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A. STUDY OF THE iN-‘MORE
FINISHING .OF FROZEN BAKERY

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1962

 

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FROZEN GOLD:
A STUDY OF THE IN-STORE
FINISHING OF FROZEN BAKERY

9y

Neal T. Jansen

A THESIS

Submitted to the College of Business and
Public Service of Michigan State University
in partial fulfillment of the
requirements for the degree of

MASTER OF BUSINESS ADMINISTRATION

Department of Marketing and Transportation Administration
Curriculum in Food Distribution

i962

PREFACE

The purpose of this thesis is to examine the in-store
finishing of frozen bakery products, in order to come to
some definite conclusion as to the feasibility of installing
such a program in supermarkets. This involves a comparison
with the complete in-store bakery and with commercial bakery
to determine if thebake-off of frozen products is a superior
method of merchandising bakery foods.

The subject of frozen bake-offs has been described in
numerous articles to date; however, these articles have been
very limited in size and scape. No one has published an ex-
tensive examination of the subject. Among the many people
from the baking industry who have aided me in obtaining
information on the subject, I am particularly indebted to
Kingston L. Howard, James w. Pence, Mr. H. L. Hoffman, and
Mr. Graybon Young.

Coordination of the baking industry to the needs of
the modern supermarket was aided greatly by the assistance
of Mr. S. A. Jansen and Mr. Clarence E. Denham.

I wish to make acknowledgment to the faculty of the
Department of Mass Marketing Management, and in particular
to Dr. Daniel M. Slate and Dr. Edward M. Barnet, for their

kind assistance in the preparation of this thesis.

ii

PREFACE . . . . .

Chapter

I. INTRODUCTION .

II. BAKERX RELATION TO SUPERMARKETS

III.

IV. THE FEASIBILITY OF FREEZING

V. CENTRAL PLANT OPERATIONS

VI. IN-STORE OPERATIONS

VII.

VIII.

IX. CONCLUSION

APPENDIX I . . . .

APPENDIX II . . .

BIBLIOGRAPHY . . .

111

TABLE OF CONTENTS

IN-STORE COSTS AND COST COMPARISONS

MERCHANDISING THE BAKE-OFF PROGRAM

THE NEW DIMENSION IN SUPERMARKET BAKERIES

16

22

33

43

51

63

7O

76

83

88

CHAPTER I

INTRODUCTION

Profit Sgueeze

The food retailing industry has historically been
keenly competitive and, in recent years, food retailers have
been beset by increasing pressures from the "profit squeeze.”
A slowdown in profit gains has resulted from higher Operating
costs and lower retail prices. Overall operational costs
have increased greatly in such areas as advertising, equip-
ment, rent, and particularly in the expenditures for labor.
At the same time, keener competition has resulted in a
general lowering of profit margins. The discount method of
selling is Just one example of the rise of price competition
through volume.

The "profit squeeze" has forced retailers to take a
long look at departments that previously were either for-
gotten or taken for granted.1 Grocers are interested in
departments that will give extra service, increase volume
and store traffic, and at the same time bring larger profits.
As a result, many supermarkets now have delicatessens, candy

shOps, and soft goods lines.

1Robert Coburn, "Super Market Bakery Department Can
Boost Bagging Profit Margin," Yankee Grocer, April 10, 1954,
p. 27.

Price competition is met by obtaining higher earnings
through increased volume. The goal is greater store traffic
through better one-stop shOpping. At the same time, the
store has the opportunity to build prestige and a quality

image through a new source of profit-impulse goods.

 

Renewed Interest in Bakery Department

The bakery department is receiving much attention
from store owners. Innovations include in-store baking and
rearrangement of the commercial baked goods section so that
more traffic passes the section.2 Super Valu Stores, Inc.
of Hopkins, Minnesota, had only one store with a bakery in
1950. By 1959 the number had increased to 51, with 38 of
them added since 1957. Ten more were installed in 1960 and
Super Valu Stores plans to increase in-store baking by 50
per cent in 1961.3 Many stores have visible ovens and
there are even scent-machines to simulate the aroma of

fresh bakery.4

The reason that the bakery department is receiving
much of the new "profit squeeze" attention is that it is a
high profit item and a great traffic builder. The Dillon
Study revealed the following important facts about the

bakery department:

 

2Coburn, Yankee Grocer, p. 27.

