How to start 2023 Strong with Our Best Bakery Business Strategies

Start 2023 Strong with Our Best Business Practices

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It’s been one year since Dawn Foods launched Profitability Playbook, our monthly blog that gives bakeries tips and tactics for improving operations, increasing sales, and strengthening customer relationships. We’re heading into 2023 with goals to help you grow even more. That’s why our focus this month is starting the New Year strong. We’re sharing three best business practices for thriving in today’s complex economic environment. 

1. Lean into Limited Time Offers

baker piping cupcake

Limited Time Offers (LTOs) can be one of the most effective business tools in your bakery’s arsenal if used consistently. A recent Datassential report on Limited Time Offers shows that 63 percent of consumers’ LTO purchases are impulse buys (1). What does that mean? Bakeries can boost sales by tapping into products that inspire those in-the-moment sales. How can you successfully work LTOs into your assortment? First, know that consumers are most drawn to LTOs that introduce them to something new – a new ingredient, unique flavour combination, or unexpected mash up of tastes they’re familiar with are most successful. In fact, 65 percent of consumer LTO purchases are their first time trying that product (2). 

LTOs also give bakeries a platform for testing new products. You can determine which items should become permanent fixtures on your menu based on consumer interest and sales. LTOs also provide a way to learn more about pricing and what your customer base is willing to pay for unique products. According to a recent study on LTOs (3), 91 percent of the LTOs were sold at either premium or average pricing. They are often the types of desserts that command a price point that benefits your bottom line and help you determine where that threshold is.

As you develop your 2023 plan for LTOs, make sure you’re selecting easy options for your team to implement. With labour and ingredient shortages still impacting operations, it’s essential to be realistic about execution. In fact, when owner-operators were asked to reflect on their most successful LTOs, the two top factors cited as contributing to their success were “easy to train staff to make them” and “using ingredients I already buy in new ways” (4).

2. Assess Your Ingredients
When asked what the greatest operational challenges facing their business are, 39 percent of owner-operators stated ingredient shortage or unavailability (5). Now is an ideal time to look at your portfolio of products and ingredients to ensure you’re getting the most out of them as you can. Questions to consider:

1. Do you use mixes that can make multiple desserts? 
2. Are you using frozen products to offset labour-intensive baking? 
3. Have you worked with your supplier to learn more about products that can help you streamline operations without sacrificing taste, visual appeal, and quality?

These questions are important to ask now more than ever; supply chain and labour challenges are forecasted to continue into 2023. While bakeries can’t become fully immune to these issues, you can take steps to minimize their impact. A partner like Dawn can help you make small yet impactful shifts in your products that will reduce your bakery’s vulnerability to ingredient shortages. Options include:

1. Shifting from all scratch baking to speed scratch baking by using mixes or ready use icings that cut down on ingredients without sacrificing taste
2. Considering vegan mixes that can create amazing desserts without the need for eggs
3. Integrating frozen items into your assortment to save on time-intensive baking and prep work
4. Purchasing versatile mixes that produce multiple items. Dawn has a full line of mixes that can be used for more than one item.

If you are unsure how to start, reach out to Dawn. Our team of technical sales representatives can help you assess your product and ingredient mix to formulate a plan for streamlining where it makes sense for your business.

3. Embrace Technology

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Technology is an everyday part of life. From cell phones to social media, everyone and everything is connected. Are you using technology to the full advantage of your bakery? Tech can improve your engagement, your efficiency, and your sales. Here’s how:

1. Social Media: By leveraging social media, you’re not only building an audience that extends beyond the walls of your bakery, you’re encouraging word of mouth recommendations. Food is social and immersive. Consumers love to share their latest purchases and where they’re dining. Take advantage of this by building your own platforms for sharing pictures and descriptions of LTOs, seasonal offerings, and daily flavours or specials. Then encourage your customers to share with friends, family and followers. 

2. Online Ordering: Consider integrating online ordering into your website if you haven’t already. The pandemic trained society to turn to online ordering options for almost everything – be sure you’re capitalizing on this behaviour and giving customers an easy way to interact and purchase.

There’s no shortage of ideas on how to improve your bakery’s success in 2023. By focusing on how you use technology, your ingredient mix, and LTOs, bakeries can make changes that impact your bottom line and grow customer relationships. 

To work with Dawn to assess your current ingredient assortment, reach out to your Dawn Sales Representative today. 

 

1, 2, 3, 4 Datassential, June 2022
5 Datassential, May 2022

 

Let Dawn Foods Help

As you plan for the holiday season and beyond, know that Dawn Foods is here to help. Contact us today to start making small changes that will greatly impact on your bottom line.


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