How much money do you need to open a bakery?
According to the preliminary plan, opening a bakery in a rented premises will require an investment of about 970,000 rubles:
- Cosmetic renovation of the premises - 150,000 rubles.
- Purchase and delivery of a turnkey bakery - RUB 350,000.
- Purchase of raw materials and materials – 70,000 rubles.
- Approvals and permits, obtaining declarations of conformity for products – 150,000 rubles.
- Business registration and other organizational expenses – 50,000 rubles.
- Reserve fund – 200,000 rubles.
Step-by-step plan for opening a bakery
At the start of a baking business, the plan provides for the following actions:
- Conduct marketing research on the intracity market for bread and bakery products;
- Find sources of project financing;
- Search for suitable premises for a bakery;
- Work out preliminary product sales channels;
- Register business activity;
- Conclude a rental agreement for the premises;
- Make appropriate repairs;
- Purchase main and auxiliary equipment;
- Hire staff;
- Work out the recipe for bread and bakery products;
- Start a business.
Documentation
To open a bread production enterprise, you should start, traditionally, with registering an individual entrepreneur or LLC. It is more advisable to choose an individual format: the market for bread and bakery products is very friendly to small and medium-sized businesses.
However, such friendliness does not exclude agreement with inspection authorities, which very strictly monitor compliance with all regulations. Specifically, we are talking about Rospotrebnadzor, the fire inspectorate and the SES.
- Rospotrebnadzor. The Supervisory Service imposes strict requirements on water supply, electricity, ventilation and sewerage systems. Thus, electrical power must exceed 40 kW, the presence of hot and cold water is mandatory (technical water is prohibited). A workshop, warehouses and utility rooms, a locker room and shower for workers, and a bathroom should be provided. Each room has unique requirements. For example, the walls of the workshop area must be painted or coated with a water emulsion. The basement or basement is not suitable for placing a bakery complex. Preliminary conclusion of contracts for the removal of waste and garbage, for treatment against rodents, with public utilities is required. Based on the results of the inspection, Rospotrebnadzor issues a license to operate.
- SES. The sanitary-epidemiological station checks all kinds of standards: storage of raw materials, production and storage of finished products, equipment, finishing, availability of sanitary records for workers, etc. If all hygiene requirements are met, the SES issues a permit.
- Fire Department. Checks the security of wires and cables, the presence of fire alarms and fire extinguishers, the width of the fire exit, etc.
It is also advisable to obtain a certificate of conformity from Rosstandart, which guarantees the safety of the product for the consumer.
Product Description
Our bakery plans to produce the following types of products:
- Pan bread (0.5 kg) – 150 pcs.
- Sliced loaf (0.3 kg) – 180 pcs.
- Bagels (0.3 kg) – 100 pcs.
- Pies with filling (0.2 kg) – 1200 pcs.
The production volume will be 400 kg per shift (8 hours). The bulk of the products will be baked during the night shift in order to ship hot bread to retail outlets by the morning. The bakery will operate seven days a week on a shift schedule (2/2). The average selling price for bread and bakery products will be 44 rubles per kilogram. Thus, the daily turnover will be 17,600 rubles, and the monthly turnover will be 528,000 rubles. For all types of manufactured products, a declaration of conformity will be received, indicating that the product is prepared in accordance with all norms and rules and does not contain GMOs or other prohibited additives. Without this document, stores will not be able to sell products.
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Initial capital
How much money will it take to create a modern bakery? The level of capital investment depends on the planned production volumes. For example, to open a small bakery shop with a production volume of 350 kg of bread per shift, you will need approximately 200 thousand rubles.
To open a larger workshop, you need to invest much more money, because serious volumes of baked goods production will require powerful and expensive equipment. In addition to technical equipment, you need to think about renting premises, setting up a business, and training employees.
Selecting a room
To organize a business, it is planned to rent a premises with an area of 115 square meters. Rental payments will amount to 60 thousand rubles per month. The high rental price is due to the good condition of the premises. All conditions for the production of food products have been created here, and the layout and composition of the equipment meet the requirements of SES and fire safety. There is hot and cold water supply, a ventilation and sewage system, the walls and ceiling are painted with non-toxic paint and partially tiled. The dimensions of the room allow it to be divided into a production workshop, a warehouse for finished products and a warehouse for raw materials (flour), a staff room, a toilet with a bath and a utility room.
Difficulties of doing business in this area
The main difficulties of the project in the production of bakery products seem to be high competition and the need to quickly respond to changes in consumer demand. Just 20-30 years ago there were not very many varieties of bread products, so it was quite easy to satisfy consumer demand. Moreover, in the Russian outback there were queues for ordinary bread. But now the situation is completely different.
In any city bread kiosk you can count a dozen different types of bread, not to mention other products. It will not be possible to surprise with the production of just a few types of products.
