Puff pastry shock freezing as a business
Puff pastry can be frozen up to one year without loss of taste, nutritional properties, and violation of volumetric texture. Domestic consumer trusts this semi-prepped product. Housewives willingly use it, saving their time, effort and significantly accelerating the process of home baking. The positive dynamics of the market creates good prerequisites for startups in this area.
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Segment subgroups
According to the degree of readiness and the proposed method of sales, shock freezing of puff pastry and products made divided into four subgroups:
- Actual puff pastry. Available at grocery stores and grocery supermarkets
- Frozen semi-prepped products that required baking: puffs, croissants, rolls, etc. Available in small retail stores, locations. Baked on the spot
- The frozen semi-prepped products (90% ready) (Part Baked). They serve as products for cafes working on the principle of "fast fine"
- Ready-made puff pastries for long-term storage. A relatively new subgroup for domestic commercial practice. An explosive increase in consumption expected in connection with the development of kitchen appliances: ovens are equipped with programs that combine the proper defrosting and heating until cooked.
Types of organizations
Large supermarkets and grocery chains produce and freeze puff pastry using their own baking and refrigeration equipment. It does not make much sense to create a startup in this subgroup with the expectation of sales in independent grocery stores, since the ratio of sales volume and logistics costs will not be in your favor. The following types of business plans are more promising:
- Deliveries of ready-made frozen pastries. It is supposed to offer the consumer an assortment of pies, croissants, and other products both frozen and after heating at the request of the buyer. Clients are independent grocery stores who do not need to purchase additional equipment: ordinary freezer cabinets and household microwave ovens are enough. Required from the supplier: production, shock freezing of puffs, their delivery and branding support
- Opening of a round-the-clock bakery. Shock freezing of baked products provides unique competitive advantages in this area. Customers will quickly appreciate that bread, rolls and puff pastry are always available, regardless of any natural and urban emergency
- Organization of the "fast fine" network. The opening of several compact fast food stores, free from the need to cook food from scratch. Baking, shock freezing of pies, puffs, and other products, as well as logistics are provided from a single center
Price tag and expected payback
Consider 2 versions of different capacity - for a family business and requiring serious investments.
Frozen pastry delivery
The minimum price for entering the business can be achieved by supplying a small amount of frozen pastries; however, this option is coupled with the need and willingness to do a significant amount of creative work. For example, create a local brand of croissants. However, in terms of the level of investments, such business may well be limited to the “garage” framework. If you live in your own home and you have a car, then there is no need to rent a room and no logistics costs. The purchase of packaging equipment can also be postponed for the future, costing a start with a single format of custom packages of kraft paper with your logo.
It is enough to purchase:
- Set for production (refrigerator, table, rack, set of dishes, mixer, dough mixing machine of minimum productivity, oven) - $3,000 - $4,000
- Freezing equipment (shock-freezing chamber of small productivity) - $5,000 - $ 10,000
- Storage (industrial freezer with a total volume of about 1000 l) - $500
- A chamber for transportation (car freezer with a volume of 80 - 100 l) - about $1,000
A total of about $1,500 should be reserved to start the inventory of pastry products, packaging, business expenses, and petty cash. If we limit ourselves to servicing the average neighborhood, then working just 5 days a week, you can earn $1,000 - $1,500 minus all expenses. Focus should be on payback within 1.5 years. However, even get the full payback, this business is quite easily scalable and makes it possible to attract workers.
Organizing chain of cafes
The project designed to open 10 mini-cafes, will require the allocation of about $25,000 for each location with an average area of 20 m². This amount takes into account the design of the premises, rent, and the purchase of equipment, furniture and the costs of recruiting and training personnel.
Investments structured as follows:
- Costs for the production equipment of the bakery - $30,000
- Purchase of a medium-sized box-type chamber and freezers for storage - $60,000
- Installation costs, installation of missing communications and associated costs
- Purchase of a minivan with a freezer compartment - $15,000
- Initial purchase of baking products - $3,000
- Starting advertising campaign - $5,000
- Rent for the first 3 months of $1,000 - $2,000
- Costs for hiring employees and their training - $1,000
- Salary for the first 3 months - $7,000
The total investment to launch the chain is about $ 370,000. The expected payback in the conditions of the average regional center is 1.5 - 2 years.
Summary
Interestingly, the puff pastry shock freezing business of puff pastry products is highly scalable. Its various options demonstrate approximately the same level of profitability and payback period. An additional reserve for increasing profitability is the purchase of part of the equipment in the form of used units. Do not neglect the importance of a rational advertising campaign. It is equally relevant both for the promotion of new types of food and for competition in the environment already mastered by other players.
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