How To Run A Profitable Bakery Business In The UK

Running a profitable bakery business

The market size of the bakery industry in the UK is worth GBP 3.9 billion, and it is one of the major sectors of the food industry in the country. The bakery market is set to soar as the frenzied at-home baking during the pandemic has left the Brits with a craving for fresh bread, which is now expected to translate into spending at the retail level. In fact, the bakery and patisserie sector in the UK is leading in attracting cash from the consumers clocking a ~57% increase since the lockdown was lifted entirely.

So, it may seem that it is the right time to start a bakery business in the UK and monetize the current industry trends. But it is not as easy as it sounds, and you may face several challenges once you venture into the bakery business. To run a bakery profitably anywhere in the world, you need to be well-organized and acquire the ability to handle multiple tasks simultaneously. 

Are you now confused and not sure whether you will be able to manage a bakery in the UK? You don’t need to worry, as this article will tell you everything you need to know to run a bakery business profitably in the UK, and it will help you answer the above question once and for all.

Everything That You Need To Know To Run A Profitable Bakery Business In The UK 

You can run a profitable business in the recovering UK bakery industry by employing the right marketing strategy and setting realistic revenue targets. You will have to plan all the different aspects of the business to stay ahead of the competition and generate healthy profits from your bakery business. Here is a list of things you should know to operate a profitable bakery business in the UK successfully.

1. Pricing the Product Right

Based on the scale of operations, there are three major bakery types – artisan creations, local scale, and national level. Typically bakeries tend to produce goods or volume commensurate to their size. For instance, an artisan bakery takes much longer to prepare a single cake because the baker needs time and effort to design a cake at the request of an individual client.

So, it is imperative that you know exactly how much you can produce on any given day or week because you can price your offerings based on that. As such, you should also control your operating costs based on your production capacity and expected profitability. Please note that the right price can only pull the right kind of demand, resulting in higher profits.

2. Controlling the Cost of Ingredients

Firstly, you need to determine whether the quality or volume of the ingredients drives your operating costs. Based on the outcome, you need to develop a strategy to control the cost of ingredients to a reasonable and sustainable level. One of the ways to keep track of your ingredients is to manage your inventory efficiently, preventing any last-minute restocking or excess volume. In this way, you can avoid wastage that ultimately saves on your operational costs.

3. Research Your Competition

You must research your competitors and their menu to understand what it is that they offer, but you don’t and vice versa. This will help you develop a plan to beat the competition by offering something (either product or service) that they don’t provide. In this way, you can attract customers willing to pay more for your bakery items as there will be no substitute for them. But don’t get carried away and over-price your products just because the customers can’t find them anywhere else. Optimum pricing will result in the maximisation of profits.

4. Reduce Bakery Wastage

Short shelf-life and leftovers result in a large volume of wastage in the bakery industry, leading to monetary losses. Many bakers have started to take the issue seriously and are already exploring different innovative approaches to manage the problem. So, it will be great if you also embrace some techniques to cut down wastage, improving your profitability. For this, you can educate your customers on the adverse impacts of waste on our environment and set up a spillage-free baking process to prevent any wastage during baking.

5. Recruit Adequate Staff

Depending on the bakery type, you have to recruit professionals who have a proven track record in the baking industry. Although baking is the core activity of your business, you will also need people for other activities, such as taking orders, washing dishes, etc. Finally, you need to estimate the amount of money to be paid in salaries and check your bakery is generating enough revenue to cover the employee expenses and make a decent profit.

6. Leverage the Social Media

Social media is the best place to reach out to a large volume of people in a matter of a few clicks. So, you must create business pages on all social media platforms, such as FacebookYouTubeInstagram, and Twitter. You also need to ensure that pages are updated regularly so that your consumers remain well-informed about your bakery. You can share attractive images of your bakery items and take reviews or feedback that can help you improve your operations. All these can result in increased reach, which means higher revenue and more profit.

7. Invest in Bakery POS Software

It is essential that you get excellent bakery POS software that can support you in managing your business. The POS software will help you handle the central kitchen, online ordering, menu management, tracking products, customer data management, etc. A robust POS software will improve operating efficiency, reducing expenses and increasing profitability. In short, it will make the business process smoother, faster, and more profitable.

This article has touched upon the essential details you need to know to run a profitable and successful bakery business in the UK. You just have to follow the tips mentioned above, and you are good to go.

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Daniel McCarthy is a seasoned restaurant consultant and serves as the Communication Manager at Restroworks, a prominent F&B SaaS company. Drawing from his vast knowledge of leveraging innovative technological solutions, Daniel excels at enhancing restaurant operations and revenue, thereby contributing to the ongoing transformation of the industry.


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