Not so long ago, in order to stand out among competitors, you had to surprise customers with something special. Now frozen cakes and cakes (deep frozen) are in fashion in production. This is because they look quite beautiful and are able to amaze with their variety of color shades. In large supermarkets you can see that such products were brought not from the nearest confectionery shop, but from one that is located several thousand kilometers away. You can store them forever.
It was found out what the production fashion is now. Accordingly, it will most likely be interesting to find out what consumer fashion is at the moment. Potential buyers treat such products with great caution, since the taste of frozen cakes is far from natural.
The cost and taste of such products can in no way be compared with local baked goods if there is a pastry shop nearby. Therefore, it makes sense to think about drawing up a business plan for a confectionery shop.
Return to contents
Possible problems that a confectionery business owner may encounter
One of the fairly common problems in this market is staff turnover. The problem of constant selection and training of future employees in the catering industry can arise for every entrepreneur who plans to open his own business in this market.
The next possible problem is the constant increase in the cost of raw materials. Consequently, a choice may arise: either raise prices for manufactured products and, accordingly, lose regular customers, or another option is to maintain a low price while switching to cheaper substitutes. However, practice shows that switching to cheap raw materials can contribute to the loss of customers, and in addition, the reputation of the enterprise can be lost. Consumers most often do not forgive deterioration in the quality of manufactured goods. That is why it would be more expedient to increase prices for products, but at the same time sell goods of the usual quality.
And the last problem, which is quite common in this market, is raw materials of uneven quality. It is quite difficult to always obtain a product of the same quality, especially if there are some supply interruptions. Accordingly, the owners of this business cannot be completely sure that the same ingredient will always be of the same quality. There are times when quality can deteriorate at the most inopportune and unexpected moment.
It is worth noting that the product almost always changes its characteristics. Therefore, you will need to change the recipe each time. This problem must be taken into account when starting a confectionery manufacturing business.
Return to contents
What do you need to start this business?
You should know that such a business is quite profitable, but it requires a large amount of funds at the very beginning. It is worth understanding that we are talking about an amount of $100,000. It will be needed in order to fully create and set up production, purchase transport to be able to deliver manufactured products, and also purchase the necessary raw materials.
The first thing you need is to draw up a detailed business plan for the production of confectionery products. This is necessary in order to fully understand the entire mechanics of the process and provide for all the nuances that may arise.
Return to contents
Legal expenses that will be necessary
Do not forget that your business will need to be formalized and registered. This can only be done as an LLC (limited liability organization). It will not be possible to open an individual entrepreneur (IP), because it will be necessary to attract employees to work. However, the costs of opening an LLC will not be at all large compared to the costs that will be spent on resolving issues with various authorities. Considering that the confectionery shop involves working with various food products and ovens, the premises will need to be equipped in accordance with all SES and fire safety standards. In order to avoid having to redo everything all over again, it is recommended to call an inspector from the very beginning to clarify all the necessary requirements for the confectionery shop.
However, you should know that practice shows that there will still be some nuances that will need to be resolved additionally. This can cost approximately $1000-2000.
You will also need to purchase licenses. If, for example, you plan to manufacture with 5 employees, it will be enough to have only 3 licenses, which will be used alternately. The costs that will be spent on acquiring the main license along with personnel training are about 50,000 rubles per document. Each subsequent one will cost approximately 10,000 rubles.
Return to contents
Requirements for premises that may be suitable for a confectionery business
The next thing is to find a suitable premises and rent it. You need to understand that it is inappropriate to locate such a large production in the city center due to crowding and from a financial point of view. It is much more profitable to locate your workshop in some industrial area or on the outskirts of the city. Renting in such places will cost less, and the fact that the premises will not be in the best shape is not so important, because it is worth noting that repairs still need to be done.
The rentable area in the building must be from 200 to 700 square meters. If the choice fell on the option outside the city, the rental cost will be approximately $1,500-3,000. Prices are given for Moscow.
It is important to know that Rospotrebnadzor sets some of its requirements for premises that can be used for confectionery production:
- The maximum possible area of the room, if it is located in a residential building, is 700 square meters.
- It is mandatory to have a separate entrance and exit for evacuation.
- Raw materials should be supplied only from the ends of the building, and no windows of the building should go there.
- Garbage bins, which are necessary for industrial waste, must be located on the side of the highway and located at least 25 meters from residential buildings.
- The amount of water must be such that it is able to fully meet the emerging needs of the workshop. Water must correspond to the quality of the centralized drinking water supply system.
- Sewage risers cannot be installed in the production area.
Return to contents
Selection of the necessary personnel and payment for work performed
The number of employees needed in the confectionery shop depends on the volume of production that is planned. At first, 5 people may be enough. These will be:
- baker;
- 2 assistant bakers;
- technologist;
- driver to be able to deliver products to interested clients and businesses;
- if the premises are rented unguarded, you will additionally need to hire several guards (it is possible to negotiate with security organizations that provide similar services).
Accordingly, at first, approximately $3,000-4,000 will be spent per month to pay for the labor performed by employees. However, it is important to warn all personnel that they must strictly adhere to safety procedures. This is necessary in order to avoid problems with various authorities in the future.
Return to contents
Purchasing the equipment you will need to open your own workshop
It is worth noting that an entrepreneur will need to spend the most money on purchasing the necessary equipment.
A small workshop requires the following equipment:
- special equipment:
- Hearth oven (50,000-70,000 rubles).
- Convection oven (200,000 rubles).
- A stove for making various fillings (40,000 rubles).
- Flour sifter (20,000 rubles).
- Mixer for liquid dough (30,000 rubles).
- Mixer for making creams (18,000 rubles).
