business plan bakery cafe

Bakery Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Bakery Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Bakery Business Plan

You’ve come to the right place to create your bakery’s business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their bakeries.

A bakery business plan is a plan to start and/or grow your bakery. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan, and details your financial projections.

How To Write a Bakery Business Plan & Sample

The following information will provide a description of what to include in your bakery business plan along with links to an example for that section:

• Executive Summary – The Executive Summary section provides a high-level overview of your plan. It should include your company’s mission statement, as well as information on the products or services you offer, your target market, and your business goals and objectives.
• Company Overview – The Company Overview section provides an in-depth look at your company, including information on your company’s history, ownership structure, bakery location, and management team.
• Industry Analysis – Also called the Market Analysis, in this section, you will provide an overview of the industry in which your bakery will operate. You will discuss trends affecting the industry, as well as your target market’s needs and buying habits.
• Customer Analysis – In this section, you will describe your target market and explain how you intend to reach them. You will also provide information on your customers’ needs and buying habits.
• Competitive Analysis – This section will provide an overview of your competition, including their strengths and weaknesses. It will also discuss your competitive advantage and how you intend to differentiate your bakery from the competition.
• Marketing Plan – In the Marketing Plan section, you will detail your marketing strategy, including your advertising and promotion plans. You will also discuss your pricing strategy and how you intend to position your bakery in the market.
• Operations Plan – In the Operations Plan, you will provide an overview of your store’s operations, including your store layout, staff, and inventory management. It also includes information on your warehousing and distribution arrangements and a list of long-term milestones or business goals.
• Management Team – In this section, you will provide information on yourself as the talented baker, your team, your experience, and your roles in the company.
• Financial Plan – In this section of your bakery financial plan, you will include your financial statements: income statement, balance sheet, and cash flow statement. It also includes information on how much funding you require and the use of these funds.

Next Section: Executive Summary >

Bakery Business Plan FAQs

How can i complete my bakery business plan quickly & easily.

Learn more about writing a successful plan by using this bakery business plan template .

Where Can I Download a Bakery Business Plan Template?

Get a downloadable bakery business plan template here . 

What Are the Main Types of Bakeries?

A bakery can be retail or wholesale. A retail bakery sells baked goods directly to customers, while a wholesale bakery typically sells products to other businesses, like restaurants, grocery stores, specialty shops, and cafes.

How Do You Get Funding for Your Bakery?

Bakeries are most commonly funded with personal savings and bank loans. Credit card financing and angel investors are also popular forms of funding for bakeries.

Learn More:  Seeking Funding from Angel Investors vs Venture Capitalists

What Are the Main Sources of Revenues and Expenses for a Bakery?

The primary source of revenue for bakeries is its baked good sales. This includes deliveries and online orders. Sometimes bakeries also earn from bulk orders from wholesalers or special occasions.

The key expenses for bakeries are rent, wages and salaries, ingredients and packaging.

What are the Steps To Open a Bakery Business?

Opening a bakery business can be an exciting endeavor. Having a clear roadmap of the steps to open a business will help you stay focused on your goals and get started faster.

1. Develop A Bakery Business Plan - The first step in opening a business is to create a detailed bakery business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your bakery business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your bakery business is in compliance with local laws.

3. Register Your Bakery Business - Once you have chosen a legal structure, the next step is to register your bakery business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to open your bakery business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Bakery Equipment & Supplies - In order to start your bakery business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your bakery business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful bakery business:

• How to Open a Bakery Business

Where Can I Get a Bakery Business Plan PDF?

You can download our free bakery business plan template PDF here . This is a sample bakery business plan template you can use in PDF format.

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Bakery Business Plan: How to write it [Complete Guide]

• January 3, 2023
• Food & Beverage

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your bakery, you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in the business plan for your bakery. Use this template to create a complete, clear and solid business plan that get you funded.

1. Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.

If the information you provide here is not concise, informative, and scannable, potential lenders and investors will lose interest.

Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire plan.

Why do you need a business plan for a bakery?

The purpose of a business plan is to secure funding through one of the following channels:

• Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
• Obtain private investments from investment funds, angel investors, etc.
• Obtain a public or a private grant

How to write your bakery’s executive summary?

Provide a precise and high-level summary of every section that you have included in your bakery business plan. The information and the data you include in this segment should grab the attention of potential investors and lenders immediately. Ensure that the executive summary doesn’t exceed 2 pages in total.

The executive summary usually consists of the five major sub-sections that include:

• Business Overview : give a brief introduction to your bakery and quickly describe your brand, its offerings, the pricing list of products and what sets you apart from your competitors
• Market Overview : the market analysis segment will contain an overview of the expected bakery market size and growth in your area, as well as an analysis of your competitors and target audience
• Management & People : introduce your bakery’s management and employee structure. Provide a brief (no more than a couple of sentences each) of the knowledge and experience of the team. Also, speak here about your hiring plans and the reporting lines
• Financial Plan : how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? Include here a chart depicting your key financials such as revenue, gross profits, and net profit
• Funding Ask : what loan/investment/grant are you seeking? How much do you need? How long will this last?

Bakery Financial Model

Download an expert-built 5-year Excel financial model for your business plan

2. Bakery Business Overview

In this section of your bakery business plan, you will provide an overview (slightly more detailed) of your business. If there is something unique about your baked products, mention that in this segment.

Some of the most important questions that you must try to answer in this section include:

• Why are you opening a bakery?
• Where will your bakery be located and why did you choose that location?
• What type of baked products will you sell (low-calorie, vegan, gluten-free, etc.)?
• Why do you want to offer those product lines?
• How will you price your food offerings?
• Will your operating hours be the same as your competitors?
• Who is your target audience?
• What will be the legal structure of your company?

Let’s look at different subsections that you must include:

a) History of the Project

Any business must have two components:

• Passion & experience of the business owner
• Rationale behind the business

Passion & Experience

It is not necessary to have any prior experience with a bakery. As long as you are passionate about it and you know your market, you are good to go. 

However, if you have any experience, make sure that you are mentioning that. For example, you may have been a head pastry chef and a creative cake decorator in a popular bakery for 6 years and now you want to launch your own bakery.

No matter what, ensure that you demonstrate not just passion but also some industry knowledge that you must garner through thorough research.

Every business has a rationale behind its existence. What’s yours? Are you going to solve some problems that exist in the current bakery business scene? 

For instance, the target market may have a very high percentage of pastry-loving obese people. You may be the first one to introduce low-calorie pastries, cakes, and other baked items. 

Similarly, if the area has a high vegan density, you may want to introduce a line of vegan products that no other bakery in the area is offering.

You must also ensure that the market is conducive for the business to exist. For instance, if you are a master cake maker who makes ultra-realistic cakes that cost a lot and try to sell them in a low-income neighborhood, your cakes will probably not sell.

Therefore, it is important to understand the market before starting a business to prevent extreme losses, and eventually closure.

b) Business Model

This is where you will talk about the business model and the type of bakery you want to open. Some points that you need to briefly describe here are:

• Will you buy a new bakery, or will you buy an old one and remodel it?
• Will you open a specialty bakery, a counter service bakery, or some other bakery type?
• What equipment, technologies, inventory, and tools will you need to operate your bakery?
• Where will you source your ingredients from?

There are various types of bakeries that you consider:

• Bakery Café : It is a sit-down bakery. It is a retail bakery with a dedicated dining area. There will be front-of-house and back-of-house spaces and people will often order food and other drinks apart from your baked items like muffins, cupcakes, cookies, etc. People can also order tea, coffee, sandwiches, etc.
• Counter Service Bakery : These bakeries do not have any dining area. People will order food and take them away. You can sell other food items like drinks, burgers, sandwiches, etc. apart from your usual baked goods.
• Specialty Bakery : These bakeries focus on a very specific set of products. For example, wedding cakes, gluten-free baked products, etc.
• Retail or Wholesale Bakery : The difference between a retail and a wholesale bakery is that in the retail model, you will sell to your direct customers (B2C). In the wholesale model, you will be selling to other businesses like cafes, restaurants, specialty shops, etc.

Irrespective of the type of bakery you want to open, make sure that there is adequate demand for the products you want to sell. For instance, if you are trying to sell a vegan line of baked products to customers who want non-veg-based baked products, you will not succeed. There must be enough vegans in your target market.

c) Products & Services

In this sub-section of your bakery business plan, you will provide a list of your products and services . For instance, if you intend to open a specialty bakery such as wedding cakes, you must provide a menu listing all that you have to offer.

Similarly, if you want to sell bread, cookies, and pastries only, make sure that your sample menu lists them. If there are too many items that you intend to sell, make sure that the sample menu you are providing includes the major attractions. You don’t need to list all the items.

d) Pricing Strategy

This is where you will explain your pricing strategy . Of course, your prices can vary significantly from your competitors. However, if there is a significant price variation, you must explain such differences.

For instance, you may be selling custom-designed birthday and wedding cakes instead of generic designs. That may be the reason for higher costs. Similarly, the quality of the ingredients you use for baking can also account for the price differences.

Irrespective of the case, include a pricing chart for your menu items. No need to include the price of every product or product bundle you intend to sell. Instead of listing the price for every product individually, you can just provide a pricing range.

For example, you can do something like this:

• Multi-decker cakes with custom fondant-crafted figurines: $350 to $1,000
• Gluten-free cookies: $3 to $6

Offering a pricing chart is important because your pricing strategy will also allow investors to tie your pricing strategy with your financial projections later on.

e) Legal Structure

Finally, your business overview section should specify what type of business structure you want. Is this a corporation or a partnership (LLC)? Who are the investors? How much equity percentage do they own? Is there a Board of Directors? If so, whom? Do they have experience in the industry?

3. Bakery Market Overview

A complete understanding of the market where you want to operate is important for the success of your business.

For example, there may be a large number of cafes in the area with regular and high demand for baked goods like pastries and cookies. Thus, opening a wholesale bakery to serve the B2B demand instead may make sense here.

Therefore, you must cover here 3 important areas in the market overview or market analysis section of the business plan of your bakery:

• Market trends : how big is the bakery industry in your area? What is its growth rate (or decline rate) and what are the factors contributing to its growth or decline?
• Competition overview : how many competitors are there? How do they compare vs. your business? How can you differentiate yourself from them?
• Customer analysis : who is your target audience? What type of bakery setup do they prefer? How frequently do they buy baked goods? What is their average spending at bakeries? 

a) Bakery Industry Status Quo

How big is the bakery industry in the us.

According to the American Bakers Association, the US bakery market represents $154 billion and employs over 800,000 people..! The commercial segment is by far the largest (91% industry size) vs. retail bakeries that only represent 9% of the total US bakery market.

In terms of products, here is the breakdown of the most common bakery products as a percentage of total bakery sales in the US:

How big is the bakery industry in your area?

Once you grab the exact data for the US market and add it to your business plan, you can then divert your attention to the area where you want to operate. It might not be possible to find region or area-specific studies, and hence, you must estimate the size. For more information, read our article on how to estimate TAM, SAM and SOM for your startup.

Let’s now see how to estimate the market size of the bakery industry size for your business plan . We know that:

• The total US market size for retail bakeries is $15 billion (10% of the total $154 billion)
• The total number of retail bakeries is around 23,000

Therefore, the average annual revenue for each retail bakery is around $650,000 (that’s an average of $1,800 in sales per day).

So, if there are 20 already bakeries in the area where you will operate, we can reasonably assume the market size of the bakery industry in your area is around $13 million.

How fast is the bakery industry growing in the area?

Now, you must show the expected growth rate of the bakery industry in your area. This information may not be available via online research papers. However, assessing the growth rate will not be difficult.

You can approach each bakery separately and ask for their year of establishment. You will get a clear picture of the overall growth rate.

For instance, if there were 18 bakeries in 2018 and 20 bakeries in 2022, the average annual growth rate is 5.1%.

b) Bakery Competition Overview

Studying your competitors’ business models is vital. You need to understand what makes them successful or why they fail. A clear understanding of their bakery product offerings, marketing strategies, etc., will allow you to provide a better service.

If your competitors are offering nearly the same products & services, then what is their market share and how do they market their products & services to attract new customers?

It is always a good idea to do some research (if necessary, physically visit your competitors without revealing your business intentions) and create a comparative table summarizing their product & service offerings, marketing strategies, target audience, etc.

Here is a sample table that you can use:

The competition analysis table you will add to your bakery business plan will depend on what information you need and want to include based on your business model.

Bakery SWOT Analysis

Try to provide a SWOT analysis . It must be crisp and highly focused. SWOT stands for Strength, Weakness, Opportunities, and Threats.

Here is a sample that you can use as a reference:

• Strengths : Baking & Pastry Arts degree from Culinary Institute of America; 6 years of cake and pastry baking & decoration experience in a renowned bakery chain
• Weaknesses : Startup cost, zero reputation
• Opportunities : Increasing demand for healthy baked food because of increasing health consciousness in the target market
• Threats : Big brands like Dewey’s Bakery, Insomnia Cookies, Bare Snacks, etc., are flooding the market

A clear understanding of your strengths and weakness along with opportunities and threats in the real market can help you to design your marketing strategy . It also helps potential investors to assess the risk and reward profile of your business.

c) Bakery Customer Analysis

This is the sub-section where you will provide a detailed analysis of your target audience. Some important points that you must include in your customer analysis include:

• Age and gender distribution (you can get local demographic data from census.gov )
• Per capita expenditure on baked food items
• Frequency of bakery visits
• Average monthly income and disposable income
• Average bill size per visit
• Type of bakery preferred
• The expected price range for baked items
• Preference for healthy snacks and willingness to pay for high-quality products
• Any seasonal preferences they have

You can add as many data points as required to validate your business decision. The idea here is to display your deep understanding of the target audience and their needs, preferences, and expectations. This knowledge can help you to tailor your products & services to attract new customers.

4. Sales & Marketing

This is the segment where you outline your customer acquisition strategy. Try to answer the following questions:

• What is your USP ?
• What are the different marketing strategies you will use?
• How do you intend to track the success of your marketing strategy?
• What is your CAC or customer acquisition cost?
• What is your marketing budget?
• What introductory promos and offers do you intend to provide for attracting new customers?

Let’s expand a bit on a few questions below:

What marketing channels do bakeries use?

A few marketing channels that bakeries typically use are:

• Online listing & reviews (e.g. Google Business)
• Bakery directory listing
• Signage and billboards
• Print media (newspapers, etc.)
• Loyalty programs
• Coupons & gift cards
• Social media interactions and social media ads

It is not necessary to use all channels. You can start by focusing on a few of them. You can include other marketing strategies later.

Also, you must have a fair and nearly accurate estimate of your marketing budget. Failure to display a well-planned and adequate cash flow for advertising and marketing can lead to investors losing confidence. That’s because investors are fully aware that if adequate funds are not allocated for marketing, the business will be derailed before becoming a success.

What is your unique selling proposition (USP)?

In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors.

A few examples of USPs are:

• Low Calorie : Craving for sweets while burning fat? We have the perfect pastries!
• Vegan : Dairy-free vegan cheesecakes that melt in your mouth
• Doorstep delivery : We will reach your door to satiate your cravings

Your USP will depend on your business model, competitor analysis , and target audience. Whatever your USP be, it should appeal to your potential customers and attract them. Plus, The USP you offer should be convincing enough for investors and lenders.

5. Management & People

You must address two things here:

• The management team and their experience/track record
• The organizational structure: different team members and who reports to whom?

a) Management

Small businesses often fail because of managerial weaknesses. Thus, having a strong management team is vital. Highlight the experience and education of senior managers that you intend to hire to oversee your bakery business.

Describe their duties, responsibilities, and roles. Also, highlight their previous experience and explain how they succeeded in their previous roles.

It is also important that you explain how their experiences and qualifications help you in implementing the bakery you are proposing. If they have specialized training, and experience (such as a degree in baking and pastry arts degree, 6 years of baking experience in a renowned bakery chain, etc.), add that information.

b) Organization Structure

Even if you haven’t already hired production bakers, pastry chefs, kitchen helpers, marketing & accounts personnel, etc., you must provide a flowchart of the organizational structure defining the hierarchy of reporting.

6. Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any business plan for a bakery.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your bakery is an attractive investment.

There should be 2 sections to your financial plan section:

• The startup costs of your project (if you plan to start a new bakery, purchase new equipment, renovate your store, etc.)
• The 5-year financial projections

a) Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project. For a bakery, startup costs are all the expenses you incur before you open your bakery and start making sales. These expenses typically are:

• The lease deposit for the space (if you rent) or the cost to purchase the real estate
• The renovation / refurbishment of the building / space
• Equipment & furniture for the bakery

Of course, the startup costs depend on many factors like the bakery shop size, its location, the number of staff, quality of the equipment, etc. 

As an example, it costs on average $109,250 to $310,050 to open a 1,500 sq. ft. bakery in the US .

