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Beyond the Recipe: Why Profit Literacy Is the Missing Skill in Baking Education

By Business of Baking Blog posted 17 hours ago

  

Most bakers are taught how to perfect a product—but very few are taught how to protect the business behind it.

It’s a gap Chad Ecklof knows well. As the third-generation owner of Ecklof Bakery, Chad grew up immersed in craft, consistency, and tradition. What became clear over time, however, was that craftsmanship alone isn’t what determines whether a bakery survives.

“Most bakeries don’t fail because the product isn’t good,” Chad explains. “They fail because the numbers were never clear.”

The Problem Isn’t Passion—It’s Visibility

Across the industry, bakery owners are navigating rising ingredient costs, labor pressures, and customer price sensitivity—all while working full-time on the bench. In that environment, pricing decisions often become reactive instead of strategic.

Many bakeries rely on a patchwork of spreadsheets, handwritten notes, or outdated systems to track costs. Ingredient prices change quietly. Packaging expenses creep in unnoticed. Margins shrink slowly—until suddenly, the business feels harder to sustain despite steady sales.

This isn’t a work ethic issue. It’s a systems issue.

Understanding the Ripple Effect

One of the most overlooked realities in bakery operations is how a single upstream change affects everything downstream.

A 10% increase in flour doesn’t just affect one recipe—it recalculates the cost of every product that flour touches. Without a system that makes that relationship visible, bakers are left guessing.

That’s where Chad’s perspective is especially relevant. Having stepped into ownership after years working as a production baker, he experienced firsthand how difficult it is to see profitability when you’re buried in day-to-day operations.

“When you finally see how ingredient costs flow through formulas and into pricing, something clicks,” he says. “You stop guessing—and you start managing.”

Teaching Bakers to Think Like Business Owners

Out of that realization came The Baker’s Bench, a platform Chad originally built for his own bakery. The goal wasn’t automation for automation’s sake—it was clarity.

The system connects ingredient costs, formulas, packaging, and pricing into a single, understandable picture. Bakers can see the true cost per unit, evaluate margins across their menu, and adjust pricing with intention instead of fear.

More importantly, it shifts how bakers think.

Instead of asking, “What do other bakeries charge?”
The question becomes, “What does this product need to earn to support the business?”

That shift—from external comparison to internal understanding—is foundational to long-term sustainability.

Why This Matters for the Future of Baking

For organizations like Retail Bakers of America, profit literacy isn’t about turning bakers into accountants. It’s about ensuring the craft has a future.

Students can graduate knowing how to bake a flawless croissant—but if they don’t understand its true cost, they’re entering the industry at a disadvantage. Bakery owners can work harder than ever—but without visibility into margins, effort alone won’t protect the business.

Education that integrates craft and commerce equips bakers to make better decisions earlier—before survival mode sets in.

A Business of Baking Mindset

The most resilient bakeries aren’t the ones chasing trends or cutting corners. They’re the ones with clear systems, informed pricing, and leaders who understand both the bench and the balance sheet.

As Chad puts it, “When you have the numbers to back up your decisions, you don’t have to apologize for them.”

That mindset—grounded in clarity, discipline, and stewardship—is exactly what the Business of Baking is about.

Because great baking deserves businesses that last.

Exclusive RBA Member Benefit: Baker’s Bench Access

RBA members receive special access to The Baker’s Bench, a bakery-focused pricing and profitability tool created by fourth-generation baker Chad Ecklof.

When you sign up for Baker’s Bench, you’ll be asked during onboarding if you’re a Retail Bakers of America member. During your 14-day trial, RBA memberships are verified internally. Once confirmed, you’ll receive a unique code directly from the Baker’s Bench team to apply when upgrading to a paid account.

No public code required—just sign up, complete onboarding, and they will take care of the rest.

Educator Resource: Baker’s Bench in the Classroom

Designed with educators in mind, Baker’s Bench in the Classroom introduces students to the business side of baking—bridging the gap between recipe execution and real-world bakery operations.

This resource helps culinary and baking educators:
• Teach students how ingredient costs impact pricing and profitability
• Connect production decisions to financial outcomes
• Build early profit literacy alongside technical baking skills
• Prepare students for real bakery environments—not just classroom scenarios

Whether you’re teaching middle school, high school, or post-secondary students, this resource supports hands-on learning that reflects how bakeries actually operate today.

📄 Download the Baker’s Bench in the Classroom PDF to explore curriculum integration ideas and classroom use cases.

By: Kimberly I Houston