America's Love of Baked Goods
Americans love sweet treats, and we've got the data to back it up. Between 2012 and 2015, searches for “baked goods near me” have gone up significantly, meaning that more and more people are looking to indulge in baked goods. If you own a bakery or cafe, the following information will help you find out exactly which products and flavors your customers are searching for, and you can use it as a part of your mobile marketing strategy.
Our Favorite Bakery: The Donut Shop
According to search data, donuts (also known as “doughnuts”) are America’s favorite baked good. We make an average of 110,000 searches per month on Google for “donuts near me,” and that number keeps getting higher. In 2016 we ate 123 million donuts as a nation, and spent nearly $350 million dollars on these fried goodies! That’s 3% more donuts than we ate last year and 11% more than we were willing to spend in 2015. Oklahoma loves donuts so much that Dunkin Donuts is opening 10 new locations in Tulsa alone.
America’s favorite donuts:
1. Apple Fritters
2. Glazed
3. Old Fashioned
4. Cruller
5. Cake
1st Runner Up: Cake and Cupcake Shops
Not surprisingly, “cupcakes near me” gets an impressive 40.5k Google searches per month, while “cake shops near me” gets 12k. In total, Americans have also spent $140 million on cakes in 2016, which equals 100.1 million cakes eaten in the year so far. We tend to consume cakes around special occasions, but we purchase the most cupcakes at Halloween. We definitely have a weakness for these sweet treats!
America’s Favorite Cake Flavors:
1. Pineapple Upside Down
2. Carrot
3. Chocolate
4. Red Velvet
5. German Chocolate
America’s Favorite Cupcake Flavors:
1. Red Velvet
2. Chocolate
3. Vanilla
4. Carrot
5. Strawberry
2nd Runner Up: Pie Shop
Pie makes the perfect ending to any holiday dinner or cookout, so it's no surprise that Americans search Google for “pies near me” an average of 2800 times per month. Despite our love of pumpkin or sweet potato pie after Thanksgiving dinner, we surprisingly purchase the most pies in the month of March. We also spend a whopping $295 million on pies every year, totaling 58 million pies eaten. That’s a lot of fruity, delicious goodness to go around!
America’s Favorite Pies:
1. Sweet Potato
2. Pumpkin
3. Apple
4. Peanut Butter
5. Lemon Meringue
Last, But Not Least: The Humble Cookie
"Cookies near me" may only average 2400 searches per month on Google, but we blame the lack of cookie shops, not a lack of love for these delicious baked goods. However, some shops, like Insomnia Cookies are challenging that status quo. This could be why Washington, DC (where one of these shops is located) has the highest amount of Google search volume for these yummy treats.
America’s Favorite Cookies:
1. Chocolate Chip
2. Peanut Butter
3. No Bake
4. Sugar
5. Oatmeal
Why Do We Buy These Sweet Treats?
It’s clear that we love our baked goods, but what factors influence us to purchase most? We’ve listed the top 4 reasons below:
1. Supporting Local Businesses
50% of us are more likely to buy baked goods if they’re made at a local bakery. This could be because we trust local bakers to deliver a fresh, tasty product every time.
2. Visual Appeal
33% of customers purchase baked goods based on the way they look. Who can resist beautifully frosted cupcakes or cookies that look like they’ll melt in your mouth?
3. Treat Yourself
Almost 30% of us use baked goods as a treat for special events. This makes sense, because what’s Thanksgiving without the pumpkin pie or a birthday without cake?
4. Enticing Aroma
The scent of fresh baked goods motivates 26% of Americans to stop into a nearby bakery and purchase a treat. When something smells as good as fresh brownies or cupcakes, it’s hard to resist.
So, now that you know the most popular baked goods and which flavors we crave most, you can use this data to drive potential customers into your establishment.
