Bakery Business Plan Template
CONFIDENTIALYum Yum CakesFrom Grandma'ʹs Kitchen to you!Business Plan
Contact InformationYum Yum 2014.wix.com/yumyumbakery355 A San Fernando StreetSan Jose, California 95113, United States
Yum Yum CakesTable of ContentsExecutive Summary . 1Who We Are . 1What We Sell . 1Financial Summary . 1Yum Yum Cakes . 3Company Overview . 3Management Team . 4Location . 4Mission Statement . 5Vision Statement . 5Objectives . 5Strengths & Core Competency . 5Products and Services . 7Products and Services . 7Marketing Plan . 8Market Overview . 8iCONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secretinformation and is shared only with the understanding that you will not share its contentsor ideas withCONFIDENTIthird parties without the express written consent of the plan author.
Yum Yum CakesTarget Market Segmentation . 8Market Trends . 9Growth Potential & Opportunities . 9Barriers to Grow . 10Measures to Overcome Barriers . 10Changes in Technology, Government Regulation & Economy . 11Market Segmentation & Demographic Profile . 11Competition . 12Competitive Analysis . 13Niche . 15Strategy and Implementation . 16Milestones . 19Operating Plan . 20Business Responsibilities of Proposed Site . 20Production Overview . 20Production Costs . 20Location . 21iiCONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secretinformation and is shared only with the understanding that you will not share its contents or ideas withthird parties without the express written consent of the plan author.
Yum Yum CakesQuality Control . 22Customer Service . 23Purchase & Service Options . 23Inventory Control . 24Business Hours . 24Legal Environment . 25Employees & Contractors . 27Inventory . 27Suppliers . 27Credit Policies . 28Financial Plan . 28Budget . 30Cash Flow Assumptions . 32Loans and Investments . 32Financial Statements . 34Balance Sheet . 37Cash Flow Statement . 39iiiCONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secretinformation and is shared only with the understanding that you will not share its contents or ideas withthird parties without the express written consent of the plan author.
Yum Yum CakesAppendix . 42Revenue Forecast . 42Budget . 45Loans and Investments . 51Profit and Loss Statement . 53Balance Sheet . 60Cash Flow Statement . 65ivCONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secretinformation and is shared only with the understanding that you will not share its contents or ideas withthird parties without the express written consent of the plan author.
Yum Yum CakesExecutive SummaryWho We AreYum Yum Cakes is a bakery in the downtown region of San Jose, CA; serving the localstudent and professional population. Established in June 2014, the business is operatinga storefront as well as a catering kitchen, specializing in event cakes, breakfast andlunch packages.The company seeks to expand business by opening a production unit in Alum Rock,and expand the existing bakery into a Dine- ‐‑In and Take Out Restaurant.Yum Yum Cakes will be referred to as YYC here on.What We SellYum Yum Cakes offers freshly baked products such as breads, cakes, cookies, cupcakesand pastries, as well as sandwiches, soups and salads along with beverages.With the opening of the restaurant, we will be able to offer a full- ‐‑fledged menu cateringwith a variety of cuisines through the day.Financial SummaryThe business was started largely by owners'ʹ funds. It plans to fund its expansionthrough a loan purchase from Bridge Bank.The funds are mainly required to open a production unit and expand the existingbakery into a dine- ‐‑in and a takeout restaurant.The initial growth of the bakery from the time of opening till mid- ‐‑August is positive.The bakery has seen a lot of storefront customers as well as many cateringopportunities. The business takes a down turn during the next three months but with1CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secretinformation and is shared only with the understanding that you will not share its contents or ideas withthird parties without the express written consent of the plan author.
Yum Yum Cakesthe proposed expansion in January 2015, the business will bounce back with strongerprofits and gross margins.From the graph below, we see that the company is breaking even in FY2015. In FY 2016and FY2017, there is a sustained Net Profit Margin of 25- ‐‑35% and revenue is greaterthan 1 million.Financial Highlights by Year2CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secretinformation and is shared only with the understanding that you will not share its contents or ideas withthird parties without the express written consent of the plan author.
