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Also, my guess is that In France, people won’t pay 4 or 5 euros for a baguette, even If that is the price necessary for the owner of a small bakery (like a mom and pop type shop) to actually turn a profit.  So they can only charge what the market will bear and hope that it works as a loss leader.

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Mitch Weinstein aka "weinoo"

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5 minutes ago, weinoo said:

Also, my guess is that In France, people won’t pay 4 or 5 euros for a baguette, even If that is the price necessary for the owner of a small bakery (like a mom and pop type shop) to actually turn a profit.  So they can only charge what the market will bear and hope that it works as a loss leader.

 

They won't, but far from being a loss leader, the baguettes are what makes money. The ingredient costs are probably around 5 cents a loaf, and one baker can crank out hundreds. It's similar for croissants, etc. Most of the bakeries going under are generally not the "Mom and Pop" ones, which generally turn a healthy profit, but the crappy "pain chaud" that buy in the frozen dough.

 

These products pay the bills, while the margins on more elaborate cakes are much slimmer.

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13 hours ago, jmacnaughtan said:

Even at the €1-2 mark however, bread and pastries are the most profitable items in bakeries, generally because they can be easily made en masse. The losses generally come from the more elaborate cakes.

 

You should check your math about viennoiseries. Especially considering the front of house costs: to make a kg you need about 15 pieces. So this means for each kg you need to consider the costs of serving 15 dishes, collecting 15 dishes, washing 15 dishes, collecting 15 payments (ok, less than 15 since we need to consider coffee and the rest). Takes quite some time, takes a good portion of a dishwasher cycle. If you make a profit of 0.10 euro per piece and sell 200 pieces each day, it's 20 euro profit per day. You don't go far if that's your most profitable side.

 

 

 

Teo

 

Teo

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10 hours ago, teonzo said:

 

You should check your math about viennoiseries. Especially considering the front of house costs: to make a kg you need about 15 pieces. So this means for each kg you need to consider the costs of serving 15 dishes, collecting 15 dishes, washing 15 dishes, collecting 15 payments (ok, less than 15 since we need to consider coffee and the rest). Takes quite some time, takes a good portion of a dishwasher cycle. If you make a profit of 0.10 euro per piece and sell 200 pieces each day, it's 20 euro profit per day. You don't go far if that's your most profitable side.

 

 

 

Teo

 

 

I think we've got our wires crossed. When I hear "bakery", I think of a place that only sells to take away. Generally in these places, there's a baker, an apprentice and someone working on the till - no service, coffee or dishwashing. Sure, in cafés these pastries are more expensive.

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16 hours ago, weinoo said:

I get it on the cost of commodity raw materials. Now, what's the labor and o/h associated with that loaf, so we can see the gross margin?

 

 

 

As I said, it's easy for one person to crank out a couple of hundred loaves or pastries, so the labour cost per item is low. Similarly, they're all proved and baked en masse, so the overheads are greatly reduced. Unlike with more elaborate cakes, it takes relatively little time to make a large number of baguettes and pastries, prove them and crank them out throughout the day - it also helps that these are by far the most popular items. This is generally why, here at least, it's easy to get funding to open a boulangerie but much harder for a pâtisserie that doesn't do these high-margin, high-volume products.

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Y'all are killing me. I drove through Staunton (which is a lovely town, btw) last week. Twice. I expect to be back up in that area in the future, so be assured I'll be exploring Staunton and looking some of y'all up. And trying some of these wonderful things.

 

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15 minutes ago, Kim Shook said:

I gotta get to Staunton.  It's only one and a half hours away from us.  We'll see what the next few weeks brings virus-wise.  It's supposed to blow up, so I think we are back to essential trips only.  

 

Be sure and check hours for businesses you plan to visit.  Réunion, for example, is open only on weekends and only for takeout at this point. 

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