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Plan your bakery

Theres a lot involved in starting a bakery. With Michelle and Barbaras help, lets get the
planning process started.

1. Select the kind of bakery youd like to open

One of the first decisions youll have to make is the kind of bakery you want to open. To do
this, youll want to access your talents, budget, and goals. There are four main choices when it
comes to bakeries. Take a look at the list below and figure out which option is right for you.

Online bakery. You dont 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 a
bakery from your home.

Counter service bakery. 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, its up to you.

Sit down bakery. More owners are trying to capitalize on the sit down and dine option.
Its a growing trend in the bakery industry right now. These bakeries have an area to order
baked goods and enjoy them in a small eatery.

See Also: Conduct a SWOT Analysis on Yourself to Figure Out Strengths,

Weaknesses, Opportunities and Threats

2. Write a business plan

Once you know what kind of bakery you want to open, you need to create a business plan. By
creating a business plan, youll force yourself to look at the business from every angle. This plan
defines your business, sets goals, creates a plan to generate revenue, lists expenses, describes
your customer base, and examines your competition.

Access your startup funds. As part of your business plan, youll dive into finances. One of the
numbers youll need to generate is startup cost.Youll need to compile a list of equipment that
youll need to make baked goods. 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 youll also need money to live on while the business gets established. You wont make
profits overnight, so you need to sit down and figure out when youll break even and how much
money youll need to survive until that time.

S p o n so r ed C o n ten t

Business Planning Made Easy


3. Shop for space

If youre running a bakery from your home, youve already got your space figured out. If you
plan to invite customers into your bakery, youll need commercial space. Some bakers decide to
rent out commercial kitchen space. Its a good option if you dont 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. Do not forget to consider the legal
necessarieswhich will vary state to statesuch as obtaining a license to bake out of your own

See Also: How to Choose a Business Location

4. Price your baked goods

Most bakers base 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. Its very easy to forget the time you spent making flowers
because you were watching TV while you did it. There is nothing worse than realizing afterwards
that you earned 50 cents an hour on a fabulous creation.

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

5. Have a defined friends and family policy

Before you open your bakery, be aware that friends and family will probably ask for a discount.
When youre selling cakes and cookies as a side gig, its fine to give the neighbor or the PTA
president a discount, but when you start your business, its 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 youre 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, thats fine, but whatever your policy is, make sure its

See Also: How to Keep Discounts from Killing Your Business [Part 1]

6. Find support
Speaking of friends and family, a support system is crucial in the baking business, Batiste says.
Opening a bakery is time consuming. Time spent baking is only half the commitment. Youll
need to market your business, take orders, help customers, and do an array of administrative
tasks that will all require your time.

If you dont have someone cheering you on, it can be hard. Whether its you spouse, a colleague,
or business mentor, you need someone in your corner, Batiste says.


The reason why there can never be too many bakeries is because there are so many niches
to be filled. In many cities, three or four bakeries can prosper within miles of each other
because they are so different: one may only bake wedding cakes, while one specializes in
French pastries and another bakery serves donuts. When choosing a niche for your bakery,
consider the demographics of your area, and what already exists--if there are already three
doughnut shops, you would be best served choosing a different specialty. Examples of other
bakery niches include ethnic pastries, pie shops, custom cake bakers, vegan and vegetarian
bakeries, pet bakeries, cupcake shops and gluten-free bakeries.

Business Permits

The permits needed to run a bakery business vary widely from state to state, but most do
have very specific regulations concerning this specialty food business. For example, in Texas
bakeries must have a food enterprise permit, be inspected before opening, all bakers must
have a food handler permit and at least one person onsite must have food manger
certification. In addition, you may need standard business and retail permits, such as a
fictitious name certificate (DBA), Employer Identification Number, sales and use tax permit
or state tax identification number.


The bakery business is one where customers don't care what degrees or training
you have--you know how to make good bread or you don't. Your pastries will
melt in their mouths or sink like bricks in their stomachs. Hands-on experience, practice, trial
and error are the best training to own a bakery business. Formal education in baking and
pastry arts can be beneficial, but you will still need to learn by doing before trying to
become a bakery entrepreneur.

Business Models

A bakery can be run any different ways, and what works from one bakery owner will fail with
another. Consider your strengths, location and niche when choosing a business model for
your bakery. For example, you can operate a bakery cafe, a catering business that only
serves baked goods and pastries, a wholesale bakery operation, artisan bread business that
vends at farmers markets, a traditional storefront bakery or a mobile bakery that serves
customers from a food truck or van. In a few states, you may also have the option to run
your bakery from home. Most states, including Texas, have laws against home bakeries.

