If you are a baking enthusiast, starting a small-scale bakery can be a really profitable business. Let it be in the heart of a big city or in a small town, baking businesses will always be needed, and in fact, there are more opportunities than you can think of. The success, however, depends a lot on the choice of the right types of bakery business, proper business planning, and consistent efforts.
If you know the art of baking or have a master chef with you, the talent can lead you to become a reputable bakery brand. So, you must know the types of bakery business that can be highly profitable and make an informed choice. This is important because selecting a specific type of bakery will let you have clearer goals and so, you can access your talents, budget, and objectives accordingly in your bakery business plan.
This article will list the types of bakery business with quick details about each type.
4 Popular & Profitable Types of Bakery Business
Let’s explore the choices you can have. Go through the list and see maybe more you would want to start a specific type or a combination of multiple types of bakery business.
1- Home Based Bakery (Selling Home Baked Goods)
You don’t need a storefront to open a bakery as it can be started right from your kitchen. You will need to get some modifications in your kitchen to use it like a commercial kitchen and require some necessary permits.
You need a lot of marketing when it comes to selling any kind of product, and so is the case with selling home baked goods. With a killer website, pictures of your work, and an easy way for customers to place an order, you can run a bakery from your home without much hassle. Do not forget to check these useful product photography tips to make your website and marketing campaigns stand out.
Though you can use social media for outreach and sales, do not underestimate the power of partnering up with local supermarkets, cafes, and restaurants.
2- Counter Service Bakery
With a small commercial space, customers can walk in and pick up baked goods from an employee-managed counter. This option requires comparatively less space and so the setup cost is not much. But, to make a good profit you must market it properly. Brochures and leaflets are great options to promote this kind of bakery, however, social media can also do wonders if done rightly.
Well-designed and convincing signboards guiding potential customers from the surroundings can also be very helpful.
3- On Demand Baking
Custom cakes and cupcakes are the most relevant example of this kind of bakery. You can have a big outlet in the heart of the city or you may start it from home and sell online through social media.
It’s your taste, designs, and expertise that will make profits, but a good marketing plan is also mandatory. Ideally, you should have a Facebook and or Instagram page that displays your work and has contact details. Active participation in local Facebook groups is a great way to get started and build a targeted customer base.
4- Sit Down Bakery or a Cafe
This type of bakery is one of the popular options today as we see more owners are trying to capitalize on the sit-down and dine options. It’s not just about selling baked items but a list of add-ons can make it a great business, i.e. the ambiance and the experience of visiting your cafe. And, the best part is, this type of bakery qualifies you for several small business loans and grants with which you can grow your business faster.
It’s a growing trend in the bakery industry right now, and particularly in the big cities. Cafes in small towns are relatively an untapped market and have great potential if you can build one in an ideal location and market it properly. The key to success is to have such kind of business in a busy area, or at a place where you are the trendsetter.
Summing up the Types of Bakery Business
I am sure, by reading this line you know what each type of bakery offers and which type excites you more. You should conduct detailed research on your target market to identify what should be the best bakery type to start in there.