When planning to invest in a business, there should be a better basis than what product is trending. It would take years before any ROI (return on investment) can be achieved, and your product may have lost its popularity by that time. While the product should not be the only basis for a business, it does help when your product is a necessity and has been around for more than a thousand years.
Baked goods, bread and cookies have been around since all of recorded history. Whether they are treated as a breakfast food, a lunch meal or even as a dessert, franchise opportunities for baked goods and bakeries are relatively safe. However, selling the right product, even carrying a famous brand, is not a guarantee of success. There are still lessons to be learned, and those who have succeeded in bakery franchises share some insights.
Follow Your Franchisor’s Recipe
For baking franchises, it is still crucial that you have a passion for baking. It is likely that your branch will have its oven as customers would prefer their products freshly baked. This is where your franchisor’s experience steps in. They have had successful recipes for success, literally and figuratively. It is necessary to follow their instructions to the letter, as your customers who patronize the brand will expect no less than that quality.
It must be reminded that part of your agreement is to adhere to the franchise’s policies and operational methods. You are less like likely to fail if you adopt their formula.
Maintain Constant Communication with the Franchisor
Your franchisor is your partner, and their success is your success—and vice versa. In your experience of actually running the shop, you have the privilege of having direct interaction with the customers. You would know what they would want, and gain feedback on the products.
Most franchisors would seek this information from their franchisees through monthly or even weekly reports. However, you can take the initiative of communicating with product development or other departments. Some companies would allow listen and let you try and make mutual decisions with the central management to come up with new strategies and products to attract customers from different demographics.
Compete on Quality and Customer Service rather than Price
We have often heard the term that prices are “competitive.” This is most often the name of the game in the food business. However, for baked goods, they do not have the same dynamics as fast foods and snacks.
True fans of bakeries would know if the bakers have skimped on the ingredients. While you may not have the long lines that fast food shops have, you will have loyal customers who will keep your business sustainable, and even thriving. They are willing and able to pay for quality products, and they will respect you more if you do not compromise.
Customers of baked goods also appreciate excellent customer service. They reward the “extra mile” you have with word-of-mouth and social media reviews that will bring in the clientele.
The values of baked goods are quality, consistency and customer service. For most of its patrons, they are not after quick or cheap meals. Understanding these values, along with the lessons given by your franchisor can help bring your success to your baked goods franchise.