A whole decorated cake on a cake stand with a piggy bank next to the cake

5 Tips For Bakers to Save More Money

Here are some tips that can help you keep your spending on a tight leash.

It is a common misconception that quality always comes with a price. Many of us link saving money in running the food business to compromised quality. This is an absolute lie that probably has been hindering your savings. A baker turned entrepreneur is constantly juggling with expenses. Running a Bakery is not a cakewalk, and managing expenses makes it even more difficult.

chef in kitchen

1. It All Begins in the Kitchen

Always start with the kitchen, when it comes to implementing your cost-cutting policy. Wastage of food is the major cause of rising expenditure in the bakery. As a baker, you tend to over-prepare yourself causing food wastage. Prepare a checklist that contains the amount of prep your staff needs to do every day. This checklist will help you control the unnecessary food wastage that is taking a toll on your expenses.

A couple of chefs sitting down with a piece of paper planning

2. Keep Your Staff in the Loop of Things

You are only as good as your employees’ work. Hence, discuss and share your cost-effective policy with your employees as well. Every person assisting you in the bakery should know about the changes you're planning to implement. Speak to them about food wastage, and how they can help you tackle it. Make them aware of the potential problems that the bakery is facing. Plan with them the possible profits that the bakery can achieve by resolving those issues. Acknowledge and reward your staff as they help you grow, save and meet your targets.

A person sitting with a notepad on their lap writing notes with a calculator next to them

3. Stick to Your Monthly Budget

Grocery, electricity bills, rent, salaries, payments to the vendors, delivery charges, packaging cost, the list goes on. This is where budgeting comes into the picture. Creating a feasible budget saves you from making unwarranted expenses. Stick to the allocated amount, and spend your money frugally where you can. When you keep an account all spends you will also realise where you tend to overspend. For ex. you may save on electricity by not need the lights on if your shop receives ample daylight but you will need a 24/7 refrigerator. Cut down wherever possible without compromising quality or service.

A bakery worker counting inventory while holding a notebook

4. Keep An Eye on Inventory

Tracking your inventory is a crucial part of the bakery business. Over ordering or ordering extra is a common phenomenon in every food business. It is a run-of-the-mill sight to find extra items on the shelves or drawers of the pantry. This often leads to the spoilage of food with a lower shelf life. Reducing food wastage lowers the cost involved in managing the bakery. List down the cost and expiry date of every ingredient or recipe and set up a template for the same in an excel sheet. This spreadsheet will offer you the convenience to calculate and compare the cost and life with all items.

Decorated cake popsicles

5. Don’t Waste in a Haste

Creating desserts from the leftovers is a delicious way of cutting down on your cost. Leftover cookie dough, bread loaves and frosting that can be reused to create some fabulous dishes et al. You can convert your extra loaf of bread into bread crumbs, croutons, bread pudding, and french toast. Make use of leftover buttercream frosting as filling for your muffins or tarts. Transform your cookie dough into a simple ice cream dessert or mini waffles. Don’t waste in a haste! It's time to innovate and recreate delectable pieces of desserts with the remaining contents.

Taking cost-effective measures at the right time can help you grow your baking business in a short period of time. All you need to do is evaluate, make a plan and control wastage.