Do You Own A Custom Cake Bakery? Question...

Business By bittersweety Updated 28 Feb 2013 , 5:53pm by jason_kraft

bittersweety Posted 28 Feb 2013 , 1:48pm
post #1 of 6

hey all,

 

So some of you may know based on my previous posts that I own a semi full service bakery (cakes cupcakes are special order but i have pastries, cookies, sweet rolls etc out daily)...anyhooo, for a while nowi have been wanting to switch format and become a custom cake bakery only.appointment only.  i live in a small town and although the townsfolk love my pastries, the walk in traffic just isn't high enough to justify all the work and $ that goes into buying all the ingredients and long hours involved in making the pastries every day.  the sales from walk in customers are just enough to cover my bills..and i mean JUST enough.  id feel bad closing to public traffic but i really want to be abe focus on weddings and special order cakes and cupcakes only. that is my true passion.  so, my question is, how many of you own custom cake bakerys only and do you have enough business from that to stay open? i have two larger cities on either side of me that i advertise to.

 

just need to know if custom cake bakerys really work.  do you rely on internet and phone orders only, or do you stay at  your bakery during the day in case you have a customer walk in to order or to discuss their wants/needs?

 

thank in advance!  i really need the advice!

5 replies
jason_kraft Posted 28 Feb 2013 , 3:11pm
post #2 of 6

AIn most cases it is easier to be profitable with a custom order bakery, since you don't have the additional overhead of a storefront, stocking inventory daily, and manning the shop during business hours.

If you don't already have a business plan you should put one together ASAP that looks at the costs and anticipated revenue for both your current storefront and a custom order shop. It usually makes more sense to start with a custom order shop first, and expand into a storefront if and when you hit a critical mass of revenue.

bittersweety Posted 28 Feb 2013 , 3:48pm
post #3 of 6
Quote:
Originally Posted by jason_kraft 

In most cases it is easier to be profitable with a custom order bakery, since you don't have the additional overhead of a storefront, stocking inventory daily, and manning the shop during business hours.

If you don't already have a business plan you should put one together ASAP that looks at the costs and anticipated revenue for both your current storefront and a custom order shop. It usually makes more sense to start with a custom order shop first, and expand into a storefront if and when you hit a critical mass of revenue.

good to know...unfortunately in my state we can;t have home bakeries, and i do really love my little shop. its so cute and really adds a little something when i have tastings. the brides always love it.  Im just hoping that by not being here all the time that utilities would be less, and by not having to buy tons of ingredients for my every day pastries that my bills will be considerably less.  i wouldnt mind having a home bakery if it were an option because i know it is better as far as finances and overhead are concerned, but unfortunately its not an option for me. so many factors!!! argghhh

JimmyBoombats Posted 28 Feb 2013 , 4:00pm
post #4 of 6
Quote:
Originally Posted by bittersweety 

hey all,

 

So some of you may know based on my previous posts that I own a semi full service bakery (cakes cupcakes are special order but i have pastries, cookies, sweet rolls etc out daily)...anyhooo, for a while nowi have been wanting to switch format and become a custom cake bakery only.appointment only.

 

thank in advance!  i really need the advice!

 

Hello Sweety,

 

You only want to stick with cakes? By your post you are already making custom cakes or just basic cakes? If just basic, how often are you asked to make a more advanced cakes?

 

Just trying to understand, Jimmy Boombats

 
bittersweety Posted 28 Feb 2013 , 5:14pm
post #5 of 6
Quote:
Originally Posted by JimmyBoombats 

 

Hello Sweety,

 

You only want to stick with cakes? By your post you are already making custom cakes or just basic cakes? If just basic, how often are you asked to make a more advanced cakes?

 

Just trying to understand, Jimmy Boombats

i do makes cakes of all kinds. nothing too crazy yet because most people in town just view me as the bakery lady :) but yes, i do do weddings and other cakes. i am working on my advertising to the surrounding bigger towns so that they know i'm here and that i'm not just the cinnamon roll chick :)

jason_kraft Posted 28 Feb 2013 , 5:53pm
post #6 of 6

AHave you looked into a rented commercial kitchen? They allow you to pay by the hour so there is much less overhead. Some shared kitchen facilities have space available for consultations, or you can use a coffee shop, your own home, or the customer's home.

Having your own shop for consults is definitely nice to have, but you need to look at how much extra time and labor it's costing you, and how much value it adds in terms of closing the sale.

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