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How to Start a Donut Shop
Donut shops specialize in the preparation and sale of donuts. Donuts are considered one of the most popular baked goods in the United States, and donut shops can be found in towns across the country. They've grown to become a staple of many people's morning routines, providing a much-needed pick-me-up to start the day. If you’re looking to start a donut shop, we’ve compiled a list of steps to walk you through the process. Shop All Donut Shop Equipment Click any of the tips below to skip to the donut shop startup information that interests you: Write a Donut Shop Business Plan Investigate Donut Franchises Calculate the Cost of Opening a Donut Shop Obtain Donut Shop Funding Purchase Donut Shop Equipment Create a Donut Shop Menu Advertise Your Donut Shop Hire and Train a Donut Shop Staff Host a Soft Opening Donut Shop FAQ 1. Write a Donut Shop Business Plan A business plan provides a clear and structured roadmap for how to start your donut shop. It outlines your goals, strategies, and financial projections, helping you stay on track and make informed decisions. One of the key purposes of a business plan is to present your concept to potential investors. Whether you seek funding from a bank, a private investor, or even friends and family, a well-crafted business plan can make a difference when securing capital. In addition to providing a foundation for your business and attracting investors, a business plan serves as a valuable tool for you as the owner. It helps you stay focused on your goals and objectives and provides a framework for making informed decisions as you navigate the challenges of starting and running a donut shop. To learn more about this topic, read our guide on how to write a bakery business plan. 2. Investigate Donut Franchises Franchises are regionally or nationally recognized brands that operate in many locations, allowing independent investors, known as franchisees, to purchase the rights to use the franchise name, products, and business model. The main advantage of investing in a donut shop franchise is brand recognition. Established franchises have already built a solid reputation and a loyal customer base, which can give your new business a head start. Franchisees also benefit from the support and guidance provided by the franchisor, which can be valuable if you’re new to the foodservice industry. It's important to note that investing in a donut shop franchise comes with financial obligations. In exchange for the franchise rights, franchisees are required to pay a monthly or annual franchise fee. This fee covers the use of the franchise name, products, and business model. Additionally, franchisees are responsible for other expenses, such as marketing fees and royalty payments based on sales. We’ve listed some of the most popular donut shop franchises below: Krispy Kreme franchise cost: Krispy Kreme franchisees must have liquid capital of $300,000 and pay a franchise fee of $12,500 to $25,000. The average investment needed to start a Krispy Kreme shop ranges from $275,000 to $1,900,000. Dunkin' franchise cost: A Dunkin' franchisee must have a minimum net worth of $500,000 and pay a franchise fee of $40,000 to $90,000. On average, the total investment to start a Dunkin' franchise can range from $500,000 to $1,800,000. Duck Donuts franchise cost: A prospective Duck Donuts franchisee must have a minimum liquid capital of $200,000 and pay a franchise fee of $40,000. The average total cost to start a Duck Donuts ranges from $400,000 to $600,000. Tim Hortons franchise cost: A Tim Hortons franchisee must present a minimum liquid capital of $60,000 and pay a franchise fee of $25,000 to $50,000. The total investment needed to start a Tim Hortons ranges from $300,000 to $1,400,000. 3. Calculate the Cost of Opening a Donut Shop The average cost to start a donut shop falls between $40,000 and $90,000. It’s important to note that this figure can vary depending on several factors, including your business concept and where you want to open your shop. To budget accordingly, you should build an understanding of these costs and how they can affect you. We’ve compiled a list of donut shop startup expenses below to help inform your decisions: Acquiring a commercial space: Buying a donut shop can cost between $80,000 and $300,000 while leasing a commercial space can cost an average of $5,000 per month depending on your lease agreement. Equipment costs: The average cost of donut shop equipment ranges from $15,000 to $30,000. Permits and licenses: Depending on your location, you may need to apply for permits and licenses including a sales license, zoning permit, and food handler’s license, along with completing a health inspection. Each permit may be associated with application or renewal fees. 4. Obtain Donut Shop Funding While some prospective owners may have the necessary funds readily available, many people will need to secure loans or find investors to make their dream of owning a donut shop a reality. Remember to highlight your unique offerings and demonstrate a solid business plan to increase your chances of obtaining the necessary funding. Continue reading to learn about the different financing options available to you. Traditional bank loan: Traditional bank loans involve taking out a set amount of money and paying it back over a fixed period. Business line of credit: A business line of credit functions similarly to a credit card. You'll be provided with a set line of credit that can be used for a wide range of purchases and interest on the money you spend. Small business loan: Small business loans are loans available