How to Open a Bakery Store
Opening a bakery will be hard work, but it is also fun. With equal enthusiasm and elbow grease, you can start a business where customers line up around the block waiting for a chance to try your delicious food. This guide on how to start a bakery will help you understand how to start a business.
1. Choose the bakery format
You can choose a variety of bakery formats. There are even some options without the indirect start-up costs of expensive store locations. These are some bakery formats worth considering, but feel free to be creative.
Counter style
This format is the most typical and recognizable format for bakeries, and it has its advantages. If you just provide a counter for customers to order, the space required in front of the bakery is very small. (Of course, you still need space behind your kitchen.) Usually, there is no dining space, which allows this type of bakery to maintain a streamlined and efficient operation. But this format does limit your options for serving food and keeping customers on-site, and they may order more food and drinks over time.
Bakery and cafe hybrid
This option provides ample seating for customers, and if you want to expand the baked goods, this can provide you with the space you need for your meal. Even if you don’t, if you want to encourage customers to stay for a while, you can still add seats. You may also want to add coffee or tea to the menu. In addition, if you provide a comfortable seat and free Wi-Fi, you are likely to succeed in the working crowd.
Food truck
Starting a food truck is a cost-effective place to open a bakery that can help you reach a variety of customers. Bring your baked goods and park your food truck at street fairs, offices, and special events. Usually, you will not have space to bake on the truck. But you can easily load the baked goods you make in your home or commercial kitchen space on the truck.
Home bakery
Not ready to rent space or buy industrial-scale equipment? Keep it simple and choose to open a bakery at home. You will need less start-up capital, and you can easily sell your products online, at the local farmer’s market, or provide catering services. You can even make deals with local coffee shops or cafes and sell your products in their locations by offering them a share of profits.
2. Find the right location
The next step in learning how to start a bakery is to narrow the search for suitable business locations. If you want to open a physical store, finding a commercial real estate agent who specializes in buying or renting commercial space can make your search easier. Try to find someone who primarily assists the tenant and not the landlord with the rental process.
You need to make sure that your agent has many years of experience in the community of your choice-so that they will know what a reasonable price and the best location is. They can even help you find a restaurant lease with some necessary baking equipment (such as a large refrigerator or oven). Make sure that the space you rent has enough space to store equipment and additional baking supplies.
If you are more interested in food truck routes, you don’t need a real estate agent to help you. There are dedicated car dealers that sell food trucks and trucks that can be converted into food trucks online and in person.
To get a better deal, you may need to search for used food trucks on sites such as Craigslist. Or you can ask local food truck owners, they may want to sell their trucks or know who other owners are.
3. Obtain appropriate licenses and permits
Each state has different regulations, so you must consult your local government to find out what business licenses and permits are needed to open a bakery in your area.
Even your city or county may require specific business licenses and permits. You should check the government websites of your state, county, and city to make sure you have all the documents you need. Your needs will vary based on the type of bakery you open, but you may encounter the following licenses and permits when opening a bakery:
Sales privilege license
If you are opening a retail store, you may need a sales privilege license. This type of license is necessary to sell your goods in retail form. This allows your company to collect sales tax in your state at the same time as the cost of your goods.
Food operator license
Any business that handles food needs a food handler license or food and safety certificate. You need to prove that you have proper knowledge about food handling and storage. The owner will need this permit, and any employee who assists you in cooking baked goods will also need this permit.
Catering license
If you choose to engage in a catering-style bakery business, then you may need a catering or food supplier license. This usually applies when you prepare and deliver food yourself, but not when you prepare food in a customer’s kitchen.
Kitchen hygiene and safety inspection
Any kitchen space needs to pass health and safety inspections to obtain proper certification. If you want to learn how to start a bakery at home, studying these rules is especially important.
Zoning laws and permits
If you run a bakery outside of your living space, you need to check the local zoning laws to see if you can run your business outside of your home. In this case, other licenses may be required. For example, if someone comes to your house to fetch food, you may need to obtain a permit.
Homeowners Association Rules
If you want to open a bakery at home, you need to check the rules and regulations of the Homeowners Association to make sure that it is allowed to run a business outside your home. This is usually an issue that affects people living in townhouses or apartments.
4. Brand your bakery
Due to some reliable commercial brands, there is no reason why your bakery cannot cause a sensation. Here are the areas where you can start planning your bakery brand:
Name.
coloring scheme.
social media.
Package.
product name.
Deco.
Ask yourself, what story do you want your brand to tell? Then use the story to guide each of your brand decisions. Your story should be unique.
You want a name and logo that are instantly recognizable. The same goes for your decoration and packaging.
Establishing a social media page for your bakery is also essential to promote your new business while building a brand.
5. Obtain baking equipment
To turn your bakery into a legal and profitable business, you need commercial-grade bakery equipment to help you produce all these baked goods, and your tools will not be damaged in the process.
What equipment do I need to open a bakery? You may need to obtain:
oven.
Baking pan.
Decoration tools.
mixer.
Pan rack.
refrigerator.
Take the cabinet.
Worksheet.
6. Price your products
When you are trying to price your food, it is important to remember that the price is determined by your expenses, operating costs, taxes, and the market. Therefore, to calculate the price of baked goods, you first need to calculate the monthly business operating costs. This will help you calculate how much money you need to make to cover the total cost of running your business.
Then, you must divide production costs and indirect costs into operating costs. The production cost considers everything needed to produce baked goods, such as raw materials and equipment. Are indirect costs a direct cost? Think about advertising, accounting, labor, etc.
Once you have determined the break-even point and the production cost of each baked good, you can come up with pricing. For example, suppose you own a cupcake business and the cost of running a bakery is $2,000 per month. You plan to sell 250 cupcakes per month.
7. Set the atmosphere
The final step in learning how to start a bakery is to customize your space. If you choose to go to a storefront or cafe-style bakery, it’s time to enhance the atmosphere.
When it comes to atmosphere, there are some tips that can help you create a successful bakery. For example, put the most eye-catching baked goods (such as those exquisite frosting cakes) on the display stand at eye level. Less exciting staples such as bread may take up some space on the lower level of the display or behind the counter.
When creating an atmosphere, creating a good first impression is the key. Just like a well-designed restaurant has a first-class entrance area, find a way to let the tempting smell of freshly baked biscuits drift into the entrance of the bakery.
Similarly, you can invest in luxurious sofas, comfortable decorations, and oversized coffee cups. Make sure your customers feel at home. As an owner, know your customers. It is important to train all your employees to be equally friendly. Of course, one or two free samples will never hurt.
