Bakery Construction: How To Build A Bakery In 6 Steps [2025]

Building and opening a bakery is an exciting business venture, but the path from concept to grand opening requires careful planning and execution. With the right approach, you can create a space that meets health and safety requirements, delights customers, and supports efficient operations.

Better yet, the bakery industry boasts huge gross profit margin potential. In fact, Orderly reports that bakeries have one of the lowest cost of goods sold (COGS) of all restaurant types, usually in the mid-teens to high twenties. Additionally, Spherical Insights projects the bakery industry to grow 4.45% each year from 2022 to 2032.

So, to help you build your own bakery and take advantage of these positive market trends, let’s explore all of the essential elements of bakery construction, from developing a financial plan to assembling a skilled team.

Whether you’re opening a grab-and-go bakery or a sit-down café, this guide will help you bring your vision to life and set the foundation for a profitable business.

Key takeaways

• Plan thoroughly to avoid costly delays and ensure your bakery meets health, safety, and operational standards.

• Budget wisely, accounting for permits, materials, labor, and equipment, while including a contingency fund for unexpected expenses.

• Choose the right location by evaluating foot traffic, accessibility, and building infrastructure to support your bakery’s needs.

• Assemble a skilled team of architects, contractors, and consultants with expertise in bakery or food service construction.

• Streamline operations post-construction with tools like Toast’s POS system to manage inventory, track sales, and improve customer experience.

Why is planning essential for bakery construction?

Underestimating the complexities of bakery construction can result in costly mistakes such as poorly planned kitchen layouts, insufficient electrical capacity, or overlooked permits. For example, not having enough ventilation for your ovens could lead to health code violations or fire hazards, causing unexpected delays in opening.

Proper planning addresses these issues before construction even begins. By investing time into detailed planning, you can:

• Identify potential bottlenecks early, such as long lead times for specialized equipment.

• Avoid budget overruns by having a clear financial roadmap.

• Ensure your space is optimized for both customer comfort and operational efficiency.

• Mitigate expensive change orders and rework during construction.

• Keep your project on track, reducing costly delays.

• Avoid permit denials or resubmission delays.

Bakery construction vs. other commercial construction

Bakery construction involves unique considerations that differ from standard retail or restaurant builds. For instance, health department regulations are stricter due to the nature of baking, where temperature control, ventilation, and sanitation are crucial. 

Additionally, bakeries require specialized equipment like proofers, ovens, and mixers, which you need to account for in your design. Some industry-specific construction considerations for your bakery include:

• Health codes: Unlike typical commercial kitchens, bakeries need to maintain precise temperature zones, requiring specialized HVAC systems.

• Fire safety: Ovens and other high-heat equipment necessitate specific fire suppression systems, which you should integrate early in the construction process.

• Accessibility: Some local building codes require bakeries to include ramps, wider doorways, and clearly marked exits to ensure customer safety and accessibility.

How to create your bakery construction plan

A well-thought-out bakery construction plan ensures your build is efficient, cost-effective, and compliant with all necessary regulations. Follow the steps below to discover all the essential considerations you’ll need to make during this process.

1. Create your financial plan

Establishing a clear and realistic budget is crucial for keeping your project on track. Costs can vary widely depending on your bakery’s type, location, and scale, but your budget should typically account for:

• Permits and licenses: These costs depend on local regulations and can range from a few thousand to tens of thousands of dollars.

• Labor and materials: This category covers everything from construction labor to essential installations like flooring and wiring.

• Equipment: High-quality baking equipment such as ovens, mixers, and proofing cabinets can be a large expense, especially for full-service bakeries.

Besides construction expenses, there are a lot of other bakery startup costs to manage as well. To ensure you’re prepared, consider implementing these tips:

• Obtain multiple quotes: Solicit bids from at least three contractors and suppliers to compare pricing and ensure you’re getting competitive rates.

• Plan for a contingency fund: Set aside 10% to 15% of your total budget to handle unexpected expenses like hidden structural issues or material delays.

• Leverage financing options:

  • Apply for small business loans using a solid bakery business plan to secure funding.

  • Investigate grants for sustainability initiatives or local sourcing efforts.

  • Consider leasing equipment to conserve upfront capital for construction-related costs.

Remember, a solid financial plan not only helps you anticipate and control costs, but also gives you the flexibility to handle unforeseen challenges during your bakery construction.

2. Find the perfect location

Your bakery's location is one of the most important factors in its long-term success. Choosing the right space requires balancing financial considerations with operational needs. When evaluating potential locations, be sure to consider:

• Building infrastructure: Confirm that the space can handle the demands of a bakery, including adequate electrical capacity, plumbing, and HVAC systems. Renovating older buildings can increase costs, so factor this into your decision.

• Foot traffic & accessibility: Spaces near schools, offices, or public transit hubs often attract steady customer flow. Conduct market research to ensure there’s a demand for your bakery in your desired location.

For example, Insomnia Cookies Flagship Bakery in Philadelphia is located right next to City Hall, an area with lots of foot traffic. Their central location also allows for convenient delivery access across the city. Tom Carusona, Insomnia's chief marketing officer, said:

"We try to follow our customers as they grow up… You graduate from Penn State and move to Manayunk, so there's a store there now. Locations where you have Gen Z living and late-night districts clearly connect with our brand."

Leasing vs. owning

You should also give careful thought to whether you plan to lease or purchase the building. Leasing offers lower upfront costs, but it may include restrictions on construction and renovations. 

Meanwhile, owning provides full control over the property and greater construction flexibility. However, it also typically requires a larger initial investment and ongoing maintenance responsibilities.