Yum Yum CakesYum Yum CakesCompany OverviewYum Yum Cakes is a startup specialty bakery launched in June 2014 near downtownSan Jose. This bakery will serve a community of employees from the surroundingbusinesses and students attending the nearby universities. This downtown district is avery popular destination because of the tech museums and SAP arena, for weekenders,tourists and game lovers.The company is a traditional bakery, baking a large variety of cakes, cupcakes andcookies, sized to customer requirements. The bakery specializes in creating anddesigning cakes, cupcakes and cookies for various life events as well as corporatefunctions. All our products are prepared fresh everyday with locally grown ingredients.The company is registered as a general partnership with four partners who will bejointly and severally liable for the debts of the company with their entire property.Ms. Usha has extensive experience in finance and management and served as a vicepresident of finance in Alien foods and also has culinary experience. Ms. Pavithrabrings in culinary experience from all around the world with education in the samefield. She has more than ten years of experience and served as executive chef in someworld- ‐‑renowned restaurants. Ms. Anne Lise brings in marketing and sales experienceand has served as an executive president with Adora Foods. Ms. Arya also brings inculinary experience with an academic background in culinary field. She has served as arestaurateur for the past eight years and has experience in world cuisine.The company plans to expand operations and business by increasing the currentproduction with a dine in and take out restaurant. This plan covers all aspects withrespect to the expanded business. Current business reports are provided separately.3CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secretinformation and is shared only with the understanding that you will not share its contents or ideas withthird parties without the express written consent of the plan author.
Yum Yum CakesManagement TeamThe bakery is owned and managed by four young women who have had previousexperience in the Food Industry.Usha, Finance Advisor & Baker Manages the financial aspect Helps in daily menu decision Coordinates with the wholesale dealersPavithra, Baker & Advertising Head Baker Helps in advertising and marketing the business Helps in daily menu decisionAnne Lise, Sales, Marketing & Decorator Manages the sales and marketing Chief decorator of the baked goods Helps in daily menu decisionArya, Cook & Manager Head Cook Manages Store front Helps in daily menu decisionLocationYum Yum Cakes is currently located in A San Fernando Street, San Jose, very close touniversities and businesses. This serves as one of the best location for a bakery as itattracts a lot young college adults as well as employees from companies around. The4CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secretinformation and is shared only with the understanding that you will not share its contents or ideas withthird parties without the express written consent of the plan author.
Yum Yum Cakesbakery is strategically located, bringing in a lot of tourists who visit museums or attendevents at the nearby arena.We will convert our existing location to a complete store front as we have identified aseller for another bakery site where we plan to move our production operations. Thiswill be our main production unit (PU) for the bakery and for corporate customers.Mission StatementTo provide our customers with grandma’s recipes with a modern twist to satisfy thetaste buds of the previous, current and the future generations with a dash of excellence,a pinch of quality and a scoop of creativity by a team of passionate individuals.Vision StatementTo be the best friendly neighborhood bakery with a vision to become the reference forbest cakes around which our neighbors gather to celebrate all their lifetime events orjust in the mood to have a sweet treat.Objectives1.2.3.4.To establish a dine- ‐‑in and a takeout restaurant.To develop a strong presence in the community needed to support sales goals.To develop a full menu by the end of the last quarter.To expand production to increase corporate customer sales.Strengths & Core CompetencyOur company strengths and competencies may be summarize as follows:Our business is operating with existing customer base. We have a brand image in thelocal area built over the last few months. We have unique family recipes thatdifferentiate our products from others.5CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secretinformation and is shared only with the understanding that you will not share its contents or ideas withthird parties without the express written consent of the plan author.
Yum Yum CakesWe bake our own products that assure quality and taste. Our culinary backgroundcovers different regions of world. We have collective industry and culinary experienceof 42 years.6CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secretinformation and is shared only with the understanding that you will not share its contents or ideas withthird parties without the express written consent of the plan author.
Yum Yum CakesProducts and ServicesProducts and ServicesCorporate Customers: Lunch Catering – Sandwiches, Salads, Soups, Bread rolls, Desserts Baked Foods – Cakes, Cupcakes, Cookies, Brownies, Breads, Savory snacksStorefront customers: Baked Foods – Cakes, Cupcakes, cookies, brownies, pastries Freshly prepared Sandwiches, Salads and Soups Beverages (hot and cold) Special Orders – Catering for parties, Wedding cakesOur bakery will focus on breakfast, lunch and snacks serving from a customer base oflocal employees, students and arena visitors.Our brand has become reputed in the local area because of our ability to provide a goodbalance between health and taste at reasonable prices. Our expanded business willcontinue its commitment to healthy foods, and differentiated products using uniquetraditional recipes from around the world.7CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secretinformation and is shared only with the understanding that you will not share its contents or ideas withthird parties without the express written consent of the plan author.
