pastry shop business plan philippines

How To Start a Bakery Business in the Philippines: A Beginner’s Guide

Pinoys love to eat bread. It’s a staple food in the country second only to rice. For this reason, the bakery business in the Philippines is one of the most profitable ventures you can invest in.

Let’s find out the ins and outs of opening a bakery business in the Philippines and whether or not it’s the right business idea for you.

Go back to the main article: Best Small Business Ideas in the Philippines with High Profit

Table of Contents

Who should start a bakery business, 1. monthly rent, 2. equipment, tools, utensils, 3. ingredients.

• 4. Delivery Vehicle (Optional) 

a. Cost of Utensils

B. equipment, c. raw materials/ingredients, how much does a bakery business earn, 1. evaluate the reason why you want to open a bakery business, 2. take up baking courses, 3. perform basic market research, 4. find a good location, 5. decide whether to franchise or go on your own, 6. secure the required permits and certifications, 7. start small, 8. buy baking equipment, 9. know your ingredients, i. direct cost, ii. indirect cost, iii. production cost, b. sample product pricing (pandesal business), 11. hire employees, 12. learn how to innovate, tips and warnings.

Full-time entrepreneurs with experience in baking either through a previous job in a bakery or paid hands-on training.

How Much Capital Is Needed To Start a Bakery Business?

Initial investment ranges from ₱50,000 to ₱ 150,000 depending on the monthly cost of rent, equipment, utensils, ingredients, and business permits . Let us discuss every expense you will incur as you start your bakery business.

Unless you have your place, rent will be one of your bakery’s fixed costs. If you’re aiming to place your business in an urban city or populated areas like malls, schools, churches, or jeep/bus terminals, you need to prepare at least ₱10,000 for rent. 

Meanwhile, rental fees are much cheaper in rural areas, towns, or small barangays which might cost only at least ₱5,000. 

You must have a budget of ₱40,000 – ₱100,000 for baking equipment 1 . Estimated prices of some baking equipment are listed below.

• Stainless gas ovens with 2 – 12 plates cost ₱18,000 to ₱30,000
• Stainless steel banca ( pasong ) costs ₱3,500 to ₱5,000 depending on sack capacity
• Display rack ( estante) costs at least ₱10,000 to ₱16,000. You can also purchase smaller bread racks that cost ₱3,500 – ₱4,000
• Dough roller costs ₱35,000 and above depending on horsepower
• Other baking tools and utensils include rolling pin, dough cutter, weighing scale, measuring cups, spoons, and spatula with a total cost of not more than ₱2,000. 

There are stores that sell baking equipment packages which are usually cheaper than buying one at a time. Furthermore, you may also consider acquiring second-hand equipment from previous bakery owners as long as they are still in good shape. 

These include flour, sugar, egg, and salt which might cost you not more than ₱2,500. 

4. Delivery Vehicle (Optional)

You may also want to invest in a motor vehicle that enables you to deliver your bread products. A motorcycle together with a sidecar is priced at least ₱90,000.

Sample Breakdown of Investment Requirements (Pandesal Business)

The total capital needed to start a bakery business also depends on what type/s of bread you’re planning to sell. If you’ll exclusively sell plain or malunggay pandesal, for example, the cost to put up the business will be significantly lower since its ingredients are inexpensive and readily available (see the table below to have an idea of how much money you need to start a pandesal bakery).

What Are the Pros and Cons of Having a Bakery Business?

• Filipinos love to eat bread any time . At breakfast, they love eating pandesal and monay with a hot cup of coffee. Come merienda time, they usually snack on sweeter bread varieties like ensaymada, mamon, cheese bread, and pan de coco, washing it down with a cold bottle of their favorite soft drinks.  If you are to open a bakery business in the Philippines, bread and beverage are the perfect combos to sell.
• You have ready buyers regardless of the social class you’re trying to target. For the masa , classic Filipino bread is a proven best-seller. The higher-end market, on the other hand, buys more expensive varieties like hamburger buns, French bread, and cinnamon rolls.
• People buy convenience. The working class is too busy (or broke) to sit down in a fine dining restaurant to eat. They want an affordable food product to satisfy their cravings like bread that they can easily buy from a bakery and bring wherever they go.
• It’s more demanding than a food cart business or other food businesses that require smaller capital. Apart from the initial investment, you also have to invest a lot of your time, dedication, and patience to see through the tough times. That’s why people who start a bakery business in the Philippines without any passion for bread-making rarely succeed.
• With lots of bakeries around, setting up a new one means facing a lot of competitors. It might be challenging to offer something new or high-quality to entice potential customers.

Earnings from a bakery business depend on your daily number and type of bread produced, number of sales, and the cost of ingredients used. Generally, the minimum profits of a small bakery business range from ₱1,000 – ₱2,500 per day.

For instance 2 , a bakery with 1 sack of first-class flour (25 kilos) can create a 50-kilogram dough that can produce around 1,670 pieces of pandesal (assuming each piece is at least 30 grams). The average market price of pandesal is ₱2, so if you use one sack of flour per day to produce pandesal , your total revenue is around ₱3,400. The estimated total cost of ingredients used for this amount of pandesal is ₱1,900. Hence, the profit from a sack of flour of pandesal per day is around ₱1,500.

If your bakery produces a variety of bread types, there is a higher chance of earning more. You can pump up your profits up to ₱2,500 daily 3 . However, beware of the risk of experiencing a loss due to additional ingredient costs if you’re planning to produce more bread types.

How To Start a Bakery Business in the Philippines: 12 Steps

Running a bakery business in the Philippines is challenging.

Money is not the be-all and end-all of opening a bakery. You also need the knowledge capital that will help you manage the minute details of this food business.

If you’re just here for the money without the passion, training, and expertise needed, you might quit in the face of struggles. Know your purpose and start from there.

Starting a bakery business is different from baking cookies at home. You can learn the latter through YouTube tutorials and books about baking.

Baking for a lot of people, on the other hand, requires you to scale everything up.

People love to buy from bakeries that produce a hundred or thousand pieces of bread with the same taste. And this consistency can be achieved if you hire bakers who know about business-scale baking.

But what if one or all of your bakers suddenly quit? Unless you also know how to bake, your bakery business will inevitably stop operation.

Fortunately, there’s no shortage of schools or training programs that can teach you hands-on baking experience.

Flour mills provide free or paid baking courses as part of their marketing efforts. The knowledge and skills they teach are recommended for aspiring bakery business owners because their seasoned instructors teach not only hands-on baking experience but also the business side of it.

One month of training experience should be enough to equip you with the tools you need to start running a bakery business.

The following is a list of baking schools owned and operated by flour mills:

• A baking school in BF Homes, Parañaque City run by Pilmico Foods Corp .
• Maya Kitchen in Makati City is owned by Liberty Flour Mills.
• A baking school in Cebu City run by General Milling Corp.

If you’re planning to open a bakery that will exclusively offer pandesal, you can grab the training opportunities offered by these institutions:

a. Department of Science and Technology – Science and Technology Information Institute (DOST-STII)

Address: Gen. Santos Ave. Upper Bicutan, Taguig, Metro Manila

Tel. Nos.: (632)837.2191 to 95 / Telefax: 837.7520

Email: [email protected]

Website: http://www.stii.dost.gov.ph

b. Techno Learning Resources and Community Empowerment Livelihood Center, Inc. (TLRCE)

Address: Room 504, De Oro Bldg., EDSA-Boni Ave., Mandaluyong City, Metro Manila

Tel. Nos.: 84259217 / Mobile: 0998-791-7090 and 0917-378-4224

Facebook Page: TLRCE Livelihood Center, Inc.

Assuming that you’re planning to open a bakery business with small capital, you don’t need to spend a lot of resources on market research.

You can do it on your own by asking people about their favorite bread, observing their behavior, and studying the products and pricing strategies of your close competitors (if there are any).

The results of your market research should reveal the following:

• Your target market and the type of products that suit them . If you live in a rich neighborhood, serving French bread and other high-end varieties makes a lot of sense. However, it won’t work in a bakery located in Tondo or smaller barangays in provinces where people prefer pandesal and other cheap bread they’ve become accustomed to.
• Your competitors and how to differentiate your bakery from theirs. Competition is good if you look at it as a sign that there’s a demand for your product. In the case of bakeries, your competitors can help you understand whether there’s enough profitability, learn about the products that make them profitable and get ideas on how to make your bakery better than them.

In order for your bakeshop to flourish and recoup the initial investment faster, you must put it up in a residential area where there’s a great amount of foot traffic.

Ideally, the bakery business should be located where your house is, so you don’t have to worry about paying monthly rental fees. However, you can still rent a space as long as there’s enough foot traffic to justify it.

Good locations for a bakery business include:

• Near the entrance of or within residential areas with at least 2,000 households
• Jeepney, taxi, or tricycle terminals

In any food business, the first few months or years are always the toughest.

Without prior experience, you will be left to your own devices. Therefore, you are more likely to commit many mistakes along the way.

But with grit, you can get through this phase and let the experience become your teacher.

For starting entrepreneurs who want to minimize risks, you can franchise a bakery business with a ready system and proven track record.

Although the franchise fee may cost more, you will also worry less since packages–like the ones offered by  Kambal Pandesal 4 of San Miguel Mills–already include baking equipment, marketing support, and free site assistance and monitoring.

Each option has its pros and cons. Weigh the risks carefully and decide based on your level of experience and capital.

By legalizing your business, you can focus more on growing your business instead of worrying about the law running after you.

Related: How to Register a Business in the Philippines: The Ultimate Guide

Bakery businesses in the Philippines need all of the following permits and certifications:

• Business name registration in the Department of Trade and Industry (DTI) if you will run the business on your own (single proprietorship) or in Securities and Exchange Commission (SEC) if the bakery is owned by a partnership or corporation.
• Mayor’s Permit or Residence Certificate & Sanitary Permit from the local municipality where the bakery business is located.
• License to Operate (LTO) as a “food manufacturer” or BFAD Certificate from the Bureau of Food and Drugs (BFAD).
• Tax Identification Number (TIN) from the Bureau of Internal Revenue.

When putting up a bakery business in the Philippines, expect to incur several mistakes and losses in the beginning.

Hence, it’s a smart move to start with whatever little money you’ve got. It’s better to act on your ideas early even with limited resources than let perfectionism paralyze you.

One advantage of starting small is you are able to test the market and learn which products sell the fastest. You will also learn the nitty-gritty of starting a bakery business without the need to open a big business from the get-go.

Remember, it’s better to start a pandesal bakery and expand later on than to start big and downsize eventually for lack of business strategy.

As your business grows, so will you. And once you’re ready for expansion, you can buy more expensive equipment for mass production and add more bread products to your inventory.

A significant percentage of your capital will be spent buying baking equipment. Since you’ll be using them daily, you must meticulously choose products that can withstand daily operations.

Depending on the size of your bakery business and the type of baked products you’ll be selling, you’ll need all or some of the following baking equipment:

• Baking trays
• Bread crusher
• Bakery oven
• Dough mixer
• Bread slicer

To help you get the best value for your money, remember these suggestions when shopping for baking equipment:

• Explore your options. Compare products in terms of price, features, and technical support. Don’t settle on one product right away without talking to different dealers.
• Buy equipment based on your daily target output. If you will be baking 1,880 pieces of pandesal, for example, you need a mixer and an oven that both can handle and process one bag of flour.
• Choose baking equipment made by local manufacturers since they can offer technical service immediately in case the equipment breaks down. In contrast, not only is imported equipment more complicated and expensive, but its manufacturer is also more likely based abroad and won’t be able to provide technical assistance right away.
• When buying second-hand baking equipment, ensure their quality is still up to snuff. One option would be to buy used equipment from baked shops that have recently expanded. Since they’ve used their old equipment for years, they can attest to their quality and offer them to you at a great discount.

The quality of the ingredients you use affects the price and taste of the baked products. Fail to pick the right ingredients, and your products may end up too bland, too expensive, or both.

In terms of cost, the price of baking ingredients fluctuates depending on demand and competition.

To keep the price of your baked products affordable despite the unpredictable market, choose locally-produced flour instead of imported varieties. The former is cheaper, fresher, and more consistent in terms of quality.

Alternatively, you can take inspiration from Yelly’s Bakeshop 5 which capitalized on bread made from vegetables. By replacing flour with mashed squash or malunggay leaves, they’ve been able to cut costs and also offer healthier, tastier, and cheaper products to their consumers.

Regardless of the type of ingredients you use, it’s important to remember that people buy bread regularly because of its familiar taste. Switching to cheaper ingredients may save you money in the short term, but the buyers you can potentially lose due to a change in taste make it not worth it.

Keep the quality of your ingredients and the process of making your products consistent. People buy quality so only give them quality all the time.

10. Price Your Products Strategically

Regardless of your target market, the price of your products should give you a good profit margin. After all, you won’t call it a business if you price them too low that you are no longer able to profit from it.

As mentioned previously, the ingredients and the formulation you use have a significant influence over how much your baked products will cost.

Under normal standards of baking a loaf of bread, one sack of flour can produce as much as 81 loaves weighing 550 grams each. If you sell it at ₱40 per loaf, you can get a gross revenue of ₱3,240.

Subtracting the overhead cost as well as the cost of materials and packaging amounting to ₱2,536.13, your gross profit margin would be ₱703.87 per bag.

a. Sample Product Costing (Pandesal Business)

The profit margin will be relatively higher if you sell pandesal that requires fewer and cheaper ingredients.

