For millennia, bread, in its various forms, has been part of our meals. Investing in a bakery is thus frequently a profitable venture.
It is a reasonably healthy market, well-segmented, stable, for which it is necessary to correctly weigh the rules and constraints of departure to get started.
Also, it is essential to ensure that you produce a well-defined business plan for your future bakery before any step.
The bakery market in France
It's a market that won't disappear, but it'll always be there monitored because it is constantly evolving.
Unlike many other activities, the bakery quickly resists all attacks, even those from supermarkets, and retains around 75% of the bread sales market share. This equates to total revenue of 11 billion euros.
We can now count approximately 32,000 companies in France, representing 35,100 establishments. The median turnover amounts to 276,000 euros.
Like the post office, the bakery is a famous local shop in France, and it plays an essential role in our towns and villages. Its market is stable, and business takeovers are the majority: about 2,000 per year compared to 380 creations.
You'll need around 150,000 euros (source: L'Express).
The bakery is not only the favorite trade of the French: it is also that of the banks. Therefore, it should be possible to finance the initial investment for the most part using bank loans.
What type of bakery to open?
You should ask yourself if you want to engage in craftsmanship or industrialization if you are a tradesperson or a businessperson. These are simple questions, but they will lead you in the right direction: your bakery's entire business plan differently and your activity.
External factors might have a significant impact on your performance. The type of bakery you choose. built up by the intended catchment areas: the enthusiasm of consumers for various bread, the CSPs of your local customers, or even advertising for nutraceuticals could guide you towards the traditional bakery, while an establishment in a commercial area, a place of immediate consumption, in the direction of the industrial bakery
Let's also take the time to partition the sector to determine its perimeter.
Artisanal or traditional bakery
May 25, 1998, the law strictly regulates businesses wishing to receive the designation known as a bakery.
Indeed, and to do so, some conditions must be met: the baker selects his raw ingredients, and he assures the kneading, fermentation, shaping, and baking of the dough on the spot, that is, at the point of sale.
If your business solely sells frozen and thawed bread and pastries cooked on-site, you cannot call yourself a Bakery under penalty of a fine of up to 37,500 euros and a two-year prison sentence.
In addition, if you wish to be acknowledged as an Artisan-baker, you will need to hold a CAP or a BEP, register with the Chamber of Commerce and Industry, and meet the requirements of health, safety, and rigorous competition.
The law of July 5, 1996, has, in fact, drastically framed the activity to professionalize and comply with health and safety rules.
It is, therefore, not a baker who wants!
La BVP, Bakery-Viennoiserie-Industrial pastry
The industrial bakery market, known as BVP, has good growth potential. This is partly due to the diversity of distribution channels (fast food, supermarkets, hypermarkets, etc.) and, therefore, to a different offer valuation (snack areas, places of heavy traffic such as stations, airports, merchants, etc.)
This market is exceptionally nutritious - bread adds to a healthy diet. Constant dynamic - and is not driven down by promotions. Furthermore, the loss in purchasing power adds to the expansion of sandwiches, which is expected to be a key source of growth in the following years.
In BVP, the bread is delivered to you molded, frozen, or vacuum-packed, ready to bake on site. Therefore, the commercial premises are reduced to the cooking terminal and the sales area, which reduces the cost of the rent.
Suppliers' supply is multiple and can therefore respond to various commercial positions. You might also try joining one of the numerous clubs available—franchise networks that have now proven themselves and even export internationally (Pomme de Pain, etc.).
The points to remember when developing your bakery business plan
Whether it's a traditional bakery or a BVP, you will first need to study the local bakery market before setting up shop.
If you expand your bakery to snacking, you will also need to look at this market in detail.
Your company's success is mainly dependent on you. It is determined by the people you hire. In rural areas, you will have to ensure the grocery business and the links of the inhabitants with their fixed businesses as itinerants. A meeting with a member of the local government could only be helpful. It is critical in metropolitan regions to be close to a high-traffic area.
Studying the various franchise possibilities will be interesting if you are tackling BVP. Belonging to a franchise network will allow you to benefit from operational support and brand recognition, significantly reducing the risk of your business.
It's equally important to remember that schedules vary: On weekends, there is a lot of work, and it is the most profitable. Time of the week, and on public holidays and during school holidays.
This particular rhythm will have repercussions on the management of your personnel and the administration of supplies and stocks. In addition, your raw materials are perishable, and regulations require regular renewal of finished products. So remember to consider the costs associated with restocking in your bakery's business plan.
What should a bakery business plan contain?
Your bakery's business plan will serve as a reference document in your search for financing. This is indeed the document that you will present to banks or investors to convince them to follow you on the adventure.
Although there is no strictly imposed form, the business plan of a bakery must nevertheless respect a particular formalism.
This must begin with an executive summary summarizing the key points of the project and highlighting your need for financing.
The project, its assets, and its risks must all be described. In detail through many parts: presentation of the firm (legal form, shareholders and managers, locations, etc.) and presentation of the project, its assets, and the risks associated with it.), products offered for sale, market study, and production of the business strategy, an overview of the operational structure (suppliers, personnel plan, etc.).
Finally, the tentative financial plan is the last section of a bakery's business plan: the presentation of the assumptions used in the business plan, the sales forecast, the cost structure, the financial statements, and the financing plan. Visit for more information.
Which tool to use to carry out your bakery business plan?
If you're new to writing business plans and aren't sure how to do it, you can use online business plan software.
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