How bread businesses grow on Hotplate

Cover photo by El Bread Shop

Every town could use more good bread and there are thousands of bakers building local bread businesses on Hotplate. It’s one of the easiest concepts to start and scale, and there are plenty of role models that have paved a path to success for even the most novice business owners!

In short, here’s what we’ve learned works for bread businesses:

• Short menus, sectioned into staples and specials

• Added menu items that are easy to make in bulk and add value, like granola, jams, and starter

• Consistent drop and pickup schedules

• Porch pickups, market pre-orders, and partnering with local shops for pickups

Why the Hotplate drop model works for bread businesses

Bread bakers of all sizes use Hotplate to run successful businesses - from those who make a few loaves of bread in their home ovens to teams who bake hundreds of loaves in the early mornings. Local customers generally love the opportunity to purchase a staple food from local bakers, especially when that means supporting a small business and getting a higher quality good.

The drop model is a great, low cost approach to starting a bread business. Because bread and baked goods are best sold on the same day they’re made, traditional brick and mortar bakeries tend to see a lot of food waste at the end of each day. Operating a pre-order drop based business takes out all the guesswork of inventory because you only bake what’s already been paid for. That means limited wasted time, ingredients, and money. Drop based bread businesses on Hotplate often offer one pickup day a week so they can concentrate their prep efforts while still serving a wide customer base.

How bread businesses scale with Hotplate

Because bread and sourdough goods are some of the most widely permitted foods under cottage food laws, many bakers start their bread businesses from home and use Hotplate from day 1. Many bakers also set up their Hotplate storefront and build a customer list while they’re in the testing and refining phase. This is especially useful if you’re handing out samples to friends and neighbors because you can guide them to subscribe so they’re the first to know when sales officially open. It’s always best to start building your customer list before you even post anything for sale!

Hotplate can be used to sell 1 loaf or a 1000, so many bakers will post a drop even if they only have capacity to bake a few items each time - they simply set low inventory and allow things to sell out. Over time, as a baker’s capacity or menu size increases, its easy to add more inventory and items to each drop - the Hotplate system grows with you!

How our bread businesses typically operate

Many of the bakers that use Hotplate bake out of their homes and offer weekly drops. Bread is a staple that most families buy weekly, so its easy to create repeat customers who build a habit around buying your bread.

Whether they bake in their home or a commercial kitchen, most bread businesses on Hotplate partner with local shops, have a market booth, or set up racks on their porch for customer pickups. Many of the bakers operating small bread businesses become staples of their community and are able to expand into offering workshops or catering as a way to supplement income from drops.

The typical bread dropper schedule

Because bread, especially sourdough goods, require a few prep days, many bakers open orders several days before customers will pick up. It’s most common for storefronts to have a drop that goes live mid-week, then offer pickups over the weekend.

Examples to inspire you

Sylvia sells sourdough loaves to her entire island in Hawaii

📍Kona, Hawaii 🔗 hotplate.com/sylviassourdough

Sylvia started her micro bakery business while being a stay-at-home mom. Living in Kona, there was a distinct lack of good quality bakeries and places to get bread with clean ingredients, so she decided to get her cottage license and start baking herself. She started very small, baking just the six loaves a week that would fit in her home oven. She then added on granola, muffins, and a few rotating seasonal menu items to help increase her average order value.

Her schedule:

Sylvia offers pick ups 1-2 times a week - on Tuesday and Fridays. Orders always open 4 days before pickup, and usually sell out the same day! Customers come pick up from her home in Kona which has helped create a deep sense of community in her neighborhood.

El Bread Shop engages her community with markets and classes

📍Louisville, Kentucky 🔗 hotplate.com/elbreadshop

Noel has built a dedicated fanbase for her sourdough goods made with locally grown and milled grains. She bakes out of her home in Louisville, KY and offers a selection of staple breads alongside weekly specials inspired by seasonal ingredients. Without a storefront, Noel offers 1-2 pickups a week either from her home kitchen, or at her farmer’s market booth during the warmer months. While customers can still walk up to her booth to buy her goods, customers love that they can preorder their favorite items for market pickup and skip the line entirely.

Another way Noel is able to build community and add another revenue stream is by leading workshops that teach her recipes and methods. She partners with local shops and spaces to host her classes and sells tickets through a Hotplate drop!

Thinking of starting a bread business? Your first steps

• Create a Hotplate storefront: hotplate.com/sign-up

• Set your drop schedule (when do orders open, when do you prep, and when/where are pick ups?)

• Pick a menu rotation (how often do offer new or seasonal items?)

• Understand your inventory capacity at your baking location (even if that’s just 4 loaves at home!)

With those key details figured out, you can schedule your first drop!