Brick City Cakes
Newark, NJ 07102
Owner: Valerie Corner-Minatee
Description of business: Brick City Cakes, is a mid-size trendy bakery that specializes in custom designed cakes and a variety of pastries. Brick City Cakes will produce homemade baked goods and other treats including donuts, pastries, breads, cakes, scones, strudels and other specialty items such as chocolate covered pretzels and other tantalizing goodies using primarily organic products. The customers will have choices of beverages including coffee, tea, juice, and milk. The bakery will provide freshly prepared bakery and pastry products at all times during business operations, with moderate batches of bakery and pastry products prepared during the day to assure fresh baked good are always available. Brick City Cakes will provide custom cakes at the customers request, which will include but not limited to wedding cakes, cup cake towers, cake pop displays, and all other special event needs. Finally, Brick City Cakes will incorporate the adaptability factor and cater to customers who require special needs such as vegan, gluten-free and sugar free diets. Brick City Cakes will also offer a special line of sugar free items including cakes, pies and cookies.
Initial start up cost is $250,000; a small business loan is needed, with a repayment plan of 7 years. Financing will cover the cost of the first 2 months rent and utilities (prior to opening), one delivery van (leased), two commercial ovens, one walk in commercial refrigerator, two refrigerated showroom cases, four professional floor mixer, one computer and printer, various tools, remodeling bakery, advertisements, supplies and ingredients (Gilbert, J.2014).
Industry Analysis: According to the Bakery Industry Analysis, the trend seems to be for healthy baked goods and comfort foods. Since the recession the bakery industry are showing signs of recovery with an emphasis on product with natural and organic ingredients. Also noted is the want for smaller portion sizes. Much of the baking industry income derives from commercial bakeries but the want for fresher, natural ingredients is bringing back the smaller hometown bakeries (Xi, Timothea, 2012).
In this market today in order to survive, they must face changes in the marketplace. Small bakeries may find that they cannot compete with the larger bakeries unless they provide other distinct value to their customers. By 2016, the number of companies in the bread sector is to shrink by 2.3 percent.
By taking advantage of trends in customers taste, bakeries can increase their margins and stay in business. Smaller companies can cater to what people desire such as handcrafted artisanal products, sugar artistry, and creating uniqueness that larger operations would not be able to copy. Other ideas include using ingredients that are more organic.
Many indicators help to give an idea on where the bakery industry maybe going in the next few years. The consumer price index for food and nondurable food products can be a signal for a potential increase in most bakery revenues, especially if the numbers are higher than the previous years past. Baked goods that will continue to grow healthful baked goods with no trans fats and less additives. Gluten-free foods that are tailored towards grain sensitive will also be a rising number.
Currently, there are no other businesses in the local area considered competition. The only competition is located 12.8 miles north in Rutherford, New Jersey. The competition consists of vegan, dairy free; egg free, peanut free, gluten free and soy free baked goods. The competition of grocery store bakeries exist and are convenient and are located in multiple areas of the city, as well as the franchise chain of Dunkin Donuts.
Disadvantages for competition include:…