excellent food business idea you can do from home or from another brick-and-mortar space. But before you launch into how to start a food business with your baking prowess, it’s important to write a bakery business plan.
Below, we’ll take you through your bakery business plan , section by section, using this business plan guide as a base. Follow along by downloading our business plan template and modifying it to fit your needs.
Table of contents
The importance of your bakery business plan
How to write a bakery business plan, launch your bakery business with shopify.
Not every business starts out with a formal plan, but those that do have an easier road to success. There are a few key benefits to writing a bakery business plan:
It objectively evaluates your business ideas . Researching and documenting your ideas can help you take a step back and see if there’s really an opportunity there.
It builds a blueprint for moving forward. Writing a business plan can identify the next steps you need to execute your idea. You can keep referring back to your business plan to make sure you’re on track for your original vision.
It figures out what you need. Listing exactly what you need to start your bakery business can give you clarity on what you need to do to make it a reality.
It helps you get capital. You won’t be able to secure funding for your business , whether from investors, lenders, banks, or even through crowdfunding , without a business plan for your bakery.
Executive summary
The executive summary section of your bakery business plan is a summary of the document and its contents. Remember, this is meant to highlight what’s to come in your business plan, not serve as a summary of your business idea.
The executive summary should be about a page in length and answer the following questions:
- What is your brand?
- What does your bakery do?
- What does your bakery want to do?
- What is the following text about?
- Why should your audience care?
- What highlights should readers be excited about?
- What do you sell and how is it different from your competitors?
- Who are your customers?
- What is your marketing strategy?
- What is your current and projected financial state?
- How much money do you need to get started?
- Who is involved in the bakery?
Company description
This part of your bakery business plan should drill down further into your business idea. Here, you’ll want to identify your bakery’s business structure — sole proprietorship, limited liability corporation (LLC) , general partnership, etc.—and business model.
You’ll also use this section to talk about the baked goods industry and about your specific niche —things like keto-friendly, gluten-free, cakes; catering; frozen desserts; savory items, etc. Cape Whoopies , for example, sells gourmet whoopie pies made in Maine. Its bakery business plan would make note of that in the company description section.
The company description should also outline your vision and mission statement and your value proposition . Your vision and mission statement encompass what you hope to do with your bakery, and your value proposition sums up why people would want to buy from you. Pastreez shares its mission and vision statements on its About page:
Learn more: The Secret Recipe to Scale a DTC French Bakery
Use this section to talk about your team, including key personnel and their salaries. La Monarca , for example, would identify its two founders as well as any board members or employees.
Finally, list your short- and long-term business goals. Your business goals should be quantifiable and measurable, eliminating objectivity. You’ll also want to put an estimated timeline for your business goals and when you hope to accomplish them.
Market analysis
The market analysis section of your bakery business plan quantifies how big your potential market is and validates there’s enough demand for your business.
You may include the following in your marketing analysis:
- SWOT analysis . Identifies your strengths, weaknesses, opportunities, and threats.
- Competitive analysis . Outlines the competitive landscape and where your bakery fits in.
Management and organization
Here, you’ll talk about the business structure of your bakery and whether you’ve elected to incorporate as a sole proprietorship, limited liability corporation (LLC), corporation, or something else. Keep in mind that you don’t have to use your official incorporated name as your public-facing name forever—you can always file for a DBA (doing business as) or just drop the “Inc.” or “LLC” at the end of your name. Balkan Bites , for example, is technically an LLC called “Balkan Bites LLC.”
Additionally, if you have a management team, you’ll identify them here as well. It helps to visualize the team with an organizational chart to show how roles and responsibilities are structured and contribute to your bakery’s bottom line.
Products and services
Here, you’ll list which products and services you’ll sell through your bakery. You’ll likely sell something like cakes, cookies, chocolates, pies, or even baking kits, and potentially branded merchandise products. You’ll also want to consider other non-bakery items: do you want to sell coffee as well, for example?
Dough Dealer doesn’t actually do any baking, so it doesn’t sell any baked goods. Instead, it sells kits with baking supplies, as well as merchandise, online. You can do the same thing fairly easily with a print-on-demand company .
