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Baking for Coffee Shop

post #1 of 6
Thread Starter 
I am not a professional baker, but a pretty good (read humility in there, please).
I have been asked to bake for a new coffee shop that is opening in my area (central nj).
Is there a standard formula for pricing?
I know in retail it's 50% mark-up.
Any other information, suggestion, hints on how to go about this would be
most appreciated.
Thank you!!!!!
post #2 of 6
I would really think that the answer would depend on what the market would bear. Keep in mind all your misc. costs like delivery, packaging, utilities and kitchen costs. Don't forget to pay yourself as well.

You should really sit down and cost your items to a penny and go from there. Say a muffin costs 1 dollar to make-just ingredients you have to factor in the above mentioned costs as well. Volume will reduce the total overall costs so keep that in mind. It will take the same time about, to mix 20 muffins as 10 so your labor and time costs as well as utility costs will remain constant but be reduced overall by volume.

Retail is a little easier to markup as usually you open a box that costs "x" and put it on a shelf at "y" markup. Food also involves all the other costs too. If I made a 100 muffins that cost me 6 dollars to make(ingredients) + 1 hour labor (10 dollars) + 1/2 hour delivery time (5) + gas (5) you are already at 26 dollars cost or about 40+cents per muffin, tack on your profit/markup
say 60% you will be in the 64 cent range per, not too bad which leaves your customer some wiggle room to make some $$ as well. Just remember to factor in all your costs, I think that is where most home bakers/new bakers go wrong. It would also help to have some minimum orders with your customer too an example would be selling muffins by the dozen instead of the each, not only would a dozen be more profitable but your overall costs would be lower.

Something I always think about is the time I worked in the Carribean making bagels in a pastry shop(long story how I got there, but) I asked my boss why she charges so much for them her answer was priceless "If I charged 50 cents each instead of a dollar I would sell twice as many and would have to work twice as hard"

I am no expert but thought I would reply as no one else has yet.
Fluctuat nec mergitur
Fluctuat nec mergitur
post #3 of 6

Baking for Coffee Shop

Hi Missy,
I started out of my home baking for coffee shops.15 years ago. I have my store for 11 now. I would be glad to speak with you or if e-mail is better I will try to help. My work# is 215-592-9616. I will be at work from 10am -3pm Sunday. Feel free to call. Hope that helps.
Kosher Baker
post #4 of 6

Hi Kosher Baker,

I approached couple of coffee shops about 2 months ago in our small town,and they have been ordering cinnamon buns and biscotties.Since lots of coffee shops are opening in our small town of 7000 population, I am down to one coffee shop that has ordered only biscotties for past 3 week and they are not open to trying other things . My baking is very tasty, but it seams people want everything for free!! My prices are reasonable, the owners said so. I love to bake and I like to expand, but don't know what to do at this moment. We have 7 coffee shops in our little down town,most of which bake for themselves as well as many restaurants and mcdonalds, A&W, Timmies!!!!

Do you have any insights as how to approach this problem besides moving to a big city?

Thanks, Azita

post #5 of 6

Kosher Baker has not posted here in four years.

post #6 of 6
Originally Posted by chefbuba View Post

Kosher Baker has not posted here in four years.

ChefBuba, Then wouldn't the pricing be higher four years later,DUH

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