Yum Yum CakesMarketing PlanMarket OverviewFacts about the Bakery IndustryThe bakery industry in the US includes 2,800 commercial bakeries with annual revenueof 30 billion, along with 6,000 retail bakeries with total annual revenue of 3 billion.The commercial side of the industry is highly concentrated, with the 50 largestcompanies generating 75% of revenue. On the other hand, the retail side is highlyfragmented, with the 50 largest companies generating around 15% of revenue. In theretail industry, most companies operate just one facility. For companies of all sizes,profitability is strongly tied to the efficiency of their operations. Large bakeries are ableto reach economies of scale advantages, while small bakeries can compete by offeringspecialty goods and offering superior local services.(Reference - ‐‑ americanbakers.org - ‐‑ A website For American Bakers’ association).Target Market SegmentationThere are 31 bakeries and cafes within the 5- ‐‑mile radius of YYC.8CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secretinformation and is shared only with the understanding that you will not share its contents or ideas withthird parties without the express written consent of the plan author.
Yum Yum CakesWe will cater to corporate clients within 10- ‐‑mile radius so we can prepare and deliverjust in time to ensure fresh food.We will cater to storefront and restaurant customers during normal business hoursoffering breakfast, lunch and snacks. We will target employees of businesses andstudents of educational centers within a 5- ‐‑mile radius. We also plan to attract customerswho visit the arena nearby.Market TrendsSome important trends Yum Yum plans in adopting:a. Consolidation: YYC will only be concentrating on expansion of its product lines.b. Automation: Since YYC is a small operator it cannot afford to automate itsproduction right now.c. Discounted Resale: This is the technique that YYC will be using in case of anybacklogs from its customers through flash sales.Growth Potential & Opportunitiesa. Artisan Breads: This opportunity is especially advantageous for smaller and specialtybakers like YYC who have the ability to be flexible in their production facilities andpossess insights related to local tastes. YYC will try to adapt this technique in theirexpansion plan.b. Rising Popularity of Par- ‐‑Baking: This is a way for smaller and specialty bakers likeYYC to cut costs, while still providing “fresh” baked goods to their customers.c. Increased Demand for Organic Foods: YYC will be targeting this segment of themarket during their expansion.d. Shelf Lives Extended: YYC will also try to follow the new packaging techniques toincrease the shelf life of products during their expansion.9CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secretinformation and is shared only with the understanding that you will not share its contents or ideas withthird parties without the express written consent of the plan author.
Yum Yum CakesBarriers to Growa. Volatility of Raw Materials & Energy Costs: YYC faces a challenge in regards to itsfutures contracts as there will always be a risk associated with changing prices.b. Competition: YYC has around 31 bakeries in a close proximity of 5- ‐‑mile radius,Hence YYC faces a threat from competitors.c. Low Demand Growth: As mentioned earlier since there are already quite a fewbakers like YYC there is a very narrow window of growth for YYC.d. Food & Drug Administration (FDA) Guidelines: It is mandatory to follow theguidelines of FDA periodically and obtain their approval.e. Appealing to Consumer Tastes: YYC will have to regularly conduct market researchin order to appeal to the current consumers tastes.Measures to Overcome Barriersa. Ability to pass on cost increases to the customer: YYC is planning to adopt thistechnique to balance the increased costs depending on the changes in the marketconditions.b. Secure supply contracts for key ingredients: YYC is planning to secure its contractsfor longer durations with wholesalers like Costco for the purchase of the key rawmaterials like flour.c. Close proximity to key markets: YYC is located in proximity of 5 - ‐‑10 mile radiusfrom all its customers. YYC will continue to maintain this during their expansion too.d. Product differentiation: YYC is planning to remain innovative in product to standout from the competition. YYC is planning to introduce new products lines like“Organic food” during the expansion.10CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secretinformation and is shared only with the understanding that you will not share its contents or ideas withthird parties without the express written consent of the plan author.
Yum Yum CakesChanges in Technology, Government Regulation &Economya. Baking Equipment: Currently YYC does not own all the new technology equipment.This gives an advantage for the well- ‐‑established competitors over YYC. YYC isplanning to invest in equipment in the next year. (Spiral mixer- ‐‑2, Fully Automatic oven- ‐‑ 4)b. Safety and Ergonomics: As mentioned earlier YYC is planning to invest in newequipment as a part of safety measure.c. New Ingredients: YYC currently does not use ingredients that are “gluten free” or“low carb”, but is planning to use such products for their new “organic” product line.d. Logistics and Service: YYC has also introduced website for customers to orderonline.Market Segmentation & Demographic ProfileCorporate Customers:List of targeted corporate customers for Yum Yum located in 10- ‐‑mile radius from YYC.1. Adobe Systems2. Acer America3.CBRichard Ellis4. Colliers International5. Deloitte7. Ernst & Young11CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secretinformation and is shared only with the understanding that you will not share its contents or ideas withthird parties without the express written consent of the plan author.