Customer segmentation
The customer segmentation section of your bakery business plan should talk about the different groups of shoppers you intend to target with your bakery. Include the following information about each of your segments:
- How old they are
- Where they live
- Where they work and what they do
- Education level
- What technology they use
- Their values, beliefs, and opinions
- Common behavior patterns
- How they shop
Here’s what that might look like: Levain serves a few distinct geographic markets in Puerto Rico, including San Juan, Aguadilla, Mayagüez, and Rincón. Each of these regions represents a specific customer segment for the bakery, and they may have different shared characteristics. So Levain adjusts its promotional and marketing strategy according to its audience.
Marketing plan
Your marketing plan is a high level overview of how you plan to promote your bakery. The marketing plan should outline which channels you plan to use for marketing and advertising, as well as any budgets you might have. At a minimum, this section of your bakery business plan should define the following:
- Price : How much your products cost and why.
- Product : What you’re selling and how you differentiate it in the market.
- Promotion : How you’ll get your products in front of your ideal customer.
- Place : Where you’ll sell your products, including online and in person.
SunDays is using email marketing to promote its bakery business and build buzz pre-launch. The brand allows people to subscribe so they can be alerted when the online store launches. This approach is also an excellent tactic for email list-building .
Here are some more resources to help put together the marketing section of your bakery business plan:
- How to Build a Marketing Plan That Actually Works
- 7 Inspiring Marketing Plan Examples (and How You Can Implement Them)
- Driving Growth: 11 Best Marketing Strategies Any Small Business Can Execute
Logistics and operations plan
Your logistics and operations plan outlines exactly how you’ll create and sell products and fulfill orders. Be sure to address each of the following:
- Suppliers . Identify where you’ll purchase the raw ingredients you need to make your baked goods and where they’re produced. Will you purchase anything pre-made or make everything from scratch?
- Production . Outline whether you’ll make, wholesale, or even dropship your products. Write how long it takes to receive raw ingredients and how long it takes to produce your baked goods. You’ll also want to think about a contingency plan: How will you handle a busy season or an unexpected spike in demand?
- Facilities . Where will you and any team members work? Do you plan to have a physical retail space as well as the bakery? If yes, where? Will they coexist or exist in different locations?
- Equipment . List which tools and technology you require to get you up and running. Think things like ovens, mixers, refrigerators, etc., as well as business tools like a POS system or card reader. You’ll even list things like lightbulbs, counters, and anything else you need to purchase to open your bakery.
- Shipping and fulfillment . Will you be handling all the fulfillment tasks in-house or will you use a third-party fulfillment partner? Will you have a space for in-person shopping or pickup?
- Inventory . How much raw ingredients will you keep on hand, and where will it be stored? How much finished product can you keep on hand, and where? How will you ship products to partners if required, and how will you approach inventory management ?
Wildgrain , for example, operates on a subscription-based business model. The brand outlines how it works on its website, and this information would also be suitable for the logistics and operations section of its bakery business plan.
Florets offers a subscription plan as well as in-person pickup at its Auckland-based bakery location or at a weekly farmers market.
The Protein Bakery also has a few methods for fulfillment. Customers can visit its New York City–based retail shop or order online, and other businesses can also purchase its products wholesale.
Learn more: How to Start Natural Protein Baked Goods Business Online on Shopify
Financial plan
The financial plan shows you’ve done your math homework and crunched the numbers to figure out how much money you need to launch, how much you need to operate, and whether you can turn a profit.
The financial plan typically includes the following financial statements :
- Income statement
- Balance sheet
- Cash flow statement
We’ve put together a spreadsheet template that includes everything you need to create the above financial statements, including some sample numbers. Just edit it as needed.
Starting your new venture with a bakery business plan is a surefire way to set yourself up for success from the get go. Your bakery business plan will keep you and your team accountable and aligned with your vision and goals.
When you’re ready to launch, build your website on Shopify. With Shopify, you can seamlessly integrate your retail and ecommerce tech stack to maintain complete control of your growing business.
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Bakery business plan faq, how do i start my own bakery business plan, how much money can you make owning a bakery, what equipment is needed for a bakery.
