How to Start an Online Bakery: 6 Lessons From Kerbside Creamery

For many of us, shopping online has become even more normal than going to the store. With the rise of Amazon, Etsy, and Shopify, there are loads of places to get everything from tacos to tunics with the click of a button. And thanks to a low barrier to entry and relatively cheap startup costs, truly anyone can start an online store.

But starting an online bakery? Don't you have to be the winner of The Great British Bake Off to do something like that? Nope. As long as you've got passion, a plan, and a knack in the kitchen, you've got all the ingredients you need.

Whether you're a professional hoping to move a brick-and-mortar store online or a home baker looking for a side income, in this article we'll give you the recipe to plan, start and grow a successful online bakery.

Our online bakery experts

(Image Source: Kerbside Creamery)

Kerbside Creamery launched during Sydney's first COVID-19 lockdown in 2020. Unable to leave the house, and figuring their local community could use some treats to brighten their spirits, siblings and co-founders Jonathan and Gabrielle decided to start selling delicious baked treats to their neighbours.

To say the response was overwhelming would be an understatement. Within a year, the pair were able to buy an adorable pink food truck and launch a fully-functional online bakery delivering their uniquely decadent cheesecakes across the entire city. Now with hundreds of orders a week, they've come a long way from handing out cakes from their Cecil Hills home.

Having started their bakery business from home and grown it to something of a city-wide phenomenon, Kerbside Creamery's success is an example of what can be done with a great idea, a well thought out web presence and a whole lot of hard work.

How to start an online bakery: lessons from Kerbside Creamery

Starting your own online bakery business is much more difficult than, say, selling digital products or reselling stuff on eBay. Why? Because you need to know your way around the kitchen. Being able to bake something delicious is a prerequisite before you can even consider trying to make a business out of it.

But the good news is once you're ready to get started you can do so on a small budget. Sure, as Jonathan and Gabrielle found, there will be plenty of "super early mornings and super late nights" but you can get through it if you're dedicated.

1. Define what type of bakery you want

For every new business, the first step is to narrow down your niche. Think about your favourite restaurant and why it stands out. Who are their customers? What kind of food do they sell? What are they known for?

Ask yourself how your business will answer the same questions. Jonathan believes it isn't important to seek out a specific niche as it will most likely be obvious based on your existing expertise.

"I had the idea for cheesecake on a stick a long, long time ago, but didn't decide to do anything with it until I found myself unemployed in Sydney's first lockdown. It was a natural progression when we thought about starting our business, and I think that's where the best ideas come from.
— Jonathan Israfil

Your business can be based around one specific baked good like Kerbside Creamery (cheesecake) or cover a range of baked treats, from cookies to creme brûlée. Just try to leverage demand in your area before diving in. For example, if there's another cookie shop in your area, ask yourself what you can offer that they don't.

Kerbside Creamery did a great job of defining their niche, being Sydney's first ever cheesecake on a stick store. From humble beginnings, they're now known as one of the places to go for cheesecake.

Already got a bakery? Think about how your business can adapt its product line for the online world. For example, part of Kerbside Creamery's growth can be attributed to how their items look. Their bright colours and sweet toppings invite people to post  shots on social media. Make sure your treats look as good as they taste.

2. Iron out the logistics early on

Another key consideration is how your baked goods are getting to your customers. Do you have the right baking equipment? How long does the baking process take? What will your work hours be?

If you’re starting in your home kitchen, it might be hard to fulfill more than a couple orders every day and still maintain quality freshness. Baking can be precarious, and the shelf life of foods is not to be ignored. Don't try to overplay your hand.

"Know your product. How does it travel? How should it be consumed? When you're organising deliveries you need to make sure it reaches your customer in the same condition it would if they purchased it in store."
—Jonathan Israfil

Start planning which days to shop for which ingredients, and see if you can buy products in bulk as demand increases. Since you are producing perishable goods, you’ll need to work out where to store your finished items and adapt your schedule to the rises and falls in sales levels.

It’s important to mention that some supplies won’t be readily available due to low stock levels across many supermarkets. Keep a list of these low-supply ingredients and which of your goods will be affected. You might consider using frozen rather than fresh fruits and vegetables.

"We went from preparing orders for customers over a five hour window, four days a week to all of a sudden needing orders to completed instantly seven days a week. It's tricky to get systems in place so quickly, so try to do it as you go."
—Jonathan Israfil

If you’re just starting out, some of the equipment you may need includes mixers, convections ovens, lots of storage units and a large workspace. You may want to invest in more commercial equipment for large-scale production, though often it's best to start conservative and only make additions as necessary.

3. Get your online system up and running

Once you've done the planning, it's time to build your online presence. Start with a website or order form. Jonathan believes your website shouldn't be too fancy—all it needs is enticing pictures of your items and a simple way for customers to order.

"Simplify the online experience for your customer as much as possible. When it comes to setting up a site, less is more. I really can't reiterate that enough.  Keep things simple and approachable. Buying should be effortless. "
— Jonathan Israfil

Customers need three things from your website: to be able to browse your menu, see your prices, and make orders. For business owners, you need to make sure your web platform accepts payments and allows you to quickly manage orders and inventory.

Paperform can handle all of those processes swiftly and easily, all from our intuitive doc-style editor. You can run your entire site using Paperform, or you could create helpful additions like order forms or payment forms. Either way, you can be sure that all of your Paperform creations will be brand specific, feature-rich, and easy to use for both you and your customer.

Unlike other web design tools and form builders out there, Paperform has the best of both worlds: advanced functionality and beautiful designs. We have over 650+ to choose from, all of which are fully customizable. We give you the tools, you let your imagination run wild.

