Interested in opening a bakery but need help creating a bakery business plan? Now’s the time, because the bakery industry continues to rise. Globally, the market is expected to jump from $504.78 billion in 2025 to $731.69 billion by 2032, and US bakery cafés alone pulled in $18.3 billion in 2024. Consumers are showing up with higher expectations too, and they’re more interested in healthier, high-quality options than ever.
Industry experts specifically identified “better-for-you” items featuring protein or fiber, as well as plant-based and gut health as snack and bakery trends for 2026. Unique flavors and textures, often featured on social media platforms like Instagram or in TikTok marketing, are also growing in popularity. Innovation, automation, and category expansion are all playing a huge role in this momentum.
So if you’re ready to turn your idea into something real, this guide shows you how to write a solid bakery business plan using a clear, beginner-friendly framework. Whether you’re looking for a simple bakery business plan template or want to walk through each section step by step, you’ll find everything you need below.
Once you’ve drafted your plan, create your website for your bakery business and learn more about Shopify’s tools for selling online and in person.
What is a bakery business plan?
A bakery business plan is a simple, structured document that outlines what your bakery will sell, who it will serve, how it will make money, and what you need to launch and grow. It acts as your road map from idea to successful, profitable bakery.
A good bakery business plan helps you get clear on the big stuff: your concept, your menu, your ideal customer profile, and how you’ll stand out in a crowded market. It forces you to think through your pricing, branding, staffing, operations, location, and the numbers behind everything, including startup costs and projected revenue.
This document is more than your startup plan or blueprint. If you want to get funding, partners, or support from lenders, your business plan proves you’ve done the homework. It shows you understand demand in your area, have a plan for reaching customers, and can operate sustainably. Your due diligence inspires others to have confidence in you and helps them see you as a good investment.
As you move through this guide, you’ll also see examples and prompts to use as a sample bakery business plan for structuring your own.
Bakery business plan template
A bakery business plan sample template is immensely helpful, especially if you don’t consider yourself a writer. When you start with a template, you see each section you need to complete. Templates can also offer prompts to help you figure out what to say and how to say it.
Our free business plan template gives you the framework you need to create a professional business plan quickly. It helps you analyze the market and understand how much time, money, and resources you’ll need to start a business.
Why you need a bakery business plan
- Objectively evaluate your business idea
- Build a blueprint for taking action
- Help raise capital
- Prepare for potential challenges
Not every business starts with a formal plan, but those that do usually have an easier road to success and a much clearer path to profitability. A strong business plan gives you direction, focus, and a way to make smarter decisions as you grow.
Writing a bakery business plan helps you do the following:
Objectively evaluate your business idea
Writing a business plan lets you examine your food business ideas without bias. Researching and documenting your ideas allows you to take a step back and see if there’s really an opportunity.
What makes your bakery idea unique? Who is your intended audience? Are there enough of them to support your business? Answering these questions sharpens your vision and identifies your unique selling proposition (USP)—or if it needs more work.
Build a blueprint for taking action
Your business plan serves as a road map for moving forward. Writing a business plan identifies the next steps you need to execute your idea.
Do you need a loan for equipment? A space to bake? A social media marketing strategy?
A business checklist spells out what you need to start your bakery business and what you’ll need to do to make it a reality. As you draft and check items off your list, refer back to your business plan to stay in sync with your original vision.
Help raise capital
A business plan helps you get capital, even if it’s a home bakery business plan. You won’t be able to secure funding for your business—whether from investors, lenders, banks, or even crowdfunding—without a business plan for your bakery.
Prepare for potential challenges
All businesses will hit a bump in the road at some point, and a business plan helps you prepare. Think through assumptions and potential risks, such as ingredients soaring in price, changes in consumer trends, or seasonal sales dips. This helps you plan ahead with solutions proactively.
In the bakery world, the challenges are real:
- Notoriously thin profit margins. Baked goods may sell well, but after ingredient costs, labor, rent, and waste, the margin squeeze can be very tight.
- Short shelf-life inventory. Perishables mean you’ve got to manage dough, fillings, and finished goods precisely or you’re left with a lot of waste.
- Seasonal peaks and valleys. Your peak demand might hit around holidays and events, but the rest of the year may be slow and unpredictable.
- High labor turnover. Early hours, skilled help, and sometimes inconsistent schedules make staffing a common operational headache.
