Retail bakeries earn 3-5x markup but face daily customer demands and rent. Wholesale bakeries supply cafes and restaurants — lower margin but stable bulk orders. Hybrid models (60 percent retail, 40 percent wholesale) balance cash flow. Pure wholesale needs delivery logistics; pure retail needs prime location. Match the model to your strengths: front-of-house personality leans retail, while production efficiency leans wholesale. Many founders try both before choosing their lane.
— Curated by EatNTreat Baking Studio