How to Make a Profit in the Bakery Business

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Because the bakery business is diverse, it's important to research the industry in your city before attempting to launch. If there are any local trade magazines that specialize in spotlighting the latest trends in the food service industry, pick up a few issues and search for articles that specifically deal with operating a baked goods business. Also think about which of your products are unique and promote these to your target customers. For example, if you specialize in selling low-sugar baked goods for diabetics, you should bring samples to hospitals, supermarkets and nutrition expos in your city.

Offer products that differ from the competition. For example, if you own a frozen pie company which distributes items to major supermarkets, think about creating pies with unusual but delicious flavors. For example, if you mainly carry apple, pumpkin and lemon meringue frozen pies, consider other flavors such as butternut squash-pecan, strawberry-peach or mango-orange.

Pay attention to customers' ideas. If you own a cake shop that uses only organic ingredients, and a customer suggests you start selling organic ice cream products, give that input serious consideration. Also, if a few customers have suggested that you expand to catering out-of-town events because they believe in the quality of your products, also consider this idea.

Create new marketing strategies for the bakery. If you own a custom-made birthday cake business and want to attract more low-income families in your city, visit their neighborhoods and the places they often visit. Take some flyers to day care centers, community centers, schools, churches and public parks. Also offer special discounts to the low-income families you're trying to reach, and bring some photos of cakes you have prepared so prospective customers can see your work.

Get ideas from your employees. If a few suggest you should target more pastry chefs who come to the bakery for items, consider selling wholesale baking supplies such as flour, eggs, pie dough and sugar at a discount each month for the chefs. If an employee tells you he has been getting requests for more chocolate desserts, contact your distributors and inquire about getting more of these items.

Look for new locations. If you operate a specialty brownie store, but are considering reaching a certain neighborhood with an increase in residents who fit your target customer base, visit that neighborhood. Search for buildings within your budget, but still large enough to accommodate customers, a kitchen for staff and office space.


About the Author

Thea Theresa English is a freelance writer who lives in New Orleans. She has written articles on career development, maintaining healthy relationships, politics and cultural issues. She is currently a graduate student at Tulane University where she will receive her Master of Liberal Arts degree.

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  • assorted cookies image by William Berry from