- Dough mixer (30,000 rubles);
- Other equipment that you will definitely need to purchase:
- Tables, shelving and bathtubs (20,000 rubles).
- Freezing and refrigerating cabinets for storing various ingredients and raw materials (50,000 rubles).
- Refrigerator for storing finished products (120,000 rubles).
- You will also need baking equipment (approximately 100,000 rubles).
The production of confectionery products requires a large amount of baking equipment. If an entrepreneur does not have a large enough amount of funds at the very beginning, you need to think about choosing equipment that is produced in Russia. However, the opinion of most experts in this market is that all confectionery equipment should be imported.
Return to contents
Necessary equipment for a confectionery shop for automation
At this point, everything is extremely simple - this technique is an ordinary PC (personal computer) and accompanying software. It is important to know that the number of computers must correspond to the number of working employees who must have access to the tasks of the document control program. Typically, such employees are accountants, storekeepers, technologists and managers.
It is important to take care of automation if an entrepreneur wants to have modern, operational and visual control over all possible types of technological operations performed. These may be actions for the arrival of raw materials at the enterprise warehouse and calculations for writing off finished products after they have been sold, and so on.
Capital investments in business: from 2,000,000 rubles.
Payback period of the enterprise: 2-3 years.
Despite the state of economic crisis that is already familiar to the Russian-speaking population, people are not going to give up small joys.
On the contrary, the production and sale of confectionery products is a profitable idea.
However, this niche is represented by several large concerns, and it is not so easy to compete with them.
If you are serious, first you need to make confectionery business plan.
Sweet products of your own production can be sold to supermarkets, cafes, restaurants, and delivered to individuals.
As a prospect for business development, it is worth considering the idea of opening a coffee shop with a wide range of goodies.
Necessary documentation in a confectionery business plan
Any business plan begins with brief information about what kind of enterprise it is planned to open.
An important part of the introductory section is the choice of registration method and the list of required documents.
A short algorithm looks like this:
Select individual entrepreneur or LLC.
The first option is preferable, more accessible and simpler.
However, if there are several founders, individual entrepreneurship will not work.
Choose a tax system.
It’s good if you can choose the “simplified” one.
This will reduce not only financial costs, but also the amount of necessary information.
Get permissions.
To conduct any activity, you must obtain the go-ahead from the SES and fire safety.
Also, specifically for a confectionery shop (since it is a food production facility), you need to obtain a work permit from the local government.
The last paper will make it possible to conduct business, approve the recipe and, of course, serve as a certificate.
It is impossible to conduct business without all these papers.
Firstly, because no serious buyer will enter into a deal without quality certificates.
Secondly, as soon as any check reveals the absence of documents, huge fines will be imposed, including the closure of the point.
But it's worth noting: if you're starting small, you can leave a couple of weeks to test the niche.
This applies, for example, to those who make cupcakes or designer cakes in small quantities at home.
Marketing analysis for a confectionery business plan
As already mentioned, there are currently several giants of the “sweet” industry on the market.
But even a start-up business has a chance to take its place.
To achieve success and stability, it is important to analyze the market situation and highlight significant competitive advantages.
Market analysis of confectionery companies
| Characteristic | |
|---|---|
| General characteristics of the market | At the moment, the market is conditionally divided into two parts. Large enterprises focus mainly on cooperation with large distribution points. While small firms prefer to sell business products independently. |
| Growth trends | The niche is actively developing, creating conditions for the emergence of new companies. However, in times of recession, the less competitive ones quickly drop out. |
| Barriers to entry | The entry threshold into this business is available to experienced market players. Most aspiring entrepreneurs consider the barrier to entry to be too high. |
| Price category | The main part of the range of sweet products should be aimed at people with an average income level. However, it is important to have a product line for the less able to pay public. |
| Flexibility | More than 34% of product consumers are ready to start buying products from a new manufacturer if they are more attracted to them than usual. |
| Technology changes | Large enterprises are constantly improving technologies and offering new solutions. Small confectionery shops face the risk of making less profit due to outdated equipment. |
| Best before date | There is a tendency to shorten the lifespan of sweet products. If you do not keep up with it, you may face the risk of large volumes of expired goods. |
List of competitive advantages for a confectionery shop
Competitor analysis is something that must be included in a production business plan.
Obviously, the range of products will be almost the same everywhere.
Therefore, you need to look for some other features that will set you apart in the market.
| Advantage | Description |
|---|---|
| Identity of parties | People love to experiment with new tastes. But they also expect their favorite candies to always remain the same. If you don’t follow the technology and try to save money by changing the recipe, you can seriously undermine your reputation. Consistency, on the contrary, becomes an important competitive advantage for a bakery. |
| Only fresh goods | Often supermarkets sell products not from the manufacturer, but brought by an intermediary. Because of this, people receive less fresh goods, and sometimes the products are completely expired! Selling products from our own confectionery production gives the advantage of always having a high-quality product “fresh from the oven.” |
| Natural ingredients | Our own production allows us to offer customers products prepared without dyes or preservatives. The fashion for healthy food began several years ago and is not going away. Use this as a competitive advantage for your business. |
Methods of promotion in a confectionery business plan
IN confectionery business plan It's worth including a list of methods you'll use for promotion.
Even a small establishment can achieve significant success if you use a competent advertising strategy.
- Before opening the establishment, it is worth advertising in local media.
- Pay attention to the bright design of the cafe or.
Offer discounts to your customers in the evening.
This will allow you to sell products with suitable expiration dates and attract additional visitors.
Use the power of the Internet.
In addition to the obligatory step of creating a website, pay attention to promotion through Instagram.
Confectionery production allows you to create a large amount of beautiful photo content.
This will attract many followers who can turn into customers.
