How To Start a Bakery Business in the Philippines: A Beginner’s Guide

How To Start a Bakery Business in the Philippines: A Beginner’s Guide

Pinoys love to eat bread. It’s a staple food in the country second only to rice. For this reason, the bakery business in the Philippines is one of the most profitable ventures you can invest in.

Let’s find out the ins and outs of opening a bakery business in the Philippines and whether or not it’s the right business idea for you.

Go back to the main article: Best Small Business Ideas in the Philippines with High Profit

Table of Contents

Who should start a bakery business, 1. monthly rent, 2. equipment, tools, utensils, 3. ingredients.

  • 4. Delivery Vehicle (Optional) 

a. Cost of Utensils

B. equipment, c. raw materials/ingredients, how much does a bakery business earn, 1. evaluate the reason why you want to open a bakery business, 2. take up baking courses, 3. perform basic market research, 4. find a good location, 5. decide whether to franchise or go on your own, 6. secure the required permits and certifications, 7. start small, 8. buy baking equipment, 9. know your ingredients, i. direct cost, ii. indirect cost, iii. production cost, b. sample product pricing (pandesal business), 11. hire employees, 12. learn how to innovate, tips and warnings.

Full-time entrepreneurs with experience in baking either through a previous job in a bakery or paid hands-on training.

How Much Capital Is Needed To Start a Bakery Business?

Initial investment ranges from ₱50,000 to ₱ 150,000 depending on the monthly cost of rent, equipment, utensils, ingredients, and business permits . Let us discuss every expense you will incur as you start your bakery business.

Unless you have your place, rent will be one of your bakery’s fixed costs. If you’re aiming to place your business in an urban city or populated areas like malls, schools, churches, or jeep/bus terminals, you need to prepare at least ₱10,000 for rent. 

Meanwhile, rental fees are much cheaper in rural areas, towns, or small barangays which might cost only at least ₱5,000. 

You must have a budget of ₱40,000 – ₱100,000 for baking equipment 1 . Estimated prices of some baking equipment are listed below.

  • Stainless gas ovens with 2 – 12 plates cost ₱18,000 to ₱30,000
  • Stainless steel banca ( pasong ) costs ₱3,500 to ₱5,000 depending on sack capacity
  • Display rack ( estante) costs at least ₱10,000 to ₱16,000. You can also purchase smaller bread racks that cost ₱3,500 – ₱4,000
  • Dough roller costs ₱35,000 and above depending on horsepower
  • Other baking tools and utensils include rolling pin, dough cutter, weighing scale, measuring cups, spoons, and spatula with a total cost of not more than ₱2,000. 

There are stores that sell baking equipment packages which are usually cheaper than buying one at a time. Furthermore, you may also consider acquiring second-hand equipment from previous bakery owners as long as they are still in good shape. 

These include flour, sugar, egg, and salt which might cost you not more than ₱2,500. 

4. Delivery Vehicle (Optional)

You may also want to invest in a motor vehicle that enables you to deliver your bread products. A motorcycle together with a sidecar is priced at least ₱90,000.

Sample Breakdown of Investment Requirements (Pandesal Business)

The total capital needed to start a bakery business also depends on what type/s of bread you’re planning to sell. If you’ll exclusively sell plain or malunggay pandesal, for example, the cost to put up the business will be significantly lower since its ingredients are inexpensive and readily available (see the table below to have an idea of how much money you need to start a pandesal bakery).

Measuring cups/Spoons (plastic or stainless steel)₱152.50
Spatula₱61
Stainless bowl #32 (2 pcs.)₱427
Dough cutter₱53.50
Plancha₱64.75
Cheesecloth₱25.50
Weighing scale for spices (0-1 kg)₱334
Dough kneader₱83,853
Oven (8planza – thermostat)₱45,738
Working table₱15,246
Bread100%50 kg₱1,372
Water55%27.5 kg₱0
Refined sugar18%9 kg₱383.75
Vegetable shortening5%2.5 kg₱156.50
Salt1.7%.86 kg₱9
Instant yeast19%.38 kg₱133.50

What Are the Pros and Cons of Having a Bakery Business?

  • Filipinos love to eat bread any time . At breakfast, they love eating pandesal and monay with a hot cup of coffee. Come merienda time, they usually snack on sweeter bread varieties like ensaymada, mamon, cheese bread, and pan de coco, washing it down with a cold bottle of their favorite soft drinks.  If you are to open a bakery business in the Philippines, bread and beverage are the perfect combos to sell.
  • You have ready buyers regardless of the social class you’re trying to target. For the masa , classic Filipino bread is a proven best-seller. The higher-end market, on the other hand, buys more expensive varieties like hamburger buns, French bread, and cinnamon rolls.
  • People buy convenience. The working class is too busy (or broke) to sit down in a fine dining restaurant to eat. They want an affordable food product to satisfy their cravings like bread that they can easily buy from a bakery and bring wherever they go.
  • It’s more demanding than a food cart business or other food businesses that require smaller capital. Apart from the initial investment, you also have to invest a lot of your time, dedication, and patience to see through the tough times. That’s why people who start a bakery business in the Philippines without any passion for bread-making rarely succeed.
  • With lots of bakeries around, setting up a new one means facing a lot of competitors. It might be challenging to offer something new or high-quality to entice potential customers.

Earnings from a bakery business depend on your daily number and type of bread produced, number of sales, and the cost of ingredients used. Generally, the minimum profits of a small bakery business range from ₱1,000 – ₱2,500 per day.

For instance 2 , a bakery with 1 sack of first-class flour (25 kilos) can create a 50-kilogram dough that can produce around 1,670 pieces of pandesal (assuming each piece is at least 30 grams). The average market price of pandesal is ₱2, so if you use one sack of flour per day to produce pandesal , your total revenue is around ₱3,400. The estimated total cost of ingredients used for this amount of pandesal is ₱1,900. Hence, the profit from a sack of flour of pandesal per day is around ₱1,500.

If your bakery produces a variety of bread types, there is a higher chance of earning more. You can pump up your profits up to ₱2,500 daily 3 . However, beware of the risk of experiencing a loss due to additional ingredient costs if you’re planning to produce more bread types.

How To Start a Bakery Business in the Philippines: 12 Steps

bakery business in the philippines 1

Running a bakery business in the Philippines is challenging.

Money is not the be-all and end-all of opening a bakery. You also need the knowledge capital that will help you manage the minute details of this food business.

If you’re just here for the money without the passion, training, and expertise needed, you might quit in the face of struggles. Know your purpose and start from there.

bakery business in the philippines 2

Starting a bakery business is different from baking cookies at home. You can learn the latter through YouTube tutorials and books about baking.

Baking for a lot of people, on the other hand, requires you to scale everything up.

People love to buy from bakeries that produce a hundred or thousand pieces of bread with the same taste. And this consistency can be achieved if you hire bakers who know about business-scale baking.

But what if one or all of your bakers suddenly quit? Unless you also know how to bake, your bakery business will inevitably stop operation.

Fortunately, there’s no shortage of schools or training programs that can teach you hands-on baking experience.

Flour mills provide free or paid baking courses as part of their marketing efforts. The knowledge and skills they teach are recommended for aspiring bakery business owners because their seasoned instructors teach not only hands-on baking experience but also the business side of it.

One month of training experience should be enough to equip you with the tools you need to start running a bakery business.

The following is a list of baking schools owned and operated by flour mills:

  • A baking school in BF Homes, Parañaque City run by Pilmico Foods Corp .
  • Maya Kitchen in Makati City is owned by Liberty Flour Mills.
  • A baking school in Cebu City run by General Milling Corp.

If you’re planning to open a bakery that will exclusively offer pandesal, you can grab the training opportunities offered by these institutions:

a. Department of Science and Technology – Science and Technology Information Institute (DOST-STII)

Address: Gen. Santos Ave. Upper Bicutan, Taguig, Metro Manila

Tel. Nos.: (632)837.2191 to 95 / Telefax: 837.7520

Email: [email protected]

Website: http://www.stii.dost.gov.ph

b. Techno Learning Resources and Community Empowerment Livelihood Center, Inc. (TLRCE)

Address: Room 504, De Oro Bldg., EDSA-Boni Ave., Mandaluyong City, Metro Manila

Tel. Nos.: 84259217 / Mobile: 0998-791-7090 and 0917-378-4224

Facebook Page: TLRCE Livelihood Center, Inc.

bakery business in the philippines 3

Assuming that you’re planning to open a bakery business with small capital, you don’t need to spend a lot of resources on market research.

You can do it on your own by asking people about their favorite bread, observing their behavior, and studying the products and pricing strategies of your close competitors (if there are any).

The results of your market research should reveal the following:

  • Your target market and the type of products that suit them . If you live in a rich neighborhood, serving French bread and other high-end varieties makes a lot of sense. However, it won’t work in a bakery located in Tondo or smaller barangays in provinces where people prefer pandesal and other cheap bread they’ve become accustomed to.
  • Your competitors and how to differentiate your bakery from theirs. Competition is good if you look at it as a sign that there’s a demand for your product. In the case of bakeries, your competitors can help you understand whether there’s enough profitability, learn about the products that make them profitable and get ideas on how to make your bakery better than them.

bakery business in the philippines 4

In order for your bakeshop to flourish and recoup the initial investment faster, you must put it up in a residential area where there’s a great amount of foot traffic.

Ideally, the bakery business should be located where your house is, so you don’t have to worry about paying monthly rental fees. However, you can still rent a space as long as there’s enough foot traffic to justify it.

Good locations for a bakery business include:

  • Near the entrance of or within residential areas with at least 2,000 households
  • Jeepney, taxi, or tricycle terminals

bakery business in the philippines 5

In any food business, the first few months or years are always the toughest.

Without prior experience, you will be left to your own devices. Therefore, you are more likely to commit many mistakes along the way.

But with grit, you can get through this phase and let the experience become your teacher.

For starting entrepreneurs who want to minimize risks, you can franchise a bakery business with a ready system and proven track record.

Although the franchise fee may cost more, you will also worry less since packages–like the ones offered by  Kambal Pandesal 4 of San Miguel Mills–already include baking equipment, marketing support, and free site assistance and monitoring.

Each option has its pros and cons. Weigh the risks carefully and decide based on your level of experience and capital.

bakery business in the philippines 6

By legalizing your business, you can focus more on growing your business instead of worrying about the law running after you.

