How To Open A Bakery Business


How To Open A Bakery- One of the most popular trends of recent years is mini-bakeries. The boom in this segment is largely associated with a change in the culture of bread consumption: residents of large cities, especially millennials, increasingly prefer fresh author baked goods over cheap, mass-produced products. Here are things you will get to know in this article;

  • How To Open A Bakery
  • How To Open A Bakery With No Money
  • How To Open A Bakery Shop
  • How To Open A Bakery Business


  • Step by step instructions for opening a bakery

One of the most popular trends of recent years is mini-bakeries. The boom in this segment is largely associated with a change in the culture of consumption of bread: residents of large cities, especially the millennials, increasingly prefer fresh author baked goods over cheap, mass-produced products.

According to the NPD Group, from December 2017 to November 2018, the number of visits to Moscow bakeries increased by 28%, in St. Petersburg this figure was 16%. Last year, the average check in Moscow bakeries was 156 rubles, which was about half of the average restaurant check (278 rubles). Most of the guests of the bakeries are women (65%) and families with children. The share of sales “with me” in this segment is quite large – usually twice as high as in other segments of HoReCa.

What you need to know before opening a bakery

  • Types of bakeries
  • Finding a room and choosing a location
  • Business registration
  • Equipment
  • Staff
  • Range
  • How to attract first customers
  • What is the exact cost to open a bakery from scratch
  • How quickly investment pays off
  • Types of bakeries

Depending on the distribution channel and organization of production, mini-bakeries can be divided into several types:

  • #1. Full-cycle bakeries that manufacture products at the point of sale.
  • #2. Bakeries that only produce products and already ready to deliver to the point of sale.
  • #3. Bakeries that supply finished products and semi-finished products to frozen outlets.
  • #4. Bakeries that bake products from partner ready-made semi-finished products.

The format that is now considered one of the most successful is when you do not just sell pick-up products, but also offer guests tea, coffee and other non-alcoholic beverages (depending on the season). As a result, you get a synthesis of a coffee shop with a small number of seats and your own bakery.

How To Open A Bakery
How To Open A Bakery
  • Finding a room and choosing a location

The business of bakeries is interesting in that the establishment can be opened anywhere: in a residential area, at a bus stop or at a train station, in a shopping or business center, and even 10 meters from a competitor. Any location with good traffic will do. You can bet on a secluded place in the center of the city, but then you have to spend a lot of effort on promotion so that people know the “secret” place with delicious coffee and pastries. When you come up with your recipes and bet, for example, on sweet croissants and focaccia, the nearby bakery with sausages in the dough and cakes will not hurt you: you will have different CA. For the bakery, the quality of the product and its freshness are important. Since you are planning production, the main criterion when choosing a room should be the absence of any restrictions from the SES. Here are the main ones:

  • you can not place a bakery in the basement of a residential building;
  • basement rooms are also prohibited;
  • You must have a waterproof floor (for example, porcelain stoneware);
  • walls must be tiled to a height of 175 cm from the floor;
  • the upper part of the wall and the ceiling should be whitewashed;
  • there must be water and sewage;
  • availability of air conditioning and ventilation;
  • there should be a warehouse as a separate room for food storage (flour, butter, etc.);
  • there should be a toilet and a sink for workers;
  • A locker room is required.

When you choose a room from several options, be sure to keep in mind that you will have to adapt it so that there are no problems with the sanitary-epidemiological service. And some options will disappear already at the selection stage (for example, all semi-basement and basement rooms). Opening a bakery in a residential building will be very problematic.

How To Open A Bakery Business

If you plan to open a bakery in an average or small city, and not in the capital or a millionaire, the main criterion for you is a room on the street with a good flow of people. Baking and coffee should be as fresh as possible. Your products have a very short shelf life, which means you need to sell products as soon as possible to avoid balances and write-offs.

  • Business registration

After the selection of the premises, you can safely begin the process of registering a bakery. If selling Alcohol is not part of your plan (and for a bakery, this is clearly not a priority), then on the territory of Russia, you will only need to issue an IP. Ltd. will be required for a full-fledged shop, but this is already far from the concept of a mini-bakery.

What you need to open a bakery and what documents you will need:

  • permission from the fire inspectorate;
  • permission from the environmental impact assessment authority;
  • certificate of conformity (for the Russian Federation – you can get it at the Federal Agency for Technical Regulation and Metrology);
  • the conclusion of the environmental impact assessment authority;
  • sanitary-epidemiological conclusion on the production (it is issued by the SES, without it you can not legally sell your products).

You can start production only after you receive all permissions. Do not forget to issue employees with personal medical books.

  • Equipment

First, you need a chef or technologist who will tell you what equipment is needed and organizes the workflow correctly. It will be extremely difficult to do without such a specialist, especially if this is your first test in the restaurant business. A specialist can be trusted and the choice of equipment, brands, etc. Used equipment is a big risk for a business, especially at the very beginning. It is better to take not the most expensive and eminent, but new.

If you open a production, then literally everything depends on the quality of the equipment – from energy consumption and production speed to its quality and complexity of staff training. The necessary equipment for the bakery can be divided into basic and additional.

  • Basic equipment:
  • Flour Sifter
  • Kneading machine
  • Dough breaker
  • Shaker Tiller
  • Dough Divider
  • Proofer, in which the “dough” reaches

And of course, the main element of the bakery is the oven. Furnaces can be a hearth, rotary, convection (with the function of the different movement of steam inside the furnace) and electric or gas.

How To Open A Bakery With No Money
How To Open A Bakery With No Money
  • Optional equipment:
  • Baking trays
  • Shelving for products and products
  • Tables
  • Refrigerators for dough and raw materials; storage cabinets
  • Washing equipment
  • Climatic equipment
  • Bakery automation system

Few people are already doing their business in a notebook or in Excel, and for network business, it is generally difficult to imagine. Most come to the introduction of automation systems to account for their business. Moreover, with the entry into force of Law No. 54-FZ, it is forbidden to work without specialized cash equipment. Based on the experience of most new establishments – the automation system needs to be implemented from the very beginning in order to correctly optimize all working processes. Namely: to speed up the work of staff, to avoid thefts, excess balances in warehouses and to control all finances inside the institution. All this needs to be monitored simultaneously, which allows the automation system to do.

Conventionally, accounting systems or POS-systems, as they are called from the English. Point-of-Sale can be divided into two types: stationary – bulky, expensive monoblocks and convenient cloud solutions – mobile applications that run on tablets and laptops (for example, Poster). If you want to control the business in real time outside the institution, and you do not have large amounts of automation, you need to look towards cloud solutions. The minimum set of cash equipment for the bakery that you will need:

  • Bakery billing system
  • Tablet or laptop
  • Fiscal registrar
  • Moneybox
  • Libra

A useful feature of the accounting system, to which the bakery owners should especially pay attention, is the control of production. Not all programs are able to follow and count baking residues in finished form, and not only in ingredients: flour, sugar, yeast, eggs, stuffing, etc. And as an owner or administrator, it is important for you to know how many more croissants there are enough stocks and not how many kilograms of flour you have left until the next delivery.

Although the latter is also very useful, if you set up notifications about the product balance in stock, then you will not miss this moment either. So your bakery will not stand idle, and the cooks will not sit idle.

  • Staff

The most important in the bakery – technologist. It establishes quality standards, the volume of purchases of raw materials and finished product, and also partially affects the range of mini-bakeries. The rest of the working staff for a small bakery is 5-6 people, without waiters.

Do not forget about accounting. Alternatively, you can enter into an agreement with an outsourcing company, but for a bakery with a small turnover, it is more profitable to hire your own accountant who will submit reports and whose constant presence is not necessary. Typically, these accountants are several institutions or businesses, exposing at the same time reasonable prices for their services. Also at the start and for further maintenance of the equipment, you will need a tuning technician. Unfortunately, they are not able to repair and re-adjust the ovens and dough-makers.

  • Staff sufficient to open a bakery:
  • Senior baker technologist (possibly a narrow-profile specialist to control the technological process, product quality, and to adjust the ingredients).
  • At least two universal bakers who work in shifts (for most products the dough needs long-lasting fermentation, and in order for guests to get fresh bread in the morning, one baker should work on the night shift and the other on the day shift).
  • Barista cashier (if you plan to ensure stable sales of beverages – and this is 40% of the daily revenue of the establishment – at the start, you need at least two people, the mode of operation is two through two).
  • Range

Many approach this question too lightly, but the success of the baking business depends on the assortment most often. It is necessary to think over it at the stage of drawing up a business plan, before searching for premises and selecting equipment. From the fact that you will cook in your bakery, will depend on the choice of location, and the volume of production, and the target audience. Of course, the wider the range of products, the better: this way you will reach a larger audience and profitably select your establishment from its competitors. Unfortunately, for a small bakery, it is difficult to implement, so it is better to concentrate on specific unique positions and diversify them with stuffing.