Note that these costs are for illustrative purposes and may not be fully relevant for your business. For more information on how much it costs to open and run a bakery, read our article here .

b) Financial Projections

In addition to startup costs, you will now need to build a solid 5-year financial model for your bakery.

Your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in the business plan of your bakery.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

• How much revenue do you expect to generate over the next 5 years?
• When do you expect to break even?
• How much cash will you burn until you get there?
• What’s the impact of a change in pricing (say 15%) on your margins?
• What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

• The number of customers over time ;
• Your expected revenue ;
• Operating costs to run the business ;
• Any other cash flow items (e.g. capex, debt repayment, etc.).

When projecting your revenue, make sure to sensitize pricing and the number of customers as a small change in these assumptions will have a big impact on your revenues.

7. Funding Ask

This is the last section of your bakery business plan. Now that we have explained what your bakery business model is, what you sell and to whom, what’s your marketing strategy, etc., this section must now answer the following questions:

• How much funding do you need?
• What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
• How long will this funding last?
• Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

• What percentage of the total funding the loan represents?
• What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

• What percentage ownership are you selling as part of this funding round?
• What is the corresponding valuation of your business?

Use of Funds

Any bakery business plan should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment in paying your employees’ salaries? Or will it cover mostly the cost for the lease deposit and the renovation?

Those are very important questions you should be able to answer in the blink of an eye. Don’t worry, this should come straight from your financial projections. If you’ve built solid projections like in our Bakery financial model template , you won’t have any issues answering these questions.

For the use of funds, we also recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

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How To Write a Business Plan for Bakery Cafe in 9 Steps: Checklist

By alex ryzhkov, resources on bakery cafe.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan

Are you dreaming of opening your own bakery cafe? With the rising demand for freshly baked goods and the growing trend of cafes, now is the perfect time to start your own business. However, before you dive into this exciting venture, it's important to have a well-thought-out business plan in place. In this blog post, we will guide you through the nine essential steps to writing a comprehensive business plan for a bakery cafe. But first, let's take a look at some industry statistics.

The bakery cafe industry in the US has experienced steady growth in recent years, with an annual growth rate of X% in the past five years. This growth is attributed to the increasing consumer preference for freshly baked goods and the rising popularity of cafes as social hangout spots. With the bakery cafe industry expected to reach a market value of $X billion by 20XX , now is the perfect time to enter this lucrative market.

Now that you have a better understanding of the industry's growth potential, let's dive into the nine steps to writing a business plan for your bakery cafe.

• Conduct market research
• Identify target market and customer needs
• Define unique selling proposition
• Create a detailed financial plan
• Determine location and space requirements
• Develop a product and menu concept
• Research industry regulations and requirements
• Assess competition and potential partnerships
• Consider staffing and training needs

By following these steps, you will be well-prepared to launch your bakery cafe and attract customers with your delicious baked goods, enticing menu, and exceptional customer service. Stay tuned for our upcoming blog posts, where we will dive into each step in more detail.

Conduct Market Research

Market research is an essential step in the process of starting a bakery cafe. It involves gathering crucial information about your target market, competitors, and industry trends. By conducting thorough market research, you can gain valuable insights that will help you make informed decisions and create a successful business plan.

Here are some important steps to follow when conducting market research for your bakery cafe:

• Identify your target market: Determine who your potential customers are, including their demographics, preferences, and buying behaviors. This information will help you tailor your products and marketing strategies to meet their needs and attract more customers.
• Understand customer needs: Survey your target market and gather feedback to understand what they expect from a bakery cafe. This will help you identify gaps in the market and develop unique offerings that will set your bakery cafe apart.
• Analyze the competition: Research and analyze your competitors to understand their strengths, weaknesses, and market positioning. This will help you identify opportunities to differentiate your bakery cafe and identify potential partnerships or collaborations.
• Stay updated with industry trends: Keep track of the latest trends and developments in the bakery and cafe industry. This includes staying informed about new baking techniques, ingredient innovations, and changing consumer preferences. Knowing and adapting to these trends will help you stay ahead of the competition.

Tips for conducting effective market research:

• Utilize online surveys or focus groups to gather customer feedback.
• Visit other bakery cafes in different locations to observe their operations and customer experience.
• Join industry associations or attend trade shows to network with other professionals and gain industry insights.
• Use social media platforms to engage with your target market and gather valuable feedback.
• Regularly review and update your market research to stay current with changing market dynamics.

Identify Target Market And Customer Needs

When starting a bakery cafe, it is crucial to identify your target market and understand their needs in order to tailor your offerings and marketing strategies accordingly. By knowing who your customers are, you can create a more focused and effective business plan. Here are some key steps to help you identify your target market and understand their needs:

• Research demographics: Gather information on the age, gender, income level, and other relevant characteristics of your potential customers. This will give you insights into their preferences and purchasing power.
• Conduct surveys and interviews: Interact directly with your target market to gather valuable feedback on their preferences, expectations, and pain points. This will help you understand their needs and tailor your offerings accordingly.
• Study competitors: Analyze existing bakery cafes in your area and identify their target market. This will help you determine potential gaps or opportunities in the market that you can capitalize on.
• Consider lifestyle and behavior: Understand the lifestyle, habits, and behaviors of your target market. For example, if your bakery cafe is located near a business district, you may cater to office workers who are looking for quick and convenient lunch options.
• Utilize online tools and social media platforms to gain insights into your target market's preferences and behaviors.
• Engage with your potential customers through surveys or focus groups to gather detailed information about their needs and expectations.
• Consider offering a variety of options to cater to different customer preferences, such as gluten-free or vegan baked goods.

By identifying your target market and understanding their needs, you can develop a bakery cafe that appeals to your ideal customers and stands out from the competition. This will not only help you attract and retain customers but also drive the success of your business.

Define Unique Selling Proposition

Your bakery cafe's unique selling proposition (USP) is what sets it apart from competitors and makes it attractive to customers. It is the unique combination of factors that make your bakery cafe the go-to choice for customers looking for delicious baked goods, exceptional service, and a memorable experience.

When defining your bakery cafe's USP, consider the following:

• Quality: Emphasize the use of high-quality ingredients and the commitment to craftsmanship. Highlight your dedication to creating fresh and delicious baked goods that exceed customer expectations.
• Selection and variety: Showcase the extensive menu options and diverse selection of baked goods, pastries, sandwiches, and beverages available at your cafe. Focus on the range of options and flavors to cater to a wide range of customer preferences.
• Customization: Highlight your bakery cafe's ability to cater to individual customer preferences and dietary restrictions. Emphasize the flexibility to accommodate custom orders and special requests, such as personalized cakes for birthdays or gluten-free options for those with dietary restrictions.
• Exceptional service: Guarantee a warm and welcoming atmosphere where customers feel valued and appreciated. Train your staff to provide excellent customer service, ensuring prompt and friendly service at all times.
• Community engagement: Showcase your bakery cafe's involvement in the local community. Share your commitment to sourcing ingredients locally and supporting local farmers and suppliers. Consider hosting events, partnering with local businesses, or sponsoring community initiatives to reinforce your bakery cafe's connection to the community.
• Unique offerings: Identify any specialty or unique items that are only available at your bakery cafe. This could be signature pastries, innovative flavor combinations, or exclusive seasonal specials. Highlighting these unique offerings can create excitement and intrigue among customers.
• Research your competitors to identify what sets them apart. Differentiate your bakery cafe by offering something they don't.
• Survey potential customers to understand what they value most in a bakery cafe. Use their feedback to shape your unique selling proposition.
• Keep your USP concise and memorable. It should be easily communicated and understood by both customers and staff.
• Regularly evaluate and refine your USP to stay relevant in a dynamic market.

Create A Detailed Financial Plan

Creating a detailed financial plan is a crucial step in setting up a bakery cafe. It helps you understand the financial health of your business and ensures you have a clear roadmap for achieving your financial goals. Here are some important factors to consider when creating your financial plan:

• Start-up Costs: Start by estimating the costs involved in setting up your bakery cafe. This includes expenses such as lease or purchase of space, renovation, equipment, inventory, licenses, permits, and marketing. It is important to be thorough in your calculations and account for any potential unforeseen costs.
• Revenue Projections: Determine how much revenue you expect to generate from your bakery cafe. This can be based on market research, competitor analysis, and your unique selling proposition. Consider factors such as average sales per customer, the number of customers you anticipate per day, and seasonal variations in demand.
• Operating Expenses: Take into account the day-to-day expenses involved in running your bakery cafe. These may include rent, utilities, raw materials, labor costs, packaging, and delivery expenses. Be sure to consider both fixed and variable costs and update your projections regularly to reflect any changes in the business environment.
• Profitability Analysis: Analyze your projected revenue and expenses to determine the profitability of your bakery cafe. Calculate metrics such as gross profit margin, net profit margin, and break-even point to understand the financial viability of your business.
• Cash Flow Management: Develop a cash flow forecast to track the inflow and outflow of cash in your bakery cafe. This will help you identify potential cash shortages or surpluses and make informed decisions regarding investments, expenses, and pricing strategies. It is important to ensure you have sufficient working capital to meet your daily operational needs.

Tips for Creating a Detailed Financial Plan:

• Consult with an accountant or financial advisor to ensure accuracy and completeness in your financial plan.
• Include a contingency fund in your projections to account for unexpected expenses or setbacks.
• Regularly review and update your financial plan to reflect changes in your business and the market.
• Consider using accounting software or tools to streamline financial tracking and reporting.
• Seek funding sources such as loans, investors, or crowdfunding to support your start-up and long-term growth.

Determine Location And Space Requirements

Choosing the right location for your bakery cafe is crucial to its success. You'll need to consider factors such as foot traffic, accessibility, proximity to your target market, and competition in the area. Additionally, you'll need to assess how much space you'll require to accommodate your bakery operations, seating area, and any additional services you plan to offer.

1. Evaluate the neighborhood: Research the surrounding area to determine if it aligns with your target market. Consider factors such as demographics, income levels, and consumer preferences. Look for a location that will attract your ideal customers and provide a favorable environment for your bakery cafe to thrive.

2. Consider foot traffic: Assess the volume of pedestrian traffic in the area and whether it will contribute to the visibility and accessibility of your bakery cafe. A location with high foot traffic can help generate awareness and attract more customers.

3. Analyze space requirements: Determine the amount of space you'll need based on your bakery cafe's operations. Take into account the size of your bakery equipment, storage needs, seating capacity, and any additional service areas such as a catering kitchen or event space.

4. Assess zoning and licensing restrictions: Research local zoning codes and licensing requirements to ensure that your chosen location is suitable for a bakery cafe. Determine if there are any restrictions related to signage, parking, or operating hours that could impact your business.

• Consider leasing a space instead of purchasing one, as it offers more flexibility and requires less upfront investment.
• Ensure that your chosen location has adequate parking facilities or is easily accessible by public transportation.
• Collaborate with a commercial real estate agent who specializes in retail spaces to find the best options available.
• Visit the location during different times of the day and week to observe foot traffic patterns and assess potential customer flow.

By carefully determining your location and space requirements, you'll set a strong foundation for your bakery cafe and increase the likelihood of attracting and serving your target market effectively.

Develop A Product And Menu Concept

In order to establish a successful bakery cafe, it is crucial to develop a unique and appealing product and menu concept that will attract and satisfy your target market. Here are some important considerations to keep in mind:

• Identify your specialty: Determine what sets your bakery cafe apart from the competition. Are you known for your artisan bread, decadent pastries, or unique flavor combinations? Identify your specialty and use it as the foundation for your menu concept.
• Create a diverse menu: Offer a diverse range of products to cater to different customer preferences. This can include a selection of bread, cakes, pastries, sandwiches, and beverages. The menu should be well-balanced with options for breakfast, lunch, and snacks.
• Consider dietary restrictions and preferences: Take into account the growing demand for healthier and more allergen-friendly options. Offer gluten-free, vegan, and low-sugar alternatives to cater to customers with dietary restrictions and preferences.
• Source high-quality ingredients: Use only the best ingredients to ensure the taste and quality of your products. Consider sourcing locally grown or organic ingredients to appeal to customers who prioritize sustainability and supporting local businesses.
• Stay updated with seasonal offerings: Keep your menu fresh and exciting by incorporating seasonal specials and promotions. This can include holiday-themed treats or incorporating seasonal fruits and flavors into your products.
• Regularly review and update your menu based on customer feedback and market trends.
• Consider offering customizable options to cater to individual preferences and dietary needs.
• Experiment with unique flavor combinations to set yourself apart from competitors.

By developing a well-thought-out product and menu concept, you can attract customers with a variety of appealing options and keep them coming back for more. Remember to regularly evaluate and adapt your menu to meet changing customer demands and stay ahead of the competition.

Research Industry Regulations And Requirements

When starting a bakery cafe, it is crucial to familiarize yourself with the industry regulations and requirements . These regulations are put in place to ensure food safety, hygiene, and compliance with local laws. By understanding and adhering to these regulations, you can maintain a high level of quality and safety for your customers.

One of the first steps in researching industry regulations is to consult your local health department . They will provide you with information on licensing, permits, inspections, and food safety guidelines specific to your area. It is essential to comply with these regulations to avoid any legal issues or penalties.

Additionally, research food labeling requirements . Depending on where you operate, you may need to provide detailed information on ingredients, nutritional values, allergens, and any potential hazards. This information must be accurate and easily accessible to customers.

• Check if you need any specific licenses or certifications, such as a food handler's permit or a business license. Different locations may have different requirements.
• Understand packaging and labeling requirements for baked goods. This includes proper labeling for ingredients, potential allergens, and nutritional information.
• Familiarize yourself with local zoning and building codes. Ensure your bakery cafe is compliant with any restrictions on signage, outdoor seating, parking, or waste management.
• Research regulations related to employee safety and hygiene, including proper food handling practices, sanitation protocols, and training requirements.
• Contact industry associations or professional organizations that specialize in bakery or foodservice to get more information on industry-specific regulations.
• Set up a system for regular monitoring and documentation of food safety practices to ensure compliance and maintain high standards.
• Stay updated on any changes or updates to regulations to ensure ongoing compliance with industry standards.

By taking the time to thoroughly research industry regulations and requirements, you can establish a solid foundation for your bakery cafe's operations. This will not only ensure the safety and satisfaction of your customers but also position your business as a trustworthy establishment within the industry.

Assess Competition And Potential Partnerships

Assessing the competition and potential partnerships is a crucial step in creating a successful business plan for a bakery cafe. This process involves researching and understanding the market landscape and identifying key competitors. By evaluating competitor offerings, pricing, and marketing strategies, you can gain insights into the industry trends and determine how to differentiate your bakery cafe.

Research your competition: Start by identifying your direct competitors, including other bakery cafes, coffee shops, and restaurants in your target market. Visit their establishments, explore their menus, and analyze their customer reviews. Look for areas where their offerings may overlap with yours and consider how you can offer unique value or fill any gaps in the market.

Identify potential partnerships: While competition analysis is vital, it's also important to explore potential partnerships that can complement your bakery cafe. Think about local suppliers of high-quality ingredients, specialty coffee roasters, or complementary businesses like florists or event planners. Forming partnerships with these businesses can help you enhance your offerings and attract a wider customer base.

Tips for assessing competition:

• Pay attention to social media presence and online reviews of your competitors to understand their strengths and weaknesses.
• Visit trade shows and food festivals to get insights into emerging trends and new competitors in the bakery cafe industry.
• Consider conducting mystery shopping to gain a firsthand experience of your competitors' products and services.

Tips for identifying potential partnerships:

• Research local suppliers and vendors who align with your commitment to quality and sustainability.
• Reach out to complementary businesses through networking events or online platforms to explore collaboration opportunities.
• Attend industry events or join associations to connect with other professionals in the food and hospitality industry who may be interested in partnerships.

Consider Staffing And Training Needs

When starting a bakery cafe, it is crucial to carefully consider your staffing and training needs. The success of your bakery cafe will heavily depend on the skills and experiences of your staff members. Here are a few important factors to consider when it comes to staffing and training:

1. Determine the required roles: Identify the specific roles you need to fill in your bakery cafe, such as bakers, pastry chefs, baristas, server, cashier, and kitchen staff. Assess the number of staff members needed for each role based on the size and projected demand of your cafe.

2. Look for experienced and qualified individuals: Seek out candidates who have previous experience in the bakery or food service industry. Look for individuals who have the necessary skills and knowledge to handle the responsibilities of their respective roles.

3. Train your staff: Provide comprehensive training to ensure your staff members are equipped with the knowledge and skills required to fulfill their duties efficiently. Train them on baking techniques, food safety practices, customer service, and the preparation of various menu items.

Tips for staffing and training:

• Invest in ongoing training and development programs to keep your staff members updated on new baking techniques and industry trends.
• Consider hiring a professional trainer or consultant to provide specialized training for your staff members.
• Encourage teamwork and foster a positive work environment to boost employee satisfaction and productivity.
• Implement a system for staff evaluations and feedback to address any performance issues and improve overall efficiency.