Owner Responsibilities

Unless you outsource many of the following tasks, you will need to wear many more hats
other than that of a baker. This is why most startup bakery businesses hire help, if only on a
part-time basis. In addition to cooking and developing your bakery's menu, you
will be responsible for marketing, public relations, advertising and promotion, inventory
management, bookkeeping and human resources management. Try to hire someone to
handle tasks you are unfamiliar with, such as PR, bookkeeping or designing your
bakery's website--doing so will save you time and money in the long run.

Baker: Career and Salary Facts

Explore the career requirements for bakers. Get the facts about salary, training requirements and job
outlook to determine if this is the right career for you. Schools offering Baking & Pastry degrees can
also be found in these popular choices.
Career Information At a Glance

Bakers generally enter the field with a high school diploma and training conducted on the job, but some
decide to pursue formal education. A summary of this career is profiled in the table below.

Training Required On-the-job; apprenticeships and college programs are also available

Key Skills Math, attention to detail, physical stamina, sense of taste and smell

Job Growth (2012-2022) 6%*

Median Salary (2013) $23,160*

Source: *U.S. Bureau of Labor Statistics

What Does a Baker Do?

As a baker, your main function is to make pastries, breads and other types of baked goods that are
suitable for consumption. You mix various ingredients together according to a recipe and then bake the
mixture. After allowing baked goods to cool, you package them for retail outlets or for individual clients.
As a baker, you might also be responsible for putting the finishing touches on a baked item. This might
include icing a cake, decorating cookies or slicing bread.

Where Could I Find Work?

A commercial bakery might hire you to work as a baker. Your responsibilities may involve creating large
batches of baked goods for distribution to retail outlets, grocery stores or manufacturers. For example, if
you find work with a large bread company, you may manage large ovens, high-volume mixing machines
and a crew of employees to make sure that large amounts of bread are baked each day.

You might also find a position working for a small bakery within a grocery store or retail outlet. Your
responsibilities might include baking a small amount of fresh products each morning. You might also
work at an independent bakery that specializes in artisan breads, cakes, cookies and other baked
goods. You might fulfill specialized orders for a variety of products, such as wedding cakes or birthday

You could also find a position working as a head baker for a full-service restaurant. You may be
responsible for baking the breads and desserts featured on the menu. You might work alongside a team
of assistant bakers or pastry chefs.

What Education and Training Do I Need?

While it is possible that you could learn how to become a baker through on-the-job training or an
apprenticeship, you might want to seek out additional education or training. Some community colleges
and culinary institutes offer certificate programs in baking and pastry arts. Such programs typically take
about one year to complete and provide you with the knowledge and practical skills necessary to create
baked goods. You should learn the basics of food sanitation, baking processes, food purchasing, cost
control and kitchen management.

An Associate of Science in Baking and Pastry Arts includes courses related to hospitality theory and
business management. It might prepare you to become a lead baker in a large bakery. If you are
interested in opening and managing your own bakery, you might want to consider completing a
bachelor's degree program in business administration, management or hospitality management.

What Salary Could I Expect to Earn?

More than 167,000 bakers worked in the United States in 2012, as reported by the U.S. Bureau of Labor
Statistics (BLS). The median annual 2012 wage for these professionals was approximately $23,160. In
2012, bakeries, tortilla manufacturers, grocery stores, limited-service eating establishments and
restaurants employed the majority of bakers.