A bag of flour can produce approximately 1,800 pieces of pandesal weighing 25 grams each. Seling it at ₱2 per piece will give you a total sales of ₱3,600 per sack. From the gross earnings, you will deduct the taxes, manpower, rentals, and other overhead costs.

Even if you learned business-scale baking from the training schools or programs you enrolled in, you can’t do everything on your own.

As your bakery business in the Philippines grows, it will be indispensable to find honest, hard-working people who will take care of the daily operations while you attend to things that matter more.

Finding the right people to man your bakery business can be a matter of trial and error. You need to find experienced bakers and employees who know how to work around a bakery and will never resort to pilfering.

It’s your responsibility to teach them how to properly handle the products and ingredients. One breach in sanitation or the standard baking procedure can negatively affect the final products and eventually the reputation of your business.

To motivate your workers to do their jobs well, you should also do your part. Pay them well and treat them like a family without blurring the line between the employer-employee relationship.

Remember, a happy employee is a reflection of how you run your bakery business. And the more happy employees you have that go the extra mile for their jobs, the more happy customers you’ll gain in the long run.

With the bakery business in the Philippines becoming more saturated, you can never afford to be complacent.

Innovation means constantly upgrading your products or service to stand out from the competition. While your competitors watch your every move, innovation keeps you a few steps ahead of them through new products and ideas.

Previously, you were introduced to Yelly’s Bakeshop which uses vegetables instead of flour to make its nutritious bread. This unique selling proposition sets them apart from others who follow the same traditional baking techniques.

Whether it’s through improving customer service or offering products not found anywhere else, a bakery business should never stop conceptualizing, implementing, and testing ideas that will make them more memorable for its consumers.

• Focus on providing good products and top-notch service. Only use quality ingredients and keep the taste of your products consistent. Put yourself in your customers’ shoes and imagine how you want to be served. When all bakeries offer the same products, the only way to have an edge over others is to offer good service. Require your employees to wear proper uniforms and smile at every customer regardless of social status. Leave a good first impression, and you’ll earn repeat customers in no time.
• Be a hands-on bakery business owner. Provided that all the aspects of the bakeshop are taken care of, hard work is what will make the business last. As Metring Cuevas 6 of Cuevas Bakeshop reveals, a bakery business should be run round-the-clock because bread is a delicate product to sell. It’s not a business for the lazy so don’t open a bakery business unless you’re ready to commit your time and effort to make it a success.
• Market your bakery business to nearby stores . If you’re selling buns (monay ) or similar bread types, nearby stores may order a bulk of these bread products from your bakery. This is an effective strategy not just to introduce your product in the market but also to earn higher from wholesale orders. 
• Monitor the quantity of ingredients used in bread production. Set a target quantity of bread to produce given a certain amount of ingredients. For instance, ask yourself how many can you produce for every sack of flour. Keeping track of your usage of ingredients prevents excessive costs due to wastage.
• Bakery Equipment Canvassing. Price in the Philippines as of June 2019 [Video file]. (2019). YouTube. Retrieved October 05, 2022, from https://youtu.be/d90xsK7Qjv0.
• Jaruda, A. (Producer). (n.d.). Totoo ba na malaki ang kita sa bakery business? [Video file]. Retrieved October 5, 2022, from https://youtu.be/za4G4bjA19Y
• Magkano ang kinikita ng isang pangkaraniwang bakery? [Video file]. (2021, October 21). Retrieved October 5, 2022, from https://youtu.be/16oYmEVwGKI?t=478
• About Us. (n.d.). Retrieved October 7, 2022, from http://kambalpandesalfranchise.weebly.com/about-us.html
• My Puhunan: Nutritious bread from Yelly’s Bakeshop [Video file]. (2016, November 23). Retrieved October 7, 2022, from https://youtu.be/tWQXjpid61g
• History of Cuevas Bakery [Video file]. (2020, April 22). Retrieved October 7, 2022, from https://youtu.be/sKy1fil2h1M?t=35

Copyright Notice

All materials contained on this site are protected by the Republic of the Philippines copyright law and may not be reproduced, distributed, transmitted, displayed, published, or broadcast without the prior written permission of filipiknow.net or in the case of third party materials, the owner of that content. You may not alter or remove any trademark, copyright, or other notice from copies of the content. Be warned that we have already reported and helped terminate several websites and YouTube channels for blatantly stealing our content. If you wish to use filipiknow.net content for commercial purposes, such as for content syndication, etc., please contact us at legal(at)filipiknow(dot)net

• Start free trial

How To Write a Bakery Business Plan in 9 Steps

Learn how to write a bakery business plan, section by section. Get inspiration from examples of other bakeries.

If you consider yourself a talented baker with entrepreneurial dreams, starting a bakery is an excellent business idea you can do from home or from another brick-and-mortar space.

But before you launch into how to start a food business with your baking prowess, it’s important to write a bakery business plan.

Below, learn how to write your bakery business plan, section by section, using this business plan guide as a base. Follow along by downloading this business plan template and modifying it to fit your needs.

Why you need a bakery business plan

Not every business starts out with a formal plan, but those that do have an easier road to success. There are a few key benefits to writing a bakery business plan:

Objectively evaluates your business ideas

Writing a business plan helps you objectively evaluate your food business ideas —and researching and documenting your ideas allows you to take a step back and see if there’s really an opportunity there.

Builds a blueprint for moving forward

Your business plan serves as a roadmap for moving forward. Writing a business plan can identify the next steps you need to execute your idea. You can keep referring back to your business plan to make sure you’re on track for your original vision.

Helps figure out what you need

The process of writing a bakery business plan will also show you your gaps and needs. Listing exactly what you need to start your bakery business can show you what you’ll need to do to make it a reality.

Helps you get capital

A business plan helps you get capital, even if it’s a home bakery business plan. You won’t be able to secure funding for your business —whether from investors, lenders, banks, or even crowdfunding —without a business plan for your bakery.

Bakery business plan template

A bakery business plan sample template is immensely helpful, especially if you don’t consider yourself a writer. When you start with a template, you can see every section that you need to complete. Templates can also offer prompts to help you figure out what to say and how to say it.

This free business plan template , for example, offers a framework to simplify the job of writing out a business plan, so you can operate with confidence. It helps you analyze the market and understand how much time, money, and resources you’ll need to start and scale your bakery business.

How to write a bakery business plan

• Executive summary
• Company overview and description
• Market analysis
• Management and organization
• Products and services
• Customer analysis and segmentation
• Marketing plan
• Logistics and operations plan
• Financial plan and projections

1. Executive summary

The executive summary section of your bakery business plan summarizes the document and its contents. Remember, this is meant to highlight what’s to come in your business plan, not serve as a summary of your business idea.

Focus on your business’s core strength to draw in your reader. Keep it concise and to the point—you don’t want to lose your reader before they reach the meat of your baking business plan. Think about a hook to grab your audience’s attention.

Remember your target audience for the business plan and cater the executive summary to their needs. You might even have a few different versions of your executive summary to appeal to different readers, such as investors, lenders, or business partners.

The executive summary should be about a page in length and answer the following questions:

• What is your brand?
• What does your bakery do?
• What does your bakery want to do?
• What is the following text about?
• Why should your audience care?
• What highlights should readers be excited about?
• What do you sell and how is it different from your competitors?
• Who are your customers?
• What is your marketing strategy?
• What is your current and projected financial state?
• How much money do you need to get started?
• Who is involved in the bakery?

2. Company overview and description

This part of your bakery business plan should drill down further into your business idea. Here, you’ll want to identify your bakery’s business structure — sole proprietorship, li imited liability corporation (LLC) , general partnership, etc.—and business model .

You’ll also use this section to talk about the baked goods industry and about your specific niche within it—whether you’re offering keto-friendly, gluten-free, or otherwise lifestyle-specific items; cakes; catering; frozen desserts; savory pastries, etc. Cape Whoopies , for example, sells gourmet whoopie pies made in Maine. Its bakery business plan would make note of that in the company description section.

The company description should also outline your vision and mission statement and your value proposition . Your vision and mission statement encompass what you hope to do with your bakery, and your value proposition sums up why people would want to buy from you.

Use this section to talk about your team, including key personnel and their salaries. The bakery La Monarca , for example, would identify its two founders as well as any board members or employees.

Finally, list your short- and long-term business goals. Your business goals should be quantifiable and measurable, eliminating subjectivity. You’ll also want to put an estimated timeline for your business goals and when you hope to accomplish them.

3. Market analysis

The market analysis section of your bakery business plan quantifies how big your potential market is and validates that there’s enough demand for your business.

This section of the bakery business plan should explore the following:

• Industry trends
• Laws and regulations for the food industry
• The demographics of your target customer
• Where, why, and how they shop
• The size of your target market
• The price people are willing to pay for what you sell

You may also include a SWOT analysis , which identifies your strengths, weaknesses, opportunities, and threats, as well as a competitive analysis , outlining the competitive landscape and where your bakery fits in.

business structure of your bakery and whether you’ve elected to incorporate as a sole proprietorship, a limited liability corporation (LLC) , a corporation, or something else.

Don’t stress over the name of your bakery business too much yet—you don’t have to use your official incorporated name as your public-facing name forever. You can always file for a DBA (doing business as) or just publically drop the “Inc.” or “LLC” at the end of your name. Balkan Bites , for example, is technically an LLC called “Balkan Bites LLC.”

You’ll also want to include information about the makeup of your team, even if you plan to run the business yourself. Here are some other people and entities you might include:

• Owner . Who is the owner of the bakery?
• Business partner(s) . List and identify the role of any business partners you plan to work with. Make sure you note the ownership percentage breakdown.
• Management team . It helps to visualize the team with an organizational chart to show how roles and responsibilities are structured and contribute to your bakery’s bottom line.
• Financial advisers . Maybe they’re not in-house, but you might have contracted financial advisers or accountants helping you to manage finances.
• Employees . Even if you don’t plan to open your bakery business with employees, you might have plans to hire staff in the future. Make note of that in this section.

5. Products and services

In the products and services, you’ll list which products and services you’ll sell through your bakery. You’ll likely sell something like cakes, cookies, chocolates, pies, or even baking kits, and potentially branded merchandise products .

As far as baked goods go, consider more narrowly defined niches within the overarching bakery niche. For example, products that are tied to a specific culture, like a bakery that specializes in Italian cookies or French pastries, or event-related baked goods, like wedding or birthday cakes, all present excellent niches. You could also offer gluten-free, sugar-free, organic, or dairy-free goods.

The business plan should cover how many different types of products you’ll offer, and if you plan to release new recipes, or limited-edition or seasonal items.

You’ll also want to consider other non-bakery items. Dough Dealer , for example, doesn’t actually do any baking, so it doesn’t sell any baked goods. Instead, it sells kits with baking supplies online, as well as merchandise. You can do the same thing with a print-on-demand company .

6. Customer analysis and segmentation

The customer segmentation section of your bakery business plan should discuss the different groups of shoppers you intend to target with your bakery. Include the following information about each of your segments:

• How old they are
• Where they live
• Where they work and what they do
• Education level
• What technology they use
• Their values, beliefs, and opinions
• Common behavior patterns
• How they shop

Here’s what a customer segmentation section might look like: Levain serves a few distinct geographic markets in Puerto Rico, including San Juan, Aguadilla, Mayagüez, and Rincón. Each of these regions represents a specific customer segment for the bakery, and they may have different shared characteristics. So Levain adjusts its promotional and marketing strategy according to its audience.

7. Marketing plan

Your marketing plan is a high-level overview of how you plan to promote your bakery. The marketing plan should outline which channels you plan to use for marketing and advertising, as well as any budgets you might have. At a minimum, this section of your bakery business plan should define the following:

• Price : How much your products cost and why.
• Product : What you’re selling and how you differentiate it from other goods in the market.
• Promotion : How you’ll get your products in front of your ideal customer.
• Place : Where you’ll sell your products, including online and in-person.

Zero-sugar cookie brand Sundays used email marketing to promote its bakery business and build buzz pre-launch. The brand allowed people to subscribe so they would be alerted when the online store launched. This approach is also an excellent tactic for email list-building .

Here are some more resources to help assemble the marketing section of your bakery business plan:

• How to Build a Marketing Plan That Actually Works
• 7 Inspiring Marketing Plan Examples (and How You Can Implement Them)
• Driving Growth: 12 Best Marketing Strategies Any Small Business Can Execute

8. Logistics and operations plan

Your logistics and operations plan outlines exactly how you’ll create and sell products and fulfill orders. Be sure to address each of the following:

Identify where you’ll purchase the raw ingredients you need to make your baked goods and where they’re produced. Will you purchase anything pre-made from suppliers or make everything from scratch?

Outline whether you’ll make, wholesale, or even dropship your products. Describe how long it takes to receive raw ingredients and how long it takes to produce your baked goods. You’ll also want to think about a contingency plan: How will you handle a busy season or an unexpected spike in demand?

Where will you and any team members work? Do you plan to have a physical retail space as well as the bakery? If yes, where? Will they coexist or exist in different locations?

List which tools and technology you require to get you up and running: think items like ovens, mixers, refrigerators, etc., as well as business tools like a POS system or card reader. You’ll even list items like lightbulbs, counters, and anything else you’ll need to purchase to open your bakery.

Shipping and fulfillment

Will you be handling all the fulfillment tasks in-house or will you use a third-party fulfillment partner? Will you have a space for in-person shopping or pickup?

How much raw ingredients will you keep on hand, and where will they be stored? How much finished product can you keep on hand, and where? How will you ship products to partners if required, and how will you approach inventory management ?

