Last Updated 05 Aug 2021

Business Plan For Bakery

Essay type Research
Words 2850 (11 pages)
Views 712
Table of contents


Starting a business involves planning, making key financial decisions, and completing a series of legal activities. It is an exciting proposition but it's also an incredibly challenging undertaking. A business plan however is an essential road map for business success amidst various challenges. This paper constructs a business plan for the opening of a bakery known as Annex House in Cardiff, Welsh.

Execitive Summary

Order custom essay Business Plan For Bakery with free plagiarism report


Annex House will be a small entrepreneurial startup bakery located in Roath Cardiff in Welsh.

Cakes, pastries, pies and special cupcakes will be offered in a variety of flavors for example (duck and pork hand pies, saffron coils, chocolate paper pie, chocolate ganache and classic brioche loaf amongst others). rostings, sizes, styles, toppings and decorations. The bakery will contain a luxurious huge seating area enabling customers to stop by in large numbers. Besides, Annex House will also provide a catering service to deliver large orders during huge events hence creating convenience for consumers. Compared to goods, the parameters of service quality are more complex and vary (Lewis 1989, p48).

Therefore a full- fledged understanding of customers' needs and expectations is a critical issue on the todays service rendering agenda. Being a bakery, the business will experience an extensive target arket because most people of all ages enjoy delicious cakes, pastries and pies not forgetting the fact that the products are low-priced items that are nearly affordable to anyone despite their varying levels of income hence keeping the target market large. In relation to the several product options, convenient services, and a broad target market, this bakery will be able to meet the needs of a wide number of consumers.

A companys website will be opened both on Facebook and twitter to create a platform for potential buyers. As stated by Gardner (2011, p4), product uality is critical concept in the food industry thereby Annex House will ensure product quality through the use of fresh ingredients, sale of specifically fresh cakes, pastries and pies and most importantly focus on cleanliness. Innovation being a goal for the company will be achieved through creating new flavors and frostings after every three weeks and offering them for a limited time.

Although the bakery will open as a single, overtime the business will strive to expand to a wider range of locations. Moreover, prices on the other hand will strive to be competitive with the industry for nstance costs and expenses will be calculated to provide the bakery with a minimum price option. As long as the industry prices are high enough to cover the calculated market opportunity in the neighborhood of Cardiff, the developing commercial capital will drive Annex House retail revenues of 73,500 euros in year 1, 146,250 euros in year 2, and 324,450 euros in year 3.

With an understanding the difficulties in establishing a new business, we plan to become cash flow positive on a monthly basis. Our financial plan is conservative with a focus cash flow, diverse revenue streams and prudence in considering risks. The plans of Annex House are intended to help the business thrive and become profitable. However through the use of financial analysis, customer surveys and market share comparisons, the bakery will be capable of determining which strategies are bound to boost the business (Gardner, 2011).

Evaluating the effectiveness of different methods of marketing, Annex House will learn what is needed for the company to become successful. The team and personnel that will make the vision of Annex House reality includes an experienced successful chef/entrepreneur, a bakery director, and several professional bakers.

History and Background

On todays market, there is unending variety of the most delicious cakes, pastries and pies that please both the palate and the eyes. We have become so accustomed to this diverse range of bread, mouthwatering pastries and cakes that seldom we ask Just how they came into existence.

Raised by my grandmother who was a renowned and excellent baker in the early 1990 in Orpington town, I spent many hours at the bakery closely watching her steps and later followed footsteps almost as a matter of course. I believe my initial interest in the origin of a baking industry was not caused by ccident but rather kindled by a chain of events occurring earlier in my childhood. Since then my baking experience has progressed and I do baking during my leisure time until recently when the idea of starting a bakery crossed my mind.

Over the years I baked for my extended family and friends but later I was motivated to extend my delicious products to the rest of the world as a passion and also as a source of income. The significant factor I considered crucial to the success of the bakery was the target market. People of all ages, children though adults enjoy delicious treats herefore are incorporated in the target market. Located in an area with high demographics, the services provided will be largely utilized by locals for large events and celebrations. Annex House will be able to rely on locals for more year-round business.

Market Research

Field Research

Annex House focuses sales in Cardiff with a population estimated by the Cardiff Unitary Authority to be 339,630 by end of March 2014. During the first three years of operation, the bakery plans to sell to immediate additional markets in Machen, Beddau, Marshfield, and Radyr increasing the market size to approximately 370,452. In doing so, the company will partner with local communities in those communities to sell Annex House products. Although Annex House will be among the only cupcake bakeries in Cardiff, Wales through observation, other bakeries and cake decorating business will offer competition.