Baking in the Philippines

Have you wondered how the art of baking began, and spread its reach across the Philippines?
Baking, in itself, goes back at least a thousand years. The use of enclosed ovens, to produce bread
and pastry, was probably introduced by European explorers and colonizers.
17th century oven as depicted by Jean-Franois Millet
Pies, and cakes, were prevalent in Europe during the 17th century, and as the continent spread its
reach across the seas, they brought the art of baking along with it.
One school of thought is that Spanish missionaries introduced baking to the country. Wheat was
often used in food, by missionaries, who introduced the diet, as well as the preparation and process
to the locals.
Dominican friars circa 1875, spreading religion and recipes to the locals. Photo courtesy
of http://filipinofreethinkers.org
On the other hand, as early as 618 AD, China was already making moon cakes and the early
settlers and traders who landed on Philippine shores, also inevitably shared this unique process of
using dry heat to make bread and other desserts.
Ancient baking mold of mooncake. Photo courtesy of http://www.news.cn
However, let us not forget the contribution of our Malay ancestors, who introduced sticky rice cakes
and layer cakes. One can argue that the Malays knowledge of baking was still derived from their
Dutch colonizers, but the ingenuity in the use of local ingredients such as rice, corn and coconut, as
well as making do with clay pots and wooden steamers, created something totally original.
The Kueh Lapis, with its colorful appearance and layered arrangement, makes it a likely source of
inspiration for our Sapin-sapin. Photo courtesy of http://travelling-foodies.com
Similar to many aspects of Philippine life, our history as a baking country is comprised of influences
from many different cultures. From there, it became part and partial of growing up Filipino.
Food items such as Ensaymada, Sapin-sapin, Leche Flan and Biko were integral to ones childhood.
Having baked goods at home became a common thing. Breakfast would consist of Tasty Bread, and
Puto or Mamon would be there during merienda.
Just a few examples of the different types of Filipino baked goods and kakanin.
For the everyday Filipino, there was the bakery sa kanto (neighborhood bakery) that satisfied ones
craving for Pandesal, Kalayaan and Monay.
Typical bread that you can find in a neighborhood bakery.
For those who could afford their own oven, having newly baked cake, cookies, bread and similar
desserts, became staple during mealtime, snacks and feasts.
A modern kitchen, where baking techniques of yesterday, and appliances of today meet.
The importance of baked goods in Philippine tradition is undeniable. With so many foreign influences
that made their mark in how baking developed in the Philippines, there is no definitive answer really,
to how it all began. What we do know, is the importance of this wonderfully delicious art, and how it
has since been vital in every Filipinos life.

Dimas-alang, 1919:
Historical bakery in
old Pasig
By: Amads Ma. Guerrero - @inquirerdotnet
Philippine Daily Inquirer / 11:33 PM October 05, 2013
THIS BAKESHOP started operations in 1919. Photo by Amads Ma.
Guerrero, Contributor

The oldest business establishment in Pasig, then part of the province

of Rizal, is Panaderia Dimas-alang, which began operations in 1919.
The name itself is historical, as it was used by Rizal in his novel Noli
Me Tangere.
RARE photo shows Dimas-alang during the early 1920s period. Photo
by Amads Ma. Guerrero, Contributor

The bakeshop is now owned and managed by Manolo Lozada, who

inherited it in 1980 when his mother Teresa passed away. The
Lozadas are an old, artistically-gifted family from Pasig, and in music
circles Manolo, a painter-printmaker and singer, is better known as
the only brother of the late, great violinist Carmencita Lozada.

Manolo (whose wife Baby is an accomplished pianist), an English

major from the University of the Philippines, describes himself as a
reluctant businessman and bakery owner. And Dimas-alang is or
used to be a small-town bakery catering to the neighborhood.

He has no idea of the initial investment in Dimas-alang, which

actually evolved from a much earlier bakeshop, Dos Hermanos
Panaderia, founded by relatives of the Lozada grandparents: Pero
napakaliit pa noong araw (investment was miniscule during those

The bakery was run of the mill when he took over, but he and his
sisters Carmencita and Teresita were intimately familiar with the
place: We grew up in the bakery. We knew the feel and the people
here now are descendants ng dating tauhan (the former
PREPARING the muffins on the tray. Photo by Amads Ma. Guerrero,

The entrepreneur-by-inheritance decided not to try anything radical

to improve business. I was not going to change its image, Manolo
says. I tried to retain the old ones (products) like pan de sal and
ensaymada. The innovations came with the onset of the baking
schools, and we adapted a few of themlike brazo de mercedes.

He recalls: At first, business was slow. I was just getting by. And I
would go back to the US every year. We added items like egg pie, and
I just kept on. Eventually business picked up. Maganda ang business
ngayon at dumami ang clientele (business is good now and
customers have increased).

By then Pasig had metamorphosed from a small provincial town to a

modern big city, part of Metro Manila, with the districts close to
Ortigas and Edsa filled with high-rise buildings, condominiums and
upscale offices. Ricefields gave way to subdivisions.

Everything contributed to Dimas-alangs progress, notes Manolo. It

was a result of demography, development.

The bakeshop has a staff complement of over 30, enjoying full

benefits like SSS, Pag-IBIG, PhilHealth, 13th month bonus, vacation
leave and retirement pay. They invent or devise recipes, especially
those using native goods like tamarind and bananas.

Dimas-alang, however, remains old-fashioned. While a few machines

have been added, there is only one computer. As long as the money
keeps rolling in, to paraphrase that line from the musical Evita, who
cares? Manolo does not promote the business online, and the recent
publicity over TV and the print media was all unsolicited.
Our saving grace is that we kept on, concludes Manolo. At the start
I managed by dint of by feel. I revived old biscuits that I
remembered. We stuck to tradition. We catered to the memory of
people who lived here.

Read more: https://business.inquirer.net/146149/dimas-alang-1919-

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