The packaging cost will depend on what products you are selling and what quantities to start with.Įquipment – You need some equipment to get the cupcake baking job done. Your cupcakes need to packed in pretty little packages, so you have to make provisions in your budget for this. The good thing here is that this is a one-off purchase. You can keep your budget at between $150 to $200 depending on the size of your sales.Ĭupcakes are beautiful creations, so you must spend some money on some good decorating tools. Decorating Tools you probably need to purchase are – piping bags, nozzles, simple fondant cutters, fondant smoother, electronic scales, etc. Ingredients are generally purchased from week to week, just buying what you need. Ingredients are a major continuous cost when running a cupcake bakery. While this may not be compulsory, but you need to be certified so your customers would be more comfortable buying from you.
Food Supervisors Certification – $100 (once off cost).The rest you can pick up as time goes by. That is basically all you need to get started.
#Occupation cupcake baker adding ingredients license
Starting a cupcake business requires a Food License (including a Food Safety Certificate), Insurance, Packaging and Ingredients. Joining a franchise is another way to get into the cupcake bakery business, but you should know that this would cost you a whole lot because you would be buying into a successful business. To startup, the most pertinent cost for you to consider include: securing a lease for a physical store purchasing supplies such as mixers, bowls and storage containers getting personnel food and ingredients and furniture and decor.įor smaller bakeries, the expense breakdown should allot 25 percent of funds for ingredients and packaging, 35 percent of the money for labor, 30 percent to pay for overhead (rent, bills, etc.) and 10 percent for profit. If this figure is on the high side for you, and you just want to start a small cupcake bakery by the street corner, you may get lucky enough to kickoff with $2,000 if you can plan your expenses properly. Research has put the average cost of setting up a cupcake bakery at between $10,000 and $50,000. The Estimated Cost Breakdown to Start a Cupcake Bakery
For the avoidance of doubt, here is is what it would cost you to start up your cupcake bakery. If you are new to the industry and you are trying to open up your bakery, you should know that you would need a little bit more equipment to start off than you will need when baking from your home kitchen. When it comes to pricing, you can take a look at what your competitors are charging and also take your production costs into consideration. You can make money on your cupcakes by charging enough to cover the overhead to make the treats. If you are targeting the big money, then you have to open a standard bakery, even if it is a small one.īefore opening a physical store to sell your cupcake creations, you may want to start off selling your treats online or at local events to get more acquainted with the business. But of course, this wouldn’t make you tremendously rich. It is quite easy for a seasoned baker to whip up some batches and start selling from home. Cupcakes are beautifully decorated delicious little confections.
Do you want to start a cupcake bakery and want to know the cost? If YES, here is a cost breakdown for opening a cupcake bakery and the profit margin/ROI.
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