Sales points for confectionery
Small confectionery shops can sell products exclusively to direct customers using courier delivery.
In this way, goods for the holidays are usually sold: gift sets of muffins, sweets in original packaging.
If you are aiming to cooperate with stores, keep in mind: large retail chains do not cooperate with start-up confectionery production.
You shouldn’t be stubborn and knock on their doorsteps.
Better switch your attention to small local shops.
Only after you are firmly on your feet can you move on to “conquering” retail chains, albeit small ones.
Another good option for development is to open a cafe or coffee shop at a confectionery shop in which you will sell products.
This will significantly increase sales and attract new customers.
How to choose a room to open a pastry shop?
The basic requirements for business premises are dictated by the SES and fire inspection.
- The confectionery shop cannot be located in basements or semi-basements.
- There must be an emergency exit, fire extinguishers, and a fire warning system.
- The confectionery must have technical premises - a bathroom for workers, a rest room, a warehouse.
The confectionery shop must have proper electrical wiring and a source of constant electricity.
The consequences of outages and disruptions in the sweets industry can be much more serious than for any other business.
High temperatures and intense odors make staff uncomfortable.
Provide the room with good ventilation.
If you will sell products directly next to production, you need to choose places with a large flow of people.
What equipment do you need to open a pastry shop?
The list of equipment in the confectionery business plan will be formed depending on the future assortment and production format.
The attractive thing is that in any case the list will not be particularly extensive.
The entrepreneur must indicate the name and cost of the equipment, from whom it will be purchased and who will install, configure, and repair.
To save money, business equipment can be purchased used.
Main list items for organizing the work of a confectionery shop
| Name | Description |
|---|---|
| Cash register | Equipment that is necessary if the confectionery shop independently sells its products in display cases or in an adjacent cafe. The price varies between 20,000 - 35,000 rubles. |
| Furnaces | To fully operate a confectionery shop, you need to purchase several types of ovens and ovens. The total cost will be from 450,000 rubles. |
| Cooking equipment | To make confectionery products, you need a flour sifter, oven trays, various molds, equipment for preparing dough, pastry syringes, proofing cabinets. |
| Additional equipment | Food production also requires a standard set of equipment for storing and packaging products. For a confectionery these are: refrigerated chambers, refrigerated display cases for sale at the establishment, packaging containers, work tables. |
Staffing in a confectionery business plan
Some entrepreneurs, when opening a confectionery shop, decide to start doing all the business alone.
In practice, it quickly becomes obvious that it is almost impossible to cope on your own.
It is much wiser to hire a small staff and spend your time on managing the process, coordinating processes and promoting the business.
The main requirements for employees are work experience and health records.
The chef will also need documents confirming the necessary education.
Financial section of a confectionery business plan
All calculations for organizing the company are included in the financial section of the confectionery business plan.
The main attention of investors or bank representatives will be directed here.
How much money do you need to open a pastry shop?
The cost of opening a confectionery shop will depend on the location, format of the establishment, state, and production volume.
However, in any calculations you will definitely encounter these points:
| Expense item | Amount (rub.) |
|---|---|
| Total: | from 1,140,000 rub. |
| Preparation of business documentation | 60 000 |
| Interior design | 150 000 |
| Purchase of initial stock of raw materials | 100 000 |
| Conducting marketing analysis | 150 000 |
| Purchase and installation of equipment | 600 000 |
| Advertising campaign for a confectionery shop | 30 000 |
| Other business expenses | 50 000 |
Regular investments in a confectionery shop
Interesting fact:
German scientists studied the relationship between character and preferences in candy fillings. It turned out that creative people love coconut filling, while romantics love strawberry filling. Shy people will prefer chocolate with nut filling, while decisive people will choose cherry.
It is important to understand that a confectionery shop does not pay for itself as quickly as some other types of business.
Therefore, an entrepreneur needs to have a source of funds to finance the confectionery until it reaches the level of self-sufficiency.
With my experience on how to turn a confectionery business into a profitable business,
a successful pastry chef shares in the video:
Payback periods in a confectionery business plan
Although it is not recommended to immediately buy premises for a business, having your own retail space, an entrepreneur can significantly increase the profitability of a confectionery shop.
Income is provided by the retail sale of sweet products, the production of designer cakes, and profits from production.
If you implement the idea correctly, the payback will be at least 30%.
With this indicator, even a substantial capital investment will pay off in 2-3 years of operation.
Literate confectionery business plan and proper promotion of the point create the likelihood that in the future profitability will increase to 100%.
Useful article? Don't miss new ones!
Enter your email and receive new articles by email
For many people who want to invest money in their own business, opening a pastry bakery will be the best solution. Despite the fierce competition in this segment, with a competent marketing strategy you can take a strong position in the market and make a good profit. In this article we present a detailed business plan for a confectionery bakery, where we will justify the feasibility of the project, calculate the payback period and profitability.
Even a mini bakery can generate a stable income of 80-200 thousand rubles per month. This type of business activity is attractive, first of all, due to the stability of demand. Despite fierce competition, this niche is not completely filled and with high-quality products, a large assortment and well-established sales channels, you can count on success.
Compared to large players who present baked goods in a very meager assortment, mini bakeries respond more quickly to seasonal preferences of customers, trends in the culinary world, etc.
Why write a business plan?
Many novice entrepreneurs make a very common mistake and start implementing a project without thoroughly studying the market, analyzing the competitive environment, or drawing up a production and financial plan.
This poses serious financial costs and maximizes risk. If we talk about business related to the production of bakery products, then it may seem simple to many novice businessmen. The production technology itself and sales channels are all simple and easy to understand even for novice entrepreneurs. But we should not forget about the weaknesses of the project, about its risks, which can cause serious damage to the business.