- Food processor
- Dough proofer
- Dough sheeter
- Bread slicer
- Refrigerator and/or freezer
- Baker’s rack
- Baking pan and dishes
- Bowls, measuring cups, spoons, spatulas, etc.
- Pastry bags
- Work counters
- Dry storage
Is a bakery business profitable?
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Bakery Business Plan
Start your own bakery business plan
Jolly's Java and Bakery
Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.
There is a shortage of coffee spots where customers can get high quality coffee and freshly baked pastries in a higher income market in Washington state.
JJB offers a broad range of coffee and espresso products, all from high quality imported coffee beans. JJB caters to all of its customers by providing each customer coffee and espresso products made to suit the customer, down to the smallest detail.
Because Washington has a cool climate for eight months out of the year, hot coffee products are very much in demand. During the remaining warmer four months of the year, iced coffee products are in significantly high demand, along with a slower but consistent demand for hot coffee products. Much of the day’s activity occurs in the morning hours before ten a.m., with a relatively steady flow for the remainder of the day.
Competition
Competition in the local area is somewhat sparse and does not provide nearly the level of product quality and customer service as JJB. Local customers are looking for a high quality product in a relaxing atmosphere. They desire a unique, classy experience.
JJB is a bakery and coffee shop managed by two partners. These partners represent sales/management and finance/administration areas, respectively. The partners will provide funding from their own savings, which will cover start-up expenses and provide a financial cushion for the first months of operation.
Expectations
JJB anticipates sales as shown below during the three years of the plan. JJB should break even by the fourth month of its operation as it steadily increases its sales. Profits for this time period are expected to be relatively low in the first two years, increasing somewhat in the third. We are projecting investment of $140,000 from the two founders.
Financial Highlights by Year
Financing needed.
Startup requirements:
- Startup expenses of $64K including $3K legal, $20K location premises renovation, $40K expensed equipment, and $1K other. These show up as negative retained earnings in the initial balance because they are incurred before launch.
- Starting cash in the bank of $70K. (in initial balance)
- Other current assets of $12K (in initial balance)
- Long-term assets of $65 (in initial balance)
- $110K initial investment from founders (Shows up in initial balance as Paid-in Capital.)
- $100K 10-year loan from SBA (in initial balance)
- $1K in accounts payable at startup. (in initial balance)
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How to Start a Bakery (with Business Plan)
Whether you dream of opening a donut shop or a boulangerie, starting a bakery allows you to serve niche markets and express culinary creativity without taking on the financial burden of opening a restaurant. You can even start your bakery business from home before investing in a commercial space. While bakeries are comparatively accessible foodservice businesses, they present unique challenges. From writing a bakery business plan to getting funding and filing for permits, we walk you through each step of opening a bakery.
- Choose Your Bakery Style
- Write a Bakery Business Plan
- Get Startup Loans
- Lease a Bakery Location
- Bakery Permits and Licenses
- Order Bakery Equipment
- Design a Bakery Layout
- Hire Bakery Staff
- Advertise Your Bakery
- Host a Bakery Grand Opening
How to Start a Baking Business
Whether you're passionate about creating decoratively frosted cakes or artisan sourdough loaves , you must create an action plan for turning your passion for baking into a business. Discover the steps of opening a bakery below.
1. Choose a Bakery Style
While there are many bakery business models , they all fall under one of two umbrella categories: retail and wholesale. Retail and wholesale bakeries make similar products, but they have different needs and customer bases.
Opening and Operating a Retail Bakery
Retail bakeries are the most common type of bakery; they sell baked goods and loaves of bread directly to customers. Retail bakeries come in many different forms, and they often specialize in a particular type of baked good. They require both front- and back-of-house space.
Types of Retail Bakeries
Discover the most popular retail bakery business models below:
- Bakery Cafe - This type of bakery is a combination of a bakery and cafe, and they typically sell baked goods like bread, pastries, and cookies. They also pair their baked goods with coffee and tea. Bakery cafes typically have a dining space where customers can sit and eat.