Related: How to Register a Business in the Philippines: The Ultimate Guide

Bakery businesses in the Philippines need all of the following permits and certifications:

  • Business name registration in the Department of Trade and Industry (DTI) if you will run the business on your own (single proprietorship) or in Securities and Exchange Commission (SEC) if the bakery is owned by a partnership or corporation.
  • Mayor’s Permit or Residence Certificate & Sanitary Permit from the local municipality where the bakery business is located.
  • License to Operate (LTO) as a “food manufacturer” or BFAD Certificate from the Bureau of Food and Drugs (BFAD).
  • Tax Identification Number (TIN) from the Bureau of Internal Revenue.

bakery business in the philippines 7

When putting up a bakery business in the Philippines, expect to incur several mistakes and losses in the beginning.

Hence, it’s a smart move to start with whatever little money you’ve got. It’s better to act on your ideas early even with limited resources than let perfectionism paralyze you.

One advantage of starting small is you are able to test the market and learn which products sell the fastest. You will also learn the nitty-gritty of starting a bakery business without the need to open a big business from the get-go.

Remember, it’s better to start a pandesal bakery and expand later on than to start big and downsize eventually for lack of business strategy.

As your business grows, so will you. And once you’re ready for expansion, you can buy more expensive equipment for mass production and add more bread products to your inventory.

bakery business in the philippines 8

A significant percentage of your capital will be spent buying baking equipment. Since you’ll be using them daily, you must meticulously choose products that can withstand daily operations.

Depending on the size of your bakery business and the type of baked products you’ll be selling, you’ll need all or some of the following baking equipment:

  • Baking trays
  • Bread crusher
  • Bakery oven
  • Dough mixer
  • Bread slicer

To help you get the best value for your money, remember these suggestions when shopping for baking equipment:

  • Explore your options. Compare products in terms of price, features, and technical support. Don’t settle on one product right away without talking to different dealers.
  • Buy equipment based on your daily target output. If you will be baking 1,880 pieces of pandesal, for example, you need a mixer and an oven that both can handle and process one bag of flour.
  • Choose baking equipment made by local manufacturers since they can offer technical service immediately in case the equipment breaks down. In contrast, not only is imported equipment more complicated and expensive, but its manufacturer is also more likely based abroad and won’t be able to provide technical assistance right away.
  • When buying second-hand baking equipment, ensure their quality is still up to snuff. One option would be to buy used equipment from baked shops that have recently expanded. Since they’ve used their old equipment for years, they can attest to their quality and offer them to you at a great discount.

bakery business in the philippines 9

The quality of the ingredients you use affects the price and taste of the baked products. Fail to pick the right ingredients, and your products may end up too bland, too expensive, or both.

In terms of cost, the price of baking ingredients fluctuates depending on demand and competition.

To keep the price of your baked products affordable despite the unpredictable market, choose locally-produced flour instead of imported varieties. The former is cheaper, fresher, and more consistent in terms of quality.

Alternatively, you can take inspiration from Yelly’s Bakeshop 5 which capitalized on bread made from vegetables. By replacing flour with mashed squash or malunggay leaves, they’ve been able to cut costs and also offer healthier, tastier, and cheaper products to their consumers.

Regardless of the type of ingredients you use, it’s important to remember that people buy bread regularly because of its familiar taste. Switching to cheaper ingredients may save you money in the short term, but the buyers you can potentially lose due to a change in taste make it not worth it.

Keep the quality of your ingredients and the process of making your products consistent. People buy quality so only give them quality all the time.

10. Price Your Products Strategically

bakery business in the philippines 10

Regardless of your target market, the price of your products should give you a good profit margin. After all, you won’t call it a business if you price them too low that you are no longer able to profit from it.

As mentioned previously, the ingredients and the formulation you use have a significant influence over how much your baked products will cost.

Under normal standards of baking a loaf of bread, one sack of flour can produce as much as 81 loaves weighing 550 grams each. If you sell it at ₱40 per loaf, you can get a gross revenue of ₱3,240.

Subtracting the overhead cost as well as the cost of materials and packaging amounting to ₱2,536.13, your gross profit margin would be ₱703.87 per bag.

a. Sample Product Costing (Pandesal Business)

Raw material (50kg flour)₱1,372
Ingredients used for 50 kg₱682.75
Labor cost (₱350/day min. wage)₱350
Transportation cost₱100
Water and electricity₱55
Contingency cost (10% of Direct Cost)₱205.47
Total Direct Cost₱2,054.75
Add: Total Indirect Cost₱710.47
Total over the 3,260 pcs yield₱2,765.22/3,260
Production cost per kg₱.84
Add: 10%-20% markup of the production cost₱.17
₱.98
₱1.00

The profit margin will be relatively higher if you sell pandesal that requires fewer and cheaper ingredients.

A bag of flour can produce approximately 1,800 pieces of pandesal weighing 25 grams each. Seling it at ₱2 per piece will give you a total sales of ₱3,600 per sack. From the gross earnings, you will deduct the taxes, manpower, rentals, and other overhead costs.

bakery business in the philippines 11

Even if you learned business-scale baking from the training schools or programs you enrolled in, you can’t do everything on your own.

As your bakery business in the Philippines grows, it will be indispensable to find honest, hard-working people who will take care of the daily operations while you attend to things that matter more.

Finding the right people to man your bakery business can be a matter of trial and error. You need to find experienced bakers and employees who know how to work around a bakery and will never resort to pilfering.

It’s your responsibility to teach them how to properly handle the products and ingredients. One breach in sanitation or the standard baking procedure can negatively affect the final products and eventually the reputation of your business.

To motivate your workers to do their jobs well, you should also do your part. Pay them well and treat them like a family without blurring the line between the employer-employee relationship.

Remember, a happy employee is a reflection of how you run your bakery business. And the more happy employees you have that go the extra mile for their jobs, the more happy customers you’ll gain in the long run.

bakery business in the philippines 12

With the bakery business in the Philippines becoming more saturated, you can never afford to be complacent.

Innovation means constantly upgrading your products or service to stand out from the competition. While your competitors watch your every move, innovation keeps you a few steps ahead of them through new products and ideas.

Previously, you were introduced to Yelly’s Bakeshop which uses vegetables instead of flour to make its nutritious bread. This unique selling proposition sets them apart from others who follow the same traditional baking techniques.

Whether it’s through improving customer service or offering products not found anywhere else, a bakery business should never stop conceptualizing, implementing, and testing ideas that will make them more memorable for its consumers.

  • Focus on providing good products and top-notch service. Only use quality ingredients and keep the taste of your products consistent. Put yourself in your customers’ shoes and imagine how you want to be served. When all bakeries offer the same products, the only way to have an edge over others is to offer good service. Require your employees to wear proper uniforms and smile at every customer regardless of social status. Leave a good first impression, and you’ll earn repeat customers in no time.
  • Be a hands-on bakery business owner. Provided that all the aspects of the bakeshop are taken care of, hard work is what will make the business last. As Metring Cuevas 6 of Cuevas Bakeshop reveals, a bakery business should be run round-the-clock because bread is a delicate product to sell. It’s not a business for the lazy so don’t open a bakery business unless you’re ready to commit your time and effort to make it a success.
  • Market your bakery business to nearby stores . If you’re selling buns (monay ) or similar bread types, nearby stores may order a bulk of these bread products from your bakery. This is an effective strategy not just to introduce your product in the market but also to earn higher from wholesale orders. 
  • Monitor the quantity of ingredients used in bread production. Set a target quantity of bread to produce given a certain amount of ingredients. For instance, ask yourself how many can you produce for every sack of flour. Keeping track of your usage of ingredients prevents excessive costs due to wastage.
  • Bakery Equipment Canvassing. Price in the Philippines as of June 2019 [Video file]. (2019). YouTube. Retrieved October 05, 2022, from https://youtu.be/d90xsK7Qjv0.
  • Jaruda, A. (Producer). (n.d.). Totoo ba na malaki ang kita sa bakery business? [Video file]. Retrieved October 5, 2022, from https://youtu.be/za4G4bjA19Y
  • Magkano ang kinikita ng isang pangkaraniwang bakery? [Video file]. (2021, October 21). Retrieved October 5, 2022, from https://youtu.be/16oYmEVwGKI?t=478
  • About Us. (n.d.). Retrieved October 7, 2022, from http://kambalpandesalfranchise.weebly.com/about-us.html
  • My Puhunan: Nutritious bread from Yelly’s Bakeshop [Video file]. (2016, November 23). Retrieved October 7, 2022, from https://youtu.be/tWQXjpid61g
  • History of Cuevas Bakery [Video file]. (2020, April 22). Retrieved October 7, 2022, from https://youtu.be/sKy1fil2h1M?t=35

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How To Write a Bakery Business Plan in 9 Steps

Learn how to write a bakery business plan, section by section. Get inspiration from examples of other bakeries.

baking dish with 6 chocolate chip cookies on it: bakery business plan

If you consider yourself a talented baker with entrepreneurial dreams, starting a bakery is an excellent business idea you can do from home or from another brick-and-mortar space.

But before you launch into how to start a food business with your baking prowess, it’s important to write a bakery business plan.

Below, learn how to write your bakery business plan, section by section, using this business plan guide as a base. Follow along by downloading this business plan template and modifying it to fit your needs.

Why you need a bakery business plan

Not every business starts out with a formal plan, but those that do have an easier road to success. There are a few key benefits to writing a bakery business plan:

Objectively evaluates your business ideas

Writing a business plan helps you objectively evaluate your food business ideas —and researching and documenting your ideas allows you to take a step back and see if there’s really an opportunity there.

Builds a blueprint for moving forward

Your business plan serves as a roadmap for moving forward. Writing a business plan can identify the next steps you need to execute your idea. You can keep referring back to your business plan to make sure you’re on track for your original vision.

Helps figure out what you need

The process of writing a bakery business plan will also show you your gaps and needs. Listing exactly what you need to start your bakery business can show you what you’ll need to do to make it a reality.

Helps you get capital

A business plan helps you get capital, even if it’s a home bakery business plan. You won’t be able to secure funding for your business —whether from investors, lenders, banks, or even crowdfunding —without a business plan for your bakery.

Bakery business plan template

A bakery business plan sample template is immensely helpful, especially if you don’t consider yourself a writer. When you start with a template, you can see every section that you need to complete. Templates can also offer prompts to help you figure out what to say and how to say it.

This free business plan template , for example, offers a framework to simplify the job of writing out a business plan, so you can operate with confidence. It helps you analyze the market and understand how much time, money, and resources you’ll need to start and scale your bakery business.

How to write a bakery business plan

  • Executive summary
  • Company overview and description
  • Market analysis
  • Management and organization
  • Products and services
  • Customer analysis and segmentation
  • Marketing plan
  • Logistics and operations plan
  • Financial plan and projections

1. Executive summary

The executive summary section of your bakery business plan summarizes the document and its contents. Remember, this is meant to highlight what’s to come in your business plan, not serve as a summary of your business idea.

