Bakery Loans for Small Business Shops

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Help Your Business Rise with Bakery Loans

Bakery loans can provide you with the funding you need to grow your retail or wholesale bakery trade business. Whether you’re looking to expand your kitchen or add some new bakers to the team, you can rely on bakery shop financing to give you the boost you need.

Bakery Shop Industry Trends

Before deciding if you’d like to spend money to grow your business, it might be useful to see just how bakery shops are performing in today’s market. Retail shops are the most common types of bakeries, per Webstaurant Store. Unlike wholesale bakeries, which sell their products to grocery stores and restaurants for resale, retail bakeries sell right to customers. Some of the most prominent types of retail bakeries are bakery cafes, counter service, food trucks, specialty bakeries, and home bakeries.

According to IBIS World, the bakery industry in the U.S. has grown by 2.9% between 2014 and 2019. In 2019 alone, bakery businesses are expected to bring in $11 billion of total revenue; this represents a 1.1% increase in just this year. 

The Panera Bread chain currently holds the largest market share of bakeries in the U.S. However, the industry is still highly segmented, with small, mom-and-pop shops dominating the rest of the market.

How to Spend Bakery Loans

When you’ve realized it’s time to grow your business, you might be ready to invest in a bakery loan. But how exactly do you plan on using it? There are plenty of ways to apply this type of funding to improve your operations. Here are just a handful of tactics:

Expand Your Space

Expand Your Space

If you’ve recently noticed you have more customers than you can accommodate in your current shop, you might want to grow your physical space. Maybe you don’t have enough ovens to bake the amount of pastries your customers desire. Or perhaps you need room to store your ingredients. Bakery loans give you extra financing to grow your space so you can handle the influx of business coming in.
Hire Talented Bakers

Hire Talented Bakers

Even if your storefront and kitchen are in tip-top shape, you need a talented staff of bakers and servers attending to your clientele. Bakery loans can help cover employee payroll costs so that you can give your current staff the pay and benefits they deserve. Or, if you plan on growing your business, you can use this funding to hire and train new workers.
Update Your Equipment

Update Your Equipment

Maybe the size of your space is sufficient, but the quality of the machines and appliances you’re using every day is not. Bakery loans come in handy, providing you equipment financing to upgrade your walk-in fridge, oven, mixers, and other appliances and tools. You can also use this cash to purchase new equipment if what you have just isn’t cutting it.
Get the Word Out

Get the Word Out

Whether your bakery is the talk of the town or needs some promotional help, it’s a good idea to build a marketing strategy to get the word out. Bakery loans can help you cover paid promotions on social media, TV, radio, or any other platform. And if you don’t have time to handle this yourself, consider finding a professional. Business marketing loans can help you hire a marketing and social media manager.