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How To Start a Bakery Business in the Philippines: A Beginner’s Guide

Pinoys love to eat bread. It’s a staple food in the country second only to rice. For this reason, the bakery business in the Philippines is one of the most profitable ventures you can invest in.

Let’s find out the ins and outs of opening a bakery business in the Philippines and whether or not it’s the right business idea for you.

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Table of Contents

Who should start a bakery business, 1. monthly rent, 2. equipment, tools, utensils, 3. ingredients.

• 4. Delivery Vehicle (Optional) 

a. Cost of Utensils

B. equipment, c. raw materials/ingredients, how much does a bakery business earn, 1. evaluate the reason why you want to open a bakery business, 2. take up baking courses, 3. perform basic market research, 4. find a good location, 5. decide whether to franchise or go on your own, 6. secure the required permits and certifications, 7. start small, 8. buy baking equipment, 9. know your ingredients, i. direct cost, ii. indirect cost, iii. production cost, b. sample product pricing (pandesal business), 11. hire employees, 12. learn how to innovate, tips and warnings.

Full-time entrepreneurs with experience in baking either through a previous job in a bakery or paid hands-on training.

How Much Capital Is Needed To Start a Bakery Business?

Initial investment ranges from ₱50,000 to ₱ 150,000 depending on the monthly cost of rent, equipment, utensils, ingredients, and business permits . Let us discuss every expense you will incur as you start your bakery business.

Unless you have your place, rent will be one of your bakery’s fixed costs. If you’re aiming to place your business in an urban city or populated areas like malls, schools, churches, or jeep/bus terminals, you need to prepare at least ₱10,000 for rent. 

Meanwhile, rental fees are much cheaper in rural areas, towns, or small barangays which might cost only at least ₱5,000. 

You must have a budget of ₱40,000 – ₱100,000 for baking equipment 1 . Estimated prices of some baking equipment are listed below.

• Stainless gas ovens with 2 – 12 plates cost ₱18,000 to ₱30,000
• Stainless steel banca ( pasong ) costs ₱3,500 to ₱5,000 depending on sack capacity
• Display rack ( estante) costs at least ₱10,000 to ₱16,000. You can also purchase smaller bread racks that cost ₱3,500 – ₱4,000
• Dough roller costs ₱35,000 and above depending on horsepower
• Other baking tools and utensils include rolling pin, dough cutter, weighing scale, measuring cups, spoons, and spatula with a total cost of not more than ₱2,000. 

There are stores that sell baking equipment packages which are usually cheaper than buying one at a time. Furthermore, you may also consider acquiring second-hand equipment from previous bakery owners as long as they are still in good shape. 

These include flour, sugar, egg, and salt which might cost you not more than ₱2,500. 

4. Delivery Vehicle (Optional)

You may also want to invest in a motor vehicle that enables you to deliver your bread products. A motorcycle together with a sidecar is priced at least ₱90,000.

Sample Breakdown of Investment Requirements (Pandesal Business)

The total capital needed to start a bakery business also depends on what type/s of bread you’re planning to sell. If you’ll exclusively sell plain or malunggay pandesal, for example, the cost to put up the business will be significantly lower since its ingredients are inexpensive and readily available (see the table below to have an idea of how much money you need to start a pandesal bakery).

What Are the Pros and Cons of Having a Bakery Business?

• Filipinos love to eat bread any time . At breakfast, they love eating pandesal and monay with a hot cup of coffee. Come merienda time, they usually snack on sweeter bread varieties like ensaymada, mamon, cheese bread, and pan de coco, washing it down with a cold bottle of their favorite soft drinks.  If you are to open a bakery business in the Philippines, bread and beverage are the perfect combos to sell.
• You have ready buyers regardless of the social class you’re trying to target. For the masa , classic Filipino bread is a proven best-seller. The higher-end market, on the other hand, buys more expensive varieties like hamburger buns, French bread, and cinnamon rolls.
• People buy convenience. The working class is too busy (or broke) to sit down in a fine dining restaurant to eat. They want an affordable food product to satisfy their cravings like bread that they can easily buy from a bakery and bring wherever they go.
• It’s more demanding than a food cart business or other food businesses that require smaller capital. Apart from the initial investment, you also have to invest a lot of your time, dedication, and patience to see through the tough times. That’s why people who start a bakery business in the Philippines without any passion for bread-making rarely succeed.
• With lots of bakeries around, setting up a new one means facing a lot of competitors. It might be challenging to offer something new or high-quality to entice potential customers.

Earnings from a bakery business depend on your daily number and type of bread produced, number of sales, and the cost of ingredients used. Generally, the minimum profits of a small bakery business range from ₱1,000 – ₱2,500 per day.

For instance 2 , a bakery with 1 sack of first-class flour (25 kilos) can create a 50-kilogram dough that can produce around 1,670 pieces of pandesal (assuming each piece is at least 30 grams). The average market price of pandesal is ₱2, so if you use one sack of flour per day to produce pandesal , your total revenue is around ₱3,400. The estimated total cost of ingredients used for this amount of pandesal is ₱1,900. Hence, the profit from a sack of flour of pandesal per day is around ₱1,500.

If your bakery produces a variety of bread types, there is a higher chance of earning more. You can pump up your profits up to ₱2,500 daily 3 . However, beware of the risk of experiencing a loss due to additional ingredient costs if you’re planning to produce more bread types.

How To Start a Bakery Business in the Philippines: 12 Steps

Running a bakery business in the Philippines is challenging.

Money is not the be-all and end-all of opening a bakery. You also need the knowledge capital that will help you manage the minute details of this food business.

If you’re just here for the money without the passion, training, and expertise needed, you might quit in the face of struggles. Know your purpose and start from there.

Starting a bakery business is different from baking cookies at home. You can learn the latter through YouTube tutorials and books about baking.

Baking for a lot of people, on the other hand, requires you to scale everything up.

People love to buy from bakeries that produce a hundred or thousand pieces of bread with the same taste. And this consistency can be achieved if you hire bakers who know about business-scale baking.

But what if one or all of your bakers suddenly quit? Unless you also know how to bake, your bakery business will inevitably stop operation.

Fortunately, there’s no shortage of schools or training programs that can teach you hands-on baking experience.

Flour mills provide free or paid baking courses as part of their marketing efforts. The knowledge and skills they teach are recommended for aspiring bakery business owners because their seasoned instructors teach not only hands-on baking experience but also the business side of it.

One month of training experience should be enough to equip you with the tools you need to start running a bakery business.

The following is a list of baking schools owned and operated by flour mills:

• A baking school in BF Homes, Parañaque City run by Pilmico Foods Corp .
• Maya Kitchen in Makati City is owned by Liberty Flour Mills.
• A baking school in Cebu City run by General Milling Corp.

If you’re planning to open a bakery that will exclusively offer pandesal, you can grab the training opportunities offered by these institutions:

a. Department of Science and Technology – Science and Technology Information Institute (DOST-STII)

Address: Gen. Santos Ave. Upper Bicutan, Taguig, Metro Manila

Tel. Nos.: (632)837.2191 to 95 / Telefax: 837.7520

Email: [email protected]

Website: http://www.stii.dost.gov.ph

b. Techno Learning Resources and Community Empowerment Livelihood Center, Inc. (TLRCE)

Address: Room 504, De Oro Bldg., EDSA-Boni Ave., Mandaluyong City, Metro Manila

Tel. Nos.: 84259217 / Mobile: 0998-791-7090 and 0917-378-4224

Facebook Page: TLRCE Livelihood Center, Inc.

Assuming that you’re planning to open a bakery business with small capital, you don’t need to spend a lot of resources on market research.

You can do it on your own by asking people about their favorite bread, observing their behavior, and studying the products and pricing strategies of your close competitors (if there are any).

The results of your market research should reveal the following:

• Your target market and the type of products that suit them . If you live in a rich neighborhood, serving French bread and other high-end varieties makes a lot of sense. However, it won’t work in a bakery located in Tondo or smaller barangays in provinces where people prefer pandesal and other cheap bread they’ve become accustomed to.
• Your competitors and how to differentiate your bakery from theirs. Competition is good if you look at it as a sign that there’s a demand for your product. In the case of bakeries, your competitors can help you understand whether there’s enough profitability, learn about the products that make them profitable and get ideas on how to make your bakery better than them.

In order for your bakeshop to flourish and recoup the initial investment faster, you must put it up in a residential area where there’s a great amount of foot traffic.

Ideally, the bakery business should be located where your house is, so you don’t have to worry about paying monthly rental fees. However, you can still rent a space as long as there’s enough foot traffic to justify it.

Good locations for a bakery business include:

• Near the entrance of or within residential areas with at least 2,000 households
• Jeepney, taxi, or tricycle terminals

In any food business, the first few months or years are always the toughest.

Without prior experience, you will be left to your own devices. Therefore, you are more likely to commit many mistakes along the way.

But with grit, you can get through this phase and let the experience become your teacher.

