yourbizidea

Scorecard · Toronto, ON

Retail bakery with a small counter

37/100

How much does it cost to open a bakery in Toronto? $120,000–$225,000 in Toronto, ON, on the figures below.

Profit
C
A Toronto counter bakery takes $1,300–$2,600 a day at a $9 average basket. Ingredient cost is low at 18–24%, but labour starts at 3am and runs 34% of sales.
Difficulty
D
Toronto Public Health food premises inspection, a certified food handler on every shift, and a deck or convection oven install that needs an ESA electrical permit.
Capital
E$120,000–$225,000
Ovens, mixer, proofer and retarder are $55,000–$95,000, the fit-out $40,000–$80,000, and Toronto retail rent needs a $24,000 deposit at $55 a square foot.

Break-even

The number that has to be true
172 baskets a day at $9
Fixed costs a month
$26,500
The assumption
A wholesale account or two absorbing 30% of production before 9am.

Opening for less

All three together take $183,000 off: $225,000 becomes $42,000.

  • Bake in a rented commissary and sell at farmers' markets for the first year

    −$95,000

    Costs you: No walk-in trade and no street presence, so the brand starts from nothing again at the storefront

  • Take over a bakery or restaurant space with ovens and ventilation in place

    −$60,000

    Costs you: The layout is theirs and the equipment is at the end of its life

  • Buy a used deck oven and mixer through a Toronto restaurant liquidator

    −$28,000

    Costs you: No service contract, and a dead oven is a closed day

How you’d do it

What you need

  • Toronto Public Health food premises approval and a certified food handler per shift
  • A space zoned for baking with three-phase power or the budget to bring it in
  • $26,500 a month covered for six months of thin mornings
  • One wholesale buyer signed before the doors open

First 3 moves

  1. 1Sell at three Toronto markets for eight weeks and measure what actually sells out.
  2. 2Ask two cafés what they pay per croissant wholesale, and whether they would switch.
  3. 3Get quotes on a used versus new deck oven, then recount break-even on each.

The hardest part

The 3am shift, every day, with a product that is worthless by evening.

This card is graded on the published scale: how each grade is worked out. Every idea on every board is measured the same way, which is what makes two ideas comparable.

Put your own idea on a board

Your city, your one line. The capital range lands free in seconds. $9 scores 5 ideas and ranks them against each other.

Scored nearby