Focus on your business’s core strength to draw in your reader. Keep it concise and to the point—you don’t want to lose your reader before they reach the meat of your baking business plan. Think about a hook to grab your audience’s attention.

Remember your target audience for the business plan and cater the executive summary to their needs. You might even have a few different versions of your executive summary to appeal to different readers, such as investors, lenders, or business partners.

The executive summary should be about a page in length and answer the following questions:

  • What is your brand?
  • What does your bakery do?
  • What does your bakery want to do?
  • What is the following text about?
  • Why should your audience care?
  • What highlights should readers be excited about?
  • What do you sell and how is it different from your competitors?
  • Who are your customers?
  • What is your marketing strategy?
  • What is your current and projected financial state?
  • How much money do you need to get started?
  • Who is involved in the bakery?

2. Company overview and description

This part of your bakery business plan should drill down further into your business idea. Here, you’ll want to identify your bakery’s business structure — sole proprietorship, li imited liability corporation (LLC) , general partnership, etc.—and business model .

You’ll also use this section to talk about the baked goods industry and about your specific niche within it—whether you’re offering keto-friendly, gluten-free, or otherwise lifestyle-specific items; cakes; catering; frozen desserts; savory pastries, etc. Cape Whoopies , for example, sells gourmet whoopie pies made in Maine. Its bakery business plan would make note of that in the company description section.

Screenshot of Cape Whoopies’ homepage, showing three different whoopie pies in the hero image.

The company description should also outline your vision and mission statement and your value proposition . Your vision and mission statement encompass what you hope to do with your bakery, and your value proposition sums up why people would want to buy from you.

Use this section to talk about your team, including key personnel and their salaries. The bakery La Monarca , for example, would identify its two founders as well as any board members or employees.

Screenshot of La Monarca’s About Us page, showing a photo of the two co-founders.

Finally, list your short- and long-term business goals. Your business goals should be quantifiable and measurable, eliminating subjectivity. You’ll also want to put an estimated timeline for your business goals and when you hope to accomplish them.

3. Market analysis

The market analysis section of your bakery business plan quantifies how big your potential market is and validates that there’s enough demand for your business.

This section of the bakery business plan should explore the following:

  • Industry trends
  • Laws and regulations for the food industry
  • The demographics of your target customer
  • Where, why, and how they shop
  • The size of your target market
  • The price people are willing to pay for what you sell

You may also include a SWOT analysis , which identifies your strengths, weaknesses, opportunities, and threats, as well as a competitive analysis , outlining the competitive landscape and where your bakery fits in.

business structure of your bakery and whether you’ve elected to incorporate as a sole proprietorship, a limited liability corporation (LLC) , a corporation, or something else.

Don’t stress over the name of your bakery business too much yet—you don’t have to use your official incorporated name as your public-facing name forever. You can always file for a DBA (doing business as) or just publically drop the “Inc.” or “LLC” at the end of your name. Balkan Bites , for example, is technically an LLC called “Balkan Bites LLC.”

Screenshot of Balkan Bites’s privacy policy showing its full legal name, Balkan Bites LLC.

You’ll also want to include information about the makeup of your team, even if you plan to run the business yourself. Here are some other people and entities you might include:

  • Owner . Who is the owner of the bakery?
  • Business partner(s) . List and identify the role of any business partners you plan to work with. Make sure you note the ownership percentage breakdown.
  • Management team . It helps to visualize the team with an organizational chart to show how roles and responsibilities are structured and contribute to your bakery’s bottom line.
  • Financial advisers . Maybe they’re not in-house, but you might have contracted financial advisers or accountants helping you to manage finances.
  • Employees . Even if you don’t plan to open your bakery business with employees, you might have plans to hire staff in the future. Make note of that in this section.

5. Products and services

In the products and services, you’ll list which products and services you’ll sell through your bakery. You’ll likely sell something like cakes, cookies, chocolates, pies, or even baking kits, and potentially branded merchandise products .

As far as baked goods go, consider more narrowly defined niches within the overarching bakery niche. For example, products that are tied to a specific culture, like a bakery that specializes in Italian cookies or French pastries, or event-related baked goods, like wedding or birthday cakes, all present excellent niches. You could also offer gluten-free, sugar-free, organic, or dairy-free goods.

The business plan should cover how many different types of products you’ll offer, and if you plan to release new recipes, or limited-edition or seasonal items.

You’ll also want to consider other non-bakery items. Dough Dealer , for example, doesn’t actually do any baking, so it doesn’t sell any baked goods. Instead, it sells kits with baking supplies online, as well as merchandise. You can do the same thing with a print-on-demand company .

Screenshot of Dough Dealer’s product listings.

6. Customer analysis and segmentation

The customer segmentation section of your bakery business plan should discuss the different groups of shoppers you intend to target with your bakery. Include the following information about each of your segments:

  • How old they are
  • Where they live
  • Where they work and what they do
  • Education level
  • What technology they use
  • Their values, beliefs, and opinions
  • Common behavior patterns
  • How they shop

Here’s what a customer segmentation section might look like: Levain serves a few distinct geographic markets in Puerto Rico, including San Juan, Aguadilla, Mayagüez, and Rincón. Each of these regions represents a specific customer segment for the bakery, and they may have different shared characteristics. So Levain adjusts its promotional and marketing strategy according to its audience.

Image of Levain’s homepage tailored for location.

7. Marketing plan

Your marketing plan is a high-level overview of how you plan to promote your bakery. The marketing plan should outline which channels you plan to use for marketing and advertising, as well as any budgets you might have. At a minimum, this section of your bakery business plan should define the following:

  • Price : How much your products cost and why.
  • Product : What you’re selling and how you differentiate it from other goods in the market.
  • Promotion : How you’ll get your products in front of your ideal customer.
  • Place : Where you’ll sell your products, including online and in-person.

Zero-sugar cookie brand Sundays used email marketing to promote its bakery business and build buzz pre-launch. The brand allowed people to subscribe so they would be alerted when the online store launched. This approach is also an excellent tactic for email list-building .

Here are some more resources to help assemble the marketing section of your bakery business plan:

  • How to Build a Marketing Plan That Actually Works
  • 7 Inspiring Marketing Plan Examples (and How You Can Implement Them)
  • Driving Growth: 12 Best Marketing Strategies Any Small Business Can Execute

8. Logistics and operations plan

Your logistics and operations plan outlines exactly how you’ll create and sell products and fulfill orders. Be sure to address each of the following:

Identify where you’ll purchase the raw ingredients you need to make your baked goods and where they’re produced. Will you purchase anything pre-made from suppliers or make everything from scratch?

Outline whether you’ll make, wholesale, or even dropship your products. Describe how long it takes to receive raw ingredients and how long it takes to produce your baked goods. You’ll also want to think about a contingency plan: How will you handle a busy season or an unexpected spike in demand?

Where will you and any team members work? Do you plan to have a physical retail space as well as the bakery? If yes, where? Will they coexist or exist in different locations?

List which tools and technology you require to get you up and running: think items like ovens, mixers, refrigerators, etc., as well as business tools like a POS system or card reader. You’ll even list items like lightbulbs, counters, and anything else you’ll need to purchase to open your bakery.

Shipping and fulfillment

Will you be handling all the fulfillment tasks in-house or will you use a third-party fulfillment partner? Will you have a space for in-person shopping or pickup?

How much raw ingredients will you keep on hand, and where will they be stored? How much finished product can you keep on hand, and where? How will you ship products to partners if required, and how will you approach inventory management ?

The bakery Wildgrain , for example, operates on a subscription-based business model. The brand outlines how it works on its website, information that would also be suitable for the logistics and operations section of its bakery business plan.

Screenshot of Wildgrain’s “how it works” page.

The sourdough bakery Florets offers a subscription plan as well as in-person pickup at its Auckland-based bakery location or at a weekly farmers market.

The Protein Bakery also has a few methods for fulfillment. Customers can visit its New York City–based retail shop or order online, and other businesses can also purchase its products wholesale.

9. Financial plan and projections

The financial plan shows possible funders that you’ve done your math homework and crunched the numbers to figure out how much money you need to launch, how much you need to operate, and whether you can turn a profit.

The financial plan typically includes the following financial statements :

  • Income statement
  • Balance sheet
  • Cash flow statement

Here’s a spreadsheet template that includes everything you’ll need to create the above financial statements, including some sample numbers. Just edit it as needed.

When putting together your financial plan and statements, be realistic and specific. While you want to be optimistic about your projected success, it’s equally important to be pragmatic. Use the information you’ve learned developing other parts of your bakery business plan to calculate accurate, achievable numbers.

Launch your bakery business with Shopify

Starting your new venture with a successful bakery business plan is a surefire way to set yourself up for success from the get-go. Your bakery’s business plan will keep you and your team accountable and aligned with your vision and goals.

When you’re ready to launch, build your website on Shopify. With Shopify, you can seamlessly integrate your retail and ecommerce tech stack to maintain complete control of your growing business.

Bakery business plan FAQ

How do i start my own bakery business plan, how much money can you make owning a bakery, what equipment is needed for a bakery.

  • Food processor
  • Dough proofer
  • Dough sheeter
  • Bread slicer
  • Refrigerator and/or freezer
  • Baker’s rack
  • Baking pan and dishes
  • Bowls, measuring cups, spoons, spatulas, etc.
  • Pastry bags
  • Work counters
  • Dry storage

Is a bakery business profitable?

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Bakery Business Plan PDF Example

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  • July 22, 2024
  • Business Plan

Business plan template for a bakery

Creating a comprehensive business plan is crucial for launching and running a successful bakery. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your therapy bakery’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a bakery business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the food&beverage industry, this guide, complete with a business plan example, lays the groundwork for turning your bakery concept into reality. Let’s dive in!

Our bakery business plan is designed to encompass all crucial elements required for a thorough strategic approach. It details the bakery’s operations, marketing strategy, market environment, competitors, management team, and financial projections, ensuring a holistic view of the business’s path to success.

