The bakery industry has been growing in popularity in recent years, so much that in China, it has 10% of the food and beverage market share. This spike in growth owes to increasing demand for western cuisines in major cities, worldwide. Other known drivers are locals’ changing lifestyles, high standards of living, and ballooning disposable incomes.
According to research, the bakery industry generates yearly revenue of $30 billion and is expected to be worth $436.91 billion by 2026. This statistical data points to a robust market, in which any interested individual can participate. And what better way to start a business in this sector than to go completely digital?
Despite the financial promises this delivery service holds, getting started with one is no walk in the park. However, with the right tools and information at hand, it can be a breeze. That said, let’s get the ball rolling.
An online bakery delivery service is a business that allows customers to order and receive baked goods via the mail or the internet. Such lip-smacking goods include rusks, cakes, pastries, bread, rolls, and biscuits. Their baking process entails heating them in an oven. Once ready, the products are packed and sent off to their final destination.
Food lovers use these services for a myriad of reasons. Some use them as a convenient way to get their favourite baked goods without having to leave home. Others use them as a way to try different types of baked goods that they may not have access to in their local area. And still, others use them as a way to save money on their baked goods.
The beauty of an online bakery delivery service is its easy, hassle-free process. Bakers need not go through the headache of building brick-and-mortar stores to sell their products, a common practice with traditional businesses. Anyone can get started from the comfort of their kitchen, provided they have:
- A reliable computer
- A stable internet connection
- A user-friendly site, and
- An enthusiastic team
Furthermore, this type of business can be run by one or many bakers.
Steps Required to Launch an Online Bakery Delivery Service
Baking has always been a popular pastime in history, and with good reason. The right type of baked goods can create amazing memories, which is why bakers are now more willing to share their talent with a wider audience, including those on YouTube and Facebook.
Although the business model is clear-cut, it is not without its challenges, which is why it’s important to prepare well before going in. The steps below lead the way into this lucrative industry.
Have a Plan
Developing a solid business plan is not only a brilliant idea; it is required for the operation and sustainability of any business, especially one like this. In this case, the business plan captures the bakery’s vision, market, competition, goods, and goals. It’s in place to help bakery entrepreneurs stay focused and make wise decisions throughout the process.
A business plan outlines all aspects of the bakery, including its financial, operational, and managerial sectors. It covers everything, from selecting the ideal location to hiring the right team.
Register the Bakery Business
Most cities and countries require a license for businesses operating online. The registration process varies based on location and is usually handled by the state agency. To obtain this license, a baker must meet specific criteria, one of which is to comply with the Department of Health’s cottage food laws.
The laws determine whether the baker is fit to bake commercial food from home or set up a formal bakery. They evaluate the following areas:
- Health and safety
- Food hygiene standards
- Food handling
- Sales privilege
- Fire safety
Upon fulfilling these criteria, the baker is then licensed to run the bakery business. In most instances, bakers can use their personal names for business registration. However, it’s always prudent to use an actual business name for the sake of brand consistency.
Set Up an Online Presence
Once the business is registered and the kitchen is ready, it’s time to set up a website, which acts as the face of the business. The website should contain information about the bakery, its location, hours of operation, products offered, customer service, and much more.
It’s advisable to include photos and videos to engage the customers and give them a sense of what to expect. Each of the baked goods can have separate pages, as well as customer testimonials. Social media accounts come in handy as well.
Running an online bakery requires a reliable delivery system. This way, customers get to enjoy their favourite baked goods without ever stepping foot from their homes or offices. There are, therefore, several factors to consider:
- Having the ideal baking equipment and ingredients for the business
- Knowing the time required to bake and package each product
- Taking into account the delivery mode
- Setting prices based on overhead costs (Baking, delivery, and hiring)
Each factor is crucial to the online bakery delivery service’s success. In particular, delivery rates must be competitive to keep customers happy.
Search and Create In-Demand Recipes
Successful bakers learn the art of creating, marketing, and selling delicious baked goods. They conduct market research on what type of baked goods customers are currently looking for and create them. So, a good start is to learn top recipes from credible cookbooks.
Apart from offering traditional baked goods, bakers can experiment with recipes to create “specials” on their à la carte menu to make their brand stand out from the competition.
Determine the Mode of Delivery
Cost-effective delivery is essential.Online baking requires a personal touch, so start with small batches as they require smaller delivery trucks and result in faster deliveries. There are third-party delivery services that get the job done efficiently and economically.
Market and Promote the Business
The most successful businesses are those with an active online presence. Social media is a wonderful tool for promoting baked goods, interacting with customers, and gathering feedback. Sites, like Facebook, Instagram, TikTok, and YouTube help bakers push out their content, from how-to baking videos to special offers. Ad campaigns like social media posts, newsletters, and emails promote online visibility, as well.
Online baking is an exciting industry that’s filled with endless possibilities. With the above-discussed tips in mind, anyone with a passion for baking can get their hands dirty and get cracking!