For starting entrepreneurs who want to minimize risks, you can franchise a bakery business with a ready system and proven track record.

Although the franchise fee may cost more, you will also worry less since packages–like the ones offered by  Kambal Pandesal 4 of San Miguel Mills–already include baking equipment, marketing support, and free site assistance and monitoring.

Each option has its pros and cons. Weigh the risks carefully and decide based on your level of experience and capital.

By legalizing your business, you can focus more on growing your business instead of worrying about the law running after you.

Related: How to Register a Business in the Philippines: The Ultimate Guide

Bakery businesses in the Philippines need all of the following permits and certifications:

• Business name registration in the Department of Trade and Industry (DTI) if you will run the business on your own (single proprietorship) or in Securities and Exchange Commission (SEC) if the bakery is owned by a partnership or corporation.
• Mayor’s Permit or Residence Certificate & Sanitary Permit from the local municipality where the bakery business is located.
• License to Operate (LTO) as a “food manufacturer” or BFAD Certificate from the Bureau of Food and Drugs (BFAD).
• Tax Identification Number (TIN) from the Bureau of Internal Revenue.

When putting up a bakery business in the Philippines, expect to incur several mistakes and losses in the beginning.

Hence, it’s a smart move to start with whatever little money you’ve got. It’s better to act on your ideas early even with limited resources than let perfectionism paralyze you.

One advantage of starting small is you are able to test the market and learn which products sell the fastest. You will also learn the nitty-gritty of starting a bakery business without the need to open a big business from the get-go.

Remember, it’s better to start a pandesal bakery and expand later on than to start big and downsize eventually for lack of business strategy.

As your business grows, so will you. And once you’re ready for expansion, you can buy more expensive equipment for mass production and add more bread products to your inventory.

A significant percentage of your capital will be spent buying baking equipment. Since you’ll be using them daily, you must meticulously choose products that can withstand daily operations.

Depending on the size of your bakery business and the type of baked products you’ll be selling, you’ll need all or some of the following baking equipment:

• Baking trays
• Bread crusher
• Bakery oven
• Dough mixer
• Bread slicer

To help you get the best value for your money, remember these suggestions when shopping for baking equipment:

• Explore your options. Compare products in terms of price, features, and technical support. Don’t settle on one product right away without talking to different dealers.
• Buy equipment based on your daily target output. If you will be baking 1,880 pieces of pandesal, for example, you need a mixer and an oven that both can handle and process one bag of flour.
• Choose baking equipment made by local manufacturers since they can offer technical service immediately in case the equipment breaks down. In contrast, not only is imported equipment more complicated and expensive, but its manufacturer is also more likely based abroad and won’t be able to provide technical assistance right away.
• When buying second-hand baking equipment, ensure their quality is still up to snuff. One option would be to buy used equipment from baked shops that have recently expanded. Since they’ve used their old equipment for years, they can attest to their quality and offer them to you at a great discount.

The quality of the ingredients you use affects the price and taste of the baked products. Fail to pick the right ingredients, and your products may end up too bland, too expensive, or both.

In terms of cost, the price of baking ingredients fluctuates depending on demand and competition.

To keep the price of your baked products affordable despite the unpredictable market, choose locally-produced flour instead of imported varieties. The former is cheaper, fresher, and more consistent in terms of quality.

Alternatively, you can take inspiration from Yelly’s Bakeshop 5 which capitalized on bread made from vegetables. By replacing flour with mashed squash or malunggay leaves, they’ve been able to cut costs and also offer healthier, tastier, and cheaper products to their consumers.

Regardless of the type of ingredients you use, it’s important to remember that people buy bread regularly because of its familiar taste. Switching to cheaper ingredients may save you money in the short term, but the buyers you can potentially lose due to a change in taste make it not worth it.

Keep the quality of your ingredients and the process of making your products consistent. People buy quality so only give them quality all the time.

10. Price Your Products Strategically

Regardless of your target market, the price of your products should give you a good profit margin. After all, you won’t call it a business if you price them too low that you are no longer able to profit from it.

As mentioned previously, the ingredients and the formulation you use have a significant influence over how much your baked products will cost.

Under normal standards of baking a loaf of bread, one sack of flour can produce as much as 81 loaves weighing 550 grams each. If you sell it at ₱40 per loaf, you can get a gross revenue of ₱3,240.

Subtracting the overhead cost as well as the cost of materials and packaging amounting to ₱2,536.13, your gross profit margin would be ₱703.87 per bag.

a. Sample Product Costing (Pandesal Business)

The profit margin will be relatively higher if you sell pandesal that requires fewer and cheaper ingredients.

A bag of flour can produce approximately 1,800 pieces of pandesal weighing 25 grams each. Seling it at ₱2 per piece will give you a total sales of ₱3,600 per sack. From the gross earnings, you will deduct the taxes, manpower, rentals, and other overhead costs.

Even if you learned business-scale baking from the training schools or programs you enrolled in, you can’t do everything on your own.

As your bakery business in the Philippines grows, it will be indispensable to find honest, hard-working people who will take care of the daily operations while you attend to things that matter more.

Finding the right people to man your bakery business can be a matter of trial and error. You need to find experienced bakers and employees who know how to work around a bakery and will never resort to pilfering.

It’s your responsibility to teach them how to properly handle the products and ingredients. One breach in sanitation or the standard baking procedure can negatively affect the final products and eventually the reputation of your business.

To motivate your workers to do their jobs well, you should also do your part. Pay them well and treat them like a family without blurring the line between the employer-employee relationship.

Remember, a happy employee is a reflection of how you run your bakery business. And the more happy employees you have that go the extra mile for their jobs, the more happy customers you’ll gain in the long run.

With the bakery business in the Philippines becoming more saturated, you can never afford to be complacent.

Innovation means constantly upgrading your products or service to stand out from the competition. While your competitors watch your every move, innovation keeps you a few steps ahead of them through new products and ideas.

Previously, you were introduced to Yelly’s Bakeshop which uses vegetables instead of flour to make its nutritious bread. This unique selling proposition sets them apart from others who follow the same traditional baking techniques.

Whether it’s through improving customer service or offering products not found anywhere else, a bakery business should never stop conceptualizing, implementing, and testing ideas that will make them more memorable for its consumers.

• Focus on providing good products and top-notch service. Only use quality ingredients and keep the taste of your products consistent. Put yourself in your customers’ shoes and imagine how you want to be served. When all bakeries offer the same products, the only way to have an edge over others is to offer good service. Require your employees to wear proper uniforms and smile at every customer regardless of social status. Leave a good first impression, and you’ll earn repeat customers in no time.
• Be a hands-on bakery business owner. Provided that all the aspects of the bakeshop are taken care of, hard work is what will make the business last. As Metring Cuevas 6 of Cuevas Bakeshop reveals, a bakery business should be run round-the-clock because bread is a delicate product to sell. It’s not a business for the lazy so don’t open a bakery business unless you’re ready to commit your time and effort to make it a success.
• Market your bakery business to nearby stores . If you’re selling buns (monay ) or similar bread types, nearby stores may order a bulk of these bread products from your bakery. This is an effective strategy not just to introduce your product in the market but also to earn higher from wholesale orders. 
• Monitor the quantity of ingredients used in bread production. Set a target quantity of bread to produce given a certain amount of ingredients. For instance, ask yourself how many can you produce for every sack of flour. Keeping track of your usage of ingredients prevents excessive costs due to wastage.
• Bakery Equipment Canvassing. Price in the Philippines as of June 2019 [Video file]. (2019). YouTube. Retrieved October 05, 2022, from https://youtu.be/d90xsK7Qjv0.
• Jaruda, A. (Producer). (n.d.). Totoo ba na malaki ang kita sa bakery business? [Video file]. Retrieved October 5, 2022, from https://youtu.be/za4G4bjA19Y
• Magkano ang kinikita ng isang pangkaraniwang bakery? [Video file]. (2021, October 21). Retrieved October 5, 2022, from https://youtu.be/16oYmEVwGKI?t=478
• About Us. (n.d.). Retrieved October 7, 2022, from http://kambalpandesalfranchise.weebly.com/about-us.html
• My Puhunan: Nutritious bread from Yelly’s Bakeshop [Video file]. (2016, November 23). Retrieved October 7, 2022, from https://youtu.be/tWQXjpid61g
• History of Cuevas Bakery [Video file]. (2020, April 22). Retrieved October 7, 2022, from https://youtu.be/sKy1fil2h1M?t=35

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How to Start a Bakery Business in the Philippines 

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Starting a bakery business in the Philippines can be an exciting and rewarding venture. With the right planning, preparation, and execution, you can turn your passion for baking into a profitable enterprise.

In this guide, I will walk you through the essential steps to launch and manage your own bakery business successfully.

Why Start a Bakery Business?

When and where to start, step 1: define your business plan, step 2: register your business, step 3: set up your bakery, step 4: develop your menu, step 5: source ingredients and establish supplier relationships, step 6: recruit and train staff, step 7: implement effective marketing strategies, 1. offer customization options, 2: focus on quality and consistency, 3. prioritize customer service, 4. embrace technology, key takeaways.

Running a bakery business offers numerous benefits. Firstly, it allows you to indulge in your passion for baking while sharing your delicious creations with others. Secondly, the bakery industry in the Philippines is thriving, with a high demand for freshly baked goods. Finally, owning a bakery can provide a stable income and the opportunity for growth and expansion.

Timing is crucial when starting a bakery business. Consider the local market demand, seasonal factors, and competition. As for the location, choose an area with high foot traffic, such as commercial districts or near schools, offices, or residential communities. Ensure that the space is well-equipped with the necessary facilities and meets health and safety regulations.

How to Start a Bakery Business in 7 Steps

Develop a comprehensive business plan that outlines your bakery concept, target market, products, pricing, marketing strategies, and financial projections. A well-structured plan will guide your decision-making process and attract potential investors or lenders.

Visit the Department of Trade and Industry (DTI) or the Securities and Exchange Commission (SEC) to register your business name and secure the necessary permits and licenses. This includes securing a Mayor’s Permit, Barangay Clearance, and Food Handler’s Certificate.

Source high-quality baking equipment, furniture, and supplies. Create an inviting and functional layout for your bakery, including a display area, production space, and storage. Invest in a reliable point-of-sale (POS) system to streamline your sales and inventory management processes.

Craft a diverse menu featuring your specialty baked goods, such as bread, pastries, cakes, cookies, and desserts. Ensure a balance between classic favorites and unique offerings that differentiate your bakery from competitors. Consider catering to specific dietary needs, such as gluten-free or vegan options, to broaden your customer base.

Identify reputable suppliers for high-quality ingredients and establish reliable relationships with them. Opt for local suppliers whenever possible to support the local economy and ensure freshness. Maintain a well-managed inventory to minimize waste and control costs.

Hire skilled and enthusiastic bakers, pastry chefs, and customer service personnel who share your passion for baking and delivering excellent customer experiences. Provide thorough training to ensure consistency in product quality, food handling practices, and customer service.

Develop a strong online presence through a professional website and social media channels. Utilize digital marketing techniques, such as search engine optimization (SEO), email marketing, and social media advertising, to reach and engage your target audience. Build partnerships with local businesses and participate in community events to increase brand visibility.

Examples and Tips for Successful Bakery Business

Allow customers to personalize their orders for special occasions or dietary preferences. Offer custom cakes, pastries with personalized messages, or themed baked goods to cater to different celebrations and create a unique experience.

Ensure that every product leaving your bakery meets high-quality standards. Consistency in taste, texture, and presentation will build customer trust and loyalty.

Train your staff to provide exceptional customer service. Positive and friendly interactions with customers can leave a lasting impression and drive repeat business.

Explore online ordering systems, delivery apps, and loyalty programs to enhance customer convenience and retention. Embracing technology can streamline operations and expand your reach.

• Starting a bakery business in the Philippines offers a rewarding opportunity to turn your passion for baking into a profitable venture.
• Consider market demand, location, and timing when planning to start your bakery.
• Follow a step-by-step guide to set up your business, including registration, acquiring permits, sourcing equipment and ingredients, developing a menu, and hiring staff.
• Implement effective marketing strategies and prioritize customer service to attract and retain customers.
• Embrace customization options, focus on quality, and utilize technology for success in the bakery industry.

Now that you have a comprehensive understanding of how to start a bakery business in the Philippines , it’s time to take action. Embrace your passion, follow the steps outlined in this guide, and create a successful bakery that brings joy to your customers and prosperity to your entrepreneurial journey.

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How In Start adenine Bakery Business in the Philippines: A Beginner’s Travel

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How much capital is needful to starting adenine bakery enterprise, 1. monthly to, 2. equipment, apparatus, dining, 3. ingredients, 4. parturition vehicle (optional), sample breakdown of investment requirements (pandesal business), a. costs a utensils, c. raw materials/ingredients, what are the pros and features of having a bakery business, how often does a bakery business earn, how to start adenine bakery business in the new: 12 steps, 1. evaluate the reason why to want to open ampere bakeries business, 2. take up baking tracks, 3. perform basic market exploration, 4. locate a good location, 5. decision regardless go franchise or go on you own, 6. secure the required permits and certifications, 7. start small, 8. buy baking equipment, 9. know your ingredients.

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10. Price Your Products Strategically

A. sample product costing (pandesal business), i. indirect cost, ii. indirect cost, iii. production cost, b. sample product price (pandesal business), 11. recruit laborers, 12. learn how to innovate.

Whether it’s thru improving customer service oder offering products not found anywhere else, a bakery business have never stop conceptualizing, implementing, and testing ideas this will make them more memorable for its consumers. Bakery Trade Plan Template Example 1 - SENSITIVE Yum Yum Sweet From  Grandma'ʹs  Kitchen  to - Studocu

Tips and Warnings

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How to Start a Bakery Business in the Philippines

Did you know bread is second to the most common food staple next to rice that is eaten every day in the Philippines? It makes sense, since bread is cheap to make and to sell! It is part of a Filipino’s breakfast and merienda: pan de sal, monay, ensaymada, and other local delicacies! They are easily prepared and can be found just right next door at any typical neighborhood.

A good bakery maintains the freshness of its ingredients as well as the consistent quality of the product at each batch. Taking care of a bakery will take care of you, as they say. However, just like any other business, you have to know the necessary knowledge in operating one.

Which is if you want to start a bakery business in the Philippines, you should continue reading on to get yourself in the feet of a true baker! This business is a profitable venture that is perfect for those experienced entrepreneurs at baking, but just about any kind of person, even a newbie, can try their hands at baking!

Continue reading on below to start your journey!

Know the investment capital

The money needed to start a bakery business in the philippines.

A bakery business fetches a hefty price: about P150,000. This is only if you plan to establish it in a commercial unit. If you are able to provide a space with a lower rental fee or even plan to do it at the confines of your own home, then do as you please. Doing so will provide you a lower amount of investment capital needed.

Most of the capital will be invested into the basic operation of a baking business: from the materials to the equipment.

Invest in the right equipment!

Needed equipment for a bakery biz.

The equipment such as the baking oven does not need to be an expensive state of the art machine that produces a motherlode of baked goods! You can choose to buy second hand equipment from other bakeries that have surpassed their capacity and are willing to sell them at a lower price.

The benefit of a second hand equipment cannot be understated. Not only are you able to save money from purchasing a newer model, but also the chances are high that when the equipment is in need of repair, the parts are likely to be found as they are a common model as of the time of purchase.

Find a good location

A bakery business needs foot traffic to succeed.

Just like any other business, you want to rake in all the money! How do you do that? By placing it right at where there is a lot of people! Bakeries are often profitable when placed near a church or school. Furthermore, those drivers of jeepneys, taxis, and tricycles are also likely to survey your baked goods in search a good breakfast and merienda!

In essence, the place where the bakery is established should be one where there is a heavy amount of foot traffic. You always want a constant source of customers as to not waste a day’s worth of baked goods.

Know your market

Market research will help you jump start your bakery business.

As an addendum to the previous point, not every kind of bread is eaten by everyone, especially in a different area. For example, the drivers from the previous paragraph would highly favor a freshly baked pan de sal in the morning. Baking whole wheat or French bread is expensive for the average Juan and are also preferred by the wealthy!

Knowing this, you should do research on the area of your business on whether or not they have a certain preference toward a specific kind of bread. Research will save you a lot of time and money from baking unnecessary batches of bread in the future.

Register your business!

Paperworks, licenses and permits.

Businesses, big or small, are required to register for sole proprietorship at the Department of Trade and Industry (DTI), and at the Securities and Exchange Commission (SEC) for those who opt for partnerships and corporations.

Furthermore, you will also need a mayor’s permit and sanitary permit from your local municipality where your business is located.

The Bureau of Internal Revenue (BIR) will also require a Tax Identification Number (TIN) from your business, so you must register at the nearest BIR office available.

Lastly, since you are operating a business handling food, you need a license as a “food manufacturer”, a License to Operate (LTO) from the Bureau of Food and Drugs (BFAD).

Don’t be afraid!

All corporations once started small, whether they liked it or not. Rome was not built in a day, as the old saying goes. So, invest in a bakery business step by step in small amounts of capital first, looking for ways to save money and get the best bang for your buck! As you follow these tips, your success will eventually come into fruition!

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How to Start a Baking Supply Business Philippines

Have you ever thought about starting your own bakery supply business in the Philippines? If so, then today’s handy guide on how to start a baking business will guide you in the right direction to accomplish your business goal.

We will cover some important areas to start a baking supply business in the Philippines, including the market and the finances, but for those interested in a business plan, head over our free business plan PDF template, which can be downloaded a the top of this page.

Table of Contents

Steps On Starting A Baking Supply Business Philippines

1. analyze the baking market.

