From bread on supermarket shelves to delicious coffee shop pastries, commercial bakeries are the source of many of the baked goods around us. But what exactly is a commercial bakery? How do they operate? And how is a wholesale bakery different from a retail one? We’ll attempt to answer these questions in the following paragraphs. If you plan to open a bakery or wish to grow your business to also sell baked goods, make sure to check our posts on starting a bakery business and how to create a bakery business plan.
Key takeaway: A commercial bakery is a type of business that specializes in B2B sales of baked goods. Some wholesale bakeries also operate retail locations where they sell products to end customers. A commercial bakery partners with businesses like restaurants, cafes, and hotels. Most Wholesale bakeries also offer white-label services and contract manufacturing.
What Is a Commercial Bakery
Commercial bakeries are often called wholesale bakeries as well. These are businesses that specialize in wholesale sales of different types of baked goods. Most of them sell only to businesses such as coffee shops, grocery stores, or companies in the hospitality and restaurant industries. However, some commercial bakeries also sell their goods to retail customers. In addition to bulk deliveries of pastries, bread, and other baked goods, a commercial bakery might also offer various services. For example, they might specialize in contract manufacturing or white-labeling services. These services can be used by various businesses that wish to scale and grow without investing a lot in expensive bakery equipment.
Products Offered by Commercial Bakeries
The range of products offered by a commercial bakery might vary significantly. Some of them specialize in only a single product category (such as bread). Others aim to offer a wide variety of baked goods in order to attract customers in different fields. Let’s examine the main product categories offered by wholesale bakeries.
- Bread. From common white bread to specialty products like gluten-free bread loaves, commercial bakeries offer various types of bread suitable for everyday consumption, sandwiches, or restaurants.
- Buns and rolls. They are used for hot dogs, burgers, or to accompany meals.
- Savory pastries. Coffee shops and other businesses offer a wide variety of savory baked goods that are an excellent choice for a healthy breakfast. These items are often supplied by a commercial bakery.
- Desserts and sweet pastries. Cakes, eclairs, donuts, and other sweet pastries are ordered in bulk by various businesses.
- Packaged baked goods. This category includes items such as cookies, granola bars, and crackers. They are ordered from small businesses such as vending machine operators and by large ones such as grocery stores.
- Custom products. Although commercial bakeries are primarily associated with bulk baked goods with little or no customization, some wholesale bakeries specialize in custom products. This might include branded items such as cookies with a company logo or wedding cakes and pastries for special occasions.
- Frozen products. The easiest way to extend the shelf life of baked goods is to freeze them. That’s why a commercial bakery might offer frozen buns, pizza crusts, or croissants. Some wholesale bakeries also sell frozen dough in bulk.
Retail VS Commercial Bakery
The main difference between retail and wholesale bakeries is that the former serves primarily end customers while the latter sells primarily to businesses. These bakery businesses have a lot of differences when it comes to acquiring customers, investing in equipment, creating menus, and various other aspects. It’s possible for a retail bakery to scale its business and also offer baked goods wholesale. In recent years, both retail and commercial bakeries have invested a lot in eCommerce and digital marketing channels. For example, a commercial bakery might sign up for BlueCart in order to offer pastries on BlueCart’s marketplace platform easily. Selling baked goods online is a great way for a retail or commercial bakery to increase its revenue, but a large percentage of sales are done at physical locations. In fact, customer preferences online and at-premise might differ significantly.
Commercial Bakeries VS Broadline Distributors
Businesses that wish to purchase bulk baked goods can either partner with a commercial bakery or order them from broadline suppliers. A lot of companies prefer the latter since it’s a more convenient option. Broadliners can also deliver products in various other categories. However, working with a wholesale bakery is often a better choice for companies that want customizations and partnership with a bakery that specializes in pastries or bread. Coffee shops or other small businesses might prefer to work with a commercial bakery instead of a broadline distributor because of their flexibility. Broadliners often have high minimum order quantities or other terms that make them a suboptimal choice for small businesses.
Frequently Asked Questions about Commercial Bakeries
You’ll find various informational resources and articles on BinWise and BlueCart. We regularly share tips and advice for entrepreneurs and business owners in different niche markets. Below we have answered some of the commonly asked questions regarding commercial bakeries and their business.
What Services Do Commercial Bakeries Offer?
The main service offered by wholesale bakeries is related to bulk deliveries of fresh or frozen baked goods. Often these deliveries are regular and of similar quantity. For example, a hot dog stand business can forecast how many buns they’ll need a week. In other cases, the orders are custom and include various items. For example, cafes that order wholesale pastries for coffee shops might switch their menus based on the weekday or the season. A commercial bakery can also offer white-labeling services, co-manufacturing, or co-packing. These services can be used by various types of businesses.
How to Choose a Commercial Bakery?
When choosing between different wholesale bakeries, pricing and flexibility are among the most important factors to consider. That includes flexible deliveries, good minimum order quantities (what is MOQ), and affordable wholesale prices. Some businesses prefer to partner with a commercial bakery that specializes in certain types of baked goods such as French pastries or cakes. In other cases, it might be better to choose a wholesale bakery that specializes in bread. Another important factor when picking between commercial bakeries is whether they have integrated technologies that make ordering wholesale products easier.
Are Commercial Bakeries Profitable?
Yes. Operating a commercial bakery can be a profitable business endeavor. A lot of commercial bakeries also have a retail part of their business. For example, the main production facility can prepare and deliver freshly baked pastries to coffee shops or small stands for baked goods that don’t have enough space to bake their own items. These additional locations can be under the same brand or a different one. Commercial bakeries can become more profitable if they invest in modern bakery technology that saves energy and improves their productivity. Bakery marketing techniques are also important in order to find new customers. Check out our guide on opening a bakery.
BlueCart: The Wholesale Ordering Software for Every Commercial Bakery
Whether you want to offer your baked goods to a wider audience or wish to automate certain business processes, BlueCart can be the right solution. Our software helps wholesalers increase their B2B sales and allows buyers of bulk goods to easily find suppliers in various fields. Schedule a free demo and witness the power of our wholesale ordering software today!