[Cupcakin Ashley]

Hi All,

I posted something on this last night, but it disappeared.. Probably user error!

Anyways, I'm looking to start a Cupcake Business in the Northwest Area... Washington or Oregon. I was just wondering if any of you had any advice on how to get started... Any of the trials and tribulations you've encountered if you own a bakery... and just any kind of feedback would be great!

look forward to hearing from you all

Thanks!!

[Camille]

You can make an appointment with a counselor at the Small Business Development Center in your area. They can provide a lot of information to you at no cost.

Since you live in Oregon, you may be able to start your business in your home. You'll need to contact the Dept. of Agriculture to schedule a home inspection and get licensed as a domestic kitchen. The inspectors are very helpful and can answer many of the technical questions you'll have. It's a good way to start without spending a lot of money.

If you can't get your home kitchen licensed, I'd recommend trying to find an existing kitchen to rent before going out on your own. You can place an ad on Craig's List or check with churches, service clubs and armories in your area. There also may be a small restaurant that's only opened for part of the day - they may allow you to bake when they're closed for a small fee.

Hope this helps.

[zcakes]

I completely agree with Camille. I work at a bakery that does about 3,000 cup cakes a week. I looked in to starting my own business but my county does not allow me to work from home. If you can work from home to start I think that is the best way. Good luck!

[Harpua]

I was the head baker at a brand new cupcakery last year. I don't really know how to begin to answer that question. I'll get to it eventually because it is late.

Do you want a storefront?

[SuzannaR]

I too would like some advice on starting up a cupcakery in Florida

[jerry i h]

I live in the SF/Bay Area, and I think the genesis of these odd, cupcake bakeries with exactly the same question. I have personally been a customer to at least 4 of them, and I have the same question. How on earth do these places, regardless of the amount media attention, sell enough cupcakes to stay in business? There is at least on local such bakery that has disappeared.
To illustrate my curiosity:
monthly fixed cost of business: $5,000
profit per cupcake: $0.50
# of cupcakes to meet fixed business cost: 10,000
# days open per month: 30 (no, you must work 7 days a week)
# cupcakes per day: 333
# cupcake trays (12 pcs) per day: 28
Question: is your projected facility capable of both producing and selling almost 400 cupcakes PER DAY??? Even if you assume that every customer buys a box of 6, this comes to a total of 60 boxes A DAY. Is your hypothetical business capable of this? Will you have that many customer?
See my curiosity? I would like to know, in a year, how many of these highly vaunted cupcakeries are still in business.
Yeah, I know, someone will criticize that my #'s are off. Granted: I am making them up. Still, before you actually try this, do a real-world, reasonable estimate via a solid business plan, that your cupcakery business will survive.
Good luck, since I love the cupcakes at all the places I tried.

[WheresTheGrub]

Originally Posted by jerry i h

profit per cupcake: $0.50

Cupcakeries in my area (San Fernando Valley) charge $3 a pop. I make 12 cupcakes (using retail pricing) for a about a $1.50. If you buy ingrediants bulk, it will be a little less.

The most costly expense is the rent. Beat that obstacle, and you can make it.

Some YMCA's and Boys and Girls clubs have kitchens that are empty a good deal of time.

I, too, am waiting to see what happens to these guys that charge so much for such a specialty item.

[chefelle]

Labour dollars are the killer. Rent is cheap in comparison.

[WheresTheGrub]

Originally Posted by chefelle

Labour dollars are the killer. Rent is cheap in comparison.

It may be so over there, in beautiful Nova Scotia, but not here.

labor= $8 per hour; 1000 hours of labor = $8000

rent= $4 per square foot; 1500 sqft = $6000 month.

YES, you can get cheaper rent, but not in "hip, trendy" areas where someone is more likely to buy a $3 cupcake.

I just saw a closed bakery that the owner is asking a $1 a square foot. Went to check it out with wifey, her first comment, "wow, I never thought I would see a place forgotten by humaninty" meaning, the area was a "dead zone"; maybe 70 years ago it was a busy commerce area.

[SuzannaR]

I haven't seen the cost of start up bakery equipment mentioned. I understand that is very expensive?

[m brown]

Originally Posted by SuzannaR

I haven't seen the cost of start up bakery equipment mentioned. I understand that is very expensive?

Equipment:

Mixers: 2800 = 20 qt
600= 6 qt
6000 = 80 qt

Table: 175 - 350

Venting: 3000- 50000

Stoves and ovens = 1500 - 5500

Displays = 600=3000


There are alot of variations in pricing. Many people will collect equipment over time.

[chefelle]

I just outfitted and opened my own little patisserie in October. With alot of help from a good friend of mine and alot of connections I was able to completely outfit my bakery for $15,000. This does not include start up food costs, any additional expenses, or specialty equipment I already had. Nor does it include wiring and plumbing costs to install said equipment. That was almost $2000 alone with my father in law and my husband doing the work for free. What I have is valued at over $50,000 replacement cost.

I figure it cost me at least $35,000 to open my doors for business. And I already had alot of the stuff I would need to get started. I was lucky and had a lot of industry contacts who helped me a great deal--and a father in law and a husband who are extremely handy when it comes to construction/electrical and plumbing. You could easily spend $50,000 or more just on equipping a place.

It's shocking when you get started purchasing equipment. Especially if you have worked in a well stocked restaurant kitchen. You think you only need one or two items but then you realize that you still need this. Oh and once you get this you still need that. And it's not luxury items--it's necessities like three compartment sinks and spray guns. Handwash sinks. Shelving units. It's an absolute monster.

And display cases! Wow--they increase your sales big time but they also cost you big time!

And then there's complying with all the many health and safety regulations. It can be done but it's not cheap--that's for sure!

I would be glad to share my experiences with anyone who is interested. Please feel free to send me a pm and I will gladly help if I am able to.

[WheresTheGrub]

Originally Posted by chefelle

I just outfitted and opened my own little patisserie in October. .

Congrats!!!! and you still have time to be online!

I just got the 'GO" from an investor friend to find a donut shop/bakery.

Primarily looking for somewhere that has all the "guts" ready to go. There are a bunch around, just a matter of finding the right one for us.

Good luck on your new place, u gonna post a picture or two??

[chefelle]

Day off today. Just posted before I headed out to meet with my Sysco rep. On my way back out in a few minutes time.

I will try to take a few pictures of the shop and my work to post some time this week. My camera is in the back of my car...and I'm usually too lazy (or too busy!) to head out to the car to get it when I create something photo worthy. Ha! Ha!

Best of luck to you as you start your business. If I can be of any help please don't hesitate to contact me.