4. Establish clear roles and responsibilities: Clearly define the roles and responsibilities of each staff member to ensure smooth operations and avoid confusion. This will help establish a sense of accountability and encourage employees to take ownership of their tasks.

5. Consider cross-training: Cross-training your staff members in various roles can help increase flexibility and efficiency, especially during busy periods or when someone is absent. It can also provide opportunities for employees to learn and grow within the organization.

6. Provide competitive compensation: Fair compensation and benefits packages are crucial for attracting and retaining quality staff members. Research industry standards to ensure you are offering competitive wages and perks.

By carefully considering your staffing and training needs, you can build a skilled and motivated team that will contribute to the success of your bakery cafe. A well-trained staff will provide excellent customer service, maintain product quality, and efficiently handle day-to-day operations.

In conclusion, writing a business plan for a bakery cafe requires careful consideration of several factors. From conducting market research and identifying the target market to creating a detailed financial plan and assessing competition, each step is essential to ensure the success of the venture.

By defining a unique selling proposition, developing a product and menu concept, and researching industry regulations and requirements, bakery cafes can distinguish themselves in a competitive market.

Additionally, considering location and space requirements, staffing and training needs, and potential partnerships can contribute to the overall success and growth of the bakery cafe.

With a comprehensive business plan in hand, bakery cafe owners can confidently navigate the challenges and opportunities that come with running a successful bakery cafe, and ultimately achieve their goals in the industry.

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How to Start a Bakery: The Ultimate Guide for Bakers

Lisa Furgison

17 min. read

Updated January 3, 2024

Free Download:  Sample Bakery Business Plan Templates

Are you the one that makes killer cakes for every birthday? Do you churn out to-die-for donuts? If you’re ready to turn your talents into a profitable bakery, you’ve come to the right place.

We chatted with bakers Michelle Green of Three Sweeties, Barbara Batiste of B Sweet Dessert Bar , and Victoria Roe of Three Leee Cupcakery for expert bakery business advice. This guide is meant to give you all the ingredients you need to plan, start, and grow a successful bakery.

To get your piece of the pie, combine these tips with your impressive baking talents and you’ll be on your way to success.

• 9 steps to start a bakery

With Michelle and Barbara’s help, let’s get the planning process started.

1. Choose the kind of bakery you’d like to open

One of the first decisions you’ll have to make is the kind of shop you want to open. To do this, you’ll want to assess your talents, budget, and goals. Be sure you’re not making this decision in a bubble—you will want to have your ear to the ground on national trends in the industry —remember the cupcake shop craze (and the cupcake-focused reality TV shows) a few years back? But don’t simply take your findings at face value either. It’s equally important to do local market research to figure out how national currents will affect your particular location and demographic. From there: take a look at the list below and decide which type of bakery is right for you.

• Online. You don’t need a storefront to open a bakery. You can start out online. With a killer website, pictures of your work, and a way to place an order, you can run it from your home.
• Counter service. With a small commercial space, customers can walk in and pick up baked goods from an employee-managed counter.
• Specialty service. If you plan to specialize in a certain kind of baked good, a specialty service is your best option. Whether you run the business from your home or rent a space is up to you.
• Sit down. More owners are trying to capitalize on the sit-down and dine option. It’s a growing trend in the bakery industry right now. Picture a space that has both an area to order baked goods and a spot to sit and enjoy them.

2. Write a bakery business plan

Once you know what kind of bakery you want to open, you need to create a business plan . This will force you to look at the business from every angle. It will help you define your business, set goals, find ways to generate revenue, list expenses, identify your customer base, and examine your competition. You can check out our free bakery sample business plan for some guidance.

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As part of your business plan, you’ll dive into finances. One of the numbers you’ll need to generate is your startup costs . 

You’ll need to compile a list of equipment, from appliances like ovens and refrigerators to smaller items like utensils and pans. Make sure you create a full list of tools. The equipment will be a one-time hit, but you’ll also need money to live on while the business gets established.

You won’t make profits overnight, so you need to sit down and figure out when you’ll break even and how much money you’ll need to survive until that time.

3. Get funding for your bakery business

Starting a bakery requires a substantial investment in ingredients, kitchen equipment, the lease or purchase of a suitable location, hiring employees, and marketing. You’ll need to have a solid plan for sourcing the necessary funds. Here are a few ways you can explore:

Personal Savings: 

Using personal savings can be the simplest way to fund your bakery, as it doesn’t involve loans or interest. However, this method can be risky if your business doesn’t go as planned, so make sure you are aware of what to expect when funding your own business .

Loans: 

Banks, credit unions, and online lenders provide small business loans that can be used to fund your bakery. Before applying for a loan, ensure that your credit score is good and that you can meet the monthly repayment requirements.

Investors: 

You can pitch your bakery idea to potential investors. These could be friends, family members, or venture capitalists. However, this typically means giving them a portion of your business profits.

Crowdfunding: 

Websites like Kickstarter and Indiegogo allow you to create a crowdfunding campaign for your bakery. This method allows people who are interested in your concept to donate money to your cause. In return, you can provide them with rewards, such as free pastries for a certain period. If you are interested in this option, make sure you know the crowdfunding basics first.

Remember, no matter which option you choose, it’s essential to have a well-constructed business plan. This plan should outline your business idea, target market, marketing strategy, projected income, and expenditure. Lenders, investors, and grantors would likely request this document before they consider funding your bakery.

Finally, it’s advisable to seek advice from a financial advisor or a small business consultant before making a decision on funding. They can provide you with valuable insights and help you assess the potential risks and benefits associated with each funding option.

4. Lease a space for your bakery business

If you’re running a bakery from your home, you’ve already got your space figured out. If you plan to invite customers into your shop, you’ll need a formal spot with a kitchen and an area for the public. Some bakers decide to rent out commercial kitchen space only. It’s a good option if you don’t want customers to walk through your shop and just need a bigger, more equipped kitchen.

Whatever your needs, be picky. Shop around, compare prices, talk with neighboring businesses, and research the area to make sure you find the right space. It’s never a bad idea to look into small business incubator programs that might offer space and business training or mentorship at a reduced rate. Do not forget to consider the legal necessities—which will vary from state to state—such as obtaining a license to bake out of your own kitchen.

Roe says that following some simple guidelines laid out by the USDA lets her earn an income, and develop wholesale relationships with local restaurants, independent hotels, and coffee shops, but still enjoys the benefits of being a stay at home mother. 

“Baking from home at some times can be a challenge, Mainly in the realm of time management and little fingers wanting to try all the frosting. I am also limited on certain ingredients that I am allowed to use depending on their acidity ratio and their storability because I am not a commercial kitchen,” she says.

Wherever you decide to run your bakery, be sure to think through the pros and cons and their related costs.

5 . Secure the necessary licenses and permits for your bakery

Before you can open your bakery, you’ll need to secure the appropriate licenses and permits. These may vary by city, state, or country, so it’s crucial to do your research and ensure you are in compliance with all legal requirements. Below are some typical licenses and permits your bakery might need:

Business License: Permits you to run a business within your locality.

Food Service License: Issued by the health department, this license certifies your bakery meets health and safety standards.

Seller’s Permit: Allows you to collect sales tax from customers if your state requires it.

Sign Permit: Required in certain localities for displaying a business sign.

Fire Department Permit: Required if your bakery uses potentially fire-causing equipment like ovens.

Liquor License: Necessary if you plan on serving alcohol.

Home Occupation Permit: Required for home-based bakeries in some areas.

To get started with the process of obtaining these licenses and permits, contact your local city hall or county clerk’s office. They can provide a complete list of the permits you need, the costs involved, and guidance on how to apply.

Additionally, consider seeking legal advice to ensure you have all the necessary licenses and permits. This can help avoid potential legal issues that could arise if your bakery is found to be operating without the necessary documentation.

6. Purchase the needed equipment for your bakery

The right equipment is crucial for the efficient functioning of your bakery. Here’s a basic list of what you may need:

Ovens: This is the heart of your bakery. The type needed will depend on what you’re baking, be it convection, deck, or rack ovens.

Mixers: A high-quality mixer is essential for breads, cakes, and pastries. You might need a variety of sizes depending on your production volume.

Refrigeration: Coolers or refrigerators are necessary to keep dough, fillings, and other ingredients fresh.

Display Cases: If customers will be visiting your bakery, you’ll need attractive display cases for your baked goods.

Bakery Smallwares: Items like baking sheets, pans, mixing bowls, spatulas, and other baking utensils.

Work Tables: You’ll need a good amount of workspace for prepping and baking.

Cash Register or Point of Sale System: Essential for handling transactions.

Cleaning Equipment: Keep your bakery hygienic with items like sinks, mops, brooms, and sanitizing solutions.

It’s important to consider whether to buy new or used equipment. While new equipment can be costly, it often comes with warranties and is less likely to break down. Used equipment can be more affordable but may require more maintenance. Always prioritize quality and durability in your selections.

7. Price your baked goods

Most bakers base their retail price points on the cost of supplies and the time it takes to make the goods, but Green says this formula is flawed.

“Your prices should include things like clean up time, packaging, and time spent promoting your business on social media,” she says. “The biggest hidden cost in a bakery is time. It’s easy to forget the time you spent making flowers because you were watching TV while you did it. There is nothing worse than realizing afterward that you earned 50 cents an hour on a fabulous creation.”

See Also: What You Absolutely Cannot Afford to Forget When Pricing Your Products

8. Have a defined friends and family policy

Before you sell your first scone, be aware that friends and family will probably ask for a discount.

When you’re selling cakes and cookies as a side gig, it’s fine to give the neighbor or the PTA president a discount, but when you start your business, it’s different. “All those wonderful people who previously bought cakes off of you for the cost of ingredients are going to need to be re-educated about what you’re doing now,”

Green says. “Those who really love and support you will also understand your need to feed your family and pay your rent.” If you want to offer a 10 percent discount to friends and family, that’s fine, but whatever your policy is, make sure it’s consistent.

9. Find support

Speaking of friends and family, a support system is crucial in the baking business, Batiste says. Opening a business is time-consuming. Time spent baking is only half the commitment. You’ll need to market your business, take orders, help customers, and do an array of administrative tasks.

If you don’t have someone cheering you on, it can be hard. Whether it’s your spouse, a colleague, or business mentor, you need someone in your corner. Roe says, “To say it is just me would be a lie. Though I do all the baking, my husband helps me tremendously, from delivering to running out late for some organic butter.”

• Feed the people

What’s the one ingredient every successful small business needs? Customers. This next segment will help you find and retain customers.

1. Be the best, the first, or the only one

Be original. These two words might seem like generic advice, but to survive, you can’t be a carbon copy of your competitors. “Be the best, the first, or the only one baking the kind of treats you make,” Green says. “If you can be all three of those things, that’s even better.”

Know what kind of competition you have in your area and work to set yourself apart. Green’s bakery, for example, is the only one in the area that sells nut-free cupcakes.

Roe’s focus is on gluten-free and vegan baked goods made with organic and local ingredients. “I really find happiness in seeing any child be able to have a decadent cupcake or piece of cake on their birthday that otherwise would not be able to because of food allergies. I have experimented relentlessly to create recipes that taste amazing, even know they are free of animal by products, gluten, pesky preservatives and all that other nasty stuff.” It’s an approach that resonates in her community where so many people value natural and locally sourced food.

One of Batiste’s original twists is a food truck. You know the food trucks that sell sandwiches and pizza to folks during the lunch hour? Well, Batiste has her own dessert trucks that travel the streets of Los Angeles selling all kinds of tasty treats. The trucks even have their own Twitter handle, so customers can locate them at any time.

2. Be prepared to market your product

You can spend all day and night in the kitchen creating the next best cake, but if no one knows about it, it doesn’t matter. That’s why you have to set aside time and money to market your business .

“Being a fabulous baker doesn’t guarantee success,” Green says. “You also have to be a fabulous marketer too.” Too many bakers get wrapped up in technique, but “perfect ganached edges mean nothing if you have no actual orders on which to have perfect ganached edges.”

Here are a few low cost or free marketing ideas:

• Write a blog: To promote her business, Green devotes some of her time to blogging . Recently, she wrote a post about delivering cakes long distance.
• Use social media: Social media is a great way to promote your business. If you’re short on time, pick one social media site and post consistently.
• Join groups: As with any business, networking can bring in more customers. Join local business groups like your chamber of commerce or small business association and forge relationships.

See Also: 11 Tips for Focused, Effective (and Inexpensive) Startup Marketing

3. Focus on your customers

Your customers are your key to success. Happy customers become repeat customers, so work to make each customer experience memorable, Batiste says.

Ask your customers for feedback, talk with them at the counter, and ask for product suggestion once in awhile. Green agrees. “Make the customer experience count,” she says. “That’s the best way to get repeat customers and money in the register.”

See Also: 9 Ways to Thank Your Favorite Customers

• Grow your bakery

Once the bakery is up and running, you can start thinking about growth. We’ve got a few tips to make sure it continues to thrive.

1. Expand your bakery business’ offerings

Most bakeries are busy during the warm months. Shoppers that are out and about are likely to wander into your shop on sunny summer days. Plus, summer is full of parties like graduations and weddings. The end of the year will be busy too, Batiste says, as the holidays are always a hectic time for bakers.

To even out your revenue stream, you might consider diversifying your business. Batiste offers catering, for example. Her corporate clients keep a steady stream of orders coming through year round. Of course, adding products could increase your expenses and change your workflow, so make sure you weigh all of your options if you plan to branch out.

See Also: How to Balance Cash Flow in a Seasonal Business

2. Hire and train bakery employees

When the orders pile up and you need more hands in the kitchen, you’ll have to make your first hire. Batiste says she had a hard time hiring help because she didn’t want the quality of her products to suffer.

She did bring several employees on board, but she did so cautiously. “Don’t hire anyone immediately and put new hires on a probation period. You want to make sure they are trustworthy and have the capability to learn,” she says. “Really delegate the way you want your business [to run] and how you want your food cooked and baked. Set the bar really high.”

See Also: How to Hire Your First Employee

3. Market your bakery

Your initial marketing strategies will hopefully result in a steady stream of repeat customers, but that doesn’t mean you should let up on your marketing efforts.

Try new marketing tactics. Buy ads on social media, participate in charity events, and hand out business cards as often as possible. You should always be looking for new ways to get your name out there, Green says.

See Also: 18 Affordable Marketing Tactics Restaurants Can Use to Bring in More Customers

4. Plan for retirement

When you’re first starting out, you’re thinking about breaking even. Putting away money for retirement is usually pretty far down the list of things to accomplish, but you shouldn’t let it linger.

Once the business is functioning, you should sit down with a financial advisor and talk about saving for retirement. As a business owner, it’s your responsibility to make long-term financial plans.

• Next steps for your bakery business

If you’re ready to take the next step towards starting your own bakery business, you can view our free bakery sample business plan . If you need a little extra guidance, check out our article on How to Write a Bakery Business Plan . 

A little more on the bakery business owners:

Michelle Green started baking when she was a teen, but it wasn’t until she was well into her corporate career that she realized baking was her true calling. Fed up with the stale muffins that seemed to be standard fare at all of her board meetings, this baker and mother of triplets decided to ditch the business suit and open her own shop in Australia called Three Sweeties .

Barbara Batiste was also baking treats at an early age for her close-knit Filipino family, and after years of amazing her relatives with her creations, she decided to turn her love of all things tasty into a business. She started in her home, and her business continued to expand. She has outgrown three commercial kitchens since, in part due to her creative business modeling, which includes both a catering service and a mobile dessert food truck. Now, she’s preparing to open a storefront in West Los Angeles called B Sweet Dessert Bar .

Victoria Roe started baking over a decade ago when she was asked to make a carrot cake for her mother-in-law’s birthday. She runs her business from home, a cottage industry, in a small village in Ohio. Most of her customers find her through word of mouth or learn about her business when they taste one of her creations at a local coffee shop. She focuses on gluten-free and vegan–but you’d never know it to taste them. Running Three Leee Cupcakery from home gives Victoria the flexibility to be present to her young family and pursue a degree in business while bringing in income.

Clarify your ideas and understand how to start your business with LivePlan

Lisa Furgison is a multimedia journalist with a passion for writing. She holds a graduate degree in mass communications and spent eight years as a television reporter before moving into the freelance world, where she focuses mainly on content creation and social media strategies. Furgison has crisscrossed the U.S. as a reporter, but now calls Key West, Florida home. When she's not conducting interviews or typing away on her laptop, she loves to travel.

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Opening a Bakery?

How to write a bakery business plan (fast), step by step (actionable) case study.

Think you are the next great baker? Well, you’ll need a business plan! That’s why we have put together a detailed Bakery Business Plan example for you to take ideas from.

There’s only one thing whose aroma is sweeter than the cakes you’ve baked or the bread you’ve made… and that’s the smell of a successful business!

Bottom line…

If you want to get baking with this business plan…

#1 Bakery Business Plan Sample – Executive Summary Section

The Executive Summary section of your business plan outlines what your business does. It summarizes the company’s key points and introduces the rest of the business plan content.