  • Executive Summary : Offers an overview of your bakery’s business idea, market research , management team, and financial plans.
  • Bakery & Location: Describes your bakery’s layout, features, and why its location is perfect for customers.
  • Operations: Outlines daily bakery operations, including baking schedules, staffing, and ingredient sourcing.
  • Key Stats: Provides figures on the size and growth of the bakery market.
  • Key Trends: Points out new trends in the bakery industry, such as the rise in health-conscious and specialty products.
  • Key Competitors: Discusses major nearby bakeries and how your bakery offers something different.
  • SWOT : Analyzes strengths, weaknesses, opportunities, and threats related to your bakery.
  • Marketing Plan : Outlines methods for promoting your bakery and keeping customers coming back.
  • Timeline : Lists important goals and milestones from the beginning through the first year.
  • Management: Shares info on who runs the bakery and their responsibilities.
  • Financial Plan: Forecasts the bakery’s financial outlook over 5 years, including income, profit margins, and main expenses.

small bakery business plan sample philippines

Bakery Business Plan

small bakery business plan sample philippines

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your bakery’s business plan, offering a concise overview of your bakery and its offerings. It should detail your market positioning, the range of baked goods and confectionery items you offer, its location, size, and an outline of day-to-day operations.

This section should also explore how your bakery will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your bakery’s unique selling points that differentiate it from these competitors. These could include special dietary options like gluten-free or vegan products, artisanal or locally sourced ingredients, or a particular specialty in certain types of baked goods.

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the bakery’s success. This could involve their culinary expertise, business management experience, or community relations. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your bakery’s financial plan.

Bakery Business Plan Executive Summary Example

Bakery Business Plan executive summary1

Business Overview

When detailing the business overview in your executive summary, it’s crucial to provide clear and concise information. This includes the name of your bakery, its location, and an overview of daily operations.

These details not only introduce your business but also set the stage for its unique qualities. Indeed, a unique selling proposition (USP) is what sets your bakery apart from the competition. Whether it’s your focus on artisanal techniques, your range of gluten-free options, or your commitment to sustainability, your USP should be a focal point of your executive summary. It’s what captures the interest of your audience and showcases the unique value your business brings to the market.

Example: For instance, “Sweet Temptations Bakery,” located in downtown Springfield, operates from a 1,500 sq. ft. space on Main Street. It opens early at 6 AM, serving a range of traditional and health-conscious baked goods. Their USP is the unique combination of classic baking styles with modern trends, offering gluten-free and vegan options alongside traditional pastries.

Market Overview

Understanding and presenting the market size , growth trends, and industry dynamics are integral parts of the market analysis .

This section should highlight the potential of the U.S. bakery market, backed by relevant data like market value and growth rates. Discussing industry trends, such as the rising demand for organic ingredients or innovative baking techniques, provides insight into the evolving landscape and where your bakery fits within it.

Equally important is the competitive landscape. Your executive summary should identify key competitors and explain how your bakery positions itself in this environment. Whether you focus on niche products, exceptional customer service, or unique flavor combinations, this is your opportunity to showcase how your bakery is poised to stand out in a crowded market.

Example: Consider Sweet Temptations Bakery in the U.S. bakery market, valued at $30 billion with a 5% annual growth rate. While competing with local bakeries and national chains in Springfield, Sweet Temptations differentiates itself by offering products like avocado-chocolate muffins and quinoa bread, catering to health-conscious consumers.

Management Team

The management team’s background and expertise are significant assets to your business. In your executive summary, highlight the key qualifications and experiences of your team members.

This might include your co-founder’s decade of experience in food service management or your head baker’s formal culinary training. Demonstrating the team’s expertise not only builds credibility but also assures potential investors and partners of your bakery’s capability to succeed.

Example: At Sweet Temptations, co-founders Jane Doe and John Smith lead the team. Jane, an MBA graduate, has 15 years of experience in the hospitality industry, while John, a culinary school graduate, brings his expertise from working in renowned European bakeries, adding substantial value to the bakery’s management and product innovation.

Financial Plan

The financial plan overview should succinctly summarize your financial goals and projections, including revenue targets and profit margins, to provide a clear picture of your bakery’s financial trajectory.

Example: Sweet Temptations aims for $500,000 in annual revenue by year three, targeting a 12% EBITDA margin. The financial strategy includes an initial investment in high-quality baking equipment and a welcoming shop atmosphere, with sales growth driven by effective marketing and community involvement, positioning the bakery for profitability and local acclaim within five years.

For a Bakery, the Business Overview section can be concisely divided into 2 main slides:

Bakery & Location

Briefly describe the bakery’s physical environment, emphasizing its design, warmth, and the inviting atmosphere that welcomes customers. Mention the bakery’s location, highlighting its accessibility and the convenience it offers to customers, such as proximity to community centers, schools, or ease of parking.

Explain why this location is advantageous in attracting your target clientele, which might include local residents, businesses looking for catering options, or foot traffic from nearby shopping areas.

Detail the range of baked goods and products offered, from bread and pastries to custom cakes and specialty items. Outline your operational strategy, including sourcing of ingredients, baking schedules to ensure freshness, and any unique services such as custom orders or catering.

Discuss your pricing strategy , ensuring it reflects the quality of ingredients and craftsmanship involved and matches the market you’re targeting. Highlight any special offerings, loyalty programs, or community events that provide added value to your customers, encouraging repeat visits and customer loyalty.

Business Plan_Bakery location

Industry size & growth

In the Market Overview of your bakery business plan, begin by assessing the size of the bakery industry and its potential for growth. This evaluation is essential for grasping the market’s extent and pinpointing opportunities for expansion.

Analyze factors such as the increasing demand for baked goods, both traditional and innovative, and how consumer preferences are shaping the industry.

Key market trends

Continue by discussing recent market trends that are influencing consumer behavior and preferences in the bakery sector. This might include a growing interest in artisanal and craft baked products, the surge in popularity of gluten-free and vegan options, and the integration of international flavors and ingredients into traditional bakery products.

Highlight the demand for high-quality, fresh, and specialty baked goods that cater to diverse dietary needs and cultural tastes, as well as the trend towards more health-conscious and sustainable baking practices.

Key competitors

A competitive analysis is not just a tool for gauging the position of your bakery in the market and its key competitors; it’s also a fundamental component of your business plan.

This analysis helps in identifying your bakery’s unique selling points, essential for differentiating your business in a competitive market.

In addition, the competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.

Identifying Your Competitors in the Bakery Industry

Identifying competitors is the first step in understanding your position in the bakery market. Begin by mapping out local bakeries and pastry shops. For instance, if your bakery specializes in artisan bread, your direct competitors include nearby bakeries known for their bread, as well as larger grocery stores with in-house bakeries. Don’t overlook indirect competitors such as cafes or dessert shops that offer a range of baked goods.

Use online tools like Google Maps to get a geographical sense of competitor distribution. Platforms like Yelp and TripAdvisor offer customer reviews and ratings, providing insights into competitors’ strengths and weaknesses. For example, if several reviews commend the cozy ambiance and fresh pastries at “Sweet Treats Bakery,” this is a key strength of your competitor.

Bakery Business Plan key competitors

Bakery Competitors’ Strategies

Analyzing the strategies of these competitors involves several aspects:

  • Baked Goods Offerings : Examine their range of baked goods. If “Healthy Bakes” down the street is gaining popularity with its gluten-free and vegan options, it indicates a market trend towards health-conscious baking.
  • Baking Techniques : Consider the baking techniques and styles. A bakery like “Old World Breads” that focuses on traditional, handcrafted bread might appeal to a different customer base than one like “Modern Bakes,” known for innovative and trendy pastry creations.
  • Pricing Strategy : Compare your prices with those of competitors. Are your baked goods priced similarly to “Budget Bites Bakery” or are they more aligned with the premium offerings at “Gourmet Pastries”?
  • Marketing Tactics : Look at how competitors market their products. Do they have a strong social media presence, or do they rely more on local community engagement and word-of-mouth?
  • Customer Experience : Assess the in-store experience. For instance, “Cozy Corner Bakery” might be known for its inviting atmosphere and friendly staff, enhancing the customer experience.
  • Operational Efficiency : Observe if competitors are using technology or innovative processes to streamline baking and serving, such as “Efficient Eats” with its online ordering system.

What’s Your Bakery’s Value Proposition?

Reflect on your bakery’s unique value proposition . Maybe your bakery is known for its signature sourdough bread, or perhaps you offer a unique range of international pastries that aren’t available elsewhere in your area.

Identify market gaps through customer feedback and industry trends. For example, the growing interest in artisan and locally sourced ingredients could represent a market opportunity if competitors are not addressing this demand.

Consider your location: A bakery in a busy downtown area might focus on quick service and grab-and-go items, while a bakery in a residential neighborhood could capitalize on a more relaxed, community-oriented atmosphere.

First, conduct a SWOT analysis for the bakery , highlighting Strengths (such as artisanal baking skills and a unique range of products), Weaknesses (including potentially high ingredient costs or stiff competition), Opportunities (for example, a growing interest in specialty and health-conscious baked goods), and Threats (such as fluctuations in raw material prices or changes in consumer spending due to economic conditions).

Bakery Business Plan SWOT

Marketing Plan

Next, formulate a marketing plan that details strategies for attracting and retaining customers through targeted advertising, seasonal promotions, a compelling social media presence, and engagement with the local community. Consider loyalty programs, baking workshops, and collaborations with local businesses as part of your promotional activities.

Marketing Channels

Explore diverse marketing channels to connect with your audience and promote your bakery:

Digital Marketing

  • Website and Online Presence: Your bakery’s website should be more than just an online menu. It should be a reflection of your brand story and values. Incorporate high-quality images of your delectable baked goods, customer testimonials, and an easy-to-navigate layout. Implement an online ordering system for pickups or deliveries to enhance convenience for customers.
  • Social Media Engagement: Utilize platforms like Instagram, Facebook, and Pinterest to share high-quality images of your baked goods, and behind-the-scenes content, and interact with customers. Engage with your audience by responding to comments and messages promptly.

Local Advertising

  • Flyers and Local Partnerships: Distribute well-designed flyers and brochures not only in high-traffic areas but also in locations aligned with your target audience’s interests, such as fitness centers, coffee shops, or local events. Collaborate with nearby businesses for cross-promotions or joint marketing efforts, allowing you to tap into each other’s customer bases.
  • Community Engagement: Participate in local events, farmers’ markets, or charity bake sales to increase visibility and connect with the community. Sponsor or host baking workshops or educational sessions to engage with potential customers.

Promotional Activities

  • Seasonal Offers : Launch special promotions tied to seasons or holidays, such as ‘Holiday Cookie Gift Boxes’ or ‘Spring Cupcake Flavors’. Create limited-time offers that create a sense of urgency and exclusivity.
  • Loyalty Programs: Loyalty programs are effective tools for fostering customer loyalty. Implement a tiered rewards system or a punch card where customers earn points for each purchase, redeemable for discounts or free items. Personalize rewards based on customer preferences to enhance engagement.