Yum Yum Cakes8. Hoge, Fenton, Jones & Appel – Attorneys at Law9. Hopkins & Carley LLC10. Merrill Lynch11. Morgan Stanley12. Price Waterhouse CoopersThese are mainly corporate workers and tech savvy’s who are driven by success andprestige. They are both Men and Women between ages 20- ‐‑60 and who have an incomerange approximately between 60K - ‐‑ 230K .Catering Customers:1.2.3.4.5.6.7.8.Safeway MarketPTAsParty ForeverCostcoClover Leaf BowlingRain Forest CafeClaim JumpersGiants MarketStorefront Customers:We have walk- ‐‑in customers who just want to enjoy a delicacy. We also have clientscelebrating special occasions like birthday, anniversary, graduation.CompetitionCompetition in the local area is somewhat sparse and does not provide nearly the levelof product quality and customer service as YYC. Local customers are looking for a highquality product. They desire a unique, classy experience.12CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secretinformation and is shared only with the understanding that you will not share its contents or ideas withthird parties without the express written consent of the plan author.
Yum Yum CakesList of 10 major competitors for YYC are:1.Jimbo’s170 Jackson St, San Jose, CA 951122.Greenlee’s bakery1081 The Alameda, San Jose, CA 951263La Lune Sucree116 Paseo de San Antonio, San Jose, CA 951124.Bijan Bakery & café170 S Market St, San Jose, CA 951135.Linda’s Bakery872 E Santa Clara St, San Jose, CA 951166.Kara’s Cupcake van111 W. St John St, San Jose, CA 951137.Roma Bakery655 S Almaden Ave, San Jose, CA 951108.The Sweetbox bakery414 E William St, San Jose, CA 951129.Le Boulanger580 W Saint John St, San Jose, CA 9511010.Panaderia La Mejor1239 E Julian St, San Jose, CA 95116Competitive sVaries as percustomizationof the customerAffordable-ExpensiveModerate4OrganicBest in themarket-Not OrganicBoth organicand generic5-Since we are astartup theselection ofproducts arelimited and it is aweakness whencompared to thecompetitorsWideselection ofproductsWideselection ofproducts4LimitedCompetitor A Competitor BImportancetoCustomerMe13CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secretinformation and is shared only with the understanding that you will not share its contents or ideas withthird parties without the express written consent of the plan author.
Yum Yum rtisingImage-The Only serviceoffered is acomplimentarybaking classVariety ofservicesVariety ofservices5-All the 4 partnersput together haveless expertise inthe fieldMore than 30years ofexpertiseMore than 13years ofexpertise4Since we are astartup we areyet to beregistered in theminds of a lot ofcustomers-Short duration ofthe business leadsto a moderatecompanyreputation and is aweaknessThey have avery goodreputation asthey are anestablishedsince 1990’sThey have avery goodreputation asthey are anestablishedsince 20015350 A SanFernando StCloseproximity tocustomers-170 JacksonStSan Jose, CA95112170 S MarketStSan Jose, CA951135Cost effectivetechniques foradvertisingWe are ableto reach awide varietyof customerswith minimaland costeffectivetechniques-They do notrequire muchof advertisingsince it’s awellestablishedbusinessThey do notrequire muchof advertisingsince it’s awellestablishedbusiness4Since we are astartup we areyet to beregistered in theminds of a lot ofcustomers-Short duration ofthe business is aweaknessStrong ImageModerateImage5Limited10-15 Years ofCulinaryexperience14CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secretinformation and is shared only with the understanding that you will not share its contents or ideas withthird parties without the express written consent of the plan author.
Yum Yum CakesOur marketing needs to be aggressive compared to competitors. Social media evens outmarketing reach between competitors.NicheNiches for our two primary services areCorporate Customer Base Provide healthy and unique food at affordable pricesStorefront Business Unique recipesSmall joint atmosphere – we connect with our clients15CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secretinformation and is shared only with the understanding that you will not share its contents or ideas withthird parties without the
Yum Yum Cakes i CONFIDENTI CONFIDENTIAL - DO NOT DISSEMINATE.This business plan contains confidential, trade-secret information and is shared only with the underst
Figure 11: Bakery functionality in NES 16 Figure 12: Bakery Management Style in NES 16 Figure 13: Bakery Machines in NES 17 Figure 14: Bakery Production in NES 18 Figure 15: Bakery Functionality Rate in NES 18 Figure 16: Bakery Support Needs in NES 19 Figure 17: Bread Availability in NES 19 Figure 18: Subsidized Bread in NES 20
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Thus, a bakery management system was developed to help the bakers with managing the daily activities of the bakery. With the bakery staff's educational background in mind, the bakery management system was developed with a decolonized view, considering the utilization of images and symbols rather than text and numbers. .
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