A couple of other bakeries and cake decorators exist in the city for example Fabulous Welsh cakes bakery located down at the Mermaid Quay and Francesca's cakes located because of their unique ingredient of Chocolate Chip and Original lemon present in their cakes and the advantageous location in the new shopping area in Cardiff Bay hich is clearly pitched at tourists to the area with the emphasis on local gifts and products which include Welsh slate, Melin Tregwynt textiles, Earth Pure Skin Care Products, Welsh love spoons, books, traditional Welsh sweets, handmade chocolates and locally made Jewellery.

Their attitude and professionalism is accommodative and genuine to their customers increasing their numbers although they experience some drawbacks when it comes to dealing with foreign customers especially in terms of language which may lead to disagreements and customers' dissatisfaction. However, in regard to pricing Welsh cakes are expensive. In terms of delivery time, Fabulous Welsh Cakes takes a little more time as compared to Francesca because of the traffic in the area due to presence of many tourists in the area.

Their payment terms on the other hand are immediate. In dealing with different competitions from such bakeries, Annex House will ensure unique dining experiences customers get to enjoy when they visit the bakery. These experiences consist of a novel and fun approach to taking customers' orders and an atmosphere that is fresh and friendly. At the point of sale each customer order will be recited in a form of song and other mployees will be encouraged to take this cheerful approach to the rest of the service.

This approach fits in well with the premise of cupcakes and I believe it will resonate well with the target of our customers. By engaging with audience from their first visit and from a young age, Annex House aims at creating lifetime brand ambassadors. Other sources of competitive advantage involve the use of fresh ingredients (including a secret ingredient which ensures cupcakes are moist and affordable) and the fact that the products are made fresh daily. Plans are also underway to open the bakery until 10-11 pm.

Very few others can achieve and maintain this balance between novel excitement and taste but the bakery is confident it will achieve this and will enjoy the rewards through ongoing profitability and success (Uhl, 2008).

Products or Service

Annex House will be a small bakery offering cakes, pastries, pies and special cupcakes. The business will be entrepreneurial with enough employees to assist the bakery run efficiently. A group of employees will be designated bakers who will prepare the delights in the kitchen whereas the remaining employees will take orders and fulfill the customers' needs.

A variety of flavors, frostings, sizes, styles, topping, and decorations will be available at the bakery. To rise above competitors like Fabulous Welsh cakes, Annex House will offer several options to satisfy common health and diet needs for customers. Whether required by allergies or simply by choice, a desire for gluten-free, organic, naturally sweetened, reduced fat and vegan foods has risen. Therefore by baking and offering cakes meeting these requests, more consumers will feel welcomed to the bakery their needs are recognized and satisfied.

The bakery will have a luxurious lounge area open to any customer llowing them to stop in and sit thereby motivating them to taste the delights of Annex House. It will also provide a catering service designated for deliveries of large orders for events such as birthdays and weddings hence providing a significant convenience to customers. The location of Annex House which is around 6. 1 miles competition. The bakery will be established out on a store front on the citys main street making it easily visible and accessible to new and potential customers.

Legal Obligations

As stated by Lily et al (2011, p 6). Starting a bakery is not as easy as it sounds and to uccessfully run the business, one has to comply with local laws and comply with food safety laws specific to I-JK before running a bakery. Annex House providing both retail and wholesale, will require specific license and permits. Public liability insurance for the bakery will be acquired to ensure policy cover for instance legal liability in the event of injury to a customer or an employee in the course of work or property damage due to negligence (Smith, 2011).

Although public liability is not mandatory at this point, the bakery will have a policy in place in case of any mergencies. Moreover Annex House will consider employers and product liabilities.

Business Aims and Objectives

Annex House in future will intend to adapt through marketing and technology to sustain our modern edge to be customer friendly as possible and provide the best vegetarian restaurant in Roath, Cardiff. Our mission will be to nourish the community and make the world a better place.

Accomplishing and maintaining the aim and mission help enliven the bakery and enhance the wholesome spirit we want to project. These objectives are long term, ngoing and ever evolving as we grow and learn the bakery business. Below is a table showing a list of objectives Annex House hopes to achieve in three years.

To offer our community wholesome foods that are health friendly, satisfying, great tasting and worth every penny. To have our employees and customers feel ppreciated, supported and satisfied every time they come in. To remain connected to the community through participating in charities To have business comfortably support our employees' families in all ways possible. Core values on the other hand involve; Respectful curiosity which is the desire to learn about the values, beliefs and foundations that others stand on turns all fears into learning tools.

Integrity where we strictly follow our values which is reflected back to us in the people that are any form. Honoring spirit; when we strive to honor the true spirit in others, our spirits cannot help but grow. Generally, the intentions of core values are to allow business to grow and expand in different competitive markets. 6 Marketing Strategies In order to ensure product quality, this bakery will emphasize cleanliness and sanitation, use of quality ingredients, and will always ensure all cakes, pastries, pies and cupcakes are properly baked.

