# Cupcake Business



## cupcakin ashley (Oct 27, 2008)

Hi All,

I posted something on this last night, but it disappeared.. Probably user error! :talk:

Anyways, I'm looking to start a Cupcake Business in the Northwest Area... Washington or Oregon. I was just wondering if any of you had any advice on how to get started... Any of the trials and tribulations you've encountered if you own a bakery... and just any kind of feedback would be great!

look forward to hearing from you all

Thanks!!


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## camille (Oct 16, 2008)

You can make an appointment with a counselor at the Small Business Development Center in your area. They can provide a lot of information to you at no cost.

Since you live in Oregon, you may be able to start your business in your home. You'll need to contact the Dept. of Agriculture to schedule a home inspection and get licensed as a domestic kitchen. The inspectors are very helpful and can answer many of the technical questions you'll have. It's a good way to start without spending a lot of money. 

If you can't get your home kitchen licensed, I'd recommend trying to find an existing kitchen to rent before going out on your own. You can place an ad on Craig's List or check with churches, service clubs and armories in your area. There also may be a small restaurant that's only opened for part of the day - they may allow you to bake when they're closed for a small fee.

Hope this helps.


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## zcakes (Oct 14, 2008)

I completely agree with Camille. I work at a bakery that does about 3,000 cup cakes a week. I looked in to starting my own business but my county does not allow me to work from home. If you can work from home to start I think that is the best way. Good luck!


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## harpua (May 4, 2005)

I was the head baker at a brand new cupcakery last year. I don't really know how to begin to answer that question. I'll get to it eventually because it is late.

Do you want a storefront?


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## suzannar (Nov 14, 2008)

I too would like some advice on starting up a cupcakery in Florida


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## jerry i h (Aug 11, 2008)

I live in the SF/Bay Area, and I think the genesis of these odd, cupcake bakeries with exactly the same question. I have personally been a customer to at least 4 of them, and I have the same question. How on earth do these places, regardless of the amount media attention, sell enough cupcakes to stay in business? There is at least on local such bakery that has disappeared. 
To illustrate my curiosity:
monthly fixed cost of business: $5,000
profit per cupcake: $0.50
# of cupcakes to meet fixed business cost: 10,000
# days open per month: 30 (no, you must work 7 days a week)
# cupcakes per day: 333
# cupcake trays (12 pcs) per day: 28
Question: is your projected facility capable of both producing and selling almost 400 cupcakes PER DAY??? Even if you assume that every customer buys a box of 6, this comes to a total of 60 boxes A DAY. Is your hypothetical business capable of this? Will you have that many customer?
See my curiosity? I would like to know, in a year, how many of these highly vaunted cupcakeries are still in business. 
Yeah, I know, someone will criticize that my #'s are off. Granted: I am making them up. Still, before you actually try this, do a real-world, reasonable estimate via a solid business plan, that your cupcakery business will survive. 
Good luck, since I love the cupcakes at all the places I tried.


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## wheresthegrub (Oct 28, 2008)

:smiles: 
Cupcakeries in my area (San Fernando Valley) charge $3 a pop. I make *12 cupcakes* (using retail pricing) for a about a $1.50. If you buy ingrediants bulk, it will be a little less.

The most costly expense is the rent. Beat that obstacle, and you can make it.

Some YMCA's and Boys and Girls clubs have kitchens that are empty a good deal of time.

I, too, am waiting to see what happens to these guys that charge so much for such a specialty item. :look:


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## chefelle (Feb 17, 2007)

Labour dollars are the killer. Rent is cheap in comparison.


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## wheresthegrub (Oct 28, 2008)

It may be so over there, in beautiful Nova Scotia, but not here. 

labor= $8 per hour; 1000 hours of labor = $8000

rent= $4 per square foot; 1500 sqft = $6000 month.

YES, you can get cheaper rent, but not in "hip, trendy" areas where someone is more likely to buy a $3 cupcake.

I just saw a closed bakery that the owner is asking a $1 a square foot. Went to check it out with wifey, her first comment, "wow, I never thought I would see a place forgotten by humaninty" meaning, the area was a "dead zone"; maybe 70 years ago it was a busy commerce area.


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## suzannar (Nov 14, 2008)

I haven't seen the cost of start up bakery equipment mentioned. I understand that is very expensive?


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## m brown (May 29, 1999)

Equipment:

Mixers: 2800 = 20 qt
600= 6 qt
6000 = 80 qt

Table: 175 - 350

Venting: 3000- 50000

Stoves and ovens = 1500 - 5500

Displays = 600=3000


There are alot of variations in pricing. Many people will collect equipment over time.


