This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

A Dozen Hot Tips for Starting a Bakery

Buy used. A bakery requires a lot of equipment, like commercial-size mixers, ovens, racks, sheets and refrigerator, just to name a few. Keep start-up costs under control by buying as much used as you can.

Feng Shui it. You don't have to hire a feng shui expert, but you should consult a spacial planner when designing your bakery. Experts say flow is important, from the moment your customer opens the door, looks at the case of goodies, orders and pays. There should be no traffic jams. Grove is spending $15,000 to create his new flagship shop.

Kitchen organization is also essential as it affects production. "People sometimes don't leave enough space for proper storage," explains Casaceli, who is also owner of Manhattan's Milk & Cookies Bakery. "Storage is very important because inventory is important. People waste a lot of money on inventory because things are not stored properly, or they don't know where it is. If you don't make it obvious for employees, they are not going to go the extra mile to look for it. They'll simply order more; it's not their money."

Government issued. Like all food businesses, bakeries must have permits and subject themselves to health department inspections. And in the case of New York City, someone in a kitchen needs a food handlers license. "That license has to hang in the kitchen," says Connolly, "and if that person is not present when that inspector comes, they will shut you down."

How much will it cost? Starting a bakery is no cakewalk. It can run you up to $200,000. Rent, labor and ingredients are expensive. Not surprisingly, upscale is the way most bakeries are going. But given the current economic slowdown, price can be an issue. "When the money is flowing, if it costs 50% more, it's OK because it's organic," says Kalupa. But now when it's a matter of gas for their car vs. organic, customers will opt for gas. "If Starbucks and Whole Foods is off 20% -- and that's the number we've been off too this year -- we're starting to see the effects of a bad economy on the organic market."

So open a bakery only if you will not let anything stand in your way. "There are many road blocks," says Alan Furman. "But you can't let yourself consider the possibility that it is not going to work. If that is not your personal characteristic, then I am not sure if it's the right thing for you to do. There is so much competition. You have to believe in yourself."

Got a story idea? Email

Lan Nguyen is a freelance writer based in New York City. She has written for the New York Daily News, The Wall Street Journal, Worth magazine and Star magazine.
4 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $123.43 -0.65%
FB $83.48 0.57%
GOOG $551.35 -0.69%
TSLA $184.10 -3.30%
YHOO $45.21 1.70%


DOW 17,693.38 +15.15 0.09%
S&P 500 2,058.59 +2.44 0.12%
NASDAQ 4,877.2240 +13.8620 0.28%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs