What to look for when you're not looking

"It's easy to miss something you're not looking for," said Doug Winnie, business coach for ActionCOACH, during "The 5 ways to great profits in your baking business" educational session at All Things Baking.  Winnie outlined five simple ways to boost profitability, a few of which often cause bakery owners to cringe. Lead generation--get customers in the door Conversion rate--get them to buy products Number of transactions--increase frequency of visits Average sales--boost ticket averages Profit margins--grow overall profits Winnie stressed the importance of establishing a unique selling proposition (USP) to get customers in the door. "You all have something unique about you. Your personal story is very powerful--use it," he said. To boost conversion rates, he noted that bakers shouldn't shy away from offering guarantees just because they're afraid customers will take advantage of them to the bakery's detriment. They can actually help build sales by allaying customer fears and establishing consistency. "Create guarantees and then a system for delivery. In your industry, customers are worried about quality freshness and time. Eliminate that by promising those things or they get their money back. You'd be surprised how much this can boost business." Offering free product is another simple way to grow a bakery's customer base at a minimal cost to the operator when compared to the longterm return. "Often when I tell bakery owners to do this, they tell me, 'I don't want to give away a $4 eclair.' And I'll say, 'How much does it actually cost you to make?' '70 cents.' That's basically nothing and the return you get is significant." Another area that evoked a collective moan among operators was creating scripts, though Winnie stressed that they are critical to encouraging sales and don't take long to put together. "People don't like (scripts), but they're important. Your team might not remember your USP or your guarantees." Winnie also encouraged bakery owners to revisit prices, noting that customers aren't as price sensitive as operators tend to think. "When is the last time you raised your prices?" he said. "Your customers don't buy on price; they buy on value." Other tips to boost margins include renegotiating prices with suppliers, renting out idle space, reviewing phone costs, getting rid of "C and D" clients, who don't pay on time and complain often, he added. "Give them to your competitors," he said, laughing. "Knowledge only becomes valuable when acted upon," he said at the close of his presentation. "Act on what you learned at this conference."

Dawn completes third-party debt refinancing

Advertisement Dawn Food Products' board of directors and senior leadership team closed an agreement on June 29 that refinanced all company third-party debt and includes a five-year, $225 million revolver loan facility led by Wells Fargo Capital Finance. The company plans to continue its growth strategy in the coming years, especially in Europe. "We are excited that our exceptional financial reputation and strong strategic business plans have earned the confidence of a premium financial leader such as Wells Fargo that will partner with Dawn to provide the right resources for our future growth," Dave Knowlton, Dawn CFO, said in a statement. "We look forward to a long-term, positive relationship with Wells Fargo as we continue expanding our business while we keep investing in our foundation." Dawn is exploring European financing options to enable further growth in that region, according to the statement.

Study questions organic benefits

Advertisement Organically grown produce and meat do not provide more health benefits than those grown by conventional methods, according to a study by researchers at Stanford University. The scientists analyzed the findings of 237 studies over four decades; topics included the health effects of organic foods on humans and comparisons of the nutrients and contaminants in foods. The Stanford group saw no significant difference in the vitamin content in organic versus conventional produce and meat. However, certain nutrients were found in much higher levels in organics, including phosphorus in produce and omega-3 fatty acids in milk and chicken. The researchers also found that pesticide residue was 30 percent more likely to be found on conventional produce, while 7 percent of organic produce contained pesticide residue and all traces of pesticides fell within legal allowed limits. Additionally, there is no difference between organic and conventional produce when it comes to contamination from bacteria like salmonella and campylobacter, according to the study, but it is possible organics carry a higher risk for E. coli contamination. Bacteria resistant to three or more antibiotics were far more commonly found in conventional chicken and pork than in their organic counterparts. None of the studies examined by the researchers focused on the long-term health effects of organic food.

We're heading to Houston!

The editors of Modern Baking will be in Houston Sept. 9-11 for the All Things Baking expo. Check back at The Baking Blog for live posts throughout the the show. And be sure to follow us on Twitter: @modernbaking, @mhennessyMB and @kmartinMB for live Tweets and photos from the educational sessions, special events and all the action on the show floor!

Reestablished family bakery sees rapid expansion

Advertisement Reincarnated just two years ago as a wholesale bakery, Pittsburgh-based 5 Generation Bakers now sells its signature Jenny Lee Gourmet Cinnamon Swirl Bread in more than 1,000 retail outlets from New England to Missouri, according to RestaurantNews.com. Jenny Lee, a retail/specialty wholesale bakery founded by the Baker family, closed its doors in 2008 after a devastating fire. Amid growing demand for the signature cinnamon swirl bread as well as a determination to keep the family business going, fifth-generation baker Scott Baker reopened Jenny Lee in 2009 as the aptly named 5 Generation Bakers, a commercial manufacturer of frozen wholesale products. Available products currently include original cinnamon swirl bread, with additional flavors including raisin, apple, cranberry, chocolate chip and pumpkin nut; as well as peanut brittle. The signature bread is made from sweet dough swirled with korintje cinnamon and baked with a in a crimped cylindrical pan. After baking, the bread is topped with melted butter and tossed in cinnamon-sugar. The company began with one customer, a local unit of King's Family Restaurant, and quickly expanded to foodservice and supermarket customers around the eastern United States, with more being added daily, according to the company.

Bruegger’s helps fight childhood hunger

Advertisement Bruegger's Bagels is launching a fundraising campaign on Sept. 4 to support Share Our Strength's No Kid Hungry campaign, joining thousands of restaurants and bakeries in the fight to end childhood hunger in America. Bruegger's will raise money through its Facebook page and in the company's 300-plus bakeries across the U.S. On Facebook, Bruegger's will donate $1 to Dine Out For No Kid Hungry each time someone "Likes" the bagel chain. In the bakeries, coupon books will be on sale for $3, with 100 percent of the proceeds going to the campaign. The coupons, worth more than $20, can be used on free bagels, soups or sandwiches throughout the year. "Hunger is such a problem in our country, but it has a solution," Jim Vinz, co-CEO of Bruegger's parent company Le Duff America and chairman of the Dine Out For No Kid Hungry advisory board, said in a press release. "We have enough food in this country and know that if we work together we can connect kids—through donations, awareness, education, and improved access—to the nutritious meals they need to lead happy, healthy lives." Bruegger's hopes to quadruple its donation from $25,000 in 2011 to $100,000 in 2012, to help No Kid Hungry raise awareness, support school breakfast, summer and after-school meal programs, and educate kids and their families on how to cook healthy, inexpensive meals. The campaign ends Sept. 22.