Before starting any business, surveying the market is important. It can help you determine the challenges in your target market. The same goes on ways on how to sell baking supplies online. To start, future baking supply business owners need to talk to the bakeries located in their target location. 

A baking supply business can be profitable if the business satisfies the clients’ needs and diligently serves them. Performing a market survey can help you figure out how to help these bakeries do their jobs more easily.

2. Create A Baking Supply Business Plan

It does not matter if you plan to be an online home-based baking business owner or have a store when making a bakery business plan. Future business owners can think of this as their map. Therefore, a bakery business plan should be meticulously made by placing all the details in various categories. 

Here are some of the elements you can include in your business plan .

• Business Overview 
• How Will You Reach Your Customers
• Market Analysis 
• Marketing Plan 
• Operations 
• Products To Sell
• SWOT (Strengths, Weakness, Opportunity, And Threat) Analysis 
• What Will The Market Be Like In 10 Years
• Who To Sell The Products To
• Why Are Your Products Different

3. Registration Of A Baking Supply Business In The Philippines

One of the crucial steps in the process of how to start a baking supply business Philippines is obtaining the needed documents to operate legally. Owning a bakery supply store or being a baking supply distributor in the Philippines requires the same legal requirements. If you are not a Filipino passport holder, find out more about registering a business in the Philippines here.

Since bakery supply business owners will store edible ingredients such as chocolate compounds, cake mixes, essence, and chocolate compounds, among many others, baking supply business owners have to be registered. 

Here are some of the required certifications and permits to complete this step on how to start a baking supply business Philippines:

• Registration of your business’ name 
• Business owners operating the business on their own will go to the DTI
• Business owners operating the business with a partnership or corporation business structure will go to SEC
• Mayor’s Permit
• BFAD Certificate
• A TIN from the BIR

Please note that depending on the city where you will operate your business, there can be more or different requirements.

4. Pick Your Location For Your New Baking Business

Many baking supplies & wholesale suppliers in the Philippines are available online. However, It important when opening a brick-and-mortar store to choose a location that is accessible and suitable for your customers and location.

A good parking space may also be needed since this will come in handy when there is a high demand for baking goods . Looking for ways on how to sell baking supplies online, business owners need a warehouse that is easily accessible to potential clients.

Suppose you are opening a home-based baking business in the Philippines. In that case, you may wish to investigate the delivery part of the business and see how it will affect your business location.

5. Order Baking Supplies In Bulk

A great way to order from baking wholesale suppliers in the Philippines is to list the primary baking supply categories, such as the ingredients and equipment. Then, you can choose the products you want to stock on for every category.

It is best to choose products in different shapes and sizes (depending on your market and business vision). Moreover, getting wholesale orders from your baking supplies distributor in the Philippines may lead you to get discounts and increase your profits. 

Another helpful tip at this stage when looking at how to start a baking supply business in the Philippines is to determine how you want to start….

… What this means is that you can launch your business with a type of product such as customized cake toppers or different kinds of chocolate. Of course, this will all depend on the initial capital, business plan, market, and other factors. Baking business owners could also boost their business through customization & branding.

6. Build Your New Baking Business Team

It is best to get employees who offer great customer service and have knowledge about baking supplies and tools. You can also ask for help if you know someone who has a home-based baking business in the Philippines, as they will likely know culinary school students or people who have worked in kitchens. 

If possible, baking supply business owners can provide matching uniforms for all the employees as the business grows.

7. Market Your New Business

You can carry out the final step on how to start a baking supply business in the Philippines by thinking the same way as your target customers. Where will your customers be, and what would spark their interest?

If you have a store, you could have a dessert open house. You could work with your team to create sweet treats using the baking supplies available in your store. You could also offer introductory prices. Moreover, you could compare the prices offered for retail and commercial consumers.

How To Sell Baking Supplies Online Philippines

1. purchasing ingredients, equipment, and supplies.

When baking supply business owners purchase products and equipment in big quantities, they can get a better deal from baking suppliers – wholesale suppliers in the Philippines. 

Nevertheless, people in the home-based baking business in the Philippines often have to look for ways to store, pack, and ship their products to their customers. Aside from searching for an accessible storage area or warehouse, business owners need to have ways to ship and handle the items. This is an important stage to explore in the original bakery business plan. 

Some baking ingredients need to be refrigerated. Therefore, one way on how to sell baking supplies online is to consider temperature and delivery when deciding on what baking products to get. 

2. Aim To Make Your Online Products Too Good To Refuse

After understanding what your products can offer, you can use the information to create engaging product captions. Quality descriptions are important in the ways on how to sell baking supplies online in the Philippines.

Potential customers will refer to these when checking out your listing. It is best to avoid using the exact product descriptions provided by a baking supplies distributor Philippines; instead, create your own detailed description. The reason is that you need your baking supply store to stand out from the crowd. 

The ideal product description highlights the benefit of the products and their features. Moreover, addressing the needs and concerns of your target audience can help, such as trying to determine how your product can make their lives easier or better.

Product descriptions with good conversion have a CTA or call-to-action. You can use CTAs such as “On sale for a limited time only, Purchase today!” ….  it’s essential to carry out keyword research to have improved rankings on search engines and selling sites such as Shopee and Lazada .

3.  Using Stories And Recipes

According to studies, humans are 22 times more likely to remember information with a story .

To perform marketing using storytelling, you could create a narrative to tell your message. Your aim is to make potential customers reading your story feel inspired to purchase your product. This will also help them better understand your baking supply products and create trust with your business. 

When planning your baking supply business, you might have thought about how your ingredients can make customers bake something wonderful in the comfort of their own homes?…  You could include something special and extra to improve your stories, such as recipes and baking tips.

Baking Supplies Wholesale Suppliers Philippines

• Chocolate Lover Inc.
• Products: Baking products, cocoa, chocolate blocks, 
• Website: https://www.chocolatelover.ph/
• Products: Blenders, electric mixers, rolling pins, cake toppers, icing decorations, cutters, raw ingredients
• Website: https://www.wonderbake.ph/
• Baking and Home Depot
• Products: Baking Tools, baking ingredients, edibles, baking pans, packaging
• Website: https://www.bakingandhomedepot.com/
• The Baker’s Co
• Products: Baking Supplies. baking ingredients, premium ingredients such as matcha
• Website: https://thebakersco.com/
• Gourdo’s Retail Cafe
• Products: Barware, Wilton cake decorating and baking supplies, kitchenware, flatware, baking tools, micro-plane graters, cookware, ceramic whiteware, lodge cast iron, 
• Website: www.gourdos.com
• Link Inport Export Enterprises Inc.
• Products: Almond nuts, baking chocolates, cherries, whipping cream, various kinds of cheese, compound chocolate chips and ganache, coconut cream, coffee syrup
• Page:  https://www.facebook.com/linkimport/
• Sweetcraft Baking and Confectionery Supplies
• Products: Flour, different kinds of sugar, cocoa powder, confectionery, chocolate, sugar-free chocolates, different nuts, and dried fruits, yeast, bread improvers, preservatives, packaging supplies
• Page: https://www.facebook.com/sweetcraftph/
• Sweetlink Inc.
• Products: Bake wares, edible ink for photos on the cake, chocolate molds 
• Page: https://www.facebook.com/SWEETLINK.PHIL/

How Much Does A Bakery Supply Business Cost In The Philippines?

The total amount you need to start a bakery supply business in the Philippines will depend on the scale of your business and how aggressively you wish to grow in the upcoming years.

There are many important factors when starting a bakery supply business in the Philippines, such as the products, the marketing, the location, online fees, and several categories.

Nonetheless, to start a small bakery supply business in the Philippines at home, you need to have at least 50,000 Pesos. On the other hand, if you are looking to start a small bakery business in a warehouse or storefront, then the scale of the business will be much larger, and as a result, 200,000 Pesos or more will be needed.

Please note that the above estimates are valuations when calculating how much it cost to start a bakery supply business in the Philippines, which means that the prices can be higher or lower depending on your location and scale of business. For example, if you are an entrepreneur starting this business at home, the cost will be much lower compared to a new corporation with a team of 25.

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How to Start a Bakery Business in the Philippines

Last Updated: April 5, 2022 Approved

wikiHow is a “wiki,” similar to Wikipedia, which means that many of our articles are co-written by multiple authors. To create this article, 13 people, some anonymous, worked to edit and improve it over time. There are 7 references cited in this article, which can be found at the bottom of the page. wikiHow marks an article as reader-approved once it receives enough positive feedback. In this case, 90% of readers who voted found the article helpful, earning it our reader-approved status. This article has been viewed 122,302 times.