3Bruce E. Chapman, ”A Comprehensive Study of On-
Premise Bakery Operations in Super Markets" (unpublished
Master's thesis, School of Business and Public Service,
Michigan State University, 1961), p. 137.

4Coburn, Yankee Grocer, p. 27.

 

Almost all bakery items are bought on impulse ex-
cept white bread and sandwich bread. Baked foods do
31.47% more unit sales than the highest grocery
mover--candy. The bakery department also topped the
dollar sales of the grocery departments highest
(cigarettes-tobacco) by 27.87%.

The dollar gross profit (5.7% of store total) is
49% more than the grocery's tOp section--health and
beauty aids. The bakery dollar margin per shelf
foot per week is exceeded only by soft drinks-beer.
The annual turnover is 185 times while produce is
next with 79 and the overall grocery average is 16.5
turns.

An extremely important finding is that baked

foods ranks first in annual return per dollar in-
veeted--38.97% higher than produce, 1000% higher
than the all-grocery avergge and 503.7% higher than
the overall store figure.

The fact that a good bakery is a great traffic
builder is recognized by all in the grocery retail business.
Just one example of the importance placed upon bakery by
Mrs. Consumer is shown in a "tape recording" survey used by
Applebaum's Food Markets of the Minneapolis-St. Paul area.
Applebaum's taped discussions of seven housewives on their
grocery likes and dislikes. One housewife remarked: "That
brand X market has the best bakery. Their baked goods Just
plain taste better--they have that homemade flavor I like
so much." The panel complained of the store's poor check-
out service, bagging, and lack of cleanliness, yet one
woman shapped there all the time and several women shopped
there often. The panel indicated that the bakery section

was the store's chief drawing card. There were many similar

5"Baked Foods: Super Market Profit Sleeper7,"
Progressive Grocer, XXXX (May, 1961), p. 55.

comments and, as a result, Applebaum's decided once and for

all to put on-premise bakeries in their stores.6
Problem

How can the supermarket bakery department take full
advantage of the profit possibilities?

The two major systems in use at the present time are:
(1) the complete in-store bakery and (2) the commercial
bakery section which uses baked goods prepared at a whole-

sale level.

;g:Store Bakery

Experience has shown that in most instances a depart-
ment offering freshly-baked goods does an outstanding job of
attracting customers and building sales. However, even the
most aggressive stores would have to think twice about the
large investment in space and money required by conventional
in-store bakeries. Even where store location is judged
suitable, the risk is mostly against the Operation because
of high operating costs and profit-consuming leftovers.

A great deterent to in-store bakeries is the large
amount of labor difficulties which seem to be present in
these Operations. Besides the fact that the labor costs
are very high, it is also extremely difficult to find

personnel who possess the bakery skill and managerial

6"DO It Yourself Research," Progressive Grocer, XXXX
(November, 1961), p. 50. ~

abilities necessary to maintain both the quality and profit

margin required.7

Commercial Bakery

At the same time, commercial bakery sections have
many disadvantages. It is no exaggeration to say that few
supermarkets have succeeded in setting up a commercial baked
goods department that competes in quality or aesthetic
appeal with a good independent bakery store.8

The reason supermarkets sell a sizeable amount of
baked goods, other than bread, is due to the convenience of
one-stOp shopping and a captive purchaser. Alone, the com-
mercial bakery department would die quickly.9

The bakery products often lack freshness. Because
they are baked far in advance, preservatives must be added.
The baked goods must often be shipped many miles to the
store. An Old pie just does not taste as good as one that
has just been taken out of the oven. The completeness of
selection is not available and adaption to the needs of a
particular consumer area is much more difficult. Even more
important than these is the fact that the store having a
commercial bakery is unable to take advantage of the magnetic
appeal a fresh bakery provides with its "hungry" aroma
drifting through the store. A

7"Baked Foods: Super Market Profit Sleeper7o" P- 54-

8"Like Mother Used To Bake," Quick Frozen Foods, XXIII
(December, 1960), p. 72.

9"Like Mother Used To Bake," p. 72.

Objectives

A new approach is needed to utilize the full value of
the bakery department--one that will combine the advantages
Of both fresh and commercial bakery and at the same time
eliminate the major drawbacks Of each.