A well-written business plan flags these issues early. You’ll map out how to protect margins (e.g., by controlling waste, negotiating ingredients), put in place inventory policy (first in, first out, portion control, special packaging), plan for demand swings (promo strategies, off-season products), and build a staffing strategy (training pipeline, flexible shifts, clear roles).
How to write a bakery business plan
- Executive summary
- Company overview and description
- Market analysis
- Business structure
- Products and services
- Customer analysis and segmentation
- Marketing plan
- Logistics and operations plan
- Pricing strategy
- Financial plan and projections
If you’re not sure where to start, a bakery business plan template makes the whole process easier and gives you a clear structure to follow.
This section walks you through the key components of a bakery business plan, such as what to include, why it matters, and how each part helps you build a profitable, sustainable bakery from day one.
1. Executive summary
The executive summary section of your bakery business plan summarizes the document and its contents.
Focus on your business’s core strength to draw in your reader. Keep it concise and to the point—you don’t want to lose your readers before they reach the meat of your baking business plan. Think about a hook to grab your audience’s attention.
Consider your target audience for your business plan and customize the executive summary to their interests. Are they more likely to be hooked by compelling data or an enthralling story or description? You might maintain a few versions of your executive summary to appeal to different readers, such as investors, lenders, or business partners.
The executive summary should be about a page in length and cover the following:
- Your brand
- What your bakery does
- What your bakery wants to do (your aspirations)
- The contents of the business plan (in the order it appears in the document)
- Why audiences should care
- Highlights most likely to surprise and/or excite readers
- What you sell and how it’s different from competitors (this is your unique value proposition, or UVP)
- Your customer groups (this may vary depending on whether you plan to open a brick-and-mortar shop, launch an ecommerce business, or both)
- Your marketing strategy
- Your current and projected financial state
- How much money you need to get started
- Who’s involved in the bakery (and any credentials or experience they bring)
2. Company overview and description
This part of your bakery business plan should drill further into your business idea.
Use this section to talk about how you chose your LLC name, the baked goods industry, and the niche you’ll occupy. For instance, you might plan on offering keto-friendly, gluten-free, or otherwise lifestyle-specific items; cakes; catering; frozen desserts; savory pastries; or a signature product line.
Cape Whoopies, for example, sells gourmet whoopie pies made in Maine. Its bakery business plan would highlight that specialty in the company description.
You’ll also want to include both a vision statement and a mission statement (yes, they’re different).
Your vision is the big-picture future you’re building toward. It should be aspirational and long-term. A bakery vision statement describes what you aim to do with your business. For example, “to become the go-to neighborhood spot for high-quality, wholesome baked goods made with local ingredients,” or “to make gluten-free baked goods so delicious no one can tell the difference.”
Your mission, on the other hand, is about what you do each day to move toward that vision. Usually, it’s more practical than a vision statement, so it might be something like, “We craft small-batch sourdough breads daily using traditional techniques and sustainably sourced grains.”
Your value proposition should also sit in this section. It sums up why people would buy from you instead of the bakery down the street. Maybe it’s your unique flavors, lightning-fast fulfillment, allergen-friendly menu, or iconic birthday cakes. It’s whatever you do really well and makes your bakery stand out from the competition.
Next, introduce your team, including key personnel and their salaries. The bakery La Monarca, for example, would identify its two founders, their roles, and any board members or early employees.
Finally, list your short- and long-term business goals. Your goals should be quantifiable and measurable. Aim for things like “sell 200 units a day within six months” or “secure a commercial kitchen lease by Q3.” Add timelines here so you have a clear road map to follow.
Read: Setting SMART Goals for Business Success
If you’re running a cottage food business or home bakery use this section to describe your model, including where you’ll bake, how you’ll handle licensing and local regulations, and how your setup impacts production volume, menu, and growth.
3. Market analysis
The market analysis section of your bakery business plan quantifies how big your potential market is and validates that there’s enough demand for your business. Consider exploring industry trends, local laws and regulations, gaps in the local market, and a competitive analysis to pinpoint where your bakery fits into the landscape.
When you’re evaluating competitors, look at direct competitors (e.g., other bakeries, cafés, patisseries, or specialty dessert shops selling similar products) and indirect competitors like grocery store bakeries, meal delivery services, or even coffee shops that offer baked goods as add-ons. Understanding both helps you see who you’re up against, what they do well, and where you can stand out with your own bakery.