Innovations being an important factor in the growth of a successful business, the bakery will start offering a variety of options from simple flavors like chocolate and vanilla to more decadent ones such as red velvet and German chocolate cakes as well as different kinds of frostings, and umerous decoration styles for all types of occasions. However, to grow a business, it is important for Annex House to innovate their products. To achieve this bakery will continually work to develop and test new recipes for cakes and icings.

Doing so will allow the bakery to have more variety to offer for retail and wholesale and possibly attract new customers. Along with this Annex House will create a couple of seasonal cupcakes and cakes such as pumpkins during the months of autumn, or coconut lime throughout the summer which will only be available during certain times of the year. This will motivate customers to look forward to something new in upcoming months as well as increase business as customers splurge on cupcakes, pastries, pies and cakes they enjoy that are only around for a limited time. In addition this will increase sales (Blumenthal ; Kilo, 1988).

Customer awareness is a significant step in promoting a new business. Annex House plans to achieve this through various means prioritizing on a grand opening. The event will be promoted through flyers around the local Roath area in Cardiff, an advertisement in the newspaper, and hopefully through the word of mouth. At the grand opening, Annex House will offer free samples to give consumers a risk free trial of the tasty treats. Consumers will be able to taste an assortment of what the bakery has to offer allowing them to discover the delicious delights to indulge in.

These free samples will also contribute to the final aspect of successful promotion, moving the customer to make a purchase. One way to demonstrate public relations is though community involvement such as sponsoring and taking part in local events like sports and rodeos. This will not only show the business participation in community events but will also be an excellent orm of advertisement to increase consumer awareness. Donating baked delights for fundraiser and in charities will also be a way for Annex House to promote itself.

This will show the company's desire to get involved and help out the community which is exceptionally appreciated by community members. Public relations are therefore essential as stated by Sharon & Douglas (2004) for Annex House to be successful.

Sales Activity Plans

The marketing strategies Annex will use as stated in section (6) include newspaper activities, flyers, word of mouth and having a grand opening. The date already set for he grand opening in sub-section (5. 2) is on July 2014. Annex House plans to advertise itself in three newspapers; two within the locality of Cardiff and one outside the city.

For instance the bakery will team with South Wales Echo, a daily tabloid format newspaper that publishes latest news in sports, businesses, entertainment and book reviews to advertise on the place, products and services every Thursday for the seven Western Mail and Sun with the same cost and time period as South Wales Echo. Annex House also intends to publish flyers weekly for the first ten months to ensure sufficient circulation. Pricing and Production Cost Pricing is a major contributing factor to the overall success of Annex House.

Before it can open it will have to make multiple investments including the building it will work out of, equipment and supplies for baking, furniture for the seating area, a vehicle for catering services and costs of sales activity plan. Likewise the bakery will have continuous costs of supplies for baking, employee wages and any upgrades or repairs that may be required. In order to return investment and eventually earn profits, all these things must be considered when determining the price. The cost of imply making a cake, pastry, pie and a cupcake will be calculated.

The owner will also look into the employee wages as well as how much income is needed to return investments. Based on all these calculations, a business will develop an idea of a minimum price option. Later, the bakery will research the prices of comparable products of other similar business in the area such as Francesca cupcakes. As long as the prices of competitors are high enough to cover the costs calculated the bakery will opt for prices that are competitive with the industry (Reynolds, 2008).

Besides this will raise the number of customers and costs calculated will be covered hence minimizing threats. The bakery being a startup company will have few customers in the beginning but Annex House will not wait for customers come to them but instead they will go to them by holding grand openings, sponsoring charities and participating in community service. In relation to PEST analysis, the micro-environment in Cardiff will favor the bakery. For instance Cardiff, Roath has several buyers and customers for their products such as supermarkets, grocery stores, hotels chains and convenience stores.

Besides, the bakery will open online websites for advertisement and also to receive customer's orders. This expands their market target and ensures high distribution of sales. Annex House also intends to employee experienced and efficient staffs who will strive to meet the needs of the customers. In addition, the micro-environment factors in Cardiff are favorable to the growth and expansion of the bakery for example the booming economic activities in the city such as sports and entertainment.

This essay was written by a fellow student. You can use it as an example when writing your own essay or use it as a source, but you need cite it.

Get professional help and free up your time for more important courses

Starting from 3 hours delivery 450+ experts on 30 subjects
get essay help 124  experts online

Did you know that we have over 70,000 essays on 3,000 topics in our database?

Cite this page

Explore how the human body functions as one unit in harmony in order to life

Business Plan For Bakery. (2018, Jan 13). Retrieved from

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Save time and let our verified experts help you.

Hire writer