The Executive Summary is incredibly important because it might be the only section a busy person reads; so it should always include:

• Who the company is – In the Company section of the executive summary, we’ve talked about the key staff member and the expertise and experience he brings to the table, as well as the proposed project and the opportunities it will bring to the local area.
• What we sell – What the problem is and how The Bakery Company plans to solve the problem.
• Target Market – Who your customers are going to be.

So, if you’re looking at starting a bakery business or simply looking for a cake shop business plan, this guide will give you all the ideas you need to write a complete business plan for bakery products.

Check it out and feel free to lift anything you want.

The #Executive #Summary outlines what your business does, summarizes your key points, and prepares investors for the rest of your #businessplan. It’s vital you provide a solid case for your business idea, which is why your #executive #summary is so important! Tweet

Executive Summary

The Bakery Company is a cake and sugar sculpture company based in Chicago. Owned and run by innovative baking and sugarcraft entrepreneur Ali Baker, the company offers a wide range of products and services to a broad client base. Ali is looking to develop more products in her range, and to introduce these into retail outlets and other suppliers nationwide. She also plans to take the entire brand nationwide over the next few years, and is seeking investment to help her do this.

What We Sell

In addition to couture cake designs, The Bakery Company offers a wide range of delicious and innovative products that are unique to the brand – and which are currently not being offered elsewhere in the region. There are other cake companies in the region, but Ali is looking at ways to diversify so that her brand stands out. One of these ways is to specialize in unique sugar sculpting designs that offer a lifelike effect, rather than the cute and cartoon-based offerings of her competitors. This approach has been a real success with clients, and more and more orders are been received thanks to this innovative approach to sugar sculpting.

The Bakery Company also offers baking and sugarcraft workshops for adults and children – and these are proving a real hit, especially given the appeal of baking right now thanks to the many bakery shows on TV.

Who We Sell To

The Bakery Company has a broad and very diverse range of clients. This really is a company that has something for everybody and which appeals to all ages.

From the bride and groom looking for a stunning bespoke couture wedding cake to the stressed parent looking for a unique and fun party idea for their child, Bakery Company can offer it all. Corporate clients also make up a large part of the client base, and Ali is exploring more services to offer corporate clients, such as sugarcraft workshops as teambuilding events.

From a product perspective, The Bakery Company’s Pick ‘n’ Mix Brownies make up a large proportion of sales, and are always sold out at wedding fairs and other marketing events. This is an area that Ali would really like to push out to mass market, and which has real potential to be taken on board by retailers nationwide.

#2 Bakery Business Plan Company Profile Section

The Company Profile section in this small bakery business plan sample can also be identified as your Company Description.

If it’s well written, your potential investors will find easy to understand your business model, your mission and goals, and how it’s going to meet the needs of your target market.

So whether it’s a cupcake business plan, an online bakery business plan, or pastry shop business plan you’re after, we hope you find the following information useful.

For the purpose of this business plan, we’ve included the following:

• The Company and Management Team
• Location and Facilities

Mission Statement

Company Overview

The Bakery Company was launched in 2014 by Ali Baker. The company is run from Ali’s home and there are currently no other locations in operation, although venues have been hired in the past for various workshops.

The address of the business is: Ali’s House, Chicago, USA.

The business is currently operating from a home kitchen and office, and is owned and run by Ali Baker. Ali is the sole Managing Director, but there are plans to employ more staff as the business grows.

Management Team

Ali is currently the sole member of the management team at The Bakery Company, and is responsible for all business operations. As a highly skilled professional, she is passionate about the business and in building a household name that is synonymous with innovation, quality and creative flair.

Ali has a deep interest in the science behind baking and sugar sculpture, as well as the art of baking. Her expertise as a patisserie professional, sugar artist, chocolatier, chef and food writer, has helped her get the company noticed and build a strong reputation. She also ensures she keeps up to date with the latest food industry trends so that she can stay ahead of her competition and meet market needs.

Creativity is strong at The Bakery Company, and assistance may be needed from a marketing and business growth perspective. Ali is hoping that any potential investor will be able to act as a mentor and give advice on how best to move the business forward.

As the business grows, Ali will be looking to recruit more staff.

Locations and Facilities

At present, The Bakery Company operates solely from Ali’s home kitchen and office. This works well at present, and also saves on costs associated with renting accommodation. However, as the business grows, alternative accommodation will be sought. This may be in the form of a dedicated business premises, or the company may look to secure space within hospitality venues such as hotels.

Tagline: Mouthwatering masterpieces enrapturing palates and capturing the imagination.

Mission Statement: A passion for creativity and innovation is at the heart of everything we do here at The Bakery Company. Our mission is to provide our customers with uniquely designed, lovingly crafted cakes for all of life’s celebrations. Our artisans are dedicated to providing a simple, friendly and affordable way to order cakes, learn new skills and enjoy delicious handmade treats. From the gloriously traditional to the utterly mindblowing, there is no limit to our creativity and commitment.

A #mission #statement is a short statement of an organization's purpose and shows the goal of its operations: what kind of product or service it provides, its primary customers or market, and its geographical region of operation. Tweet

Company History

The Bakery Company first opened its oven doors in 2014, and since then owner and entrepreneur, Ali Baker has taken the company from strength to strength. What started out as a casual home business supplying cakes to friends, has now grown to a thriving business supplying services and products to a wealth of different clients including brides, parents, children and corporate clients.

The company is operated from, and has always been operated from Ali’s home, but once the company grows, the plan will be to move to larger, permanent premises. At present, with the current volume of orders, the home kitchen and office set up is sufficient, not to mention cost effective.

Since The Bakery Company first started, more products and services have been added, including:

• Wedding cakes Celebration cakes Corporate cakes
• Cupcakes and Pick ‘n’ Mix Brownies
• Sugar Sculpture workshops for adults and children

Ali has also invested in good quality branding and design for the company, and this will really help the company to stand out and attract attention.

#3 Bakery Business Plan Products & Services Section

The Products and Services section needs to be much more than simply a list of what your new business is going to provide.

This is especially important if you’re looking to get funding; so make sure that you showcase the value, the quality, and the benefits of your business.

Ask yourself:

• What sets you apart from your competitors?
• Why would people buy from you as opposed to your competitors?

Here’s the example.

Products and Services

The Bakery Company produces a wide range of homemade, hand crafted and bespoke products, and runs a number of workshops for children and adults. Below is a detailed summary of each product and service, and the benefits it provides to customers.

Bakery and Sugar Confectionery

Celebration Cakes

• Wedding Cakes including Bakery Company Signature Cakes and Tiered Wedding Couture Cake Sculptures
• Pick ‘n’ Mix Brownie Bites (sold by the bag) Triple Chocolate Brownie Bites (sold by the bag)
• Double Chocolate Chip Brownie Slab (sold by the bag) Big Bonkers Brownie (sold by the bag and box)

Pick ‘n’ Mix Wedding Brownie Bars

• Wonka Wedding Bar – A great way to keep the children amused at weddings. Everything is supplied including a Willy Wonka style cart serving  scrumptious brownie bites, four sweet options, and one topping sauce.
• Cake Cocktail Bar – Who says kids get all the fun? The cake cocktail bar offers guests six different candy/chocolate shard options, two toppings, and The Bakery Company’s delicious gluten-free brownie.

The Bakery Company Workshops

• Children’s Cake Decorating And Sugar Workshops – What a great alternative for a children’s’ birthday party! The Bakery Company supplies all the fun, and each child gets to take home their wonderful creations as well as the obligatory party bag and their own Bakery Company character.
• Adult Sugar Sculpture Workshops – At the sugar sculpture workshops, The Bakery Company shares techniques and useful tips on how to make life-like cake.

Competitors

The baking and confectionery industries are fiercely competitive, and right now even more so thanks to the baking revolution that has taken the US by storm. Ali is very aware of the competition in the marketplace which is why she has taken her brand in a completely different direction, offering customers something unique and not available from any of her competitors.

Her lifelike sugar sculptures are extremely popular with customers looking for an alternative to cute or cartoon-like character sculptures. As a result, Ali is earning quite a reputation for this style, and plans to develop this technique further. Flavor is something else that really stands out, and Ali experiments with many exciting flavor combinations to give her clients the wow factor and a unique twist on more traditional options. All products are made at home using the freshest ingredients that are selected from local suppliers wherever possible.

The company also offers a gluten-free range which Ali is very passionate about, being gluten-free herself. She has worked hard to develop a gluten-free cake that doesn’t compromise on taste or texture – a common problem with other gluten-free products.

Product & Service Development

Product development is something very close to Ali’s heart, and she will be looking to develop more innovative and creative products in the future.

A new website will also be launched shortly and will detail all products currently available. Customers will be able to place orders, make bookings and send enquiries.

Sourcing and Fulfillment

The Bakery Company uses a number of suppliers that are used on a regular basis. There is no agreement in place with one supplier. Due to the variety of products that are required by the business, it would be quite difficult to source from one supplier. However, Ali does review price points to ensure she is getting ingredients and sundry items at a competitive price, and many items are bought at wholesale price.

The company relies on the skills of Ali Baker to carry the brand forward and provide products and services. At present the only technology in use is a home computer on which invoicing, social media updates and other administrative business tasks are carried out. The company will also rely on a website and social media channels to attract new business and connect with customers and followers.

Intellectual Property

The Bakery Company is in the process of being trademarked.

#4 Bakery Business Plan Situation & Market Analysis Section

This section of a business plan is very often glossed over because more often than not, the business owner is so involved within their business, that it doesn’t occur to them that they can learn something by writing this down!

This section is one of the most important aspects of your Bakery marketing plan.

In fact, it defines where you currently are in terms of your market, product, customers, and competition. It also allows you to look at both internal and external factors and to review and document the strengths and weaknesses of your business, as well as identifying any opportunities and threats within your marketplace.

It can include:

Market Overview

Market needs, market trends, market growth, industry analysis, key customers.

• SWOT analysis

Here’s our example.

Your #Market #Analysis section of a business plan is one of the most important aspects of your marketing plan. It defines where you are currently in terms of your market, product, customer, and competition. Check out this example in our #Bakery #BusinessPlan! Tweet

Target Market

One of the great things about The Bakery Company is that it really offers something for everyone. Ali has really taken the time to think her target market through, and there is no demographic she has left out.

Catering for all ages from 4 upwards, the company targets and sells to mostly women, but appeals to anybody looking for unique cakes, a fun twist, or an enriching learning experience.

While the younger generation love children’s cakes, cupcakes, pick ‘n’ mix brownies and the brownie bar, older customers are more interested in sophisticated cake creations, cakes for corporate events and learning how to make their own stunning cakes and sculptures at home.

Cake couture trends are very much affected in the same way as fashion couture trends. Right now, hand painted cakes are very much the “in” thing, but this will change in time. Ali prides herself on keeping up with the latest trends, and of course catering to the unique needs of her target audience.

The Bakery Company solves a wide range of problems that customers experience. Here are just some of those solutions:

• Customers often lack the skills and time to create a cake to the same high standards of a professional couture cake. For that reason, they will approach The Bakery Company for a bespoke design that is sophisticated, authentic and which they would be able to find anywhere else.
• Creativity and innovation is very strong within the company, and everything produced is a unique design. Ali does not offer basic, “off the shelf” style cakes and instead focuses on the extraordinary and ground breaking.
• The company produces some of the best gluten-free products. Being gluten-free herself, Ali has mastered the perfect recipe without compromising on taste or texture. This is a huge market to leverage and more products will be introduced as the company expands.
• Workshops are offered at an extremely high standard and structured to make people believe that anything is possible with a little imagination and time.

Other similar companies in the region simply aren’t offering this bespoke, high-quality service or such a diverse range of innovative products. Consumers are always looking for that little something extra that is going to make their event stand out from the crowd and be remembered for all the right reasons. It is these little innovative details that Ali strives to offer.

As mentioned previously in the business plan, this is an industry that never stays the same, and trends are driven very much by consumer demand. As a result, Ali constantly reviews and evaluates the products and services she offers to ensure she stays ahead of the competition and provides what her customers want.

In order to keep up with the latest market trends, she has also signed up with a number of newsletters from industry leaders and innovators and has joined a number of organizations including The Chicago Weddings consortium, The Sugar Craft Guild, Cake Decor and Made in Chicago. These organizations often hold local and national events at which The Bakery Company can exhibit.

Social media can also often highlight shifts in market trends and a close eye will be kept on the company’s social media channels to see what people are talking about, and what is hot right now.

Celebration cakes have been an integral part of Western life since the 19th century. Today, no party or wedding would be complete without a stunning baked creation taking center stage. Since hit TV show, ‘The Chicago Bake Off’ aired in 2012, the US has been taken over by something of a baking revelation, and this is great news for businesses like The Bakery Company. Ali wants to take this baking fever one step further, offering customers sophisticated and innovative cakes that are one-of-a-kind couture creations, and something that simply cannot be found elsewhere.

Consumers no longer want supermarket birthday cakes, or a traditional wedding cake. Today, it is about the wow factor and creating cakes that are showstoppers all on their own. It is this passion that The Bakery Company wants to promote, in both its products and its workshops, as well as showing that the only limit is the imagination when it comes to creating a stunning cake, brownie or sugar sculpture.

The Bakery Company spans a number of different industries, including hospitality, wedding supplies, catering, and art and education.

Reputation is extremely important for the company as many orders will be placed through word of mouth and repeat business. The website will also play a big part in the marketing strategy of the business as will social media and competition entries. Ali has already taken part in a number of competitions, and plans to enter more in the future as this is great exposure for the brand.

Buying decisions will also be very much visually led, and it is therefore important that the business focuses on showcasing products in the most professional and detailed way possible. Professional photography and graphic design will therefore be very important for the marketing process.

As mentioned previously, key customers for the business will span all age groups, and will come from all walks of life. Below are details of each consumer group, and how the company plans to market to these individuals.

Parents and Children

The company offers a range of products and services aimed at parents and children. Birthday parties, brownie bars and workshops are just some of the options available.

Wedding Couples

Every wedding needs a cake, and that cake should be a Bakery Company cake. The company offers a fully bespoke service, plus a range of economically priced, high-quality wedding cakes for couples on a budget.

Corporate Event Planners

The company will target corporate clients to take up products and services such as celebration cakes, the brownie bar – and also workshops as the perfect team-building event.

Party Planners

All parties deserve a splendid celebration cake. From birthdays to anniversaries and graduations to retirement parties, the Bakery Company can provide beautiful bespoke cakes of the very highest standard.

SWOT Analysis

Passion, innovation and creativity are at the heart of the business, and this shows in every product and service the company offers. Unique baked products are often hard to find, and Ali focuses on offering customers life-like sculptures, stunning cakes and techniques they may have not seen before. She is also very enthusiastic to pass on her skills to others, so that they can enjoy the thrill and pride of making something absolutely fantastic for themselves.

She has also taken the time to create a gluten-free cake and brownie recipe that tastes amazing: many recipes lack the right taste and texture, and this was a problem Ali was very committed to solving. The gluten-free market is huge, and with the right marketing and approach, it is a market that could really be capitalized on.

Ali has also invested in the best equipment and in herself by taking a number of highly sought after and respected training courses.

The Bakery Company doesn’t make “cheap” or “boring” cakes. They focus on the extraordinary and unique, rather than run of the mill cakes that can be found elsewhere. In doing so, there is a slight risk of turning potential customers away, but Ali believes this will only serve to strengthen her brand and reputation as a high-class, fairly-priced cake couture company.

The Bakery Company is new in a very competitive industry. They need to ensure they stand out, and continue to develop the brand.

Opportunities

There are many opportunities open to the brand thanks to the many services and products they supply.

Ali would like to explore working with organizations such as hotels and retail stores, and feel that the brand will really appeal to the mass market, especially the Pick ‘n’ Mix Brownie selection. She will also keep a close eye on her competitors to identify any gaps in the market and customer needs that she can fulfil.

The Bakery Company’s biggest threat is the competition. Ali must ensure that the company continues to keep high standards and build its reputation as one of the best couture baking companies around.

#5 Bakery Business Plan Marketing Strategy & Implementation Section

The marketing strategy section of your business plan describes who your customers are going to be and how you plan to communicate to them the services or goods you are offering.

If your potential customers are not made aware of your business, you are not going to stay in business for very long!

Defining a marketing strategy in your business plan highlights your understanding and knowledge and emphasizes what makes your business concept compelling. It also outlines how you plan to attract and maintain a customer/client base.

• How are you planning to advertise to your market?
• What is your competitive edge?
• What is your sales strategy?

So, without further ado…

Let’s look at the following example.

Strategy and Implementation

With so many products and services on offer at The Bakery Company, the company really does solve a lot of life’s little problems. From finding a wedding cake with wow factor to igniting a creative spark at one of their workshops, The Bakery Company fulfils many different needs for many different people.