A recent development in the bakery field has been the
introduction of baking pre-frozen products. The idea itself
is not new. For a number of years housewives have frozen
dough products and then baked them right before eating. The
first commercial bakery appeared on the market as early as
1945 in the form of frozen fruit pies.1O At the present
time, not only pies, but a large number of all bakery pro-
ducts can be frozen in the raw state and then baked at a
later time.

This approach may be the answer to the bakery problem.
In other words, grocery stores may be able to bake-Off
frozen, raw bakery products which have been previously mixed
and shaped at some other location. Frozen bakery may be
more profitable and of greater value to the store than the

conventional bakery systems.

Null Hypothesis

Supermarkets can profitably bake-Off frozen bakery

products in the store. The in-store finishing of frozen

1oWillis A. Gortner, Frederick S. Erdman, and Nancy
K. Masterman, Princi les of Food Freezin (New York: John
Wiley and Sons, Inc., 1950 , p. 1 .

7

bakery is the answer to the bakery problem.

The first part of the paper explains just how the
frozen bakery system Operates. It shows the feasibility of
the Operation and the extent to which it is possible. Next,
its advantages and limitations are compared with those of
both a complete in-store bakery and a commercial type bakery.
A breakdown of costs is given in this comparison. The third
major part of the paper sets up a model of the system, ad-

vances possible policies, and suggests methods for Operation.
ata

The data given to support the conclusions of the paper
have been taken from well-known trade publications and are the
most current available at this time. Of course, when per-
centages or costs are quoted, it must be realized that these
are relative to particular stores and times, and must be
adapted to each particular situation. They do, however,

give as close a general answer as is possible.
Methods

Much of the information has been taken from recent
trade publications, but because of the newness of the subject
and a lack of statistical results on how it Operates, com-
petent bakers were consulted to obtain their ideas and Opinions.
Likewise, men in managerial positions were questioned regard-

ing costs, transition problems, and potential values.

CHAPTER II

BAKERY RELATION TO SUPERMARKETS

Retailing Revolution

The retailing revolution taking place today is an
acceleration of a trend toward merchandise overlapping among
retailers which actually began prior to World War II. In
the late 'BOs, grocery stores began expanding into super-
markets and the old apothecary shop turned into a so-called
drugstore, both carrying merchandise traditionally sold by
other retailers.1

Following the war, one-stop shOpping arrived with
food as the drawing card. Supermarkets offered variety,
service, and parking in conjunction with reduced prices. The
meat market and the neighborhood bakery began to succumb to

the loss of trade and were absorbed into the supermarkets.

Supermarkets Increase Bakeries

If the current interest shown by retailers is any
indication, this trend will continue and the number of com-

plete bakeries will increase. Over two out of five

 

1Sylvia Porter, "Retailing Revolution Analyzed by
Expert," Green Bay Press-Gazette, September 28, 1961, p. 30.

8

supermarkets (41%) now have "complete" bakeries. On-premise
baking is done in 16 per cent of the supermarkets.2
Some forecasters predict that by 1965, 90 per cent of
all bakery products will be sold in supermarkets. This may
be over-Optimistic, but there is no doubt that the bulk of

the bakery goods will be sold in the supermarket.3

Lag of Bakery Induspgy

Baked foods have a significant story to tell, but
bakers have had a hard time getting food retailers to listen.
Bread is the cornerstone of every family meal. A store's
bread customers are regular, frequent customers and usually
buy more products per shopping visit than non-bread shOppers.4

Yet, the dynamics of the supermarket were wholly
modern (high speed, minimum cost) while baking was geared to
fifty years ago when the corner store was in flower. The
food store operators, a wholly new and practical race of
merchandisers, could not understand and would not accept
such approaches.

The bakery industry has been in a rut the last ten
years. Except for corporate chains who owned bakeries, the
industry was interested only in the space they could get in

a store. During this time, larger bakeries should have been

 

2The Super Market Industry Speaks, 1260 (Chicago:
Super Market Institute, Inc., 19 O , p. 20.

3Chapman, p. 137.

