Owning a small bakery in the Philippines is perfect for early risers who love making and sharing delectable treats. From Filipino recipes like ube cheese pandesal and coconut macaroons to world-renowned classics like red velvet cupcakes and Bavarian donuts, you can sell a lot of stuff that’ll make your customers return for more.Use these small bakery business tips ― from marketing to sticking to your small bakery business plan ― to grow your small bakery business in the Philippines in no time.
Small Bakery Business Tips
Here are the top ten tips for small bakery businesses in the Philippines:
Small Bakery Business Tip #1: Market your bakery the right way.
Marketing a small bakery business in the Philippines doesn’t have to be fancy at first. But there are a few things you have to keep in mind when doing so.
For one, you need a website or page through which customers can order. If you don’t have the resources to build a full website yet, consider interacting with potential customers through social media platforms like Facebook, TikTok, and Instagram.
Remember, many customers will look at your business online before they even set foot at your store. Whatever platform you choose, make sure your menu and hours of operation are always accurate so people know what to expect from your bakery.
Marketing a bakery also includes a lot of food photography. Remember how you drool at food online because they’re presented well? You can use the same technique to draw in customers.
Use photos and videos that clearly show what you have to offer. Publish them on the right channels and make sure you’re hitting your target market right in the feels. The same goes for promotions, like raffles, end-of-day discounts, free samples, or buy-one-take-one deals. Remember that promotions do best if you inform your target customers about them.
You can give free samples to visitors and walk-in customers. If your products are delicious, captivating, and readily available, customers will more likely buy what you offer for free sampling. So always leave treats out on the counter for the customers to try for free.
Social media is also a great place to start— Instagram and TikTok are visual platforms perfect for showing off your delectable bakery products. You can also try email marketing, collaborations, event sponsorships, and brochures. Try one strategy at a time and take note of what’s working and what you need to improve. If you don’t know where to start, check out this free, pandemic-proof marketing plan for bakeries. You can also check these digital marketing tools for bakeries. Most of them are free!
Remember, the more marketing options you have, the more likely you are to attract your target market. This is especially crucial if you’re in an area with lots of foot traffic and competition.
Small Bakery Business Tip #2: Hire and train the right people.
If you want your small bakery in the Philippines to succeed, you have to hire and train the right staff.
You see, hiring people isn’t enough. You also have to constantly train them to be the best staff for your business. Training employees help your bakery function smoothly. It helps them familiarize themselves with your recipes, baking techniques, and the like.
Additionally, hours are difficult for bakers, managers, cashiers, and the like, so you have to make sure that you hire the people cut out for the job. For instance, bakers often have to open shop at 4 AM to get the bread ready for the morning rush. Hence, finding experienced bakers can also be a challenge. But as long as you have one great baker on staff who’s willing to train the others, hiring junior bakers can be a great strategy.
Remember, without delicious baked goods and customer-friendly service, a bakery can’t succeed. That’s why it’s crucial to treat your staff well and pay them a living wage for your area, even if it means paying above minimum wage. Giving good pay and benefits like health insurance are among the most effective ways to motivate your staff and make them feel appreciated.
Small Bakery Business Tip #3: Track ingredient costs properly.
One of the main reasons why small bakeries fail is they fail to track food costs.
As a small bakery business owner, you have to buy a lot of baking ingredients and keep them in stock. As a result, it’s easy to lose track of how much you spend on ingredients. The same goes for overhead expenses like salaries, rent, and marketing budgets.
As a result, you should sit down and carefully analyze your expenses versus revenue. Remember, one of the most common downfalls of small bakeries is accidentally spending more than they earn. Please don’t let that happen to you.
Make sure you’re making a profit off of all the items you’re selling. If not, consider increasing your prices or finding more affordable ingredients. If you want affordable baking ingredients without compromising the quality of your products, check out HICAPS’ bakery ingredients here. You can also use our store locator to find a dealer near you.
Regardless of your approach, always look at your financial data to determine your daily, weekly, monthly, and yearly expenses. Then, find ways to stay profitable, like phasing out products that don’t sell or raising your prices.
Small Bakery Business Tip #4: Get the right equipment.
Bakery equipment makes up a huge part of your investment. But even the best bakers in the world can’t make it without the right baking tools and equipment. As crucial as having equipment is, choosing the right baking equipment will make a huge difference. The right equipment means efficiency, consistency, and high quality. They can also help you save money in the long run.
When choosing a bakery tool or equipment, always ask yourself if it can make things more efficient. An efficient bakery should be easy to use, reliable, and able to save money on labor costs.
For instance, a machine can roll dough quickly, rolling 10 to 15 batches of dough in an hour. Can you do that by hand? If not, then consider getting the equipment. But, if this machine is hard to set up for different thicknesses and dough types, you might waste a lot of time getting it to work. So, the troubleshooting may take more time than the machine’s worth.
By understanding the needs of your small bakery in the Philippines and investing in the right equipment, you can grow your business in no time. They won’t just make your and your staff’s work easier, but they’ll also take your products to the next level.
Small Bakery Business Tip #5: Use technology to manage your bakery in the Philippines.