With proper business organization and a clearly developed marketing strategy, you can quickly achieve payback and good profits. A lack of weaknesses and ignoring strong competitors, on the contrary, will lead to losses and closure of the business.
Project Summary
The section reflects the relevance of the business idea and the feasibility of doing business in this direction.
The goal of the project is to open a confectionery shop in a city with a population of about 300 thousand people.
The advantage of this business idea is a very wide target audience, which can be expanded further by offering confectionery products for different groups of the population.
The main advantages of a mini bakery are:
- wide demand for the product;
- stability of demand;
- wide target audience;
- high profit volumes in the long term;
- opportunity to develop business and offer related services;
- business profitability is 20-30%.
Flaws:
- high competition;
- dependence on external factors;
- perishable goods.
This type of business is characterized by wide and stable demand.
Depending on the format of the business, you can count on a profit of 100-200 thousand rubles per month. But, given the small investment, this article will focus on mini bakeries, where the main emphasis in the assortment is on baking confectionery products.
Regardless of the season, holidays, etc., people consume a large number of products in this segment, which is a definite advantage. But we should not forget about the weaknesses of the project.
The short lead time for the sale of goods necessitates clear sales forecasts, otherwise a large number of products will need to be disposed of. Advertising, creating a loyalty program, quality service and a wide range of additional services will help mitigate these risks and achieve a good, stable income.
Market analysis
Despite the great competition in the confectionery market, it should be noted that there is a great demand for this product. There is a particular demand for services and products in this segment during the holidays.
It is also necessary to note the lack of seasonality in the baking business? Among other services and goods, baking and selling confectionery products is one of the most promising today. With proper planning and development of the company, you can achieve a profitability of 20-30% in a short period of time and make a good profit.
Before starting the project, it is necessary to determine the format of the business. This directly depends on the scale of the city. The format will determine the target audience, the general concept of the store, its stylistic orientation and design.
You can implement a business idea in two directions:
- opening a bakery on your own;
- buying a franchise.
In the first case, you will have to think over the name of the company, promote its services, and conquer the market from scratch. In the second case, advertising costs will be minimal. Since you will be working with an already promoted brand, recognizable and loved by customers.
Each of these two options has its pros and cons. For example, buying a franchise completely deprives you of freedom. You will have to use the entire assortment, recipe, and branded packaging strictly according to the contract.
One of the first steps in studying the competitive environment is to identify the main players in the market. Carefully study their products, sales channels, and pricing policies. This will allow you to form an idea of what direction to move in.
Great emphasis must be placed on correctly identifying the target audience, forming a pricing policy and developing marketing activities to increase sales.
To analyze the competitive environment and determine your own advantages and weaknesses, it is advisable to conduct a SWOT analysis and identify the pros and cons of the project, threats and development opportunities.
SWOT analysis
Possibilities:
- business development and opening of additional confectionery shops;
- high profitability;
- possible increase in overall demand;
- possibility of implementing additional services.
- high competition;
- short shelf life of products;
- There may be problems with raw material suppliers.
Strengths:
- highly qualified personnel;
- wide demand;
- lack of seasonality;
- availability of services;
- quality service;
- effective advertising.
Weaknesses:
- possible miscalculations regarding demand for products;
- lack of experience in this area of business.
Development of pricing policy
When determining the pricing of your products, you should rely on the business format and target audience.
You shouldn’t put too high a markup on confectionery products due to huge competition and short shelf life. Only a company that occupies a leading position in the market and offers branded products that are qualitatively different from competitors can afford a high price tag.
Bakery services
The line of business for opening a confectionery bakery can be implemented in several options:
- small bakery producing buns;
- mini bakery with point of sale;
- own workshop for the production of confectionery products with a small shop and cafe.
The best option for a small business is its own workshop with a direct sales point.
To expand the range of services and strengthen competitive advantages, you can implement a service for targeted delivery of products.
The product range can be very wide:
- croissants;
- bread with various additives;
- pies and buns;
- cakes;
- diet bread and crackers;
- cream cakes;
- cookies, waffles, gingerbread.
Organizational plan
In order to correctly implement the project and successfully enter the market for the production and sale of confectionery products, it is necessary to carry out the following points step by step:
- Register a business.
- Find a premises and sign a lease agreement.
- Purchase commercial equipment.
- Hire staff.
- Develop a marketing strategy and a way to promote services.
Registration and paperwork
To open a bakery, an entrepreneur must not only register with the Tax Inspectorate and the Pension Fund, but also obtain permits from Rospotrebnadzor and Fire Supervision.
At the very beginning of this stage, the question of choosing an organizational and legal form will arise. To implement a mini bakery, you will have to choose between an individual entrepreneur and an LLC.
It is also necessary to correctly register the codes in the registration documents
To launch a mini-bakery project, 55.30 “Activities of restaurants and cafes” must be specified as the main code.
It regulates activities related to the production of food products and their sale directly at the place of production. Other codes can also be added, but this one must be specified as a key one.
After submitting documents to open an individual entrepreneur, it is necessary to resolve the taxation issue. The optimal solution would be to choose UTII, but it is not available in every region.
In addition to registration documents that allow you to carry out business activities, you will also have to issue many permits for equipment, premises, and personnel work.
Considering the specifics of the business project, you need to be prepared for constant inspections by sanitary services.
So, to open a bakery you need:
- Submit documents for registration as an individual entrepreneur.
- Select and arrange the premises in accordance with the requirements of government inspections, make it safe for workers and visitors.
- Obtain permission to open from Pozhnadzor and Rospotrebnadzor.
Also from additional documentation you will need:
- Conclusion of the SES on compliance (sanitary and epidemiological examination);
- Book of complaints and suggestions;
- Waybills (TORG-12);
- Lease agreement.