Utilities

Lastly, it’s crucial to ensure that your location meets the unique utility demands of a bakery, including:

• Power supply: Verify that the electrical system can handle high-energy appliances like large ovens, industrial mixers, and refrigeration units.

• Water lines: Confirm there’s adequate water supply and drainage for dishwashing, handwashing stations, and sanitation needs.

• Ventilation: Check for proper ventilation and hood systems to safely manage heat, steam, and odors from baking equipment.
  
  

3. Build your bakery construction team

The right team can make a huge impact on turning your bakery vision into reality. Focus on hiring experts with proven experience in bakery or food service projects, such as:

• Architects: Seek professionals skilled in food service layouts to design a space that optimizes kitchen workflow and enhances the customer experience.
  
  Example: After collaborating with Wrocław-based architectural studio Znamy Się and architect Paweł Tatar, Woda Bakery Club was voted the most beautiful cafe in the world.
  
  

• Contractors: Choose contractors with a track record of delivering food-related projects on time and within budget. Check references and verify their understanding of health and building codes.

• Commercial kitchen consultants: These specialists design efficient kitchens that minimize labor costs, streamline operations, and meet regulatory requirements.

For additional expertise, consider hiring consultants to refine your bakery’s design and functionality:

• Interior designers: Create a welcoming, brand-aligned atmosphere using durable materials that withstand spills and heavy foot traffic.
  
  Example: Spanish design studio Plantea Estudio created the interior design for Acid Berlin, a bakery in Germany. Commenting on the design, the studio said, "It is simple and austere, practical and functional, like the city but in no small measure warm and welcoming, bold and spontaneous like its inhabitants.”
  
  

• Lighting experts: Ensure your bakery has proper lighting to enhance its aesthetic appeal, showcase products, and improve workspace functionality.

• Acoustical consultants: In busy bakeries, noise reduction can create a more pleasant environment for customers and staff.
  
  

4. Design your bakery layout

Your bakery design directly impacts both operational efficiency and the overall customer experience. To optimize your layout, be sure to divide your bakery into functional zones in both the front- and back-of-house. For example:

• Kitchen design: Plan distinct areas for baking, prep work, storage, and cleaning. This organization minimizes movement and reduces bottlenecks during peak times.

• Front-of-house: Create an intuitive flow for customers by designing separate zones for ordering, pick-up, and seating. Ensure the layout reduces congestion and makes navigating the space easy.

Additionally, it’s important to adapt your layout based on the type of bakery you’re opening:

• Grab-and-go bakeries: Cater to customers seeking quick service with efficient ordering counters, self-service stations, and minimal seating. Compact layouts maximize space for speed and convenience.
  
  Example: Krispy Kreme focuses on quick service with a streamlined menu consisting of donuts and coffee. These bakeries typically have limited seating, and some feature drive-thru options.
  
  

• Sit-down bakeries: Create a welcoming atmosphere with comfortable seating, cozy lighting, and thoughtful décor that reflects your brand. Design layouts to encourage customers to relax and enjoy their experience.
  
  Example: Maxi B’s in Greensboro, NC features a large, upscale dining area, in addition to offering online orders for pickup or shipping.
  
  

5. Obtain permits and maintain compliance

Though it may seem daunting, navigating the permitting process is a critical step in bakery construction, often requiring significant time and attention to detail. However, a strong understanding of local regulations and proactive planning can help you avoid compliance issues.

Make sure you secure all the permits required to meet local, state, and federal regulations, including but not limited to:

• Health department permits: Comply with sanitation standards, such as proper ventilation, handwashing stations, and food storage requirements.

• Fire safety approvals: Include fire exits and alarms in your plans to adhere to fire safety codes and protect both staff and customers.

• Building permits: Submit detailed construction plans as early as possible to avoid delays or the need for revisions during the approval process.

Though obtaining permits can sometimes take awhile, consider building positive relationships with inspectors and officials to fast track the process. Additionally, lean on the insights and knowledge of your team, including architects, contractors, or consultants who are well-versed in your municipality’s specific requirements

6. Manage your construction schedule

A well-managed construction schedule ensures your bakery project stays on track and within budget while minimizing unexpected delays. Setting realistic timelines and maintaining clear communication are key to success.

Typically, you should plan for the entire process to take anywhere from four to twelve months, including permitting, construction, and inspections. General timelines can differ depending on the type and design complexity of the bakery you’re building:

• Quick-service bakeries: Typically takes four to six months; focused on streamlined layouts and quick service.

• Full-service bakeries: Usually, requires six to twelve months to account for detailed design elements, customer seating, and a more elaborate ambiance.

Set specific milestones for each phase of the project, such as demolition, utility installations, equipment setup, and final inspections. 

Additionally, communication is crucial for keeping everyone aligned on progress and goals. To communicate effectively, consider holding weekly check-ins with members of your team to address issues, review timelines, and make adjustments as needed. 

Remember, while it’s tempting to rush, doing so can lead to costly errors and delays.

Maximize efficiency after bakery construction

Building a bakery can be incredibly rewarding and profitable, but it requires careful planning, collaboration, and attention to detail. From creating a solid financial plan to navigating permits, each step plays a vital role in helping you avoid delays, stay within budget, and create a space that customers love.

However, managing the operational side of your bakery doesn’t end when the construction wraps up! To maximize the efficiency and profitability of your new bakery, it’s essential to integrate tools that streamline day-to-day operations.

Toast’s POS system for bakeries is specifically designed to help you manage inventory, track sales and analyze costs, and improve customer experience—in one easy-to-use platform. 

Be sure to check out all of the features to discover how Toast can help you make the most of your new bakery build-out.