How To Start a Bakery Pop Up Business: 10-Step Guide [2024]

Dreaming of starting your own bakery but feeling overwhelmed by the costs and commitment of a traditional storefront? A bakery pop-up could be the perfect solution! This flexible, low-cost business model allows you to showcase your baked goods, connect with customers, and test your concept—all without the long-term investment of a permanent location.

In fact, the pop-up industry is booming, with Vox reporting that the number of pop up restaurants in the United States increased by 105% from 2021 to 2022 and by 155% from 2022 to 2023. Better yet, one analysis projects the specialty bakery market to grow 5.29% per year between 2023 and 2028.

However, launching a pop-up bakery also comes with unique challenges. So, in this article we’ll explore all the essential elements of how to open a bakery pop up business to help you navigate these difficulties and make the most of these trending markets.

Key takeaways

• A bakery pop-up business is a cost-effective way to showcase your baked goods without the high overhead of a permanent storefront.

• Pop-ups allow you to test new recipes, adapt to seasonal trends, and choose locations that align with your target audience.

• Success requires careful planning, including a detailed business plan, proper permits, and a well-curated menu.

• A cohesive brand identity and active marketing—especially on social media—are vital for communicating with, attracting, and retaining customers.

• A bakery pop-up can serve as a stepping stone to a full-time bakery or remain a flexible, seasonal business that aligns with your lifestyle.

What is a bakery pop up?

A pop-up bakery is a temporary setup that offers bakers a flexible, cost-effective way to showcase their products and connect with customers. 

Unlike traditional bakeries, pop-ups operate for a limited time in various locations, such as markets, events, or shared spaces. This dynamic model allows bakers to adapt their offerings to seasonal trends, test new recipes, and collaborate with other businesses. 

By strategically choosing high-traffic areas or niche markets, your pop-up bakery can maximize visibility, build brand awareness, and create memorable experiences for your customers.

Pros and cons of starting a pop-up bakery

Starting a pop-up bakery comes with a unique set of advantages and challenges. Understanding these factors can help you decide whether this model aligns with your goals.

Some of the pros of starting a pop-up bakery include:

• Low startup costs: Avoid the high rent, financial risk, and overhead of a permanent space.

• Creative freedom: Experiment with recipes, rotate menu items, and adapt your offerings based on customer preferences.

• Built-in marketing appeal: The novelty of a pop-up sparks curiosity and naturally lends itself to engaging social media content.

• Location flexibility: Move to high-traffic areas, seasonal hotspots, or special events to maximize exposure and sales.

• Proof of concept: Test your products, pricing, and branding without committing to long-term leases or large financial investments.

• Customer insight and feedback: Gain direct feedback from customers to refine your recipes, improve your offerings, and identify bestsellers.

• Brand building: Use the pop-up format to establish your brand, grow your online presence, and build a local following.

On the other hand, the drawbacks opening a bakery pop up are:

• Limited resources: Smaller spaces and equipment can restrict your menu and require creative problem-solving for storage and preparation.

• Profitability challenges: Unpredictable sales and temporary operations may create financial instability. Budgeting for variability is essential.

• Difficulty building repeat customers: Constantly changing locations can make it harder to foster customer loyalty and repeat visits.

• Heavy reliance on marketing: Pop-ups depend heavily on marketing, particularly social media, to keep customers informed about locations, hours, and special offerings.

How to start a pop-up bakery business

Starting a pop-up bakery requires a combination of creativity, strategic planning, and attention to detail. Whether you're an experienced baker or just starting out, following these steps will help you build a successful and memorable business.

1. Choose a pop-up bakery concept and location

The success of your pop-up bakery hinges on choosing the right concept and location. Both should align with your products, target audience, and brand identity. Popular formats and location types to consider include:

• Farmers’ markets: Showcase seasonal or artisanal baked goods to community-focused customers while emphasizing fresh, locally sourced ingredients.

• Collaborations with coffee shops: Partner with local coffee shops to sell pastries or desserts that complement their beverages, drawing in morning commuters or weekend crowds.

• Seasonal festivals and events: Test themed or holiday-focused baked goods in high-traffic environments filled with eager and curious customers.

• Holiday markets: Capitalize on the gift-shopping season with festive or gift-ready baked goods.

• Retail spaces or shopping malls: Take advantage of consistent foot traffic and high visibility to attract regular shoppers and build brand recognition.

