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What Are the Average Bakery Startup Costs?


Have you ever dreamed of turning your passion for baking into a full-time career? You probably already know that people can’t get enough of your baked goods. But what does it take to get you from baking for your family and friends on the holidays to the dream of owning your own bakery?

The fact is that you might not know where to start at all. After all, the business of baking is a lot more than just having the perfect chocolate chip cookie recipe.

There is a lot to think about when considering opening your new bakery, but you can do this! Keep reading to find out more about bakery startup costs.

A Quick Look at Basic Bakery Startup Costs

There are many factors to consider when thinking about bakery startup costs. For instance, the size and type of bakery are going to impact the startup costs greatly. A general rule of thumb is that an average startup will cost somewhere between $10,000 and $50,000, but even that estimate can vary wildly depending on your specific circumstances.

Let’s have a quick look at some of the costs that you will need to consider:

  • The physical storefront for your bakery if applicable
  • Store fixtures and furnishings
  • Commercial kitchen equipment or rental of a commercial kitchen
  • Website design and hosting
  • Licenses and permits
  • Branding and marketing
  • Inventory, like flour and sugar
  • Packaging for your baked goods
  • Employees

The Brick and Mortar Bakery

When considering how to open a bakery, one of your very first considerations after your recipes is going to be whether you’re going the brick and mortar route or not. This is probably the choice that is going to affect your overall bakery startup costs the most.

A physical storefront with a commercial kitchen already in place can cost anywhere from $2,000 in some areas, to upwards of $20,000 or more a month to rent depending on your location.

There are a lot of advantages to having a brick and mortar bakery, but it’s not the only route to go. There are a lot of options when it comes to how to start a bakery and they can help determine the bulk of your initial investment.

Getting the Word Out

Marketing is likely the most important aspect of any business, after having a quality product to sell. The bakery business is no different; you are going to need to devote time and money to make sure that people know about your goods. Your delicious baked goods keep clients loyal, but how do you find those clients to begin with?

A good option for many budding bakery businesses is to consider the benefits of a food broker. Having an experienced food broker in your corner doing the footwork of getting your baked goods into shops and restaurants for you can save you time. The benefit of their existing client base can help you sell more and recoup your startup costs faster.

Are you Ready to Take It to the Next Level?

I hope that you feel like you have a better idea of what your bakery startup costs will be and how to make the best choices with your startup money. There are a lot of variables when it comes to how to start a bakery and your average startup costs can change depending on what route you decide to take with your business.

If you found this article helpful and are hungry for more, check out our other great food articles!

About Doris Thorne

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