Sales & Marketing Plan for a Bakery (Example)

Sales Channels

Optimize sales channels to boost revenue and customer satisfaction:

In-Store Upselling

  • Value-Added Services : Train your staff to recommend add-ons like specialty spreads for bread, custom cake decorations, or exclusive dessert pairings during customer visits. Offer tastings or samples to encourage additional purchases.
  • Product Displays: Enhance the in-store experience by designing product displays that are visually appealing and informative. Incorporate storytelling elements to highlight the ingredients or craftsmanship behind your baked goods. This approach not only drives sales but also educates customers about your products.

Online Sales and Services

  • E-commerce Integration: Set up an intuitive and secure online ordering system for specialty items, customized cakes, or pre-packaged baked goods for pickup or delivery. Ensure a seamless checkout process to reduce cart abandonment.
  • Virtual Consultations: Offer online consultations for customized cake designs or event catering. Provide options for virtual tastings or meetings to discuss personalized requirements, ensuring a personalized and convenient experience.

Membership and Rewards

Encourage repeat business and foster customer loyalty:

  • Subscription Models: Develop subscription-based models offering regular deliveries of baked goods or exclusive access to new products. Create tiers with varying benefits to cater to different customer preferences.
  • Reward Programs: Institute a digital loyalty system rewarding customers with points for purchases redeemable for discounts or complimentary items. Send personalized offers based on customers’ purchase behavior to enhance engagement.

Finally, establish a detailed timeline that marks key milestones for the bakery’s launch, marketing initiatives, customer base development, and potential expansion goals. This timeline should guide the business towards achieving its objectives with precision and clarity, ensuring systematic progress in a competitive market.

Business Plan Gym Timeline

The Management section focuses on the bakery’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the bakery towards its financial and operational goals.

For your bakery business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Bakery Business Plan management1

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your bakery’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your bakery business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

Bakery Business Plan financial plan

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  • Sample Business Plans
  • Food, Beverage & Restaurant

Bakery Business Plan

Executive summary image

Ready to turn your love for baking baked goods into a successful business?

To ensure that your business endeavor happens to be a flourishing one, write a business plan specifically crafted for your unique bakery business.

From helping you finalize the bakery location to evaluating the financial position of your business- a detailed plan uncovers every detail essential to kickstart a successful bakery business.

Writing a business plan can get complicated. With this step-by-step guide, you will have all the information essential to write a bakery business plan . Also, download our free bakery business plan template and modify it to fit your needs.

Ready to dive in? Let’s get started.

Key Takeaways

  • Conduct a detailed industry analysis of the bakery market to understand market trends, target market, and the growth scope of your business.
  • Outline the business goals and devise a business strategy that is in line with your bakery’s branding image.
  • Analyze the competitive landscape of your business and identify local businesses that will offer direct and indirect competition to your business.
  • Make calculations, assumptions, and projections to form key reports such as income statement, balance sheet, Cash Flow statement, and Break-even analysis.
  • Determine the operations of your bakery business by outlining the procedures, processes, and equipment required to kickstart the business.
  • Determine the baked goods and services you will sell through your bakery business.

Why is a bakery business plan important?

A business plan helps achieve your business objectives by creating a roadmap that will guide your bakery business in a strategic direction. An actionable well-drafted plan offers an in-depth view of your business idea and are a few benefits you must know:

  • A business plan instills clarity in your business idea. All the ideas that were messed up in your mind start getting a clear point of view once you start writing a plan.
  • A business plan is your checklist to understand what different aspects of the business need- the resources, equipment, manpower, licenses, etc.
  • It helps crystallize your business vision and what it aims to achieve in the bakery market.
  • A business plan optimizes the bakery operations and brings down the operating expenses by ensuring the resourceful allocation of bakery resources.
  • A plan evaluates the financial aspects and viability of your bakery idea before you actually invest money in the business.

And, of course, a well-crafted plan will get you essential funds to get started in the bakery market. Moving forward, let’s craft a spectacular plan for your bakery business.

How to Write a Bakery Business Plan: A Complete Guide

From writing an executive summary to creating your financial plan- let’s decode the key elements of writing a business plan.

1. Get a business plan template

Before you start writing a business plan, consider getting a sample template to simplify the entire plan writing process.

A lot of information goes into writing a comprehensive business plan. Addressing all the key components in brief details is a challenging task.

However, by using a template, you can add structure to your plan. Not only that, it will help you organize the information clearly in a cohesive manner. With appropriate prompts, you will know exactly what to write in each section.

We know you would start searching for a template. Well, the Upmetrics business planning template is perfectly relevant and suited for your bakery business. It’s intuitive, modern, and available for free download.

small bakery business plan sample philippines

Need Assistance Writing a Bakery Business Plan?

Get Upmetrics’ business plan template, import data directly into the editor, and start editing using Upmetrics AI Assistant.

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Start Planning Now

2. Write an executive summary

The executive summary is a concise description of your entire bakery business plan. It highlights the key findings and entices the reader to delve further into your business plan. So make sure to keep it interesting.

A well-drafted executive summary includes an answer to every question, a potential investor might have.

For instance,

  • What is the core objective of your bakery business?
  • What are the pain points of your target customers and what solutions can you offer?
  • What type of baked goods will you offer?
  • What is your target market?
  • What is your marketing strategy?
  • What are the financial highlights of your bakery business?

As you start writing, remember that the executive summary should summarize the plan and not your business idea.

Lastly, fit your compelling summary description in 1-2 pages.

3. Conduct a competitive and market analysis

The market analysis section paints a clear picture of your ideal target market, bakery industry trends, and your competitors in the market. In a way, this section is your chance to validate the potential success of your bakery shop.

The market analysis section of your bakery plan must include:

Market share, growth potential, and industry trends

Identify your targeted available market (TAM) through thorough market research and determine your share in the bakery market. Analyze the emerging trends in the bakery market and assess your growth potential as a retail bakery.

Understanding of the target market 

Who will be your potential customer at a bakery shop?

It gets much easier to succeed in the market when you have a clear understanding of who your target customers are.

In this section of customer analysis, you will create a buyer’s persona of your ideal customer by understanding their psychographic and demographic details.

Competitor analysis

This is an equally important part of the market study, where you evaluate the position and competitive landscape of your bakery shop.

Begin by identifying your top competitors and evaluate your strengths, weaknesses, opportunities, and threats against other bakeries. Establish your competitive edge and show the potential investors that your business stands a promising opportunity in the competitive market.

small bakery business plan sample philippines

Want to Perform Competitive Analysis for your Business?

Discover your competition’s secrets effortlessly with our user-friendly and Free Competitor Analysis Generator!

4. Prepare a company overview

The company overview section of a bakery’s business plan is a brief description of your bakery business concept, its legal structure, location, and value proposition.

Be creative and write a compelling section that can propel the readers’ interest in your business idea.

Wondering what to include in your bakery’s company overview section? Let’s check:

  • Type of bakery business: retail bakery, specialty bakery, cloud bakery, mobile bakery, etc.
  • Business structure: Sole proprietorship, LLC, partnership LLC, corporation, etc.
  • Mission statement
  • Value proposition
  • Quantifiable business goals and milestones
  • History and background of the bakery, if applicable
  • Partnership and ownership structure
  • Name of owners/ partners
  • Operating hours
  • Service style

Drill down to details and make this section an engaging read.

5. Describe your products and services

After describing your bakery structure and mission statement in the previous section, you will now outline the product and service offerings of your bakery shop.

As a bakery business, you may sell a variety of delicious baked goods such as pastries, cakes, fresh bread, cookies, tarts, pies, donuts, sweet buns, etc. Add this to your product section and also non-baked goods such as savory snacks, coffee, etc, if it’s on your menu offering.

Specifically mention, if you will have products for special diets, i.e. gluten-free, keto-friendly, sugar-free, vegan baked goods, etc.

products and services for bakery business plan

6. Bakery store design and layout

An effective bakery business plan must include a blueprint of your bakery shop’s layout and design to demonstrate the bakery’s concept practically to the readers.

Mention your bakery size and the space allocated for the back of the house and front of the house operations. Also, explain how the proposed layout will increase the efficiency of your business operations in great detail.

In this section, you will also talk about the decor and theme that will create a warm ambiance for your target audience. Keep in mind that the decor should reflect the branding image you want to create in your target market.

Offer an immersive experience to the readers while explaining this section.

bakery store design and layout

7. Prepare a bakery marketing plan

The bakery marketing plan offers a detailed outlook of marketing strategies you will use to market and promote your bakery shop. Consider it as a roadmap that will guide you in building a brand of sustainable value in the market.

So how do you build a perfect marketing plan?

Begin by identifying the marketing channels and different types of digital marketing campaigns that will work best for your potential customers. Now, allocate the monthly budget to different marketing activities. Lastly, devise a marketing strategy for each channel with a clear plan of action.

Here are a few marketing strategies that are popularly used by successful bakery businesses:

  • Social media platforms for brand development
  • Email marketing for promotional offers
  • Video content such as easy baking recipes, tips, tricks, etc
  • Online workshops and live sessions
  • Influencer marketing
  • Tasting events and sampling
  • Customer testimonials

Now detail all your plans in this section and show your investors that you have a solid way to establish your business’s popularity in its target market.

8. Outline your organizational structure

In this section of your bakery business plan, you introduce the management team and employees at your shop. Also, highlight the organizational structure and hierarchy of employees in the organization.

Begin by introducing the owners and their role in your organization. Highlight their experience in the bakery industry and the key skills that can benefit the business.

Introduce your talented baker and their role in recipe development and standardization. Show their experience in the baking field and prove their asset worthiness.

Draw a clear flowchart depicting the flow of authority and responsibility in your bakery business. It is your chance to show the investors that you have a team and knack to take this business on a successful path.

9. Create a logistics and operational plan

The operations plan of your bakery business plan is a strategic document highlighting the processes, procedures, and resources needed to efficiently run your bakery shop.

A well-planned operations plan is like a business manual that has answers to all the questions one might have while running a bakery shop.

Wondering what to add to your operations plan? Well try to include answers to the following questions to make it detailed and comprehensive:

  • Physical facilities: What will be your bakery location to produce bakery goods? Will you serve customers from that location or a different shop? Are you planning to sell the bakery goods online?
  • Suppliers: Where will you get the raw materials and supplies for producing bakery goods? Who will supply non-bakery items like scones, sandwiches, and savory snacks?
  • Inventory: Where will you store the raw material and ingredients? What will be the shelf life of these ingredients? How will you manage the stock levels? What are the minimum thresholds for different items and how long it takes to stock them?
  • Production: Who will bake the goods? How long is the process? Will everything be made fresh or in batches to be stored for a few days? Will there be recipe cost cards for each menu item? How will you meet an unexpected spike in demand?
  • Bakery Equipment: What type of bakery equipment will you require? Will there be a POS system at your store? What other technologies will you use? How will you take online orders?

