Opening a bakery is an exciting dream, but neglecting certain fundamentals can turn the project into a costly failure. With this in mind, BRO, backed by the experience of its founders in opening and managing multiple bakeries, presents in this article the biggest mistakes to avoid when opening a bakery, and professional solutions to anticipate them.
Launching without sufficient preparation
Launching without sufficient preparation is one of the biggest mistakes to avoid when opening a bakery. Before you even put your first loaf of bread in the oven, you need to validate three key points: market research, choice of location and start-up budget. If necessary, BRO can provide advice and support to project owners right from this stage.
No or incomplete market research
Without a detailed analysis of the competition, consumer trends and local purchasing power, you run the risk of opening a store whose offering doesn’t meet demand. Use current figures as a basis, meet with local players and adjust your product range as soon as your project is conceived.
Poorly chosen location
Weak pedestrian flow, parking difficulties or poor visibility undermine your sales. Choose a location close to high-traffic areas, schools or offices and, very importantly, check that the rent is in line with your projected margins.
Underestimation of start-up costs
Oven, proofing room, furniture, work, licenses: actual expenses often exceed the theoretical budget. Build in a cash reserve to cover six months of operation, and include training, marketing and maintenance.
Poor day-to-day management
Poor day-to-day management is one of the biggest mistakes to avoid when opening a bakery. A healthy business rests on three pillars: solid finances, meticulous organization and a product offering aligned with customers.
Rough financial management
Balancing profitability and quality requires a clear understanding of variable and fixed costs. Many beginners make do with conventional accounting software and discover too late the true weight of material losses, overtime or energy costs. BRO recommends the adoption of daily dashboards: cost of flour, production yield, sales by time slot. Thanks to these indicators, you can immediately adjust batch sizes and secure your gross margin.
Lack of organization in production and staffing
A poorly-coordinated brigade leads to baking delays, shortages in the shop window and night-time overwork. BRO’s teaching method, which strongly advises the integration of sourdough in its preparations, includes the no-knead technique and the smoothing of schedules to reduce drudgery. Each training course includes a spatial audit: layout of mixers, cold circuit, dressing zones, in an attempt to maximize yield.
Products poorly adapted to local customers
Offering high-end sourdough bread in an area with low purchasing power, or neglecting pastries in a tourist area, are fatal mistakes. BRO trains your teams to analyze demand in situ, then design differentiating recipes to suit the local clientele.
Neglecting communication and customer loyalty
It’s a mistake to ignore communication and loyalty when opening a bakery. With this in mind, optimize your online visibility with an up-to-date Google My Business listing and networks; while also participating in markets and offering tastings to neighboring businesses.
So, if you’re thinking of setting up on your own, be sure to take into account these mistakes to avoid when opening a bakery. At the same time, if you want to make the most of your chances of setting up successfully, you can call on BRO’s consulting service to assess the market and guide you towards the most suitable solutions.