Want to create a payment form that automatically adds tax, coupons, and generate receipts? We've support all the major payment pathways, including Paypal, Stripe, and Braintree. Want to integrate with your CRM and email marketing tools to automate some of your more tedious marketing processes? We've got over 3,000 supported integrations to choose from.

4. Register your online bakery business

Before you launch your business you need to officially register your baking business. This isn't the most exciting part of the process, but think of it as an official stamp on your new venture. It's a way for you to make things official.

The specifics about how this works depend on your country and local government. In Australia, for example, you'll just have to register your ABN, whereas in the US there are additional costs and processes to go through to certify your ability to produce and distribute baked goods.

Broadly, this is about making sure you cover your legal bases. Is your business name registered? Are you allowed to operate a business from your home? Are you certified for the safe production of food? Depending where you live there can be more hoops to jump through than you may have initially considered.

5. Build your bakery's unique brand

Now it's time to focus on getting the word out about your bakery. While there are loads of way to market your business, many believe that word-of-mouth is the most important marketing channel to build a loyal customer base.

Word-of-mouth has been crucial for the team at Kerbside Creamery. Their business began from in front of their house, and grew organically through two main avenues:

• actual word of mouth (neighbours spreading the word with friends and family)
• digital word of mouth (pictures of their cakes shared across social media)

From early on Kerbside Creamery knew their brand. They bake bright, decadent and crazy cheesecakes for people to share with family and friends. They're all about sweet flavour combinations and wacky toppings, from Oreos to Krispy Kreme donuts and their bestselling Biscoff vanilla cheesecake.

Every business begins with a value proposition. What is the core value that you bring to your customers? In other words, what are you promising that customers will come specifically to you for?

Kerbside Creamery has done a great job at understanding their brand, and delivering on it. At Kerbside Creamery you won't find any delicate patisserie or refined sourdough loafs.

You, too, can build your brand in this way. Find what makes you special, and stick to it in order to stand out from other online bakeries.

It could be that your products are highly customisable, offering a fun, personalised experience. Or it could be that you bring nostalgia onto a plate through your family recipes that are reminiscent of home and childhood. Leverage the experiences that you bring to your customers and your sales will naturally follow.

Think about how your bakery satisfies an underlying need. Nike doesn’t make shoes, it gives athletes the ability to perform. Your bakery might sell home-baked cookies, but it also gives families something delicious to enjoy together.

6. Use the power of online advertising

Expanding your online presence can drive greater web traffic, engagement and ultimately, lead to more customers.

"Don't be afraid to advertise. The online world is much bigger than the physical one, and you'll be able to draw customers you just wouldn't find otherwise. Advertising doesn't have to be complicated,  just think of it as helping customers find you."
— Jonathan Israfil

Digital marketing is crucial for small businesses. You can get caught up figuring out what channels to focus on—from SEO to Google ads, but the right marketing strategy is a bit like the right exercise programme: the best one is the one you can stick to for the long run.

With that in mind, social media marketing can be one of the most effective channels for online bakeries. It gives you an avenue to directly interact with customers, while showcasing all your delicious products to a massive audience.

This is a strategy Kerbside Creamery has perfected. Their Instagram page is a lead magnet. They grow their customer base by sharing simple, eye-catching pictures of their mouth watering treats, running giveaways and highlighting customer orders.

With more than 40,000 followers on Instagram, Kerbside Creamery have used the platform as a tool to help build a community around their products. When it comes to making your baked treats Instaworthy, Jonathan takes a less-is-more approach.

"Don't overly filter or edit your photos. Our products are naturally bright and vibrant, and we use colours that contrast one another and make things pop. Try to draw inspiration from things you like to look at yourself, then replicate it with your own unique spin."
—Jonathan Israfil

Remember, being a fantastic baker doesn't automatically guarantee success. Every small business owner also has to be a marketer. Whether it's buying social ads, co-marketing with other local businesses or handing out business cards in the community, you should always be looking for ways to get your name out there.

Tips for moving an existing bakery online

Existing businesses going virtual will face different challenges than 100% online bakeries. First, you'll have to get the word out to your existing clientele about your new online platform. Get out the contact book (or email list) to inform your existing customers of your new store.

Many brick-and-mortar businesses transitioning online find success by offering products in a set, rather than individually (e.g. a pack of 12 cakes, rather than an option to buy individually). This makes it easy to buy great gifts for family and friends online, especially if they can be delivered to the customer.

Consider setting up a newsletter, too. A newsletter sent fortnightly is a fantastic way to update subscribers on your latest news and menu changes. Ask customers to opt in to your newsletter during the purchase process, and entice them into signing up by offering exclusive discount codes and coupons.

Remember that when moving your bakery online, it's important to design a site that's easy to use. You don't want to disappoint your existing customers with a tricky, convoluted website, when they're used to being able to waltz up and grab a cupcake with ease.

Rather than getting bogged down in web design, concentrate on building an easy to use ecommerce page that displays products, takes payments, and helps you manage your inventory. Bells and whistles (if you want them) can come later.

Ready, set, bake!

Ready to put this recipe to the test? While the journey to baking stardom is different for everyone, you'll put your business in good stead by planning carefully, connecting with your customers, and understanding what niche need your baked treats fill.

Paperform is a powerful digital suite of tools you can use to create your online bakery. From managing inventory, to accepting payments with automatic tax and receipt generation, Paperform gives you all the advanced functionality you need to keep your business running smoothly, and the design features to make it look gorgeous while it does.

Give it a shot yourself with our 14-free trial, and start building your online bakery today.