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## chefelle (Feb 17, 2007)

I just outfitted and opened my own little patisserie in October. With alot of help from a good friend of mine and alot of connections I was able to completely outfit my bakery for $15,000. This does not include start up food costs, any additional expenses, or specialty equipment I already had. Nor does it include wiring and plumbing costs to install said equipment. That was almost $2000 alone with my father in law and my husband doing the work for free. What I have is valued at over $50,000 replacement cost.

I figure it cost me at least $35,000 to open my doors for business. And I already had alot of the stuff I would need to get started. I was lucky and had a lot of industry contacts who helped me a great deal--and a father in law and a husband who are extremely handy when it comes to construction/electrical and plumbing. You could easily spend $50,000 or more just on equipping a place. 

It's shocking when you get started purchasing equipment. Especially if you have worked in a well stocked restaurant kitchen. You think you only need one or two items but then you realize that you still need this. Oh and once you get this you still need that. And it's not luxury items--it's necessities like three compartment sinks and spray guns. Handwash sinks. Shelving units. It's an absolute monster.

And display cases! Wow--they increase your sales big time but they also cost you big time!

And then there's complying with all the many health and safety regulations. It can be done but it's not cheap--that's for sure!

I would be glad to share my experiences with anyone who is interested. Please feel free to send me a pm and I will gladly help if I am able to.


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## wheresthegrub (Oct 28, 2008)

Congrats!!!! :bounce: and you still have time to be online! 

I just got the 'GO" from an investor friend to find a donut shop/bakery.

Primarily looking for somewhere that has all the "guts" ready to go. There are a bunch around, just a matter of finding the right one for us. 

Good luck on your new place, u gonna post a picture or two??


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## chefelle (Feb 17, 2007)

Day off today. Just posted before I headed out to meet with my Sysco rep. On my way back out in a few minutes time.

I will try to take a few pictures of the shop and my work to post some time this week. My camera is in the back of my car...and I'm usually too lazy (or too busy!) to head out to the car to get it when I create something photo worthy. Ha! Ha!

Best of luck to you as you start your business. If I can be of any help please don't hesitate to contact me.


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## Guest (May 19, 2010)

Hi I am extremely interested in advice you can send my way. I am planning on opening up a business but  have many inquiries.


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## homemadecook (Jan 27, 2010)

There is a business cupcake here in Utah somewhere in Park City and they run their cupcake business at home. They were approved to run it at home. Maybe it will depend on the county if they will allow you to run a home business.

But cupcake business is really good. Any of you here from Utah as I am planning to buy cupcakes as wedding favors for my August wedding..


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## tralfaz (Mar 4, 2007)

20 years ago some friends and I bought a pizzeria.  Not cupcakes, but similar in that we had 1 item on the menu.  It took a while to turn it around, but we did.

1 This used to be standard advice: don't expect to make a profit for 1 1/2 years.  You could, maybe you will, but don't count on the business paying your personal bills for 1 1/2 years.  You'll have times when you sell lots and can't keep up with demand, and there will be times when you can't afford to buy flour.  Any money you make should be used for supplies, equipment, a nest egg for when the water main gets shut off.  If you do spend $30,000 to open your doors, it could easily take 1 1/2 years to make $30,000 of profit.  If you are and instant hit--Great!!!  Just don't expect it.

2 Are you talking about a mid sized city or larger?  You need a lot of potential customers for this to take off.  Are there any established businesses that will compete with you?  You'll have to offer something other places don't offer.   High quality, nearby location, etc.   It'll be difficult to compete with a popular cupcake shop or even bakery. 

3 I assume you will provide most of the labor yourself.  That will cut down costs.  Buy used equipment and replace it with new later. 

4 Be flexible.  If your favorite mango and rosemary cupcake sits there  but customers keep buying vanilla with pink sprinkles, you might consider making more vanilla cupcakes.  Don't take it personally.  Your goal is to stay in business so that you can offer up the Best Cupcakes Ever.

5 Start small and grow.  Bills will be a constant headache while your sales are growing.   Smaller bills mean fewer headaches.  Choose a location that can start small but expand.  You don't want move location because you'll lose some customers.  Two main reasons businesses don't succeed:  they expand too fast (lots of bills and expenses) and changing location (lose clients).


