Retail Bakeries

SIC 5461

Companies in this industry

Industry report:

This category includes establishments primarily engaged in the retail sale of bakery products. The products may be either purchased from others or made on the premises. Establishments manufacturing bakery products for the trade are classified in SIC 2051: Bread and Other Bakery Products, Except Cookies and Crackers; SIC 2052: Cookies and Crackers; or SIC 2053: Frozen Bakery Products, Except Bread. Those purchasing bakery products and selling house-to-house are classified in SIC 5963: Direct Selling Establishments.

Industry Snapshot

According to the U.S. Census Bureau, there were more than 38,000 firms categorized as retail bakeries or snack and nonalcoholic beverage bars in this industry in the early 2010s. Retail bakeries controlled about 45 percent of the market, while the doughnut shop segment represented less than 33 percent and the bagel shop segment accounted for slightly more than 6 percent. The industry was valued at around $7.6 billion.

The top bakery in the United States in the early 2010s was St. Louis, Missouri-based Panera Bread with 1,450 stores and 15,900 employees in 40 states. Panera expanded rapidly during the second half of the first decade of the 2000s, opening more than 300 new stores and nearly doubling sales, with revenues jumping from $640 million in 2005 to $1.3 billion in 2008. Despite the economic recession, which caused a decline in the frequency of consumers dining out, Panera was one of the few food service companies that increased revenues in 2008, up 3.4 percent from 2007. The company battled for customers by increasing its hot food selection, cutting costs, and increasing prices of some items. By 2011 annual sales were $1.8 billion. Other leaders in this segment included Au Bon Pain, Atlanta Bread, CoCo's, Cosi, and Corner Bakery Café.

Einstein Noah Restaurant Group of Lakewood, Colorado, was the largest bagel shop operator in 2011. The company, which had 730 company-owned and franchised in 40 states, reported 2011 revenues of $411.7 million. Brands included Einstein Bros. (which accounted for more than 80 percent of brand sales), Chesapeake Bagel Bakery, Manhattan Bagel, and Noah's New York Bagels. In 2012 the firm sought to increase its presence in the Pacific Northwest by purchasing Kettleman Bagel Company and planning to rebrand five Kettleman Bagel locations in Portland, Oregon, to Einstein Bros. Bagels.

The doughnut segment of the industry was led by Dunkin' Brands, which operated more than 9,800 stores in 30 countries, including about 6,800 locations in the United States. The company, which went public in 2011, reported $577.1 million in revenues that year. About 65 percent of Dunkin' Donut store sales were generated by beverages. In 2012 the store was rated number one in the Brand Keys Customer Loyalty Engagement Index in the coffee category for the sixth year in a row. While its beverage competitor, Starbucks, scaled back operations by closing nonproducing locations, Dunkin' Donuts announced a massive expansion plan in 2009, with the goal of increasing its presence in the United States to 15,000 stores by 2020. The company, which continued to face increased competition from fast food establishments like McDonald's, kept its focus on mid-priced, quick-serve items but also had plans to add a line of food items aimed at more health-conscience consumers.

Meanwhile, competitor Krispy Kreme Donuts, Inc., based in Winston-Salem, North Carolina, struggled during the first decade of the 2000s. Share prices dropped from $108.50 in November 2000 to just $1.01 in February 2009. The company's revenues fell off steadily, from $709 million in the fiscal year ending January 2005 to just $384 million for the fiscal year ending January 2008. Among other economic issues, accounting credibility among investors and analysts after the U.S. Securities and Exchange Commission began a probe in 2004 into the company's accounting practices was also a concern for Krispy Kreme. The inquiry, which was settled in March 2009, unnerved investors and led to upheaval at the helm of the company, which had four different chief executive officers in less than five years. However, by mid-2009, the company was poised for a comeback based on smaller store formats and expansion into Asia. By 2011 the firm had 650 locations in the United States and 20 other countries with annual sales of almost $362 million. According to Nation's Restaurant News in 2012, the firm planned to augment business by increasing beverage sales and reducing the cost of operations. President Ken May commented, "We'll focus on reducing the cost of the box. You'll probably see us shrink it."

© COPYRIGHT 2018 The Gale Group, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. For permission to reuse this article, contact the Copyright Clearance Center.

News and information about Retail Bakeries

Research and Markets Adds New Report: State of the Industry: Retail Bakeries in the U.S. (10Th Edition)
Food & Beverage Close-Up; May 9, 2016; 462 words
...the "State of the Industry: Retail Bakeries in the U.S. (10th Edition...Trends -Number and Location of Retail Bakeries -Average Sales Per Bakery and...Media a Vital Marketing Tool for Retail Bakeries Report information: http...
Research and Markets Adds Report: Retail Bakeries Industry in the U.S. and its International Trade [2012 Edition].(Report)
Entertainment Close-up; January 16, 2012; 524 words
...Relations US, LLC's new report "Retail Bakeries Industry in the U.S. and...report highlights include: The Retail Bakeries Industry report contains the...com/research/afb062/retail_bakeries_in ((Comments on this story...
Research and Markets Offers Report: State of the Industry: Retail Bakeries in the U.S. (6th Edition)
Manufacturing Close-Up; April 21, 2012; 310 words
Research and Markets has announced the addition of the "State of the Industry: Retail Bakeries in the U.S. (6th Edition)" report to its offerings. In a release, Research and Markets noted that report highlights include...
Research and Markets Adds Report: Retail Bakeries Industry in the U.S. and its International Trade.(Report)
Health & Beauty Close-Up; September 22, 2009; 438 words
...Relations US, LLC's new report "Retail Bakeries Industry in the U.S. and...report highlights include: The Retail Bakeries Industry report is the most...com/research/754a41/retail_bakeries_in ((Comments on this story...
New Trends Impact Retail Bakeries in 2010.
Supermarket News; January 25, 2010; 700+ words
...publication of SN, recently looked at several trends that will impact bakery departments in 2010, and examined how retail bakeries around the United States are responding to these new trends. Below are excerpts from their report: PACKAGING Given...
Research and Markets Adds Report: State of the Industry: Retail Bakeries in the U.S.(Industry overview)
Health & Beauty Close-Up; September 30, 2009; 314 words
Research and Markets has announced the addition of the "State of the Industry: Retail Bakeries in the U.S." report to its offerings. In a release, Research and Markets noted that report highlights include: The "State...
Hinds-Bock added to its line of quality equipment with the Table Top Cake Slicer, which is ideal for wholesale and retail bakeries.(Equipment Briefs)
Snack Food & Wholesale Bakery; July 1, 2008; 258 words
...Hinds-Bock added to its line of quality equipment with the Table Top Cake Slicer, which is ideal for wholesale and retail bakeries. Although its small footprint takes up little space, the system can slice cake rounds up to half-sheet cakes...
Higher breaducation.(retail bakeries in U.S. market a wide variety of breads)(Brief Article)
The Economist (US); October 7, 1995; 605 words
...publication ca Modern Baking. America has some 25,000 retail bakeries. This year 1,600-1,700 new ones will open...started business five years ago and now has more than 50 retail bakeries, having expanded from its Missouri base to Chicago...

Search all articles about Retail Bakeries