- Counter Service - While counter service bakeries have a front-of-house, most do not have a dining space. Instead, they have a counter where guests can order freshly baked goods to take home.
- Bakery Food Trucks - Rather than using a brick-and-mortar store, food truck bakeries sell their products from a mobile truck. Due to the small space, many bakery food trucks do not bake in their truck, instead opting to bake their products ahead of time in a commissary kitchen or home bakery.
- Specialty Bakeries - A specialty bakery typically focuses on one type of baked good, such as wedding cakes, cupcakes, or gluten-free items . This type of bakery can excel because they offer niche products that customers either cannot find elsewhere or that are better than the products offered at less-specialized bakeries.
- Home Bakeries - This type of bakery is becoming more common, especially because you don't need a lot of startup capital or culinary experience to open a home bakery. Home bakeries typically market their products online and then ship them to customers . Many home bakeries are also very niche or offer twists on classic baked goods.
Opening and Operating a Wholesale Bakery
The other main type of bakery is a wholesale bakery. Rather than selling their products directly to customers, wholesale bakeries market their baked goods to businesses like grocery stores, restaurants, delis, and cafes.
Because wholesale bakeries have to meet the demands of commercial customers, they are typically larger than retail bakeries. Wholesale bakeries don't need to have a front-of-house or a desirable, high-traffic location. However, wholesale bakeries must produce high volumes of baked goods. This requires a large space and lots of baking equipment, resulting in higher startup costs.
2. Write a Bakery Business Plan
The first step in opening your new establishment should be to write a bakery business plan . The business plan is an integral part of starting a bakery business because it lays out what type of bakery you want to open, how it's going to be structured, what sort of products you're going to sell, marketing strategies, and financial projections. There are seven main sections to a bakery business plan:
- Executive Summary
- Company Overview and Description
- Market Analysis
- Business Offerings
- Management Plan and Ownership Structure
- Marketing and Advertising Strategy
- Financial Projections
Your business plan serves as the foundation for your business, and a strong plan can help you get funding and make the process of opening a new bakery easy.
3. Obtain Loans and Startup Capital
When starting a bakery, there are many costs that you'll need to consider, such as leasing a commercial space, getting insurance, outfitting your space with equipment, hiring and training staff, stocking your kitchen, and paying for utilities. As a result, you'll need to have a significant amount of money available to cover these costs. Additionally, it may take a few months after opening for your bakery to become profitable, so you'll need cash on hand to cover costs for several months after opening.
If you’re wondering how to open a bakery with no money, you'll need to take out loans . There are three common ways business owners get funding: commercial loans, business lines of credit, and small business loans.
- Traditional Commercial Loan - You can apply for a traditional commercial loan at any major or local bank. This type of loan has lower interest rates and provides access to large amounts of capital. However, it requires you to have a high credit score. You may have to wait for months to access the money.
- Business Line of Credit - A line of credit is similar to a credit card. You get approved to use up to a certain amount, but you're only charged for the amount you use. Additionally, as you pay off the balance, you can access more credit. But, a line of credit doesn't allow you to access as much money as other loan types and requires a higher lending standard.
- Small Business Loan - Created by the Small Business Association, a small business loan is a type of loan that aims to protect small businesses and provide them with startup capital. Small business loans typically have lower interest rates and are available to people with borderline credit. They require collateral and may take longer to be approved than other loan types.
Cost to Open a Bakery
Bakery startup costs range between $10,000 and $50,000. The vast startup cost price range reflects the diverse array of bakeries. How much money you need to start a bakery depends on its location, equipment, staffing requirements, and menu items.
4. Lease a Commercial Bakery Space
Once you've secured funding, you can start looking for a commercial space for your bakery. The type of commercial space you need depends on the type of bakery you're opening. For example, if you're opening a food truck bakery, you'll need to purchase the truck and you may want to look into renting space in a commissary kitchen.
Retail bakeries will want to look for a space in a central location close to their target demographic that also has a front-of-house area. Because wholesale bakeries sell their products to businesses rather than customers, they can be located farther from the city center or populated areas.