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## addicted2food (Jun 1, 2010)

zcakes said:


> I completely agree with Camille. I work at a bakery that does about 3,000 cup cakes a week. I looked in to starting my own business but my county does not allow me to work from home. If you can work from home to start I think that is the best way. Good luck!


Yes, that is an awesome idea (that is, if you're allowed to start a business like that at home). But if it does, it would be some sort of experimental stage for you. So that you can "test the waters before diving into the vast ocean"Session data, metaphorically speaking. /img/vbsmilies/smilies/wink.gif

By the way, I saw this link ... it says How To Start a Bakery . This might just answer some of your questions. Goodluck on your future plans! /img/vbsmilies/smilies/thumb.gif


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## fayez1beauty (Aug 2, 2010)

Hi.  I was looking to open up a cupcake bakery in the Houston, Texas area.  Are there any cupcake bakery owners that would be willing to talk about their experiences so that I can determine if this is what I realy want to do?  Thanks in advance.


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## skya (Sep 9, 2010)

HI, HAS ANYONE OUT THERE STARTED A CUPCAKE BUSINESS IN THE SOUTH FLORIDA AREA?

I NEED INFORMATION SUCH AS: HOW DO I OBTAIN FUNDING? WHAT IS THE START UP COST?

WHAT REQUIREMENTS ARE NEEDED TO GET MY KITCHEN LICENSED AS A WORKING HOME KITCHEN?

DO THE PROFESSIONALS USE BOXED OR FROM SCRATCH RECEIPES?

ANY INFORMATION WOULD BE TRUELY APPRECIATED.


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## chefedb (Apr 3, 2010)

Bottom line.  You must do VOLUME to make $ and to sell $3.00 cupcakes in this economy is quite difficult.


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## Guest (Sep 9, 2010)

Aren't cupcakeries a little overdone?

It seems like an old trend to me.

Magnolia and Cupcake Cafe made a splash on the food scene over 10 years ago, thanks to "Sex in the City".

But now even their sales are flagging.


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## poojasoni (Sep 13, 2010)

hey chef...

i am starting up my own cupcakery and wanted some guidance

can you help

email me at [email protected]



chefelle said:


> I just outfitted and opened my own little patisserie in October. With alot of help from a good friend of mine and alot of connections I was able to completely outfit my bakery for $15,000. This does not include start up food costs, any additional expenses, or specialty equipment I already had. Nor does it include wiring and plumbing costs to install said equipment. That was almost $2000 alone with my father in law and my husband doing the work for free. What I have is valued at over $50,000 replacement cost.
> 
> I figure it cost me at least $35,000 to open my doors for business. And I already had alot of the stuff I would need to get started. I was lucky and had a lot of industry contacts who helped me a great deal--and a father in law and a husband who are extremely handy when it comes to construction/electrical and plumbing. You could easily spend $50,000 or more just on equipping a place.
> 
> ...


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## mdillin0 (Apr 12, 2011)

Hi I thinking of opening a cupcake business in my area: North Carolina, wanted some advice for start up since you were offering advice and guidance. All information greatly appreciated. this is for chefelle

Thanks


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## pam gonzalez (Sep 3, 2011)

I agree here. My friends and I have a small cupcake business and they want to open a bakery. I keep looking at the numbers this way and think "How can we ever make it?" But we all need dreams! Let us know what you decide and prove us wrong!


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## mezzaluna (Aug 29, 2000)

I'm hearing buzz that cupcakes are on the decline in popularity, and that the next big thing will be pies- individual pies, large pies, savory pies, sweet pies....

Anyone know of evidence this is developing? I also saw a piece earlier this year on somebody's Food Network show about a young woman who's making a go of it with pies in NYC.


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## chefedb (Apr 3, 2010)

Between online and brick and mortar there now are to many cupcake companies and it's playing out  like the Hula Hoop. There are few pie places if you get it on ground floor its good.Many years ago there was a pie company called 4 and 20 pies it was a franchise and bankrolled by Baskin Robbins it lasted about 4 years in New York and Long Island. The pies were great to bad it just died out. No savory pies just fruit and creams were sold. Chicken, beef, veal,shrimp, crab , lobster, duck, Vegetable, Mexican and various combinatios of savories  will work. Individual size as well as family size. The working mom has no time today to make this. She will buy them if not frozen.


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## mezzaluna (Aug 29, 2000)

Savory pies have been in grocery stores in N. America for decades. My mom bought Swanson brand pies for us as a treat when she and Dad went out for the evening. They were pretty wretched, but we didn't know any better! Now you can find Marie Callendar's brand (whoever makes them under that label) and so forth, but unless they get the crust right, I'm not interested. 