You might also want to include a SWOT analysis, which identifies your strengths, weaknesses, opportunities, and threats. This gives you a clear view of your competitive position and the areas to lean into or improve.
4. Business structure
How your business is legally set up affects how much personal risk you take on, how you’re taxed, and how you can grow your bakery in the future. The two most common structures for small businesses on a budget are:
Sole proprietorships
If you’re starting small (like a home bakery or testing your recipes at local markets), a sole proprietorship could be the easiest option. It’s simple to set up and gives you complete control over your business. The catch is you’re personally responsible for any debts or liabilities.
Limited liability companies (LLCs)
An LLC is relatively easy to set up and it separates your personal finances from your business. So, if your bakery faces unexpected costs or legal challenges, it protects your personal assets. An LLC also gives you flexibility in how you’re taxed, which can be useful when your business grows.
This section of your business plan should outline which structure is most appropriate for your business and explain how you’ll structure it.
5. Products and services
In the products and services section, you’ll list which products and services you’ll sell through your bakery. You’ll likely sell something like cakes, cookies, chocolates, pies, baking kits, and potentially branded merchandise products. You’ll also want to consider other non-bakery items.
Dough Dealer, for example, doesn’t actually do any baking, so it doesn’t sell any baked goods. Instead, it sells kits with baking supplies online, as well as merchandise. You can do the same thing with a print-on-demand company.
Use this section to thoroughly explain your niche, how many different types of products you’ll offer, and if you plan to release limited-edition or seasonal items.
The Cake Bake Shop offers a variety of items in their restaurants, bakeries, and online, including Cake Bake keepsake ornaments. There are icons associated with the brand as well as tiny replicas of their signature cake flavors.
Catering can also be a great way for bakeries to earn extra money.
Cater corporate events with breakfast boxes and pastry platters, weddings with dessert tables or tiered cakes, or private parties with custom cupcakes and mini treats. Pricing can follow a per-person model, tiered packages, or a base-price-plus-complexity structure for custom work. It’s also common to set order minimums and charge separately for delivery, setup, and staffing.
If you plan to offer catering, outline it clearly in your business plan. Include what types of events you’ll take on, your production capacity, lead times, and any extra equipment or staffing needed for transport and setup. You can also map out partnerships with venues, event planners, or local offices, along with a simple revenue forecast based on average order value and expected monthly bookings.
Be advised: A lot of venues and institutions keep an approved vendors list, limiting the caterers allowed to cater events at their facility. Work with their events person to understand the criteria for inclusion.
6. Customer analysis and segmentation
The customer segmentation section of your bakery business plan should discuss the different groups of shoppers or personas you intend to target with your bakery. Include the following information about each of your segments:
- How old they are
- Where they live
- Where they work and what they do
- Education level
- Hobbies
- What technology they use
- Their values, beliefs, and opinions
- Common behavior patterns
- How they shop
For example, Levain serves a few distinct geographic markets in Puerto Rico, including San Juan, Aguadilla, Mayagüez, and Rincón. Each of these regions represents a specific customer segment for the bakery, and they may have different shared characteristics. So Levain adjusts its promotional and marketing strategy according to each local audience.
7. Marketing plan
Your marketing plan is a high-level overview of how you plan to promote your bakery. The marketing plan should outline which channels you plan to use for marketing and advertising, as well as your starting budget.
8. Logistics and operations plan
Your logistics and operations plan outlines exactly how you’ll create and sell products and fulfill orders. Be sure to address each of the following:
Suppliers
Identify where you’ll purchase the raw ingredients you need to make your baked goods and where they’re produced. Will you buy anything pre-made from suppliers or make everything from scratch?
Production
Describe how long it takes to receive raw ingredients and how long it takes to produce your baked goods. Create a contingency plan for busy seasons or unexpected spikes in demand.
Facilities
Explain where you and any team members will work. If you plan to operate a commercial bakery, outline the approximate square footage you need for production, storage, and customer-facing areas, plus any location considerations like accessibility, foot traffic, parking, or proximity to suppliers.
If you’re running a cottage or home bakery, be clear about how much capacity you realistically have in a home kitchen, how you’ll store perishables safely, and how you’ll manage food safety requirements, pickups, and deliveries without a retail storefront.