For example, Eleven Madison Park’s Bake It Nice pop up was located at the edge of Madison Square Park. Not only is this located near their brick-and-mortar restaurant, but it’s also an area with high foot traffic.

When evaluating potential locations, it’s key to prioritize those that align with your target audience, have strong customer engagement potential, and offer manageable costs and logistics.

You can also stand out by offering unique baked goods. For example, Majdal Bakery’s pop up focused on Middle Eastern treats, featuring items like cherry labneh tart, talami, and mixed berry basbousa.

2. Understand legal requirements, licenses, and permits

Operating a pop-up bakery legally requires obtaining the right permits and meeting health and safety standards. Some key regulations you’ll likely need to pay attention to are:

• Food handling permits: Required for preparing and selling baked goods.

• Business licenses: Ensure your operation complies with local business laws.

• Health codes: Meet cleanliness and allergen labeling standards.

Consult your local health department early to navigate regulations and avoid surprises during inspections.

Additionally, it’s crucial to properly register your business to ensure you’re legally compliant and avoid operational delays. Key requirements include but are not limited to:

• EIN (Employer Identification Number): Necessary for tax filing and opening a business bank account.

• DBA (Doing Business As): Register your bakery’s name if it’s different from your personal name.

• Tax registrations: Confirm your local and state tax obligations for selling goods.

Organizing these documents from the start allows you to focus on building your bakery without administrative headaches.

3. Build your pop-up bakery menu and find suppliers

Craft a menu that highlights your unique products while being practical for a temporary setup. You should typically focus on:

• Crowd-pleasers: Feature items that are popular and easy to transport, such as cookies, cupcakes, or small loaves.

• Seasonal or limited-time items: Create excitement with exclusive offerings tied to specific locations or seasons.

• Balanced production: Select items that are manageable to produce within the constraints of your pop-up environment.

For example, Sen Bake Shop’s pop up kept their menu simple and streamlined while offering a selection of items catering to various tastes. Their menu included pineapple cake, chocolate coffee cake, granola, sugar cookie bars, and lemon poppy seed muffins

Once you know the items you want to put on your menu, you’ll need to establish partnerships with suppliers who can provide consistent quality and competitive pricing. Be sure to consider essential inventory needs like high-quality ingredients and eco-friendly packaging.

4. Develop your brand identity

Strong branding and marketing are essential for standing out, so it’s important to create a cohesive visual identity that includes:

• Logo and packaging: Reflect your brand’s aesthetic and make your baked goods instantly recognizable.

• Menu design: Ensure your menu is easy to read and visually appealing.

• Social media presence: Share updates on your pop-up’s story, locations, and product launches to build anticipation. Engaging with your audience online not only drives traffic to your pop-up, but also creates a loyal customer base eager to follow your journey.

One great example of a pop-up bakery with a great brand identity is Eizel’s Bakery in the South Bay. Not only do they concentrate on variations of one product, donuts, but they also incorporate their mission into their offerings. Eizel Mafnas, the owner of the pop up, said:

5. Make a financial plan

Successful financial planning is key to achieving profitability with your pop-up bakery. To stay on top of your numbers, be sure to pay careful attention to: 

• Cost estimates: Account for ingredients, packaging, permits, marketing, transportation, and event fees.

• Sales forecasts: Use realistic projections based on your pricing, production capacity, and expected customer volume.

• Cash flow monitoring: Track income and expenses closely to stay profitable, especially when dealing with fluctuating event fees or seasonal demand.

Ultimately, a clear financial plan is critical for ensuring your pop-up bakery operates efficiently, stays within budget, and achieves profitability.

6. Create a pop-up bakery business plan

Even for a temporary operation, a business plan is essential. It serves as both a roadmap and a pitch for securing locations or loans. Your plan should include:

• Executive summary: Provide a high-level overview of your bakery pop-up, highlighting your concept, mission, and goals. Describe what makes your bakery unique, such as artisan pastries, gluten-free options, or themed baked goods.

• Market analysis: Define your target customers, such as farmers’ market shoppers, festival-goers, or office professionals looking for morning treats. Analyze local competition to identify gaps you can fill, like offering vegan or seasonal baked goods.

• Menu offerings: Outline a practical, streamlined menu that reflects your brand and maximizes efficiency in a temporary setup. Include signature items like specialty cupcakes or croissants and add limited-time offerings to generate excitement.

