Baker & Baker issued tips on how businesses can remain competitive despite current challenges. The report shows that it can no longer be business as usual for bakeries, food service operators and retailers, with only 1 in 5 consumers feeling their spending hasn’t changed because of the cost-of-living crisis.
With that in mind, Baker & Baker shared the following tips:
- Demand-led baking – Batch baking from scratch means a fixed number of products must be baked regardless of consumer demand. Baking from frozen pucks or part-baked products, and/or supplementing with thaw and serve goods, means only the number required is baked off/defrosted, helping to reduce waste and to keep an eye on the bottom line.
- Turn waste into wow – This is often a missed opportunity but using offcuts in other recipes such as toppings on other bakery products including doughnuts, brownies, cookies, etc. (or using as part of desserts or milkshakes e.g., brownies in sundaes) can create the wow factor and help products standout in store.
- Get creative – Use products in different ways so fewer SKUs need to be held, helping to protect margins. For example, a cookie puck can be baked off as a traditional cookie or included as part of a hot ice cream dessert.
- Sacrifice size rather than quality – Reducing the product size to hit the price point so quality can be retained is an option worth considering.
- Stay familiar – Keep to familiar flavors or twists on the familiar. When money is limited, people are less prepared to try new products and flavors for fear they might not like them, and they will have wasted their money. Sticking with chocolate could be a wise decision.
“The research indicated that it can no longer be business as usual for bakeries, food service operators and retailers”, comments Helen Sinclair, UK marketing manager at Baker & Baker. “The top tips are a mixture of quick wins and longer-term considerations to help operators remain competitive during these challenging times.”
The company recently published a sweet bakery cost-of-living report. Baker & Baker will share more research findings and tips on its LinkedIn page.
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