The amount of precision here will help you regulate your operating expenses once the bakery starts serving the customers. Proper planning is advisable at this stage.

10. Create a Financial Plan

And now comes the most exciting part for investors- a financial plan. The figures in financial statements are helpful in determining the viability of your business idea. So this section holds a considerable weightage in terms of whether you will get funding or not.

To ensure you create a comprehensive bakery financial plan , including financial projections for these key components:

  • Cost of starting a bakery shop
  • Sales forecast
  • Revenue projection
  • Operating expenses
  • Pricing strategy
  • Income statement/ Profit & Loss statement
  • Break-even analysis
  • Cash flow statement
  • Balance sheet
  • Business ratios

In this section, you will also evaluate your funding requirements and identify the funding sources for your business. i.e. bank loans, SBA-guaranteed loans, angel investors, and personal savings.

Having realistic financial projections at hand will help you realize your financial goals while evaluating the sustainability of your bakery business.

However, creating the projections for all these elements from scratch can get overwhelming. Additionally,  you also need to work on visuals and graphs to add impact and clarity to your plan.

Well, there is an easy way. Create your plan with the Upmetrics Financial forecasting tool . This tool will generate key reports and visuals that can be easily downloaded and added to your plan.

financial plan for bakery business

We hope this sample plan will guide you in writing a perfect business plan. Now, let’s move forward and check the industry trends ruling the bakery world.

Bakery Industry Highlights 2023

Before you open a bakery, here are some latest highlights from the bakery industry, you may find helpful:

  • Bakery market size: The US bakery market size was valued at $99.47 billion dollars in 2023. It is projected to grow at a CAGR of 2.08% between 2023-2028.
  • Retail Bakeries: According to IBIS World , there are 8,780 independent retail bakery shops in the US.
  • Bakery consumption: In 2022, Americans consumed 8.6 billion kilograms of cake and pastry goods, a sizable amount compared to other countries.
  • Bakery trends: There is a growing trend of providing healthier alternatives, i.e. gluten-free baked goods in the bakery market. The organic and gluten-free baked goods market grew by 2.45% in 2022.
  • Market Saturation: 55% of commercial bakery revenue in the US is generated by 3 major players- Grupo Bimbo, Flower Foods, and Campbell Soup.
  • Specialty bakery market: The US Specialty bakery market share is expected to grow by 10.54 billion US dollars by 2026.

Download a sample Bakery business plan

Need help writing your own bakery business plan? Well, download our bakery business plan pdf and write your plan section-by-section with utmost precision.

Upmetrics templates are perfectly suited for entrepreneurs who need a little help to kickstart their business planning. Import the data into the editor and start planning.

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Frequently asked questions, what should be included in a bakery business plan.

An effective bakery business plan must include:

  • Executive summary
  • Business overview
  • Industry and competitors analysis
  • Bakery goods and services
  • Bakery design and layout
  • Operations plan
  • Key management team
  • Financial bakery plan

How long should my bakery business plan be?

A bakery business plan should be not more than 15-20 pages including graphs, visuals, and charts. You are likely to lose the interest of investors with a lengthy plan. However, keeping it extremely short is also not favorable, as it would not cover important details. So try using crisp content for your business plan.

Can a bakery business plan template help in setting clear business objectives and goals?

Absolutely yes. A template offers a variety of prompts that will help you to write each section clearly and cohesively. Moreover, you will get a variety of bakery-specific examples that shall help in clearly determining your goals and objectives.

Do I need to have financial projections in my bakery business plan?

Yes, financial projections are important to assess the viability and profitability of your business idea. If you are planning to seek investor funds, this section is of crucial importance. Investors will evaluate the financial section and determine whether to invest or not.

Can I use the same bakery business plan template for different locations?

Yes, you can. However, you need to alter the content of your business plan for different locations and target markets by making specific modifications.

About the Author

small bakery business plan sample philippines

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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Download Bakery Business Plan

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Bakery Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

  • Bakery Business Plan Home
  • 1. Executive Summary
  • 2. Company Overview
  • 3. Industry Analysis
  • 4. Customer Analysis
  • 5. Competitive Analysis
  • 6. Marketing Plan
  • 7. Operations Plan
  • 8. Management Team
  • 9. Financial Plan

Bakery Business Plan

You’ve come to the right place to create a successful bakery business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their bakeries.

A bakery business plan is a plan to start and/or grow your bakery. Among other things, it outlines your business concept, identifies your target customers, presents your marketing strategy, and details your financial projections.

Bakery Business Plan Sample

The following information will provide a description of what to include in your own bakery business plan along with links to an example for each of the key elements below:

  • Executive Summary – The Executive Summary section provides a high-level overview of your plan. It should include your bakery’s mission statement, as well as information on your business offerings, your target audience, and your business goals and objectives.
  • Company Overview – The Company Overview section provides an in-depth look at your bakery, including information on your company’s history, legal structure, bakery location, and management team.
  • Industry Analysis – Also called the Market Analysis, in this section, you will provide an overview of the industry in which your bakery will operate. Through market research, you will be able to discuss market trends affecting the industry, as well as your target market’s needs and buying habits.
  • Customer Analysis – In this section of your bakery’s business plan, you will describe your target market and explain how you intend to reach them. You will also provide information on your customers’ needs and buying habits.
  • Competitive Analysis – The Competitor Analysis will provide an overview of your competition (other bakeries or local businesses that offer high-quality baked goods), including their strengths and weaknesses. It will also discuss your competitive advantage or your business’s core strength that will help you stand out amongst your competition.
  • Marketing Plan – In the Marketing Plan section, you will develop marketing strategies to reach your target audience, including your community events, and digital marketing campaigns. You will also discuss your pricing strategy and how you intend to position your bakery in the market.
  • Operations Plan – In the Operations Plan, you will provide an overview of your bakery’s day-to-day operations, including your store layout, staff, and inventory management. It also includes information on your warehousing and distribution arrangements and a list of long-term milestones or business goals.
  • Management Team – In this section of your bakery business plan, you will provide information on yourself as a talented baker, any other skilled bakers or business partners, and their experience and role in the company.
  • Financial Plan – In this section of your bakery financial plan, you will include your financial statements: profit and loss statement, balance sheet, and cash flow statement. It also includes information on how much funding you require and the use of these funds.

Next Section: Executive Summary >

Free Bakery Business Plan PDF

You can download our free bakery business plan template PDF and use it to create a well-crafted business plan. You can learn more about how to write a bakery business plan using this  bakery business plan template .

Bakery Business Plan FAQs

What are the main types of bakeries.

A bakery can be retail or wholesale. A retail bakery sells baked goods (i.e., freshly baked bread, specialty items, gluten-free and vegan baked goods, and other baked goods) directly to customers, while a wholesale bakery typically sells products to other local businesses, like restaurants, grocery stores, specialty shops, and cafes.

How Do You Get Funding for Your Bakery?

Bakeries are most commonly funded with personal savings and bank loans. Credit card financing and angel investors are also popular forms of funding for bakeries. Potential investors or lenders will often want to see a well-crafted business plan before considering providing funding.

Learn More :  Seeking Funding from Angel Investors vs Venture Capitalists

HICAPS Mktg. Corp.

What’s a Bakery Business Plan and Why Do You Need It?

  • Post author: HICAPS
  • Reading time: 20 mins read

Imagine owning a bakery business and enjoying fresh bread’s aroma, intricate pastries, and a dream realized. But behind these delights lies the foundation of success: a detailed bakery business plan. 

You see, making a bakery business plan isn’t just a formality. It’s a guiding roadmap that drives your business towards growing and making profits. Unfortunately, not every aspiring bakery owner knows how to make a bakery business plan. But don’t you worry, because we got your back. 

In this post, we’ll explain its components, importance, and how you can create one. We’ll also show you a sample so you know what each part looks like. 

What’s a Bakery Business Plan?

bakery business plan

A bakery business plan refers to an in-depth document that contains the essence of your proposed bakery busines s. It serves as a vital roadmap for its launch and ongoing operation. 

This comprehensive plan includes all relevant aspects of your business. For one, it clarifies your business idea. It also explains its unique selling propositions, the current market scenario, your operational plans, and the financial projections for your bakery.

At its core, a bakery business plan articulates your bakery’s mission and vision, providing clear business goals and actionable steps to achieve them. It also helps refine your business idea and align all your activities towards your objectives. Detailing your product offerings helps clarify your bakery’s niche and competitive advantage.

The plan also delves into thorough market research, outlining key market trends, customer demographics, and competitor analysis. This analysis helps you understand the market landscape and position your bakery to attract and retain your target customers.

In addition, the plan outlines your operations section. This includes your supply chain, inventory, logistics, and daily operations. Describing each process gives you a clear view of your operational needs and costs.

Lastly, the plan involves a comprehensive financial projection. It details your startup costs, profit model, and revenue projections. This section also helps potential investors or lenders understand your business.

Why Do You Need a Bakery Business Plan?

why you need one

Now that we finished the definition, you may wonder why you need a bakery business plan. Here are the top reasons why you need one: 

Vision and Strategy

A bakery business plan takes your ideas and turns them into concrete strategies. Since it explains your mission, vision, and objectives, you’ll know exactly what to do to meet them. 

It also serves as a roadmap that details the actions and resources you need to reach your goals. In addition, the plan helps you anticipate problems or challenges, letting you make strategies to prevent them from happening. This allows you to go through difficult times and drive your bakery toward success.

Financial Guidance

A bakery business plan includes financial forecasts that let you understand the financial aspects of running a bakery. 

These aspects include startup costs, operating expenses, and profit projections. The plan also contains milestones like your break-even point— the time when your revenue becomes equal to your expenses. These projections guide you in making financial decisions, monitoring your financial health, and making necessary changes. 

Investments

If you want financing from others, you must have a well-crafted business plan. Remember, you must have a business plan to show whether you approach banks or private investors.

The plan should show how their money will be used. It should also explain the risk levels and how they can get a return on their investment. In a gist, your business plan must communicate your vision and commitment, which improves your credibility and increases your chances of getting funding.

Operational Planning

Your bakery business plan details the day-to-day operations of your bakery. This includes supply management, production, quality control, staff requirements, and opening hours. 

Your plan should also include information about your bakery’s setup to make sure that it complies with health and safety regulations, licensing, and other legalities. In short, having a comprehensive plan ensures smooth and efficient operations.