The bakery Wildgrain , for example, operates on a subscription-based business model. The brand outlines how it works on its website, information that would also be suitable for the logistics and operations section of its bakery business plan.

The sourdough bakery Florets offers a subscription plan as well as in-person pickup at its Auckland-based bakery location or at a weekly farmers market.

The Protein Bakery also has a few methods for fulfillment. Customers can visit its New York City–based retail shop or order online, and other businesses can also purchase its products wholesale.

9. Financial plan and projections

The financial plan shows possible funders that you’ve done your math homework and crunched the numbers to figure out how much money you need to launch, how much you need to operate, and whether you can turn a profit.

The financial plan typically includes the following financial statements :

• Income statement
• Balance sheet
• Cash flow statement

Here’s a spreadsheet template that includes everything you’ll need to create the above financial statements, including some sample numbers. Just edit it as needed.

When putting together your financial plan and statements, be realistic and specific. While you want to be optimistic about your projected success, it’s equally important to be pragmatic. Use the information you’ve learned developing other parts of your bakery business plan to calculate accurate, achievable numbers.

Launch your bakery business with Shopify

Starting your new venture with a successful bakery business plan is a surefire way to set yourself up for success from the get-go. Your bakery’s business plan will keep you and your team accountable and aligned with your vision and goals.

When you’re ready to launch, build your website on Shopify. With Shopify, you can seamlessly integrate your retail and ecommerce tech stack to maintain complete control of your growing business.

Bakery business plan FAQ

How do i start my own bakery business plan, how much money can you make owning a bakery, what equipment is needed for a bakery.

• Food processor
• Dough proofer
• Dough sheeter
• Bread slicer
• Refrigerator and/or freezer
• Baker’s rack
• Baking pan and dishes
• Bowls, measuring cups, spoons, spatulas, etc.
• Pastry bags
• Work counters
• Dry storage

Is a bakery business profitable?

Keep up with the latest from Shopify

Get free ecommerce tips, inspiration, and resources delivered directly to your inbox.

By entering your email, you agree to receive marketing emails from Shopify.

popular posts

The point of sale for every sale.

Subscribe to our blog and get free ecommerce tips, inspiration, and resources delivered directly to your inbox.

Unsubscribe anytime. By entering your email, you agree to receive marketing emails from Shopify.

Latest from Shopify

Aug 25, 2024

Aug 23, 2024

Learn on the go. Try Shopify for free, and explore all the tools you need to start, run, and grow your business.

Try Shopify for free, no credit card required.

• List Your Business

How to Start a Bakery Business in the Philippines

Did you know bread is second to the most common food staple next to rice that is eaten every day in the Philippines? It makes sense, since bread is cheap to make and to sell! It is part of a Filipino’s breakfast and merienda: pan de sal, monay, ensaymada, and other local delicacies! They are easily prepared and can be found just right next door at any typical neighborhood.

A good bakery maintains the freshness of its ingredients as well as the consistent quality of the product at each batch. Taking care of a bakery will take care of you, as they say. However, just like any other business, you have to know the necessary knowledge in operating one.

Which is if you want to start a bakery business in the Philippines, you should continue reading on to get yourself in the feet of a true baker! This business is a profitable venture that is perfect for those experienced entrepreneurs at baking, but just about any kind of person, even a newbie, can try their hands at baking!

Continue reading on below to start your journey!

Know the investment capital

The money needed to start a bakery business in the philippines.

A bakery business fetches a hefty price: about P150,000. This is only if you plan to establish it in a commercial unit. If you are able to provide a space with a lower rental fee or even plan to do it at the confines of your own home, then do as you please. Doing so will provide you a lower amount of investment capital needed.

Most of the capital will be invested into the basic operation of a baking business: from the materials to the equipment.

Invest in the right equipment!

Needed equipment for a bakery biz.

The equipment such as the baking oven does not need to be an expensive state of the art machine that produces a motherlode of baked goods! You can choose to buy second hand equipment from other bakeries that have surpassed their capacity and are willing to sell them at a lower price.

The benefit of a second hand equipment cannot be understated. Not only are you able to save money from purchasing a newer model, but also the chances are high that when the equipment is in need of repair, the parts are likely to be found as they are a common model as of the time of purchase.

Find a good location

A bakery business needs foot traffic to succeed.

Just like any other business, you want to rake in all the money! How do you do that? By placing it right at where there is a lot of people! Bakeries are often profitable when placed near a church or school. Furthermore, those drivers of jeepneys, taxis, and tricycles are also likely to survey your baked goods in search a good breakfast and merienda!

In essence, the place where the bakery is established should be one where there is a heavy amount of foot traffic. You always want a constant source of customers as to not waste a day’s worth of baked goods.

Know your market

Market research will help you jump start your bakery business.

As an addendum to the previous point, not every kind of bread is eaten by everyone, especially in a different area. For example, the drivers from the previous paragraph would highly favor a freshly baked pan de sal in the morning. Baking whole wheat or French bread is expensive for the average Juan and are also preferred by the wealthy!

Knowing this, you should do research on the area of your business on whether or not they have a certain preference toward a specific kind of bread. Research will save you a lot of time and money from baking unnecessary batches of bread in the future.

Register your business!

Paperworks, licenses and permits.

Businesses, big or small, are required to register for sole proprietorship at the Department of Trade and Industry (DTI), and at the Securities and Exchange Commission (SEC) for those who opt for partnerships and corporations.

Furthermore, you will also need a mayor’s permit and sanitary permit from your local municipality where your business is located.

The Bureau of Internal Revenue (BIR) will also require a Tax Identification Number (TIN) from your business, so you must register at the nearest BIR office available.

Lastly, since you are operating a business handling food, you need a license as a “food manufacturer”, a License to Operate (LTO) from the Bureau of Food and Drugs (BFAD).

Don’t be afraid!

All corporations once started small, whether they liked it or not. Rome was not built in a day, as the old saying goes. So, invest in a bakery business step by step in small amounts of capital first, looking for ways to save money and get the best bang for your buck! As you follow these tips, your success will eventually come into fruition!

7 responses to “How to Start a Bakery Business in the Philippines”

Need one business plan

I really want to open a bakeshop

How much does a business permit for Bakehouse usually cost?

I want to know more about starting a bakery in Philippines

Planning to start ang bakery. Need some advice on how to properly manage it.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Check These Related Posts!

Find Us on Facebook

Price Drop! Food Carts Starting at 39k!

Bakery Business Plan PDF Example

• July 22, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful bakery. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your therapy bakery’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a bakery business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the food&beverage industry, this guide, complete with a business plan example, lays the groundwork for turning your bakery concept into reality. Let’s dive in!

Our bakery business plan is designed to encompass all crucial elements required for a thorough strategic approach. It details the bakery’s operations, marketing strategy, market environment, competitors, management team, and financial projections, ensuring a holistic view of the business’s path to success.

• Executive Summary : Offers an overview of your bakery’s business idea, market research , management team, and financial plans.
• Bakery & Location: Describes your bakery’s layout, features, and why its location is perfect for customers.
• Operations: Outlines daily bakery operations, including baking schedules, staffing, and ingredient sourcing.
• Key Stats: Provides figures on the size and growth of the bakery market.
• Key Trends: Points out new trends in the bakery industry, such as the rise in health-conscious and specialty products.
• Key Competitors: Discusses major nearby bakeries and how your bakery offers something different.
• SWOT : Analyzes strengths, weaknesses, opportunities, and threats related to your bakery.
• Marketing Plan : Outlines methods for promoting your bakery and keeping customers coming back.
• Timeline : Lists important goals and milestones from the beginning through the first year.
• Management: Shares info on who runs the bakery and their responsibilities.
• Financial Plan: Forecasts the bakery’s financial outlook over 5 years, including income, profit margins, and main expenses.

Bakery Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your bakery’s business plan, offering a concise overview of your bakery and its offerings. It should detail your market positioning, the range of baked goods and confectionery items you offer, its location, size, and an outline of day-to-day operations.

This section should also explore how your bakery will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your bakery’s unique selling points that differentiate it from these competitors. These could include special dietary options like gluten-free or vegan products, artisanal or locally sourced ingredients, or a particular specialty in certain types of baked goods.

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the bakery’s success. This could involve their culinary expertise, business management experience, or community relations. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your bakery’s financial plan.

Bakery Business Plan Executive Summary Example

Business Overview

When detailing the business overview in your executive summary, it’s crucial to provide clear and concise information. This includes the name of your bakery, its location, and an overview of daily operations.

These details not only introduce your business but also set the stage for its unique qualities. Indeed, a unique selling proposition (USP) is what sets your bakery apart from the competition. Whether it’s your focus on artisanal techniques, your range of gluten-free options, or your commitment to sustainability, your USP should be a focal point of your executive summary. It’s what captures the interest of your audience and showcases the unique value your business brings to the market.

Example: For instance, “Sweet Temptations Bakery,” located in downtown Springfield, operates from a 1,500 sq. ft. space on Main Street. It opens early at 6 AM, serving a range of traditional and health-conscious baked goods. Their USP is the unique combination of classic baking styles with modern trends, offering gluten-free and vegan options alongside traditional pastries.

Market Overview

Understanding and presenting the market size , growth trends, and industry dynamics are integral parts of the market analysis .

This section should highlight the potential of the U.S. bakery market, backed by relevant data like market value and growth rates. Discussing industry trends, such as the rising demand for organic ingredients or innovative baking techniques, provides insight into the evolving landscape and where your bakery fits within it.

Equally important is the competitive landscape. Your executive summary should identify key competitors and explain how your bakery positions itself in this environment. Whether you focus on niche products, exceptional customer service, or unique flavor combinations, this is your opportunity to showcase how your bakery is poised to stand out in a crowded market.

Example: Consider Sweet Temptations Bakery in the U.S. bakery market, valued at $30 billion with a 5% annual growth rate. While competing with local bakeries and national chains in Springfield, Sweet Temptations differentiates itself by offering products like avocado-chocolate muffins and quinoa bread, catering to health-conscious consumers.

Management Team

The management team’s background and expertise are significant assets to your business. In your executive summary, highlight the key qualifications and experiences of your team members.

This might include your co-founder’s decade of experience in food service management or your head baker’s formal culinary training. Demonstrating the team’s expertise not only builds credibility but also assures potential investors and partners of your bakery’s capability to succeed.

Example: At Sweet Temptations, co-founders Jane Doe and John Smith lead the team. Jane, an MBA graduate, has 15 years of experience in the hospitality industry, while John, a culinary school graduate, brings his expertise from working in renowned European bakeries, adding substantial value to the bakery’s management and product innovation.

Financial Plan

The financial plan overview should succinctly summarize your financial goals and projections, including revenue targets and profit margins, to provide a clear picture of your bakery’s financial trajectory.

Example: Sweet Temptations aims for $500,000 in annual revenue by year three, targeting a 12% EBITDA margin. The financial strategy includes an initial investment in high-quality baking equipment and a welcoming shop atmosphere, with sales growth driven by effective marketing and community involvement, positioning the bakery for profitability and local acclaim within five years.

For a Bakery, the Business Overview section can be concisely divided into 2 main slides:

Bakery & Location

Briefly describe the bakery’s physical environment, emphasizing its design, warmth, and the inviting atmosphere that welcomes customers. Mention the bakery’s location, highlighting its accessibility and the convenience it offers to customers, such as proximity to community centers, schools, or ease of parking.

Explain why this location is advantageous in attracting your target clientele, which might include local residents, businesses looking for catering options, or foot traffic from nearby shopping areas.

Detail the range of baked goods and products offered, from bread and pastries to custom cakes and specialty items. Outline your operational strategy, including sourcing of ingredients, baking schedules to ensure freshness, and any unique services such as custom orders or catering.

Discuss your pricing strategy , ensuring it reflects the quality of ingredients and craftsmanship involved and matches the market you’re targeting. Highlight any special offerings, loyalty programs, or community events that provide added value to your customers, encouraging repeat visits and customer loyalty.

Industry size & growth

In the Market Overview of your bakery business plan, begin by assessing the size of the bakery industry and its potential for growth. This evaluation is essential for grasping the market’s extent and pinpointing opportunities for expansion.

Analyze factors such as the increasing demand for baked goods, both traditional and innovative, and how consumer preferences are shaping the industry.

Key market trends

Continue by discussing recent market trends that are influencing consumer behavior and preferences in the bakery sector. This might include a growing interest in artisanal and craft baked products, the surge in popularity of gluten-free and vegan options, and the integration of international flavors and ingredients into traditional bakery products.

Highlight the demand for high-quality, fresh, and specialty baked goods that cater to diverse dietary needs and cultural tastes, as well as the trend towards more health-conscious and sustainable baking practices.

Key competitors

A competitive analysis is not just a tool for gauging the position of your bakery in the market and its key competitors; it’s also a fundamental component of your business plan.

This analysis helps in identifying your bakery’s unique selling points, essential for differentiating your business in a competitive market.

In addition, the competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.

Identifying Your Competitors in the Bakery Industry

Identifying competitors is the first step in understanding your position in the bakery market. Begin by mapping out local bakeries and pastry shops. For instance, if your bakery specializes in artisan bread, your direct competitors include nearby bakeries known for their bread, as well as larger grocery stores with in-house bakeries. Don’t overlook indirect competitors such as cafes or dessert shops that offer a range of baked goods.

Use online tools like Google Maps to get a geographical sense of competitor distribution. Platforms like Yelp and TripAdvisor offer customer reviews and ratings, providing insights into competitors’ strengths and weaknesses. For example, if several reviews commend the cozy ambiance and fresh pastries at “Sweet Treats Bakery,” this is a key strength of your competitor.

