How To Start A Bakery And Pastry Business




The Ultimate Bakery And Pastry Plans For Business!



Would you like to start a business? Then why not start a Bakery And Pastry business? Perhaps the idea of using your baking skills to earn an income has always appealed to you. The time has come to learn more about the possibility to start your own Bakery And Pastry business.

Baking for profit is an ideal business and some benefits will be highlighted. You may ask why Baking? Some reasons are provided and you may have your own opinion that you may want to share with us.

Starting own bakery And Pastry business is something that any bakers or patissiers can dream of.People with no experience or skill in making bread or pastry also interested to get involved because of its prospects.Food related business always give steady income and good return not to mention how fast this business can grow.This is based on fact that 61% of American eat breakfast everyday and 32% of them eat out or purchased it at least once a week.This business alone generate $18 billion sales a year in United States.By 2012 the U.S bread and roll market is forecast to have a value of $14.2 billion.How about other region and continent?Well for develop country mostly in South East Asia,bread and pastry considered as alternative for rice because of its mobility and fast serving.Office workers need something simple for lunch to save time especially woman who consider bread to replace rice for Dietery purpose.

There are important steps to take before you can start your own bakery And Pastry.First you need to decide on what type of bakery And Pastry business you want to run.Home bakery And Pastry business sound simple and easy to manage how ever you need to consider the pros and contra.Running a production in the middle of residential area would be nice for marketing but it can be disaster for your neighbors.Loud sound from your machinery can caused head ache to your neighbors.You can choose to be bread and pastry supplier.You can save cost on shop assistant and display room.Prepare a proper kitchen for production and supply your bread to other bakery or cafe.This type of bakery does not need much advertising exposure because you just need to reach cafe manager or restaurant owner to have a sales.After deciding the type of bakery you desire,its time to write your business plan.Every business no mater how small or big need a proper business plan to be successful.With this business plan,you can keep track on your business development and progress.You need to write a business plan that contain description of your product,your targeted customer,budget,management and staff,your company objective and mission.

The hard part on starting a business is financing.How do you plan to finance your bakery?If you have a proper business plan,you definitely know how much you need as starting cost.This includes the cost of machinery,proper display room,advertising and rent.There are also monthly cost such as utility bills,rent and salary.You need to estimate your business cost per day and calculate for at least 12 month running cost.When you have the exact numbers,now you can start thinking about how to obtain such money.You can use your own money,make business loan or you can find a benefactor that willing to invest in your business.Proper business plan will attract investor and soften the bank management to release a loan for you.After taking care of financing,its time to find a suitable location for your bakery.As mention before,home based bakery is really good for marketing because it location in residential area.People usually need bread and pastry for breakfast and for evening meal.Strategic location will ensure the flow of income and growth.Things you need to consider for good location is high traffic and residential area.But make sure your bakery located not too close to competitor because it will effect your sales.

After acquire a suitable location,you need to determine the type of licence and certificate you need to run a bakery.You can go to your local authority to make sure of this. Basically you will need licence for business and premises from local authority,product and food safety certificate from health department,and if you are in Islamic country such as Lebanon,you will need Halal certificate for Muslims consumer.After your bakery been approved,now its time to go shopping.In your business plan,you should already know which type of machinery or tools you need for your bakery.This is very important thing to remember.You do not want to waste money on machine that you will never use.As you know,these kind of machinery is very expensive and need a suitable personal to handle it.You will need to determine which kind of mixer you need for production,dough divider,suitable oven,chiller,freezer for frozen goods and cooling rack that you can use for displaying your product.Having a good display room always leave a good impression and returned customer.Sufficient machinery and appliance will ensure stability in production and fulfilment orders.

The Ultimate Basic Bakery And Pastry Operation



Investment in staff proved very useful asset for future expansion.Hiring a good and hardworking staff will increase productivity and produce a quality product.Based on the size of your operation,you should determine how many workers you need.For examples you need a baker to make bread,this includes mixing and shaping,oven man to baked and shop assistant to take care of the display room.This is all depends on your size of operation.However,make sure you have sufficient staff to prevent unnecessary problems.Lastly,advertising will play important role in your bakery business.Having a good set up of bakery does not help you to get sales.You have to make sure people know about your bakery.You can try advertise in local newspaper,radio station and television.Using a creative and interesting flayer also works on high traffic location.Offer a free gift for your customer and do not forget to slip your business card so that they will return again to your bakery hopefully to buy something not just the free gift!

Everybody loves bread.It is simple and easy to eat even while you are walking on the street or on the the way to your office.Loves eating it does not mean that you know how to make it.We usually get our Bagel and pastry at bakery or supermarket and it is already baked and ready to eat.But do you know how the bakers made it and what is the basic bakery operation took place?

