bakery business plan

Bakery business plan may be a good idea for a small business engaging up to ten people. Runumber recommends: amount of investments – $15k, payback period – 1.5 years, profitability – 53%.

Overview of Bakery Business

In the United States, the demand for bakery products has been declining rapidly since the mid-2000s. An overweight of the Americans is the main reason. Bakers do incredible things to regain the popularity of the bread products. They write on the packaging information about the healthy ingredients, emphasize the lack of yeast, experiment with the reduced size of the buns and even bake ‘cloud bread’, i.e. the one that contains no flour and only eggs, soda and cream cheese. Nowever, all these marketing methods do not work and the bakery market remains at a despondent stage.

In Europe, on the contrary, small bakeries will never disappear. It’s impossible to imagine a Frenchman’s morning without a croissant or brioche, or that of Italian without ciabata. The tradition of getting fresh bread every morning is the foundation of the Old World. At the same time, unlike the Americans, who take care of the body, but suffer from obesity, most Europeans are slim and good looking even after 60 years of age.

Peculiarities of Baking Business

There are bakeries that work on a basis of a full or incomplete cycle. Full cycle bakeries perform all the processes that take place in a classic bakery, while incomplete cycle bakeries purchase semi-finished products that are being baked afterwards. In terms of profitability, the first method is more profitable, but it requires renting much larger premises and buying a lot of equipment.

The second option is less profitable, but the production process can take place in a small room with the use of an oven and trays for the finished products. In this case, the businessman has to rely on the honesty of the manufacturer of semi-finished product.

Equipment for Bakery

If we talk about a mini-bakery business plan with the investments of up to $15,000, then the amount of $5,500-$7,000 should be included in the business plan to buy a good oven and a kneading unit. Further, everything is done by means of human hands. However, you can’t bake more than 200 kg of products per day.

To equip the mini-bakery, you have to purchase the following items:

  1. sifter for flour;
  2. dough mixing machine;
  3. dough sheeter;
  4. table for processing dough;
  5. bread machine;
  6. trolley for the finished products (several pieces);
  7. refrigeration unit;
  8. knives, basins, forms.

The total cost of equipment is $15,000.

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Peculiarities of Advertising Bakery

It is necessary to create an informative facade to attract customers at the early stages of developing the bakery business plan. Don’t forget about a vivid signboard and come up with a ‘tasty’ name that would stimulate appetite. Always add the word ‘bakery’.

To attract more customers, use a remote signboard located nearby (15 to 20 meters) with the professional photos of products. Try to place it where many people pass. Modern methods of advertising bakery recommend to use aerosols with tasty odors that are sprayed in a trade area.

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