To work, you will need to purchase a cash register and keep a cash register. It will take you 2 to 3 business days to complete the process.
The choice of products for launching a bakery and selling confectionery products should be approached very carefully. The success of the business will largely depend on this.
If you have chosen the business option of purchasing a franchise, then a consultant from the franchisor company will help you choose the right premises and arrange it. This is one of the advantages of working with a franchise.
If you open a bakery yourself, then when choosing a premises you should take into account the following nuances:
- permeability of the place;
- transport accessibility;
- rental price;
- long-term lease;
- possibility of rental holidays;
- are utility bills included in the rent?
- permission for repairs and redevelopment of premises;
- permission to place external advertising.
You should not open a confectionery shop near fitness centers or sports clubs. But the proximity to children's entertainment and educational institutions will contribute to a good flow of clients.
The size of the room and its style largely depend on the chosen business format. It should not be a basement, water should be supplied to the room, and a ventilation system should be equipped.
The ideal option is a room with large glass display cases, which will allow you to display products on display, attracting customers. Also, if you plan, in addition to direct sales of products, to set up a mini cafe where customers can enjoy fresh pastries with a cup of coffee, you need to rent a room in which you will install 3-4 tables.
In addition to the client hall and sales counter, it is necessary to think through the production part. Depending on the chosen business concept, this area can be open or closed.
The advantage will be the presence of a back entrance where it will be possible to transport equipment and raw materials without disturbing customers.
If you decide to implement a business project not only in the production, but also at the same time in the sale of confectionery products, then the place should have good traffic. In a big city, consider options near the metro, educational institutions, and large shopping centers.
Renovation costs vary depending on the chosen style and project concept. Minimum - it is necessary to whitewash the walls and ceilings, tiled the floor. Be sure to include these costs in the financial plan section when calculating the payback of the project.
The purchase of equipment will be the largest expense item. At the same time, the quality of the product and the final result directly depend on the quality and manufacturability of the equipment.
To minimize initial costs, you can consider purchasing used equipment.
Here we present a business plan that aims to produce and sell our own products locally.
This necessitates the purchase of two types of equipment:
- For direct production of confectionery products.
- For selling products.
The production type of equipment includes:
- bake;
- dough mixer;
- closet;
- hearth sheet;
- table for cutting dough;
- baking trolley;
- flour sifter.
The average purchase price for this list of equipment is about 1 million rubles.
To sell products, you will need:
- refrigerator;
- thermal showcase;
- cash register;
- safe or cash drawer;
- seller's table;
- racks for storing products.
If the business format includes a mini cafe on site, then it is necessary to purchase furniture for visitors:
- tables (3 pieces);
- sofa (2 pieces);
- air conditioner;
- chairs (10 pieces;
- mirror;
- hanger.
Issues regarding the purchase of raw materials play an important role in the implementation of this project. Pay great attention to the quality of raw materials, reliability of suppliers, price and delivery time of products.
You can search for partners via the Internet. This is long and painstaking work. You should not order all the goods from one supplier at once. In the first months, it will be advisable to work with 3-5 suppliers at once. Although this approach will require additional time and effort, it will allow you to identify the best supplier with whom you can then enter into a contract and ask for an additional discount.
It is necessary to conclude a verbal agreement on supplies with suppliers at the planning stage, so that there are no time delays later.
Do not forget that in addition to the supply of basic products, you need to take care of the purchase of packaging products.
Profit and the success of promoting services on the market largely depend on properly selected personnel. Depending on the size of your business, you may need a different composition and number of employees.
The staff must include:
- confectioner;
- baker (2 people per shift)
- technologist;
- seller (2 people);
- director (accountant);
- sales manager;
- cleaning woman.
To minimize costs under the “Salary” expense item, you can hire an accountant from a third-party organization, paying for piecework when submitting reports to the tax service.
It is advisable to make the bakery operating hours around the clock, taking into account the specifics of the business. To do this, you need to hire sellers and bakers in double numbers. Be very careful when selecting sellers.
In addition to sociability and a pleasant appearance, they must have an excellent understanding of the psychology of the buyer and be able to offer a product.
Video. Business idea for opening a bakery
In accordance with the business format and target audience, it is necessary to develop competitive advantages and a marketing strategy for the bakery.
In order to stand out from competitors, you need to think over your own corporate style, focus on packaging and service. You can come up with creative services that will be provided only in your mini-bakery (personal greetings on a cake or pastries, home delivery of products, baked goods to order, etc.)
Promotion of services and goods
The main channels of product promotion will be direct sales and external advertising.
To actively promote products, it is necessary to think through a loyalty program, various promotions, and discount savings cards for regular customers. This will increase sales and create a base of regular customers.
Pay attention to outdoor advertising. This is due to the fact that people very often buy confectionery products on impulse. A colorful sign, a bright original exterior, outdoor advertising and a sign will help increase sales.
A few weeks before the opening of the bakery and the start of production, you can organize a large-scale advertising campaign, and make the opening day a holiday. To loudly announce your entry into the market, decorate the store with balloons, organize competitions and promotional sales.
Word of mouth will start working only 6-8 months after the launch of the project, but for this you need to take care of the company’s reputation and your own corporate style.
An excellent marketing move would be to create your own corporate identity and develop gift packaging. Considering the stiff competition in this segment, this will allow you to stand out from other bakeries. In addition, modern trends require a creative approach to the design of not only the products themselves, but also their packaging.
Don’t forget that in order for this “trick” to work for you, you must pay great attention to the company’s reputation. The company's reputation consists of high-quality personnel, a wide range of services, prompt service, and optimal price-quality ratio.