Bakery operation can be divided into four main section.This section including mixing,shaping,dressing and baking.There are certain tools and machinery needed although there are sometime it just need experience and skill obtained by long years in this fields.Different with other type of food and beverage business,bakery business need more than one staff that work in production kitchen to be more efficient.

Mixing is the most important section in bakery operation.This section will determine how long your production will run each day including washing and cleaning process.The one who responsible in mixing dough for bread,topping and cake mixed need to be accurate,consistent,discipline with high level of concentration to avoid mistake and waste.Not to mention using a lot of energy. Just imagine if someone who work with 20kg to 25kg of sweet dough each session,need to transfer the dough from the mixer to the kneed table to cut and weighted before dividing it to smaller pieces.These tiring process will easily make people forget and made a mistake on following the right recipe.

Transforming a dough into an interesting Cakedesign will require skill and experience.The knowledge in culinary art will help greatly in this artistic process.Imagine a baker with a skillful hand can make more than 30 bread design each day and he need to made it all in a hurry to avoid the earlier made dough get proofed.However,for much easier bread design that does not require additional tools except for roller,a staff with good training can make sure it done.For beginner or rookie baker,task like shaping tart dough or preparing the mold for baking is most likely the best choice.

Dressing a proofed bread does not need much skill or effort.What they need is good memories and faster hand.The one who up for this task need to memorize each shape and names of the bread that are ready to dress with specific ingredients,topping and quantity.For examples,if production order require Tuna bread,so he need to make sure what shape or bread design that use with tuna flakes.This goes for every type of bread that need to be baked.If daily production require more than 30 different Cake design and shape,there is nothing more than good memory needed.

The last and finishing section is nothing more than baking.The one who responsible for this task usually known as oven man.Good knowledge and high concentration needed while handling an oven to ovoid over baked or much worst disaster.Every type of bread have a different setting of temperature and time needed to get the best result.Oven man need to concentrate on his job because handling this dangerous machinery can be much trickier when it involves electric or gas.Some small mistakes can lead to profit loss and not to mention life at stakes.

The Ultimate Bakery And Pastry Style!



very different with other food and beverage business.However,a traditional way of getting sales and easy marketing begin to get very challenging these day.People now are very aware about the right choice of dietary and learn to appreciate bakery product as they are not hesitate to spend more on the product that win their confidence.

Consumer these day will not only choose the cleanest and friendly customer bakery but also take a factor like bread design,healthy ingredient,bakery concept with exciting shopping experience and of course store with clean and hygienic environment.Bread boutique is the latest concept in bakery business and providing consumer with all the additional factor that can increase the bakery revenue and sales.

Like any other kind of boutique,bread boutique usually set up at a shopping mall or in the area with high dense commercial building.These boutique offers a new concept of bread making and interesting set up of display room with unique bread design,creative and innovative.The store design will let the customer to see through the glass and see what happening in the kitchen and experience themselves how the bread being prepared.

The hygienic and clean environment in the kitchen will definitely increase the consumer trust and strengthen the boutique credibility as a reliable food handler and marketer.The unique styles of baking and crafting with creative and interesting product design and applying the latest concept for their product such as naming their bread using themes like movie,cartoon,character or celebrity names.

These new concept of bakery business will definitely attract more customer especially kids and teenager as they will easily get hooked with something interesting to them.And of course these new style and trend will resulted a revolution in securing the customer interest and increase their awareness of healthy food and ingredients.Bread boutique will become an essential style and trend in future bakery business.

Considerations Before Starting Your Bakery



Before opening a bakery there are several important decisions to make. First, determine how you want to start (many bakeries often start in-house and grow from there).

The benefit to this is; of course, low overhead in the form of rent and major supplies. However, drawbacks include space and capabilities as well as city or town laws banning the sale of food products out of a residential home.

For example, in the state of Texas it is unlawful to make any foods for distribution unless it is completely closed off from the living and sleeping areas. (http://www.dshs.state.tx.us/foods/faq.shtm)

Also, consider the style of bakery. Pastry or cake bakeries that only make desserts can thrive next to bakeries that provide breads to restaurants. Common types of bakeries include pastry bakeries, bread, roll and bagel bakeries, large commercial bakeries like Roman Meal®, franchised bakeries like San Francisco Bread Co. ® and Panera Bread Co®, gluten free bakeries and even dog treat bakeries. These bakeries serve different roles and require different amounts of startup money

PART I – Setting-Up Your Bakery



Where to start is often the most difficult decision of all. What is recommended is a plan of progressive steps, first of all to enable you to decide if there is demand for the type of business you propose to operate, and secondly and most importantly, if the business is a viable proposition. Only then can the final stage be put into action – getting the business started.

To assist potential business operators, a suggested operational plan is presented below. This
plan of course has its limitations in that is may not cover every eventuality but the basic steps
remain the same.