through the U.S. Small Business Administration to help entrepreneurs establish and grow their businesses. Crowdfunding: Finding funding through sites like GoFundMe can be an effective tool for new business owners. Supporters can donate money towards your cause and help you quickly and efficiently get the funding. Equipment cost: Equipment loans can be useful for getting quick money to repair or upgrade the equipment in your donut shop. Business credit card: Business credit cards allow you to make purchases for your business. They are effective for paying off smaller expenses and shouldn't be used in place of a larger loan. 5. Purchase Donut Shop Equipment Donut shops require specialized equipment to function efficiently and produce high-quality donuts consistently. The type of equipment you purchase and the quantity you'll need depends on your projected output and the available space in your kitchen. We'll walk you through the equipment you'll need below. Kitchen Equipment Purchase the following appliances to complete your donut shop kitchen: Convection ovens: Ideal for baking large amounts of donuts and other treats. Donut glazers and finishing tables: Provide a surface for glazing and decorating your signature donuts. Donut depositors: Allows you to distribute the perfect amount of dough for your donuts. Dough mixers: Perfect for preparing dough in the kitchen. Dough scales: Allows you to verify your dough is portioned correctly. Donut baskets and screen racks: Ideal for cooling donuts and other baked goods. Front of House Equipment and Supplies The equipment and supplies listed below allow you to design a functional front-of-house area: POS equipment: Allows you to conduct transactions. Display cases: Perfect for highlighting your signature donuts. Menu boards: Ideal for displaying your menu or specials. Bakery boxes: Allows customers to take multiple donuts on the go. Paper cups: Ideal for serving coffee, tea, and other beverages. Lids: Ensures that guests do not spill their beverages on the go. Coffee stirrers: Allows guests to prepare coffee as they see fit. 6. Create a Donut Shop Menu Your menu is the centerpiece of your donut shop, and in many cases, it's the first thing customers see when they walk in. Choosing what to offer on your menu can be difficult, and it's crucial to get it right. Keep the layout of your menu in mind and highlight customer favorites or limited-time promotions. When it comes to pricing your menu, be strategic. Consider the cost of ingredients, preparation time, and overhead expenses, and offer a range of price points so that customers with different budgets can find something they enjoy. Offer a variety of treats: Include donuts, donut holes, and other baked goods on your menu. This gives your customers access to a wide range of selections and ensures they will find something they enjoy. Highlight seasonal items: Consider adding themed items to your menu throughout the year to boost sales. For example, you could offer pumpkin spice donuts during the fall or holiday-themed donuts during the winter season. Don't forget drinks: Expand your menu to offer coffee, tea, or smoothies, complementing your donut selection and giving guests more variety to choose from. 7. Advertise Your Donut Shop Advertising is crucial for creating awareness and generating excitement for your donut shop. Marketing costs can vary depending on your business type, goals, and the marketing strategies you choose. As a small business owner, it's essential to allocate a portion of your budget towards advertising to ensure your donut shop gets the attention it deserves. On average, donut shops spend 5-8% of their revenue on advertising. While this may vary based on individual circumstances, it provides a general guideline for budgeting purposes. Keep in mind that the more you invest in advertising, the greater the potential return on investment. To help identify the strategy that works best for you, we've listed some donut shop marketing methods below: Traditional marketing: Traditional methods, such as print media and radio advertisements, can be effective with local audiences. Place ads in local newspapers or magazines highlighting your unique offerings. Radio commercials can be a great way to reach commuters and capture their attention during their daily commute. Social media marketing: Platforms like Facebook and Instagram are excellent tools for reaching a wide audience at a minimal cost. Create engaging posts showcasing your delicious donuts, behind-the-scenes footage of your shop's preparation, and sneak peeks of your menu. Word of mouth: Encourage your friends, family, and loyal customers to spread the word about your donut shop. Offer them incentives, such as discounts or freebies, for referring new customers. 8. Hire and Train a Donut Shop Staff Your employees are the backbone of your business, and having the right team in place can make all the difference in how efficiently your shop operates. When it comes to hiring, it's not just about finding people with the necessary skills. It's about finding individuals who fit into your company culture and can contribute to a positive workplace environment. A strong company culture not only attracts customers but also helps to retain employees, reducing turnover and ensuring continuity in your operations. As an employer, your responsibility doesn't end with hiring employees. It's equally important to invest time and resources into training them properly. This ensures that they have the knowledge and skills to perform their duties effectively and consistently. Below, we've created a list of tips to guide you through the hiring process. Write clear position