Equipment
List the tools and technology required to get up and running—ovens, mixers, refrigerators, display cases, packaging supplies, plus business essentials like a POS system. Even small items (lightbulbs, shelving, counters) belong here for a realistic budget.
Shipping and fulfillment
Note whether you’ll handle fulfillment tasks in-house or use a third-party logistics (3PL) provider. Will customers shop in person, pick up pre-orders, or have items delivered? For home bakeries, outline where customers pick up orders and how you’ll maintain safety and professionalism.
Inventory
Detail how much raw inventory you’ll keep on hand, how you’ll store it, and how quickly it turns over. Include how much finished product you can safely store and whether you’ll ship items to partners or wholesalers. This section should also explain your approach to inventory management, e.g., FIFO, batch tracking, labeling, and waste reduction.
The bakery Wildgrain, for example, operates on a subscription-based business model. The brand outlines how it works on its website, providing information suitable for the logistics and operations section of its bakery business plan.
Goldbelly ships baked goods across the US and Canada, making it possible for local or regional bakeries like Cape Whoopies to serve customers thousands of miles away.
The Protein Bakery also has a few methods for fulfillment. Customers can visit its New York City–based retail shop or order online, and other businesses can also purchase its products wholesale.
Risk management and contingency planning
Ingredient prices can swing wildly, so outline how you’ll protect your margins, whether through a range of suppliers, bulk purchasing, menu flexibility, or strategic price adjustments.
You should also plan for equipment failures, because ovens, mixers, and fridges have a habit of breaking at the worst possible time. Note your backup options in your plan, like service contracts, repair partners, emergency rental equipment, or temporary menu changes.
Seasonality is another big factor for bakeries, so include how you’ll manage cash flow during slower months. And finally, address health and safety compliance. You’ll need clear processes for food handling, sanitation, inspections, and ongoing training.
9. Pricing strategy
This section of your business plan shows you can balance profitability with customer expectations. Smart pricing is one of the biggest levers you have for staying profitable, so use this section to explain how you’ll price intentionally rather than guessing or copying competitors.
A few different variables will shape your pricing strategy:
- Costs. Include everything from ingredients and packaging to rent, utilities, labor, and waste. Once you have a clear picture of your expenses, determine how much you need to charge to cover costs and maintain healthy margins.
- Competition. What are similar bakeries charging for comparable products? Competitive research helps you avoid underpricing yourself or setting prices so high they become a barrier.
- Customers. Are they hunting for budget-friendly treats, or are they willing to pay more for artisan, homemade, or specialty items like gluten-free or custom cakes?
- Discounted offerings. If you plan to offer loyalty cards, holiday specials, bundles, wholesale pricing, or day-old markdowns, outline how you’ll use these tactics strategically without cutting too deeply into profits.
10. Financial plan and projections
The financial plan shows possible investors you’ve crunched the numbers to figure out how much money you need to launch and to operate, and whether you can turn a profit.
For bakeries, this section is especially important because margins can be tight. Most bakeries aim for food costs in the 25% to 35% range, labor costs around 30%, and overall profit margins of roughly 5% to 15% once the business is fully up and running.
You’ll also want to set realistic expectations for how long it’ll take to break even. Many bakeries hit that point somewhere between 12 and 24 months, depending on startup costs, demand, and production capacity.
Make sure your projections model your break-even point, expected revenue, and monthly cash flow so you can see if (and when) your bakery becomes profitable.
This is where you stress-test your ideas: Does your pricing strategy actually cover your costs? Do your volumes make sense? Do your slower months sink your cash flow, or have you built in buffers to stay afloat?
The section typically includes the following financial statements:
- Income statement. Reports your revenue, expenses, and profit over a specific period.
- Balance sheet. Outlines your assets, liabilities, and equity so you know what the business is worth at any given moment.
- Cash flow statement. Summarizes the money coming in and out of your business to see whether you have enough cash to cover day-to-day operations.
Here’s a spreadsheet template with everything you need to create these financial statements, including sample numbers you can tweak.
When assembling your financial plan and statements, be realistic and specific. While you want to be optimistic about your growth, it’s just as important to ground your numbers in reality. Lean on the research you’ve already done throughout your business plan to project how your bakery will run most accurately.