Best Place to Open a Bakery
The best place to open a bakery is at an accessible location near your suppliers and your target demographic. Regardless of the type of bakery you're opening, there are universal considerations for where you start your bakery business. Consider the following in your bakery location analysis:
- Demographics
- Accessibility
- Proximity to Suppliers
- Competition
- Size and Space Requirements
- Health Regulations and Zoning
- Safety and Crime Rates
Once you've found a suitable location for your business, you can hire a lawyer to draw up and negotiate a lease with the landlord . To protect yourself from any potential issues when negotiating a lease, be sure to specify the length of the lease, any raises in rent that might be included, who will pay for potential renovations, and any utilities that are covered.
5. Obtain Bakery Licenses and Permits
The foodservice industry is heavily regulated on a federal, state, and local level, and there are some bakery licenses and permits you need to start your baking business. The types of permits you'll need will vary depending on your location, so be sure to check your local laws and regulations to see if there are any specific laws that apply to your new business.
6. Order Bakery Equipment
The equipment that your bakery will need depends on what type of baked goods you will be preparing. For example, you may need specific pastry supplies to create French pastries . While the specific equipment may change depending on the size and type of your bakery, there are several purposes you need to fill:
- Dough Preparation - This includes equipment like commercial mixers, work tables for kneading, dough dividers, dough sheeters, and dough scales. You may also need holding cabinets, proofing cabinets, retarder/proofer combos, and refrigerators to prepare your dough .
- Storage - Storage is important for keeping your kitchen organized. Your bakery will require shelving and storage racks. If you're working with bulky bags of flour and sugar, you should invest in trucks, dollies, and carts to move large bags around your kitchen.
- Baking Equipment - Convection ovens are a great all-purpose piece of bakery equipment because they provide dry heat and bake evenly. If you're preparing a lot of artisan bread, you may want to choose a deck oven to give your products a crispy base. Wholesale bakeries may be looking for high-output ovens, such as roll-in rack ovens or revolving ovens.
- Display and Sales Equipment - Choosing the right display cases for your baked goods can help boost your sales. You can choose self-service or full-service cases, and there are refrigerated and unrefrigerated options, depending on your needs. In addition to your display cases, be sure to also choose stylish boxes and packaging for your baked goods.
- Cleaning and Warewashing Supplies - A 3-compartment sink is the centerpiece of any cleaning station. You must also order hand washing stations for your employees, disposable gloves, cleaning chemicals, sponges, scrubbers, and other essential cleaning items.
Bakery Smallwares
In addition to your large equipment, you must stock your bakery with smallwares, such as mixing bowls, storage boxes, whisks, bread knives, and aprons. We compiled a list of essential bakery equipment to ensure you don't forget anything.
You can download the opening a bakery checklist PDF below:
7. Layout Your Bakery
After securing a location and deciding what equipment is needed to start your new bakery, you can plan your bakery kitchen organization. If your bakery has a front-of-house area, you will need to design a floor plan. Learn how to lay out your bakery kitchen and storefront below.
Commercial Bakery Kitchen Layout
Every bakery kitchen requires four sections: cleaning, storage, food preparation, and meal cooking. Bakery cafes and bakeries with a front-of-house area will also have a service station, where they deliver food to customers. The ideal bakery kitchen layout is determined by the space and the placement of water and gas lines. Organize your bakery kitchen so the four sections flow together and measure your space to make sure you have enough room for your bakery equipment before finalizing your kitchen plan.
You will want to lay out your kitchen based on the logical flow of food through the baking process. This starts with the storage area and then goes to the food preparation and meal cooking sections. Once you’ve prepared your baked goods, you can serve them to your customers, package them for display, or ship them to online customers. Finally, your dirty dishes, pots, and pans will end up at the cleaning station.
Commercial Bakery Storefront Layout
Some bakeries will have a front-of-house area where customers can browse their selection of baked goods. Optimizing your bakery floor plan for ideal product placement and customer comfort prompts purchases.
Bakery Layout
There are four main bakery layouts, each with its own unique benefits.
- Straight Bakery Floor Plan - Your bakery display cases are organized in straight lines to make it easy for customers to browse.
- Angular Bakery Floor Plan - This floor plan uses curved displays to create an upscale presentation.
