2017-12-05 00:00:00 Growing a Business English Explore ways to make your bakery more profitable. The bakery industry is competitive, and staying on top of pastry trends is a great way to... https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/12/Bakery-Owner-Making-Sale-Customer.jpg https://quickbooks.intuit.com/ca/resources/growing-business/make-more-money-bakery-business/ Ways to Make More Money in Your Bakery Business

Ways to Make More Money in Your Bakery Business

4 min read

Canadians love their baked goods, but that doesn’t mean they want the same old cakes, croissants, and cookies year in and year out. You can make more money in your bakery business by staying on top of pastry trends, being innovative when the situation calls for it, and harnessing the power of social media. Here are some of the best ways to make your bakery more profitable.

Reveal Nutritional Information

Sticky, sweet, rich. These are the characteristics that make baked goods so irresistible, but these days, savvy consumers want to know exactly what’s in their favourite treats. One way to draw customers into your store is to share your ingredient list. This makes you stand out, especially if your competitors haven’t caught on to the trend yet. Great places to put nutritional information are your menu, display case, or product packaging. You shouldn’t feel compelled to reveal secret ingredients like flavourings and proportions of certain ingredients that make a baked good unique, but customers appreciate it when they can choose a baked good or pass on it based on the presence or absence of fattening ingredients, such as eggs, butter, and sugar.

Offer Healthy Options

You might be wondering whether Canadians would go for healthy baked goods. Consider, though, that nearly half of Canadians feel some level of guilt when they don’t choose healthy options, says a recent survey by marketing research firm Mintel. So if you sell muffins, for example, consider offering low-fat, vegan, and sugar-free options. When you do this, you attract your customers who love regular muffins as well as their friends looking for alternatives. In addition to low-fat, low-sugar, and vegan options, you might also consider offering all-natural, high-protein, and low-carb alternatives to your most popular selections.

Choose Local Ingredients

“Locally grown” and “locally produced” are powerful marketing messages known to resonate with consumers. You can boost revenue by using locally sourced ingredients and letting consumers know about it. For a bakery, some of the ingredients you might source locally include butter, maple syrup, honey, eggs, cheese, and fruits. You can highlight your bakery’s use of local ingredients by offering seasonal items throughout the year. Think pumpkin and maple-flavoured treats in the fall and berry-flavoured treats in the summer to keep customers buying baked goods made with local ingredients year-round.

Adjust Your Sizes

Some consumers are reluctant to buy a slice of cake or even a standard-sized cookie. The causes may include price or worry about gaining weight. You can get these types of consumers to buy baked goods by offering your pastries in a range of sizes. Inspire hesitant consumers to take the plunge by adding smaller-sized baked goods to your pastry case. Consider stocking miniature-sized cupcakes, tarts and cookies, cake pops, and other bite-sized treats to encourage people who might just want a sweet taste to pop into your bakery and buy.

Use Innovative Packaging

Consumers are tired of clear plastic bags and white pastry boxes. Change up your packaging as an effective way to make your baked goods more visually appealing, which makes consumers want to buy them. If you have a big budget, order unique packaging from a specialty packaging company. If you have the time, consider making the packaging yourself. For example, you might make handmade packaging with recycled brown paper bags, glitter, food-grade markets, and ribbons. Handmade packaging is eye-catching and memorable, which is what you need to get repeat business to boost revenue.

Offer More Pie Options…

Pies are a perennial favourite across the provinces, so being known as the bakery that has pies all year long serves as a great way to make more money. Include popular pies in your selection list, such as pecan, flapper, maple, sugar, and apple. Even if you don’t offer savoury items, include tourtiere pie on your selections list to bring its fans in the door. Offer special savoury pies only on certain days of the week to highlight the presence of the stand-out item and build customer anticipation. This is an excellent way to sell out of a baked good fast.

…And More Holiday Tie-Ins

There are may more holidays and celebrations than Christmas, and you can boost revenue by making sure you have selections for all the major holidays and celebrations in your area. Be sure to offer baked goods for important holidays such as New Year’s, Valentine’s Day, Easter, St. Patrick’s Day, Victoria Day, and other days celebrated nationally and in the provinces. It’s a good idea to take to social media, such as Twitter and your business’s Facebook page, to let your followers and fans know you have unique baked goods and become known as the source for such themed treats.

Even though consumers prefer healthy options, it’s a good idea to keep some of your most decadent selections available. You still have clients who love the taste and texture of indulgent desserts, and when you upgrade your selections, you should keep them in mind. Remember that the key to making more money in your bakery business is to choose a few strategies and execute them well.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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