The cost of starting a new bakery depends on the size and scope of the bakery you want to open as well as the location you select. Opening a retail bakery involves furnishing a customer seating area, and a display and retail sales area, as well as a production space. Opening a wholesale production facility that produces baked goods in volume involves a considerable investment in equipment.
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Rent and deposits
Your start-up bakery will incur expenses as you sign a lease on a space and pay rent while you upgrade the space to make it suitable for baking. The rent you pay for a bakery space will depend on its size and location. A small commercial space in an area with no foot traffic would be suitable for a small wholesale bakery and can cost as little as a few hundred pounds a month as of 2012, while a large retail space in a busy part of town can easily cost thousands of pounds each month. You will also likely have to pay deposits equal to several months' rent, and you will probably pay several months' rent while you make leasehold improvements before your bakery ever opens its doors.
In order to install bakery equipment, you will likely need to make leasehold improvements to your commercial space. If you find a location that has already been a bakery or food-service establishment you will save a considerable amount, especially if you install your sinks and ovens where the previous renter had them. Plumbing upgrades can cost between £1,300 and £9,750 as of 2012, depending on how many sinks you need and where you put them. The cost of electrical upgrades is comparable, and you may also need to spend several thousand pounds to install gas lines.
The cost of bakery equipment depends on the scale of your operation as well as whether you purchase new or used fixtures. Used convection ovens can cost as little as £650 to £1,300 as of 2012, while new convection ovens generally cost £1,950 to £6,500. Sinks usually cost £390 to £780. A freestanding cooler will probably cost £650 to £3,250, and a walk-in cooler will cost £3,250 to £13,000 depending on its size. You will also probably spend several thousand pounds on industrial mixers and prep tables.
If your bakery includes a customer seating area, you will incur costs furnishing this area to make it a pleasant place to sit. Some bakery owners scour second-hand stores for unusual furnishings. If you use this approach you may be able to furnish your bakery seating area for a few hundred pounds, although it will probably require a considerable investment of time. Alternately, you can purchase restaurant tables for several hundred quid each and comfortable chairs for about £65 each as of 2012.
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