Selling and marketing
Sell Baked Goods to Restaurants: 5 Steps and Margin
A step by step way to pitch a restaurant, price the order, and keep a margin after ingredients, labor, and overhead.
On this page
- Start with one restaurant and one product
- Check what your state allows before you pitch
- Build a one page cost sheet the chef can trust
- What a chef looks for in a sample
- Pitch the chef with a sample and a delivery day
- Price the order so you keep a margin
- Mistakes that cost you money
- What to do after the first yes
What to remember
- Start with one restaurant and one product.
- Price from a cost sheet, not from the chef’s budget.
- Check your state sales cap before you promise volume.
- Deliver on the same day each week.
The first restaurant order is a test for both sides. You want to know if the kitchen will reorder, and the chef wants to know if your product shows up the same every week. The steps below cover how to sell baked goods to restaurants without underpricing the first box.
Restaurants order on a schedule. A chef wants to know that the muffins arrive before service and that the count is right. If you can show that on a sample card, you are already ahead of a baker who only sends a price list.
Start with one restaurant and one product
A chef does not need a full menu from you. One muffin, one loaf, or one cookie that shows up the same every week is easier to sell and easier to cost. Pick the product you can make in a consistent batch and deliver on a fixed day.
Pick a restaurant that already sells baked goods. A cafe with a pastry case is a better first call than a steakhouse. You want a chef who already has a reason to say yes. If you want a lower pressure first account, see how to sell baked goods to coffee shops.
Check what your state allows before you pitch
In Virginia, a baker who wants to sell wholesale to stores and restaurants must use the Home Food Processing Operation path, which involves a VDACS inspection, according to Cakery Bakeries. Cottage food laws also set a yearly sales cap, and that cap is the state’s limit, according to Wiki-licious. Before you walk into a restaurant, call your state food office and ask two questions: can I sell to a restaurant under my current permit, and what is my yearly sales cap.
Ask for the rule in writing. If the person on the phone is not sure, ask for the name of the person who is. Keep a copy of the permit or inspection report in your records.
Build a one page cost sheet the chef can trust
A cost sheet is the difference between a hobby and a business. It lists ingredients, your labor, and overhead for one batch, then divides by the number of items. The chef does not need to see your profit, but you do.
Your cost sheet should fit on one page. List the batch, the count, the ingredient cost, the labor hours, the overhead, and the price you need. Leave a line for the restaurant price so you can see the margin at a glance.
For example, say a batch of 24 muffins uses $6 of ingredients, takes 1.5 hours at $15 an hour, and carries $3 of overhead for packaging and power. That is $6 plus $22.50 plus $3, or $31.50 for the batch, which is $1.31 per muffin. A restaurant order at $2.25 per muffin leaves $0.94 per muffin, or about 42 percent margin after all three costs.
What a chef looks for in a sample
A chef looks for three things: the taste, the look, and the repeat. Bring a sample that is the same size and shape you will deliver. Put your label on it with the product name and the date. If the chef asks for a second sample, bring it on the same day of the week you plan to deliver.
Pitch the chef with a sample and a delivery day
Walk in at a quiet time, not during lunch service. Bring a sample box, your cost sheet, and a simple card with your name, phone number, and delivery day. Ask for the chef or the person who orders food.
A sample is not a free order. Bring enough for a taste, not a full box. Keep the box small and the label clear. If the chef is not there, leave the sample with your card and come back on a different day.
Bring a pen and a small notebook. Write down the chef’s name, the product, the count, and the day they want it. Repeat it back before you leave so there is no confusion.
Pick one product and one restaurant
Choose the item you can make consistently and a restaurant that already sells something like it.
Make a sample box and a cost sheet
Bring enough for the chef and one other person to taste. Put your price and delivery day on the sheet.
Visit at a quiet time and ask for the chef
Go between services. Say you are a local baker and you brought a sample.
Offer a trial order on a set day
Suggest a small first order for one week. Agree on the count, the price, and the drop off time.
Confirm the reorder in writing
Send a short text or email with the count, price, and date. Ask for a yes before you bake the next batch.
Price the order so you keep a margin
A restaurant will expect a wholesale price, which is lower than what you charge a customer at a market. That is fine if your cost sheet still leaves a margin. Use the same cost sheet for every order and check it before you agree to a lower price. See how to price baked goods for wholesale for the full math.
A restaurant may ask for net 30 payment. That means you bake now and get paid in 30 days. If you cannot carry that, ask for net 7 or payment on delivery. Put the terms on the invoice.
Do not set a restaurant price from a competitor’s menu. Set it from your cost sheet. If the number is too high for the chef, change the product or the size, not the math.
Mistakes that cost you money
The first mistake is quoting a price before you cost the batch. The second is agreeing to daily delivery when you bake twice a week. The third is forgetting your state sales cap until you are already over it.
Another mistake is taking an order you cannot repeat. If the chef wants 12 dozen cookies every Friday, check your oven space and your state cap before you say yes. A small order that repeats is worth more than a big order that breaks you.
What to do after the first yes
Once a restaurant says yes, keep the order simple. Put the count, price, and delivery day in one place. Send an invoice the same day you deliver.
Keep a simple record of each order. Write down the date, the count, the price, and whether the restaurant paid. That record is how you know which account is worth keeping.
A restaurant account can grow by word of mouth. When one chef likes your product, ask if they know another chef who might want a sample. Keep the sample small and the delivery day the same.
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Common questions
Do restaurants buy from home bakers?
A restaurant can buy from a home baker if your permit allows it and the chef likes the sample. Start with one account and a trial order. Ask the chef what volume they need and whether they want weekly delivery.
Do I need a license to sell baked goods to restaurants?
It depends on your state. In Virginia, selling wholesale to restaurants requires the Home Food Processing Operation path and a VDACS inspection, according to Cakery Bakeries. Call your state food office before you pitch and ask what your current permit covers.
What should I charge a restaurant?
Charge from a cost sheet that includes ingredients, your labor, and overhead. A restaurant will expect a wholesale price below your direct to customer price. Check the margin after all three costs, not just ingredients, before you agree to the order.
How do I get paid by a restaurant?
Ask for a simple invoice with net 7 or net 14 terms. Brevl lets you take card payments through your own Stripe or Square account, plus Venmo, Cash App, Zelle, and cash. Put the payment terms on every invoice you send.
Can I sell to restaurants under cottage food rules?
Cottage food laws set a yearly sales cap, and that cap is the state's limit, according to Wiki-licious. Restaurant sales may sit outside that permit, so check your state rule before you promise a weekly order. Ask your state food office first.
Sources
General information, not legal or tax advice. Check your state food office and a tax professional before you sell to restaurants.