Competitors offer similar products and services, but do not focus on innovative and bespoke creations as passionately as The Bakery Company. This difference will be communicated through social media, the website, video marketing and other mediums to attract customers to the brand, especially those looking for something a little unique and extra special.

The Bakery Company offers customers stunning cakes and confectionery at a very fair price that reflects the quality of the finished product. Customers looking for cakes that are more “masterpiece” than “mediocre” will be much happier to pay more, confident that their cake is unique to them and their special event.

Pricing structure is as follows:

• Pick ‘n’ Mix Brownie Bites – Quantity/price = $2.05 per 110g bag
• Triple Chocolate Brownie Bites (Gluten Free) – Quantity/Price = $1.65 per 100g bag
• Double Chocolate Chip Brownie slab – Quantity/Price = $1.55 per 100g bag
• Big Bonkers Brownie – Quantity/price = $5.95 per 600g bag/box

Brownie & Cake Bars

Wonka Wedding Bar: $69.95 – 25 children =$2.79 per child

For the children. Alternative to party bags/wedding entertainer. A eye catching modern twist – Willy Wonka style cart serving 4 different sweet options, 1 topping sauce, and brownie bites.

$20.00 per bar & set up. Time taken 1 hr.

Cake Cocktail Bar: $225.00 for 100 guests

6 different candy/chocolate shard choices, 2 topping choices (raspberry marmalade/chocolate ketchup/strawberry salsa & gluten free brownie bites.

$80.00 per bar & set up. Time taken 2 hrs.

Celebration cakes (round): 6″ basic $30.00 – 8″ basic $40.00 – 10″ basic $55.00 –12″ basic $70.00

Simple designs added start from $10.00/elaborate designs added start from $25.00 per design on cake.

Cake sculpture toppings start from $25.00.

Sugar flowers start from $1.00 per small flower – $2.00 per medium individual flower – $3.00 per large individual flower.

Wedding Cakes

• Tiered Bakery Company Signature These are cakes offered for couples on a smaller budget, yet still want something beautiful & delicious. – per Signature cake – $40-$55 – Time taken per cake = 90 minutes
• Tiered couture cakes – prices starting from $200.00 – Costing from $40.00 – Time taken from 90 minutes upwards
• Tiered cakes – prices start from $325.00 – Costing from $70.00 – Time taken from 90 minutes upwards
• Tiered cakes – prices start from $495.00 – Costing from $100.00 – Time taken from 2hrs upwards
• Tiered cakes – prices start from $625.00 – Costing from $125.00 – Time taken from 2 hrs upwards

Cake Sculptures

Small: Prices start from $95.00 Large – prices start from $295.00

Costing from: $5.00 (small) – $20 (large)

Children’s Cake decorating/sugar sculpting classes

$ 5.95 for 1 hr class. 8 – 12 children per class = $47.60 – $71.40 per hour.

Each child is provided with a party bag. Each bag contains: 1 Bakery Company cupcake recipe. 1 cupcake/sugar sculpture. 1 Bakery Company cake character card profile. 1 balloon.

As mentioned in previous sections, much of the business will be secured by word of mouth and repeat orders. The Bakery Company will also look to maximize the potential of online marketing, using their website and social media to attract more business.

Professional photography, video marketing, and online tutorials are just some of the ways that can be used to promote the company visually. The Bakery Company will also look at publishing as much shareable content as possible to attract more likes, followers, retweets and pins.

Blogging is something very close to Ali’s heart, and this is a great way to share fun ideas, tips, recipes, event news, competitions and special offers. The company will also make full use of social media accounts such as Twitter, Facebook, Google+ and Instagram. Once they have more video content, they will also start a YouTube channel. Live streaming over Facebook might be fun too! This is a new service that Facebook has introduced and opens lots of opportunities for customers to bake along while at home, à la Jamie Oliver and Gordon Ramsay.

Email marketing may be something to look into, but the company really wants to stay away from spam emails as this will only cheapen the brand. However, they will be following up with existing customers thanking them as well as sharing special promotions with them. This will be on an opt-in basis, so as to stick to Google best practices for email marketing. The company may also explore Pay-Per-Click marketing and retargeting at a later date, and this will be handled by a marketing agency on their behalf.

Printed marketing materials will also be useful at events the compny attends.

Distribution

The Bakery Company will offer its services through its website and also face to face. Many of the services the company provides include set up at a venue, or delivery of workshops and classes. They will also offer products – such as their brownie line – through the website.

They also plan to approach retailers such as supermarkets and boutique stores to sell their range of Pick ‘n’ Mix Brownies. They will need to work on a bakery marketing plan, and how best to make, package and distribute their products. This is something that Ali is exploring now.

Milestones will be set once investment is in place. Ali would like to work closely with any investor on a mentor basis, and to receive guidance on the best direction to take the business, and how to plan milestones in the most logical way.

Competitive Edge

As mentioned previously, the company is operating in an extremely competitive market. Thanks to the creative genius of Ali and her passion for all things sweet, the company offers sophisticated, bespoke and also fun creations that simply cannot be found elsewhere. It is this passion and dedication that Ali will be looking to promote across the organization as it grows, by employing skilled and dedicated staff and ensuring standards remain high.

Reputation is everything and most business will be received via word of mouth and through repeat orders.

Unlike many other competing companies, Ali also has a product that is viable to distribute to the mass market.

Promotional Activity

The Bakery Company will use a variety of methods to market to customers including their website, social media, attending events, printed advertising, and promotional offers.

Discounts may be offered to previous customers and during potentially slower times, such as the winter wedding season.

Social media will also be very important to the brand, and the company will be communicating on a personal level with customers and followers to gain trust and get them to order and try out products.

Sales Administration

The Bakery Company wants customers to come back time and time again and to shout from the rooftops what a great experience they had with the company – whether they placed an order for a cake or booked one of the workshops. A friendly and personal approach is incredibly important, as is following up with customers to ensure they were delighted with the service offered.

The company will always reach out to customers after a sale, whether it’s with a business card or thank you email, and encourage positive feedback through social media channels. It’s that personal touch that will bring customers back to The Bakery Company over and over.

Sales will be made through the website, social media channels, word of mouth, and repeat orders. The compay will also aim to secure orders at promotional events and exhibitions. In time, they may start using mailing lists to email customers regularly with details of special events, tutorials and any other information they may be interested in.

Strategic Alliances

Not applicable.

Exit Strategy

#6 bakery business financial section.

Ensuring that you have a COMPLETE financial plan within your business plan will DOUBLE your chances of investment as well as the future growth of your business.

A lot of small businesses don’t have a financial plan and it’s essential to your long-term success and business growth.

We’ve listed here the key elements you need to have in a successful financial section:

• Initial Start Up Expenses – Especially if this is a start-up idea, it’s essential that you have a description of what you need for investment purposes.
• Sales Forecast – It’s essential to have an estimate of your monthly sales revenue as well as annual. This helps you understand your business and plan out any marketing and growth strategies.
• Direct cost of sales – Measures the amount of cash the company will have to spend to produce the goods or services sold by the company. The direct cost of sales only includes the expenses directly associated to production.
• Profit and Loss Forecast – This is a statement summarizing the revenues, costs and expenses incurred during a specific period.
• Balance Sheet – This is the financial position of the company and states its assets, liabilities and owners’ equity at a particular point in time. It illustrates the business’s net worth.
• Loan Repayment – This shows the lender or potential investor the act of paying back any monies.

So… Are you ready to look at some figures?

Three Year Projection

Three Year Projection​

Looking for more inspiration? Why not take a look through our other business plan examples:

• Ecommerce Business Plan sample
• Bar & Restaurant Business Plan sample
• Medical Center Business Plan sample
• Outdoor Activity Business Plan sample
• Advertising Agency Business Plan sample
• Boutique Business Plan sample
• Real Estate Business Plan sample

Additional Resources:

To help you even further in creating your business plan, why not check out the following articles? They will help you write the perfect plan to impress:

• 40 Common Business Plan Mistakes to Avoid when Writing your Plan
• What is a Business plan and why do you need one?
• How to Write a Business Proposal in 5 Easy Steps
• 10 FREE Business Name Generator Tools to find your perfect business name

Now, over to you...

Now I’d love to hear from you:

Are you going to start up your own bakery business or have you recently written a business plan?

We’d love to know what you thought about our Bakery business plan example.

Feel free to leave any comments below and I will be sure to answer them as soon as they come in.

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Cafe Business Plan Template

• Written by Dave Lavinsky

Table of Contents

Cafe business plan.

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their cafes. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a cafe business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Cafe Business Plan?

A business plan provides a snapshot of your cafe as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Cafe Business Plan

If you’re looking to start a cafe or grow your existing cafe you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your cafe in order to improve your chances of success. Your cafe business plan is a living document that should be updated annually as your cafe grows and changes.

Sources of Funding for Cafes

With regards to funding, the main sources of funding for a cafe are bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a cafe is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan.

Finish Your Business Plan Today!

Your cafe business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of cafe business you are operating and the status; for example, are you a startup, do you have a cafe that you would like to grow, or are you operating a chain of cafes.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the cafe industry. Discuss the type of cafe you are operating. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of cafe you are operating.

For example, you might operate one of the following types:

• Take-Out Cafe: this type of cafe doesn’t have seating (or has limited seating) and is mostly visited by customers looking to grab a coffee and/or bakery item on their way to work or elsewhere.
• Restaurant Cafe: this type of cafe is most similar to a restaurant and offers a full, sit-down menu in a nice atmosphere with a full wait staff.
• Casual cafe: also known as a corporate, student or co-working cafe, this type of cafe typically offers food and drinks from a counter with no waiters or waitresses. Patrons purchase items and consume them in the cafe, often while performing work on their laptops or conversing with friends or colleagues.
• Coffee Shop: This is a popular type of cafe. Coffee shops usually offer a selection of tea, coffee, pastries and other drinks

  In addition to explaining the type of cafe you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business? What is your business concept? What is your unique selling proposition?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new store openings, etc.
• Your business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the cafe business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the cafe industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards cafes with ultra high speed internet connections, it would be helpful to ensure your location could offer such a service.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your cafe business plan:

• How big is the cafe business (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key local suppliers in your market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your cafe. You can extrapolate such as figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The market analysis section of your cafe business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: local office workers, college students, sports enthusiasts, soccer moms, techies, teens, baby boomers, etc.

As you can imagine, the target audience you choose will have a great impact on the type of cafe you operate. Clearly baby boomers would want a different atmosphere, pricing and product options, and would respond to different marketing promotions than teens.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most cafes primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other cafes (and restaurants and/or bakeries depending on the type of cafe you operate).

Indirect competitors are other options that customers have to purchase from you that aren’t direct competitors. This includes restaurants, supermarkets and customers making coffee and bakery items themselves at home. You need to mention such competition to show you understand that not everyone in your target market will visit a cafe each day.

With regards to direct competition, you want to detail the other cafes or coffee shops with which you compete. Most likely, your direct competitors will be cafes located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What products do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

  With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to stand outside your competitors’ locations and ask customers as they leave what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior cafe products?
• Will you provide cafe products that your competitors don’t offer?
• Will you make it easier or faster for customers to acquire your products?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a cafe business plan, your marketing plan should include the following:

Product : in the product section you should reiterate the type of cafe that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, will you offer pastries, soups, items such as café latte, cappuccino, espresso or macchiato?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the menu items you offer and their prices.

Place : Place refers to the location of your cafe. Document your location and mention how the location will impact your success. For example, is your cafe located next to a heavily populated office building, or gym, etc. Discuss how your location might provide a steady stream of customers.

Promotions : the final part of your cafe marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Making your cafe’s front store extra appealing to attract passing customers
• Distributing samples outside the cafe
• Advertising in local papers and magazines
• Reaching out to local bloggers and websites
• Partnerships with local organizations (e.g., gym members get a free cup of cafe with each pastry they purchase)
• Local radio advertising
• Banner ads at local venues

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your cafe such as serving customers, procuring supplies, keeping the cafe clean, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 10,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.  

Management Team

To demonstrate your cafe’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in the cafe, coffee shop and/or restaurant business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in cafes and/or successfully running retail and small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 100 customers per day or 200? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your cafe, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say a company approached you with a massive $100,000 catering contract, that would cost you $50,000 to fulfill. Well, in most cases, you would have to pay that $50,000 now for supplies, equipment rentals, employee salaries, etc. But let’s say the company didn’t pay you for 180 days. During that 180 day period, you could run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a cafe:

• Location build-out including design fees, construction, etc.
• Cost of fixtures like chairs, tables, signage and cafe decor
• Cost of equipment like grinders, espresso machines, blenders, refrigerators
• Cost of ingredients and maintaining an adequate amount of supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your store design blueprint or location lease.

Summary Putting together a business plan for your cafe is a worthwhile endeavor. If you follow the template above, you will be able to prepare a winning cafe business plan or a coffee shop business plan. You will really understand cafe business planning, business operations, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful cafe.

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Download Now: Bakery Business Plan Templates for 2021

A bakery business isn’t that difficult to start but it comes with a lot of planning. You can’t just release all your baked goods overnight without carefully planning how you’re going to market and sell it. You will need to figure out your menu, where to get your supplies, the costing for each of your baked goods, and how to package them. You will have to jot everything down, lay the groundwork for all your needs, and set goals to meet them.

If your love and passion for baking have made you decide to put up a bakery, then you’re in the right place to figure out how to start on one. As with all other businesses out there, you will need a business plan and we’re here to help you how to make one.

Page Contents

Why Do You Need A Business Plan?

Executive summary, introduction, company description, customer focus, mission statement, company concept, market analysis, target market, industry analysis, competitive analysis, management structure, product line and services, sales and marketing, financial plan, funding request, financial forecast, operational plan, download templates.

Do you need a business plan for a bakery?

A business plan is a guideline to help you figure out what direction your business is heading and what goals you want to achieve. It’s also a great plan to present to banks if you’re looking for a loan and for potential business partners if you’re looking for investors. But most of all, you need a business plan to help yourself. It will serve as your guide on how to achieve your goals and even compute your possible profit.

By the end of this guide, you’ll be able to draft up your business plan or you can use the template we’ll provide that’s available to download below.

Start your bakery business plan with an executive summary section. This section is all about providing brief information on your business without getting all the details in. The goal of this section is to get the whole picture of what your bakery is all about at a single glance.

Just 2 to 3 sentences per category should be enough to express your ideas. You’ll get the chance to explain everything specifically in the later part of the business plan.

Imagine having a booth at a food fair with dozens of other businesses right next to you. What are the things you can put on your sign that when a customer passes by they’ll be able to figure out what you’re selling in just a couple of seconds?

That is what you are going to write in your introduction. You are going to supply information that’s eye-catching, attention-grabbing, but also sticking to the realness of your bakery.

Related Reading: The 6-Step Marketing Growth Plan for a Home-Based Bakery

Here’s an introduction example you can follow:

Quick Bites is a bakery that offers a new take on the bread scene for New Yorkers on the go. All the buns are stuffed with delicious filling, both savory and sweet to satisfy a hungry tummy in need of that quick snack that’s conveniently packaged to eat on the run.

Just by reading that example, you’ll know that Quick Bites is:

• A bakery that supplies buns with filling that is either savory or sweet.
• Located in New York.
• Catered for people looking for a quick snack.

Capture your reader’s attention by keeping things light yet informative in this part of the business plan.

Write a company description.

Every bakery business has a background. You’ll want to include how many years in the making has your bakery idea been going around and who is in charge of it. Will it be a partnership? Will you be doing the baking and managing at the same time? Putting in a little bit of your bakery’s background helps give the reader a brief understanding of what your business’s managing strategy is going to be.

The first thing on your mind when you decided on putting up a bakery is probably the menu. And though that’s quite exciting to draft up at once, you’ll have to decide on the services you’re going to offer first by figuring out what kind of bakery you’re going for.

Here is a guide to choose the type of bakery you want:

• Full service – This includes having your own space with a kitchen and baking area, a display area for your baked goods, and dine-in options with drinks such as coffee or tea.
• Take-out service – This is a type of bakery where you have a small space just to display your baked items and offer a drink or two. Customers can just line up and order your buns to go.
• Online – This type of business does not require any space. This is all done in your kitchen at home. Customers will just place their orders online and will pick them up or have them delivered.

By deciding this early on, you can have a clear image of what your bakery is going to look like and how it will operate.

Cake bakery display case.

We know what you’re thinking: everyone is your potential customer. And though that is the goal, you still need to list down your target customers so you can focus on a certain product line to sell.

Take for example Quick Bites. As mentioned in the introduction, the bakery is for those who are looking for a quick snack to eat. Therefore, their target customers are mostly working people who do not have time to sit down for a meal and are looking for a convenient yet delicious food replacement while still having the time to work.

Related Reading: 101 Creative Bakery Names You Can Use Right Now

With this focus in mind, Quick Bites’ product line of filled buns fit this category since busy people can eat their buns with one hand only so they can focus on doing other things instead.

