Investing in food-related businesses is always a great idea and if you’re thinking of acquiring a bakery business, then the deal becomes even sweeter! Statistics portray that 4845 bakery businesses exist in Australia, with a revenue of $5.4 billion from 2014 to 2019.
The main reason why so many food business owners wish to invest in bakeries is due to their ability to serve delicious products and cater to a wide customer demographic. Here are some other great reasons why you should check out some good bakery deals as soon as possible!
1. An Established Customer Base
One of the biggest advantages of investing in a bakery is that there’s already a wide customer base waiting for you. For example, if you’re the owner of a restaurant and you wish to expand your establishment by acquiring a bakery, it’ll be profitable because bakeries generally receive a lot of customer traffic all day. Moreover, bakeries are known to have product consistencies since their offerings are limited to a few items only. Therefore, you know that no matter the season or month, there will always be customers lined up outside the bakery shop you’ve acquired.
2. Wide Customer Demographics
Another major advantage of any bakery is that the customer demographics are huge. If you invest in clothes or any other sector, only a select few customers will buy from you. On the other hand, bakeries attract people of all ages, right from small children to elderly people. And if you wish to acquire a bakery that has affordable pastries, tarts, and savoury items, then the customer base is sure to be even wider! When the target demographics are wide and contain variety, it’s good for the buyer because it ensures minimal risk.
3. They Provide Comfort In Uncertain Times
Whenever there has been an epidemic or a pandemic, one industry that has always remained resilient is the bakery industry. No matter the time, there will always be a bakery business for sale somewhere around you. During economic uncertainty, people turn to staple food items that contain bread and sweets, and bakeries are the perfect places for those. Moreover, bakeries sell items like fruit jars, pineapple pies, and bun breads, which are filling as well as affordable. The large variety of sweets and savouries displayed in shops allows people to grab a bite even when they’re short of money.
4. Easy Staff Training
If you already own a food business and decide to invest in a bakery, training your staff becomes much easier. Even if you don’t have enough staff, the learning curve is pretty easy, so even a handful of staff will be able to work well in a bakery factory or shop. Investing in comprehensive training forces and sessions can further make it easier for your employees to understand how bakeries work. This is especially useful if you’re planning to invest in a bakery franchise because proper training will let franchises run smoothly right from the beginning.
5. High-Profit Margins
Bakery is one of the few industries where the profit margins are relatively higher. Since bakery shops provide diverse offerings, starting from chocolate pastries to brownies, they can attract a large customer crowd. And when the crowd is large and diverse, you’ll be able to make more profits. For example, bread and biscuits can be a part of the everyday food corner, whereas cakes and pastries can be sold for special occasions at discounted prices to attract more people. Lastly, speciality items like gluten-free pastries or vegan brownies can also be a hit among health-conscious customers.
5. Automation & Innovation
In today’s era, automation is everything. The bakery industry is perfect for creating a balance between innovation and automation because you can come up with creative products like gourmet biscuits or special cookies and cakes for the festive seasons. Along with this, you can also apply automation by installing AI-powered robots and machines that can insert cream fillings or take care of the packaging. This will not only reduce your operational costs in the long term but also make your business renowned among others.
Conclusion
Investing in a profitable bakery business can be a great deal. However, you should also keep in mind the seller’s history, reasons for selling, and how they have managed their finances. Therefore, it’s always advisable to hire a lawyer or professional to help you choose the best bakery for a smooth acquisition!