What are the economics behind par baking? Let's assume you're
currently selling a scone for $3 and that the item costs you $1.50. You find a par-baking scone you like that costs you $1.25, but going the par-baking route will require you to purchase a small convection oven for $800. Let's also assume that you currently sell 10 scones per day and that you throw away an average of four. By par baking, you plan to reduce that waste to two scones per day. Here is how the financials break down:
Sales
Cost of goods sold Profit before waste Waste
Daily profit
Pastry delivery $30 $15 $15 $6 $9
Par-baked pastries $30
$12.50 $17.50 $2.50 $15
By par baking, you get an additional $6 per day of profit off
scones alone. If you also bake croissants, muffins and cookies with similar results (lets assume $6 per item), you could bump profit by $24 per day. An $800 convection oven would pay for itself in just over a month ($800/24=33 days). Of course, you need to consider space and training when looking
at par baking, but in many cases the upfront costs will be worth the extra sales and reduction in waste.
GOT A HUNCH ABOUT LUNCH? Another common debate shop owners have with themselves
is whether or not to move beyond baked goods and offer larger, lunch-worthy items. First, ask yourself how much lunch business you can do. If most of your morning customers are commuters,
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