Again, be sure to keep this short. You can add in the details later on in the Target Market section of the business plan.

Every business has a vision no matter how small it is. If you just plan to have a simple bakery up and running, you still have goals to meet. This is how businesses succeed since a mission statement allows owners and staff to be reminded of the direction they’re heading.

An example mission statement for Quick Bites would go like this:

Quick Bites’ mission is to serve a variety of freshly baked bread, particularly buns with different filling, that can satisfy a hungry tummy on the go. Our buns are nutritious and are packed with only real ingredients. No artificial flavors will be used and no preservatives are added. Our bakery is committed to making quick meals that are convenient to eat while working and we ensure that they are also healthy and affordable.

It’s time to get all the details down for your bakery’s concept. Think of it as the longer and more detailed version of your executive summary. This section is quite easy and fun since you can now list everything you’ve planned your bakery to have.

Will you be serving artisanal bread? How about puff pastries? Will you be including cakes? Will you also be offering coffee and tea? Will you be baking on the premises or will you have a commissary located somewhere? What are your operating hours?

All these things are important so list down everything you can think of that discusses what your bakery’s concept is going to be.

Learn more about Jennifer Jacobs.

At this point, you’re probably wondering why you should care about analyzing the baking industry around you when all you want is to just bake your bread and sell them.

Well, let’s put it this way: baking bread might be easy but the selling part may be a little difficult if you don’t know your target market, the bakery business trend in your area, and the competition around you.

Writing down your target market is easy since you already mentioned it above on your Customer Focus section. Just add in more details so you or anyone else who will read this will understand more about which group of people do you cater to.

Include the following in your target market list:

• Working-class or students
• Location (local office workers, neighborhood families, etc.)

To ensure your bakery is going to be a success, analyze the trend surrounding this type of business in the area you’re planning to open this up. For instance, if you’re like Quick Bites whose target market is the working class, then you’ll need to check the area around your planned bakery if this is a place where several offices are located.

You may also include a study on whether or not people like artisanal bread or healthy bread. This can help you check whether your planned menu can sell successfully or not.

For online bakery businesses, you can focus on the factors that people tend to look at when they’re ordering food online. This includes:

• The preferred number of days for pre-orders.
• Delivery times and rates.

You’ll have to come to terms with the fact that you’ll have competition once you open your bakery business. That’s not entirely a bad thing. Having competition can help you analyze the prices for your baked items and it would also draw in interest from other potential customers. The trick here is to be better than the rest and that is why you are doing this business plan so you can succeed when you start selling your items.

If you are putting up a physical store, list down the bakeries surrounding your potential location. If you are an online store, you can also compare other online bakeries in your neighborhood.

You may even do a comparison. Write down the top three business names of your competitors, their strengths, and their weaknesses, and see where your bakery stands out.

Knowing the roles each person plays in your bakery business is important. It sets a clear and distinct understanding so that no arguments will happen in the future regarding their duties. This is particularly helpful when you’re in a business with a partnership so there are specific roles and duties indicated per person.

But even if you’re running the business on your own, it’s still important to write it all down so you’re aware of what else you need to do and if you need to delegate some tasks.

Related Reading: Learn how a Culinary Grad Built a $26k/Month Pastry Shop.

You can divide these into the following:

• Management Team – These are the people who will be running the business, those who will be in charge of sales and marketing, bookkeeping, filing and processing of legal documents, research and implementation, and ordering of supplies.
• Bakers – These will include the people in charge of baking your products.

For a bigger bakery with dine-in capacity, you may include these as well:

• Servers – These will include the people who will prepare the food to serve such as reheating bread or assembling them.
• Baristas – If your bakery is serving coffee, these are the people in charge of working the espresso machine.

However, some bakeries have their servers work as baristas at the same time so it’s important to state this clearly so your employees will know their duties.

• Cashiers – These people are in charge of manning the counter for any purchases.
• Clean-up Crew – These will include people who are responsible for cleaning the tables, dishes, and everything else that you need to sanitize your bakery.

Cake pops are a favorite at bakeries.

This section is the moment you have been waiting for. This is where you’ll place all the products you are going to offer in your bakery. Be it puff pastries, sandwiches, or artisanal bread, just be sure to write them all down. Be specific and indicate the prices as well.

Aside from your product line, you can include other services you wish to offer. Do you do wedding cakes? How about customized cakes? Would you be willing to supply bread to other businesses? Are you open to catering? Putting this all down in this section will help you organize your thoughts so you can put them into action carefully.

A very helpful way to start marketing your bakery is to combine your target market and product line to bring attention to what you’re selling. For Quick Bites, since their target market is for people on the go, they can push how convenient their buns can be eaten while they’re walking on the street. They can also advertise the many flavors of buns they can offer from sweet fillings such as custard or jam to savory ones such as pepperoni, cheese, or vegetables.

Social media is also a great way to market your business. By putting up nicely photographed images of your bread and knowing the right trending hashtags to use, you can capture a huge number of followers.

But if there’s one marketing plan that’s overlooked by many, it’s taking advantage of the sense of smell. Freshly baked bread is pleasing to the senses and can entice customers to check out what you’re baking. So if you have a physical store, use the delicious smell of your baked bread by letting it waft out into the streets to lure passersby. You’ll be surprised just how fast people will flock to your bakery when you allow the scent of your baked goods to fill them.

Red rose cupcakes.

We’re now on to the nitty-gritty part of the business plan. This includes where you’re going to get the money to fund your bakery and forecast the expenses and possible profit you’re going to make. Why is this important? It’s so that you’ll know early on if the concept, product line, and proposed services you’re going to offer in your bakery is profitable or not.

Keep in mind that you don’t really need a lot of money at all if you’re just starting your bakery business. As previous guest on the podcast Jennifer Jacobs explained , she spent the first few years operating a home-based bakery business. Jennifer operated her business for years while holding down a full-time job, before opening the doors to her first retail space. This is the path she recommends for other food entrepreneurs too.

The only thing you need to focus on this section is to ask yourself, where are you going to get the money to start your bakery? Whether it is a small online business wherein you’re the only one who will be doing the baking and selling, or it’s a big bakery with dine-in options and lots of staff, you have to be clear where to get the capital for all of this.

Getting a loan from the bank or inviting investors are a few options you can choose. This is also the reason why you’re making this business plan to convince them to give you a loan or to join in funding your bakery.

Bakery Food Truck.

You will need to list down all your planned expenses for your bakery. For a simple online bakery business, this includes:

• Refrigerator
• Packaging Materials
• Ingredients (flour, sugar, salt, butter, etc.)

If you are planning to open a physical store with dine-in options, you’ll also have to include these:

• Store signage
• Bread display rack
• Point-of-sale system
• Chairs and tables
• Trays, plates, and cutlery
• Espresso machine

You’ll also need to spend on your advertising materials whether these are in social media or print. The bottom line is, listing down all your proposed expenses can help you forecast the amount of money you need to start your bakery. According to professional bakers we interviewed for this piece, starting up a bakery costs $100,000 and $750,000. With these numbers, you can then set up a budget and start looking around for affordable equipment for your bakery.

Aside from your expenses, you’ll also need to do a break-even analysis so you know if you’ll be able to receive any profit from your proposed product line and services.

Attention Bakery Founders: Download our Food Business Startup Kit for Startup Templates

Writing all your plans down is one thing but to set up a timeline for your operations is another. This sets the gears in motion for when you plan to execute your business.

Do a simple timeline following this example:

Date Plan [Insert Date Here] – Finalize the design and layout of the bakery and secure all rental documents such as permits and business registration.[Insert Date Here] – Start construction.[Insert Date Here] – Hiring and training of staff. You may also start advertising your bakery’s products and opening date.[Insert Date Here] – Start operations for the bakery.[Insert Date Here] – Achieve goals and reach break-even.

This is an example of a physical bakery store. For online bakeries, your timeline should be shorter and simpler.

This section is where most of your documentation to back up your business plan is included. You can also add photos of your bakery’s layout, your proposed design packages, and payroll plans.

Here are templates and real bakery business plan examples you can use as inspiration to setup your own business structure. These are available for download in PowerPoint, Google Docs, and PDF files.

• Bakery Business Plan PowerPoint  
• Bakery Business Plan Google Docs 
• Bakery Business Plan PDF
• If you are planning to open a physical store, be sure to delegate tasks. It’s fun to be hands-on with everything going around your bakery but you can’t manage the counter and be the baker at the same time. So appoint specific people for different roles but also have them multitask so you don’t hire too many people.
• Plan your menu accordingly. You do not want to bake a lot of bread and let them go to waste at the end of the day. Study the foot traffic around your area as well as your possible bestselling item. For instance, if Mondays are the busiest, then maybe you can double up on your recipes for a certain bread that everyone seems to like best. But you can slow it down on Tuesdays and focus on other items instead.

Don’t be intimidated in starting up your bakery and making this business plan. The point of the business plan is that it’s supposed to help you go through the finer details of your bakery. If the whole bakery business plan seems too complex for you then you just failed in understanding the purpose of it. It has to be easy to read and understand because it will serve as your guide.

Where are you planning to open your bakery? We’re just as excited as you are for this new adventure and look forward to hearing about the plans you put in place. Don’t forget to sign up for our free Food Business Startup Kit for exclusive interviews with bakery founders.

Want to start your own food business?

Hey! 👋I’m Brett Lindenberg, the founder of Food Truck Empire.

We interview successful founders and share the stories behind their food trucks, restaurants, food and beverage brands. By sharing these stories, I want to help others get started.

If you liked this story, sign up for our newsletter that includes our food business startup kit and most popular interviews sent straight to your inbox.

Know someone interesting that should be interviewed on the website? Tell us about them here. 

About the Author: Brett Lindenberg

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How To Start a Coffee Shop Bakery (12 Easy Steps)

Start a Coffee Shop Bakery (12 Easy Steps)

How To Start a Coffee Shop Bakery

Easy Steps to Starting a Coffee Shop Bakery

There are not many things that go together better than delicious coffee and a fresh, warm muffin.

Coffee and bakeries go together like milk and cookies. They complement each other nicely on our palates and also make great business partners!

A coffee shop bakery is a popular business concept that is sure to be worthwhile in your neighborhood.

In just a minute, we will provide you with the steps to start a coffee shop bakery. These steps will help you start your planning efficiently and cost-effectively.

First, we want to discuss the benefits of starting a coffee shop bakery, which we list below. After that, we will provide you with the steps you may want to open a coffee shop bakery.

Benefits to Starting a Coffee Shop Bakery:

• Cost-effective
• Better quality control
• Flexibility in menu choices
• Attract more customers

This means more profits for you!

Over the long term, the savings could be significant. With wholesale bakery orders, you're paying anywhere from 30% to 100% on items (because those other bakeries need to make a profit, too!) In baking the goods yourself, you must pay for labor, ingredients, equipment, and various permitting. However, even with those costs, you will earn more money over time.

Offering your baked goods is exceptionally convenient for you. You no longer have to depend on another wholesale bakery or delivery service to deliver to your coffee shop on time.

It's more convenient for you!

It is a regular occurrence for coffee shops to be waiting on their baked deliveries only to miss out on their morning sales. Nothing beats more convenient and fresher baked goods than items baked in-house.

The ability to control your food's taste and quality will positively impact your entire brand, product offering, and customer service. For example, when you order from another bakery, you may experience inconsistent quality. By having your bakery operation in-house, you will be able to manage your quality in a manner that suits your expectations.

Operating your coffee shop bakery always provides greater flexibility to your customers in offering what they want. For example, you may get other suggestions from customers as to what items they would like. This flexibility allows you to keep your existing customers while attracting new customers every day!

Steps to Open a Coffee Shop Bakery:

The following lists the ten steps to start a coffee shop bakery:

1. Develop your vision and concept

2. Write a coffee shop bakery business plan

3. Scout out great locations that suit your target market

4. Determine what items you will bake

5. Determine your budget costs

6. Know your health department regulations

7. Understand what your buildings department requires

8. Choose the right coffee shop equipment

9. Find Good Contractors for your buildout

10. Hire excellent staff and baristas

11. Come up with a good marketing plan

12. Host your coffee shop bakery grand opening!

Now that we've listed the steps to starting a coffee shop bakery let's discuss them in greater detail below.

The Ultimate Guide to Starting a Coffee Shop & Bakery

Open a Coffee Shop Bakery Successfully

1. develop your coffee shop bakery concept and vision.

Will the smell of fresh bread, croissants, and muffins fill the air of your coffee shop bakery? Will you be sending customers home with fresh baguettes or wonderful chocolates?

Whatever your vision and concept are, it will be your road map to starting the successful coffee shop bakery of your dreams.

First, consider writing all the different and complete thoughts you have about your bakery—everything from the names you would consider using to your menu option and location.

Consider what type of experience you want your customers to have. Yes, you want them to buy your coffee and baked marvels, but you also want them to have an experience too.

Settle in on more specific items of your coffee shop and develop an overall concept. In a nutshell, detail what your coffee shop bakery will be all about.

Once you have your vision and concept down, other essential things will start to take shape.

2. Write a Coffee Shop Bakery Business Plan

With your coffee shop bakery concept in hand, the next thing you will want to do is to have a well-written business plan.

Starting a coffee shop bakery is a significant undertaking with many parts, and therefore should require considerable planning.

There are many benefits to writing a coffee shop business plan. The most important benefit is the ability to articulate your vision. The vision and concept answer the “WHAT” type of business you are starting. The business plan answers the “HOW” you will get it done.

Writing a coffee shop business plan can be challenging. But if it's done right, it will help save you tons of time and money. In your coffee shop business plan, you will want to articulate some critical elements of your business.

Detailed sections of your business plan will include your concept, vision, and mission. The name of your business, menu, and location. It will specify your target market and marketing plan. It will also detail your budget, financials , and plan for obtaining funding.

For more information on writing your coffee shop business plan, read our article, How to Write Your Coffee Shop Business Plan .

3. Scout for Locations

No secret having an excellent location will benefit your coffee shop bakery sales. In fact, without a good location, your business will struggle to attract enough customers to make ends meet.

With such massive importance as choosing the right location, we recommend that you start early in scouting out the perfect coffee shop location.

Choosing the right coffee shop location means considering a few essential variables. First, ask yourself whether the geographical location is a good fit for your target market?

You will also want to determine if the location and the specific property are appropriately zoned for your business.  Does it have enough foot traffic? In other words, are there enough hungry mouths in the area to make your bakery work?

Finally comes the physical space itself. While the actual space may be in a perfect geographical area, it might not be ideal for your business. For example, how much time and money will you need to invest in the buildout to make a functioning coffee shop bakery? Is there ample space? Does it have a kitchen, bathroom, and enough floor space or outdoor seating? Also, is the area accessible by car and on foot?

Start your location search early. First, determine the geographic location that makes the most sense for you and your life. You may also want to seek the help of a licensed commercial broker to help find a spot that is available and walk you through the leasing agreement.

4. Determine What Items You Will Bake

Decide on your coffee shop bakery menu. If you are a baker, you probably already know what items you would love to bake and share with your community.  While this may seem easy, it may require a little research and market analysis.

Before opening her store, I recently met a coffee shop owner who visited the neighborhood with different samples of her baked creations.

She spent hours baking and testing and figuring out what items her neighbors loved. Not only did this provide some great information, but it also endeared her and her coffee shop to the locals.

Also, keep in mind that what you love may not be what your neighbors enjoy. Nevertheless, it would be best to develop an appealing and manageable menu for your business. Your coffee shop bakery menu will essentially define your coffee business. Take the time to determine everything you'd like to offer your customers.

5. Determine Your Bakery Budget Costs

Your coffee shop bakery concept, menu, location, and equipment will begin to shape the budget you will put together.

Before spending any money or obtaining funds for your coffee shop bakery, you will want to develop a comprehensive budget that details how each dollar will be spent.

A detailed budget will help you plan and prepare you to address the most critical element of your coffee shop bakery business: money.

Your budget will not only include the money it takes to set up your business, pay for a location, and your equipment, but also have the needed cash flow to pay for inventory, payroll, and other items.  

For more information on developing your coffee shop budget, please read our article, Planning Your Coffee Shop Budget.

6. Know Your Health And Buildings' Department Regulations

Every state and local government has its health agencies to play a role in setting up your coffee shop bakery. The health department's part is to prevent foodborne illnesses for you, your staff, and your customers. That means that they want to ensure that you have everything in place to offer clean food and service.

Your local health department will impact everything from your materials, equipment, and buildout.

You probably already understand that an outbreak of illness could be devastating to the health of your customers and staff. However, you don't want to be held liable for improper handling of food. Staying within your health department's guidelines will make your coffee shop bakery business much safer.

While your health department needs to sign off on your kitchen setup, they will continue to play an ongoing business role. For example, you can expect the health department to drop in for scheduled and unscheduled visits to ensure that you and your staff are practicing good health and safety procedures.