Are you planning to put up a business? Why not try a bakery? It is profitable, can be started at home and allows the owner to grow the business gradually as his capital, interest and knowledge of the business increases. With bread being the country’s second staple after rice, the bakery business is one of those ventures that is sure to bring multiple returns with just a minimal investment. By taking the time to learn the craft, you too can start your own bakery business and potentially make good money out of it. Filipinos love to eat bread and the business minded should keep this in mind. Pandesal is the usual breakfast fare most Pinoys can’t do without before starting their days. Snacks are usually a few slices of bread taken with coffee, soft drinks or fruit juice. An aspiring bakery businessman should therefore have these two products in his list and expand from there. In fact, any true-blue Pinoy should be able to recall a morning of eating hot pandesal with his or her family, an afternoon of eating siopao with friends, or the surprise of opening his or her lunch box at school and seeing a large, puffy, creamy ensaymada. In the Philippines, breads are not just for eating. They are a tradition.

Expert Q&A

• You don't need Millions of Pesos to start a bakery business. Start small, there are many bakery business opportunities who are enabling Franchise or even Partnerships for example Kambal Pandesal of San Miguel Mills. They offer low-cost bakery business which is affordable to all Filipinos, and take note they also have equipments in their Package, Free- Site Assistance and Monitoring to their Business Partners which will make it easier for the owners to handle their business easily because of the ready-made system. Call 0916-131-4764/0999-998-1553 and Start your Own Kambal Pandesal Bakery Business Thanks Helpful 64 Not Helpful 12
• To know how will you serve the people in your business, simply imagine yourself as a customer, How do you want to be treated? What are the breads that you'll buy? How will they be served? What are the gazes and treatment of the employees? Thanks Helpful 60 Not Helpful 11
• Do the Survey. Ask people what are the top 10 breads they'll pick whenever they'll buy in a bakery, In this way you are minimizing the costs as well as satisfying the tastebuds of your customers Thanks Helpful 51 Not Helpful 12
• Don't focus on the present. Remember if your business is not doing good at the present moment. It's okay, we've been there, as long as you see the Vision, just continue. Take a look at your business, what are the things you need to change, how can you improve your Sales, yourself. The Secret to Success according to Charles Haanel is Service. Be Patient. Thanks Helpful 53 Not Helpful 8

Things You'll Need

• Pen, Paper, A little imagination, company for partnerships, money, Internet Connection, patience, focus, consistency and love

You Might Also Like

• ↑ https://www.bbc.co.uk/bitesize/guides/z84kq6f/revision/1
• ↑ https://www.anz.com.au/business/start-run-grow-business/start/the-importance-of-location-in-business/
• ↑ https://www.inc.com/jeff-haden/15-reasons-you-shoiuld-start-your-own-small-business-today.html
• ↑ https://www.business2community.com/customer-experience/12-ways-learn-customers-01990097
• ↑ https://www.entrepreneur.com/article/272808
• ↑ https://www.entrepreneur.com/article/284799
• http://discarte101.wix.com/kambalpandesal#!blog/c7pa

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Tips on Starting a Bakery Business in the Philippines

Updated: March 21, 2024

Bread is a staple food everywhere. In the Philippines, it is consumed as much as rice every day, especially during breakfast and merienda.

Hence, starting a bakery business is a promising venture. And fortunately, it doesn’t require a lot of capital to put up your own panaderya in your local area.

If you’re hoping to go into the bread business, then below are some tips that can help you start a bakery business in the Philippines.

Basics of Running a Pinoy Bake Shop

Before anything else, you need to ask yourself if this is the type of business you really want to put up and manage in the long run.

After all, this will be a responsibility that you will handle every day. So it’s important to have an interest in baking and bread preparation if you want to be successful in this business.

First of all, you have to study the specifics of the Filipino bakery industry. You need to know how you can successfully sell pan de sal and other bread products in your area. Do your homework – research.

Putting up your own bakery requires baking skills and knowledge in bread and pastries. You can enroll in baking lessons or training offered by TESDA or other culinary schools. Do not decide to start a bakery business if you don’t know how to bake. Knowing the baking process will make things easier for you as you manage your business.

It may take one month or so before you can learn how to bake. Make sure you’ll get a certificate after the training to show as proof to your customers. This will attract more customers because certificates from formal training vouch for your familiarity with the business.

Hands-on training will help you develop your baking skills. You can work with flour mills in your area to fully understand how things work. Remember, practice is better than theory. So go ahead and discover how you can enrich your baking knowledge through local baking courses.

Also, it’s important to find a good location. Some decide to put up their bakery business in their house. This is a practical decision since you don’t need to rent a place for your bakeshop. You just need to register your business and you’re good to go.

Food businesses like bakeries require human traffic. That means it’s advantageous to put it up in residential areas, near schools, the local market, and adjacent to hospitals. Terminals are also an ideal place to put up your bakery business.

Furthermore, develop your products that are appealing to your target market. You can research the best-selling baked products of other shops to see if they will work for you.

For example, if you are planning to put up a bakery in Manila, then sell bread that Manilenos like such as ensaymada, monay, tasty bread, and of course, pan de sal. Experiment and see what would appeal to your customers.

One basic rule in all businesses is to start small. Do what you can and use what you have. It’s not even advisable to loan a big amount of money if you’re not sure how to run your business yet.

If your business is growing, that’s the time you can expand your products and branches. Decide on the right equipment you will use and buy supplies as needed. Do not overspend.

• Some of the equipment you need includes bakery oven, dough mixer, bread crusher, bread slicer, and baking trays. Canvas before deciding to buy these essentials.
• Maintain the quality and consistency of your products.
• Good tasting bread will always attract customers. Focus on your ingredients and recipes. Be consistent in the taste of your products.
• Learn from the people who buy your products. You can improve your current offers to get more customers.
• Consider local regulations in your area. Secure your business permit, DTI certification, and other important documents.

As you grow your business, manage your resources well. Be thrifty and prudent in all your transactions especially if it involves your money. Aside from time, you also need to be responsible for your duties as the boss.

Be patient in understanding your business. The first steps are always the hardest. So you need to be passionate when dealing with people that can help you to become successful in the bakery business.

What to do next: Click here to start your financial journey with IMG Wealth Academy

Yung auntie ko meron tatlong bakery isa nalang ngayon ang natira. Mejo mahirap mag manage ng bakery lalo na kapag wala kang first hand experience o alam sa pag gawa ng tinapay. Once na umalis ang panadero mo magclose talaga ang store for days na wala pang kapalit. So best dito sa mga may plan mag bakery ay mag aral din ng baking at pastry.

Sa bakery business po ba papano ma compute ang interest o tubo ? Sa per sack of flour ba?

Starting a bakery business at first is hard, you need proper training, proper people and most of all proper equipment. Talagang nasa execution mo pano mo mapapatakbo e. In terms of supply and equipment, yan ung magiging body kit kumbaga ng business mo, without that mahihirapan ka. I have been running bakery businesses na for years din with the help of Felusa or Usabal Enterprises. Sila nagsusupply ng equipments ko and ovens ko here in QC. Nung bumili ako ng ovens humingi narin ako ng konting tips dun sa owner on what to do para ma prolong ung business. And naging okay naman, that was 4 years ago. Kaya kung plan niyo magstart ng business with proper equipment and mindset, try talking to Tom Usabal of Usabal Enterprises in Marikina. Baka matulungan nila kayo. Equipment palang sobrang laking tulong na 🙂

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• How to Start a Home Baking Business in the Philippines: A Step-by-Step Guide
• Post author: Mervin Manalo
• Reading time: 40 mins read

So you’ve finally decided to act on those compliments and advice from your friends and family to take your baking hobby to a professional level? That’s great! Spoiler alert: we’ll teach you how to start a home baking business in the Philippines in this post. We’ll also include tips on how to start a bakery from home, including how to start an online bakery from home and how to make a home baking business plan.

Do you think most baking pros are prevented from turning their passion into a business because of the staggering running costs of a store? If you find yourself in a similar situation, you should consider opening a bakery business at home!

Once you catch the baking bug, it isn’t easy to stop. So, why not start your little bakery or baking business from home? The best part? The running costs are relatively low, and the process is much easier!

Let’s learn what it takes to start an online bakery from home so that you can deliver those scrumptious gooey cookies to hungry bellies!

Why Start a Home Baking Business in the Philippines

If you love baking and have the means to start a business, you already have great reasons to open a home baking business.

While those two are just icing on the cake, time has proven that baked goods are a hit in the country. In fact, baked goods sold in the Philippines amount to a whopping $2 billion (112,369,000,000 PHP) each year.

Additionally, Forbes projects that the global bakery products market will grow from $416.36 billion (23,389,023,000,000 PHP) in 2021 to $590.54 billion (33,173,584,500,000 PHP) by 2028.

This increased demand for baked goods comes from people’s preference for convenience and affordable prices. Because of urbanization, many people have hectic lives that leave them little to no time to make their own meals. As a result, they opt for ready-to-eat food like bread and other pastries.

As long as baked goods remain a huge part of the Filipino diet, starting a home baking business will always be a great idea.