Examples of successful bakery businesses
Here are a few real-world examples of bakeries that have successfully carved out a niche:
Magnolia Bakery
Magnolia Bakery taps into the charm of a classic old-school bakery with pastel colors, cozy interiors, and warm customer service.
Its branding is instantly recognizable and evokes a sense of nostalgia, making it feel timeless and approachable. Customers feel like they’re stepping into a neighborhood bakery, even if they’re visiting a chain location in a bustling city.
But Magnolia hasn’t just stopped at in-store sales.
It opened an online store, shipping its signature banana pudding and other products across the globe. It also sells branded merchandise like cookbooks and bake-at-home kits.
Sweet E’s
Sweet E’s Bake Shop started out in founder Erica Tucker’s home kitchen. She took her love of baking and turned it into a full-service bakery known for custom cakes, logo cookies, and gorgeous treats for pretty much any occasion.
What really sets Sweet E’s apart is how seamlessly it runs thanks to online ordering, local delivery, and next-day pickup. The combo of great products and smooth operations is a big part of why the shop has boosted conversions, kept customers coming back, and grown so quickly.
Tucker has diversified the business by offering catering services too.
The Protein Bakery
The Protein Bakery started when founder Stephen Lincoln, a fitness instructor-turned-baker, looked around at all the carb-heavy pastries in New York coffee shops and decided to create something healthier that still tasted amazing. He launched a range of baked treats that are protein-rich, preservative-free, wheat-flour-free and crafted with taste in mind.
According to Innova Market Insights, the protein wave will continue into 2026, citing the nearly 60% of global consumers who pursue “protein for overall health across various formats and occasion.”
What makes The Protein Bakery stand out is the mission and the mind set.
Lincoln refused to compromise flavor just for “health food” status. Instead his goal was to make a cookie anyone would genuinely enjoy.He built the business by engaging niche communities (fitness studios, acting classes), leaning into word of mouth, and eventually scaling into wholesale, retail, and online sales.
The combination of a clearly defined niche (healthy treats with taste), authentic origin story, and smart multichannel sales makes The Protein Bakery a cool example of how to build a bakery brand.
The Protein Bakery also offers a “build a box” option as a subscription service.
Launch your bakery business with Shopify
Starting your new venture with a strong bakery business plan is a surefire way to set yourself up for success from the get-go. Your bakery’s business plan will keep you and your team accountable and aligned with your vision and goals.
Before you dive in, it’s a good idea to choose a business name, register your business, and get any business licenses you might need (most food businesses will need licenses of some kind).
When you’re ready to launch, build your website on Shopify. Shopify helps business owners seamlessly integrate your retail and ecommerce tech stack to maintain complete control of your growing business.
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Bakery business plan FAQ
Is a bakery business profitable?
A bakery business can be profitable if you start with a business plan like the one in this post and identify a profitable niche. Products tied to a specific culture, like a bakery that specializes in Italian cookies or French pastries, or in event-related baked goods like wedding or birthday cakes, all present excellent niches. You could also offer gluten-free, sugar-free, organic, or dairy-free goods.
What equipment is needed for a bakery business?
Common types of bakery equipment include:
- Mixer
- Oven
- Food processor
- Dough proofer
- Dough sheeter
- Bread slicer
- Refrigerator and freezer
- Fryer
- Baker’s rack
- Baking pans and dishes
- Bowls, measuring cups, spoons, spatulas, etc.
- Scale
- Pastry bags
- Work counters
- Dry storage
Can a bakery business start with limited capital?
Yes, many bakeries start small with surprisingly low upfront costs. Starting as a home or cottage bakery is one of the easiest ways to keep expenses down because you don’t need commercial rent, a big team, or lots of equipment. You can launch with a few core products and scale as demand grows.
How to start a small bakery business?
Start by choosing your bakery model (home-based, online only, franchise, or a tiny retail space), then nail down your menu, pricing, and required permits. From there, set up your production workflow, build a simple online ordering system, and launch with a small, focused product lineup. Grow gradually as you get feedback and repeat customers.
Why do small bakeries fail?
Most small bakeries struggle because of thin margins, inconsistent pricing, poor cash flow management, or taking on too many products too quickly. Others run into trouble with demand fluctuations, high labor turnover, or inefficient operations. Having a solid business plan will help you sidestep most of these pitfalls.