As mentioned above, for a franchise business, the advertising budget may be minimal.
Financial plan
Depending on the business format, you can sell from 50 to 100 kg of products daily. It is difficult to talk about the exact amount of daily revenue, since much depends on the product range.
The average bill per client will be 100 rubles.
Initial:
- repairs – 100 thousand rubles;
- purchase of commercial equipment – 900 thousand rubles;
- business registration – 3 thousand;
- advertising for opening – 10 thousand;
- purchase of goods – 50 thousand
TOTAL: 1063 thousand rubles
Permanent:
- staff salary – 70 thousand;
- premises rental – 20 thousand;
- utilities - 15 thousand;
- purchase of goods – 60 thousand;
- additional expenses – 30 thousand.
TOTAL: 195 thousand rubles
The average payback period, with a properly developed plan and strict adherence to it, is 4-5 months.
The main advantage will be the direct sale of your own products. In addition, you can develop your business by establishing partnerships, concluding an agreement for wholesale supplies to supermarkets, confectionery shops, etc.
Video. Features of bread production
Conclusion
As you can see, the process of implementing a business idea to open a confectionery bakery is quite simple.
The main thing is to strictly follow the developed plan and take into account all the weaknesses of the project.
In order to minimize risks at the first stage of launching a project, follow these simple tips:
- think over the assortment and highlight branded positions;
- start by baking 8-10 items;
- focus on the target audience;
- do not start production with large batches.
Video. Opening your own bakery
Fragrant croissants, bright pastries and mind-blowing cakes hidden behind the glass of patisserie cafes delight the eye and heart. The very thought of a beautiful, cozy pastry shop evokes a feeling of celebration. Therefore, there are many who want to open such an establishment in order to work in a light atmosphere and get good money for it.
But not every business is what it seems at first glance, and your dream confectionery is no exception. In order for a business to generate income and pay off, you need to make a lot of effort and foresee a lot of pitfalls. Beginning businessmen will have to say goodbye to illusions already at the stage of preparing for the opening, because the confectionery shop that you so desire may turn out to be completely unnecessary for other townspeople. Therefore, before you start opening, study the market.
Where to start?
There are two possible ways here. The first of them is to order a full-fledged marketing research from a specialized company. This option is suitable only for those who are not limited in money: the price of the research is quite high. For example, in Orenburg it is about 90 thousand rubles. For this money you get a full report on existing competitors, including the products they offer and pricing policy.
For those who count every penny, it is better to resort to the second way to study the market - do everything yourself. There are no particular difficulties in this. First, you need to identify similar points in the city and go around them, buy products from them yourself and try them, and also take a closer look at what others are buying.
It would be a good idea to look into large supermarkets that have their own production of baked goods and confectionery products. This will allow you to better understand what people buy and in what volume.
After such a campaign, you should have an idea of your target audience.
It is best to pay attention to such an audience as mothers with children.
The fact is that in recent years there has been a demographic boom, many children are being born. Over time, they grow up, but there is essentially nowhere to go with them. Therefore, any business aimed at children in one way or another is quite promising.
Once you have decided on your buyer persona, it will be much easier to resolve the issue of pricing. The price of the products, and all other nuances of the business, will depend on what format of the confectionery you choose. Here again, two options are possible.
First- confectionery shops of a lower price segment, which offer an assortment for every day: the types of products most popular among customers.
Second- premium confectionery. In such establishments the price tag is higher due to the use of more expensive ingredients. And they can be expensive for a number of reasons, for example, because all the products are only natural - no ready-made mixtures used in ordinary confectionery shops - or because these ingredients are rare for Russia.
Investment volume
Investments in this business can vary greatly depending on the format of the confectionery shop. Opening a full-fledged cafe-confectionery, designed for the average consumer, will cost no less than 3 million rubles. This amount will include renting premises in a residential area, carrying out repairs, as well as purchasing equipment: a refrigerator table, a freezer table, several stoves with 4 burners, an induction stove, two display cases for baking, a display case for bread, a coffee machine.
Selling bread in a confectionery shop will allow you to “attract” more customers - people are more likely to buy cakes when they go to the store for bread, but they are less likely to go directly to buy sweets.
Prices for such equipment will vary greatly depending on its type and supplier. According to experience, the cost of the most necessary things is about 650 thousand rubles:
- 217 thousand rubles for a showcase,
- 64 thousand rubles - for a refrigerator table,
- 77.7 thousand rubles - for a freezer table,
- 168 thousand rubles - for “induction”,
- 122.6 thousand rubles - per stove.
How much you spend on purchasing supplies depends on what kind of confectionery products you plan to prepare and sell.
Where can I get money?
Obviously, not every novice entrepreneur has even 3 million rubles “hidden away”. Therefore, anyone who wants to open their own confectionery shop faces the question: “Where can I get the money?” And here you can go in several ways: borrow from relatives or friends, get a loan from a bank, or apply to various entrepreneurship support institutions for a grant.
From personal experience
To open a pastry shop, you have to take out a loan. The likelihood that you will be given a grant when you are just about to open a company is very small. You should contact the support fund when your business is already operating. A grant will make it easier for you to repay your loan. Keep in mind that receiving a grant is quite a troublesome task: you need to prepare a lot of documents, come to the commission and prove to it that you want to work, that you are the best and that you have grandiose plans. All this takes a lot of effort and time, but still brings results.
Confectionery expenses
Investments in the confectionery business are quite large, but it will not be possible to achieve profitability right away. Therefore, at first, and perhaps in the future, the entrepreneur will want to save on current expenses. To understand where you can save, you need to know the main expense items.
