How much does it cost to open a bakery?

Written by devra gartenstein | 13/05/2017
How much does it cost to open a bakery?
Retail display equipment adds to the cost of opening a bakery. (Getty Thinkstock)

The cost of opening a bakery depends on the scale of the operation you create, its location and whether it includes a retail space. A small wholesale bakery with a single oven can cost as little as £3,250 if you find a space that has been a food service location in the past, while a full service bakery designed for high volume production can cost hundreds of thousands of pounds.

Rent and Deposits

Leasing your bakery location will involve paying rent, as well as a damage deposit and possibly a deposit for your last month's rent as well. A small commercial space in an industrial part of town could cost as little as a few hundred pounds a month, while a large storefront in an area with busy foot traffic could easily cost up to £6,500 or more. You will also have to pay rent during the time you are upgrading and outfitting your bakery, which will likely take a minimum of two months.

Equipment

Your bakery will need sinks, ovens, mixers and refrigeration. Used stainless steel commercial sinks usually cost £260 to £325 as of 2011, while a brand new triple compartment sink will cost about £650 as of 2011. A used convection oven will likely cost £650 to £1,300, while a new model will run £2,600 to £6,500, depending on its size and complexity. A used reach-in cooler will cost £650 to £1,300, while a custom built walk-in cooler can easily run £6,500 to £13,000.

Installation

In order to prepare your space for the equipment you plan to install, you will need to make leasehold improvements such as electrical work and plumbing. If you find a space that has already been a bakery or restaurant you will save considerable sums on these upgrades, especially if you install your equipment in the same place as the previous owner. Plumbing will likely cost £6,500 to £13,000 as of 2011, and a ventilation system will cost you £3,250 to £6,500 if you are leasing a one-story building. You will also likely spend thousands of pounds on electrical upgrades.

Permits and Licenses

A license to operate a retail food-service establishment such as a bakery will probably cost between £325 and £650, while a wholesale food processor's permit costs about £65 per year in most areas as of 2011. In addition, you will probably need permits for most of the renovations you understake, such as plumbing permits, electrical permits and a mechanical permit for your ventilation system. The cost of these permits will depend on the scale of the operation, but each will range from a few hundred to a few thousand pounds.

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