The basic steps are as follows:

a) Identify potential customers
b) Select potential site or premises
c) Determine type of business
d) Product range
e) Equipment
f) Staff requirement
g) Finalise above
h) Commence operation

For many operators some assistance or advice will be necessary.In particular, advice on product range, equipment requirements, recipes, costings and bakehouse layout is freely available. Demonstrations, fault findings and follow up are really necessary.

STARTING UP YOUR BUSINESS

1. Identify sufficient potential customers – foot traffic, car traffic, wholesale

2. Locate a suitable site or premises

i) Sufficient foot traffic
ii) Convenient car parking
iii) Sufficient bakehouse space
iv) Sufficient storage space
v) Retail or wholesale despatch space
vi) Health or building costs

3. Lease or building costs

4. Permits, Certificates and Consents

i) Contact your local council

5. Determine the type of business required to satisfy customers

i) Hot Bread Shop
ii) Home Cookery
iii) Lunch Bar
iv) Cake Shop – decorated cakes
Coffee Bar – bakery
Combinations of any of the above

6. Set up of product range

I)Hot Bread
ii) Yeast goods – buns, rolls, doughnuts
iii) Sponge lines
iv) Sheets
v) Madeira Cakes
vi) Various lines – muffins, scones etc

7. Product costings and sales prices

8. Define necessary equipment required to produce the desired product range

9. Equipment prices

10. Staff

Staff Requirement
Production Staff
Finishing Staff
Sales Staff
Labour Costs

11. Will the business be viable?

12. Bake house layout

13. Finalise lease or building purchase.Arrange equipment purchase,Building alterations, shop fittings, oven hood, work benches,purchase sundry equipment,appoint staff,purchase of ingredients.

14. Trials bakes

15. Opening

16. Review of operation at regular intervals:

Introduction of new products
Change of product range
Update of costings and prices
Change of working or opening hours
Change of type of business

PART II – BAKERY EQUIPMENT



The equipment required can be decided as soon as the product range is settled. The minimum and maximum output is also required although these figures do not have to be fully accurate at this stage.

A rule of thumb estimate is as follows:

TURNOVER OVEN CAPACITY

(5½ day – 6 day week, single 8-10 hour shift)

Up to $5,000 6 trays
$5,000 - $7,500 9 trays
$7,500 - $10,000 12 trays
$10,000 - $12,500 15 trays
$12,500 - $15,000 18 trays
Over $15,000 21 trays

The maximum output is then used to set the size of the oven necessary for the production.Once the oven capacity is set the capacity of the remainder of the equipment is established to enable the oven to be kept full. Generally the prover capacity should be twice the oven capacity and the mixing, dividing and moulding equipment capacities should be sufficient to keep the oven full.

Plant capacity should not be excessive as the larger the plant the greater the expense. Extra capacity can always be purchased later if production is greater than originally calculated.Following this introduction on equipment there is a list of equipment suppliers.

Sundry or miscellaneous equipment is also required and once again we offer our expert assistance to help you decide the equipment required for your own operation. A list of all possible sundry equipment including packaging materials is included for your information and assistance.

Although starting a Bakery business does not necessarily require you to purchase thousands of dollars of equipment,Ingredients,and supplies, there are some baking items you'll need in addition to the Pastry ingredients.

Tasks And Skills Needed To Run A Bakery:



Business Specific Tasks:

Here's a list of tasks that need to be attended to when it comes to the running a bakery:

Inventory Management
Bookkeeping/Recordkeeping
People Skills: Employees, Customers, Vendors, etc.
Scheduling
Advertising/Marketing/PR
Sales/Invoicing
Website maintenance and marketing
Money management

Bakery Specific Tasks:

Planning the Menu
Ordering Ingredients (flour, eggs, yeast, etc)
Prep Work (Mixing ingredients, raising bread, oven prep etc.)
Baking and Cooling
Glazing/Decorating
Display Baked Goods
Clean Up of Tables, Counters, and Display Cases (if part of business model)
Clean Up of Equipment and Work Areas
Deliveries (if part of business model)

Approximate Hours Needed To Run A Bakery

General hours of Operation: This will vary due to the style of the bakery. Bakeries that serve breakfast style pastries and coffee may open as early as 6 am and may close as early as noon while franchise bakeries like Panera Bread® may be open from 6 am to 9 pm.

Hours Needed to Prepare - Recipes that require that the bread rise will need to be started several hours before the first customer enters. After the doors close the equipment and workstations must be cleaned which may take several more hours. Prep work and close up work could be +/- 6 hours depending on recipes. On the other hand, large-scale bakeries may operate 24 hours a day.