listings: Clearly defining the job positions and their requirements will help you attract candidates who best fit your needs. Recruit effectively: Depending on the location of your donut shop, you may need to actively recruit and advertise your job openings to reach potential employees. Online job boards, social media, and local networking can help you cast a wider net and find the right talent. Conduct interviews and background checks: Asking behavioral-based questions and checking references can provide valuable insights into a candidate's work ethic, problem-solving abilities, and compatibility with your team. 9. Host a Soft Opening A soft opening is a limited, invite-only unveiling of your donut shop. It's an opportunity for you and your staff to have a dry run before the grand opening, and it can also generate positive word of mouth for your business. During the event, consider offering a limited menu or highlighting your signature donuts. This way, you can focus on perfecting a smaller selection of items, ensuring they are prepared to the highest standard. The limited, invite-only nature of a soft opening also creates a sense of exclusivity and anticipation among your guests and allows you to receive valuable feedback. Their opinions and suggestions can help you identify areas for improvement and make necessary adjustments before opening to the public. Donut Shop FAQ We've answered some of the most common questions about starting a donut shop below. How Much Does it Cost to Open a Donut Shop? The cost of starting an independent donut shop ranges from $50,000 to $150,000, but this number can fluctuate based on a variety of factors. The location you choose, the amount of equipment you need to purchase, and potential renovations to your shop can all impact your initial investment. How Much Profit Does a Donut Shop Make? A small donut shop situated in a highly trafficked area can rake in up to $150,000 in profit annually. It's important to note that donut shop sales can fluctuate seasonally. January and February often see low profits as customers kick off the new year with resolutions to eat healthier. As summer approaches, donut shop owners can expect an upward trend in sales, with a sharp increase coming in the fall. Back to Top Starting a donut shop requires careful planning, a solid business strategy, and a large amount of hard work. Donut shops come with significant financial and operational obligations, but when executed correctly they can be very successful. By adhering to the information above, you can position yourself and your donut shop for success in a competitive industry.
Batter vs Dough
Batter and dough are to a commercial kitchen what liquor and seltzer are to a cocktail lounge—essential. Whether you operate a bakery, pizzeria, or Japanese restaurant, you use a variety of batters and doughs each day. While you may know you should whisk batter and proof dough, you may not understand exactly what dough and batter are or how they’re unique. We’ll explain the differences between batters and doughs, what dough and batter are, and break down the main dough and batter categories. Use the links below to skip ahead learn more about batters and doughs: What Makes Doughs and Batters Unique? Batter Definition Dough Definition Leavening Explained Laminated Dough Definition Difference Between Batter and Dough The difference between batter and dough is batters are thin and contain eggs, and doughs are thick and don't have to contain eggs. Because of their different consistencies and ingredients, you will mix and prepare batters and doughs differently. We break down all the differences between batters and doughs below. Batter vs Dough: Egg Content Batters must have eggs. Doughs don’t have to contain eggs. Batter vs Dough: Mixing Doughs are dense enough for working (kneading/rolling). You combine batter ingredients by whisking them. Batter vs Dough: Working With Each You can shape doughs into pastries, pasta, and pie crust. You pour or use a spoon to drop batters onto griddles and baking dishes. You can also use batters as a pre-fry coating. What Is Batter? A batter is a thin blend of flour, egg, and liquid that you cannot knead. Derived from the French word battre, meaning ‘to beat’, you make batters by beating/whisking their ingredients together. Culinary professionals break batters into three categories: drop batter, pour batter, and coating batter based on how they use them. Drop Batter Drop batters can be dropped from a spoon without running. A drop batter is normally made from a two-parts flour to one-part liquid ratio. Drop Batter Examples: Muffins Cakes Drop Biscuits Cake Doughnuts Hush Puppies Dumplings If you want to start a donut shop, you must create both batters and doughs to craft yeasted and cake doughnuts, respectively. Pour Batter Pour batters have a fluid consistency and are pourable. Unlike a drop batter, pour batters run when dropped from a spoon. Typically, pour batters have a one-to-one liquid-to-flour ratio. Pour Batter Examples: Pancakes Waffles Crepes Funnel Cakes Coating Batter A coating batter is a wet food coating used to prepare items for shallow frying, deep-frying, or flat top grill quick cooking. At their most basic, coating batters are a mixture of liquid and flour/meal, but chefs often add eggs and seasonings to increase their coating batter’s flavor. From English beer-battered cod and Southern cornmeal battered catfish to Japanese tempura vegetables and all-American onion rings, battering is a popular food preparation method in a variety of settings. Coating Batter Examples: Beer Batter Tempura Batter Cornmeal Batter Plain Batter What Is Dough? At its most basic, dough is