How to Start a Bakery Business in Australia (2025)

It’s 2025 and while most industries are already pretty saturated, the world of bakery is still a fine option to begin your entrepreneurial journey. Owning your own bakery in Australia can turn dreams into reality. Whether you love the aroma of freshly baked goods or have a knack for baking the sweetest of treats, there's a lot to consider before you start calling yourself a bakery owner.

But don't worry. We'll walk you through all the essential steps you need to take to open a successful bakery in Australia. With this comprehensive guide, you'll be baking and selling your best cakes in no time.

Steps to Open a Bakery in Australia: A Complete Checklist 

1. Prepare a Strategic Business Plan 
2. Register Your Business
3. Find a store location for your bakery
4. Get Necessary Licences for your state
5. Invest in a beautiful bakery store interior
6. Hire Bakers and Staff
7. Set up Bakery POS & Online Ordering 
8. Craft a delicious Menu
9. Set up GMB & Social Media Profiles
10. Partner Up with Food Suppliers 
11. Start Selling Your Baked Goods

Prepare a Strategic Business Plan with Financial Projections

If you're a business owner, you already know this but if you're not; Every great venture starts with a solid plan. You need to start by devising a business plan that outlines your bakery's goals, target market, pricing strategy, and financial projections. It's like a roadmap that guides you on what your next step should be and when you can start expecting results. 

Also, it is essential to include estimated costs based on detailed research of your market and competition. You wouldn’t want to start spending all of your investment in one half of the project and for the other half, nothing is left. That is why, it is a must to have a financial projection beforehand.  

Register Your Business

Once you have a solid plan to lead your back against, it’s time to register your bakery as a legal entity. Different states in Australia have their own distinctive requirements and compliances. 

Depending upon where you want to establish your bakery, choose a business name and register it for Australian Business Number (ABN). This step ensures that you're compliant with local regulations and ready to operate legally. 

Find a Store Location for Your Bakery

The next step is to find a nice location for your bakery. Make sure to look for a spot that has good foot traffic, and visibility and people can easily get inside. It is better to have a leased room on the ground or 1st floor to sell your bakeries to more customers. It can be easily spotted by new customers and is easily accessible. 

Also, make sure to check out other bakeries nearby and how they’ve chosen their location, menus, and prices. These will give you a better idea of how you should choose your location. A well-chosen location can attract more customers and increase your chances of thriving.

Get Necessary Licences for Your State in Australia

Once your bakery’s physical location is set, it is time to get the necessary licenses and permits for your store. Go to the Australian Government website and fill out the step-by-step form. 

Depending on what industry you are operating in, you might have to get business-specific permits. As a bakery comes under the food industry, you need to register for a Food Safety license, Goods and Service Tax (GST), Australian Consumer Law (ACL), etc. 

Invest in a Beautiful Bakery Store Interior

We’ve all had that one captivating experience with a restaurant or a cafe that we joyed the most. The ambience of that space, the interior design, the visible lighting choices, and the thin scent of something tasty. Remember how much of a lasting impression that made on you. Try to recreate that experience in your bakery in your own style. 

Give your customers the shopping experience of their life. Make your bakery’s interior appealing and reflect your brand. Make sure you have comfortable seating, inviting decor, and a well-organised layout.

Hire Bakers and Staff

At the heart of it all, what good is a bakery that doesn’t sell tasty baked treats? So, make sure to hire skilled bakers who are committed to your cause and can whip out tasty treats. If you’re the only baker in your bakery, that’s fine as well. Just make sure your baked goods taste great for others as well and not just for you.

Set up Bakery POS System

Now that you’ve taken care of the baking side of things, it's time to take care of the selling side of things. If you wish to make selling your cakes a breeze, investing in a bakery POS system is a no-brainer. 

A POS system designed for bakery shops not only handles transactions and inventory but also helps in optimising your business operations. You can even integrate your accounting software and manage the financial stuff right within the POS app itself. 

Sell online with a Bakery Online Ordering System

With changing perspectives and how everyone wants to shop things online, you ought to set up a bakery online ordering system as well. Make sure to invest in one that can seamlessly integrate with your POS system like POSApt does. This way you can sell online and offline while being able to get all transaction data in one single application.

Craft a Delicious Menu

Depending upon what your bakery can offer and what’s popular in your location, create a diverse menu. Feature a variety of baked goods, from classic breads to innovative pastries on your menu. Ensure a balance of flavours, sizes, and dietary options to cater to different preferences.

Set up GMB & Social Media Profiles

Bakeries mostly have local customers. The best way to let your local customers know about your bakery is through a Google My Business (GMB) profile. This enables locals to find your bakery on Google whenever they search for Bakeries. 

Also, people tend to view business reviews online before they purchase anything. So, make sure you have a healthy rating on your GMB profile and any other social media profile. Social media is also great for you to post tasty pictures and how your customers are enjoying your bakery. Social media will help you reach a wider audience and help you increase your sales. 

Start Selling Your Baked Goods

With everything in place, it's time to open your bakery's doors and start selling. Display your creations prominently, offer samples to entice customers, and provide outstanding customer service. Word-of-mouth and positive reviews will soon start building a loyal customer base.

How Much Does it Cost to Open a Bakery in Australia?

The average cost to open a bakery in Australia ranges from $200k - 400k. Depending on the location and how big of a venture you want, the cost varies. In any case, here is a table summarising how much it could cost on average to start a small-sized bakery. 

Note that these costs are just estimates and are not exact figures of how much it would cost for you. So, take these numbers with a grain of salt.

Biggest Mistakes to Avoid When Opening a Bakery

Let’s be real. Sometimes, things just don’t work out. But you can learn from the mistakes of others. So, here are the 6 mistakes to avoid when opening a bakery: 

1. Neglecting financial and business plan
2. Neglecting market research and competition
3. Not being meticulous when choosing a store location
4. Ignoring new technologies
5. Setting the wrong prices for your bakeries
6. Ignoring online marketing tactics 

Is the Bakery Business Profitable in Australia?

Yes, a bakery business is one of the most lucrative businesses in Australia. if you follow the above steps correctly. The bakery industry is expected to grow over the next 5 years and will show a growth of 1.0% in 2025. This is mainly because of the increase in the number of health-conscious people and vegetarians. 

Conclusion

By following this comprehensive guide on how to open a bakery business in Australia, we believe your entrepreneurial journey will only start getting better. Happy baking!

Bonus Content: How to Promote a Bakery

FAQs:

What do you need to open a bakery?

Here’s a list of all the things you need to open a bakery: 

1. A complete business plan & financial projections
2. A great location to open your bakery store
3. Permits and Licences based on your location
4. Baking equipment like ovens and refrigerators 
5. Trained bakers and staff
6. POS and Online Ordering Systems
7. GMB listing and social media profiles

What permits and licences are needed to start a bakery?

The permits and licences that your bakery may require can vary based on your location but here are some ones:

1. Business Licence
2. Health Permit
3. Food Handling License
4. Building Permit
5. Fire Department Permit
6. Signage Permit
7. GST, and more

How much do bakery owners make in a year?

A baker normally earns around $65,000 per annum. The bakery owners on average make anywhere between 90k to 150k a year from one shop. Based on how big the bakery is, the owner's annual income varies. 

*DISCLAIMER: This article is for general information only. POSApt does not guarantee accuracy, completeness, or specific results from following this advice. Consider consulting business professionals for tailored guidance.