Bakery Competitors’ Strategies

Analyzing the strategies of these competitors involves several aspects:

• Baked Goods Offerings : Examine their range of baked goods. If “Healthy Bakes” down the street is gaining popularity with its gluten-free and vegan options, it indicates a market trend towards health-conscious baking.
• Baking Techniques : Consider the baking techniques and styles. A bakery like “Old World Breads” that focuses on traditional, handcrafted bread might appeal to a different customer base than one like “Modern Bakes,” known for innovative and trendy pastry creations.
• Pricing Strategy : Compare your prices with those of competitors. Are your baked goods priced similarly to “Budget Bites Bakery” or are they more aligned with the premium offerings at “Gourmet Pastries”?
• Marketing Tactics : Look at how competitors market their products. Do they have a strong social media presence, or do they rely more on local community engagement and word-of-mouth?
• Customer Experience : Assess the in-store experience. For instance, “Cozy Corner Bakery” might be known for its inviting atmosphere and friendly staff, enhancing the customer experience.
• Operational Efficiency : Observe if competitors are using technology or innovative processes to streamline baking and serving, such as “Efficient Eats” with its online ordering system.

What’s Your Bakery’s Value Proposition?

Reflect on your bakery’s unique value proposition . Maybe your bakery is known for its signature sourdough bread, or perhaps you offer a unique range of international pastries that aren’t available elsewhere in your area.

Identify market gaps through customer feedback and industry trends. For example, the growing interest in artisan and locally sourced ingredients could represent a market opportunity if competitors are not addressing this demand.

Consider your location: A bakery in a busy downtown area might focus on quick service and grab-and-go items, while a bakery in a residential neighborhood could capitalize on a more relaxed, community-oriented atmosphere.

First, conduct a SWOT analysis for the bakery , highlighting Strengths (such as artisanal baking skills and a unique range of products), Weaknesses (including potentially high ingredient costs or stiff competition), Opportunities (for example, a growing interest in specialty and health-conscious baked goods), and Threats (such as fluctuations in raw material prices or changes in consumer spending due to economic conditions).

Marketing Plan

Next, formulate a marketing plan that details strategies for attracting and retaining customers through targeted advertising, seasonal promotions, a compelling social media presence, and engagement with the local community. Consider loyalty programs, baking workshops, and collaborations with local businesses as part of your promotional activities.

Marketing Channels

Explore diverse marketing channels to connect with your audience and promote your bakery:

Digital Marketing

• Website and Online Presence: Your bakery’s website should be more than just an online menu. It should be a reflection of your brand story and values. Incorporate high-quality images of your delectable baked goods, customer testimonials, and an easy-to-navigate layout. Implement an online ordering system for pickups or deliveries to enhance convenience for customers.
• Social Media Engagement: Utilize platforms like Instagram, Facebook, and Pinterest to share high-quality images of your baked goods, and behind-the-scenes content, and interact with customers. Engage with your audience by responding to comments and messages promptly.

Local Advertising

• Flyers and Local Partnerships: Distribute well-designed flyers and brochures not only in high-traffic areas but also in locations aligned with your target audience’s interests, such as fitness centers, coffee shops, or local events. Collaborate with nearby businesses for cross-promotions or joint marketing efforts, allowing you to tap into each other’s customer bases.
• Community Engagement: Participate in local events, farmers’ markets, or charity bake sales to increase visibility and connect with the community. Sponsor or host baking workshops or educational sessions to engage with potential customers.

Promotional Activities

• Seasonal Offers : Launch special promotions tied to seasons or holidays, such as ‘Holiday Cookie Gift Boxes’ or ‘Spring Cupcake Flavors’. Create limited-time offers that create a sense of urgency and exclusivity.
• Loyalty Programs: Loyalty programs are effective tools for fostering customer loyalty. Implement a tiered rewards system or a punch card where customers earn points for each purchase, redeemable for discounts or free items. Personalize rewards based on customer preferences to enhance engagement.

Sales Channels

Optimize sales channels to boost revenue and customer satisfaction:

In-Store Upselling

• Value-Added Services : Train your staff to recommend add-ons like specialty spreads for bread, custom cake decorations, or exclusive dessert pairings during customer visits. Offer tastings or samples to encourage additional purchases.
• Product Displays: Enhance the in-store experience by designing product displays that are visually appealing and informative. Incorporate storytelling elements to highlight the ingredients or craftsmanship behind your baked goods. This approach not only drives sales but also educates customers about your products.

Online Sales and Services

• E-commerce Integration: Set up an intuitive and secure online ordering system for specialty items, customized cakes, or pre-packaged baked goods for pickup or delivery. Ensure a seamless checkout process to reduce cart abandonment.
• Virtual Consultations: Offer online consultations for customized cake designs or event catering. Provide options for virtual tastings or meetings to discuss personalized requirements, ensuring a personalized and convenient experience.

Membership and Rewards

Encourage repeat business and foster customer loyalty:

• Subscription Models: Develop subscription-based models offering regular deliveries of baked goods or exclusive access to new products. Create tiers with varying benefits to cater to different customer preferences.
• Reward Programs: Institute a digital loyalty system rewarding customers with points for purchases redeemable for discounts or complimentary items. Send personalized offers based on customers’ purchase behavior to enhance engagement.

Finally, establish a detailed timeline that marks key milestones for the bakery’s launch, marketing initiatives, customer base development, and potential expansion goals. This timeline should guide the business towards achieving its objectives with precision and clarity, ensuring systematic progress in a competitive market.

The Management section focuses on the bakery’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the bakery towards its financial and operational goals.

For your bakery business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your bakery’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your bakery business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

Related Posts

Steakhouse Business Plan Template & PDF Example

• July 24, 2024

Bubble Tea Business Plan Template & PDF Example

Bar Business Plan Template & PDF Example

Privacy Overview

What’s a Bakery Business Plan and Why Do You Need It?

• Post author: HICAPS
• Reading time: 20 mins read

Imagine owning a bakery business and enjoying fresh bread’s aroma, intricate pastries, and a dream realized. But behind these delights lies the foundation of success: a detailed bakery business plan. 

You see, making a bakery business plan isn’t just a formality. It’s a guiding roadmap that drives your business towards growing and making profits. Unfortunately, not every aspiring bakery owner knows how to make a bakery business plan. But don’t you worry, because we got your back. 

In this post, we’ll explain its components, importance, and how you can create one. We’ll also show you a sample so you know what each part looks like. 

What’s a Bakery Business Plan?

A bakery business plan refers to an in-depth document that contains the essence of your proposed bakery busines s. It serves as a vital roadmap for its launch and ongoing operation. 

This comprehensive plan includes all relevant aspects of your business. For one, it clarifies your business idea. It also explains its unique selling propositions, the current market scenario, your operational plans, and the financial projections for your bakery.

At its core, a bakery business plan articulates your bakery’s mission and vision, providing clear business goals and actionable steps to achieve them. It also helps refine your business idea and align all your activities towards your objectives. Detailing your product offerings helps clarify your bakery’s niche and competitive advantage.

The plan also delves into thorough market research, outlining key market trends, customer demographics, and competitor analysis. This analysis helps you understand the market landscape and position your bakery to attract and retain your target customers.

In addition, the plan outlines your operations section. This includes your supply chain, inventory, logistics, and daily operations. Describing each process gives you a clear view of your operational needs and costs.

Lastly, the plan involves a comprehensive financial projection. It details your startup costs, profit model, and revenue projections. This section also helps potential investors or lenders understand your business.

Why Do You Need a Bakery Business Plan?

Now that we finished the definition, you may wonder why you need a bakery business plan. Here are the top reasons why you need one: 

Vision and Strategy

A bakery business plan takes your ideas and turns them into concrete strategies. Since it explains your mission, vision, and objectives, you’ll know exactly what to do to meet them. 

It also serves as a roadmap that details the actions and resources you need to reach your goals. In addition, the plan helps you anticipate problems or challenges, letting you make strategies to prevent them from happening. This allows you to go through difficult times and drive your bakery toward success.

Financial Guidance

A bakery business plan includes financial forecasts that let you understand the financial aspects of running a bakery. 

These aspects include startup costs, operating expenses, and profit projections. The plan also contains milestones like your break-even point— the time when your revenue becomes equal to your expenses. These projections guide you in making financial decisions, monitoring your financial health, and making necessary changes. 

Investments

If you want financing from others, you must have a well-crafted business plan. Remember, you must have a business plan to show whether you approach banks or private investors.

The plan should show how their money will be used. It should also explain the risk levels and how they can get a return on their investment. In a gist, your business plan must communicate your vision and commitment, which improves your credibility and increases your chances of getting funding.

Operational Planning

Your bakery business plan details the day-to-day operations of your bakery. This includes supply management, production, quality control, staff requirements, and opening hours. 

Your plan should also include information about your bakery’s setup to make sure that it complies with health and safety regulations, licensing, and other legalities. In short, having a comprehensive plan ensures smooth and efficient operations.

Marketing and Sales Strategy

Competition in the baking industry can be intense. But don’t fret because your business plan describes marketing and sales strategies. It shows how you will attract and retain customers. 

These strategies include branding, paid advertising, organic promotions, social media campaigns (e.g., TikTok and Instagram ), rewards, loyalty programs, and more. Your business plan also outlines your unique selling proposition (USP) and how you can communicate it to your target market.

How To Write a Bakery Business Plan

We’re now at the nitty-gritty part of this guide. In this section, we’ll explore the different parts of a bakery business plan and how you can make them.

Executive Summary

Often just one or two pages long, the executive summary is your business plan’s overview. It should include the following:

• Your business’s core components (e.g., vision and mission)
• Products you want to sell
• Your target market
• Brief financial highlights

Even though it’s the first section of your business plan, we advise you to write it last so you can summarize the most crucial points from each section.

Company Overview

This part dives into the specifics of your business. 

You must discuss the following in your company overview:

• Your business’ legal structure (e.g., sole proprietorship or LLC)
• The type of bakery (retail, wholesale, specialty, etc.)
• Its physical location
• A brief history if it’s not a new business

This part should also explain your unique selling proposition (USP), which sets you apart from competitors. This can be your recipes, location, branding, or a unique concept like a pet bakery cafe or restaurant .

Market Analysis

You must do a thorough market analysis to understand the bakery industry’s current landscape.

Your market analysis must include the following details:

• Industry size
• Growth rate
• Key consumer demographics

You should also provide a competitive analysis that shows direct and indirect competitors, their strengths, and how you plan to differentiate your bakery.

Management and Organization

As its name implies, this part includes how you plan to organize and manage your staff. You should describe the following under this part: 

• Your team’s structure, including owners, managers, bakers, baristas, and other staff
• Experience, skills, and unique qualifications each team member brings
• Specific roles and responsibilities
• Roles and responsibilities of advisory members or mentors (if any)

Products or Services

Describe the following under this section: 

• Range of products you’ll offer (pieces of bread, cakes, pastries, sandwiches, etc.)
• Any services like custom cake orders or catering
• Sourcing strategy—will you use local, organic ingredients? 
• Pricing strategy and how it compares to competitors

Target Customers

You also need to understand who you’re selling to, so do the following:

• Identify your ideal customers— perhaps busy professionals looking for quick treats or parents who want birthday cakes for their children
• Demographics
• Psychographics
• Buying habits
• Why your products and/or services will appeal to them

Marketing Plan

This section details your marketing and sales strategies. It should include the following: 

• Marketing methods (e.g., traditional methods like print advertising or signage or digital methods like a website, email newsletters, and social media campaigns)
• Partnerships with local businesses
• Loyalty programs
• Events to draw customers

Logistics and Operations Plan

This is the behind-the-scenes section where you need to outline the following: 

• Equipment needed
• Staffing requirements
• Operating hours
• Legal requirements such as health codes, permits, or insurance

Financial Plan

In this section, you must detail the following:

• Income projections
• When you anticipate the business will become profitable
• Sales forecast
• Personnel plan
• Cash flow statement
• Income statement
• Balance sheet.

Potential investors will pay close attention to this section, so be realistic and conservative in your estimates.

Writing a comprehensive business plan for your bakery can be challenging, but you must do it. It’ll give you a solid plan of action and potentially reveal areas for improvement. It can also be a key document for attracting investors or securing funding.

Bakery Business Plan Sample

Creating a business plan can be difficult, but we’re here to help. Check out this bakery business plan sample from which you can get ideas from: 

Business Name

Delightful Bakes

Delightful Bakes is a boutique bakery that specializes in creating a diverse menu of bakery items, with particular attention to organic, gluten-free, and vegan delicacies. Our vision is to offer a balance of healthy and indulgent baked goods that satisfy every palate. Our primary mission is to cater to a broad spectrum of increasingly health-conscious consumers without compromising taste and quality.

Founded by couple-turned-bakers Tom and Pia, Delightful Bakes combines their passion., knowledge, and experience to create unique moments. Delightful Bakes commits to crafting artisanal baked goods while fostering a sense of community. The bakery operates from a cozy shop downtown that doubles as the baking facility. 

While the bakery market continues to flourish, our market research reveals a gap in Manila for bakeries offering a wide range of health-conscious and dietary-specific options. Delightful Bakes aims to fill this void by targeting consumers seeking healthier alternatives and those following specific diets. We also plan to cater to those who prefer traditional bakery items.

The owners, Tom and Pia, manage all key aspects of Delightful Bakes. Tom handles product development and bakery operations, while Pia does marketing, financials, and customer relations. A dedicated baking, sales, and customer service team helps them. 