First of all, the owner of a confectionery shop will have to spend monthly on rent, payroll and utilities. By the way, the costs for the latter item will be quite large: ovens, freezers and display cases require a lot of electricity to operate. But this is where you can save money. To do this, first of all, you need to work with staff, set them up for savings and rational use of equipment.
A large item of financial loss is associated with product write-offs. What is written off, as you know, is no longer suitable for sale. But the problem is that not only “substandard” or expired goods can be written off, but also quite good products and finished products. But they won’t go to the trash, but to the homes of unscrupulous sellers and confectioners.
To minimize this possibility, it is necessary to very carefully control the issue of product write-off. To do this, you will have to constantly analyze sales, watch seasonal surges or declines, and maintain a special schedule-calendar, based on the work of the past month, last week and last year. Such a schedule should be constantly in front of your eyes. Only such scrupulous control allows you to save on write-offs.
Step by step instructions
As mentioned above, to open your own confectionery shop, first of all you need to analyze the market. This will help you decide whether your city needs a confectionery shop at all and what kind of bakery it should be. After the analysis has been carried out, it is easier to choose the format: economy or premium. Keep in mind that there is not much room for expansion in a premium bakery. If working with economy, you can eventually build an entire network, then for a city with a population of over a million, one or two establishments with premium sweets will be enough.
After you analyze the market and choose a format, you need to start searching for suppliers of equipment and raw materials. Equipment suppliers need to be selected based on both prices and reviews. For the latter, you can always go to entrepreneur forums, this will help you get the necessary information. Even if after reading you still have some questions, you can always write a message to one of the discussion participants to clarify how this or that device behaves in production.
Advice
It would also be a good idea to contact equipment repair companies. A conversation with a technician will help you understand which manufacturers’ equipment requires repair most often. It is better not to purchase the most “unresistant” models: the costs of repairing them can cover all profits.
As for raw materials, here again everything depends on the chosen format of the confectionery. In economy, it is better to work with ready-made mixtures. Such “powdered” products are produced today for almost everything: biscuits, bread, cheesecakes, etc. Cooking from such mixtures is faster and easier; your pastry chef has almost no chance of spoiling the products.
The premium segment involves working with “live” products, and this implies additional difficulties. Confectionery products require strict adherence to proportions and recipes and do not tolerate any experimentation or connivance. Accordingly, the likelihood that an all-natural cake will be spoiled by too much baking powder or insufficiently beaten eggs is much higher than when working with powders.
For beginners, it is preferable to work with ready-made mixtures.
Many people start with this, and later switch to natural products, because it is more interesting for confectioners to work this way.
Whatever you choose - powders or natural products - you need to choose suppliers of raw materials according to approximately the same criteria. The first thing that is important to pay attention to is the composition. The more natural it is, the higher the quality of the products. The second is taste. Before purchasing a large batch of powders or milk, you need to taste the products. If you decide to make a “fashionable” establishment where everything is prepared from farm products, you need to visit the farm and evaluate its condition, see in what conditions the animals are kept or the grains and fruits are grown.
It wouldn’t hurt to start looking at the staff for the confectionery in advance. You will need both the pastry chef himself and sellers. Moreover, the latter are no less important for the matter. The seller must monitor the product labeling and expiration date. He also monitors compliance with the temperature regime and puts the products in the refrigerator.
For the seller, the entire algorithm for working and communicating with clients will have to be written down from A to Z: he must know the assortment and pass certification for this knowledge, he must know “clichés” - certain words for communicating with a guest, especially one who comes for the first time.
In addition, the seller must understand where he works. Yes, yes, and we are not just talking about the name of the confectionery here. He should know the main features of your particular confectionery shop and understand how it differs from others.
Considering that the pastry shop is open daily, you will need at least two pastry chefs and two sellers. They can work according to the scheme “2 working days - 2 days off” or “3 working days - 3 days off”. The choice of such a scheme is not accidental. Firstly, your confectionery shop must have a certain operating mode. It is important to open before visitors who work the standard five-day workday begin their workday. Many of them drop off their children at school by 8 a.m. and then pop into a pastry shop for coffee and breakfast while they have time before work. The same applies to working in the evening.
You have to “hook” people who are in a hurry to get home and decide to stop by for some baked goods along the way. Therefore, there is absolutely no point in closing at 6 pm; it is better to work until 8-9 pm.
At the same time, the staff is in the confectionery not only during working hours. Employees usually arrive about an hour before opening. This time is spent turning on and warming up the coffee machine, preparing frozen semi-finished products so that there will be fresh baked goods ready for opening, and putting everything on display. But even after closing, the staff does not leave, because there is still a lot of work to do: cleaning, closing the cash register and counting revenue, etc.
In parallel with the search for personnel, you need to select a premises for the confectionery, and the requirements for it will again largely depend on the chosen format.
The best place for a premium-segment confectionery is in the city center, although rent there is more expensive. This way you will not only “catch” people walking and relaxing who are ready to spend money on sweets, but also those who are ready to come from a remote area for some culinary masterpiece.
More simple confectionery shops with the most popular assortment and modest prices are best located in a residential area. A good place is also in shopping centers with good traffic. A particularly good solution is to place such a confectionery at the exit of the supermarket.
Also, the first floor of a residential building is quite suitable for placement. Confectionery shops, as a rule, do not cause any complaints from neighbors. After all, there is no loud music, no alcohol - nothing that irritates the residents of the house. Although it’s still better not to open a confectionery shop in a high-rise building. According to the rules, food production must be equipped with ventilation and exhaust hood. The latter should be placed two meters above the roof level.
According to legal requirements, the confectionery must comply with the SES requirements for a public catering establishment. However, in practice, no one places too strict demands on confectionery shops.
The norms that are written in the documents are very outdated. Therefore, each entrepreneur adapts the existing premises to the concept that he has chosen for himself. But there is no super difficulty in choosing a room in terms of renovation.
