Profitability Matters!
Even though bakeries and even a baker distributor might be enamored with the kinds of creative bakery inventions, they aren’t always what makes the most money for bakeries. Yes, mashups and clever novelty products are great at grabbing customers’ attention and getting them in the door, but what makes the most money for bakeries are the everyday staple items. At least, that’s what the magazine Bake discovered in their 2017 Retail Bakery Operations Study.
Here’s the Breakdown:
According to those who responded to the study, the most common bakery items produced were cookies. These were the top items produced by bakeries and bakery distributors at 89 percent. Cakes came in second at 79 percent, cupcakes came in third at 73 percent, and muffins and scones followed at 68 percent. The most profitable items for most bakeries are cakes, cookies and bread are also very profitable for most businesses.
As for new and experimental products, their success tends to vary from one type of bakery to another. Specialty celebration cakes are very profitable for full-line retail bakeries, while gluten-free and vegan options are often very popular in smaller, independently-owned bakeries. Meanwhile, wholesale bakeries do incredibly well with new kinds of bread such as kale rolls and more savory varieties.
The Conclusion:
Overall, it’s clearly staple items that make the most money for most bakeries, but specialty items cannot be counted out. As we said before, they are often what attracts new customers and gets them in the door of most bakeries. They show up for the fun new items, but it is the cakes, cookies, bread, and donuts that keep them coming back for more. Specialty items also do well for smaller bakeries, especially in the age of social media and food carts. Small bakeries can set up carts or small stands and advertise what they have to offer to a large number of people through Facebook or Twitter.
So, what does this mean for a bakery? Mostly, it is proof that most staple bakery foods are still the backbone of most businesses. A baker’s innovative new mashup might grab people’s attention, but the classic cakes, cookies, and loaves of bread should never be ignored. Not only are they what makes the most money for bakeries and bakery distributors, but they can become the basis for those cool mashups and experimental products that often attract customers. All of this does require a sound marketing strategy if it is to work for a smaller bakery, but most companies should keep doing what they’re doing while including the occasional experiment when they want to grab people’s interest.
Are You Looking for a Bakery Distributor?
If you are looking for a great bakery distributor for your bakery, contact us here at Organics that Deliver. We offer the highest quality conventional and organic ingredients to professional bakeries and food manufacturers. We would love to help you with your business!
FAQs
Highest paying cities for Bakers near United States
- Seattle, WA. $21.36 per hour. 174 salaries reported.
- New York, NY. $20.10 per hour. 302 salaries reported.
- Denver, CO. $19.28 per hour. 161 salaries reported.
- Portland, OR. $18.42 per hour. 132 salaries reported.
- Boulder, CO. $17.34 per hour. ...
- Show more nearby cities.
5 most profitable bakery foods
- Artisan bread: The aroma of freshly baked bread is irresistible. ...
- Cupcakes: Cupcakes are the perfect canvas for creativity. ...
- Croissants: The flaky, buttery goodness of croissants is a bakery favorite. ...
- Custom cakes: Custom cakes for special occasions can be highly profitable.
On average, bakeries tend to have a profit margin ranging from 5% to 15%. Smaller, specialized bakeries with higher-priced artisanal goods might achieve a higher profit margin, while larger, more mainstream bakeries may operate with narrower margins.
How to make money in the bakery industry? ›
Ready to start your bakery business?
- Offer nutrition information for your products.
- Have healthier options available.
- Feature different portion sizes.
- Offer high-protein baked goods.
- Focus on locally-sourced ingredients.
- Don't do away with indulgent desserts.
- Let nostalgia inform your offerings.
- Offer allergen-free products.
Top 50 Highest Paying States for Bakery Owner Jobs in the U.S. We've identified 12 states where the typical salary for a Bakery Owner job is above the national average. Topping the list is New York, with Pennsylvania and New Hampshire close behind in second and third.
Where is the best place to work as a baker? ›
The best cities for bakers are Newark, NJ, Portland, OR, and Gilbert, AZ, based on factors like average salary and job availability per capita. Jobs and pay for bakers vary across the country, but we've determined the ten best cities for bakers in the U.S.
What kind of baked goods sell the best? ›
Some of the best desserts to sell from home are:
- Cake pops.
- Cookies.
- Low acid fruit pies.
- Brownies.
- Pies.
Some of these best selling bread items include:
- White dinner rolls.
- Vienna loaf.
- Cob loaf.
- Bread rolls.
- Hot dog buns.
- Sourdough and Artisan loaves.
- Breadsticks.
- Croissants.
What sells best at bake sales? Cupcakes, brownies, and cookies are always winners, but any small, portable baked items are good bake sale ideas. Note that bake sale cookies, cupcakes, brownies, and muffins are easier to package and sell by the piece than are cakes and pies.
What is the failure rate of bakeries? ›
If you want to start a business on industry standards, then know this; 1 in every 5 bakeries fail. Yeah, how do you like those odds? 1 in every 5 bakeries fail so we choose to grow our business outside of industry standards.
Running a bakery means asking a lot of your staff. Hours are tough for bakers, junior bakers, dishwashers, managers, and cashiers. Bakers often have to come in by 4 am - at the latest - to get the day's bread, cakes, and pastries ready in time for the morning rush. Finding experienced bakers can also be a challenge.
How much does a bakery sell per day? ›
How much do bakeries make on an average day throughout the year? On a typical day, bakeries average around 33 to 34 customers, who spend an average of $16.62 per order. Add that all up, and the average daily sales revenue is about $560 at bakeries and donut shops.
Can you make a living with a bakery? ›
The average bakery profit margins are low. A typical margin for a bakery is between 4% and 9%. The reason that bakeries have such small margins is due to competition. To sell your products, you need to offer them at prices that are market competitive yet still allow you to make money.
Do bakery owners make good money? ›
How much does a Bakery Owner make in California? As of Apr 17, 2024, the average annual pay for a Bakery Owner in California is $102,479 a year. Just in case you need a simple salary calculator, that works out to be approximately $49.27 an hour. This is the equivalent of $1,970/week or $8,539/month.
What is the most a baker can make? ›
Baker Salary in California
| Annual Salary | Hourly Wage |
|---|
| Top Earners | $39,476 | $19 |
| 75th Percentile | $33,600 | $16 |
| Average | $30,286 | $15 |
| 25th Percentile | $25,700 | $12 |
Topping the list is Sunnyvale, CA, with Livermore, CA and Arlington, VA close behind in the second and third positions. Arlington, VA beats the national average by $7,927 (25.6%), and Sunnyvale, CA furthers that trend with another $8,078 (26.1%) above the $30,993 average.
Are bakers in demand in USA? ›
Job outlook for bakers in the United States
The projected baker job growth rate is 8% from 2018-2028. About 16,300 new jobs for bakers are projected over the next decade. Baker salaries have increased 17% for bakers in the last 5 years. There are over 176,316 bakers currently employed in the United States.
What are the cons of being a baker? ›
Some of the more challenging aspects of working in a bakery are:
- It can be physically demanding. ...
- It can affect your mood. ...
- It can be challenging to balance your work and personal life. ...
- It can be challenging to advance in this career.