We’re no longer in an era where you have to run a bakery with pens and paper. We’re also no longer in an era where you have to rely on spreadsheets for everything. Technology offers a lot of digital benefits for your company. Unlike in the past, you can now view your inventory, monitor ingredients, and the like with just a few clicks.
Technology has taken businesses to new heights, so you should do, too. A bakery POS (point of sale) is one of the most important things your small bakery in the Philippines should have. It simplifies operations, from time pricing and staff management to sales and accounting.
Keeping details of your business online also makes tracking easier. You don’t have to use paper and risk losing records in a small fire. Incorporating modern features into your operations can also improve your customer service, setting you apart from your competitors.
Small Bakery Business Tip #6: Carefully consider your bakery’s design.
From a customer’s point of view, going to a small bakery means enjoying the atmosphere. While many small bakeries in the Philippines don’t care much about the design of their store, please care about yours.
Make going to your bakery a treat for your customers by creating a beautiful atmosphere they can enjoy. Remember, you can amaze them not just with your treats but also with your bakery’s exterior and/or interior design.
Your small bakery business in the Philippines should be inviting enough if you’re only selling baked goods. If it’s a bakery that lets customers sit and eat inside, make sure you create a cozy atmosphere. You can put artwork on the walls, nice vases, and other decor to make it homey.
Bakeries can also follow different themes. Some have rustic vibes, while others have minimalist and open atmospheres. Whatever design route you choose, make sure your pastry displays and fridges are always clean and appealing, with lighting that makes each treat look delicious.
Pay attention to signage, too. Install a nice large sign outside your small bakery in the Philippines to catch people’s attention. Then, place signage inside your shop so your customers know the different sections of your bakery.
Small Bakery Business Tip #7: Keep a close eye on your overhead expenses.
Aside from underestimating food costs, many small bakery owners underestimate overhead costs.
You see, most small bakeries rely on neighborhood foot traffic and passers-by to buy their baked goods. For this reason, finding the perfect location is crucial. However, an ideal location often means paying premium rent. So, do your due diligence before you sign on the dotted line. Make sure you can afford the rent for the next few months or until you make a return on investment.
Aside from rent, you should also carefully track other overhead costs like staffing, utilities, internet, insurance, and inventory. Overhead refers to the cost of the things you need to pay regardless of whether the bakery is operating or not. Track these expenses often because most of them are fixed. If you can’t do it yourself, consider hiring someone to do so.
Small Bakery Business Tip #8: Follow your small bakery business plan.
One of the things that many people overlook is a small bakery business plan. While it’s not required that you create a small bakery business plan before jumping into business, having one means that you’re more set up for success. In addition, many entrepreneurs have business plans, but they often fail to follow them. While things may change, and you have to consider shying away from it, a small bakery business plan helps you stay on track.
It outlines your goals and helps you visualize how to achieve them. Your small bakery business plan also helps you with your company’s structure, financial projections, marketing, and overall business approach. In short, it’s your primer on how to start a bakery business.
Small Bakery Business Tip #9: Build relationships with vendors and suppliers.
Your relationships with vendors and suppliers matter if you want to succeed. They supply your ingredients and other items to make your products and packaging stand out. You must also place orders frequently, so you must build good relationships with them.
Having great relationships with vendors and suppliers helps you make better business deals. They can even help you with last-minute orders, such as when you need to make hundreds of cupcakes for a last-minute event.
Small Bakery Business Tip #10: Have a unique logo, name, and packaging.
Branding is one of the most often overlooked things in starting bakeries. However, it’s one of those things that go hand-in-hand with your marketing. Without good branding, your marketing efforts will suffer. And without good marketing, your band will suffer.
Another mistake that small bakery businesses in the Philippines make is making their own logo, name, and packaging without brainstorming. These three things are crucial to creating a brand that will last for decades, so you can’t take it lightly.
Unless you’re a branding expert, we suggest you reach out to professionals to help you. If you don’t have the budget for it, use the internet for inspiration. You can also check out these bakery logo ideas, bakery name ideas, and bakery packaging guides that we made for startups like yours.
Frequently Asked Questions
How can I be successful in a bakery business?
You can be a successful bakery business owner by having the right business plan, staff, equipment, and marketing.
How can I make my bakery more profitable?
You can make your bakery more profitable by tracking your costs and releasing unique products for your target market.
How can I increase sales in my bakery?
You can increase the sales of your bakery by having amazing branding, extensive marketing, and excellent customer service.
Conclusion
Operating a small bakery business in the Philippines is not an easy feat. But with the right strategy, you can grow your business, making your treats reach more people who need and deserve them.
So print or bookmark this guide, and don’t hesitate to come back to it when you’re at a bakery business crossroads. All the best!
About HICAPS
Over the years, HICAPS has helped bakers and businesses make delicious products by offering ingredients like ChiffonAide Cake Oil, Magic Whizk Whipping Cream, Red Velvet Flavor Emulco, and Instabake Brownie Mix.
HICAPS also provides tools and resources to valued partners, such as the free “How to Increase Your Sales Amidst the Pandemic” E-book and free dealer locator that helps look for baking ingredients near me.
Want more free tips and tutorials? Follow us on Facebook at Hicaps Mktg. Corp. and on YouTube at HicapsTV.Want to be one of our valued partners? Fill this form out. Looking forward to talking to you soon!
