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How Much To Start a Bakery?

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Starting a bakery is expensive. You have the cost of renovations, equipment, inventory, furniture, fixture and more. The cost is going to vary from project to project and person to person as they have different abilities and finish desired. As I am asked this question quite often, so here are some averages to give you a bit of perspective on how much it will cost to start a modest bakery.

Renovations

Assuming you are renting, let’s look at some costs to get a building renovated to meet your needs. This is the area where your costs are going to vary the most. The best advice I can give if you don’t have friends or family that can help here is to get at least three bids per contractor needed (plumbing, electrical, etc.). There will be one cost that is way more that you could have imagined. Also if you are doing the work yourself it is going to cost you more and take longer than you figure. There must be a law written about this as I have seen it without fail on every project. Here are some ranges for you to expect if your location is not equipped properly. This cost could go much higher if your location has deficiencies, add bathrooms, office, etc.

Plumbing – Lines may have to be added or moved to accommodate your needs. If this is the case expect $2,000 – $5,000

Electrical – Higher capacity wiring, lighting and/or more outlets isn’t cheap to hire out. Expect $1,000 – $8,000 depending on how severe your upgrades are.

The pretty stuff – Painting, flooring, etc will need to be done to provide a welcoming atmosphere. Figure on $500 – $10,000 depending on if you need drywall work or desire nicer counters or floors.

Renovations Total – $3,500 – $23,000. This cost could go much higher in a building you own should you need to replace an air conditioner, roofing or fix the parking area.

 

Furniture, Fixtures & Equipment

The quality and size of the equipment will be determined by how big your bakery is going to be, how many customers you have forecast on a daily basis and, of course, the amount you have to spend. Buy too much equipment at the beginning unless you can afford it. You can always buy more later. To save money you can get good quality used equipment or can find equipment at auction which tends to go for $.10 to $.40 on the dollar. If you are buying used be sure to have a competent repair shop in close distance as broken equipment means no product to sell. Another option to save money on equipment is to lease it, which is especially good for dishwashers as they tend to break down the most in my experience and the leasing company will be the ones fixing it.

Big stuff – Mixers, ovens, fridges, etc – $3,000 – $20,000

Little stuff that adds up – Pots, pans, utensils, dishes, etc – $1,500 – $5,000

Counters, displays, tables, racks, sinks, etc – $2,000 – $15,000

Hood/fire suppression – $8,000 – $20,000

FFE Total – $14,500 – $60,000

 

Startup Expense

Licenses – $10 – $100

Organizational Structure – $50 – $500

Professional advice from accountant and attorney – $500 – $1,000

Office Supplies – $500

Inventory – $500 – $5,000

Working Capital to cover overages and short term slush fund – $500 – $10,000

Total Startup Expense – $2,060 – $17,100

 

Total Costs To Start a Bakery – $20,0600 – $100,100

Remember this is a minimum and your needs will vary, especially in regards to the renovation costs. Depending on the level of finish or the size you could easily spend twice this amount.