The area of the pastry shop depends mainly on your capabilities. For example, we have a small point selling confectionery in a shopping center, fitting into 15 square meters. m. This is our smallest confectionery. And the largest one occupies two floors: on the first floor you can buy cakes to take away or drink coffee here at the table, and on the second floor the pastry chef prepares the dishes.
Much more important is the condition of the room. It must have ventilation, water and electricity. To start work, you will have to invite a SES, which will check the premises for “suitability” for organizing food production. In addition, you will have to conclude an agreement with the SES on laboratory and production control. This means that officials will take samples of your products and check their safety.
In addition, the premises must meet the requirements of fire supervision, so contracts will also have to be concluded with this authority. A confectionery shop is a fire-hazardous industry, because it operates powerful ovens. Therefore, a fire alarm must be installed. You also need to have a second entrance in case of an emergency.
Documents
Any business requires mandatory registration. A cafe-confectionery can be registered both as an LLC and as an individual entrepreneur. The second form is still preferable, since it is easier to work with. LLC is mainly needed by those establishments where alcohol is sold, but a confectionery shop does not provide this.
But working as an individual entrepreneur, you can, for example, refuse a cash register. At the same time, an LLC is required not only by the cash register itself, but also by a special agreement for its maintenance.
For an individual entrepreneur, all tax-related costs will be significantly lower.
For example, when working as an individual entrepreneur, you can use a patent taxation system, which will allow you to do without regular deductions of personal income tax, VAT and property tax for individuals. Instead, it is enough to buy a patent and forget about going to the tax office for the entire period of its validity. This move allows you to save both money and time.
Also, when registering a business, it is worth knowing that according to OKVED, the confectionery is classified as “Production of bread and flour confectionery products of non-durable storage” and has code 15.81.
Now all communication with the SES and Rospotrebnadzor is of a notification nature. That is, to open a confectionery shop, you do not need to obtain any permits, you just need to notify the sanitary services that you exist.
According to the law, an inspection from the SES or Rospotrebnadzor can come to you only after three years of work, and during this time it is quite possible to get back on your feet and eliminate any minor shortcomings, if any. But keep in mind, in the event of a complaint from visitors or neighbors, if you opened in a residential building, services will come to you immediately. In case of gross violations, they can close the establishment for a period of 90 days, and this is a colossal loss. Therefore, it is better to work according to the rules.
To do this, you will need to enter into an agreement with disinsection and deratization stations. According to it, the confectionery will be treated against insect pests and rodents.
Here we will look at an article about how to open a confectionery shop, what is needed for this, and consider a business plan for opening it.
Entrepreneurship in the production and sale of confectionery products is considered an attractive investment for any investor. With relatively low costs, about 400 thousand dollars, to create production from scratch, the profitability of the business can reach up to 30%.
Let us immediately note that your hottest sales days will be the pre-holiday and holiday days... which, in fact, is not surprising.
Business plan
For you, we have prepared a detailed ready-made example of a business plan for a café-patisserie, which you can download. The file contains all the approximate figures and calculations that will be necessary for your business. If you want to open without a cafe, then simply remove the costs and income associated with it.
Thanks to this example, you can evaluate your capabilities.
How to open
So, let's look at the information on how to open a confectionery shop and what you need to open it point by point.
Market selection
Well-established regional manufacturers that are developing the center have a greater chance of success, although newcomers also have prospects. A positive example is the experience of the Fili-Baker confectionery. They have been on the market for four years. Initially, their segment was focused on the production of bread and bakery products. Having entered the market with the production of cakes, they faced stiff competition. They had to prove the consistency of their products for this confectionery for a whole year, sometimes even buying them in stores themselves. The result was that the Pancho cake became the best-selling cake in the capital in four years.
Necessary investments
The technologically complex production of confectionery products requires high-quality equipment. Domestic equipment for an enterprise with one furnace will cost approximately 100 thousand dollars. At the same time, the oven itself will cost about 20 thousand dollars, and everything else will be needed to purchase mixers, a filling and packaging line for the confectionery. It makes sense to choose between domestic and foreign equipment, since the cost of the latter is almost twice as expensive.
The next significant expense is the rental of premises. Moscow 200 sq. m will cost from 180 to 200 thousand dollars per year. You also need at least five cars for the pastry shop. This will still amount to 70 thousand. The main component of success is the development of your own logistics service. A perishable product must be sold as soon as possible.
You also need to consider the costs required for marketing research and promotions. You will have to fork out for everything, from shelf space to a new position in the assortment.
Creating a team of like-minded people, when selecting personnel for a confectionery, first of all, it is necessary to take into account the desire and interest of employees in producing a quality product. You also need to take into account the range of partners with whom cooperation is planned and the range and volume of products. For ten retail stores, 10-15 staff will be enough in the person of a baker and an assistant, a team of confectioners of 5-6 people, one of whom should be a technologist. The rest of the confectionery staff will be distributed between logistics and order receiving services and administrative positions.
If you plan to produce cakes, then another team of confectioners is needed for this, due to the fact that the cooking technologies have significant differences.
Product range
It is necessary to start with well-known and technologically simple recipes for pastry shops. Having proven yourself well in this segment, you can start producing premium cakes. In terms of volume in the Moscow market, they occupy about 10% and starting production for an inexperienced enterprise is risky and unprofitable.
Sale
It is better to start selling finished confectionery products in small stores. Only after successful implementation over a certain period can you offer your products to small chains. In the future, as you gain authority and a positive reputation, large stores and retail chains will themselves become interested in your product.
Finally, a video on this topic:
We hope that this article about how to open a confectionery shop and its business plan will help you start your own business.