3 ms·

I was surprised to see Bakeries and Baked Goods (9). I know someone selling an established commercial bakery in a major metro area. I don't think the margins or

I was surprised to see Bakeries and Baked Goods (9). I know someone selling an established commercial bakery in a major metro area. I don't think the margins or growth are all that great. (But I could be wrong.) As an aside, I have it from a principal in a private equity fund that he's seeing a big up-tick in the number of businesses for sale.

hugh3 16y ago
I heard somewhere that bakeries have one of the highest failure rates of all businesses. Unfortunately I can't find the source now. I suspect the industry attracts a lot of dabblers, folks who know how enough to bake a decent cookie but don't necessarily have enough of a background in retail to attract enough customers per day to keep afloat. There's also the current cupcake-shop boom going on, but I don't see that as a good long-term opportunity.
brc 16y ago
Given the appallingly low quality of most baked goods in the USA, I think there is a lot of headroom for growth in fresh bakery stores. Done well, it's got every chance of becoming the next 'starbucks'. Who would have said 20 years ago that premium priced coffee would be a growth industry? In European countries, even the smallest two-horse town supports a local bakery, and most small french towns will have several. It's part of the lifestyle to buy bread fresh each day and eating processed factory produced bread is just not done. Anyone who has eaten a fresh baguette from a french bakery will know what I'm talking about. You could say the same about coffee in the USA today - who will pass up a freshly brewed cup over some processed instant coffee, even though the price is 20 times higher for that latte? The cupcake craze might be the first leg in a takeup of small bakeries offering freshly baked goods which become woven into people's daily lives.

3 ms·

I was surprised to see Bakeries and Baked Goods (9). I know someone selling an established commercial bakery in a major metro area. I don't think the margins or

by jackfoxy 16y ago

hugh3 16y ago
I heard somewhere that bakeries have one of the highest failure rates of all businesses. Unfortunately I can't find the source now. I suspect the industry attracts a lot of dabblers, folks who know how enough to bake a decent cookie but don't necessarily have enough of a background in retail to attract enough customers per day to keep afloat. There's also the current cupcake-shop boom going on, but I don't see that as a good long-term opportunity.
brc 16y ago
Given the appallingly low quality of most baked goods in the USA, I think there is a lot of headroom for growth in fresh bakery stores. Done well, it's got every chance of becoming the next 'starbucks'. Who would have said 20 years ago that premium priced coffee would be a growth industry? In European countries, even the smallest two-horse town supports a local bakery, and most small french towns will have several. It's part of the lifestyle to buy bread fresh each day and eating processed factory produced bread is just not done. Anyone who has eaten a fresh baguette from a french bakery will know what I'm talking about. You could say the same about coffee in the USA today - who will pass up a freshly brewed cup over some processed instant coffee, even though the price is 20 times higher for that latte? The cupcake craze might be the first leg in a takeup of small bakeries offering freshly baked goods which become woven into people's daily lives.