Marketing and Sales Strategy

Competition in the baking industry can be intense. But don’t fret because your business plan describes marketing and sales strategies. It shows how you will attract and retain customers. 

These strategies include branding, paid advertising, organic promotions, social media campaigns (e.g., TikTok and Instagram ), rewards, loyalty programs, and more. Your business plan also outlines your unique selling proposition (USP) and how you can communicate it to your target market.

How To Write a Bakery Business Plan

how to write a bakery business plan

We’re now at the nitty-gritty part of this guide. In this section, we’ll explore the different parts of a bakery business plan and how you can make them.

Executive Summary

Often just one or two pages long, the executive summary is your business plan’s overview. It should include the following:

  • Your business’s core components (e.g., vision and mission)
  • Products you want to sell
  • Your target market
  • Brief financial highlights

Even though it’s the first section of your business plan, we advise you to write it last so you can summarize the most crucial points from each section.

Company Overview

This part dives into the specifics of your business. 

You must discuss the following in your company overview:

  • Your business’ legal structure (e.g., sole proprietorship or LLC)
  • The type of bakery (retail, wholesale, specialty, etc.)
  • Its physical location
  • A brief history if it’s not a new business

This part should also explain your unique selling proposition (USP), which sets you apart from competitors. This can be your recipes, location, branding, or a unique concept like a pet bakery cafe or restaurant .

Market Analysis

You must do a thorough market analysis to understand the bakery industry’s current landscape.

Your market analysis must include the following details:

  • Industry size
  • Growth rate
  • Key consumer demographics

You should also provide a competitive analysis that shows direct and indirect competitors, their strengths, and how you plan to differentiate your bakery.

Management and Organization

As its name implies, this part includes how you plan to organize and manage your staff. You should describe the following under this part: 

  • Your team’s structure, including owners, managers, bakers, baristas, and other staff
  • Experience, skills, and unique qualifications each team member brings
  • Specific roles and responsibilities
  • Roles and responsibilities of advisory members or mentors (if any)

Products or Services

Describe the following under this section: 

  • Range of products you’ll offer (pieces of bread, cakes, pastries, sandwiches, etc.)
  • Any services like custom cake orders or catering
  • Sourcing strategy—will you use local, organic ingredients? 
  • Pricing strategy and how it compares to competitors

Target Customers

You also need to understand who you’re selling to, so do the following:

  • Identify your ideal customers— perhaps busy professionals looking for quick treats or parents who want birthday cakes for their children
  • Demographics
  • Psychographics
  • Buying habits
  • Why your products and/or services will appeal to them

Marketing Plan

This section details your marketing and sales strategies. It should include the following: 

  • Marketing methods (e.g., traditional methods like print advertising or signage or digital methods like a website, email newsletters, and social media campaigns)
  • Partnerships with local businesses
  • Loyalty programs
  • Events to draw customers

Logistics and Operations Plan

This is the behind-the-scenes section where you need to outline the following: 

  • Equipment needed
  • Staffing requirements
  • Operating hours
  • Legal requirements such as health codes, permits, or insurance

Financial Plan

In this section, you must detail the following:

  • Income projections
  • When you anticipate the business will become profitable
  • Sales forecast
  • Personnel plan
  • Cash flow statement
  • Income statement
  • Balance sheet.

Potential investors will pay close attention to this section, so be realistic and conservative in your estimates.

Writing a comprehensive business plan for your bakery can be challenging, but you must do it. It’ll give you a solid plan of action and potentially reveal areas for improvement. It can also be a key document for attracting investors or securing funding.

Bakery Business Plan Sample

sample

Creating a business plan can be difficult, but we’re here to help. Check out this bakery business plan sample from which you can get ideas from: 

Business Name

Delightful Bakes

Delightful Bakes is a boutique bakery that specializes in creating a diverse menu of bakery items, with particular attention to organic, gluten-free, and vegan delicacies. Our vision is to offer a balance of healthy and indulgent baked goods that satisfy every palate. Our primary mission is to cater to a broad spectrum of increasingly health-conscious consumers without compromising taste and quality.

Founded by couple-turned-bakers Tom and Pia, Delightful Bakes combines their passion., knowledge, and experience to create unique moments. Delightful Bakes commits to crafting artisanal baked goods while fostering a sense of community. The bakery operates from a cozy shop downtown that doubles as the baking facility. 

While the bakery market continues to flourish, our market research reveals a gap in Manila for bakeries offering a wide range of health-conscious and dietary-specific options. Delightful Bakes aims to fill this void by targeting consumers seeking healthier alternatives and those following specific diets. We also plan to cater to those who prefer traditional bakery items.

The owners, Tom and Pia, manage all key aspects of Delightful Bakes. Tom handles product development and bakery operations, while Pia does marketing, financials, and customer relations. A dedicated baking, sales, and customer service team helps them. 

We offer an array of baked goods― from breads and pastries to cookies and cakes. Delightful Bakes specializes in organic, gluten-free, and vegan options. We also aim to cater to dietary preferences without compromising flavor. On top of that, we offer custom cake orders for events and celebrations.

Our customer base includes health-conscious people, those with dietary restrictions, and people who love artisan-baked products. While we focus on serving Manila, we also aim to attract Filipino and international tourists.

Our marketing strategy includes digital marketing, using platforms like Instagram and Facebook to promote our products and engage with customers. Delightful Bakes will also join local events and build relationships with local businesses for cross-promotion. Additionally, our loyalty program includes perks and discounts for regular customers, which aims to boost retention.

Delightful Bakes’ ingredients are sourced from trusted local suppliers. We bake daily to ensure freshness. In addition, friendly staff members manage the sales counter and the kitchen staff follows high standards of cleanliness. We also follow all local health and safety regulations while prioritizing efficiency and sustainability in our operations.

We’ve financed the startup costs through personal savings and a small business loan. We expect revenue from in-store sales, online orders, and custom services. We project reaching a break-even point by the end of the first operating year and anticipate steady growth after that.

Frequently Asked Questions

Here are the sections you must complete to write a business plan for a bakery: Executive Summary Company Overview Market Analysis Management and Organization Products or Services Target Customers Marketing Plan Logistics and Operations Plan Financial Plan

The introduction of a bakery business includes the vision and mission, the products you want to sell, your target market, and brief financial highlights.

A bakery business, on average, is low- to medium-profitable. Usual profit margins for a bakery business range between 4% and 9%.

A bakery business plan is far more than a document— it’s a roadmap that guides every part of your business. It can turn your dream into actionable steps, prepares you for financial realities, helps attract investors, identifies target customers, makes way for efficient operations, and gives you a marketing edge. 

Not having a bakery business plan is like navigating the sea without a compass. But with it, you’re setting the stage for success in the competitive bakery industry. So, what are you waiting for? Grab a pen or your laptop and start creating your business plan now. All the best!

Do you want to increase your bakery’s sales and protect it from industry problems? Check out this free bulletproof guide that we made!  

About HICAPS

Over the years, HICAPS has helped bakers and businesses make delicious products by offering ingredients like ChiffonAide Cake Oil , Magic Whizk Whipping Cream , Red Velvet Flavor Emulco , and Instabake Brownie Mix . 

HICAPS also provides tools and resources to valued partners, such as the free “How to Increase Your Sales Amidst the Pandemic” E-book and free dealer locator that helps look for baking ingredients near me . 

Want more free tips and tutorials? Follow us on Facebook at Hicaps Mktg. Corp. and on YouTube at HicapsTV . Want to be one of our valued partners? Fill this form out. Looking forward to talking to you soon!

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How to Start a Bakery Business in the Philippines

Did you know bread is second to the most common food staple next to rice that is eaten every day in the Philippines? It makes sense, since bread is cheap to make and to sell! It is part of a Filipino’s breakfast and merienda: pan de sal, monay, ensaymada, and other local delicacies! They are easily prepared and can be found just right next door at any typical neighborhood.

A good bakery maintains the freshness of its ingredients as well as the consistent quality of the product at each batch. Taking care of a bakery will take care of you, as they say. However, just like any other business, you have to know the necessary knowledge in operating one.

Which is if you want to start a bakery business in the Philippines, you should continue reading on to get yourself in the feet of a true baker! This business is a profitable venture that is perfect for those experienced entrepreneurs at baking, but just about any kind of person, even a newbie, can try their hands at baking!

Continue reading on below to start your journey!

Bakery Business Philippines

Know the investment capital

The money needed to start a bakery business in the philippines.

A bakery business fetches a hefty price: about P150,000. This is only if you plan to establish it in a commercial unit. If you are able to provide a space with a lower rental fee or even plan to do it at the confines of your own home, then do as you please. Doing so will provide you a lower amount of investment capital needed.

Most of the capital will be invested into the basic operation of a baking business: from the materials to the equipment.

Invest in the right equipment!

Needed equipment for a bakery biz.

The equipment such as the baking oven does not need to be an expensive state of the art machine that produces a motherlode of baked goods! You can choose to buy second hand equipment from other bakeries that have surpassed their capacity and are willing to sell them at a lower price.

The benefit of a second hand equipment cannot be understated. Not only are you able to save money from purchasing a newer model, but also the chances are high that when the equipment is in need of repair, the parts are likely to be found as they are a common model as of the time of purchase.

Find a good location

A bakery business needs foot traffic to succeed.

Just like any other business, you want to rake in all the money! How do you do that? By placing it right at where there is a lot of people! Bakeries are often profitable when placed near a church or school. Furthermore, those drivers of jeepneys, taxis, and tricycles are also likely to survey your baked goods in search a good breakfast and merienda!

In essence, the place where the bakery is established should be one where there is a heavy amount of foot traffic. You always want a constant source of customers as to not waste a day’s worth of baked goods.

Know your market

Market research will help you jump start your bakery business.

As an addendum to the previous point, not every kind of bread is eaten by everyone, especially in a different area. For example, the drivers from the previous paragraph would highly favor a freshly baked pan de sal in the morning. Baking whole wheat or French bread is expensive for the average Juan and are also preferred by the wealthy!

Knowing this, you should do research on the area of your business on whether or not they have a certain preference toward a specific kind of bread. Research will save you a lot of time and money from baking unnecessary batches of bread in the future.

Register your business!

Paperworks, licenses and permits.

Businesses, big or small, are required to register for sole proprietorship at the Department of Trade and Industry (DTI), and at the Securities and Exchange Commission (SEC) for those who opt for partnerships and corporations.

Furthermore, you will also need a mayor’s permit and sanitary permit from your local municipality where your business is located.

The Bureau of Internal Revenue (BIR) will also require a Tax Identification Number (TIN) from your business, so you must register at the nearest BIR office available.