4"Baked Foods: Super Market Profit Sleeper7." P- 53-

10

interested in in-store baking. The larger bakeries had the
know-how, equipment, and distribution facilities.5

Present day practices of bakery operations force auto-
mation and mass production Of perishable baked goods too far
in advance of table use in the home. To meet distribution
needs, the production and technical personnel must resort to
the use of materials and methods that produce or simulate

oven freshness.6
Revival Of Interest

The great potential of bakery has just begun to be
recognized. Super supermarkets with all types of departments
have arrived and this year the bakery department is receiving
the attention. The following are just some of the reasons
for this renewed interest:

1. The great traffic pulling power of the bakery
department is finally being recOgnized.

2. The retailer knows the value Of personal
service afforded by this operation.

3. The bakery department has become a high pro-
fit source as Operational costs increase.

4. Bakery aids greatly t? further the concept
of One-stop shopping.

Since satisfaction of the customer is a prime goal of

__A

5Earl L. Wallace, "In-Store Baking Can Rejuvenate
Department," Yankee Grocer, April 10, 1961, p. 27.

6w. E. Broeg, "Why In—Store Baking Is Becoming A By-
word," aking Industyy, September 17, 1961, p. 104.

7Kingston L. Howard, "Frozen, Raw Product Bake-Off
Programs Offer Vast Distributor Opportunity," Qpipk_£:p;§p
Foods, XXIII (November, 1960), p. 29.

11

store management, first chains, then voluntaries and co-Ops,
have taken steps to keep their baked foods customers happy.

Step One was to establish controlled bakeries, whose
products, delivery procedures, and prices were geared to
store needs.

Step Two, still in process, is the sudden mushrooming
of new approaches to baked foods merchandising. Operators
are cashing in on the appealing odors which emanate from
their own baking ovens and on the obvious visual attractions
of such goods.

Step Three, just starting, is the relocation of the
baked goods department into a spotlighted position in the
traffic pattern, where customers cannot miss seeing it and

can respond by buying impuse items as well as staples.8

Volume Traffic Builder

According to one survey, the baked goods department
reaches an annual total of 346.00 in sales for every dollar
invested-~nearly 40 per cent higher than the number two de-
partment and 500 per cent higher than the overall store
figure of 37.58.9

The recent period of high-income levels has undoubt-
edly increased the consumption of sweet yeast products and

pastries. This has meant a shift toward the products of

 

8"Baked Foods: Super Market Profit Sleeper?," p. 30.

9Fred J. Grenier, "Baked Goods Location Can Raise
Total Sales," Yankee Grocer, April 10, 1961, p. 30.

12

retail bakeries and away from consumption of wholesalers'
products. By capitalizing on high traffic location, chain
retail shops are beginning to tap markets that other chain
bakeries have not effectively reached--the impulse-purchasing
consumer.1O

One can quote survey results from Maine to Madagascar,
but the logical conclusion which must be drawn from all of
them is that the baked goods department is not only a very
profitable department, but a great traffic builder for the

rest of the supermarket.11

Re ocation of the Bake De a tment

Bakery departments are being relocated so that the
traffic pulling qualities will be reflected in overall sales
in other departments. Even relatively small changes have re-
sulted in immediate sales gains. Minor rearrangements to
add eye-appeal and convenience have frequently been followed
by surprisingly large gains in baked foods sales.

Selection of the prOper location installation for a
baked goods department in a supermarket is not an easy
problem to solve. It has only been within the last few
years that an appreciation of the complexity of the problem
and the need for its solution has arisen. Previously, most

retailers were content to estimate bread sales, figure shelf

 

10"Sell It Today,” Chain Stone Age, XXIII (October,
1957). p-141-

11Grenier, p. 30.

13

requirements, and let it go at that. Wholesale bakers, by
the same token, did little to impress the importance of
bakery on the grocery retailer. ‘2

In 1950 some large manufacturers of bakery equipment
felt that they had just about reached the saturation point
as far as the sales of medium and small baking devices were
concerned. They experimented and looked for future ideas

and possibilities.
Frozen Pies

The resulting idea was the baking of frozen pies and
pizzas by unskilled help in the stores. The ovens were
placed in plain sight of the customer. The idea immediately
became a success. From this experiment several important

facts became evident:

1. The sales of the pies often increased the
sales of frozen pies sevenfold.

2. Operators found new flexibility and noticed
new sales and the traffic potential of hot
baked goods.

3. Freshness, an old selling fundamental, re-
ceived new emphasis.

4. The pies were not only profitable in them-
selves, but total store agles increased
with this added feature.

The manager of a store in a town of only 21,467 stated:

 

1QGrenier, p. 30.

