Raven L. Hill

How to Write a Bakery Business Plan

 

Inspiration struck while he was having margaritas with friends. Cupcake was an immediate hit. "I was really lucky," VanDeraa says. "It was before the trend."

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How to Write a Bakery Business Plan: Let Them Eat (cup)Cake?

Of course, VanDeraa is referring to the cupcakery explosion.

The much-hyped "Sex and the City" movie sequel helped to put cupcakes in the news again. Hello Cupcake in Washington, D.C., even had a cupcake/movie tie-in with specialty treats inspired by each character.

The popularity of cupcakes is good news for owners like McKenna, who opened her second vegan bakery, BabyCakes LA, in January.  But even good news has its limits, she said.

"I don't think cupcakes are the problem. The press swooning over them so much that people want to by nature reject them is the problem," McKenna says. "If someone's going to open up a cupcake bakery, I don't think they should play up the adorability of it. Just have more a focus on the food."

Van Deraa found in his market research that a standalone bakery concept didn't appeal much to his target audience. They wanted soups and sandwiches, too, he said.

He adjusted his model. In addition to baked goods, Cupcake also serves breakfast all day, quiche, paninis, salads and soups. And six different categories of cupcakes – simple, gourmet, premium, party line, baby and celebration.

The diverse offerings drive the business year-round, he says. In winter, customers come for the soup. Many come in daily for their morning coffee. Some have never even tasted the cupcakes, he said.

"It's helped us as a business to have more offerings especially if there's a diet fad," he says, with a laugh. "That was a big stroke of luck."

The bakery-and-restaurant model – like Panera Bread and Dunkin Donuts – is the more profitable model for most owners, Sapienza says.

"I'm aware that Mrs. Fields and Famous Amos started in the kitchen, but very few make the leap (to a successful business)," he says, adding that "cupcakes might be the exception to the rule."

Whatever model you choose, don't forget to add the following to your recipe: two cups of passion, an extra serving of hard work and an ounce of luck.  

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