+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

I run a bakeshop. Sales are down, costs are up, and the broken supply chain is forcing me to pivot monthly.

Feb 9, 2022, 22:34 IST
Business Insider
Justine Martin, who owns Guilty Pleasures Bakeshop.Courtesy of Justine Martin
  • Justine Martin owns Guilty Pleasures Bakeshop, a luxury bakeshop in Northern Ontario, Canada.
  • Martin told Insider owning a business keeps getting harder amid the pandemic and supply-chain crisis.
Advertisement

This as-told-to essay is based on a conversation with Justine Martin, the owner of Guilty Pleasures Bakeshop. It has been edited for length and clarity.

I own a luxury bakeshop in Northern Ontario, Canada, and navigating the COVID-19 has been extremely challenging.

I began selling my baked goods in January 2016, and by January 2017, I quit my full-time work to focus on baking. In February 2018, I opened our storefront in Downtown Sudbury.

At every turn during the pandemic, it feels like there's a new roadblock we have to surmount

Valentine's Day is no different. Typically, the only solution is to take a financial hit in order to continue to fulfill our orders to the highest possible quality standard.

Historically, Valentine's is my single busiest day, making up about 5% to 10% of my revenue for the year. We typically host a fine-dining pop-up dinner on the weekend closest to Valentine's Day, in addition to offering our baked goods through presales and walk-in purchases. The presales allow us to know our order volume ahead of time, which lets us avoid over-baking products that will spoil or are not transferable to other holidays — saving us significant time and money while reducing waste.

Advertisement

Courtesy of Guilty Pleasures Bakeshop

Our presales are down this year, and a big hit came from our orders being shipped rather than collected locally. We were anticipating a 50-50 split between the two fulfillment options, but instead, shipped orders comprise only 30% of sales.

I believe this is due to the steep rise in shipping costs. Even with my company covering $5 of shipping on each order, I'm still sitting at a cost of $20 per order for shipping to the United States.

We've greatly suffered at the hands of supply-chain interruptions since March 2020

In the first month of the pandemic, I was waiting on an important shipment of packaging worth more than $5,000. It was held up at a processing facility for over a month before it was returned to sender with no delivery attempts.

I was forced to order from an alternate, and more expensive, supplier and pay a significant upcharge for rush delivery. Once the first order was finally delivered, I was sitting on double the amount of packaging that I required, with a significant impact to my cash flow.

Justine Martin, who owns Guilty Pleasures Bakeshop.Courtesy of Justine Martin

Our local food-service supplier also stopped carrying a key ingredient that we use in all of our cakes. Now, we have to order in significantly higher bulk and drive more than eight hours round-trip every few months to collect it, costing us more than an extra 15% per box due to mileage, gas, and labor.

Advertisement

By no means do I have it the worst among pandemic business owners

Retail storefronts, bars, and restaurants are definitely among the hardest hit by the pandemic. Capacity limitations and full-blown lockdown measures challenge their ability to stay afloat, let alone cover labor and hard costs.

That said, even businesses that aren't physically affected by public-health measures have been struggling since 2020. For my business, supply-chain issues, inflation on supplies, and unpredictability of shipping standards are among the toughest struggles.

Justine Martin, who owns Guilty Pleasures Bakeshop.Courtesy of Justine Martin

Affordable packaging options that used to be a staple in my business have been sold out for over a year now, forcing me to source alternate, more expensive packaging. In some extreme cases, I have had to alter our offerings to conform to a smaller-than-usual packaging selection.

Flexibility and creative ideas are what have upheld the business during the pandemic

We've been forced to pivot on a near monthly basis to keep our offerings novel and relevant to consumers who are already over-spending on takeout and online purchases. This also comes with an increased marketing cost, as we work to launch new products at a rate far higher than we did pre-pandemic.

Ultimately, it boils down to our costs being substantially higher than pre-pandemic, paired with sales being down significantly. We're doing everything we can to succeed, but — as many people can probably relate to — it hasn't stopped getting harder for two years now.

Advertisement
You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article