Bakery Set up Costs

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Running a bakery is not only lucrative but also a satisfying business venture once you know to manage well the business.

But starting your own bakery involves a big amount of capital and the cost to open a bakery will vary on the size of the business or if you plan to consider franchising. Bakery set up costs is hereby provided.

Is the Cost to Open a Bakery is Minimal?

The hobby of baking different breads, pastries, cookies, cakes, doughnuts, and pies can be converted into a money-making business opportunity like establishing your own bakery. Formerly, a typical bakery (also referred as bakeshop or bake house) only sells breads and cakes but modern bakeries nowadays are now serving drinks like teas or coffees by adding up a space inside the premises so customers can eat up their favorite baked products right after buying.

The good thing about operating a bakery is the great revenue it could generate notwithstanding the status of the economy; as many people considered bread and other baked goods as part of their daily food consumption. It is not necessary to learn the process of baking or to finish a course relating to culinary arts for you to open up a bakery, as soon as you have enough capital you can hire bakers and you can buy the needed baking equipment as well. It is indeed a common question regarding the worth of the start-up cost in running a bakery, from its construction and to its daily operation. The bakery set up costs can be minimal depending on its type such as a retail bakery, wholesale bakery, specialty bakery, or franchise bakery.

Bakery Set up Costs and other Essentials

The initial set up costs for a typical retail bakery is estimated at least $35,000.00 which includes the construction, start-up inventory, equipment, hiring of employees, and acquiring the permits and licenses. However, it is advisable to save for some cash reserves of operating cost which is worth for no less than 3 months. For instance, if the monthly operating expense is $8,000.00 then you should save $24,000.00 as a cash reserve. Combining the initial set up costs and the cash reserve, this will result to approximately $59,000.00 for the total set up costs.

On the other hand, a different figure is needed if you plan to consider franchising instead. It is said that an average cost of $225,000.00 is possible in franchise bakeries and some value exceeds to $350,000.00 up to $460,000.00 as a package deal that covers the franchise fee, site construction and renovation, location, initial inventory, baking equipment and accessories, computer, and other supplies. There are numerous franchise companies in the bakery industry that offers great deals in franchising.

A bakery should have the following start-up equipment:

  • Ovens, microwaves and mixers
  • Mixing bowls
  • Baking dishes, utensils, and cutlery
  • Cooling racks and warming trays
  • Food refrigeration units
  • Kitchen sanitizers and cleaners
  • Display cases for the baked goods
  • Tables and chairs (optional, for dine-in purposes)

2 Comments

  • 1. Nolan Trim said on 1/12/2013 12:18:03 PM
    just in the planning stages; bakery is planned for the dorchester, mattapan or roxbury area of boston, massachusetts; any tips will be more than welcome. thx.
  • 2. Prabindra said on 4/10/2013 3:40:48 AM
    Hi i am planing to open a small bakery shop n wondering how to start first of all i need to calculate the cost of equipments which i am going to use so plz can u help me to calculate the cost of these equipments. Ur advice will be very valuable . Thanks
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