- Diagonal Bakery Floor Plan - A diagonal floor plan allows customers to flow through your bakery.
- Mixed Bakery Floor Plan - Maximize your space by using a combination of all the bakery floor plans.
8. Hire and Train Bakery Staff
The size of your staff will depend on the scale and style of your bakery. A locally owned and operated bakery with just one location is likely to have a short chain of command. Retail bakeries must hire and train front-of-house staff to take orders and work the cash register. However, most of your bakery staff will work in the back-of-house, preparing your baked goods.
Your bakery should have at least one or two employees that have formal training or bakery experience to oversee the actual baking process. You may also want to hire unskilled workers for washing dishes, mixing ingredients, packaging products, and doing other tasks that don't require previous experience or expertise.
Some bakeries will also need professional pastry chefs and personnel to complete delicate and specialized tasks. For example, bakeries that bake wedding cakes should look for experienced cake decorators. Bakeries that offer artisan breads should consider hiring someone who specializes in bread baking.
9. Market and Advertise Your Bakery
Before you open your bakery to the public, you must conduct some marketing and advertising campaigns to get the word out and create buzz. You can break your bakery marketing strategy into five general steps:
- Conduct market research. The first step in a marketing campaign is to conduct market research and determine your target market. This includes information like the demographics around your bakery, any competitors, and niche markets you can fill. Once you have an idea about who your target market is, you can develop strategies for attracting them.
- Write a market analysis. Your market analysis is a summary of your market research, and it should go in your bakery's business plan. It should include information such as the average income level in your area, discretionary spending among your target market, and your competitor's prices.
- Set goals for your marketing campaign. Create realistic goals for your bakery and its marketing and advertising campaign. For example, set goals for how many followers you want to gain on your social media accounts and how many sales you want to get in a month.
- Determine how you want to advertise your business. There are many ways you can advertise your bakery and each has its benefits. If you're in an urban area, using signs is a great and affordable option. Consider traditional advertising tactics, such as newspaper advertisements and flyers.
- Create a social media presence. Social media marketing is a great way to interact with your customers, create buzz, and advertise your grand opening and other events. Additionally, many people will look for your bakery's website and social media accounts before deciding if they want to visit, so make sure that you have an active online presence.
Many of these tactics apply to retail bakeries, but marketing tactics differ for wholesale bakeries. Wholesale bakeries should focus on competitor analysis and research where local restaurants and grocery stores source their baked goods. Then, they can reach out and try to make a deal.
10. Host a Grand Opening
The final step in opening a bakery is to host your grand opening and welcome customers to your business. A successful grand opening can get your new bakery off to a good start and help generate loyal customers. You should advertise your grand opening to create interest and alert your target audience that your bakery is open for business.
One great way to get customers in your bakery for your grand opening is to offer discounts and specials. For example, you can offer discounts for the first 100 people to visit. Another option is to give customers who order a dozen cupcakes one cupcake for free. You can also offer free samples to encourage customers to make purchases and expose them to more of your products.
Do You Need a Culinary Degree to Open a Bakery?
You don’t have to have a culinary degree or a bachelor’s degree in business to own a bakery. However, having hands-on experience or academic knowledge of both the baking and business management aspects of owning a bakery will help you succeed. Having a formal education may help you attract investors and banks to garner the startup capital you need to open your bakery. Consider getting a certification from the Retail Bakers of America (RBA). The RBA certification verifies your knowledge, skills, and abilities without the hefty time and financial commitment of culinary school.
Starting a bakery presents unique opportunities and challenges from starting a traditional restaurant. Creating a detailed business plan, following it precisely, and keeping your documents organized will help get your business off to a good start. Reference back to our guide to ensure your bakery launch goes smoothly.