I make individual ones for my mother-in-law. I'd been using the Betty Crocker basic crust recipe with good results, but now I like the Cook's Illustrated recipe that subs vodka for some of the water. I think the flakiness approaches lard-based crusts. I make a veloute sauce with braising liquid (first saute leeks, carrots and herbs, etc. and add chicken broth and white wine), or I roast bone-in breasts and use Swanson broth if I'm rushed. I add par-cooked frozen veggies (she doesn't get enough veg!) to the sauce, fill the dish, and chill- then I put the crust on, wrap and freeze. She thaws them before baking.


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## peaceful (Jan 30, 2010)

Camille said:


> You can make an appointment with a counselor at the Small Business Development Center in your area. They can provide a lot of information to you at no cost.
> 
> Since you live in Oregon, you may be able to start your business in your home. You'll need to contact the Dept. of Agriculture to schedule a home inspection and get licensed as a domestic kitchen. The inspectors are very helpful and can answer many of the technical questions you'll have. It's a good way to start without spending a lot of money.
> 
> ...


Awesome advice! Especially checking with churches before investing in a kitchen. Our church has a huge kitchen that goes unused for a greater part of the year. That would be something to look into.


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## chefedb (Apr 3, 2010)

Yes swanson has been for years, I think we are all aware of that, Show me a non frozen seafood or beef or turkey pie thats beenaround for years  in a choice of sizes. Swanson simply dips the chicken in. Marie Callander makes one with chicken in it, but again frozen. Again I say cupcake fad is drawing to a close.


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## bellasarah (Oct 7, 2011)

I'm in the process of opening a small cupcakery (coffee, smoothies and lunch specials, too) but I'm really stumped on the best kind of oven to get. Are there any strong opinion of convection vs. standard?


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## sherbel (Sep 10, 2011)

chefedb said:


> Yes swanson has been for years, I think we are all aware of that, Show me a non frozen seafood or beef or turkey pie thats beenaround for years in a choice of sizes. Swanson simply dips the chicken in. Marie Callander makes one with chicken in it, but again frozen. Again I say cupcake fad is drawing to a close.


I agree. In my smallish town, (outskirts of Vancouver BC) a cupcake bakery has just closed down. They had a dandy line of yummy cupcakes, but obviously they just couldn't keep going. The good news is that the same owner is re-opening her business as.....wait for it.......a gluten-free bakery. The next big thing, I suppose.


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## miggy12 (Jun 13, 2008)

How about a cake ball or cake pop business?  I plan on making them from home and selling them. Everyone I've had try them has loved them and feels I can market them with no problem. What are your thoughts on that?


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## tiffanyann (Dec 9, 2011)

I am actually launching a non-profit cupcake line out of our existing frozen yogurt store. Luckily, the frozen yogurt store pays for most of the large overhead expenses to help us out, but I was wondering if you had any recommendations on the best type of oven to purchase for the cupcake business!

Thank you!

Tiffany


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## cupcakesweety (Jan 13, 2012)

You are going to be charging a good price not only that but people expect fresh cupcakes not out of the box or they would just make them. I would say that you should play around with making some cupcakes and come up with a couple signature cupcakes. Offer a good selection of flavors for the cake, frostings, fillings, and decorations. You always want your cupcakes to look great. Customers don't come to you for something they can do they won't come back you have to make it a one of a kind!


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## cupcakesweety (Jan 13, 2012)

Convection is the way to go all the way!


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## petemccracken (Sep 18, 2008)

Really? Care to explain why?



cupcakesweety said:


> Convection is the way to go all the way


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## foodpump (Oct 10, 2005)

Convections are good for roasting bones and baked potatoes, other than that, you're always fighting to compensate for the oven's weak points.

Now, it is true in large production bakeries they do use convections, but this a for different animal.  You wheel a loaded trolley in the oven and close the door.  The trolley rotates in the oven and the fan reverses direction every few minutes.

The standard convection oven found in most kitchens has many weak points:

1) No top or bottom heat.  You can't bake, say a quiche with a crispy bottom and delicate pale top, nor can you colour off a lemon meringue pie.  To compensate, I've used everything from baking on trays lined with bbq bricks to running a torch over finished produuts.

2) The fan blows and blows and blows.  In one direction only.  This means you have to rotate product in the oven or else you'll get lop-sided, leaning tops on muffins, cupcakes, bread, etc..  When you open the door, the fan still blows untill the spring-activated switch turns the fan off.  This means you get a blast of forced hot air evry time you open the door.  Heats up the ktichen pretty fast--whether you want to, or not.