Another important point is the desire of local authorities to regulate the cost of these products as the most socially significant. Such attempts to intervene on the part of the state have a negative impact on production. And although in 2020 a number of such decisions of federal subjects were declared illegal by the Antimonopoly Committee, a stable trend is still visible.
Just look at neighboring Ukraine, where the state is making progress in this direction. But this led to the fact that 2/3 of bakeries went into the shadows, otherwise they are forced to close. As a result, everyone loses - the producer, the consumer and, in fact, the state itself.
Bakery instead of bakery
Why start with small bakeries? Firstly, such a project makes it possible not to make large investments. The company will be able to feel the needs of the market by producing a small amount of products, thereby reducing the risks of operating at a loss to zero.
Secondly, a bakery is a more flexible structure that can quickly adapt to current demand and find new niches that are not occupied. In a plant where the entire process is highly mechanized, any change will require serious effort on the part of the staff. And this means time, labor and financial losses.
For small and medium-sized businesses, it is recommended to focus on organizing a bakery. The project is more mobile and competitive, and does not require very large investments compared to a plant.
How profitable and advisable is it to open a bakery? The answer to this is given by the fact that among European countries Russia is the only one in which bread delivery is organized to some regions and areas. As a result, part of the population only knows about hot bread by hearsay, since it comes to them already cooled.
Preparatory work and search for premises
Before you invest, you need to work hard to identify customer needs. You will have to collect information in different places, but most of all you will have to work with sellers who have direct contact with consumers and can point out the items that are in greatest demand.
After collecting this information, you can already make a list of the expected assortment. It is best to do a test baking first and put it on the market. This will provide an opportunity to carry out trial measurements. If a niche is found, recipes for all planned products must be certified.
Certification of each product that will be brought to market is mandatory. This procedure made it unnecessary to obtain a license and increased the requirements for the quality of bakery products. It is important to know! The certification procedure can take up to three months, so this is what you need to start with before starting production.
As soon as the issue with the product range is resolved, you need to start looking for premises. In this case, you need to consider the following points:
- Will the products be sold from the bakery itself or are they planned to be transported to retail outlets?
- What equipment will be purchased for the enterprise?
If the sale will be carried out directly from the bakery, the premises must be “pass-through” and located in a place with a large crowd of people. When planning to sell products from retail outlets, the premises can be moved to any area of the city or beyond, but then transportation costs must be taken into account.
As for equipment, its minimum set will require an area of about 100 m2. This kit includes:
- proofing cabinet;
- molding and dough mixing machine;
- bake;
- rounder;
- sift flour.
In the case when all this equipment is purchased as a single complex, the size of the room can be significantly smaller - up to 60 m2. It is important to know! In addition to certifications, the arrangement and location of the enterprise will have to be coordinated with the SES and the fire service. According to the standards set by the SES, bread cannot be baked in basements. In addition, the enterprise must ensure the presence of:
- running water supply;
- staff toilet;
- ventilation systems;
- warehouse for storing raw materials.
Please note that the workshop in which the products are baked, the packaging workshop and the warehouse must be located separately from each other.
What investments will be required?
The minimum set of equipment included is indicated above. It will cost 4 million rubles and more. The stove will cost 600 thousand rubles and more. Good brands from foreign manufacturers cost around 1 million rubles and more. For example, German stoves cost over 2 million rubles. But such models are resistant to high loads and are capable of producing up to 1.5 tons of finished products per day.
In addition to production equipment, you will also need commercial equipment. It includes:
- cash machine;
- showcase;
- cabinets designed for storing products;
- a safe in which documents and cash will be stored;
- furniture and household equipment.
For all this you will have to spend about 200 thousand rubles. Renting premises (industrial and commercial) will cost 50-80 thousand rubles. per month. You will immediately have to pay at least three months - 140-240 thousand rubles.
If delivery is implied (and in most cases you cannot do without it), you will have to buy a Gazelle, and that’s another 350 thousand rubles. Taking into account unforeseen expenses and repairs of the premises, initial costs can reach 5-5.5 million rubles.
How to organize work?
Once the preliminary work has been carried out and test measurements have been made, which will show the level of demand for certain bakery products, all that remains is to recruit personnel for bread production and establish sales. Both tasks are not as trivial as they might seem at the very beginning.
A baker cannot be a simple person from the street. Carrying out the task assigned to him requires professionalism, the work is very difficult, and the pay is low. A baker receives a salary of 18-25 thousand rubles. The salary level is the same for a technologist who controls the production process.
All you need:
- baker - 2 people if production is carried out during the day, and 4 people - if at night;
- technologist - 1 person;
- packer who controls the absence of foreign objects in products - 1 person;
- loader - 1-2 people;
- cleaner - 1 person;
- driver - 1 person.