We offer an array of baked goods― from breads and pastries to cookies and cakes. Delightful Bakes specializes in organic, gluten-free, and vegan options. We also aim to cater to dietary preferences without compromising flavor. On top of that, we offer custom cake orders for events and celebrations.

Our customer base includes health-conscious people, those with dietary restrictions, and people who love artisan-baked products. While we focus on serving Manila, we also aim to attract Filipino and international tourists.

Our marketing strategy includes digital marketing, using platforms like Instagram and Facebook to promote our products and engage with customers. Delightful Bakes will also join local events and build relationships with local businesses for cross-promotion. Additionally, our loyalty program includes perks and discounts for regular customers, which aims to boost retention.

Delightful Bakes’ ingredients are sourced from trusted local suppliers. We bake daily to ensure freshness. In addition, friendly staff members manage the sales counter and the kitchen staff follows high standards of cleanliness. We also follow all local health and safety regulations while prioritizing efficiency and sustainability in our operations.

We’ve financed the startup costs through personal savings and a small business loan. We expect revenue from in-store sales, online orders, and custom services. We project reaching a break-even point by the end of the first operating year and anticipate steady growth after that.

Frequently Asked Questions

Here are the sections you must complete to write a business plan for a bakery: Executive Summary Company Overview Market Analysis Management and Organization Products or Services Target Customers Marketing Plan Logistics and Operations Plan Financial Plan

The introduction of a bakery business includes the vision and mission, the products you want to sell, your target market, and brief financial highlights.

A bakery business, on average, is low- to medium-profitable. Usual profit margins for a bakery business range between 4% and 9%.

A bakery business plan is far more than a document— it’s a roadmap that guides every part of your business. It can turn your dream into actionable steps, prepares you for financial realities, helps attract investors, identifies target customers, makes way for efficient operations, and gives you a marketing edge. 

Not having a bakery business plan is like navigating the sea without a compass. But with it, you’re setting the stage for success in the competitive bakery industry. So, what are you waiting for? Grab a pen or your laptop and start creating your business plan now. All the best!

Do you want to increase your bakery’s sales and protect it from industry problems? Check out this free bulletproof guide that we made!  

About HICAPS

Over the years, HICAPS has helped bakers and businesses make delicious products by offering ingredients like ChiffonAide Cake Oil , Magic Whizk Whipping Cream , Red Velvet Flavor Emulco , and Instabake Brownie Mix . 

HICAPS also provides tools and resources to valued partners, such as the free “How to Increase Your Sales Amidst the Pandemic” E-book and free dealer locator that helps look for baking ingredients near me . 

Want more free tips and tutorials? Follow us on Facebook at Hicaps Mktg. Corp. and on YouTube at HicapsTV . Want to be one of our valued partners? Fill this form out. Looking forward to talking to you soon!

Please Share This Share this content

• Opens in a new window X
• Opens in a new window Facebook
• Opens in a new window Pinterest
• Opens in a new window LinkedIn

You Might Also Like

Philippines Economic Growth 2023: A Rising Asian Powerhouse

Top 5 Buttercream Flavors Using HICAPS Cake Ingredients

The Philippine Competition Act: Upholding Market Fairness

Leave a reply cancel reply.

• EXPLORE Random Article
• Happiness Hub

How to Start a Bakery Business in the Philippines

Last Updated: April 5, 2022 Approved

wikiHow is a “wiki,” similar to Wikipedia, which means that many of our articles are co-written by multiple authors. To create this article, 13 people, some anonymous, worked to edit and improve it over time. There are 7 references cited in this article, which can be found at the bottom of the page. wikiHow marks an article as reader-approved once it receives enough positive feedback. In this case, 90% of readers who voted found the article helpful, earning it our reader-approved status. This article has been viewed 122,620 times.

Are you planning to put up a business? Why not try a bakery? It is profitable, can be started at home and allows the owner to grow the business gradually as his capital, interest and knowledge of the business increases. With bread being the country’s second staple after rice, the bakery business is one of those ventures that is sure to bring multiple returns with just a minimal investment. By taking the time to learn the craft, you too can start your own bakery business and potentially make good money out of it. Filipinos love to eat bread and the business minded should keep this in mind. Pandesal is the usual breakfast fare most Pinoys can’t do without before starting their days. Snacks are usually a few slices of bread taken with coffee, soft drinks or fruit juice. An aspiring bakery businessman should therefore have these two products in his list and expand from there. In fact, any true-blue Pinoy should be able to recall a morning of eating hot pandesal with his or her family, an afternoon of eating siopao with friends, or the surprise of opening his or her lunch box at school and seeing a large, puffy, creamy ensaymada. In the Philippines, breads are not just for eating. They are a tradition.

Expert Q&A

• You don't need Millions of Pesos to start a bakery business. Start small, there are many bakery business opportunities who are enabling Franchise or even Partnerships for example Kambal Pandesal of San Miguel Mills. They offer low-cost bakery business which is affordable to all Filipinos, and take note they also have equipments in their Package, Free- Site Assistance and Monitoring to their Business Partners which will make it easier for the owners to handle their business easily because of the ready-made system. Call 0916-131-4764/0999-998-1553 and Start your Own Kambal Pandesal Bakery Business Thanks Helpful 64 Not Helpful 12
• To know how will you serve the people in your business, simply imagine yourself as a customer, How do you want to be treated? What are the breads that you'll buy? How will they be served? What are the gazes and treatment of the employees? Thanks Helpful 60 Not Helpful 11
• Do the Survey. Ask people what are the top 10 breads they'll pick whenever they'll buy in a bakery, In this way you are minimizing the costs as well as satisfying the tastebuds of your customers Thanks Helpful 51 Not Helpful 12
• Don't focus on the present. Remember if your business is not doing good at the present moment. It's okay, we've been there, as long as you see the Vision, just continue. Take a look at your business, what are the things you need to change, how can you improve your Sales, yourself. The Secret to Success according to Charles Haanel is Service. Be Patient. Thanks Helpful 53 Not Helpful 8

Things You'll Need

• Pen, Paper, A little imagination, company for partnerships, money, Internet Connection, patience, focus, consistency and love

You Might Also Like

• ↑ https://www.bbc.co.uk/bitesize/guides/z84kq6f/revision/1
• ↑ https://www.anz.com.au/business/start-run-grow-business/start/the-importance-of-location-in-business/
• ↑ https://www.inc.com/jeff-haden/15-reasons-you-shoiuld-start-your-own-small-business-today.html
• ↑ https://www.business2community.com/customer-experience/12-ways-learn-customers-01990097
• ↑ https://www.entrepreneur.com/article/272808
• ↑ https://www.entrepreneur.com/article/284799
• http://discarte101.wix.com/kambalpandesal#!blog/c7pa

About this article

Reader success stories.

Oct 8, 2018

Did this article help you?

Khalid Mehmood

Apr 13, 2016

Ric Morales

Aug 16, 2016

May 20, 2017

Jam Salvador

Oct 13, 2020

• About wikiHow
• Terms of Use
• Privacy Policy
• Do Not Sell or Share My Info
• Not Selling Info

• Connections

• Negosyo/Business

How to Start Bakery Business in Philippines: Paano magtayo at magpatakbo ng Panaderya?

Ang tinapay ay isa sa mga pangunahing pagkain ng mga Pilipino. Maliban sa bigas, isa ito sa mga mabentang pagkain. Kaya naman, isa ito sa mga hanapbuhay na mataas at mabilis ang kita. Kung pagaaralan ang pagtatayo ng isang bakery ng mabuti, maaring kumita ng marami. Bago pumasok sa ganitong business, isipin mabuti kung ito ay kahihiligan mo at kung mabibigyan mo ito ng sapat na oras o panahon. Maaaring gumawa ng mga listahan ng mga bagay na magaganda sa pagkakaroon ng isang bakery at mga challenges na maaaring maranasan. Sa ganitong paraan, makikita mo kung mas matimbang ang mga magagandang bagay na makakamit sa pagkakaroon ng bakery.

About the author

Michelle ang.

Report Abuse

Disclaimer: Buhay OFW is not a Registered Investment Advisor, Broker/Dealer, Financial Analyst, Financial Bank, Securities Broker or Financial Planner. The Information on the Site is provided for information purposes only. The Information is not intended to be and does not constitute financial advice or any other advice, is general in nature and not specific to you. Before using Buhay OFW’s information to make an investment decision, you should seek the advice of a business professional, qualified and registered securities professional and undertake your own due diligence. None of the information on our Site is intended as investment advice, as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any security, Company, or fund.

Buhay OFW is not responsible for any investment decision made by you. You are responsible for your own investment research and investment decisions.

Ask a Question

Recent posts.

• Policy Statement
• Privacy Statement

Login Required

Welcome to buhay ofw, you're a step away from successfully posting....

• Sample Business Plans
• Food, Beverage & Restaurant

Bakery Business Plan

Ready to turn your love for baking baked goods into a successful business?

To ensure that your business endeavor happens to be a flourishing one, write a business plan specifically crafted for your unique bakery business.

From helping you finalize the bakery location to evaluating the financial position of your business- a detailed plan uncovers every detail essential to kickstart a successful bakery business.

Writing a business plan can get complicated. With this step-by-step guide, you will have all the information essential to write a bakery business plan . Also, download our free bakery business plan template and modify it to fit your needs.

Ready to dive in? Let’s get started.

Key Takeaways

• Conduct a detailed industry analysis of the bakery market to understand market trends, target market, and the growth scope of your business.
• Outline the business goals and devise a business strategy that is in line with your bakery’s branding image.
• Analyze the competitive landscape of your business and identify local businesses that will offer direct and indirect competition to your business.
• Make calculations, assumptions, and projections to form key reports such as income statement, balance sheet, Cash Flow statement, and Break-even analysis.
• Determine the operations of your bakery business by outlining the procedures, processes, and equipment required to kickstart the business.
• Determine the baked goods and services you will sell through your bakery business.

Why is a bakery business plan important?

A business plan helps achieve your business objectives by creating a roadmap that will guide your bakery business in a strategic direction. An actionable well-drafted plan offers an in-depth view of your business idea and are a few benefits you must know:

• A business plan instills clarity in your business idea. All the ideas that were messed up in your mind start getting a clear point of view once you start writing a plan.
• A business plan is your checklist to understand what different aspects of the business need- the resources, equipment, manpower, licenses, etc.
• It helps crystallize your business vision and what it aims to achieve in the bakery market.
• A business plan optimizes the bakery operations and brings down the operating expenses by ensuring the resourceful allocation of bakery resources.
• A plan evaluates the financial aspects and viability of your bakery idea before you actually invest money in the business.

And, of course, a well-crafted plan will get you essential funds to get started in the bakery market. Moving forward, let’s craft a spectacular plan for your bakery business.

How to Write a Bakery Business Plan: A Complete Guide

From writing an executive summary to creating your financial plan- let’s decode the key elements of writing a business plan.

1. Get a business plan template

Before you start writing a business plan, consider getting a sample template to simplify the entire plan writing process.

A lot of information goes into writing a comprehensive business plan. Addressing all the key components in brief details is a challenging task.

However, by using a template, you can add structure to your plan. Not only that, it will help you organize the information clearly in a cohesive manner. With appropriate prompts, you will know exactly what to write in each section.

We know you would start searching for a template. Well, the Upmetrics business planning template is perfectly relevant and suited for your bakery business. It’s intuitive, modern, and available for free download.

Need Assistance Writing a Bakery Business Plan?

Get Upmetrics’ business plan template, import data directly into the editor, and start editing using Upmetrics AI Assistant.

Start Planning Now

2. Write an executive summary

The executive summary is a concise description of your entire bakery business plan. It highlights the key findings and entices the reader to delve further into your business plan. So make sure to keep it interesting.

A well-drafted executive summary includes an answer to every question, a potential investor might have.

For instance,

• What is the core objective of your bakery business?
• What are the pain points of your target customers and what solutions can you offer?
• What type of baked goods will you offer?
• What is your target market?
• What is your marketing strategy?
• What are the financial highlights of your bakery business?

As you start writing, remember that the executive summary should summarize the plan and not your business idea.

Lastly, fit your compelling summary description in 1-2 pages.

3. Conduct a competitive and market analysis

The market analysis section paints a clear picture of your ideal target market, bakery industry trends, and your competitors in the market. In a way, this section is your chance to validate the potential success of your bakery shop.

The market analysis section of your bakery plan must include:

Market share, growth potential, and industry trends

Identify your targeted available market (TAM) through thorough market research and determine your share in the bakery market. Analyze the emerging trends in the bakery market and assess your growth potential as a retail bakery.

Understanding of the target market 

Who will be your potential customer at a bakery shop?

It gets much easier to succeed in the market when you have a clear understanding of who your target customers are.

In this section of customer analysis, you will create a buyer’s persona of your ideal customer by understanding their psychographic and demographic details.

Competitor analysis

This is an equally important part of the market study, where you evaluate the position and competitive landscape of your bakery shop.

Begin by identifying your top competitors and evaluate your strengths, weaknesses, opportunities, and threats against other bakeries. Establish your competitive edge and show the potential investors that your business stands a promising opportunity in the competitive market.

Want to Perform Competitive Analysis for your Business?

Discover your competition’s secrets effortlessly with our user-friendly and Free Competitor Analysis Generator!

4. Prepare a company overview

The company overview section of a bakery’s business plan is a brief description of your bakery business concept, its legal structure, location, and value proposition.