• Operational plan: Detail the logistics of running your bakery pop-up, including locations, hours of operation, staffing needs, ingredient sourcing, and supplier relationships. Address potential challenges like weather impacts or seasonal sales trends.

• Marketing and branding strategy: Explain how you’ll attract customers and build your brand through social media, email marketing, promotions, and collaborations.

• Financial projections: Estimate your startup costs and ongoing operating costs. Project your revenue for at least the first year, incorporating seasonal variations and key metrics like your break-even point and profit margins.

Remember, a well-structured business plan will not only guide your bakery pop-up business’ development, but can also help you secure funding and partnerships. While pop-up bakeries have lower startup costs than traditional restaurants, you may still need funding for initial expenses. Some common funding sources include:

• Small business loans

• Crowdfunding

• Pre-orders or subscriptions

• Personal savings

• Loans from family and friends 

7. Craft an effective design

Your bakery pop-up’s design plays a significant role in attracting customers and making a lasting impression. To create an effective design, be sure to incorporate the following ideas:

• Eye-catching displays: Use creative signage, attractive product arrangements, and sample trays to draw people in.

• Branded elements: Incorporate your logo, colors, and packaging to reinforce your brand identity.

• Customer experience: Design an inviting, organized space that encourages browsing and purchasing.

An aesthetically pleasing yet practical setup is a great way to attract foot traffic in person, generate visibility on social media, and maximize the efficiency of your limited space.

8. Invest in the right point of sale (POS) system

A robust POS system is essential for running an efficient bakery pop-up and meeting customer expectations. For example, with Toast you can gain access to all of these features:

• Payment processing: Accept a variety of payment methods, including credit cards and mobile wallets, to provide a fast and hassle-free checkout experience.

• Cost analytics: Gain insights into your sales performance, track revenue trends, and identify your best-selling baked goods. Use this data to refine your menu, pricing, and overall strategy.

• Inventory management: Monitor ingredient levels in real-time and set automatic alerts for restocking critical items like flour, sugar, and packaging supplies.

• Loyalty programs and email marketing: Build customer loyalty with rewards programs for repeat visits. Leverage email marketing tools to announce new locations, special events, or exclusive menu items.

• Handheld POS: Equip your staff with mobile devices to take orders and process payments directly from the customer line.

• Payroll and staff scheduling: Simplify staff management with POS-integrated tools for creating employee schedules, tracking hours, and managing tips.

9. Hire and train your staff

With a reliable and well-coordinated team, you can help ensure your bakery pop-up operates smoothly, especially during busy events or high-traffic days. Here’s how to assemble and manage a team that reflects your brand’s values:

• Hire friendly, knowledgeable staff: Employ people who are approachable, enthusiastic, and passionate about baked goods. They should be able to engage customers, answer questions, and improve their overall experience.

• Defined team roles: Clearly assign responsibilities to each team member. Some roles might include setup crew, sales staff, customer assistance, restocking and maintenance. Depending on the size of your team, some employees may need to take on multiple responsibilities.

• Efficient operations: Train your team to work together, focusing on minimizing wait times, maintaining a tidy setup, and handling unexpected challenges with ease.

Ultimately, a strong team creates a welcoming environment, fosters positive customer interactions, and ensures your pop-up runs efficiently—making a lasting impression and encouraging repeat business.

10. Launch your bakery pop up

With all the planning and preparation complete, it’s time to open your doors and share your creations with the world! Be sure to implement the following tips to have a successful launch:

• Promote your opening: Use social media, email lists, and local networks to announce your pop-up location, hours, and other key info.

• Engage with customers: Make personal connections by sharing your story and encouraging feedback.

• Be adaptable: Pay attention to customer preferences and be ready to adjust your menu or operations as needed.

• Celebrate small wins: Acknowledge milestones like your first sell-out day or glowing customer reviews—they can help build momentum and morale.

Start a successful bakery pop up with the right tools

Starting a pop-up bakery is an exciting opportunity to share your passion for baking, connect with your community, and test the waters of running a business without the high costs of a permanent location. By carefully planning your concept, crafting a standout menu, and securing the right permits, you can set your bakery up for success.

Of course, it’s also essential that you have the right technology, like a comprehensive POS system, to streamline your operations and meet customer expectations. Fortunately, Toast has all the tools you need to start a profitable bakery pop up business.

To discover all the ways Toast can help you launch and run your pop-up bakery, be sure to check out all of the amazing features!