The wage fund (WF) will be 150-200 thousand rubles. per month. Having recruited staff and launched production, it is worth already having ready-made retail outlets for sales. It is not at all necessary to open them yourself, although this will only help promote the project and increase the profitability of bread production. We are talking about concluded agreements with chain markets, supermarkets and other retail outlets. You can try to sell products through kiosks, but they, as a rule, are opened for some existing production of bakery products; they do not need competitors’ products.
Implementation must be taken very seriously. It would be a mistake to think that the smell of hot fresh bread itself will sell it. This is true if you need to sell only 50-100 kg of bakery products per day. But if you need to sell 1.5 tons or more, smell alone will clearly not be enough - marketing and more marketing.
To open your own outlets, it is not necessary to rent a kiosk or open a store. You can reduce the cost of this process and organize trade from wheels. A specially equipped bread van can be rented or leased, which will reduce the cost of business development.
Hidden moments
Despite the fact that bread is always in demand, its consumption in Russia has decreased significantly to 250 g per day per person. Just a few decades ago, this value was three times higher. This is due to the abundance of different food products, which indirectly compete with bread production.
In addition, large cities and the capital are simply oversaturated with this production, they are home to dozens of factories and hundreds of bakeries. Taken together, this led to the fact that the profitability of this business dropped from 50% to 7-15%. This means that with monthly costs of 400 thousand rubles, the owner will make a net profit of 40-70 thousand rubles.
A way out of this situation may be to search for solutions that will organize the sale of a large number of products. Selling from wheels is just one of these solutions.
Experimenting with recipes and purchasing cost-effective equipment can all significantly increase profitability, but such decisions must be made at the project planning stage.
What equipment to choose for a bakery
For baking bread and bakery products, the business plan provides for the purchase of a set of equipment with a capacity of 50 kg of finished products per hour. It is planned to spend about 350 thousand rubles for these purposes. The kit will include:
- Bakery oven KhPE-500 (40 thousand rubles)
- Proofing cabinet ShRE 2.1 (22 thousand rubles)
- Flour sifter PVG-600M (24 thousand rubles)
- Dough mixer MTM-65MNA 1.5 (63 thousand rubles)
- Ventilation umbrella ZVP 10*8 (9 thousand rubles)
- Single-section washing bathtub (3.5 thousand rubles)
- Pastry table SP-311/2008 (17 thousand rubles)
- Wall table SPP 15/6 ots – 2 pcs. (9 thousand rubles)
- Scales CAS SW-1-20 (4 thousand rubles)
- Rack SK 1200/400 – 2 pcs. (17 thousand rubles)
- Trolley for HPE TS-R-16 – 2 pcs. (45 thousand rub.)
- Hearth sheet for CPE – 12 pcs. (7 thousand rubles)
- Bread form 3L10 – 72 pcs. (41 thousand rubles)
This equipment fits in an area of 30 square meters. m. and is intended for baking wheat bread, rye-wheat hearth and pan bread, bakery products from yeast dough. This equipment will allow you to perform all the necessary operations for preparing raw materials and directly baking products:
- Sifting and loosening flour;
- Kneading dough;
- Cutting and shaping dough pieces;
- Proofing the workpieces in a proofing cabinet;
- Baking bread and bakery products in the oven.
Bakery Marketing Plan
The products are planned to be sold to retail outlets and public catering outlets in our city. There are about 300 such organizations in the city. To be more precise, wholesale buyers will be:
- Specialized trade kiosks and pavilions selling bread, baked goods and confectionery products;
- Intracity retail chains (grocery stores);
- Cafes and restaurants;
- Municipal institutions (hospitals, schools, kindergartens).
A sales representative will be hired to conclude contracts with potential buyers. In the future, with the development of production, it is planned to open our own retail outlets selling freshly baked bread and bakery products.
What does it take to open a bakery from scratch?
Bakery space
Probably, the premises can be considered one of the key factors in opening your own mini-bakery. At the initial stage, it is best to find a room that is ready for work, into which it will be enough to bring the appropriate equipment.
As an acceptable option, we can talk about renting premises for a bakery on the premises of a store or home. To do this, you will need to conclude a joint activity agreement. The benefit is that if you have a contract with the owners, you will be able to agree on mutually beneficial terms - otherwise it will be difficult to establish understanding.
A great idea would be to enter into a long-term lease.
Among the requirements for the bakery premises is its area of 60 m2. However, the location of the rented premises is much more important.
Finally, there is no way to do without logistics (parking, access points, distance to sales, etc.). And of course, you will need to take into account the location of your competitors.
Equipment
When choosing equipment, it is worth clearly defining the strategy for the business plan for opening a mini-bakery. In other words, your main objectives and competitive advantages are product quality, flexibility in the production technology of bread and bakery products, flexible work hours and a wide range of products. Based on the chosen direction, equipment is selected in accordance with the demand for individual parameters.