Be creative and write a compelling section that can propel the readers’ interest in your business idea.

Wondering what to include in your bakery’s company overview section? Let’s check:

• Type of bakery business: retail bakery, specialty bakery, cloud bakery, mobile bakery, etc.
• Business structure: Sole proprietorship, LLC, partnership LLC, corporation, etc.
• Mission statement
• Value proposition
• Quantifiable business goals and milestones
• History and background of the bakery, if applicable
• Partnership and ownership structure
• Name of owners/ partners
• Operating hours
• Service style

Drill down to details and make this section an engaging read.

5. Describe your products and services

After describing your bakery structure and mission statement in the previous section, you will now outline the product and service offerings of your bakery shop.

As a bakery business, you may sell a variety of delicious baked goods such as pastries, cakes, fresh bread, cookies, tarts, pies, donuts, sweet buns, etc. Add this to your product section and also non-baked goods such as savory snacks, coffee, etc, if it’s on your menu offering.

Specifically mention, if you will have products for special diets, i.e. gluten-free, keto-friendly, sugar-free, vegan baked goods, etc.

6. Bakery store design and layout

An effective bakery business plan must include a blueprint of your bakery shop’s layout and design to demonstrate the bakery’s concept practically to the readers.

Mention your bakery size and the space allocated for the back of the house and front of the house operations. Also, explain how the proposed layout will increase the efficiency of your business operations in great detail.

In this section, you will also talk about the decor and theme that will create a warm ambiance for your target audience. Keep in mind that the decor should reflect the branding image you want to create in your target market.

Offer an immersive experience to the readers while explaining this section.

7. Prepare a bakery marketing plan

The bakery marketing plan offers a detailed outlook of marketing strategies you will use to market and promote your bakery shop. Consider it as a roadmap that will guide you in building a brand of sustainable value in the market.

So how do you build a perfect marketing plan?

Begin by identifying the marketing channels and different types of digital marketing campaigns that will work best for your potential customers. Now, allocate the monthly budget to different marketing activities. Lastly, devise a marketing strategy for each channel with a clear plan of action.

Here are a few marketing strategies that are popularly used by successful bakery businesses:

• Social media platforms for brand development
• Email marketing for promotional offers
• Video content such as easy baking recipes, tips, tricks, etc
• Online workshops and live sessions
• Influencer marketing
• Tasting events and sampling
• Customer testimonials

Now detail all your plans in this section and show your investors that you have a solid way to establish your business’s popularity in its target market.

8. Outline your organizational structure

In this section of your bakery business plan, you introduce the management team and employees at your shop. Also, highlight the organizational structure and hierarchy of employees in the organization.

Begin by introducing the owners and their role in your organization. Highlight their experience in the bakery industry and the key skills that can benefit the business.

Introduce your talented baker and their role in recipe development and standardization. Show their experience in the baking field and prove their asset worthiness.

Draw a clear flowchart depicting the flow of authority and responsibility in your bakery business. It is your chance to show the investors that you have a team and knack to take this business on a successful path.

9. Create a logistics and operational plan

The operations plan of your bakery business plan is a strategic document highlighting the processes, procedures, and resources needed to efficiently run your bakery shop.

A well-planned operations plan is like a business manual that has answers to all the questions one might have while running a bakery shop.

Wondering what to add to your operations plan? Well try to include answers to the following questions to make it detailed and comprehensive:

• Physical facilities: What will be your bakery location to produce bakery goods? Will you serve customers from that location or a different shop? Are you planning to sell the bakery goods online?
• Suppliers: Where will you get the raw materials and supplies for producing bakery goods? Who will supply non-bakery items like scones, sandwiches, and savory snacks?
• Inventory: Where will you store the raw material and ingredients? What will be the shelf life of these ingredients? How will you manage the stock levels? What are the minimum thresholds for different items and how long it takes to stock them?
• Production: Who will bake the goods? How long is the process? Will everything be made fresh or in batches to be stored for a few days? Will there be recipe cost cards for each menu item? How will you meet an unexpected spike in demand?
• Bakery Equipment: What type of bakery equipment will you require? Will there be a POS system at your store? What other technologies will you use? How will you take online orders?

The amount of precision here will help you regulate your operating expenses once the bakery starts serving the customers. Proper planning is advisable at this stage.

10. Create a Financial Plan

And now comes the most exciting part for investors- a financial plan. The figures in financial statements are helpful in determining the viability of your business idea. So this section holds a considerable weightage in terms of whether you will get funding or not.

To ensure you create a comprehensive bakery financial plan , including financial projections for these key components:

• Cost of starting a bakery shop
• Sales forecast
• Revenue projection
• Operating expenses
• Pricing strategy
• Income statement/ Profit & Loss statement
• Break-even analysis
• Cash flow statement
• Balance sheet
• Business ratios

In this section, you will also evaluate your funding requirements and identify the funding sources for your business. i.e. bank loans, SBA-guaranteed loans, angel investors, and personal savings.

Having realistic financial projections at hand will help you realize your financial goals while evaluating the sustainability of your bakery business.

However, creating the projections for all these elements from scratch can get overwhelming. Additionally,  you also need to work on visuals and graphs to add impact and clarity to your plan.

Well, there is an easy way. Create your plan with the Upmetrics Financial forecasting tool . This tool will generate key reports and visuals that can be easily downloaded and added to your plan.

We hope this sample plan will guide you in writing a perfect business plan. Now, let’s move forward and check the industry trends ruling the bakery world.

Bakery Industry Highlights 2023

Before you open a bakery, here are some latest highlights from the bakery industry, you may find helpful:

• Bakery market size: The US bakery market size was valued at $99.47 billion dollars in 2023. It is projected to grow at a CAGR of 2.08% between 2023-2028.
• Retail Bakeries: According to IBIS World , there are 8,780 independent retail bakery shops in the US.
• Bakery consumption: In 2022, Americans consumed 8.6 billion kilograms of cake and pastry goods, a sizable amount compared to other countries.
• Bakery trends: There is a growing trend of providing healthier alternatives, i.e. gluten-free baked goods in the bakery market. The organic and gluten-free baked goods market grew by 2.45% in 2022.
• Market Saturation: 55% of commercial bakery revenue in the US is generated by 3 major players- Grupo Bimbo, Flower Foods, and Campbell Soup.
• Specialty bakery market: The US Specialty bakery market share is expected to grow by 10.54 billion US dollars by 2026.

Download a sample Bakery business plan

Need help writing your own bakery business plan? Well, download our bakery business plan pdf and write your plan section-by-section with utmost precision.

Upmetrics templates are perfectly suited for entrepreneurs who need a little help to kickstart their business planning. Import the data into the editor and start planning.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Write your business plan with Upmetrics

Optimize your business planning with Upmetrics .

With more than 400+ business plan examples , we offer invaluable guidance to help you write a cohesive business plan.

Whether you are writing a business plan to strategically grow your business or attract investors, Upmetrics’ invaluable resources like AI assistance, forecasting tools, and step-by-step guides will serve you perfectly.

Let’s bake a recipe for success together.

Related Posts

Cookie Business Plan

Donut Shop Business Plan

Cupcake Business Plan

How Much Costs to Start a Bakery

How to Open Bakery Business

Best AI Business Plan Generator

Frequently asked questions, what should be included in a bakery business plan.

An effective bakery business plan must include:

• Executive summary
• Business overview
• Industry and competitors analysis
• Bakery goods and services
• Bakery design and layout
• Operations plan
• Key management team
• Financial bakery plan

How long should my bakery business plan be?

A bakery business plan should be not more than 15-20 pages including graphs, visuals, and charts. You are likely to lose the interest of investors with a lengthy plan. However, keeping it extremely short is also not favorable, as it would not cover important details. So try using crisp content for your business plan.

Can a bakery business plan template help in setting clear business objectives and goals?

Absolutely yes. A template offers a variety of prompts that will help you to write each section clearly and cohesively. Moreover, you will get a variety of bakery-specific examples that shall help in clearly determining your goals and objectives.

Do I need to have financial projections in my bakery business plan?

Yes, financial projections are important to assess the viability and profitability of your business idea. If you are planning to seek investor funds, this section is of crucial importance. Investors will evaluate the financial section and determine whether to invest or not.

Can I use the same bakery business plan template for different locations?

Yes, you can. However, you need to alter the content of your business plan for different locations and target markets by making specific modifications.

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

Plan your business in the shortest time possible

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Create a great Business Plan with great price.

• 400+ Business plan templates & examples
• AI Assistance & step by step guidance
• 4.8 Star rating on Trustpilot

Streamline your business planning process with Upmetrics .

How to Start a Baking Supply Business Philippines

Have you ever thought about starting your own bakery supply business in the Philippines? If so, then today’s handy guide on how to start a baking business will guide you in the right direction to accomplish your business goal.

We will cover some important areas to start a baking supply business in the Philippines, including the market and the finances, but for those interested in a business plan, head over our free business plan PDF template, which can be downloaded a the top of this page.

Table of Contents

Steps On Starting A Baking Supply Business Philippines

1. analyze the baking market.

Before starting any business, surveying the market is important. It can help you determine the challenges in your target market. The same goes on ways on how to sell baking supplies online. To start, future baking supply business owners need to talk to the bakeries located in their target location. 

A baking supply business can be profitable if the business satisfies the clients’ needs and diligently serves them. Performing a market survey can help you figure out how to help these bakeries do their jobs more easily.

2. Create A Baking Supply Business Plan

It does not matter if you plan to be an online home-based baking business owner or have a store when making a bakery business plan. Future business owners can think of this as their map. Therefore, a bakery business plan should be meticulously made by placing all the details in various categories. 

Here are some of the elements you can include in your business plan .

3. Registration Of A Baking Supply Business In The Philippines

One of the crucial steps in the process of how to start a baking supply business Philippines is obtaining the needed documents to operate legally. Owning a bakery supply store or being a baking supply distributor in the Philippines requires the same legal requirements. If you are not a Filipino passport holder, find out more about registering a business in the Philippines here.

Since bakery supply business owners will store edible ingredients such as chocolate compounds, cake mixes, essence, and chocolate compounds, among many others, baking supply business owners have to be registered. 

Please note that depending on the city where you will operate your business, there can be more or different requirements.

4. Pick Your Location For Your New Baking Business

Suppose you are opening a home-based baking business in the Philippines. In that case, you may wish to investigate the delivery part of the business and see how it will affect your business location.

5. Order Baking Supplies In Bulk

A great way to order from baking wholesale suppliers in the Philippines is to list the primary baking supply categories, such as the ingredients and equipment. Then, you can choose the products you want to stock on for every category.

Another helpful tip at this stage when looking at how to start a baking supply business in the Philippines is to determine how you want to start….

6. Build Your New Baking Business Team

It is best to get employees who offer great customer service and have knowledge about baking supplies and tools. You can also ask for help if you know someone who has a home-based baking business in the Philippines, as they will likely know culinary school students or people who have worked in kitchens. 

If possible, baking supply business owners can provide matching uniforms for all the employees as the business grows.

7. Market Your New Business

How to sell baking supplies online philippines, 1. purchasing ingredients, equipment, and supplies.

When baking supply business owners purchase products and equipment in big quantities, they can get a better deal from baking suppliers – wholesale suppliers in the Philippines. 

Some baking ingredients need to be refrigerated. Therefore, one way on how to sell baking supplies online is to consider temperature and delivery when deciding on what baking products to get. 

2. Aim To Make Your Online Products Too Good To Refuse

After understanding what your products can offer, you can use the information to create engaging product captions. Quality descriptions are important in the ways on how to sell baking supplies online in the Philippines.

The ideal product description highlights the benefit of the products and their features. Moreover, addressing the needs and concerns of your target audience can help, such as trying to determine how your product can make their lives easier or better.

Product descriptions with good conversion have a CTA or call-to-action. You can use CTAs such as “On sale for a limited time only, Purchase today!” ….  it’s essential to carry out keyword research to have improved rankings on search engines and selling sites such as Shopee and Lazada .

3.  Using Stories And Recipes

To perform marketing using storytelling, you could create a narrative to tell your message. Your aim is to make potential customers reading your story feel inspired to purchase your product. This will also help them better understand your baking supply products and create trust with your business. 

When planning your baking supply business, you might have thought about how your ingredients can make customers bake something wonderful in the comfort of their own homes?…  You could include something special and extra to improve your stories, such as recipes and baking tips.

Baking Supplies Wholesale Suppliers Philippines

How much does a bakery supply business cost in the philippines.

The total amount you need to start a bakery supply business in the Philippines will depend on the scale of your business and how aggressively you wish to grow in the upcoming years.

Nonetheless, to start a small bakery supply business in the Philippines at home, you need to have at least 50,000 Pesos. On the other hand, if you are looking to start a small bakery business in a warehouse or storefront, then the scale of the business will be much larger, and as a result, 200,000 Pesos or more will be needed.

Please note that the above estimates are valuations when calculating how much it cost to start a bakery supply business in the Philippines, which means that the prices can be higher or lower depending on your location and scale of business. For example, if you are an entrepreneur starting this business at home, the cost will be much lower compared to a new corporation with a team of 25.

Ready To Be Rich

Business, Investments, and Personal Finance

Tips on Starting a Bakery Business in the Philippines

Updated: March 21, 2024

Bread is a staple food everywhere. In the Philippines, it is consumed as much as rice every day, especially during breakfast and merienda.

Hence, starting a bakery business is a promising venture. And fortunately, it doesn’t require a lot of capital to put up your own panaderya in your local area.

