The average cost of opening a bakery ranges between $10,000 and $50,000. Leasing an existing site costs about $160 per square foot on average. Starting a home bakery in the US costs $4,800 to $8,800. Small bakeries cost $26,600 to $36,700. Required licenses include GST registration, FSSAI, fire, local health licenses. Financing options include loans and capital.
Bakeries make money by selling goods priced higher than production costs. Higher sales bring more profit. The approximate cost of opening a bakery in India is Rs 10-12 lakhs. Equipment and location affect this. Bakery owners can make over $1,000 in sales daily, equaling $365,000 yearly.
Opening a bakery in the US averages $700,000. With planning, investing in a bakery can benefit communities and wallets.
Bakeries make up 5% of the $825 billion US restaurant industry. Most fail to break even, but some see 12% profit margins. Accurately estimating costs avoids common mistakes when opening a bakery. Calculate food costs by subtracting ending inventory from beginning, adding purchases. The total cost divided by sales determines percentage.