The nation's bakery industry has enjoyed consistent growth over the five years to 2013-14 and it is expected to continue to do so over the next five, as businesses add healthier and more gourmet products to their range.

In IBISWorld’s Bread and Cake Retailing in Australia report, the research company estimates the industry's revenue growth to be 3.3 percent over the five years to 2013-14, meanwhile the five years to 2018-19 will see revenue increase by an annualised 2.3 percent to arrive at $6.8 billion.

The growth can be in part attributed to the industry’s responsiveness to customers’ growing demand for healthier and more gourmet, or artisan (such as brioche, sourdough, ciabatta) bakery items.

IBISWorld’s Artisanal Bakery Product Manufacturing in Australia industry report uncovered artisan bread accounts for around 13 percent of industry revenue, meanwhile wholemeal and seeded breads are responsible for 20 percent.

The report reads: “Rising health consciousness has driven demand for wholemeal and seeded breads at the expense of the traditional white loaf.

“Bakers have also developed bread and baked products with added nutrients, minerals and fibre, as well as gluten-free products. These trends are forecast to continue in 2013-14 as health consciousness increases."

The research company predicts both healthier and artisan bakery products will remain popular beyond 2013-14, with industry revenue expected to will rise at a compound annual rate of 2.2 percent over the five years through 2018-19 to arrive at $4.2 billion.

Rising incomes are also expected to contribute to the industry’s overall growth over the next five years.

“Higher disposable income enables consumers to purchase a broader selection of goods. Real household disposable income is expected to increase over 2013-14, enabling consumers to afford higher priced products. This is a potential opportunity for the industry to boost its overall sales,” the Bread and Cake Retailing in Australia report states.

FERGUSON PLARRE BAKEHOUSES

In staying true to its Australian heritage, the product range at family-run bakery business Ferguson Plarre Bakehouses comprises locally grown produce.

“Ferguson Plarre products are made from all Australian, premium quality ingredients using time-tested recipes,” says CEO Steve Plarre.

“We use real eggs in our custard tarts, not powder, fresh cream, not mock and free-range eggs. Our savouries feature hormone free beef and free range chicken. Our pies are proudly made with 100 percent Victorian Beef.”

Ferguson Plarre produces its entire range at a purpose built bakehouse in Keilor Park, Melbourne, which eliminates the stress of on-site baking for franchisees.

“It allows us to keep a keen eye on the quality standards of our products as well as focus on the research and development of new products.

“For franchisees this means no baking is required… which allows them to focus on delivering excellence in customer service,” Plarre says.

In addition, Ferguson Plarre franchisees have a competitive advantage in that the brand’s bakers operate in line with current trends.

“We have a constant focus on new product development to stay up to date with the latest food trends, including licensed properties like Dora the Explorer and Thomas The Tank Engine for our celebration cake range.”

When franchisees enter the Ferguson Plarre network they will undergo a three week training program.

“It covers everything our franchisee’s need to empower them to drive the success of their store, including staffing, customer service, sales, product training, food safety and barista training,” says Plarre.

“Each store is assigned a coach who assists the franchisee in getting the most out of their store,” he adds.

By virtue of Ferguson Plarre’s centralised bakehouse operation, franchisees do not need prior baking experience.

“We look for prospects who are aligned with our culture. It is important that our franchisees are a culture fit, passionate, happy go-getters who are customer focused and hard working,” he says.

Plarre says the brand is looking to open another 20 or more new stores in 2014. “Our bakehouse is running at 50 percent capacity which means we have a lot of room to scale up our production."

BRUMBY'S

In recent months Retail Food Group (RFG) brand Brumby’s has introduced a brand new store concept and expanded its product range to include much more than just fresh bread and baked goods – a project that was years in the making.

The Evolution store includes an extensive range of new gourmet bakery and cafe-style products, as well as coffee.

“The store [offers]… a three tiered bread menu of Get Active (health and wellbeing), Preservative Free (everyday essentials) and Artisan (specialty) loaves,” explains Brumby’s managing director, Kevin Waite.

“New pie and sausage flavours include wagyu beef and beer, peri peri chicken and pork and fennel. Topped focaccias and gourmet sandwiches have been added to the menu along with muesli slices, family tarts and an indulgent sweets range.”

The store is also complete with a brand new look, says Waite. “[It has] a new logo, colour palette, packaging, products, digital menu boards, uniforms and an inviting new walk in layout.”

There is currently one Evolution store operating in Underwood, Queensland, and Brumby’s plans to continue to roll out the new model.

“With one store now open and several more underway, we are at the beginning of the next era for our brand,” Waite says.

“We have multiple sites available for our Evolution stores nationwide, and are looking at a period of expansion over the next 12 months.”

While Brumby’s stores employ qualified bakers, franchisees themselves don’t need to have prior baking or retail experience.

“We mainly look for people who fit the personality of a Brumby’s franchisee – motivated and passionate about food with a drive to succeed,” Waite explains.

Brumby’s franchisees can expect initial and ongoing training that covers not only baking techniques and theory, but the skills required to run a successful business.

“At RFG’s state of the art training academy new franchisees gain expertise across a range of areas such as marketing, procurement, finance and training, including courses in practical and theoretical baking, business management and customer service.

“Throughout the life of the business our franchisees have access to advanced business training courses and Brumby’s annual Baking Innovation Workshops that see us continually up skill franchisees and their teams,” he adds.