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Bakery business models

Updated on July 13, 2011

bakery industry

Enterpreneurs , business men and investors can invest in bakery business in numerous ways and can have good returns on their investment . New concepts have been arrived for bakery product business. The products which have gained popularity are bread , cakes , biscuits , wafer biscuits and pasta s.

To name few

Home made bakery products - This concept is for limited customers with specific products. Small scale business can be operated from ones home . If one has expertise in bakery recipes then one can start catering for occasions like birth days , marriage anniverseraries , kitty parties , functions and festivals.They can cater for regional taste and flavours.The disadvantage for such business is of brand equity and absence of corporate identity .

Automated bakery plants -Mass production of bakery products with large base of customers .Needs large investment with plant & machinery ,land and employees. This kind of operations has all functions like finance , procurement , production, sales and marketing .The advantage of having manufacturing plants are that you can create a brand equity and can cater large population and earnings would be higher . Manufacturers can try different products . Can also act as third party manufacturers in case they have idle capacity . The disadvantages would be liabilities like land , fuel , plant and machinery and employees and other taxes etc .


Small bakeries - Other option which entrepreneur s with small investment is to install small bakery which would cater local population . They can have popular brand in that areas and can develop good customer relationship by promoting door deliveries and some marketing strategies .


Third party manufacturing - You can ask manufacturers to produce and can have your own brand with limited investment.This concepts is called private label manufacturing .you can find many manufacturer opting for such arrangement .Two kinds of manufacturers are there for such arrangement one which has got idle capacity or the one which only manufacturers third party products on demand . The investor bear the cost of moulder /cutter and asks

manufacturer to produce product of their choice .Similiarly investor would ask for packaging of his choice . The investor who owns already a brand can promote bakery products as it own product .


Export/Import : The entrepreneurs can buy and sell products across the boundaries and can expect return of 15% -20% . They can import products from one country and sell it in own country . Other posibility is to export bakery products to deficient countries .


Retail chain : This are similar to other retail market such as macdonalds , kfc , starbucks , barista .This has gained popularity as customers can avail varities of bakery products at one place .Connsieurs of bakery products can enjoy it with good ambience .Peoples have started going to such retail bakery chain


Food courts in malls/multiplexes/supermarkets : A great concepts and with large numbers of customer can be attracted to such bakery courts as people love to have such food courts in malls as they shop and eat .Owners can charge premium for their products as rentals are very high in such places and customer dont mind paying for such facilities .


Online shops: Catering customers through online stores .available 24x7x365 days .Online shops required very low investment with good return once the website gets popular .



bakery products
bakery products


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    • Ambition398 profile image

      Ambition398 7 years ago

      Doing some local now, and setting up online once packaging and delivery issues are ironed out. Good info here, esp. with %. THanks!

    • profile image

      victor mulinge 7 years ago


      I would like to request if by any chance you can offer advice on how to start up a small bread bakery in the rural area in Kangundo,Kenya.

      I intend to setup a small bakery which can be run as a family venture.

      I came across your website and i felt that you can be of great assistance.

      Actually am looking for help in various areas:








      I will be very greatful if you can find sometime for me so as to assist in advice and guidance


    • tritonpackaging profile image

      tritonpackaging 8 years ago from Miami, FL

      At Triton Packaging we support all home-business initiatives, in fact we carry packaging solutions for start up companies in the bakery industry. If you have baked your cookies or pastries and want to show a clean professional better appealing presentation of your items, please let us know, we could help!