13"In-Store Baking Is Not New," Baking Industry,
September 17, 1961, p. 106. . .

14

we sold 4,965 pies in our first baking week. Since
then our pie sales have never averaged less than 2,200
per week. The large sale for the first week was due
to a strong merchandising program. From the stand-
point Of the profit factor, women shOppers have told
us that ours are the first store-bought pies that their
husbandg have enjoyed or would allow to be purchased
again.1

Additional Sales

 

Coupled with the value of such a location was a
noticable increase not only in the impulse buying Of pies
and similar on-premise baked foods, but also the general
supermarket merchandise sales were reported to increase
proportionately through the store traffic building benefits
of the in-store baking program.

One Of the amazing factors brought out was that
frozen pie sales, considered normal whether the pies were
frozen ready to serve, or frozen ready to bake, increased in
practically all instances from i200 pies a week as reported

15

bv one most successful Operator.

Drawipg Power Of Pies

The proof remains that the public seeks freshnegs as
well as convenience and nothing appears to be more attractive
to the impulse buyer than warm or hot bakery goods. The fact
that twelve times as many pies are being sold today on the

in-store baking premises in suburban and small city stores

 

14"In-Store Baking Is Not New," p. 106.
15"In-Store Baking Is Not New,“ p. 106.

15

serves to substantiate the above conclusion.

Figures also show that the total store sales mount
with the traffic that develops through the baked pies. The
magnet of hot, freshly baked pastry seems to be irresistible.
It draws clients from all over the city, not just from the
immediate neighborhood. In addition to the sales of the
fresh pies, when quality has been established, customers have
been known to take home cases of frozen unbaked pies to bake
at home or to place in freezers to be baked at a later date.
The sales potentials are great for a wholesale baker who
supplies the supermarkets with these products.‘6

When customers know that the pies being baked on the
premises are the same as those that are in the frozen food

cases, peOple who have never bought frozen pies become con-

fident and steady customers for frozen items.

Summary

This chapter has attempted to demonstrate two specific
facts. First, that the bakery department has become an ex-
tremely important and valuable part of the supermarket today;
secondly, that the bake-Off Of frozen pies was very success-
ful. Customers have indicated that the system of baking-off
frozen bakery products appeals to them. It is an indication
that there are excellent possibilities in the area of frozen

 

15"In-Store Baking Is Not New," p. 107.

CHAPTER III
THE NEW DIMENSION IN SUPERMARKET BAKERIES

The newest element of the supermarket is in-store
baking using frozen, raw bakery products. The great success
realized in the baking-Off of frozen pies was just the begin-
ning of a significant, though thus far admittedly small,
trend towards a new type of in-store baking by supermarkets.
Increasing interest has been shown on the part of market oper-
ators in the possibility and practicality of purchasing from
wholesale bakers frozen unbaked items for actual bake-off be-

fore the customers' eyes.
Definition

In-store frozen baking is the baking of frozen, raw
bakery products in retail stores. Throughout the paper the
definition of in-store frozen bakery will be expanded and
clarified. Certain aspects have different solutions depend-
ing on the particular situation.

Frozen baking is not on-premise baking of the sort
where a complete bakery is present in the store, but is
rather a central-plant bakery Operation with certain products
delivered to various stores in a frozen state for baking and

finishing in the store. Some products (pies, cookies, and

16

i7

muffins) require no work at the store other than baking.
Others require the additional step of proofing. Proofing, or
rising, is accelerated by a proof box so that theIooeration
takes only thirty minutes. The products are then baked in

‘ The frozen line is

the store and sold warm to the customer.
supplemented by a commercial line of white bread and other

high volume items.

Explanation of System

The system will be clarified throughout the paper,
but the following explanation outlines the overall operation:

At a central ant, either a commercial bakery or a
chain store bakery, bakery products are mixed and shaped.
Master bakers are available to insure that high quality is
maintained. A minimum amount of labor can provide the bakery
needs for a large number of stores. Immediately after shap-
ing, the raw products are frozen. Here the preparation ceases
for a while as the raw products lie dormant in a frozen state.

