bakingbuyer - March 2011 - (Page 50)

The economy and rising commodity prices are affecting the way retail bakeries do business. by John Unrein In uncertain economic times like these, it’s tough enough that Kretchmar’s Bakery stands alone as the last remaining full-line retail bakery in Beaver County, PA (population 181,412), a blue-collar county that suffered the largest population drop in the state since the last census. Yet with commodity prices rising again this year, the challenge to stay above water becomes all the more pressing for this family-owned bakery that celebrated its 50th anniversary in 2010. Owner Hank Kretchmar has seen tough times come and go. This ranks among the worst. Still, his family’s bakery perseveres and, thanks to several bold initiatives, customer counts are climbing again and profits are slowly but surely creeping upward. “We used to look at our materials’ costs every quarter, but now we look at them every month and continually monitor our pricing,” Kretchmar says. “We’ve also started to use more media and advertising to expand our business. The days of just opening our door for business are over.” An A-frame sign made of oak now stands outside the front door of Kretchmar’s Bakery, advertising weekly specials like $5 off Misty Mint Tortes – “available while supplies last.” Reflecting a sign of the times, the same weekly special is promoted on a very different medium (online) to several thousand Kretchmar’s fans on Facebook. To survive and prosper, today’s retail baker must be more aggressive and use any means necessary to get the word out. And on a broader scale, Kretchmar’s Bakery taps into the cumulative resources of a growing group of retail bakeries that belong to the Resourceful Purchasers In Action (RPIA), which was formed a decade Retailers like Porto’s see strong growth ahead based on high customer counts. 50 · BAKING BUYER · MARCH 11 ago just two days after the Sept. 11 disaster. The RPIA membership list includes 79 of the largest retail bakeries in the country, spanning from coast to coast. The RPIA started primarily as a tool for high-volume retail bakeries to capitalize on their concentrated buying power to negotiate deals for commodities. Today, the RPIA is involved in much more, including business insurance, freight brokerage and even a new coffee program. Because RIBA members each have their own experience and expertise, RPIA shares intellectual property as well. Before investing too deeply in new approaches, members can share what works and what doesn’t. “We’re primarily interested in networking,” Kretchmar says of what they rely on most from the RPIA. “What is very valuable is the fact that RPIA members are probably the leading retail bakeries in the country. If you have a problem, somebody can point you in the right direction.” RPIA members have found and shared information on better rates for workers’ comp insurance, as well

Table of Contents for the Digital Edition of bakingbuyer - March 2011

bakingbuyer - March 2011
EDITOR’S NOTE - Reacting to the Economy
CONTENTS
CONTENTS
INDUSTRY NEWS
RBA to Relocate Headquarters
Caravan Names Director, Food Ingredient Sales
Bread Bakers Guild Adds to Board
Hobart Launches “Get Back to Scratch”
Gonnella Baking Promotes Dan Herzog
Danisco Takes Food Protection Gluten-free
IDDBA Speakers for 2011 Show
Expert Baker Joins New French Bakery
Green Baking
Bakery Toolkit
The Power of Promotions
CONTENTS
Inside and Out
Turn Impulse into Volume
Promote Personal Connections
Package, Protect, Promote
Loyalty Rewards
Shopper Spotlight
A Hot Concept
What’s Baking in Semifreddi’s Ovens
Team USA Profile
USA WINS SIGEP BREAD CUP
The Final Results of the Sigep Bread Cup 2011
A Guide to GRADUATION Cake Licensing
Your Options
Related Defi nitions
Here Comes the Groom's Cake
Personal Touch
Pillow Talk
Social Circles
How to Mold Filled Chocolate Candies
Alternative Method for Larger Jobs
Signature Sandwich Breads
Graduates Take th e Cake
Uncertain Times
Bake Your Own Signature
More Cake, Please
Word of Mouth
Creative Inspirations
THUMBS UP FOR GOURMET COFFEE
SANITATION Takes Center Stage
Production Schedule
FEATURED PRODUCTS
PRODUCT SHOWCASE
MARKETPLACE NETWORK
AD INDEX
BAKER’S DOZEN
BakeMark's Panaderia
CARTA DE INTRODUCCIÓN - Fusión Cubana
INTRODUCTORY LETTER - Cuban Fusion
Panes Dulces
Pasteles de Graduación
La Demanda Crece Por Platillos Étnicos y Opciones de Mejor Valor
Fusión Cubana
Porto’s Bakery & Café
Tropicana Bakery & Cuban Café
Reyna’s Bakery
Panadería La Mexicana
La Estrella Bakery
El Fogón
NUEVOS PRODUCTOS DE TRIGAL DORADO
CALENDARIO DE DÍAS FESTIVOS
FÓRMULAS
Sweet Breads
Wheat is on the Rise
Graduation Cakes
The Busy Graduation Season
Plan Ahead!
Demand Rising for Ethnic Fare and Value Options
Cuban Fusion
Porto’s Bakery & Café
Tropicana Bakery & Cuban Café
Reyna’s Bakery
Panadería La Mexicana
La Estrella Bakery
El Fogón
CALENDAR
NEW PRODUCTS FROM TRIGAL DORADO
FORMULAS

bakingbuyer - March 2011