Back in the gloomy days of the 1970s, bread came in one variety: thin, white and sliced. Since then – thankfully – tastes have changed.
The giants, such as Allied Bakeries – who produce Kingsmill, Sunblest and Allinson, among others – may still cater for Britain’s unquenchable taste for sliced bread at low prices, but the country’s desire for speciality bakery products has never been greater.
While the tendency to buy bread in bulk from supermarkets and freeze it for later consumption is a challenge for independent bakeries, the chance to capture a market increasingly keen on a wealth of ethnic, continental and traditionally English products has never been more welcoming.
SPECIALITY PRODUCTS AND NEW MARKETS
French-style baguettes are just the tip of the iceberg. Ciabatta and rye bread are just two examples of 'speciality' bakery products that are taking over from the old-fashioned white loaf among large sections of the British public.
It is not just bread either. Other items, especially 'morning goods' such as croissants or rolls, are increasing popular – mainly because our busier lives mean fewer and fewer of us can spend time preparing a decent meal first thing in the morning.
More often, bakeries are grasping the opportunity to branch out into other, related markets. An espresso coffee machine is now frequently a fixture in a shop that might once have just sold loaves and cakes.
Given the right location, preparing lunchtime sandwiches is a more popular sideline which can be just as lucrative as the core bread- or cake-making business.
Of course, much has been made of the competition from supermarket bakery departments. It’s very difficult for independent businesses to compete for the mass market with the prices of mass-produced goods in such stores.
However, it is still perfectly possible for the high street bakery to produce unusual and high-quality goods at a price that will attract more pioneering customers away from the bread counters of Tesco and Sainsbury’s.
This is particularly true in affluent suburb, dormitory village and city centre locations where customers will often pick up sandwiches, breads and treats during lunchtime, in the morning or on the way home from work.
Tourist areas, too, offer opportunities for the sale of high-quality, speciality cakes and other recipes – which may often be sourced from locally-produced goods.
Wholesale
The retail business is just one side of the story. There are also a host of wholesale suppliers who provide local shops, hotels, restaurants, and sandwich shops with the whole gamut of breads and other bakery products.
Often both types of business will be combined in the one venture, but running a large wholesale business entails large overheads and will require substantial contracts in order to succeed. But there is no reason why a smaller wholesale line cannot complement a customer-facing business.
Unlike with some shops, customers’ impressions of bakeries are based very much around appearances and ‘feel’. You will no doubt remember the stories from a few years ago of supermarkets pumping the smell of freshly baked bread around their store as a way of encouraging custom.
Impressions
This need for good impressions extends to the look and feel of the shop. It must be absolutely spotless and staffed by immaculately turned-out and presentable individuals.
Display space is also vital. There must be plenty of room in which to show off the most attractive goods that the business produces.
In short, it is one sector in which location is vital to your success. Impulse buying is going to be a huge segment of your custom – unless, of course, you are targeting wholesale, in which case road access and loading facilities are paramount.
As always, what you sell should be perfectly tailored to the tastes of your potential clientele and the culture of the area in which you are based.
If you are targeting the wholesale market, you should be prepared to target potential custom via mailshots, tours or free samples.
While all this may sound like an attractive and interesting proposition – people are often more passionate about food than any other product – there are many reasons why bakeries are more difficult to run than businesses in other sectors.
The challenge
Firstly, it demands unsociable hours. Managers and staff will often have to work very early in the morning to ensure that the shop is ready for the early-morning rush.
It is also a business that is very rarely run without additional staff, mainly as a result of the long day, the complicated business of baking and the fact that demand will come in peaks and troughs. The shop could be empty for hours and then face a surge of custom at lunchtime.
If you are taking over a business with antiquated equipment, installing up-to-date facilities can be expensive. Bakery ovens can cost between £2.5k and £17k depending on size, while around £5k will be needed to purchase a display unit.
The cost of freehold and leasehold businesses varies hugely across the country, depending on location.
Given the right unit, this is a sector which – at the top end at least – looks set to grow and grow as Britain’s tastes become more discerning.
