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While many avenues of the restaurant industry are highly competitive, there seems to be infinite space in the market for pastries, desserts, and bread. When people need a treat, they need a treat — and they often flock to bakeries to get one.
Baked goods can be created from only a few ingredients, but they require masterful technique. Baking the perfect loaf of miche, frying churros to perfection, and building a perfectly set and balanced French entremet can take years of practice.
Once you've figured out what kind of bakery you'd like to bring to life, it's time to get down to brass tacks and write your bakery business plan.
The executive summary is the first section of any business plan. As an introduction and summary of your vision for the restaurant, this section includes information about products, consumers, and the team. A basic outline of the business’s path to success and financial plans is also found in the executive summary.
We’ll share business plan writing tips that will help you attract attention and build a compelling executive summary.
How to Write a Bakery Business Overview
A business overview is an introduction that “hooks” the reader – it should provide just enough description of your bakery to get the reader interested in learning more about the business plan. Include an outline of the ownership structure, location, type of restaurant, and customer experience in the business overview.
This section might also introduce key members of your team and a staff training and retention plan. Potential investors will want to see not just that your business plan is exciting but also that it is sustainable.
Finally, paint a detailed picture of the restaurant’s brand. In addition to written descriptions, use branded graphics, sample color schemes, and photos of the style of decor you imagine. Show readers that you’ve considered all the details.
What Menu Items Will the Bakery Serve
The kind of bakery you want to start influences a lot of other decisions. Continue the executive summary by outlining the products that your bakery will serve. In this section, work to capture the imagination of potential investors – you’ll have a chance to impress them with your business savvy later in the restaurant summary.
How will you balance the competing pull of in-store purchases with the demands for catering? How can you layer additional merchandise and retail revenue streams on top of your food business? The origins and inspirations of your menu are selling points for your brand.
The kind of food your bakery serves is directly related to the restaurant’s concept. Include information about what makes your concept and menu unique. Investors will want to be sure that your restaurant fills a gap in the market.
Who will be the Target Consumer
Competition in the food industry is fierce, which makes finding a unique niche imperative. Potential investors will want information about how your restaurant stands out in the market.
Build a few customer personas – describe a few potential customers using market data about the demographics, characteristics, and behaviors of diners. Then, describe how your restaurant will cater to those guests.
How can you use your location aesthetic and food presentation as a marketing tool for your business? How can you optimize your bakery’s product to be worthy of an Instagram post?
It’s cliche but “location, location, location” is the song of good business–even the best business plans will struggle to find footing unless they cater to the locals. Make decisions for your business based not only on local tastes but also on the local economy. Describe how your menu’s price point is accessible to the target market.
Who are the Key Management Team Members
Restaurants can’t run without people, and you can’t do it all yourself. Write a concise description of the critical roles in your business’s management structure. Describe how bakers and pastry chefs are integral to your restaurant’s success.
If your business relies on the talents of a specific chef or the skills of an operations manager, include descriptions of those people (and their qualifications) in this section. If you still need to hire for key roles, describe the hiring and retention strategy for the highly-skilled labor your restaurant needs.
What are the Bakery Success Factors
What does success look like for this restaurant? What contingencies have to go your way? What are the risks of your business model? Having concrete goals and knowing what obstacles stand in the way will impress potential investors.
What does your growth model look like for the first year? How dependent is your success on attracting new customers every month or getting more regular spend from customers who frequent your bakery multiple times a week?
It might seem better to avoid writing about potential pitfalls in your bakery business description. But, showing investors that you have a plan to succeed and that you know how to overcome setbacks lets readers know that you’re serious about the business.
What is the Bakery Financial Plan
The executive summary of your restaurant’s business plan should also include an overview of the financial plans. Answer common questions that investors and banks will need, such as how much funding you need to raise, loans and lines of credit you’ll rely on, and how long it will take for the business to become profitable.
Calculate and report on the upfront fixed costs of opening your restaurant. These are the costs that you know you’ll have to keep up with to keep the business afloat, such as equipment, maintenance, and loan repayments.
Then, give investors an idea of the variable costs per month. Things like labor, raw materials, marketing, and merchandising costs are likely to change from month to month. Provide a range of the total variable costs per month.
In a later section of the business plan, you’ll provide different reports and financial projections. For the executive summary, focus on the broad strokes of your financial plans. Answer questions like how you plan to raise startup funds and potential profit margins based on projected sales.
Writing your Bakery’s Executive Summary
Writing about finances can be a challenge–here’s how you can make the details of your restaurant’s finances an interesting read.
Always keep the audience in mind. Use some of the financial vocabulary introduced in this article and write for your potential investors.
Find your voice. As the first section, the executive summary is about making an impression. Investors are often just as interested in your business savvy as the strength of your business plan. Infuse your unique vision and voice into your writing style.
Keep it simple and clear. It's tempting to throw in lots of clever flourishes when writing, but clarity should be the number 1 priority, especially when discussing financial details.
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DISCLAIMER: This information is provided for general informational purposes only, and publication does not constitute an endorsement. Toast does not warrant the accuracy or completeness of any information, text, graphics, links, or other items contained within this content. Toast does not guarantee you will achieve any specific results if you follow any advice herein. It may be advisable for you to consult with a professional such as a lawyer, accountant, or business advisor for advice specific to your situation.