If you’re hoping to go into the bread business, then below are some tips that can help you start a bakery business in the Philippines.

Basics of Running a Pinoy Bake Shop

Before anything else, you need to ask yourself if this is the type of business you really want to put up and manage in the long run.

After all, this will be a responsibility that you will handle every day. So it’s important to have an interest in baking and bread preparation if you want to be successful in this business.

First of all, you have to study the specifics of the Filipino bakery industry. You need to know how you can successfully sell pan de sal and other bread products in your area. Do your homework – research.

Putting up your own bakery requires baking skills and knowledge in bread and pastries. You can enroll in baking lessons or training offered by TESDA or other culinary schools. Do not decide to start a bakery business if you don’t know how to bake. Knowing the baking process will make things easier for you as you manage your business.

It may take one month or so before you can learn how to bake. Make sure you’ll get a certificate after the training to show as proof to your customers. This will attract more customers because certificates from formal training vouch for your familiarity with the business.

Hands-on training will help you develop your baking skills. You can work with flour mills in your area to fully understand how things work. Remember, practice is better than theory. So go ahead and discover how you can enrich your baking knowledge through local baking courses.

Also, it’s important to find a good location. Some decide to put up their bakery business in their house. This is a practical decision since you don’t need to rent a place for your bakeshop. You just need to register your business and you’re good to go.

Food businesses like bakeries require human traffic. That means it’s advantageous to put it up in residential areas, near schools, the local market, and adjacent to hospitals. Terminals are also an ideal place to put up your bakery business.

Furthermore, develop your products that are appealing to your target market. You can research the best-selling baked products of other shops to see if they will work for you.

For example, if you are planning to put up a bakery in Manila, then sell bread that Manilenos like such as ensaymada, monay, tasty bread, and of course, pan de sal. Experiment and see what would appeal to your customers.

One basic rule in all businesses is to start small. Do what you can and use what you have. It’s not even advisable to loan a big amount of money if you’re not sure how to run your business yet.

If your business is growing, that’s the time you can expand your products and branches. Decide on the right equipment you will use and buy supplies as needed. Do not overspend.

• Some of the equipment you need includes bakery oven, dough mixer, bread crusher, bread slicer, and baking trays. Canvas before deciding to buy these essentials.
• Maintain the quality and consistency of your products.
• Good tasting bread will always attract customers. Focus on your ingredients and recipes. Be consistent in the taste of your products.
• Learn from the people who buy your products. You can improve your current offers to get more customers.
• Consider local regulations in your area. Secure your business permit, DTI certification, and other important documents.

As you grow your business, manage your resources well. Be thrifty and prudent in all your transactions especially if it involves your money. Aside from time, you also need to be responsible for your duties as the boss.

Be patient in understanding your business. The first steps are always the hardest. So you need to be passionate when dealing with people that can help you to become successful in the bakery business.

What to do next: Click here to start your financial journey with IMG Wealth Academy

Yung auntie ko meron tatlong bakery isa nalang ngayon ang natira. Mejo mahirap mag manage ng bakery lalo na kapag wala kang first hand experience o alam sa pag gawa ng tinapay. Once na umalis ang panadero mo magclose talaga ang store for days na wala pang kapalit. So best dito sa mga may plan mag bakery ay mag aral din ng baking at pastry.

Sa bakery business po ba papano ma compute ang interest o tubo ? Sa per sack of flour ba?

Starting a bakery business at first is hard, you need proper training, proper people and most of all proper equipment. Talagang nasa execution mo pano mo mapapatakbo e. In terms of supply and equipment, yan ung magiging body kit kumbaga ng business mo, without that mahihirapan ka. I have been running bakery businesses na for years din with the help of Felusa or Usabal Enterprises. Sila nagsusupply ng equipments ko and ovens ko here in QC. Nung bumili ako ng ovens humingi narin ako ng konting tips dun sa owner on what to do para ma prolong ung business. And naging okay naman, that was 4 years ago. Kaya kung plan niyo magstart ng business with proper equipment and mindset, try talking to Tom Usabal of Usabal Enterprises in Marikina. Baka matulungan nila kayo. Equipment palang sobrang laking tulong na :)

Leave a Reply

Your email address will not be published. Required fields are marked *

Blog Sponsors

Search for a Blog Article

Latest podcast episode, curated blog articles.

• Enemies of Financial Freedom
• Your Allies of Financial Success
• Simple Personal Finance
• On Money, Family and Friends
• All About Credit Cards
• Habits That Lead To Success
• How To Start A Business
• Business Branding Tips
• Business Development Strategies
• How to Become a Freelancer
• How To Invest in the Stock Market

Join our Newsletter

Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Bakery Business Plan

Start your own bakery business plan

Jolly's Java and Bakery

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

There is a shortage of coffee spots where customers can get high quality coffee and freshly baked pastries in a higher income market in Washington state.

JJB offers a broad range of coffee and espresso products, all from high quality imported coffee beans. JJB caters to all of its customers by providing each customer coffee and espresso products made to suit the customer, down to the smallest detail.

Because Washington has a cool climate for eight months out of the year, hot coffee products are very much in demand. During the remaining warmer four months of the year, iced coffee products are in significantly high demand, along with a slower but consistent demand for hot coffee products. Much of the day’s activity occurs in the morning hours before ten a.m., with a relatively steady flow for the remainder of the day.

Competition

Competition in the local area is somewhat sparse and does not provide nearly the level of product quality and customer service as JJB. Local customers are looking for a high quality product in a relaxing atmosphere. They desire a unique, classy experience.

JJB is a bakery and coffee shop managed by two partners. These partners represent sales/management and finance/administration areas, respectively. The partners will provide funding from their own savings, which will cover start-up expenses and provide a financial cushion for the first months of operation.

Expectations

JJB anticipates sales as shown below during the three years of the plan. JJB should break even by the fourth month of its operation as it steadily increases its sales. Profits for this time period are expected to be relatively low in the first two years, increasing somewhat in the third. We are projecting investment of $140,000 from the two founders.

Financial Highlights by Year

Financing needed.

Startup requirements:

• Startup expenses of $64K including $3K legal, $20K location premises renovation, $40K expensed equipment, and $1K other. These show up as negative retained earnings in the initial balance because they are incurred before launch.
• Starting cash in the bank of $70K. (in initial balance)
• Other current assets of $12K (in initial balance)
• Long-term assets of $65 (in initial balance)
• $110K initial investment from founders (Shows up in initial balance as Paid-in Capital.)
• $100K 10-year loan from SBA (in initial balance)
• $1K in accounts payable at startup. (in initial balance)

Problem & Solution

Problem worth solving.

There is a shortage of coffee spots where customers can get high-quality coffee and freshly baked pastries in a higher income market in the southwest area of Washington state. 

Our Solution

JJB offers a broad range of coffee and espresso products, all from high-quality Columbian grown imported coffee beans. JJB caters to all of its customers by providing each customer coffee and espresso products made to suit the customer, down to the smallest detail.

Target Market

Market size & segments.

JJB focuses on the middle- and upper-income markets. These market segments consume the majority of coffee and espresso products.

Local Residents

JJB wants to establish a large regular customer base. This will establish a healthy, consistent revenue base to ensure the stability of the business.

Tourist traffic comprises approximately 35% of the revenues. High visibility and competitive products and service are critical to capture this segment of the market.

Current Alternatives

Leading competitors purchase and roast high quality, whole-bean coffees and, along with Italian-style espresso beverages, cold-blended beverages, a variety of pastries and confections, coffee-related accessories and equipment, and a line of premium teas, sell these items primarily through company-operated retail stores. In addition to sales through company-operated retail stores, leading competitors sell coffee and tea products through other channels of distribution (specialty operations).

Larger chains vary their product mix depending upon the size of each store and its location. Larger stores carry a broad selection of whole bean coffees in various sizes and types of packaging, as well as an assortment of coffee- and espresso-making equipment and accessories such as coffee grinders, coffee makers, espresso machines, coffee filters, storage containers, travel tumblers and mugs. Smaller stores and kiosks typically sell a full line of coffee beverages, a more limited selection of whole-bean coffees, and a few accessories such as travel tumblers and logo mugs. According to the most recent data available, industry retail sales mix by product type was approximately 73% beverages, 14% food items, eight percent whole-bean coffees, and five percent coffee-making equipment and accessories.

Our Advantages

The retail coffee industry in the U.S. has recently experienced rapid growth. The cool marine climate in southwest Washington stimulates consumption of hot beverages throughout the year.

JJB wants to establish a large regular customer base, and will therefore concentrate its business and marketing on local residents, which will be the dominant target market. This will establish a healthy, consistent revenue base to ensure stability of the business. In addition, tourist traffic is expected to comprise approximately 35% of the revenues. High visibility and competitive products and service are critical to capture this segment of the market.

Keys to Success

Keys to success for JJB will include:

Providing the highest quality product with personal customer service.

• Competitive pricing.

Marketing & Sales

Marketing plan.

Our marketing is rooted in the quality of the experience, to generate good word of mouth and repeat visits. That should generate good reviews on Yelp and Google Maps and similar review platforms. 

Of course we will pay attention to reviews and work with promotions to encourage reviews without being too blatant about it. 

We will also keep an up-to-date Facebook page and Twitter persona with regularly updated content. We will be slow to do promotions over social media, emphasizing useful content instead. Some of that will include community content. 

Locations & Facilities

JJB wants to establish a large regular customer base, and will therefore concentrate its business and marketing on local residents, which will be the dominant target market. This will establish a healthy, consistent revenue base to ensure the stability of the business. In addition, tourist traffic is expected to comprise approximately 35% of the revenues. High visibility and competitive products and service are critical to capture this segment of the market. JJB will have a storefront that is easily accessible from 2 different highways. 

Milestones & Metrics

Milestones table.

Key Metrics

Of course, the main metrics are the obvious ones: sales, direct, costs, expenses, and cash flow. But we will also be watching for units, customers, and social media metrics including Facebook likes and Twitter follows.  

Ownership & Structure

JJB is incorporated in the state of Washington. It is equally owned and managed by its two partners.

The company intends to hire two full-time  managers, one pastry chef and 3 part-time baristas to handle customer service and day to day operations.

Management Team

Personnel Table

Financial Plan investor-ready personnel plan .">

Revenue forecast.

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

We will be financing initial assets of $65,000 long-term assets (equipment, etc.) and $12,000 current assets plus initial inventory and the early months before break-even occurs. 

Sources of Funds

Two owners each investing $70,000. Total startup investment is $140,000

Projected Profit & Loss

Projected Balance Sheet

Projected Cash Flow Statement

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

• Inspiration
• Ingredients

Unlocking Success: A Sample Bakery Business Plan for Your Inspiration

Learn from urbanbite bakery's sample business plan, crafted to inspire and guide you towards a successful path in the world of pastry entrepreneurship..

Learn From Pastry's Best

Jump to section, executive summary, vision statement, mission statement, business description, products and services, target market, competitive analysis, marketing plan, operational plan, financial plan, risk management.

Starting a bakery can be a fulfilling and lucrative venture, but like any business, it requires careful planning and execution. If you're considering launching your bakery, a well-crafted business plan can be your recipe for success. Let's explore a sample bakery business plan to inspire and guide you in creating your path to entrepreneurship.

Popular Articles

Laminated Dough Recipe: How To Make Laminated Dough?

What Is The Difference Between Pectin And Pectin NH?

The Impact of AI in the Bakery Industry: A Simple Overview

How To Prevent Sweet Dough From Drying Out?

Johan Martin

Meet one of your new instructors.

Business Name: UrbanBite Bakery

Location: Barcelona

UrbanBite Bakery aspires to redefine the bakery experience in Barcelona, offering a fusion of modern tastes, artisanal craftsmanship, and community engagement.

UrbanBite Bakery is committed to providing a modern culinary adventure through the creation of exceptional, handcrafted baked goods. We aim to elevate the local community's palate, foster a vibrant atmosphere, and champion local suppliers.

UrbanBite Bakery is a contemporary bakery specializing in an array of handcrafted pastries, cakes, and bread. Our focus is on using premium, locally sourced ingredients to create a unique and delightful culinary experience for our customers.

• Pastries: An innovative range of pastries, including croissants, danishes, and muffins.
• Cakes: Bespoke cakes for special occasions, as well as daily slices with modern twists.
• Breads: Artisanal bread varieties, including sourdough and whole grain, reflecting current tastes.
• Beverages: Quality coffee, tea, and trendy specialty drinks.
• Urban residents with a taste for contemporary, high-quality baked goods.
• Discerning customers seeking unique custom cakes for special occasions.
• Professionals looking for a chic and delicious breakfast or snack.

UrbanBite Bakery will distinguish itself through:

• Fusion of modern and traditional flavors.
• Cutting-edge, visually appealing products.
• Active community involvement and engagement.
• Social Media Presence: Vibrant engagement on Instagram, Facebook, and Twitter showcasing our modern products and connecting with customers.
• Local Collaborations: Strategic partnerships with local businesses and participation in community events to enhance visibility.
• Opening Promotions: Exclusive promotions and discounts during the launch month to captivate initial customers.
• Location: Securing a centrally located space in Barcelona with high foot traffic.
• Suppliers: Cultivating relationships with local suppliers for fresh, on-trend ingredients.
• Staffing: Hiring skilled bakers and creating a friendly, customer-centric team for a positive customer experience.
• Startup Costs: Detailed outline of initial expenses for state-of-the-art equipment, permits, and innovative marketing.
• Revenue Streams: Projections for income from daily sales, custom cake orders, and potential collaborations or catering services.
• Profit and Loss Statement: Monthly monitoring of expenses, revenue, and profits to ensure financial sustainability.

Identify potential risks, such as market trends shifting, supply chain disruptions, or economic uncertainties. Develop strategies to mitigate these risks, including staying adaptable and maintaining diverse supplier relationships.

UrbanBite Bakery is poised to become an iconic establishment in Barcelona, offering not just baked goods but a contemporary and delightful experience for our customers. With a focus on quality, community, and a modern approach to baking, we are confident in our ability to not only thrive but redefine the local bakery scene.

Our Pastry Classes

Toni Rodríguez

Teaches modern vegan pastry.

Christophe Adam

Teaches eclairs.

Ksenia Penkina

Pastryclass founder teaches glazing.

Pierre Hermé

Teaches iconic pastries.

Cédric Grolet

Teaches fruits, nuts, flowers.

Featured Pastryclass Instructor

Thomas haas.

You have skills and you love what you do! What`s next?

Stay up to date with us.

Be the first to know when we launch new classes, receive pastry tips, inspiring content and exclusive offers., more on business, how to use social media to bring more customers to your pastry shop, 5 strategies to boost customer traffic to your pastry shop, what are the career opportunities in baking and pastry.

Don't have an account?

Already have an account?

Reset Password

We will send you an email to reset your password.

Starting a Bakery Business Plan (PDF)

A bakery can also be known as a pastry shop or a confectionary. When dealing with the bakery industry we are looking at products such as bread, cakes, pastries, cookies, muffins, and pies, amongst others. It is basically food products baked from flour or other grain meals. A bakery business is a very profitable venture if operated efficiently. It is not enough to be able to make good bread or cakes. A bakery business is an enterprise that requires resources and planning. The quality of your output is important. However, you also have to create an environment within which customers can access your products at great prices. At the highest level, the bakery business is capable of producing incredible profits and prestige. This article will outline how to start the bakery business, and the bakery business plan – PDF, Word and Excel.

Above all you should develop a passion for the enterprise given the hard work that is required of you. The great thing about this model is the possibility of transitioning from other corporate endeavors straight into bakery. Moreover, you can do it as a side business without hindering your other profession. The range of possibilities includes a family-owned and run home business. You can also become a major corporate entity that caters for major events.

Market Research

Before you go further along with the bakery business this must be your primary focus. Who do you intend to cater for? This question is your launch pad into ultimately coming up with a comprehensive marketing strategy for your bakery business. In fact, insights from your market research have ripple effects towards all other components in setting up the bakery business. You must appreciate the fact that you must niche which entails targeting a particular market. It’s not that easy to cater for the whole breadth of the market because that might be unsustainable due to high costs. Therefore you must be diligent enough to figure out which specific portion of the market you’ll target. When conducting market research you must closely study people’s eating out behaviours, check the age range dynamics and also analyse the levels of income of your prospective target market. This is why it is important to have a good bakery business plan before you start this business.

Location and Premises

This here is a component that’ll be greatly informed by your target market. You want a scenario where your bakery store is ideally located at a spot characterised by high volume vehicle and foot traffic. It shouldn’t just be about traffic only though; it must be close to or in an area where your intended customers are abundantly found. Another vital feature to consider is the availability of adequate and secure parking space and easy access to mass transportation. The best approach to take is to locate your bakery shop in an area close to other businesses that can lead to customer inflows for you. For instance, locating it at a shopping centre, shopping mall or central business district (CBD) creates prospects of regular customer inflows. The premises should be large enough to accommodate all your equipment, offices, and space for customers. Your bakery business plan should cater for the costs of buying or leasing the premises.

Competitive Analysis

There are already established bakeries wherever you might think to start a bakery business. There are also new and upcoming bakeries as well. Thus you cannot turn a blind eye to competition. You have to study all your competitors to figure out their business profiles. This entails their products and services, market shares, distribution network, operating times, payment methods, customer segments, and so on. A thorough look into all this shows you loopholes and market gaps.

You have to seek to build a bakery business that has several differentiators. Tweaking operating hours can become one of your differentiators. A strategic location can also be a differentiator. It could be a unique product range that can differentiate you. Maybe it could be allowing online orders, payments and offering home deliveries. All these aspects are best figured out after studying your competitors. Remember, consumers are always looking for convenience and cost savings.

Equipment for a Bakery Business

The bakery will require a variety of equipment. The fixed items will delve a lot into your initial capital outlay. This is because you will typically purchase big ticket items such as ovens, fridges, mixers, bakeware, bread slicers, display case and utensils. The costs of purchasing the bakery equipment should be included in your bakery shop business plan. You may consider purchasing preowned equipment as a way of cutting down your startup costs.

Permits/Licenses, Insurance & Business Bank Account

Permits/licenses.

The first thing is to register your bakery business. After that you must get properly licensed. A bakery business is in the food industry. In the food industry there are strict regulatory frameworks to adhere to. You will need to apply for a business license from the relevant often local (municipal) authorities. Prior to getting that food license your earmarked premises will be thoroughly inspected. It varies from place to place but there will be a long list of things your premises must have or satisfy. Some of the critical areas inspected or inspected for are drainage system, waste management system, ventilation system, sanitary facilities, and Hazard Analysis and Critical Control Points (HACCP), amongst others.

Insurance & Business Bank Account

There are so many things that could go wrong in a bakery. Important assets can get damaged or destroyed. There are several risks that can affect workers as well. The smartest thing to do is to get insured. Contact your nearest, reputable insurance provider and get the necessary guidance. This might seem unnecessary but when something happens in the future you will be glad you got insured.

Then buttress insurance by opening a business bank account for your bakery business. It helps make financial management easier. Most importantly it will help separate your personal finances from those of your bakery business. In the event something catastrophic happens with the bakery business, it will sink alone. It will not sink with you. This is a principle in financial literacy many people in business are yet to grasp.

Bakery products

There are so many different types of bakery businesses that you may want to explore. Your decisions are determined by four primary considerations:

• The amount of capital that you have
• Your skills and competencies
• The business aims, goals and objectives
• The tastes and preferences of your customers

Each of these factors can change throughout the planning and implementation process for the bakery business. Therefore, you need to constantly adjust your bakery business and product selection accordingly. You have a number of options and niches that might just suit your client base. Examples of products that your bakery can offer include bread, muffins, rolls, cakes, donuts, buns, pizza, tortillas, cookies, biscuits, pies, bagels, scones among others. The products you are going to offer should be included in your bakery business plan.

Staff And Management

The effective running of a bakery business requires a significant workforce. As a rule of thumb, your bakery staffing needs are always informed by your intended scale of operations. Some of the key areas in this business are operations management, financial management and inventory management. At the minimum you need pastry chefs, waiters, cashiers and logistics personell. Other required staff include accountants, supervisors, security team, stock controllers and managers, though this depends on the size of your bakery.

Your bakery should have sufficient number of well trained staff. This is because repeat purchases and ever-growing customer inflows are a product of swift and quality service from the staff. Having a small or skeletal staff makes it very difficult to provide swift service. Remember we are living in a fast-paced world where people don’t want to be kept waiting for too long. The salaries of all your employees must be catered for in the bakery store business plan.

Marketing Plan

An official launch is important.

Kick-starting your bakery business can get a boost from doing an official launch. This follows that you would have set up a website and social media accounts. This also follows that you would have been active and engaging with people online and on the ground. All that must culminate into an official launch along with a press release. You can offer free samples on the day as well. Adorn the place and make it lively on the day such that it attracts people. People generally love new outlets, new offerings, and free food. Your initial pricing should be penetration pricing. This means you price lesser than existing players to lure customers to your business. Make the most out of the official launch.

Used A Blended Marketing Approach (Offline And Online)

Afterwards the focus becomes building your audience online. By the way, incorporating online ordering and payments on your website will be a game-changer. Regularly post useful, fun, and informative content daily. Conduct online competitions with giveaways of your products or branded items. All your promotional material, be it physical or virtual, must be high definition. That is a must in the food industry if you want your marketing material to stand out. If your scale of operation is substantial consider potential bulk, recurring clients. Engage them with proposals on how you can be their supplier. These can be companies, food outlets, schools, and the like.

The market for bakery is huge and ever increasing. There is always huge demand of different types of  baked goods. The market for a bakery include individuals, families, hotels, guest houses , supermarkets, companies and organizations. Your bakery should have fair prices that keeps you in business. Do not be tempted to compromise on quality as a means of correcting errors in your budgeting process. Those entrepreneurs that are running local family businesses should be careful about giving discounts to loved ones. This is because they could end up destroying the bakery business before it gets a chance to establish itself. A proper marketing strategy should be included in the bakery business plan.

Keys To Profitability

Your choice of location is a major part of making your bakery business profitable. You ideally need a spot that has high human and vehicle traffic. If that is not possible then the important key becomes your distribution network. The other key is to cultivate a huge clientele mostly comprised of bulk and recurring customers. These are customers who require your products in bulk daily. Economies of scale are a major aspect; scale your operations sooner. Identify your major costs and manage, preferably lessen them. For instance, 60 percent of costs may go to raw materials and remuneration. Your product range must be diversified and comprehensive but informed by market demand. This will ensure you always have and sell fast-moving products. This is one of the best food industry businesses you can start. There is vast room to diversify. You can scale and can pivot if needs be. Best of all, the market for baked foods is always there.

Pre-Written Bakery Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements

For an in-depth analysis of the bakery business, we encourage you to purchase our well-researched and comprehensive bakery shop business plan. We introduced the business plans after discovering that many were venturing into the bakery shop business without enough knowledge and understanding of how to run the business, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.

The StartupBiz Global bakery business plan will make it easier for you to launch and run your bakery business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. This is a complete business plan for bakery. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the bakery shop business.

Uses of the Bakery Shop Business Plan (PDF, Word And Excel)

The bakery shop business plan can be used for many purposes including:

• Raising capital from investors/friends/relatives
• Applying for a bank loan
• Start-up guide to launch your bakery business
• As a bakery shop business proposal
• Assessing profitability of the bakery business
• Finding a business partner
• Assessing the initial start-up costs so that you know how much to save
• Manual for current business owners to help in business and strategy formulation

Contents of the Bakery Business Plan (PDF, Word And Excel)

The business plan for bakery shop include, but not limited to:

• Marketing Strategy
• Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
• Industry Analysis
• Market Analysis
• Risk Analysis
• SWOT & PEST Analysis
• Operational Requirements
• Operational Strategy
• Why some people in the bakery business fail, so that you can avoid their mistakes
• Ways to raise capital to start your bakery business

The bakery shop business plan package consists of 4 files

• Bakery Business Plan – PDF file (Comprehensive Version – 83 Pages)
• Bakery Business Plan – Editable Word File (Comprehensive Version – 83 Pages)
• Bakery Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 41 pages)
• Bakery Business Plan Automated Financial Statements – (Editable Excel File)

The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the percentage markup, salaries etc, and all the other financial statements will automatically adjust to reflect the change. 

Click below to download the Contents Page of the Bakery Shop Business Plan (PDF)

Testimonial 6

I purchased a business plan from you, and I’m glad to inform you that I was able to get my loan, and I’m starting my poultry farming business on the 1 st of July. This was made possible because of your business plan. Thank you very much, you made my dream come true.

Testimonial 5

I was able to understand the business side of farming because of your business plan. You did extensive research; the business plan was well prepared and fully detailed.  It made everything clear, and I have somewhere to start now. I am confident that I am going to succeed in my business because of the guidance from your business plan.

Testimonial 1

StartupBiz Global provided a very professional and comprehensive business plan which I used for my business. The business plan was easy to edit, and I was able to get the funding which I wanted. I highly recommend their business plans.

Testimonial 7

I found Startupbiz Global online when I was in desperate need of a business plan. I was overwhelmed by the quality of the business plan, it’s comprehensive and well researched! I did not have to wait to get the business plan, I got it instantly after payment. I highly recommend Startupbiz Global, and would happily use them again in the future.

Testimonial 3

I was extremely lucky to come across StartupBiz Global. Their business plan exceeded my expectations, and most importantly I was able to secure a loan from my bank. Thank you guys, now my dreams are coming true!

Testimonial 8

Just wanted to say I am very happy with the business plan and I will gladly recommend your products, thank you very much and have a great day.

Testimonial 2

Many thanks for your incredibly efficient service and thorough business plan. I am very impressed with the business plan. Before I bought the business plan, I tried to do my own business plan – it was such a nightmare and it turned out badly, also not to mention the stress it caused me. I wish I knew about your website earlier!

Testimonial 4

The business plan which I purchased from your website saved me TIME and MONEY! The layout of the business plan was excellent. The financial statements were detailed and easy for me to edit. I will come back to purchase another business plan soon.

Get the Bakery Business Plan (PDF, Word And Excel)

Click Buy Now  below to purchase using Paypal, Credit Card, or Debit Card. After you have purchased, you will immediately see the download link for the business plan package on the screen. You will also immediately get an email with the business plan download link. The Pre-written business plan package (PDF, Word, and Excel) costs $30 only!

If you want to purchase multiple business plans at once then click here: Business Plans Store.

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.

We wish you the best in your bakery business! Check out our collection of business plans  , and more business ideas .

Related Posts

Starting Maize Farming Business Plan (PDF)

Starting an Internet Cafe Business Plan (PDF)

Top 10 Profitable Business Ideas For Nurses

Starting Goat Farming Business Plan (PDF)

Join our mailing list to receive the latest posts and updates from our website.

You have Successfully Subscribed!