So, let's decide on the necessary equipment. Foreign analogues will cost much more than domestic equipment. Let’s say that German ovens for baking bread have a price tag of 30 thousand euros and above. However, the capabilities of this equipment are much wider - they are more reliable and durable. The most popular brands in this case are Metos, Bongard, Giere, which have proven themselves to be reliable and multifunctional.
It is worth noting that used equipment for a mini-bakery will significantly save your budget.
In addition to ovens, one cannot do without dough sheeters, dough mixers, flour sifters and other related equipment. Don’t forget about banal packaging machines or scales.
How much does equipment for a mini-bakery cost? For example, when producing up to 0.5 tons of products daily, the purchase of imported equipment will cost 60 thousand euros (minimum). Production equipment will cost from 100 thousand dollars. Domestic production options will be significantly cheaper.
Recruitment
Naturally, without qualified personnel, the operation of a bakery is impossible.
If you take a mini-bakery, then production of up to 350 kg of products requires 3-4 full-time employees. An increase in production to 2.5 tons per day will cost 7 people on staff.
Equipment suppliers in most cases train future employees to operate the supplied equipment, but they will not be able to teach how to bake bread/buns. To do this, for the vacancy of a baker-technologist, it is still better to hire an educated master, at least with minimal practical experience. Remember that your reputation is on the line.
Estimated product range
The current bakery market is constantly looking to expand its product range. At the same time, guidelines are inclined towards environmentally friendly and healthy food.
Over the past 10 years, Western recipes have partially replaced traditional varieties of baked goods. The taste preferences of ordinary people make their own adjustments to production.
Croissants, baguettes, croutons, ciabattas, and crispbreads are in increasing demand . The standard of pan bread, Moscow loaf, bran or Borodino loaf were defeated in this struggle for the consumer. However, in the hands of a master, you can try to bring the demand for domestic brands out of the crisis.
How to open a cafe from scratch: step-by-step instructions for entrepreneurs.
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What is needed to open a confectionery shop? Where to begin? What to buy? How many workers will be needed? Find answers to these and other questions here:
Financial plan
Let's move on to calculating the main business performance indicators. Monthly expenses of the company
- Rent – 60,000 rub.
- Salary – 135,000 rubles.
- Insurance contributions to the Pension Fund and Social Insurance Fund – 40,000 rubles.
- Raw materials and ingredients (20% of revenue) – RUB 105,000.
- Utility bills – 20,000 rubles.
- Accounting (outsourcing) – 8,000 rubles.
- Advertising – 15,000 rub.
- Fuel and lubricants – 25,000 rubles.
Total – 408,000 rubles.
How much can you earn by opening a bakery?
According to the business plan, net profit per month will be 102,000 rubles. The profitability of the bakery is 25%. Such indicators can be achieved only if 100% of all products are sold. In practice, the situation may be different (returns, deferred payments, etc. are possible), so the final profit can be safely reduced by 25 - 30%. But even with this calculation, you can count on a return on investment within 13–15 months of the enterprise’s operation.
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Rent
A rented building for the production of bread must contain the following premises: a production workshop, a utility room for storing raw materials, a warehouse for storing finished products, a restroom, staff rooms, a sales area, and a small administrative office.
The optimal building area is 120 m2. The rent for such an area will be approximately 65,000 rubles per month, and the cost of utility bills will be around 35,000.
It must be remembered that the requirements apply not only to indoor spaces, but also to outdoor environments. In summer it is necessary to carry out landscaping, and in winter it is necessary to clear approaches. Timely and regular waste removal must be organized.
What documents are needed to open a bakery?
First, you need to register as an individual entrepreneur, select a form of taxation and provide Rospotrebnadzor with a certificate of commencement of activity with a certificate of registration.
You can use an LLC as a legal form, but an individual entrepreneur will be cheaper and easier to register and list the necessary documents. In addition, it is necessary to conclude agreements on disinfection, disposal of industrial waste, develop a production control program, documents confirming the maintenance of ventilation systems, medical examination of personnel with the issuance of sanitary certificates. Professional business plans on the topic:
- Bakery business plan (22 sheets) - DOWNLOAD ⬇
- Pastry shop business plan (16 sheets) - DOWNLOAD ⬇
- Business plan for a dumpling shop (14 sheets) - DOWNLOAD ⬇
Legal issues
Owning a business related to food production requires special permits. To start a bakery, you need to obtain licenses and permits for the production of bakery products. These documents are prepared by local SES authorities, the metrology department, the fire inspectorate, and the expert environmental commission. Fire department permits can be obtained through routine inspection of the quality of the furnace installation and the presence of adequate fire protection, such as an overhead sprinkler system.
Only after receiving all the documents can production begin. You must keep all these permits in plain sight so that your establishment’s customers can be confident in the quality of the products offered. In addition, employees must have health certificates with permission to work in the food industry.