# Splitting cake profits



## Dave M (Aug 25, 2021)

Hi guys! Nice to be hear I’m new to the forum, I am opening a takeaway cafe in November and have a question about profits...

My friend bakes cupcakes/cakes and I want them on sale in my shop. How would I go about sharing the profits with my friend fairly and paying her for her labour/skills etc?

I know it sounds a daft question but I want to make sure I’m covering everything properly 

thanks in advance 

Dave


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## Dave M (Aug 25, 2021)

FoodFighter said:


> I'd recommend your friend calculates to the penny, her bill of materials, energy usage, and her time that goes into making a single cake. This will give you an "all" in cost, your friend should then double that number.
> 
> That's the price she sells it to you.
> 
> ...


Thank you so much for that, couldn't ask for a better answer 👍


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## retiredbaker (Dec 29, 2019)

Dave M said:


> Hi guys! Nice to be hear I'm new to the forum, I am opening a takeaway cafe in November and have a question about profits...
> 
> My friend bakes cupcakes/cakes and I want them on sale in my shop. How would I go about sharing the profits with my friend fairly and paying her for her labour/skills etc?
> 
> ...


unless she is your employee you don't pay her labor or skill, you simply buy her product...she pays herself.
Not being trained she isn't likely to be productive enough to sell wholesale.

Her food cost should be closer to 33%.
Your cost can be closer to 50% because you don't have to cover all the production and delivery costs.


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## Dave M (Aug 25, 2021)

retiredbaker said:


> unless she is your employee you don't pay her labor or skill, you simply buy her product...she pays herself.
> Not being trained she isn't likely to be productive enough to sell wholesale.
> 
> Her food cost should be closer to 33%.
> Your cost can be closer to 50% because you don't have to cover all the production and delivery costs.





retiredbaker said:


> unless she is your employee you don't pay her labor or skill, you simply buy her product...she pays herself.
> Not being trained she isn't likely to be productive enough to sell wholesale.
> 
> Her food cost should be closer to 33%.
> Your cost can be closer to 50% because you don't have to cover all the production and delivery costs.


Hi retired baker 👨‍🍳

After talking to her I've offered to by her cupcakes for a pound each (could end up being a little less) I will then sell for maybe 1.70 to 2.00 a cake...

is there any advice you can give me on starting up? I'm opening in November but not knowing how much to bake etc is abit worrying as I have no idea how busy (or not) I will be, exciting stuff also I must admit I can't wait to get this going


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## retiredbaker (Dec 29, 2019)

Dave M said:


> Hi retired baker 👨‍🍳
> 
> After talking to her I've offered to by her cupcakes for a pound each (could end up being a little less) I will then sell for maybe 1.70 to 2.00 a cake...
> 
> is there any advice you can give me on starting up? I'm opening in November but not knowing how much to bake etc is abit worrying as I have no idea how busy (or not) I will be, exciting stuff also I must admit I can't wait to get this going


find the local facebook page for your town, start to stir up interest before opening.
Keep baking what moves, ditch the poor sellers unless they're durable , such as biscotti.
You can freeze raw scones, bake straight from the freezer for best results, that enables you to quickly replace the ones that sell out. 
Cookies, brownies and other squares such as oatmeal sq's , blondies etc are all good , they have good shelf life and freeze well.


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## Dave M (Aug 25, 2021)

retiredbaker said:


> find the local facebook page for your town, start to stir up interest before opening.
> Keep baking what moves, ditch the poor sellers unless they're durable , such as biscotti.
> You can freeze raw scones, bake straight from the freezer for best results, that enables you to quickly replace the ones that sell out.
> Cookies, brownies and other squares such as oatmeal sq's , blondies etc are all good , they have good shelf life and freeze well.


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## Dave M (Aug 25, 2021)

Thanks again all, you stole my next question about freezable products 😂 Any other advice for start ups? I will be doing an opening deal on welsh cakes which I’m looking forward to. Also want to deliver fresh bread to the community but not quite sure on baking at such a high volume 

thanks again


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## Dave M (Aug 25, 2021)

FoodFighter said:


> I'd make a dozen of each: Peanut butter, chocolate, vanilla, coffee, and red velvet.
> 
> If they aren't selling by closing time take a note of the loss and give to a food bank.
> 
> You can write the loss down on your tax return.


That's a nice variety and I had forgotten about coffee cake, will definitely do some


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## retiredbaker (Dec 29, 2019)

bread is the black hole of bakeries.
If I was selling sandwiches I'd do bread, otherwise forget it.


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## Dave M (Aug 25, 2021)

retiredbaker said:


> bread is the black hole of bakeries.
> If I was selling sandwiches I'd do bread, otherwise forget it.


Really? It looks very time consuming but profitable so I'm 50/50 (bit like the loaf 😂) what makes you say that?


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## retiredbaker (Dec 29, 2019)

decades of direct bread experience.
Tell me of any product you can put so much time and space into , with such a short shelf life.

Make a bread roll, sell it for $1.
Take that same roll and put chicken salad on and it turns into $7.
Its no contest.
People will come to you and want you to supply them with bread so they can make sandwiches, you have to be a dope to supply them. Supply yourself.

20 yrs ago a survey showed 70% of bakeries were selling sandwiches. 
What I see today is bakery cafes everywhere that do little baking and mostly cafe.


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## Dave M (Aug 25, 2021)

retiredbaker said:


> decades of direct bread experience.
> Tell me of any product you can put so much time and space into , with such a short shelf life.
> 
> Make a bread roll, sell it for $1.
> ...


I have to admit I did see a flaw in the bread making, your advice is golden I'm opening in November. The themed birthday cakes are huge at the mo so will be getting someone on those, just hoping it all works as I don't want to work for a company again 😂


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## retiredbaker (Dec 29, 2019)

Dave M said:


> I have to admit I did see a flaw in the bread making, your advice is golden I'm opening in November. The themed birthday cakes are huge at the mo so will be getting someone on those, just hoping it all works as I don't want to work for a company again 😂


theme and novelty cakes , I hate them but thats where the money is.
With seats, coffee and lunches you'd immediately see where the money is.

if you go strictly bakeshop its gonna be very tough to compete when every super market pretends to sell fresh baked simulated edible baked goods. You cannot compete with a machine.


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## Dave M (Aug 25, 2021)

retiredbaker said:


> theme and novelty cakes , I hate them but thats where the money is.
> With seats, coffee and lunches you'd immediately see where the money is.
> 
> if you go strictly bakeshop its gonna be very tough to compete when every super market pretends to sell fresh baked simulated edible baked goods. You cannot compete with a machine.


No that's the problem I used to work for one of these machines...I have a few products that aren't in the area so I'm relying on them abit. I'm willing to put the hours in and do whatever it takes to not go back to the machine 😂


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