a mixture of flour/meal and a liquid. You can use any type of flour or meal to make dough. The most common liquids for dough making are milk and water. Doughs have pliable consistencies, perfect for rolling and kneading. While dough should always hold a form, you can make a soft or stiff dough by adjusting your fluid to flour/meal ratio. Discover the ratios for soft and stiff doughs below. Stiff Dough 1 Cup of Liquid to 4 Cups of Flour/Meal Stiff dough should feel compact but remain easy to knead and roll on a lightly floured surface. Stiff Dough Examples: Scones Pizza Crusts Cookies Soft Dough 1 Cup of Liquid to 3 Cups of Flour/Meal While they still hold forms, soft doughs are pliable and easy to handle. Soft Dough Examples: Rolls Biscuits Yeasted Doughnuts Back to Top Unleavened vs Leavened There are many types of dough, but we can broadly categorize them as either a leavened or an unleavened dough. Leavened Definition The term leavened describes baked goods made with a leavening (raising) agent. There are both natural and chemical leavening agents. Fermented yeasts and sourdough starters are natural leavening agents that provide rich flavors but are time- and labor-intensive. Baking soda and baking powder are common chemical leavening agents. We call breads leavened with chemical leavening agents “quick breads” because they require less time and labor than raising dough with a natural leavening agent. Unleavened Definition Unleavened describes baked goods that don’t use a leavening (raising) agent. Subsequently, unleavened doughs will not rise when baked. Doughs that don’t require a leavening agent include tortillas, pasta, crackers, and flatbreads. Perhaps the broadest category of unleavened sweet dough is short dough. In baking, the word “short” or “shortening” is used to describe fat content, so short doughs are doughs that have more fat than flour. The desired short dough consistency is dense and soft, so they’re usually unleavened (unraised). However, not all high-fat doughs are short doughs. Buttery but yeasted brioche doughs are not considered short doughs, and high-fat laminated doughs aren't classified as short dough either. What Is Laminated Dough? Laminated dough has thin alternating layers of butter and dough. Lamination is the process of rolling and folding layers of butter and dough together, developing the flour's gluten. It requires skilled hands because the alternating layers of dough and fat must be very thin. Unlike dense short doughs, which have large quantities of butter mixed into their dough, laminated doughs are airy. Laminated dough’s alternating layers of butter and dough trap evaporating steam during the baking process, causing the layers to rise. Baked laminated doughs have hundreds of flaky layers. While laminated doughs don’t require a leavening agent to rise, you can create a chewy texture in your laminated baked goods by adding a leavening agent to your laminated dough. Discover the top three laminated doughs below: 1. Croissant Dough laminated flour yeast milk salt sugar 2. Danish Pastry Dough laminated flour water salt yeast eggs 3. Puff Pastry Dough laminated flour water salt How to Make Laminated Dough: Follow these basic steps to make laminated dough: Roll your dough into the shape of a large rectangle. Apply a layer of butter. Fold your dough onto itself, encasing the butter layer inside your dough. *You should now have a three-layered rectangle with a butter layer sandwiched between two layers of dough. Roll out your three-layered rectangle and fold it into thirds. Repeat the last step twice more. Form your laminated dough into pastries Non-Laminated Dough Non-laminated doughs have fat creamed or rubbed into their flour rather than layered on top of it. You will not fold a nonlaminated dough on top of itself, and it won’t be flaky. There are both leavened and unleavened non-laminated doughs. Common non-laminated doughs include pie crust doughs, Choux pastry doughs, and short doughs. Popular uses for choux pastry dough are churros, eclairs, beignets, and cream puffs, and pastry chefs typically use short dough to make shortbread biscuits and cookies as well as tarts, quiches, and pies. Back to Top Batters and doughs share the same heritage of flour and liquid, but they diverge in their egg content and consistencies. We categorize batters by how we use them. In contrast, we categorize doughs by their use of yeast and other leavening agents. Understanding the differences between batters and doughs will help you achieve the right consistency and apply the correct preparation method for each.
How to Start a Bakery
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. Shop All Bakery Supplies Jump to a specific 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. Back to Top 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. Back to Top 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. Back to Top 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. Back to Top 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. Back to Top 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: Download Baker Smallwares Checklist PDF Back to Top 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. Back to Top 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. Back to Top 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. Back to Top 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. Back to Top 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. <aside class="pquote"> <blockquote> The information provided on this website does not, and is not intended to, constitute legal advice. Please refer to our Content Policy for more details. </blockquote> </aside>