Story by Maggie Glisan
KANSAS CITY, MO — Samples of fresh-baked ancient grain bread, a self-serve station for mochi donuts, a colorful display of customizable cakes next to a digital kiosk for easy ordering. In-store bakeries (ISBs) are becoming increasingly attractive destinations for consumers looking to add a touch of freshness, personalization and convenience to their shopping trips.
According to the Food Industry Association (FMI)’s Power of In-Store Bakery 2022 report, 95% of shoppers consume in-store bakery products at least occasionally, and 63% do so weekly, giving the department ample opportunities to capitalize on growing consumer trends.
In-store bakeries have always been the go-to for big celebrations like graduations and birthdays, but in the post-pandemic era, as consumers find even more niche occasions to celebrate, ISBs are stepping up to satisfy those everyday moments.
“Consumers appreciate special occasions even more now and are finding new ways to celebrate,” said Whitney Atkins, VP of marketing at the International Dairy Deli Bakery Association.
And no occasion seems too small.
“Maybe it is a ‘treat myself because I just got out of a meeting that should have been an email’ occasion,” Atkins continued.
Home-centric activities like watching sporting events also offer big opportunities for in-store bakeries.
A September 2023 Circana survey, for example, found that 45% of Americans expected to tune into one or more NFL games from their homes, suggesting consumers are interested in splurging and gathering at home for sporting occasions beyond the Super Bowl.
“Look at the popularity of F1 Racing or the World Cup,” said Anne-Marie Roerink, president of 210 Analytics. “There are so many new movements out there, whether that’s sports or Taylor Swift tailgating. There’s a lot of fun to be had, and it’s really that little smile I believe people are looking for.”
Social media plays a massive role in what celebrations look like, according to Roerink. Pinterest’s impact on special occasions and customization is huge, especially for millennials with children.
“Millennials want to add that personal touch,” she said. “They might buy a pre-packaged Easter basket, but then turn to the in-store bakery for a cookie with their name on it to personalize the gift.”
Roerink said a commitment to good customer service and having the right employees are vital for bakeries looking to offer more customization, though she noted increased automation for tasks such as cake and cookie decorating will help bakeries offer personalized products despite labor challenges.
When it comes to offering customized baked goods, Marissa Velie, education and certification director for Retail Bakers of America, sees bakers going one of two ways: either offering a small, set number of designs or offering elaborate personalization. If they go the latter route, investing in technology is key.
“There’s a lot of software development in the baking industry to support customization,” Velie said. “In the past, it’s been very labor intensive. But now, there are digital programs that allow people to design cakes virtually, and that saves a lot of time and eliminates a lot of error.”
This story has been adapted from the December | Q4 Craft to Crumb mini-mag. Read the full story in the digital issue here.
