Business Overview

Bread is an affordable and convenient food that will always be in demand. It’s been a dietary staple for millennia, and it continues to be consumed by most people today. On average, the typical U.S. resident consumes 37.4 pounds of bread annually.

Bread bakery businesses are bakeries that specialize in making and selling different breads. Most offer a variety of artisanal and/or sandwich breads, which respectively account for 30.2 and 17.8 percent of bread sales in the country.

Who is this business right for?

Anyone who enjoys baking bread may like running a bread bakery business. 

This is a business that can be started as a part-time endeavor. Bread ought to be delivered soon after baking to ensure maximum freshness, so business owners shouldn’t plan on baking one day and delivering three days later. Business owners can, however, limit their deliveries to one or two days of the week.

For example, a bread bakery might start out only delivering on Saturdays. That would allow the business owner to bake on Friday nights.

What happens during a typical day at a bread bakery?

A typical day at a bread bakery business involves baking bread, which includes prepping ingredients, actually baking the loaves, and cleaning up equipment. Once baked, the bread is sold in person or delivered to customers.

In most cases, the baking activities start well before dawn so that bread is as fresh as possible.

What is the target market?

The target market for a bread bakery business is anyone who has some discretionary income. Almost everyone eats bread in some form, but people need some discretionary income to afford certain artisan or sandwich breads.

How does a bread bakery make money?

A bread bakery business makes money by selling loaves of bread. Loaves may be sold retail or wholesale.

What is the growth potential for a bread bakery?

The necessity to sell only fresh bread limits how large bread bakery businesses can grow. Most bread bakeries have a single kitchen where they bake, and they serve a defined geographic location. For example, Elmore Mountain Bread has a single facility (which isn’t open to the public). Ithaca Bakery has two locations, but bakes all of its bread at just one.