The idea that "the more comprehensive the product range, the more choices customers have, and the better business will be" is incorrect. A typical bakery is usually between 60 and 150 square meters in size. Within this space, you need to set aside areas for the kitchen and storage, which means the front-of-house area is actually only a few dozen square meters-and the space actually available for displaying products is even smaller.
In this situation, maximizing sales per square foot is the optimal solution. To achieve this, you cannot display too many product varieties. In other words, selecting premium items to fill this limited space is the right choice. Therefore, reasonably reducing the number of product categories will increase revenue-this is a fact.
In fact, this issue can also be framed as a question of what products the store should actually sell. From a comprehensive perspective, products that meet three criteria-tasty and visually appealing, quick to prepare, and cost-effective-are the ones that should be retained, while others can be discontinued or adjusted.
"Delicious and visually appealing" is relatively straightforward-these are customers' most basic expectations today. Whether you prioritize taste or appearance depends on your store's core business strategy. However, maintaining both quality and presentation requires flawless execution at every stage-from ingredient sourcing and production to final display on the shelves.
"Quick service" refers to high production efficiency that can rapidly meet high customer demand. In reality, kitchen output is also related to the number of product categories. If there are too many categories, the kitchen will face complications in ingredient preparation, production sequencing, and process management. Conversely, reducing the number of categories allows the kitchen to focus production, naturally increasing efficiency.
The issue of costs is also straightforward: avoid engaging in activities that generate buzz but result in losses. It's important to note that costs extend beyond just raw materials; they must also account for the time invested in the production process. Spending excessive time on a single product is often counterproductive.
Most customers don't walk into a bakery because they're hungry right now. They might be preparing for tomorrow's breakfast, inspired by a friend's social media post, or simply tempted to buy after sampling a product while passing by.
Based on this, our criteria for product selection are as follows:
① Review backend data: Choose the items that sell the most or are shared the most-these are the products that customers have effectively voted for.
② Assess production speed: Rank products by how quickly they can be produced, then estimate how long it takes to make them-any items taking too long can be eliminated outright.
After completing these two steps, sort the list and see which products overlap at the top. These will essentially form the core product lineup for your shop.
③ Finally, calculate the cost: Look for products with a gross margin of 60% or higher (this is a figure I often use, for reference only). Also, ensure the required ingredients are stable-products with ingredients that frequently run out are out of the question. For ingredients with significant price fluctuations, calculate the gross margin range to assist in later product selection decisions.
In a bakery, it's not feasible to stock and sell every single product. Your products need to be memorable to customers, maintain consistent quality and efficiency in the kitchen, and generate profit.
Don't be reluctant to cut products from your menu. Eliminating 30% of slow-moving items not only saves money but also frees up resources to focus on best-sellers. This approach boosts both sales and profits. Therefore, the most important step right now isn't to introduce new products, but to identify and remove the unsuitable ones from your current lineup.
