Cost of Opening a Bakery

POS System for a CaféIf you are interested in owning your own business and baking is your bliss, opening a bakery could be the perfect venture for you! Bakeries have become increasingly popular in recent years; in fact, bakery-cafés are experiencing one of the highest market-share growth rates of all limited-service restaurants in the country. So strap on your apron, gather your recipes – and make certain you have enough funding that your business will thrive. Bakeries are some of the most affordable restaurants to open, but you will still need to have significant capital reserves to ensure your success. The estimated cost of opening a bakery ranges from $121,000 to $600,000 or more, depending on a number of factors. Answering a few simple questions will give you a better idea of the specific bakery start-up costs you will face:

Will you open an independent or franchise bakery?
Franchise fees for bakeries run from $25,000 to $38,000, depending on the particular franchise you choose. On top of the initial up-front fee, you will also pay an ongoing royalty fee, generally 5-7% of your revenue each month, national marketing fees, and other fees as specified. Many franchisors also require their franchisees to have substantial financial resources on hand, such as a net worth of $500k to $1 million, with liquid capital of $100,000 or more. Opening a bakery franchise will provide you with an established menu, proven business model, and the advantage of name recognition, opening an independent bakery may be a much more affordable option if you are on a limited budget.

What type of bakery will you open?
Bakeries come in all shapes and sizes, from tiny kiosks serving a single signature snack to large bakery-cafés offering everything from Panini to petit fours. If you are planning to open a retail bakery, you will need a storefront to showcase your wares: real estate costs, including leasehold improvements, can range from a low of $6,000 for a kiosk to as high as $224,078, if you will be opening a large bakery-café with a generous amount of seating. You also have the option of starting your bakery as a wholesale business selling to local restaurants: you can rent the use of a commercial kitchen at a much more affordable price, or even use your own personal kitchen to prepare your wares.

What menu items will your bakery offer?
The type of tasty items your bakery offers will determine the specific equipment costs you will face. All bakeries need certain standard equipment such as mixers and ovens, but there is a great deal of specialized equipment to consider, such as proofers, kettles, conveyors, and more. Bakery equipment costs generally fall between $65,000 and $191,320; your total financial outlay will depend on your specific equipment requirements.

Bakery start-up costs can swiftly add up, but Calypso is here to help with the most affordable bakery POS system on the market! Calypso’s POS for bakeries is easy to learn and use, with simple, department driven screens and a single screen order to pay solution that will keep your bakery lines moving swiftly. With an employee time clock and labor scheduling, optional tracking of recipes, inventory and ingredients, and gift-card and loyalty programs to build a loyal customer base, Calypso has all the features you need to manage your bakery business. Contact Calypso today at 800-771-7100 to discover more ways Calypso’s best bakery POS system can help your new bakery become a profitable success!

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