Pros of Starting a Home Bakery Business

Before we jump to the hows and whats, let’s help you understand the perks of opening a home bakery business. Here’s why an online bakery from home is a profitable venture:

Filipinos’ Love for Baked Goods

Our love for bread is embedded in our culture, making a home baking business a great idea. Traditional Filipino bread and sweets, like the soft and fluffy ube cheese pandesal or the sweet and buttery ensaymada , are things most Filipinos can’t live without.

By selling these familiar favorites, you get to tap into a steady demand.

Demand for Unique, Homemade Treats

People are becoming more mindful of their health, which led many to choose homemade, healthy, or artisanal treats over their supermarket counterparts.

Social media platforms played a huge role in this through eye-catching, Instagrammable baked goods. By starting your baking business at home,  you can easily experiment with different recipes and presentation styles that cater to this demand. Doing this also sets your products apart from those sold in supermarkets and bakery chains.

Lower Startup and Operational Costs

Unlike opening a physical bakery, starting a home baking business requires lower capital and ongoing costs. For one, you don’t have to rent a commercial space or industrial baking tools and equipment . You can also focus your capital more on high-quality ingredients and effective marketing strategies.

Flexibility and Scalability

Running a baking business from home allows you to be your own boss. You can set your own schedule, work at your own pace, and call the important shots.

This setup also works well if you want to start small. You can first focus on a niche product or market and scale based on your customers’ demand and feedback. This lets you grow your business while reducing risks and costs.

Easier Marketing Through Digital Channels

The Philippines is the social media capital of the world and you can use this to your advantage. Digital marketing tools let you market your products without having to put up billboards or TV ads. Additionally, the ad targeting on social media platforms like Facebook and Instagram is so great you can quickly get eyeballs there. They’re also more cost-effective compared to traditional ads like print and TV.

A Supportive Community of Home Bakers

The community of home bakers is thriving in the Philippines, thanks to the brave souls who pursued their passion for baking. If you start a home baking business, you can easily find a supportive network of small business owners.

Joining these communities can give you valuable business insights, mentorship, and opportunities for collaboration. Whether it’s through social media groups, local business associations, or informal networks, you can easily connect with other entrepreneurs who can offer support and inspire you in the Philippines.

How to Start an Online Bakery From Home

Since you want to start an online bakery from home, we’re assuming that your love baking and do it well. If people often ask you to bring a dessert to dinner or supply desserts for an event, your baked treats are likely delicious, if not irresistible.

While baking skills matter, there’s so much more than goes into starting an online bakery from home. It calls for research, planning, marketing, and more. Here ar the steps in starting an online bakery from home:

1. Create a Home Baking Business Plan

Whether your home bakery business aims to fuel your passion or supplement your monthly income, it is always wise to develop a business plan. A proper home baking business plan can be a guidebook to steer your home bakery toward success. And don’t forget, it should be pandemic-proof.

A home baking business plan should contain the following elements:

Company Description, Logo, & Mission

You need to finalize and plan a piece of detailed information about your online bakery from home. Once your business starts operating, you’ll need to mention the types of bakery products under your roof and a mission statement.

Will your home bakery business deal with fresh bakery products such as cakes and cupcakes, or only cookies, muffins, and other extended shelf-life products?

Before you start your operations, you should specify the scope of your online bakery from home to keep things simple and manageable. Additionally, designing your bakery logo is also a part of the process.

Business Name

The next critical thing is coming up with a business name. Choose a lively business name that reflects your mission and values. Moreover, the business name you choose should have a scope for expansion. We also suggest you start with a quirky and unique name if you need to trademark it in the future.

Regardless of whichever name you choose for your business, it should be clear that you deal with baked products. Lastly, the brand name should be short & sweet and easy to remember.

You can use several online brand name-generating tools to get excellent inspiration for your home bakery. Once you finalize the name, you’ll have to use it while registering your online bakery from home.

2. Set Up the Space

To get your home bakery business up and running, you’ll need the necessary baking equipment. It would help if you considered equipping your kitchen with a blast freezer, stand mixers, heavy-duty oven, and other professional-level baking tools based on your menu items.

Moreover, there are also small kitchen items that are mandatory for baking. For instance, you might need new cookie cutters, cake stands, and cake levelers. You might also have to invest in modifying and outfitting your kitchen. The existing kitchen might not have enough countertop space for prepping.

3. Do Market Research

Another essential aspect of your bakery business plan is your target market and population. You have to identify your niche and target customers with the best products! How will your home bakery better cater to customers compared to your rivals? What needs or wants are your bakery products fulfilling for your customers?

The location of your home bakery also affects your bakery sales. You should also monitor current trends in the world of baking. For example, people are currently obsessed with miniature cupcakes on social media.

Based on your market research, you might want to limit the products of your bakery or baking business at home to dream cakes , fancy birthday cakes, or celebration cakes.

4. Obtain Permits and Food Licenses

Depending on your geographic location, the permits and licenses will significantly vary. It would help if you relied on your local state laws to determine the food licensing and permit process. Many states make it mandatory for businesses of all sizes to comply with local health codes since it involves consumables.

If you are planning to open a home bakery business in the Philippines, these are the permits you might require:

• You’ll need to procure a Tax Identification Number (TIN) from the Bureau of Internal Revenue.
• Secure a Residence Certificate & Sanitary Permit or Mayor’s Permit from the local municipality of home bakery business address.
• BFAD Certificate from the Bureau of Food and Drugs (BFAD) or License to Operate (LTO) as a “food manufacturer.”
• You’ll also require business name registration in the Department of Trade and Industry (DTI) as you’ll be running the home bakery business on your own.

5. Define a Clear Business Structure

Most new home bakery business owners mistake not establishing a clear business structure. It is essential to finalize the type of business structure you require. The business structure will also determine how you pay your taxes.

Typically, most home bakers want to start as sole proprietors. A sole proprietorship is one of the typical business structures. But remember that if your home bakery business absorbs employees or new business partners, you’ll have to alter the business structure.

If you expand your home bakery business in the future, you also might need to move out and require a physical outlet for your bakery business.

6. Create Sales and Marketing Plans

Sales and marketing are two essential aspects of any business. You need to figure out ways to attract and retain your consumers. Do you plan to rely on referrals to get your home bakery business going? Also, do you know any local eateries that want to host your products?

One of the first aspects of your marketing plan should be to have a user-friendly website or point of communication. It is best to have a web designer look into the website development process. You’ll also require marketing materials such as business cards and engaging content to keep the customer flowing!

Here are some marketing routes for an online bakery from home:

• Social media and online marketing
• Word of mouth
• Bake sale day at local venues and events

7. Strategize and Finalize the Prices

You should think about the pricing of your menu items thoroughly. The rates you set at the beginning of your business will determine the first impression of your consumer. You don’t want to charge too high as it can deter many customers from picking your online bakery products. On the other hand, you don’t want to underprice and reduce your profit margin significantly.

Home bakers should also consider their efforts, time, and other resources to set up a home bakery. You can extend the benefits of reduced overhead costs to your customers. Remember, you can create your bakery’s USP in taste and variety instead of pricing.

You can consider the following figures while deciding the price of baked goods for your home bakery:

The yield of your recipes: How many cupcakes or cookies can one typically produce?

• Cost of ingredients: How much do you spend buying flour, eggs, cocoa, sugar, and others?
• Cooking time and expertise level: You should not waste your pro-like baking skills for minimal costs! Make sure to consider your baking expertise and dedicated cooking time and divide it with the recipe yield to find the labor cost per piece.
• Cost per serving: You can find the cost per serving by dividing the price of ingredients by the yield per recipe.

8. Promote Your Home Baking Business

Having products to sell is a great start. But with some marketing, you can get more people excited about your products.

For one, you can sell on Instagram. Instagram is a visual social media platform where you can easily post and share pictures of your beautiful cupcake designs , minimalist cakes , and more.

You can also do special promos to encourage people to share your images and videos. You can also incentivize people to engage with your brand through a special giveaway. TikTok is another platform where you can share your behind-the-scenes process.

You can also go old-school and hand out brochures to people. Then, you can give a loyalty card to people who already bought from you to encourage them to buy again. For example, you can use a “buy one get one free” offer. Plus, some free samples never hurt. Just think about it, when people taste how incredible your baked treats are, they’ll likely buy more.

To get your online bakery from home off the ground, your target market has to know that it’s open. Here are some ways to market your online home baking business.

Word of Mouth

Being active in your community doesn’t just let you market your products. It lets you build relationships with potential customers as well. If these people buy your products and love them, they’ll return for sure. They’ll even be your marketing soldiers and spread the word about your amazing products.

Social Media

Thanks to the digital era we live in, you can easily create a Facebook, Instagram, and TikTok page for your home baking business. You can post about upcoming products and other promos to encourage people to follow you. Once you gain followers, make sure to post consistently so people don’t forget about you.

Local Markets

Seasonal local markets are a hotspot for home baking business owners. For a few days, you can sell at local markets to encourage more people to try your products. You can even give free samples to entice people to visit your stall. And don’t forget to display your page handles and contact information so people can contact you once the fair’s over.

