Bakery Startup Costs
- Establishment renovation and bakery construction: $100,000
- Utility expenses: $6,500
- Equipment needed: $100,000
- Store equipment: $13,000
- CCTV installation: $5,000
Bakery Financial Management
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Controlling Bakery Expenses
- Budgeting
- Develop a detailed budget
- Refer to your budget regularly
- Supplier relationships
- Build strong relationships with vendors
- Budgeting
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Operating Costs
- Includes direct and indirect expenses
- Ingredients
- Labor
- Advertising
- Administrative costs
- Includes direct and indirect expenses
Bakery Licenses and Taxes
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Applying for a Bakery License
- Affirmation required from the applicant
- Payment and fees necessary
- Money Order Form as proof of payment
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Tax Form and Food Cost
- Average food costs range from 28-35%
- Popular pastries include Croissants
Bakery Expenses
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Monthly Expenses
- Range from $50,000 to $250,000
- Depend on size, equipment, location, etc.
- Recover start-up costs over time with sales and profits
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Fixed and Variable Expenses
- Fixed: rent, equipment, taxes, insurance, utilities
- Variable: bakery ingredients, marketing, overhead
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Indirect Costs
- Include seasonings, salaries, fuel, electricity
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Calculation of Bakery Products
- Fixed costs: rent, equipment, taxes, insurance, utilities
- Variable costs: ingredients, marketing, overhead
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Good Bakery Slogan
- "The perfect loaf is made with the best ingredients. It’s the perfect way to start your day."
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Fixed Costs in a Bakery
- Include rent, loan payments, salaries, utilities, insurance, taxes
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Variable Costs
- Include labour, ingredient costs, marketing expenses
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Importance of Fixed Costs
- Example with cupcakes
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Production Cost
- Includes fixed costs, variable costs, and overhead
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Business Insurance Costs
- Bakery owners pay approximately $ per month or a median annual premium of $795.