Lastly, since you are operating a business handling food, you need a license as a “food manufacturer”, a License to Operate (LTO) from the Bureau of Food and Drugs (BFAD).

Don’t be afraid!

All corporations once started small, whether they liked it or not. Rome was not built in a day, as the old saying goes. So, invest in a bakery business step by step in small amounts of capital first, looking for ways to save money and get the best bang for your buck! As you follow these tips, your success will eventually come into fruition!

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Do you have a knack for baking? Special bread or dessert recipes that your friends and family are always chatting excitedly about? Ever wanted to open your own bakery but just don’t know where to start?

Check out these sample bakery business plans and get inspired to start building your own bakery today. You can also read our comprehensive guide on how to write a bakery business plan .

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How to Start a Baking Supply Business Philippines

We will cover some important areas to start a baking supply business in the Philippines, including the market and the finances, but for those interested in a business plan, head over our free business plan PDF template, which can be downloaded a the top of this page.

Table of Contents

Steps On Starting A Baking Supply Business Philippines

1. analyze the baking market.

Before starting any business, surveying the market is important. It can help you determine the challenges in your target market. The same goes on ways on how to sell baking supplies online. To start, future baking supply business owners need to talk to the bakeries located in their target location. 

A baking supply business can be profitable if the business satisfies the clients’ needs and diligently serves them. Performing a market survey can help you figure out how to help these bakeries do their jobs more easily.

2. Create A Baking Supply Business Plan

It does not matter if you plan to be an online home-based baking business owner or have a store when making a bakery business plan. Future business owners can think of this as their map. Therefore, a bakery business plan should be meticulously made by placing all the details in various categories. 

Here are some of the elements you can include in your business plan .

3. Registration Of A Baking Supply Business In The Philippines

One of the crucial steps in the process of how to start a baking supply business Philippines is obtaining the needed documents to operate legally. Owning a bakery supply store or being a baking supply distributor in the Philippines requires the same legal requirements. If you are not a Filipino passport holder, find out more about registering a business in the Philippines here.

Since bakery supply business owners will store edible ingredients such as chocolate compounds, cake mixes, essence, and chocolate compounds, among many others, baking supply business owners have to be registered. 

Please note that depending on the city where you will operate your business, there can be more or different requirements.

4. Pick Your Location For Your New Baking Business

Suppose you are opening a home-based baking business in the Philippines. In that case, you may wish to investigate the delivery part of the business and see how it will affect your business location.

5. Order Baking Supplies In Bulk

A great way to order from baking wholesale suppliers in the Philippines is to list the primary baking supply categories, such as the ingredients and equipment. Then, you can choose the products you want to stock on for every category.

Another helpful tip at this stage when looking at how to start a baking supply business in the Philippines is to determine how you want to start….

6. Build Your New Baking Business Team

It is best to get employees who offer great customer service and have knowledge about baking supplies and tools. You can also ask for help if you know someone who has a home-based baking business in the Philippines, as they will likely know culinary school students or people who have worked in kitchens. 

If possible, baking supply business owners can provide matching uniforms for all the employees as the business grows.

7. Market Your New Business

How to sell baking supplies online philippines, 1. purchasing ingredients, equipment, and supplies.

Some baking ingredients need to be refrigerated. Therefore, one way on how to sell baking supplies online is to consider temperature and delivery when deciding on what baking products to get. 

2. Aim To Make Your Online Products Too Good To Refuse

The ideal product description highlights the benefit of the products and their features. Moreover, addressing the needs and concerns of your target audience can help, such as trying to determine how your product can make their lives easier or better.

3.  Using Stories And Recipes

To perform marketing using storytelling, you could create a narrative to tell your message. Your aim is to make potential customers reading your story feel inspired to purchase your product. This will also help them better understand your baking supply products and create trust with your business. 

Baking Supplies Wholesale Suppliers Philippines

How much does a bakery supply business cost in the philippines.

The total amount you need to start a bakery supply business in the Philippines will depend on the scale of your business and how aggressively you wish to grow in the upcoming years.

Please note that the above estimates are valuations when calculating how much it cost to start a bakery supply business in the Philippines, which means that the prices can be higher or lower depending on your location and scale of business. For example, if you are an entrepreneur starting this business at home, the cost will be much lower compared to a new corporation with a team of 25.

starting a Baking Supply Business Philippines

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COMMENTS

  1. How To Start a Bakery Business in the Philippines: A ...

    Generally, the minimum profits of a small bakery business range from ₱1,000 - ₱2,500 per day. For instance 2, a bakery with 1 sack of first-class flour (25 kilos) can create a 50-kilogram dough that can produce around 1,670 pieces of pandesal (assuming each piece is at least 30 grams).

  2. How To Write a Bakery Business Plan in 9 Steps

    Financial plan and projections. 1. Executive summary. The executive summary section of your bakery business plan summarizes the document and its contents. Remember, this is meant to highlight what's to come in your business plan, not serve as a summary of your business idea. Focus on your business's core strength to draw in your reader.

  3. Bakery Business Plan PDF Example

    July 22, 2024. Business Plan. Creating a comprehensive business plan is crucial for launching and running a successful bakery. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your therapy bakery's identity, navigate the competitive market, and secure funding for growth.

  4. Bakery Business Plan Template [Updated 2024 ]

    6. Bakery store design and layout. An effective bakery business plan must include a blueprint of your bakery shop's layout and design to demonstrate the bakery's concept practically to the readers. Mention your bakery size and the space allocated for the back of the house and front of the house operations.

  5. Sweet Neighbour Business Plan

    Sweet Neighbour Business Plan - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or view presentation slides online. Business Plan

  6. Bakery Business Plan Template & Sample (2024)

    Bakery Business Plan. You've come to the right place to create a successful bakery business plan. We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their bakeries. A bakery business plan is a plan to start and/or grow your bakery.

  7. Starting A Bakery Business In the Philippines

    Step 3: Conduct market research and create a comprehensive business plan. You should spend a great deal of time identifying your target market. As such, it will ensure your bakery business is the perfect fit for them. It would help if you talked to people who have experience starting a bakery in the Philippines.

  8. What's a Bakery Business Plan and Why Do You Need It?

    At its core, a bakery business plan articulates your bakery's mission and vision, providing clear business goals and actionable steps to achieve them. It also helps refine your business idea and align all your activities towards your objectives. Detailing your product offerings helps clarify your bakery's niche and competitive advantage.

  9. How To Open A Bakery Business Philippines

    For example, you may have a list of 25 action steps. The starting position is where you are currently, and the last step is where your business is open to the public. You may wish to apply the Start Stop and Continue method, which we will discuss right now. 6. Apply The Start, Stop, And Continue Method.

  10. How to Start a Bakery Business in the Philippines

    A bakery business fetches a hefty price: about P150,000. This is only if you plan to establish it in a commercial unit. If you are able to provide a space with a lower rental fee or even plan to do it at the confines of your own home, then do as you please. Doing so will provide you a lower amount of investment capital needed.

  11. Free Bakery Business Plan Template & Writing Guide [2024]

    What You'll Get with This Free Bakery Business Plan Template: A business plan template for a bakery that can be edited in Word or Pages. Tips, tricks, and instructions to help you create a winning business plan for your bakery. 8 customizable sections, including an executive summary, market analysis, and operations plan.

  12. How to Start a Bakery Business: 12 Tips for Success

    Just make sure to maintain the quality and consistency of your menu classics—that way, you can get distinguished for your signature style, taste, or flavor. This will also help with your branding. 7. Find a Location with High Foot Traffic. A good location is pivotal to the success of a bakery shop business.

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    Bakery Business Plan Template & Sample 2024 - Aceplans. Skip to content. Make a sweet success by completing your Bakery Business Plan in a day with the industry leading template, samples, and expert guidance. 🍰📈.

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    Explore a real-world bakery business plan example and download a free template with this information to start writing your own business plan. Don't bother with copy and paste. Get this complete sample business plan as a free text document. Download for free ... Free download. A fill-in-the-blank business plan built for small businesses ...

  15. How to Create a Bakery Business Plan in 7 Steps

    Bakery Business Plan Sample Sections. To help you fill in your own business plan, here we'll cover what you need to include in each section. 1. Executive Summary. Your executive summary is the most important part of your business plan, even though it's usually written last. The goal of this section is to give an overview of what will be ...

  16. Small Bakery Business Plan Sample: A Guide for Home Bakers

    Another important aspect of starting a home bakery business is to develop a production plan. This will involve outlining your product offerings, determining the equipment and supplies you'll need to produce your products, and creating a schedule for production and delivery. You'll also need to consider the storage space and packaging materials.

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    Check out these sample bakery business plans and get inspired to start building your own bakery today. You can also read our comprehensive guide on how to write a bakery business plan. Explore our library of Bakery Business Plan Templates and find inspiration for your own business.

  18. Bakery Business Plan (Free PDF)

    Business Plan Bakery. Successfully start your own small bakery or pastry shop with our free business plan sample. Discover the key ingredients of a solid business plan and get tips for entering the market successfully. Download here for free! zum Download. Download your free business plan for bakeries and pastry shops here!

  19. Business Plan

    Pastry Bites is a start-up bakery located in Dasmarinas, Cavite that plans to offer a variety of bread, pastries, and cupcakes. It is owned equally by two partners who bring experience in sales/management and finance/administration. The company aims to attract regular local customers and establish a consistent revenue base. Financial projections estimate sales of PHP1 million in year one ...

  20. How to Start a Baking Supply Business Philippines

    Nonetheless, to start a small bakery supply business in the Philippines at home, you need to have at least 50,000 Pesos. On the other hand, if you are looking to start a small bakery business in a warehouse or storefront, then the scale of the business will be much larger, and as a result, 200,000 Pesos or more will be needed.

  21. Mariano's Bakery Proposal

    A small bakery in suburban community may serve just the local residents. Using population estimated from the latest census and information on the competitive structure from the local chamber of commerce, the bakery can estimate the number of potential customers and plan its operation accordingly.

  22. How to Start a Bakery (with Business Plan)

    How to Start a Baking Business. Whether you're passionate about creating decoratively frosted cakes or artisan sourdough loaves, you must create an action plan for turning your passion for baking into a business.Discover the steps of opening a bakery below. 1. Choose a Bakery Style. While there are many bakery business models, they all fall under one of two umbrella categories: retail and ...

  23. BP1 CAKE SHOP

    BUSINESS PLAN SUMMARY. Business Description. This is a store that manufactures and supplies high-quality baked. goods to retail customers. We sell both pre-made and custom-made. cakes. We also offers c ake base mixture made from local and high-qua lity. Objectives. To profitability supply consumers with affordable goods.