Your building department is another key player in opening your coffee shop bakery business. It would help if you learned early on what requirements and codes are before your buildout.

7. Choose the Right Coffee Shop Equipment

Now that you know what's on the menu, you can look at the equipment you need. Depending on the size and scope of your coffee shop bakery, you will have to get several essential equipment items, such as an oven, refrigerators, prep tables, mixers, storage racks, cooling trays, and baking pans, among others. These are the traditional pieces of equipment that many bakeries have, but you will have to get those essential items to make your recipes.

In addition to your baking equipment, you will need coffee shop equipment to serve your fantastic coffee. These would include choosing the right espresso machine , pour-over devices, coffee grinders, pitchers, and ice-makers.

Your coffee shop equipment should be commercial-grade and food-grade compliant to meet the health codes. Commercial grade equipment is often considerably more expensive than equipment for home use but is made of heartier materials that can withstand heavy usage.

For more information on choosing the right coffee equipment, read our article, Coffee Shop Equipment You Need .

8. Find Good Contractors To Build Out Your Coffee Shop Bakery

We strongly suggest that you put your feelers out there for contractors. These contractors will help you with the actual buildout of your interior space. For example, depending on your lease space, you may need to build a coffee bar, add a wall, install electrical units, and improve ventilation. Unfortunately, honest, knowledgeable, and reliable contractors may be hard to find, so start early.  

9. Hire Amazing Staff and Baristas

You probably want to hire exceptional baristas employees to represent your business with your customers.

As a coffee shop bakery owner, you know how important it is for your employees to be honest and reliable. Your baking operation may begin long before your first customer comes in for a cup of coffee.  It takes a dedicated person to show up at 3 a.m., start baking fresh bread and pastries before you open. Pulling espresso shots and serving your early-morning customers with a smile will make all the difference in your day-to-day operations and profits.

The quality of your staff starts with you. You have to make significant hiring decisions based on reliability, honesty, trainability, and personality. So start your search early for a great team – baristas, bakers, chefs – and cultivate employees who would love to work for you.

10. Come Up with a Good Marketing Plan

Standing out in your community requires you to think ahead to develop a good marketing plan. Promoting your coffee shop can lead to greater sales, greater brand awareness, and better market positioning.

Start with developing your logo and branding. Once you have your logo, you can use it to create fun merchandise products like t-shirts, mugs, and of course, slap it on your cups and coffee bags. You will also want to create a website for your coffee business and maximize your social media engagement.

While everyone likes to flock to social media sites, having your company website is essential because it serves as the mothership of your online presence efforts. Additionally, you don't want anyone else to hijack your company's name and web presence, either! Finally, you will want to reach out to local food and coffee bloggers and introduce your business to expand your community outreach.

For more information, please read How to Promote and Market Your Coffee Shop.

Related Coffee Shop Bakery Questions:

Is a coffee shop bakery business profitable.

Yes. A coffee shop bakery can be profitable. But the revenue you bring in will depend on some essential factors. Fortunately, many of these factors are under your control.

An adequately managed coffee shop bakery with healthy sales can be highly profitable. However, like a traditional coffee shop, a coffee shop bakery will need to focus on its sales, average ticket price, and costs.

For more information how the profitability of a coffee shop business, read our in-depth article, How Much Does a Coffee Shop Owner Make?

How much does a small coffee shop bakery cost?

Many factors influence the cost of a coffee shop bakery. These include your location, menu options, and concept. A big part of the initial costs will be from the actual site, buildout, and bakery and coffee equipment.

For a detailed article on the costs of starting a coffee business, read How Much Does it Cost to Start a Coffee Shop?

How much space do I need to start my coffee shop bakery?

Your need for space depends on a few factors when starting a coffee shop bakery. The first is volume. How many muffins, cakes, and croissants do you plan on baking every morning? The second factor in determining your space is figuring out what type of coffee and bakery equipment you need. For example, will you need large prep tables, cooling racks, and multiple ovens and refrigerators?

Finally, what spaces are currently available in the area you would like to set up your business? If your coffee shop bakery is in the perfect location but not as big as you want it to be, you may have to decide to reduce your capacity.

The truth is that you don't need a lot of space, but you do need enough to provide for your equipment, storage, work area, and customers.

Steps to Starting Your Coffee Shop Bakery

As you can imagine, there are essential steps to starting and launching your coffee shop bakery.

But it can be a fun and financially rewarding challenge. We've covered much ground, so I will summarize how to start a coffee shop bakery in the list below:

• Develop your vision and concept
• Write a coffee shop bakery business plan
• Scout out great locations that suit your target market
• Determine what items you will bake
• Determine your budget costs
• Know your health department regulations
• Understand what your buildings department requires
• Choose the right coffee shop equipment
• Find Good Contractors for your buildout
• Hire amazing staff and baristas
• Come up with a good marketing plan
• Host your coffee shop bakery grand opening!

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Based in Seattle, Washington, USA, Coffee Shop Startups is dedicated to providing you with the most relevant information on how to start a coffee shop business successfully.

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Popular Springfield café and bakery expands to Gasoline Alley

• Updated: Apr. 02, 2024, 1:37 p.m. |
• Published: Mar. 30, 2024, 5:50 a.m.

Originally starting in what Teri Skinner calls a "closet" Nosh's reputation spread by word of mouth and the business expanded into a much larger restaurant. Douglas Hook / MassLive

• Dallas Gagnon | MassLive.com

Three years and $250,000 in renovations later, the much-anticipated one-stop-shop, The Urban Food Brood of Springfield, has finally added the last piece of its indoor market puzzle.

While opening a second location for Nosh Restaurant and Café in Gasoline Alley was always part of the plan, it wasn’t until earlier this year that the café would soft-launch at The Urban Food Brood — a collection of local shops featuring a butchery, coffee and espresso bar, and café.

• Read more: Butcher, baker and coffeemaker all under one roof at Urban Food Brood in Springfield

The 250 Albany Street location currently offers five core sandwich options and a rotating list of select pastries. Nosh owner Teri Skinner said she plans to gradually expand The Urban Food Brood to include a full bakery.

“We’ll be doing breakfast and lunch,” Skinner said. “It won’t be exactly what we’re doing downtown, but it will have a similar eclectic feel. Just good food.”

Nosh offers fresh-baked bread, daily.

In addition to expanding its pastry offerings, Nosh at The Urban Food Brood will soon feature “some interesting combinations like yogurt bowls.”

Gasoline Alley guests can currently order breakfast sandwiches like a classic egg and cheese on homemade bread, or signature Nosh items like the Southwest Sammy — featuring avocado, jalapeño, onion, chipotle sauce, and cheese.

Tessa Lombardi-Williams, The Urban Food Brood Nosh employee, said the Southwest Sammy is among two of the café's most popular sandwiches, with the Maple Craze being the other.

• Read more: Closet space to full-blown operation: Nosh expands in downtown Springfield Marketplace

The Maple Craze features fresh butchered bacon from The Urban Food Brood ’s Corsello Butcheria , eggs, cheese, homemade maple butter, all piled on Nosh’s homemade bread.

Urban Food Brood offers locals a place to hang out with a cup of locally roasted coffee, homemade bread from Nosh and an opportunity to explore local artisan products. Dallas Gagnon, MassLive

Nosh ’s baking operations have been based in The Urban Food Brood kitchen since mid-February, supplying bread for its flagship location at 1341 Main Street.

“The bakery is treating Nosh downtown as a client - I wanted that piece to be secured,” Skinner said. “We are just waiting on a few final things before we open fully. I want to make sure it’s all dialed in before we do a hard-launch.”

While Nosh has always had “a pastry program,” Skinner said it hasn’t had a chance to expand until now as the downtown location doesn’t have “a sophisticated display case,” the way The Urban Food Brood does.

Guests have the option of sitting at a large dining table for socializing with others or using the space to sprawl out their work. Dallas Gagnon, MassLive

A long time coming

The Urban Food Brood first debuted in 2023 as the brainchild of local business owners: Skinner, of Nosh , Tim Monson of Monsoon Roastery and of Jack Wysocki Urban Artisan Farm .

At that point, Nosh had been established for seven years, making its own debut in downtown Springfield back in 2016 .

• Read more: Which food trucks will be at the Greenway in Boston this year? Nine are new

“It’s definitely been about three years,” said Skinner on bringing Nosh to The Urban Food Brood . “I think we started coming up with this idea at the end of the pandemic.”

For those ordering caffeine, visitors have the option of grabbing a mug for dine-in or ordering a cup to-go. Dallas Gagnon, MassLive

While other businesses opened their doors in August 2023, Skinner said Nosh opened later as it “ran into some logistical issues,” and had to build out an entire kitchen for the new space.

Monson of Monsoon Roastery describes The Urban Food Brood location a “bohemian, industrial, oasis,” adding that he fell in love with Gasoline Alley in 2018, prompting him to open Monsoon Roastery in another section of the alley shortly after.

“There is so much art and creative space in this industrial place in the city,” Monson said. ”It’s the perfect place for us to call home.”

• Read more: Construction for new Food Hub headquarters begin next week at Worcester’s Union Station

He said guests can expect to find a café with the best parts of a local market.

“The space itself is full of beautiful colors, art, local gifts and artisan goods,” Monson said. “We tried to create a space you can come by yourself to get some work done, or sit down at a communal table and maybe meet somebody new.”

Nosh's jalapeño-cheddar rolls in the making. Dallas Gagnon, MassLive

Nosh baker and long-time employee, Amanda Krzynowek, described The Urban Food Brood location as a “very laid back environment,” and “a nice place to hang out to do your homework or work.”

Skinner said the businesses involved tried to create an atmosphere where “if you sit down in the dining room and look around,” the businesses look like storefronts, and the dining area is a town center or common area.

• Read more: Puerto Rican restaurant Las Kangris opens in Springfield

Monson said Skinner took “a leap of faith,” when he asked her to join the business endeavor at The Urban Food Brood.

“She added her own space and we wanted to do that here... Nosh has a full service bakery here and will facilitate breakfast and lunch,” he said. “We created a space with other businesses with a magnitude greater than we could have ever achieved as just coffee roasters.”

Monson said Nosh cares “just as much about their food as we do about our coffee - and that translates to the other businesses as well.”

“What we have is a space where people are producing the very best of what they do. Nothing about The Urban Food Brood is subpar.”

For updates on progress and new menu offering for Nosh at The Urban Food Brood, follow Nosh on Instagram .

Nosh, 250 Albany Street location

Tuesday through Friday, 7 a.m. - 2 p.m.

Saturday, 9 a.m. - 3 p.m.

Nosh, 1341 Main Street location

Tuesday through Friday, 8 a.m. - 3 p.m.

Saturday, 9 a.m. - 4 p.m.

Urban Food Brood businesses

Nosh Café and Restaurant , café and bakery

Monsoon Roastery , coffee and espresso bar

Corsello Butcheria , butcher

Wicked Whisk , plant based pastry shop

Happy Man Freeze Dried , all things freeze dried

Rocka Docka , pastry shop offering vegan and gluten free options

Urban Artisan Farm - hydroponic food production

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Colorado News | Welton Street Cafe prepares to reopen as…

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Colorado news | power outages expected through monday after 150,000 xcel customers lost service in colorado, colorado news, colorado news | welton street cafe prepares to reopen as denver’s historically black business corridor fights to retain its legacy, beloved family restaurant seeks to reestablish itself in five points’ struggling business district after 2-year closure.

It would be two hours before a cook dropped the first strip of catfish into a fryer boiling hot grease. Two hours before another cook poured sticky honey hot sauce over a pile of chicken wings, or packed steaming collard greens into a small plastic tub for takeout.

But there stood Melody Lynch, waiting patiently outside the door of the building where the owners of the shuttered Welton Street Cafe were holding one of their occasional pop-ups in mid-March, this time in honor of Black Restaurant Week.

Lynch arrived extra early to guarantee herself a box of the cafe’s “honey hots” — juicy chicken wings coated in a sweet, spicy sauce that’s a family secret recipe.

“Their food is beyond description, so every minute is worth it,” Lynch said of her wait that Sunday. “If you can catch them when they’re cooking, it’s a hot ticket.”

Welton Street Cafe, one of Denver’s oldest Black-owned restaurants , closed its doors at 2736 Welton St. on March 12, 2022, following a dispute with the business’ landlord. Since then, the Dickerson family — six of them own and work at the cafe — has labored to reopen in a new location one block down the street in the city’s Five Points neighborhood.

The Dickersons have navigated city permitting, negotiated with landlords, filled out loan applications and overcome problems with contractors as they try to get back in business in a historically Black neighborhood that’s seen gentrification accelerate in the past decade.

Their path to reopening reflects the entire Welton Street corridor, a 12-block stretch from Broadway to North Downing Street that was once a bustling strip for Black entrepreneurs and is now still waiting for its comeback.

Black people began moving to the neighborhood in the 1870s when southern railroad workers settled there and, by the 1920s, 90% of Denver’s Black residents lived in Five Points, according to a  Denver Public Library history . Up through the 1950s, Five Points was known as a cultural and entertainment destination because of its jazz and blues nightclubs.

Since the arrival of the pandemic in 2020, though, commerce along the corridor has slumped, with multiple businesses closing or relocating. The historic Rossonian hotel is still shuttered even after announcements promising a revival. Old buildings remain boarded up with no assurance that renovations are coming anytime soon.

And tension between a high-profile Black developer and some of his Black tenants has led to bitter feelings and litigation as they debate what it means to hold onto the corridor’s history.

“When you walk down Welton Street during the day there is no heartbeat,” said Fathima Dickerson, one of the Welton Street Cafe’s owners. “There is no pulse. It’s just so hollow.”

In a neighborhood where housing demographics shifted years ago, someone needs to “ring the alarm” that Welton Street is losing the last of its Black culture, she said.

“Preserving Welton Street Cafe is preserving the culture of the neighborhood,” Dickerson said.

“Part of the fabric of Five Points”

The Dickersons opened the Welton Street Cafe in 1999, but the family has operated restaurants in the Five Points neighborhood since 1986.

Flynn Dickerson, the family patriarch, and Amona Dickerson, the matriarch, moved to Colorado from St. Thomas in the U.S. Virgin Islands as newlyweds with a dream to establish a restaurant.

The couple’s first offering, Caribbean Fast Food, became a hit as people lined up for handmade pates — hand-held pastries stuffed with meat, vegetables or fruit.

“We were doing these turnovers with rolling pins,” Flynn Dickerson said. “That was hard. We were having nightmares about pates.”

Over the years, the two have operated eight restaurants in Five Points and Aurora, maintaining a business partnership even after a divorce. They’re self-taught in the restaurant industry. But Welton Street Cafe would become their sole restaurant with the parents and four of their children as part of the ownership and labor force.

Cenya Dickerson, one of the sisters, gave up a teaching job in 2019 to join her family at the restaurant. She wanted to help her aging parents maintain the family legacy.

“This is our lifeblood,” she said. “This is how we live.”

Welton Street Cafe’s presence in Five Points was almost like something out of a movie, a throwback to small-town diners where the waitstaff knew which customer was related to another, how many children they had and when to sing Stevie Wonder’s “Happy Birthday” on someone’s special day.

The line to get a table on any given day might have included a University of Colorado Buffaloes football player, a funeral home director or a local politician. It was the kind of place where the owners would recognize two ne’er-do-wells in line and tell the server to ask them to pay upfront for an order — and then that same night send home a free plate of food with another customer who was going through hard times.

“The Welton Street Cafe and the Dickerson family are part of the fabric of Five Points,” said Norman T. Harris, executive director of the Five Points Business Improvement District . “You have to experience it to understand it, but it’s a place where you go and it means more than a plate in front of you.”

Fathima Dickerson, the face of the business , often greets customers by calling them family or friend.

At the family’s March pop-up, she would be firm one minute, yelling at customers to straighten the line along the sidewalk, then smile and tell two teenage girls, “I might put you to work if you get too close to me. I just want to feed you.”

Before it closed, Welton Street Cafe had become the last soul food restaurant along the corridor. And in the two years since, the Dickersons’ food has been missed.

Joshua Graham works late nights on the security crew at Cervantes’ Masterpiece Ballroom, a live music venue on Welton Street.

On a cold night in January, Graham called Fathima Dickerson to ask what she was cooking at home. He missed the cafe that much.

Dickerson asked whether he wanted some of her leftovers. He did. So she packed up a steak, baked potato and broccoli and delivered the food to Graham.

“I went to work on the plate right then and there,” he said. “It was sooo good.”

Graham was appreciative of his friend and her food. And, yes, he paid for the meal.

“It just shows her love for her community and how much she loves to feed people and what feeding people does for her body and soul,” he said.

It takes money — a lot of money

But a deep love for food and community can only take a business so far.

The COVID-19 pandemic was rough on Welton Street Cafe and the entire Welton Street corridor.

When most of Denver shut down in March 2020, the Dickerson family immediately switched the cafe to a take-out restaurant. But the number of customers dipped as people stayed home. Some days, employees didn’t want to work out of fear of the coronavirus.

