How Much Waste Is There?

Business By funfoodie2 Updated 25 Sep 2007 , 6:59pm by mgdqueen

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funfoodie2 Posted 25 Sep 2007 , 3:02am
post #1 of 6

I've always wondered for those that have true bakeries/pastry shops the following...

How much inventory do you typically carry?
How much do you actually sell?
How do much do you waste?
How long do you leave it displayed?
Do you discount or donate items that are close to expiring?

I know this will depend on location and client base, but maybe just give percentages that apply to your business?

5 replies
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indydebi Posted 25 Sep 2007 , 3:22am
post #2 of 6

I'm just logging into this thread because I'm curious about it. THese questions are precisely why I chose not to be a regular bakery. I don't want to make food "on spec" and hope I sell it. So I'm curious on what the reality is on this issue.

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leily Posted 25 Sep 2007 , 5:44pm
post #3 of 6

well I don't know about just a bakery... however I used to record the waste for a wal-mart bakery I worked in so this included bread/cookies/cakes/etc....

Our overall bakery goal was a throwaway of only 15-20% Most of the time we were right around 25-30%. We had to keep the shelves full though no matter whether the items sold or not. The throwaways were always higher right after we changed the products around (modular change) as we had to arrange them a certain way, after 3-4 weeks we could modify it to meet our needs for selling. As for the cakes, some weeks it was only in the 5% range and others it was a lot higher... we kept track of this every day and after a year we started to compare our sales... so after a couple of years you would be able to see when your good sale weeks vs. your not so good weeks are and what sold. it is a lot of paper work and learning in the first couple of years but after that it gets easier.

Not sure if this helped our not but this is what it was about 3-4 yrs ago in the w-m I worked in.

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chaptlps Posted 25 Sep 2007 , 6:34pm
post #4 of 6

leily, I totally agree, but they have it now so it's all computerized and you get a readout n scan the floor every day.
Cakes that were decorated in store though were considered bulk so they weren't scanned but all prepackaged items were.
The goal is to not have any "outs" (empty spots on the shelves) but also not to have so much inventory that you would cancel out any profits you were making.
We did inventory EVERY month in the bakery.
One of the other goals was to have just enough on hand so that you didn't run out before the next truck came in (every other day). That way your product is rotated consistently and you don't have a lot of back stock sitting in your cooler/freezer goin stale.
Most shelf life days were 3-7. Taking into consideration that the consumer would probably have the product sitting around for at least 3 more days. Products with perishable fillings (tres leches) would be 3 days shelf life. Donuts shelf life is one day.
On the expiration date we would take all those products and mark them down and put them on a reduced rack and at the end of the day we would record and throw away what was left.
Walmart discontinued donating to charities because of some unscrupulous people either bringing them back to the store to get full price refunds or claiming that they got sick and were going after the deep pocket.
Local bakeries are more able to donate because there is no real inclination to sue them. And they only donate those things that aren't as perishable. (bread, donuts, etc.)
Where I work now, cakes are made on a special order only basis, there aren't any in a display case for casual pickup. We tried that once and we got orders but no one bought the cakes in the display. So now we take pics of all the cakes we make and then let the customer order them. As for cookies and donuts, we bag up the ones left at the end of the day and sell them the next day as day olds and if there any left they are tossed. (usually not a whole lot left actually).
"Shrink" (it's called that because it "shrinks" your profit) is the number one profit killer. Whether it's out of date or defective or even five finger discounted, it'll eat the profit right up.
So it's very important to consider waste (or shrink)into your pricing and ordering.
Inventory is a fine balancing act of having just enough product on hand to not run out but to not have a lot of over stock either before the next delivery shows up.
I've said enough I think. I hope this helps ya hun.
Sorry, I don't have any percentages to give you. It's always based on your customers and you can record over a weekly or monthly basis as to what is considered a "good" day or a "bad" day. Or which month is good for cakes or donuts or whatever and which aren't as good and adjust your production that way.
Just write down the total sales amount for each day of the week
(donut = x amount, cakes = x amount etc.) Then for each month. You'll see trends and be able to order and produce procuct accordingly.
For example: Tuesdays around here (including the local wallymart) are traditionally the slowest day of the week.
But I am taking up way too much space here so I think I'll let someone else have a go.

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vickster Posted 25 Sep 2007 , 6:41pm
post #5 of 6

Well, I have to throw the small town perspective in. We have a couple of donut shops and a little cafe called the Cookie Basket. They start opening their shops about 6. They stay open until all their donuts are sold. Then they close. They've been around a while so they kind of know, but basically they're done around noon most days. If it's afternoon and you get a cravin' for donuts, you have to go to Walmart icon_smile.gif

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mgdqueen Posted 25 Sep 2007 , 6:59pm
post #6 of 6
Quote:
Originally Posted by vickster

Well, I have to throw the small town perspective in. We have a couple of donut shops and a little cafe called the Cookie Basket. They start opening their shops about 6. They stay open until all their donuts are sold. Then they close. They've been around a while so they kind of know, but basically they're done around noon most days. If it's afternoon and you get a cravin' for donuts, you have to go to Walmart icon_smile.gif




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