Recipes For Baked Goods You Can Sell From Home

Want some easy-to-follow recipes for products that sell easily? Check out the recipes we made for you below:

Imagine a soft, fluffy bread topped with butter, sugar, and grated cheese. Looks so delicious, right? Now open your eyes and let us tell you more about this treat.

Ensaymada is a perfect blend of sweet and savory. It’s an easy sell because it offers people a nice texture and amazing taste. Ensaymadas also appeal to those who want a taste of Filipino tradition.

Check out our ensaymada recipe here

Chocolate Chip Cookies

These classic, gooey cookies studded with melt-in-your-mouth chocolate chips are another hit in the Philippines. After all, who doesn’t love a good old chocolate chip cookie?

Plus, they appeal to all ages, which increases your chance of selling more. Their popularity and the nostalgia they bring make them a surefire hit in home bakeries.

Check out our chocolate chip cookie recipe here.

Bavarian Donut

Do you want a fluffy donut filled with a smooth, creamy custard and dusted with powdered sugar? Chances are, your customers do, too.

Bavarian donuts are an easy sell because they’re a luxurious treat that offers a satisfying texture and rich flavor. Despite this, they’re affordable, making them perfect for those who want to indulge in something special without breaking the bank.

Check out our Bavarian donut recipe here.

Ube Cheese Pandesal

A modern twist on the traditional Filipino pandesal, this baked good is filled with vibrant purple yam (ube) and creamy cheese. Ube cheese pandesal works well for an online bakery from home because of its unique flavor and eye-catching color. They also appeal to fun eaters and fans of Filipino cuisine.

Check out our ube cheese pandesal recipe here.

Filipinos love anything smooth and creamy. Enter the leche flan. This smooth, silky, creamy dessert will wow any dessert lover. In addition, leche flan is a dessert staple in the Philippines known for its nice texture and sweet, caramelized topping, making it an incredible crowd-pleaser.

Check out our leche flan recipe here.

We’re not done with the custard-based desserts yet. The egg pire is a classic Filipino dessert with a smooth, custard filling on a buttery, flaky crust. It’s a great option for a home baking business because of its comforting, homemade appeal. People also love this nostalgic treat because it reminds them of nice moments during childhood.

Check out our egg pie recipe here.

Puto With Cheese

Steamed rice cakes that are light, fluffy, and topped with a slice of salty cheese, puto is another item worth adding to your home bakery lineup. People love puto with cheese because it gives them a unique taste experience, blending sweet, savory, and cheesy flavors. Puto also appeals to those who want a gluten-free, traditional Filipino snack.

Check out our puto with cheese recipe here.

Red Velvet Cupcakes  

As its name suggests, red velvet cupcakes are red, velvety cupcakes with a slight cocoa flavor, topped with luscious cream cheese frosting. People love them for their nice appearance and luxurious taste. They’re also perfect for special occasions or as treats to brighten anyone’s day.

Check out our red velvet cupcake recipe here.

Cassava Cake

You may be fooled by the name, but this one isn’t chiffon-based. It’s just as delicious though.

Cassava cake is a hearty and moist cake made from grated cassava (yucca root), coconut milk, and sugar. Cooks often top it with a custardy layer. It’s another great sell because of its soft, sticky texture and sweet, creamy taste.

Check out our cassava cake recipe here.

Japanese Cheesecake

Known for its light, fluffy texture that melts in your mouth, the Japanese cheesecake is another easy sell for home bakers. People love this subtly sweet and incredibly soft cheesecake, thanks to its airy texture and refined flavor profile. Those who love lighter, less dense dessert options also love this treat.

Check out our Japanese cheesecake recipe here.

Investments for Starting a Home Bakery

It is a wide belief that you can start a home bakery with minimal investments, such as buying an oven and ingredients, but there’s more to it. Even with a home bakery, there are several costs involved in starting a bakery or baking business at home. Here’s a breakdown of home bakery business investments:

• Space: If you are 100% sure that your kitchen can handle the heat of your online bakery from home, you’re good to go. Apart from the kitchen, you also require space for arranging and storing your raw materials and baked items. So, if you need additional space for storage, stocking, or preparation, you’ll have to account for those costs as well.
• Licenses: The licensing part depends on your local government rules and regulation. The Philippines requires many documents and permits, which we have already discussed above.
• Equipment: Based on your daily sales expectations, you’ll need to determine the size of ovens, refrigerators, and equipment such as mixing bowls, spatulas, baking tins. Once again, the tools will depend on your menu items. You’ll have to consider the variety of baking products and accordingly purchase baking equipment.
• Ingredients: You’ll need to make a monthly shopping list for ingredients depending on your menu items. Some baking ingredients are cheap and readily available. However, it might be costly and challenging to source unique baking ingredients.
• Marketing: You need logo designs, business cards, letterheads, and more such marketing materials. Though most of these are highly affordable, the marketing costs will grow as the business expands.
• Packaging: Food packaging is one of the most significant parts of the bakery business. Whether you are delivering doorstep or takeaways, the packaging should be impressive. Packaging involves paper carry bags, cake boxes, liners, muffin boxes. For starters, you might need to invest money to maintain a stock of at least 100 pieces of each packaging material.
• Miscellaneous Costs: Various costs such as transportation are tricky to factor in as they depend from individual to individual. The miscellaneous costs also account for varying prices of monthly materials.

Unlike a home bakery business, starting up a small-sized bakery can require extensive investment. There is no hard and fast rule for the investment amount for opening a small bakery. The cost of opening a small bakery largely depends on multiple factors such as the size of the store, location, equipment costs.

One of the best parts of being a home baker is that you have very little investment and a whopping revenue. Considering that your home bakery business is at its peak, you can earn anywhere between $3500 to $5,300 in a month. The average recorded monthly income for bakers is around $5,389. However, note that the monthly payouts of a home bakery depend on several factors such as sales and menu pricing.

One of the critical aspects that determine the success of every home bakery or baking business at home is the menu pricing. Incorrect pricing can jeopardize your business and leave the customers with a negative impression. It would be best to consider the overhead costs while pricing your baked goods. After you’ve summed up the amount for each baked item, make sure to add some extra amount to make sure you earn profits. All in all, fix the pricing at something that is a win-win for your business and its customers! To check your pricing, you can use of recipe cost calculator .

Read More Interesting Articles from HICAPS

• 12 Small Business Ideas Philippines
• 5 Most Common Mistakes New Entrepreneurs Make
• Why Filipino Entrepreneurs are Important for the Economy
• 5 Ways to Add Value to Product For A Successful Bakery Business
• Dream Cake Recipe
• The Ultimate Guide: Types of Coffee Beans to Brews
• mL to Grams Conversion Chart in Baking
• 7 Importance of Website for Small Business Success

Final Words

We all know that rice is a staple in every Filipino household—but one can also argue that so is bread. Pinoys enjoy having pandesal for breakfast, ensaymada for merienda, and a whole box of warm buko pie for pasalubong.

If you feel passionate about baking (or just really consider baked goods as an indispensable part of your diet) and need a profitable small business idea that you can turn into a building block for your business empire, a bakery may just be the right match. The universe may be sending you a signal to finally take a slice of the pie and claim a share of this thriving market.

Read on to learn how to start a bakery business, why you should go for it in the first place, and what fundamental actions you need to take to bump up your success rate.

One of the significant perks of opening a home bakery business is that you don’t need to go through the hassle of finding and setting up a store. If the kitchen in your home is big enough, you can operate from there. Also, some rules and regulations home business owners have to follow.

Check with the local government for the licensing and permit requirements. Once the legal part is over, you have to invest some efforts into market research and building your brand. With our guide, you’ll have assistance in every leg of your journey to start a bakery or baking business at home .

Just in case you need help in creating your cake contract, read this article: Cake Contract Terms and Conditions .

Good luck with your new venture!

About HICAPS

Over the years, HICAPS has helped bakers and businesses make delicious products by offering ingredients like ChiffonAide Cake Oil , Magic Whizk Instant Whipping Cream , Red Velvet Emulco Flavor and Color , Ube Yam Emulco Flavor and Color , and HICAPS Buttercream Prime Butter Blend .

HICAPS also provides tools and resources to valued partners such as the FREE Marketing Strategy For Bakery Business E-book and dealer locator that helps look for baking supplies stores near me .

Want more free tips and tutorials? Follow us on Facebook at Hicaps Mktg. Corp. and on YouTube at HicapsTV .

Want to be one of our valued partners? Fill this form out. Looking forward to talking to you soon!

• About the Author
• Latest Posts

Mervin Manalo is a Chemical Engineer who graduated from De La Salle University in Manila, Philippines. He has over 20 years of experience in the food industry and currently serves as President and CEO of HICAPS Mktg. Corp., a provider of prime baking ingredients.

He also attended a mini MBA program at Guthrie-Jensen, which helped him broaden his business knowledge and skills. Under his helm, HICAPS expanded its business and helped more clients grow thru the years. He loves technology and new trends and is always looking for ways to improve his products and services.