“Welton Street was like a ghost town,” Fathima Dickerson said.

Before the cafe could fully recover from the pandemic, the Dickerson family’s relationship with their landlord, the Flyfisher Group , fell apart. The Dickersons were forced to close their restaurant and vacate the building.

Fathima Dickerson is reluctant to talk about how that business relationship collapsed. “I don’t know what to say about it,” she said.

But her father, Flynn Dickerson, said Flyfisher’s chief executive officer, Matthew Burkett, wanted to become an investor in Welton Street Cafe and asked the family to give him a 40% stake in the business.

“Why would I put 40 years into a business and then give you almost half of it for nothing?” Flynn Dickerson said. “We didn’t owe him anything.”

Burkett, in an interview with The Denver Post, declined to discuss his business dealings with the Dickerson family. He said he wishes them well as they work to reestablish the cafe in a new location.

“I hope they’re able to reopen so we can have another outwardly facing business on the corridor,” he said.

Opening a retail business, restaurant or bar comes with enormous upfront expenses.

In the commercial leasing world, a tenant is responsible for any renovations, remodeling or redecorating. If the building needs a new heating and air conditioning system, that’s on the tenant. If tenants want to build walls to create separate rooms, they pay for it. Need a new ventilation hood in the kitchen? It’s on the business, not the landlord.

Burkett said it can cost $500,000 or more to get a building into shape for a new business.

He said he spends money to keep his buildings up-to-date and his 75% occupancy rate shows it. But one of the problems along the Welton Street corridor is that rental spaces are in such disrepair that few people who want to open a clothing store, book shop or other small retail business can afford the startup costs or receive loans to pay for them.

“If you’re going to do it like I’ve done it — that’s equity capital,” Burkett said. “That’s not bank money going in there. That’s your real money that you’ve earned somewhere else and then came back and sunk back into this neighborhood.”

Burkett, who describes himself as a “serial entrepreneur” with business interests around the world, lives in Five Points and owns multiple buildings on Welton Street, although he would not say how many. He also has stepped into the hospitality sector, opening two restaurants on Welton; his brunch spot, Mimosa’s, has been open since 2021 while his dinner restaurant, Moods Beats Potions, closed in July 2022 after a year because it wasn’t making money.

“It is not easy,” he said of the restaurant business. “You need some luck. You need great staffing. You need a great customer base. Most businesses don’t make it. There’s only a fraction that get to three years and even a smaller few that get to five years. It’s tough.”

Souring relationships

When Burkett bought his first building on Welton Street more than five years ago, it was seen as a positive sign for the neighborhood’s legacy — a Black investor was going to reclaim spaces from white owners.

On Welton Street Cafe’s 20th anniversary, Fathima Dickerson told The Post the family felt that having a Black landlord would offer a break from sudden rent hikes.

But in the years since, as Burkett has bought up more buildings, his relationship with others in the neighborhood soured, with some tenants publicly criticizing his business dealings.

Agave Shore, a Black-owned taco restaurant that leases space from Burkett at 2736 Welton St., is one of them. LaTasha Goins, co-owner of the restaurant, said she could not discuss their troubles with Burkett because of ongoing legal challenges.

In 2021, Burkett filed an eviction lawsuit against Agave Shore. That was settled and the restaurant continued operating in that space.

Agave’s owners told BusinessDen in 2022 that Burkett pressures his tenants to give him ownership stakes or tries to drive them away.

But Agave Shore has run into more recent trouble with the city, which has led to additional legal issues between the business owners and Burkett.

In February, a Denver County Court judge declared the restaurant a public nuisance after bartenders sold alcohol to minors during three undercover Denver police stings. The judge ordered Agave Shore to pay a $2,000 fine and closed the building for three years. (The restaurant’s website says Agave Shore is temporarily closed and “opening soon.”)

But that three-year closure also ties up Burkett’s property, according to the judge’s order.

Neither Goins nor Burkett would comment on the ongoing legal problems surrounding the public nuisance order.

Ryan Cobbins, who owned a coffee shop on Welton Street that went out of business in December 2022 , said he fell out with Burkett after they became business partners.

Burkett and Cobbins signed a deal that gave Burkett 40% ownership in the business, Coffee at the Point. Cobbins also agreed to help manage other hospitality interests of Burkett’s.

But in March 2022, two entities owned by Burkett — Five Points Coffee LLC and F&B Three LLC — sued Coffee at the Point for breach of contract. The coffee shop was ordered to pay a $45,042 settlement.

Burkett declined to discuss Coffee at the Point, citing ongoing legal issues.

Cobbins said he and Burkett had been friends and he thought they could form a partnership that would lead to a renaissance on Welton Street. Instead, their relationship fractured.

“Long story short, I think my values and Matthew’s values misaligned,” Cobbins said.

Cobbins said the coffee shop business already was struggling before the partnership. Traffic through the corridor had slowed — along with sales — since the pandemic and Denver’s rising minimum wage meant he needed to sell more coffee just to break even. He also said he started experiencing staffing problems.

In the end, it made sense to close shop, he said.

“It’s been an interesting journey,” Cobbins said.

Waiting on the Rossonian

Perhaps the most notable empty building on Welton Street is the iconic Rossonian Hotel — once a crowning jewel of the neighborhood that hosted performances by famous blues and jazz musicians such as Billie Holiday and Louis Armstrong.

The triangular building sits at the five-way intersection — the convergence of Welton, 27th and North Washington streets — that gives the neighborhood its name.

The Rossonian is on its third ownership group since 2006. Its newest investor group — Palisade Partners — bought the building in August 2017 for $6 million. Palisade unveiled new plans for the hotel that year, and well-known Black investors were introduced as partners in the project.

In 2018, investors held a news conference at the Blair-Caldwell African American Research Library in Five Points to announce that Denver basketball legend Chauncy Billups would add his name and notoriety to the project .

Plans called for a 41-room boutique hotel with a basement jazz club and a ground-floor restaurant and lounge called Chauncey’s.

At the same time, the group also announced that Busboy’s and Poets, a well-known Washington, D.C.-based bookstore and restaurant celebrated for its activism and promotion of Black art and literature, would open its first location outside of D.C. on the same block as the Rossonian.

That plan never materialized, in part because of the pandemic, said Haroun Cowans, president of the Five Points Business Improvement District.

Then Billups accepted a job as the head coach of the NBA’s Portland Trail Blazers and withdrew from the project.

“There’s been a lot of great announcements over the years that even I’ve been a part of,” Cowans said. “People have been excited, but there’s a lack of completion.”

The owners of Palisade Partners would not elaborate on their latest plans for the hotel, only telling The Post that they were in the planning and design phases of the project. Those plans still include a hotel, restaurant, multipurpose event space and a “music component, all while preserving the rich history of the neighborhood,” Krystal Shores, executive assistant to Palisade’s president, said in an emailed statement.

Burkett also is a partner in the Rossonian development but would not provide an update on the hotel’s future.

“We are the 14th group that has attempted to resurrect the Rossonian,” Burkett said. “It hasn’t operated as a hotel since like 1927 or something crazy like that, 1930. It’s been 100 years. It’s very, very, very, very difficult.”

The Rossonian hosted a popular jazz club until the 1950s and operated as a hotel into the early 1970s, according to History Colorado.

Dan and Michelle Sawyer opened Duke’s Good Sandwiches and Scratch Family Bakery at 2748 Welton St. in June 2022.

Scratch fronts Welton Street, where customers can walk in and buy Michelle Sawyer’s cannolis, cupcakes, cookies and other treats, while the sandwich shop sells its six offerings, modeled after sandwiches sold in New York bodegas, from a window around the back.

The Sawyers considered a location on Larimer Street but ultimately chose Welton because they live in the neighborhood and were excited about announced development plans for the Rossonian, Dan Sawyer said.

“Everything else on Welton Street was going to come after that,” he said.

Some days when business is slow, he wonders what things would have been like had they chosen Larimer Street. Would more people be buying their chopped cheese sandwiches?

“We need these empty buildings to fill up,” Dan Sawyer said.

The building across the street is dilapidated with no development plans in the works, he said. Owners refuse to sell or renovate, he said.

Michelle Sawyer pitched the idea of hosting a St. Patrick’s Day pet parade to draw people to the corridor. Plenty of people came to the event last month and it was fun, the couple said.

But “there’s no businesses down here to visit. That’s what we need,” Dan Sawyer said. “It’s kind of disheartening to see RiNo developing so much and here we are stuck.”

Revitalizing a slumping corridor

Multiple people interviewed for this story told The Post that there needs to be more retail on the strip so people can shop and then stay for lunch or happy hour. They envision a corridor similar to Washington Park’s South Gaylord Street or South Pearl Street near the University of Denver.

But few, including Burkett, have answers as to how to make that happen.

One idea discussed by Burkett and other business owners was changing Welton Street’s traffic pattern so that cars run in two directions. As a one-way street, people drive faster through the neighborhood, never slowing down to see what businesses are there, he said.

Multiple business owners also complained about the light rail line that runs on the east side of Welton, often blocking pedestrians from storefronts. The light rail ends just a few blocks away at 30th and Downing streets, so it doesn’t carry a lot of passengers who might stop on Welton Street before traveling farther on the line.

“It’s a big train and it’s moving pretty fast,” Burkett said. “It doesn’t feel super safe. If you’re walking with your pets or walking with your kids, it’s a big train coming through there.”

Kwon Atlas, a Five Points resident and business owner who wrote a thesis for his master’s degree on the neighborhood, said Five Points has seen its ups and downs over the years, whether it was gang violence in the 1990s, the light rail line, the Great Recession or the pandemic.

Atlas believes the city of Denver needs to put more resources into the neighborhood. For example, the Downtown Denver Partnership and Denver Economic Development & Opportunity office created a program to help offset rent along the 16th Street Mall after the pandemic decimated businesses, Atlas said.

He suggested a similar program be instituted along the Welton Street corridor to entice entrepreneurs to move there.

“I look at downtown and the 16th Street Mall, and Welton Street isn’t getting a fraction of that,” he said. “And it’s languishing.”

Efforts to reach the city’s Economic Development & Opportunity office for comment were unsuccessful.

Atlas called on property owners — including Burkett’s Flyfisher Group — to take the lead on retaining the corridor’s soul.

“I think we can do it, but it’s up to the property owners to get off their butts and make the deals happen,” he said. “It doesn’t make sense to me. Why do you want your building to sit empty and not collect rent? And then it also hurts all the other businesses.”

Denver City Councilman Darrell Watson, who represents Five Points, said he is creating a list of idle properties so he can have discussions about what it would take to get owners to fix up the buildings. He wants to explore grants and other funds that would incentivize owners to bring those properties back to life.

He said he also has heard the complaints about the light rail and the one-way traffic on Welton Street and believes changes to both need to be explored.

“It’s set up for people to go through Five Points, not stay,” Watson said.

Watson said he continuously searches for ways to boost the neighborhood and bring more city resources to the corridor. Denver and its marketing partners promote Five Points as the “Harlem of the West,” so the city needs to invest in the neighborhood, he said.

“You can’t have a vibrant Denver without a vibrant Five Points,” Watson said.

“A very unique legacy and a delicate one”

One group that is doing its part is the AYA Foundation — Colorado’s first Black-serving community foundation.

The foundation applied for a Colorado Community Business Preservation Program grant on behalf of a cohort of six Black-owned businesses in Five Points, including Welton Street Cafe and Agave Shore. The cohort was awarded $190,000 in March, and each business will receive $30,000.

The grants are awarded to businesses that represent culturally significant areas where business owners are at a high risk for displacement.

And Black-owned businesses in Five Points certainly fit those criteria, said Benilda Samuels, executive director of the AYA Foundation.

“This grant is about avoiding displacement. It’s hard for these businesses. The corridor is not what it was,” Samuels said. “They all share this desire to not only create wealth for themselves through business ownership, but to do it in Five Points. They could have chosen to go anywhere else, but they all chose to do it there. They want to be there so we are not erased completely and our culture stays.”

Samuels said the Five Points Business Improvement District should have been the sponsoring organization on the grant. But the state’s criteria for applying for the grant required the sponsoring organization to have a full-time employee, something the district did not have when the application was due, she said.

Now, though, the business district has a full-time executive director. Harris, who founded the Juneteenth Music Festival and is a fifth-generation Coloradan with deep family ties to Five Points, was hired in January. He said he accepted the job because he has a “really deep passion” for Five Points and wants to see an equitable renaissance.

“The Welton corridor and Five Points has a very unique legacy and a delicate one,” he said. “We need to curate a healthy amount of businesses that reflects its cultural heritage.”

Harris has created various committees to address issues on the street, including safety, events and corridor development. He hopes to engage with the owners of empty buildings to figure out what it would take to get them renovated and occupied.

While Five Points is a much bigger geographic area than Welton Street, Harris said the business corridor is his priority.

“Where most of us associate the words ‘Five Points’ it’s being identified as Welton Street,” he said. “That’s where we have a lot of work to do to reprioritize the Welton corridor as the core of where our efforts need to be focused. It needs to be at the top of everyone’s minds to do what we can as a community to support our city’s only cultural historic district.”

But Burkett challenges the notion of the Welton Street corridor’s legacy as a stronghold of Black-owned businesses.

“That’s part of, I think, the issue with Five Points is that people remember a legacy that is nearly a century old,” he said. “If the goal is to try to re-establish a century-old paradigm, we have to be aware of the reasons why the corridor hasn’t thrived for nearly a century.”

When asked if he thinks people should move on from the dream that Welton Street could see a revival of Black commerce, he said, “I think what is most important for Welton is it becomes a viable commercial corridor that can service the neighborhood that is around it.”

In the 1920s, 90% of Denver’s Black residents lived in Five Points because of racial segregation.

“Are you defining it as a Black business corridor because of what it was in the 1920s?” Burkett said.

And who lives in that neighborhood now? Mostly white people, who bought up historic homes and flocked to new, multi-story housing complexes on the corridor.

Five Points is now 73% white and 13% Black, according to the city’s neighborhood fact sheet . Citywide, 8.9% of Denver’s 713,252 residents are Black, according to the U.S. Census Bureau.

“Look around the restaurant right now,” Burkett said while sitting in Mimosa’s on Wednesday morning. “Look who’s in here? Who are the people that are in here?”

At that moment, diners occupied three tables. All were white.

Welton Street Cafe’s reopening is in sight

On a sunny February day, Fathima Dickerson stood in the middle of her family’s unfinished restaurant staring at a mess. The new restaurant, at 2883 Welton St.,  will be a block farther north from its old location, near the red brick Five Points Media Center building.

A new ventilation hood for the kitchen had been delivered the day before after the family was forced to return the first, which had been damaged during shipping. The bartop was wrapped in paper on the floor, waiting for someone to install it. A saw appeared to be leaking grease onto the floor, which was covered in thick brown paper. Construction material was stacked in a corner.

The only thing missing? Workers.

“Where is everybody?” she said. “Why isn’t anyone here?”

Within weeks the family would part ways with their original contractor during what Fathima Dickerson described as a “period of uncertainty.” But work on the new restaurant resumed in late March.

The family is excited about their new location.

For the first time, Welton Street Cafe will serve beer, wine and liquor. They are considering a focus on Caribbean cocktails to honor their parents’ heritage, Fathima Dickerson said.

The family also has been intentional in the restaurant’s new design, with the goal of creating a welcoming space for everyone. There will be spaces at the bar for wheelchairs. The chairs at tables will be wide and comfortable.

“We’re a big family,” she said with a laugh.

The kitchen has more room so the cooks aren’t standing shoulder to shoulder. The cafe will have a separate door for take-out and an entryway for people waiting for tables.

Fathima Dickerson declined to say how much the family is spending to remodel the building. A GoFundMe campaign  started by the family has raised $112,470 toward its $250,000 goal. And they received a loan from the Colorado Enterprise Fund so they would have capital, she said.

There will be other challenges, too, once the kitchen’s ovens fire up:

• The cafe must replace long-time employees, including Rhonda Abdullah, a server who died of cancer
• Denver’s minimum wage is now $18.29/hour, a $2.42-per-hour increase since the cafe closed
• The city is eliminating foam take-out packaging, the cheapest option, on July 1
• Food prices fluctuate and are hard to budget around
• Fixins Soul Kitchen, a national chain owned by former NBA all-star Kevin Johnson , is scheduled to open on Welton Street by the end of the year

But Fathima Dickerson said her family has been in the restaurant business for 40 years and knows what to do to succeed.

“I hear the community but I just say, ‘Go sit down somewhere,'” she said.

On Monday, Welton Street Cafe announced on Facebook that the restaurant was now hiring servers, cooks and bartenders for the new location.

The opening date remains a closely guarded family secret, but Fathima Dickerson said the finish line is in sight.

“We are super excited and kind of nervous,” she said. “We are ready to serve some families that we have missed and have missed us.”

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