The first mistake any baker or cook makes is to put items on a paper lined tray into the a convection.  The fan picks up the paper and blows, The product runs to the center of the tray and joins it's brothers--in one big lump.  You compensate by putting wieghs on the paper, which takes up space, and time putting them on and taking them off.  Small items like profiteroles or fancy pastry garnishes have a hbit of flying off the tray if you only have a single speed fan.  So does bacon, and forget meringues....

Yup, the fan blows....

3) Doors, they have more issues than Jim Morrsion did.  They are full height , making loading to the entire cavity easy.  That also means every time you open the door, you loose all your heat, and it takes the oven longer to heat up and back to temperature.  The doors get the most abuse, and are the first to fail.  Show me a baker or cook who uses a convection oven, and I'll show you burn marks on their fore arms.

I've used these ovens for close to thirty years now, but always my employer's ovens.  My choice for my own business?  A deck oven.


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## missnia01 (Jan 15, 2012)

Hello, I live in Ohio and we have alot of farmers market places and outside vending and things of that matter and they are fairly inexpensive as low as $25 a day so I bake at home and go rent a space to sell my cupcakes.  Most big bread,meat,and food venders started out at these markets and made enough money to eventually open a storefront, So start there and research your supplies.  Hope this helps..


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## petemccracken (Sep 18, 2008)

You did not identify your location; however, I presume you are in a state that has a Cottage Industry Law that exempts you from the normal Food Code provisions, correct?



missnia01 said:


> Hello, I live in Ohio and we have alot of farmers market places and outside vending and things of that matter and they are fairly inexpensive as low as $25 a day so I bake at home and go rent a space to sell my cupcakes. Most big bread,meat,and food venders started out at these markets and made enough money to eventually open a storefront, So start there and research your supplies. Hope this helps..


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## peggy33 (Feb 20, 2012)

Hi I really want to start a cupcake business from home(chicago). I do have some baking experience and lots of ideas for new and different kinds of cupcakes. I, like most people don't have alot of money to start. How does it work to start on line? Do you deliver them yourself or pay to have them shipped? How far should you send them and will they stay fresh? Also is it a good idea to go to craft fairs and such and set up a table? I know I have lots of questions but this is something I have dreamed of doing for a long time and since I got hurt at work and have been off 3 yrs now I need to do this.  Thanks for you help


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## petemccracken (Sep 18, 2008)

Here's a starting point: http://homebasedbaking.com/knowledgebase/rules-regulations/illinois/


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## chefedb (Apr 3, 2010)

Unless you have a new gimmick or something new, I believe you got on the train to late. There are cupcake both established and startups all over the place. In other words to many, but good luck anyway. . Maybe try mini cupcakes on a stick.?


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## chefedb (Apr 3, 2010)

Convections are good only if you manually can turn fan off,(for baking) which on some models you can, otherwise I agree with Foodpump.


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## dinein (Mar 2, 2012)

Congrats for your new business!


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## carolina (Mar 4, 2014)

Baking it Happen....

My name is Carolina Aitken. My husband Don has been encouraging me to open a business here in Cave.Junction Oregon. I have lived here only 6 years, so my work ethics are better than what you would find locally.

After some great thought and slowly getting everything needed together including employees, I am just about-ready to start baking cupcakes.mI do have a business plan already. I also own a promotional company, so marketing will be one more thing done. Name of business names are still open for negotiations.

I have managed,owed,built and sold many business So, I am very aware of what goes into it all. Currently my husband and I own rental property and financially we have been retired for 15 years traveling and what not, but now home I need something to do. It is hard to do nothing

Thanks, Carolina
E-Mail: [email protected]
P.S. Please fee free to e-mail me and we'll set up a time to talk on the phone.


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## flipflopgirl (Jun 27, 2012)

Carolina said:


> Baking it Happen....
> 
> My name is Carolina Aitken. My husband Don has been encouraging me to open a business here in Cave.Junction Oregon. I have lived here only 6 years, so my work ethics are better than what you would find locally.


I came I read I moved on.

Curiosity is my main reason for taking another look.

To be honest I wanted to check for any comments (last post was two years ago) and see if anyone had figured out what your question is (or your statement means).

Actually what I really wanted to know is.....if I moved to Cave Junction and stayed for longer than 6 years what exactly would happen to my normally excellent work ethic?

mimi


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