It should focus on the requests of your potential customers. For example, if you plan to open a mini-bakery near a bus stop, subway station or train station, where it is important for people to eat quickly and satisfyingly, without any frills, you should add more pastries to the assortment with meat or vegetable stuffing.

If your bakery is located near the shopping center (or inside it) or in the central part of the city, then the range should be expanded by baking with a wide selection of sweet fillings, which are ideal for coffee drinks.

  • Purchase of consumables

Baking – products with a very short shelf life. With raw materials, things are the same, so supplies should be made before the start of the bakery, after concluding all contracts with suppliers.

The main raw material is flour (for baking only the highest grade is required). When calculating it is worth considering that the weight of finished products at the expense of the remaining ingredients will be more than the weight of raw materials by about 20-30%.

Finding suppliers can be a lot of problems. It is necessary to consider intermediary firms that offer convenient conditions for cooperation since it is impractical to try to communicate directly with the flour mills.

  • Why should you not negotiate with the factories directly?

At least they are not interested in your purchase volumes. For a mini-bakery, no more batch daily is needed. Large purchases are also unprofitable for you: flour requires special storage conditions. To equip such warehouses, you will need additional space with maintaining the necessary humidity and temperature.

Even if you can interest the plant, it will be very difficult to reach an agreement directly. In addition, in most cases, you will encounter a terrible bureaucracy, and prices will no longer be so attractive.

Disruption or cancellation of at least one delivery on your part – contract breach.

In addition to flour, you will also need: pressed yeast, sugar, vegetable oil, salt, baking powder, stabilizers and food additives, vanillin, thickeners, etc. – plus the filling, which already depends on the range, concept and individual recipes of your mini -bakery (croissants, donuts, puffs or any muffin).

  • How to attract first customers

It is necessary to start advertising a new establishment at least a month before the official launch when only preparations are underway for the opening of the bakery. To get your potential guests to get used to the fact that a mini-bakery will be here soon.

If you have access to external walls, shop windows or windows with access to the street with traffic, feel free to hang up the images of your future products and count down the days before the opening. As soon as the sign appears, immediately hang it up, and then install the equipment, etc.

Simultaneously with the passive advertising on the site should start the promotion on social networks. You can make friends with neighbors if there are any nearby (beauty salons, shops, other catering establishments that do not compete with yours). Agree on the distribution of flyers, gift certificates on mutually beneficial terms or free gifts in your corporate wrapper (for example, cookies, buns or a piece of cake). And you, in turn, can hand out their business cards in your institution.

  • Marketing tools

The peculiarity of the bakeries is that the main sales and traffic fall in the morning and lunch, and fall towards the evening. Although, if you have different types of bread for sale, and not just baked pastries, in the evening they buy it quite well.

So, in order not to squander so much in the revenue, at such a time, you can launch actions like “happy hours.” For example, a certain discount after 18:00, so that people could make out the pastries, and you would not have to throw it out and lose money. Or give out at this time bonuses for the purchase of certain products, also motivating to buy more or what is “stale.”

Plus, these promotions also work great during peak times, especially if there are a couple of bakeries near your bakery. Knowing that before 10 am you have discounts for coffee to donuts or “all puffs -25%” you will have a queue, and only the most impatient will buy from competitors.

But they can be lured and provided that your staff will not work with a notebook and a calculator, but with a modern automation system, where the order is issued in a couple of tapes on the tablet. So the queue will move many times faster.

It is important that such promotions be configured automatically in your accounting system and cashiers do not need to look at their watches, manually punch discounts or remove bonus positions from the check (in the case of 3 + 1 stocks, etc.).

  • How much does it cost How To Open A Bakery Business

An important point: baking sales are almost independent of the season, products are in steady demand all year round. Our calculations are averaged, much depends on the region and the specific country where you plan to open your mini-bakery.

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Conclusion On How to open a bakery from scratch- step by step [2020 guide]

So that is the full guide you need to have to know on How To Open A Bakery Business From Scratch to finish, so if you have any questions, suggestion, addition and other information, you can make use of our comment section or drop an email with us.

Tag: How to open a bakery from scratch, How To Open A Bakery, How To Open A Bakery With No Money, How To Open A Bakery Shop, How To Open A Bakery Business