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How Much Money Do Bakery Owners Make?

Bakery owners can make a lot of money. If you can find the right niche, support your business with talented staff, and optimize your expenses, you can increase your paycheck as a bakery owner.

This article outlines the average income of bakery owners and tips to increase revenue.


Bakery Owner Earnings vs Employee Salary

Bakery owners can pay themselves a salary. They can also make a percentage of the bakery’s revenue. The median salary for a bakery owner is $78,540. Bakery owners in the San Francisco and New York City neighborhoods can make upwards of $90,000.

If the bakery’s revenue drops, the owner takes a hit to their earnings. However, if the bakery sees an increase in its earnings, the owner has the option to raise their salary or invest back in the business.


Average Revenue for a Bakery Business

Pre-pandemic, the average revenue for a bakery business was $450,000. With business expenses ranging from 35-50% of revenue, the average bakery owner makes 30% of their revenue in salary or less. The other 70% is used to cover expenses and profits.


Typical Expenses for a Bakery Business

Owners constantly balance their salary with the costs needed to run the business. Let’s take a look at typical expenses for a bakery business.

Monthly Operating Expenses

The monthly operating expenses for a typical bakery include:

  • Rent: $2,000
  • Utilities: $500
  • Insurance: $200
  • Wages: $3,000
  • Ingredients: $1,000
  • Equipment: $300
  • Advertising and marketing: $500

Tax Liabilities

All businesses are required to pay taxes. However, the tax liability for a bakery owner will depend on the business’s profit. The average tax rate for a business owner is 15%. This means that if the bakery makes $100,000 in profit, the owner will owe $15,000 in taxes.

All the Other Expenses

There are other expenses that a bakery owner will face including:

  • Licenses and permits: $500
  • Accounting and legal fees: $1,000
  • Loans and interest payments: $2,000
  • Depreciation: $3,000
  • Maintenance and repairs: $500


How to Increase Revenue

There are a few ways to increase revenue for a bakery business. One way is to offer new products. This could include seasonal items or unique flavors. Another way to increase revenue is to offer discounts or promotions. 

For example, the bakery could offer a discount for customers who purchase a certain amount of baked goods.

Another way to increase revenue is to expand the business. This could include opening new locations or adding delivery services.

When the business expands or raises its profit margins, the bakery business owner has the option to raise their earnings too. Therefore, the potential is almost limitless.


Start A Profitable Bakery

Bakery owners have the potential to make a lot of money. The average bakery owner makes over $70,000 annually. However, the potential earnings are almost limitless. Balance costs with revenue and it’s possible to increase profits and earnings.