Plans for opening Pastry Shop

[MrsG.]

Hi I am a Business Management student graduating in April. My passion is cooking/entertaining. So I figured that I should do something I truly enjoy. My goal is to eventually open a Pastry Shop somewhere in either Brooklyn or Long Island NY. I would manage the store and make a few things but I would have to hire a Pastry Chef. Well, one of my classes is giving me the push to start research. We have to come up with a detailed plan to start a business.
I want to know (roughly) how much it costs to open a Pastry shop. I checked out some websites and saw that on the low end a Pastry chef (I guess just starting out) makes around $48,000 with an assistant making $31,000, cashier $20,000. The rent would be roughly $1,500 to $2,000 a month for some of the places I saw on line. What other expenses can I expect? I don't know allthe equipment I would need, permits, etc...

Any info. would help. Thanks.

[nowIamone]

How can a business management student ready to graduate in April not be able to research the governmental requirements to open a business?

Advice is one thing, doing homework is another.

[MrsG.]

Thanks for replying. I know there is a lot to research but I have 7 wks and two other classes with a new baby at home and work full time. It's not that easy for me right now. I don't necessarily need the governmental aspect of it, I really wanted an estimate or any inside advice. When I am really going to open my shop, it will take much much more research than what I am able to do now. I decided to ask here because when someone is in this world they might have advice or experience that you just can't get in a book. Thanks again for taking the time to reply, I welcome any more tips or comments.

[justjoe]

A pastry person starting out makes more like 8-10 dollars an hour. 48 grand is certainly not low end starting pay for a pastry chef. I'm not saying it's not appropriate, just that it is not "normal," which means underpaid. You can just guess and probably be right as far as your paper is concerned. Are you buying new equipment or used? I worked for a baker who was using some machines made in the 1930's. Same for display cases. Do you want to make a lot of simple things or a few fancy things? Are you going to take credit cards? Check ebay for used equipment pricing.See if you can find a baker or two who will give you some actual numbers.

[m brown]

LI

Rent: 3000 per month
Electric: 700-1200 per month
Gas: 400-1000 per month
phone/fax/cable: 250 per month
Disability Insurance: 600 per year give or take
Insurance: 2400 per year
Health Dept Fee: 200 per year
Taxes/Fees on the building: 5000 per year

Then there is:
Advertising (one magazine add can be 2K)
Signage (400-sky's the limit)
Identity(graphic designer or Windows publisher)
Packaging (plain paper bags or custom)
Ingredients (Restaurant depot or Dairyland or Sysco....)
Labor( Pastry chef 36k + and 10$ per hour minimum)


To start up you would need one year operating cost, don't expect to break even until year 3.
If you are head of the household, one year living expences in the bank.

[MrsG.]

Wow, thank you so much for the information. It really does take a lot of money to open what I would consider a simple business...well I thought it would be easier than a restaurant. I guess the product has to br really good in order to bring in the type of money it would cost to just sustain the business.
What would you say is the hardest part of running a business that deals with food? (Pastry shop, Bakery, Restaurant etc...) besides making money.

[m brown]

The build out could cost you anything from nothting (turnkey) to 75-100K.

The hardest things were dealing with the money issues ( constant onslaught of taxes, insurance, non payment by clients, bills, bills, bills!!!), stress and
physical demands.

You are doing what you love and are good at yet there is a nagging voice of doubt in the back of your head. It's hard to tune it out.

I would love to open another shop but have a huge bucket of opm. (other peoples money)