Profitability Matters!

Even though bakeries and even a baker distributor might be enamored with the kinds of creative bakery inventions, they aren’t always what makes the most money for bakeries. Yes, mashups and clever novelty products are great at grabbing customers’ attention and getting them in the door, but what makes the most money for bakeries are the everyday staple items. At least, that’s what the magazine Bake discovered in their 2017 Retail Bakery Operations Study.

Here’s the Breakdown:

According to those who responded to the study, the most common bakery items produced were cookies. These were the top items produced by bakeries and bakery distributors at 89 percent. Cakes came in second at 79 percent, cupcakes came in third at 73 percent, and muffins and scones followed at 68 percent. The most profitable items for most bakeries are cakes, cookies and bread are also very profitable for most businesses.

As for new and experimental products, their success tends to vary from one type of bakery to another. Specialty celebration cakes are very profitable for full-line retail bakeries, while gluten-free and vegan options are often very popular in smaller, independently-owned bakeries. Meanwhile, wholesale bakeries do incredibly well with new kinds of bread such as kale rolls and more savory varieties.

The Conclusion:

Overall, it’s clearly staple items that make the most money for most bakeries, but specialty items cannot be counted out. As we said before, they are often what attracts new customers and gets them in the door of most bakeries. They show up for the fun new items, but it is the cakes, cookies, bread, and donuts that keep them coming back for more. Specialty items also do well for smaller bakeries, especially in the age of social media and food carts. Small bakeries can set up carts or small stands and advertise what they have to offer to a large number of people through Facebook or Twitter.

So, what does this mean for a bakery? Mostly, it is proof that most staple bakery foods are still the backbone of most businesses. A baker’s innovative new mashup might grab people’s attention, but the classic cakes, cookies, and loaves of bread should never be ignored. Not only are they what makes the most money for bakeries and bakery distributors, but they can become the basis for those cool mashups and experimental products that often attract customers. All of this does require a sound marketing strategy if it is to work for a smaller bakery, but most companies should keep doing what they’re doing while including the occasional experiment when they want to grab people’s interest.

Are You Looking for a Bakery Distributor?

If you are looking for a great bakery distributor for your bakery, contact us here at Organics that Deliver. We offer the highest quality conventional and organic ingredients to professional bakeries and food manufacturers. We would love to help you with your business!


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