Employees Needed To Run A Bakery:

Initially a bakery can be run by an individual and then grow.
Here's a list of people you may need to hire:

Bakers
Servers
Delivery People
Cleanup Personnel
Shift Supervisor

Bakery Licenses:

Call your local Courthouse/Department of Revenue to find out which agency in your state is in charge of bakery licenses. In California, for instance, bakery licenses are regulated by the Department of Alcoholic Beverages. Though the regulating office differs from state to state, the application process is largely the same.

You will need a business license, Federal Employee Identification Number (EIN), insurance and possibly incorporation paperwork such as an LLC.

You will also need a food handler's permit for both you and your employees.

Approximate Minimum Start up Cost:

Bare essential: - It is recommended that you have three months' worth of operating costs set back before you open your bakery. According to the New Yorker Magazine, a small pastry shop in the Lower East Side of New York City called Baby Cakes has a monthly operating cost of just over $11,600 USD.

However, location and wages, can vary largely. Entrepreneur Magazine estimates that an average bakery startup will cost between $10,000 and $50,000 (depending on the scale of your business.)

Necessary Equipment Necessary to Operate A Bakery:

Necessary Start-Up Equipment:

Ovens and Mixers
Cooling racks
Tables (for food prep and seating)
Proofing Racks/Storage (for flour to rise)
Cookware (pots, pans, bowls, etc.)
Chemical detergents and sanitizers
Dishwasher
Packaging Materials for delivery or service

Supplementary Equipment: - Equipment that you can acquire to once your business is off and running:

Delivery vehicle with signage
Ovens, microwaves, warming trays and plates
Refrigeration unit(s), some portable
Dough ‘Sheeter' for rolling out dough
Glazers and ‘Icers'

Monthly Expenses For A Bakery:

Ingredients (flour, eggs, sugar, yeast, etc.)
Utilities (electric, gas, water)
Vehicle expenses
Business insurance
Advertising
Wages
Rent
Maintenance
Possible regular inspections by a health lab

Special Requirements For Bakeries:

HACCP and excellent Sanitary Practices
Regular checks will be conducted by health officials
Food temperature monitoring at all times
Conformance to all applicable food service laws

Bakery Business Pros And Cons:

The Pros of Owning a Bakery Business:

Huge market- depending on your location
Great potential for expansion
You can opt for both, wholesale and retail
You can develop your own specialty product
Field can be very stable
Total control of manufacturing

The Cons of Owning a Bakery Business:
Prep work requires an early start
Long days or shift work may be required
Work can be 7 days a week and 365 days a year
Bakers work on a tight schedule with a strict quota
Inventory may have to be thrown out or donated if business is slow
Bakery must follow strict government rules

Type of Customers You Need to Attract For Your Bakery:

The types of customers will vary depending on the style of bakery you open. Pastry and cakes bakeries tend to attract special occasion, breakfast, and dessert customers. Small bread bakeries may attract restaurants and small groceries. While larger businesses may only wholesale to large grocery chains like Acme or Wal-Mart.

Bakery Business Statistics:

According to the American Institute of Baking (AIB) the sales of baked goods were over $38 billion USD worldwide in 2008.

These sales continue to grow. For example, cookie and wholesale baked goods increased nearly $80 million USD between 2003 and 2004 alone.

Bakery Revenue:

Revenue can depend on several factors including: location, cost of supplies, and style of baking. Baby Cakes bakery, in New York city sells vegan based cupcakes at 50% profit per cupcake. However, due to the high cost of rent and supplies (organic and vegan) they survive with the help of investors right now.

Bakery Business Resources:

Industry-Specific Websites:

Baking Business.com

Modern-Baking

Courses & Books:

How To Start A Bakery Home Study Course

International School of Baking Consulting Services

Equipment and Supplies :

Bakery Directory From Business.com

Bakery Supplies Suppliers, Distributors & Manufacturers

Associations:

Allied Trades of the Baking Industry

American Bakers Association

American Institute of Baking

Independent Bakers Association

Other:

Main Problem For Small And Medium Bakery Business

Bakery Business Plan

Related Businesses:

Dog-Bakery business (believe it or not, this is a popular off-shoot)

Catering
Party-Planning
Wedding Cakes and party favors, boxes, etc.

Artisan Bread

Pastry And Bakery Business Cards

Save Money on Low-Cost Business Cards You Design Yourself



Business cards may not be the most important part of your Bakery And Pastry business, but you do want to have them. You can find affordable business cards that you can design yourself online and be finished in under an hour.

It's a good idea to customize your business cards with a unique graphic or logo that defines your business.

Include as much contact information as you can, including your website and email address, so that customers can more easily contact you and get information on your business. If you have space on the business card, include a short phrase or summary describing the benefits that you offer to your customer.

www.Vistaprint.com has lots of different designs that you can view online and customize for free.


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