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Restaurants, food and drink, restaurants, food and drink | restaurant news: umaga bakehouse, a reimagined filipino bakery, among 9 openings in chicago.

An ensaymada along side an ube horchata drink, at Umaga Bakehouse, a new modern Filipino bakery, in Chicago, on April 25, 2024. (Antonio Perez/Chicago Tribune) Ube horchata, and bread is sumply ensaymada

Owners Kissel and Robert Fagaragan, at their Umaga Bakehouse, a new modern Filipino bakery, in Chicago, April 25, 2024. (Antonio Perez/Chicago Tribune)

Employees stack goods for customers at Umaga Bakehouse on April 25, 2024. (Antonio Perez/Chicago Tribune)

Customers line up to pay for their bakery goods at Umaga Bakehouse on April 25, 2024. (Antonio Perez/Chicago Tribune)

Owner Robert Fagaragan, bakes at Umaga Bakehouse, a new modern Filipino bakery, in Chicago, April 25, 2024. (Antonio Perez/Chicago Tribune)

Customers line up outside Umaga Bakehouse prior to the store opening at 9 a.m., on April 25, 2024. (Antonio Perez/Chicago Tribune)

Customers grab baskets of bakery goods at Umaga Bakehouse on April 25, 2024. (Antonio Perez/Chicago Tribune)

Umaga Bakehouse celebrated its grand opening with lines out the door and sold-out shelves in the Mayfair neighborhood on April 20 .

Kissel and Robert Fagaragan had to close their debut business for a day just to bake. The owners, who are wife and husband, didn’t expect the crowds.

“We couldn’t even fill up our shelves,” Kissel Fagaragan said. She’s the general manager, and he’s the head baker. Every time racks came out, she said, customers bought out all the hot baked goods.

That’s despite the bakery section inside Seafood City Supermarket just across the parking lot, and two bakeries in its shopping center. But the new shop is different.

Umaga Bakehouse is the reimagined Filipino bakery, Fagaragan said. They wanted to modernize the mom-and-pop shop bakery, she added, but still keep it traditional while not just making everything ube.

The couple wanted to keep it to their roots in the Philippines, she said, especially with their ensaymada. The delicately sweet and lightly savory baked brioche pastry is traditionally topped with grated white cheese and a dusting of sugar.

“That was one of the very first items my husband made in the lab, our home kitchen,” Fagaragan said. She had asked him to recreate the ensaymada that family brought back from the Philippines. He finally came up with their recipe, she said, that’s pillowy and buttery.

Their classic ensaymada has become a must-order item since their first pop-up held just last December at Side Practice Coffee. They considered critiques from friends and family, including their daughter’s friends’ parents. An almond ensaymada has also emerged as a fan favorite among their different flavors.

Pandesal, though, is their daily staple bread, finished in fine bread crumbs.

“That’s the No. 1 go-to for any Filipino,” Fagaragan said.

The couple met working at a bakery, but he was a cleaner then, not a baker, even though his father once had a bakery back in the Philippines.

“His dad, he just opened a shop in his own home,” she said about the former mini-mart in front of her husband’s childhood home that sold bread. That was so different from her childhood in California.

But she came up with the name for their bakery. Umaga means morning in Tagalog, one of the major languages spoken in the Philippines.

“You want fresh bread in the morning when you come into a bakery,” Fagaragan said.

And their senorita bread was the bestseller during their grand opening.

The Spanish bread, she said, is a small soft, pillowy roll with melted butter. “We’re giving it to you hot in a box.” When you bite into it, she added, it tastes like a very light pandesal with sweet butter that melts in your mouth.

The senorita bread is sold by the dozen for $7.99.

Another hit was their Ilocos-style empanada.

“From my husband’s province in the Philippines,” Fagaragan said. It’s bigger than their other empanadas, and made with a rice flour wrapper, filled with housemade longanisa, egg and papaya before it’s fried crisp.

The ube horchata takes days to make and sold out too.

The couple had planned to open their bakery daily, but they’re closed on Mondays for now.

Meanwhile, they plan to add halo-halo soon, made with jackfruit and banana that they’ll cook in syrup and Milky Milky ice cream by a local Filipino American woman-owned business.

And look for online ordering in the next few weeks.

“We also have artwork in the store,” Fagaragan said. The pieces feature their different family provinces in the Philippines and regional specialties to come.

“It’s not just gonna be the typical Filipino food you can get anywhere else.”

4703 W. Foster Ave., 872-250-3565, instagram.com/umagabakehouse

More new and notable openings, in alphabetical order:

A taste of the philippines.

Chef Kathy Vega Hardy moved her Filipino restaurant from a Chicago French Market stall to its own home. A Taste of the Philippines just opened with a ribbon-cutting event in the Jefferson Park neighborhood on April 19 . Get breakfast lumpia filled with bacon, egg and cheese; lechon fried rice with pork belly; and ube chocolate chip cookies. Do note they’re only open on Fridays for dinner, and Saturdays for brunch and dinner for now.

5914 W. Lawrence Ave., 720-746-8880, atasteofthephilippines.com

DineAmic Hospitality has transformed a corner of a new Fulton Market tower into a flowery French restaurant. Bar La Rue said bienvenue on April 18 . You’ll find a Royale with Cheese smash burger, also available “Provence style” served over Gruyère cheese fondue (which is not a thing in the South of France, mais ça va ); Bougie Chicken Tenders with caviar; and cocktails bien sûr plus nonalcoholic drinks, including a rosemary lemon Enchanté.

820 W. Fulton St., 312-533-4607, barlarue.com

Wicker Park welcomed Chicago’s first Cava, the fast-casual and fast-growing Mediterranean chain restaurant April 25. Get your bowls and pitas with proteins such as harissa honey chicken and spicy lamb meatballs, along with a host of dressings and toppings. The brand also offers handcrafted juices and is famous for its cult-favorite pita chips and Crazy Feta dip. Look for a second location in Vernon Hills this summer.

1484 N. Milwaukee Ave., cava.com , 872-319-2016

El Puestito

Chef and owner Ricardo Rodríguez is on the road again with his seasonal Mexican food truck, the mobile incarnation of his former “ Best Mexican Restaurant Hiding in a Grocery Store .” El Puestito parked in Belmont Gardens on March 11 . Follow the aroma of their signature woodfire-grilled pollo asado, now available alongside new quesabirria tacos and birria ramen. Do note they’re usually only open on weekend nights for now.

4414 W. Diversey Ave., 312-522-7607, lpuestito.com

Electric Funeral Bar

Jackalope Coffee & Tea House owners John Almonte and January Overton are “putting the fun in funeral.” Electric Funeral Bar began visitations in Bridgeport on April 10 . They’re “dying to meet you” with their Electric Funeral cocktail (mixed with bright blue curaçao), The Grim & Tonic and The Morgue-arita, across the street from the new Ramova Grill and Taproom .

3529 S. Halsted St., instagram.com/electricfuneralbar

Migos Fine Foods

Chef Brian Jupiter and his Frontier restaurant chef de cuisine Azazi Morsi have teamed up to bring halal fried chicken and tacos to the Northwest Side. Migos Fine Foods started sizzling in the Portage Park neighborhood on April 5 . Order fried chicken wings with buttermilk biscuits, lamb barbacoa tacos with harissa tzatziki and beignet sticks fried to order.

5044 W. Montrose Ave., 872-946-7015, migoschicago.com

Professor Pizza Old Town

Pizzaiolo Tony Scardino just debuted his first dine-in pizzeria. Professor Pizza started slicing in Old Town on April 12. Get his stunning deluxe sausage and peppers with whipped ricotta on a cracker-thin tavern-style crust , a wedge salad with pepperoni and green goddess dressing, plus a Sunday night-only dinner with spaghetti meatballs.

1610 N. Wells St., 312-471-0400, professor.pizza

Swadesi Cafe

Indienne chef Sujan Sarkar and culinary director Sahil Sethi have partnered again on a new project, an Indian coffee shop. Swadesi Cafe began brewing in the West Loop on March 26 . Sip on masala chai, possibly paired with a butter chicken croissant or a samosa chaat croissant with tamarind and mint.

328 S. Jefferson St., 708-553-6350, swadesicafe.com

In closing news:

Foxtrot and Dom’s Kitchen & Market , the luxury convenience and grocery stores with cafes, abruptly shut down all locations across Chicago and the country on April 23.

Cafe Selmarie , the beloved restaurant in the Lincoln Square neighborhood that marked its 40th anniversary last September with an announcement that owner Birgit Kobayashi would be retiring, finally closed on April 27 .

Tribune editor Lauryn Azu contributed to this story.

Know of a Chicago-area restaurant or bar that’s new and notable? Email food critic Louisa Chu at [email protected] .

Big screen or home stream, takeout or dine-in, Tribune writers are here to steer you toward your next great experience. Sign up for your free weekly Eat. Watch. Do. newsletter here .

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