Wholesale bakery with your own production unit

Cafes, hotels, restaurants, grocery stores, caterers and institutions like care homes and schools.

Wholesale sales on standing weekly or daily orders, often with delivery fees or minimum order sizes. Higher volume lowers your cost per loaf.

• Commercial baking and production planning
• Costing, pricing and managing suppliers
• Managing staff as you grow

• Zoning, building permits and fire code approvals for commercial baking, check with your municipality
• Food premises approval from the local public health unit, and possible federal or provincial licensing if you sell across provinces, check with the CFIA
• Commercial general liability, product liability and property insurance
• WCB/WSIB registration once you hire, rules vary by province
• High fixed costs such as rent, equipment and energy, so test demand first
• Winter weather can disrupt deliveries, plan backup routes

Startup costs are typically estimated at around $60,000 to $200,000, depending on the lease, fit-out, and the ovens, mixers and racks you buy. High fixed costs mean it is wise to test demand before committing.

Monthly revenue is typically estimated at around $8,000 to $40,000, depending on your customers, product range and production capacity. Rent, equipment and energy are high fixed costs, so these figures are estimates, not guarantees of profit.

Check zoning, building permits and fire code approvals with your municipality, plus food premises approval from your local public health unit. If you sell across provinces, check federal or provincial licensing with the CFIA. Also check insurance and WCB/WSIB once you hire.