Bakery Business Plan I. Executive Summary

Bakery Business Plan
I. Executive Summary
MAGT Bakery is a start-up coffee and bakery retail establishment located in Manila.
MAGT Bakery expects to catch the interest of a regular loyal customer base with its broad
variety of coffee and pastry products. The company plans to build a strong market position in the
town, due to the partners' industry experience and mild competitive climate in the area. MAGT
Bakery aims to offer its products at a competitive price to meet the demand of the middle-to
higher-income local market area residents and tourists.
MAGT is equally owned and managed by its owner, Mark Anthony Tomogsoc. Mark has
extensive experience in sales, marketing, and management, and was vice president of marketing
with both MAGT Bakery and MAGT Real Estate business. Mark brings experience in the area of
finance and administration, including a stint as chief financial officer with both business entities.
The company intends to hire two full-time pastry bakers and six part-time baristas to handle
customer service and day to day operations.
MAGT Bakery offers a broad range of coffee and espresso products, all from high quality
Batangas and Columbian grown imported coffee beans. MAGT BAKERY caters to all of its
customers by providing each customer coffee and espresso products made to suit the customer,
down to the smallest detail.
The bakery provides freshly prepared bakery and pastry products at all times during
business operations. Six to eight moderate batches of bakery and pastry products are prepared
during the day to assure fresh baked goods are always available.
II. Point of View
The retail coffee industry in the Philippines has recently experienced rapid growth. The
cool climate every rainy season stimulates consumption of hot beverages throughout the year.
MAGT BAKERY wants to establish a large regular customer base, and will therefore
concentrate its business and marketing on local residents, which will be the dominant target
market. This will establish a healthy, consistent revenue base to ensure stability of the business.
In addition, tourist traffic is expected to comprise approximately 35% of the revenues. High
visibility and competitive products and service are critical to capture this segment of the market.
III. Statement of the Problem
How to meet clients’ expectations at a competitive price at the same time meet the demand of
every client from all walks of life?
IV. Objectives
“MAGT BAKERY aims to offer high quality coffee, espresso, and pastry products at a
competitive price to meet the demand of the middle- to higher-income local market area
residents and tourists.”
MAGT BAKERY aimed to succeed by offering consumers high quality coffee, espresso,
and bakery products with personal service at a competitive price; be competitive and eventually
lead the race of coffee and pastry industry. MAGT BAKERY expects to raise PHP 110,000 of its
own capital, and to borrow PHP100,000 guaranteed by the SBA as a 2-year loan. This provides
the bulk of the current financing required. MAGT BAKERY expects to continue its steady
growth in profitability over the next three years of operations.

V. Alternative Solutions
MAGT BAKERY's competitive edge is the relatively low level of competition in the
local area in this particular niche. To develop good business strategies, perform a SWOT analysis
of your business. It's easy with our free guide and template. Learn how to perform a SWOT
analysis.
MAGT BAKERY expects to make significant investments in sales, sales support, and
product development personnel. MAGT BAKERY's Break-even Analysis is based on the
average of the first-year figures for total sales by units, and by operating expenses. These are
presented as per-unit revenue, per-unit cost, and fixed costs. These conservative assumptions
make for a more accurate estimate of real risk. MAGT BAKERY should break even by the
fourth month of its operation as it steadily increases its sales.
VI. Recommendations
MAGT BAKERY’s marketing strategy will be focused at getting new customers,
retaining the existing customers, getting customers to spend more and come back more often.
Establishing a loyal customer base is of a paramount importance since such customer core will
not only generate most of the sales but also will provide favorable referrals.
MAGT BAKERY will position itself as unique coffee bar where its patrons can not only
enjoy a cup of perfectly brewed coffee and sumptuous pastries but also spend their time in an
ambient environment. Comfortable sofas and chairs, dimmed light and quiet relaxing music will
help the customers to relax from the daily stresses and will differentiate MAGT BAKERY from
incumbent competitors.
To develop good business strategies, perform a SWOT analysis of your business. It's easy
with our free guide and template. Learn how to perform a SWOT analysis
MAGT BAKERY baristas will handle the sales transactions. To speed up the customer
service, at least two employees will be servicing clients--while one employee will be preparing
the customer's order, the other one will be taking care of the sales transaction. All sales data
logged on the computerized point-of-sale terminal will be later analyzed for marketing purposes.
In order to build up its client base, MAGT BAKERY will use banners and fliers, utilize
customer referrals and cross-promotions with other businesses in the community. At the same
time, customer retention programs will be used to make sure the customers are coming back and
spending more at the coffee bar.

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Bakery Business Plan

higher-income local market area residents and tourists.

customer service and day to day operations.

down to the smallest detail.

III. Statement of the Problem

every client from all walks of life?

residents and tourists.”

growth in profitability over the next three years of operations.

product development personnel. MAGT BAKERY's Break-even Analysis is based on the

fourth month of its operation as it steadily increases its sales.

MAGT BAKERY’s marketing strategy will be focused at getting new customers,

spending more at the coffee bar.

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