Related Resources
Cookie Sheet Size Chart
Baking sheets are versatile cookware tools for everything from broiling meats and roasting vegetables to baking bread and confections. Baking sheet materials differ to accommodate a broad range of oven cooking projects. Whether you operate a bakery, steakhouse, or gastropub, owning baking sheets of various sizes and rim depths is essential to your operation. In this piece, we explain what the various baking sheet sizes are and provide a helpful sheet pan size chart. Shop All Commercial Baking Sheets Jump to our printable sheet pan size chart below . Baking Sheet Sizes There are five industry-standard baking sheet sizes. Full-Size = 18” x 26” 2/3 Size = 16” x 22” 1/2 Size = 13” x 18” 1/4 Size = 9 1/2” x 13” 1/8 Size = 6 1/2" x 9 1/2” A bakin
Deli Cases and Bakery Display Cases Buying Guide
A refrigerated bakery case or deli case can be a great way to increase sales in just about any food service operation, including coffee shops, convenience stores, grocery stores, and restaurants. Deli cases and bakery cases often look very similar from the outside, so how do you know which one is right for you? This guide will go over their types and features so you can choose the best unit for your business.
Types of Donuts
Before you can start a donut shop , you must choose the types of donuts you want to offer. By definition, donuts are small, fried, sweetened dough cakes, typically shaped into a ring or ball. You can classify the many cultural and regional donut varieties within one of 10 distinct types. We’ve created a guide to help you understand each donut category and expose you to the varieties they contain. From international delicacies to standard donut shop fare, feast your eyes on a wide selection of donuts. We've also provided a printable donut infographic below for easy reference. Shop All Donut Shop Equipment Donut or Doughnut? Doughnut is the original spelling used to describe America’s favorite baked good , whereas donut is an abbreviation. Mo
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5+ SAMPLE Bread Bakery Business Plan in PDF
Bread Bakery Business Plan
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Bread Bakery Business and Marketing Plan
Basic Bread Bakery Business Plan
Executive summary, company description, key personnel, product offerings.
- What are your specialties in your bakery? Are they custom-made? How nutritious are they? Are they gluten-free?
- Do you have a new product? Does that product has a patent?
- How unique are the products that you are going to sell in a specific location?
- Are you planning to make new recipes always?
- What will you do if there will be a decline in sales for your one type of bread?
- Where are you going to buy the ingredients that you will use for the bread? What is the equipment that you have to buy?
Market Analysis
- What can be the approach to different demographics? What can be the best age group? How can you match the bread to the income level of people?
- What are the current trends in the bread bakery business? How much money do people usually spend on bread? What can make people not go into a bakery?
- What will I do with my competitors? How can you learn from their success? What are the steps that you need to be their contender in the business?
- What are the codes and regulations that I have to follow? Which of these things will apply to your bakery? How can you comply with these regulations?
- How can you deal with the financials? What will be your pricing structure?
Operational Plan
Financial projections, sales forecasts, step 1: create a plan, step 2: make it legal, step 3: define your brand, step 4: set up your system, share this post on your network, you may also like these articles, diverticulosis diet pdf.
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14+ SAMPLE Cafe or Coffee Shop Marketing Plan in PDF
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This business plan is a tightly constructed, succinct consideration of all factors relevant to launching this bakery. From rent charges to competition and
A bakery business plan is a plan to start and/or grow your bakery. Among other things, it outlines your business concept, identifies your target customers
How to Create a Bakery Business Plan: Guide and Template · 1. Executive Summary · 2. Company Overview · 3. Market Analysis · 4. Business Offerings and Menu · 5.
Executive summary · What is your brand? · What does your bakery do? · What does your bakery want to do? · What is the following text about? · Why
Financing Needed · Startup expenses of $64K including $3K legal, $20K location premises renovation, $40K expensed equipment, and $1K other. · Starting cash in the
Bakery Business Plan Sample Breakdown ; What is your niche? · Who is your target audience? ; Look at the demographics of your area. What's the
Choose Your Bakery Style; Write a Bakery Business Plan; Get Startup Loans; Lease a Bakery Location; Bakery Permits and Licenses; Order Bakery
Bakery Plan Executive Summary. As the first section of your business plan, the executive summary is your prime opportunity to make a great impression with a
A bread making business plan is necessary to a business because you should have a guide on every step that you have to take in your business. Planning matters a
How to Write a Business Plan for a Bakery · Write Your Business Description. Write a description of your bakery. · Include a Marketplace Overview. Write your