Want to start your own bakery? Well, every aspiring bakery does. Unfortunately, turning your dream into a reality isn’t all that easy (there is a reason most bakeries and cafes fail within the first years)
But don’t those facts freak out just yet. We’ll ensure you do not make the mistakes those bakeries made and to help you with that, here is an ultimate guide on how to start a bakery in 2020.
From the initial cost, finding the right location to the type of bakery you can own, we’ll cover it all below.
The Ultimate Guide to Starting a Bakery in 2020
1) What are the expected costs?
Once you decide on the bakery name and have the process for registration underway, I am sure the expenses are next on your mind so let’s break it down for you.
- Capital requirements for the start-up phase (e.g. for conversion measures, targeted advertising) and to secure your livelihood
- Possible consultancy and bureaucratic costs in the start-up phase
- Capital for the purchase and procurement of goods, expert opinions, and certificates
- Current operating costs such as shop rent, storage costs, electricity, and heating costs, IT
- Taxes and various insurances
In total, this can come to anywhere between 10 lacs to 15 lacs depending on the type of bakery you want to start.
2) What Type of Bakery Should you Open?
Self-service bakeries are often linked to a franchise where you have no influence on the products. In general, bakery shops or self-service bakeries are “to-go” bakeries, i.e. they do not offer seating, which makes it essential that all products can be easily transported. Dripping rolls or cakes covered with cream are rather unsuitable for this.
The Classic Bakery
In a traditional bakery, where you make the products yourself from scratch, you can decide for yourself what your product range will look like. You can be as conventional or unusual as you like and thus meet even the most specific customer tastes.
Once you have defined your niche, you should already have some special products in mind that are tailored to your target group. If your bakery also wants to offer seating where people can sit and enjoy a cup of coffee with their sandwich, it might also be a good idea to offer cakes or even gateaux. A confectioner in your company can help you with this.
Bakery with a pastry shop
If you want to offer more than one or two sweet pastries, a pastry chef may be of great help. The confectioner can make cakes, cupcakes, pastries, etc.which you can also sell in your bakery. Especially if you also offer seating in your bakery, a piece of cake with your coffee will be wonderful.
If you are for a franchisee business note that you will have to pay an entry fee which is about Rs. 40,000 to Rs. 50,000 plus royalty fees. The amounts will vary as per the terms and conditions of the parent company so make sure you read and vet everything before making a big decision.
Also Read: How to Get More Customers to Your Bakery
Run a bakery as a franchise
As a bakery, you also have the possibility of franchising. As a franchisee, you open your own branch on the basis of an existing parent company, whereby you are supported by the franchisor during and especially after the establishment.
In doing so, you will benefit from the knowledge of an already established group and enjoy many other advantages, e.g. it will be easier for you to acquire outside capital, as you will be starting with an already tested concept.
3) How do I find the perfect location for my bakery?
The most important thing about setting up or franchising a bakery is the location. This often determines your success. It is therefore of utmost importance that you carry out a location analysis to find the perfect place for your bakery. In this way, you can assess the competitive situation in advance and avoid mistakes.
Depending on whom you want to address with your bakery, you should analyze what the infrastructure in the immediate vicinity looks like, e.g. in terms of walk-in customers or public transport connections.
You should also be aware of whether there is a demand for your service at this location and how high the purchasing power of the potential customers at this location should be estimated.
4) Do I need personnel for my bakery?
You should definitely hire personnel for your bakery, as it is impossible for you to serve and bake the customers and run the business on your own. Several bakery assistants can be a great help in sales.
5) Target Group and Niche
If you want to start your own business with a bakery, you must first think about which niche you want to occupy. The organic market is booming at the moment, maybe you will enter the market with high-quality organic products?
In addition, the “gluten-free” trend, if you like to call it that: more and more bakeries are turning to gluten-free products for people with gluten intolerance.
More tips and (business) ideas to help you start-up your business:
- Point out the ingredients and ingredients in detail. More and more people want to know what’s in their bread.
- Use new recipes: new spices or exotic herbs can make your baked goods even more attractive
- Offer a breakfast courier, who delivers the fresh rolls to your doorstep
- Half price of unsold goods in the evening
- Offer sandwiches for vegetarians and vegans
- Convince with quality – bakery shops only bake, you bake yourself
- Freerolls for school children as a special offer
6) Advertising and Marketing
Depending on your budget, you have a wide variety of options – whether it’s low-cost social media appearances or advertising in local newspapers. Flyers are also perfect for advertising your bakery. Ask also in surrounding hotels if they want to offer your baked goods for breakfast. The bread roll bags themselves are also suitable for advertising:
If your bakery relies on traditional craftsmanship, for example, you can give the bakery owners a wink: With funny slogans such as “Against the mass bread roll attitude” or similar, you can bring your company and your craft, where you still do everything yourself, to the fore.
As a franchisee, you also have the option of using the franchisor’s marketing pool; you benefit from their advertising and only need to invest money in advertising or marketing if you want to draw attention to your branch through location-specific advertising.
The top bakery course in Delhi, Truffle Nation offers you detailed marketing lessons if you enroll for the diploma or certification course which is a huge plus for any beginner looking to learn baking.
Here’s what the experts have to say