It seems Americans can’t live without bakery products. Data gathered by Order Nova revealed that retail sales could increase by 5.5% annually until 2021. These products will account for 2.1% of the gross domestic product. It’s about a whopping $311 billion contribution to the US economy.
The competition in the bakery industry, though, is fierce. Now is the best time to learn what it takes to edge out the others.
- Invest in Commercial and Industrial Equipment
For bakers, that KitchenAid mixer won’t cut it once they dream big. They need pieces of equipment such as a commercial or industrial dough mixer. These assets are reliable, efficient, and durable. Most of all, they can handle mass production.
The acquisition costs can be high, but businesses can recover it fast since they can now churn out cakes, muffins, and bread at a faster rate. The equipment can decrease labor hours and even overhead expenses. They can also make the bakery more competitive. They can reduce the unit cost, driving the prices of their products down.
- Apply for Small Business Administration (SBA) Loans
Business loans are not equal. Some of these are ideal for more prominent companies and established businesses with considerable assets or profit. Growing bakeshops might not qualify. Even if they do, they might eventually struggle to pay high-interest rates and short payment terms.
For those who wish to borrow capital, they can consider Small Business Administration (SBA) loans instead. The specific program depends on the approved or authorized lender. Often, the business owner can borrow between $500 and $5.5 million.
Bakers can then use the funds to increase their working capital, improve their cash flow, or even buy better equipment, such as an industrial dough mixer. In times of calamity or disaster, the SBA can extend relief programs.
- Do Local Search SEO
These days, businesses, including bakeshops, can benefit from digital marketing. After all, billions of people use the Internet, and millions of them are active consumers. They buy stuff online and use the information they read to make buying decisions.
One of the underrated strategies is local search SEO, a process of optimizing online marketing efforts based on the target market’s geographical location.
According to HubSpot’s compiled data, nearly half of all Google searches pertain to local information. Meanwhile, 88% of local searches on a mobile device resulted in a call or even a visit to the store within 24 hours. Most of all, 18% of these mobile phone searches closed a sale within the day.
For local SEO, bakers might have to work with the experts. However, if there’s one thing they can do, it’s to claim their My Google Business Page. It offers the following benefits:
- It increases the business’s online reputation.
- It allows customers to leave feedback.
- It helps in further optimizing the bakeshop’s website.
- It allows business owners to add a map of the store’s location. Many online consumers ended up visiting stores within five miles.
- Offer Healthy Bakery Products
More Americans are paying attention to their health and are willing to spend money on healthier choices. Take gluten-free products, for example. Grandview Research forecasts that this market segment could grow by almost 10% annually from 2020 to 2027.
Meanwhile, Technavio revealed that the global demand for healthy bakery products could grow by 4% until 2022. Factors such as higher disposable income and changing lifestyles will encourage the consumption of organic baked goods.
The bakery industry can look forward to many opportunities for growth, but businesses need to be cautious with the competition. They can start with these ideas.