Orders ape sent in by the stores serviced through the
central plant. Frozen products are then removed from the
freezer, placed in a refrigerated truck, and delivered to
the store. The frequency of deliveries depends upon the
amount of bakery sold by the store. 7

At the store the frozen products are again placed in

a freezer in the bakery work area. As the frozen products

 

1Interview with S. A. Jansen, October 29, 1961.

18

are needed, they are removed from the freezer and baked in an
oven which is visible to the customer. Some of the items may
require the application of either icing or filling after

they have been baked. The finished baked goods are placed in
the service case to be sold warm to the customer.

As the supply decreases through customer purchases,
more is baked. The bakery products are replaced as needed.

A detailed explanation of the exact procedure is given in
Chapter VI Of the paper.

Appendix I contains the history and Operational pro-
cedures employed by Dorothy Muriel's, a large bakery in New
England. Dorothy Muriel's is one of the pioneers in the
field of frozen bakery. Included in Appendix I is a chart
of the Dorothy Muriel's products and the extent of bake-off

necessary for each item.

Freezing of Bakepy Is Possible

Frozen bakery itself is not new. Frozen unbaked
goods were first marketed commercially in Chicago in 1936.
Due to a lack of cabinets the venture failed. In 1938 United
Airlines became interested in keeping pastry dough overnight.
The dough was placed at a temperature of 38-40 degrees.
Later United Airlines kept dough in a frozen state ninety

days or more in perfect condition.2

 

2Olive Margaret Botcher, "The Comparison of Quality
of Plain Cakes Prepared From Dry and Frozen Mixes" (un-
published Master's thesis, School of Agriculture, Michigan
State College, 1950). p. 3.

19

Freezing can actually be shown to improve some kinds
of dough and, in consumer reports, frozen pies have rated
very high.3

Although many of the products are baked in the store,
others come completely finished from the central bakery.
High turnover items, such as white bread or items which do
not lend themselves well to the frozen process, are baked
before they are delivered to the store. The illusion that
all goods are baked in the store is given by visible ovens
and an Open finishing area where the products are iced and

filled.

Advanppges Of Frozen Bakepy

The advantages and disadvantages of the frozen bakery
process are discussed fully in the following chapters. How-
ever, at this point a few of the advantages of the system
will be mentioned to show the great potential available.

The process makes available the many advantages of a
complete in-store bakery. Fresh bakery is available to the
customer and the store is filled with the aroma of freshly
baked goods. It is difficult to measure the exact value of
aroma, but it is one of the greatest contributions that a
bakery department makes to a store.

With a supplementing commercial line, the variety

offered is both extensive and flexible enough to meet the

 

3"Like Mother Used To Bake," p. 72.

20

needs Of various localities. Customers are able to do more

complete one-stOp shopping and the sale of related frozen

food items to be baked at home will add additional sales.

Additiongl Advantages

1

Besides taking advantage of the benefits which accrue

only to a complete in-store bakery, frozen bakery eliminates

the many drawbacks which have made in-store baking impossible

for many stores.

1.

2.

10.

The costs of equipment are reduced about one-
third.

The store area required is much less. Thus
smaller stores would be able to have bakeries.

Labor is greatly reduced as one or two full-
time women can do the job of a complete
bakery section in the store.

Quality is uniform because all products are
formed at the central plant by master bakers.

Extra supplies are stored in the freezer,
reducing the problem of resupply.

The profit-absorbing stale bakery is elimi-
nated because items are baked only as they
are needed.

At the same time, a complete line is always
available from the supply stored in the
freezer.

Lower costs allow prices to be correspond-
ingly lowered.

Customers are able to buy the products in a
frozen state to be baked at home.

Sales of related items should expand.

21

11. A whole new market is available by selling

frozen producks to restaurants and
institutions.

The frozen bakery system offers the answer to many
problems and its potential is just beginning to be recognized.
The sale of related items alone shows promise of greatly ex-
panded sales. However, development in various areas depends

largely on the initiative Of those who spearhead the Oper-

ation.

Summagy

The entire baked goods section is built around the
baking and finishing of the frozen products. Pre-baked
items help supplement the bakery line. All major preparations
are done in a central plant and a minimum of labor provides
a complete bakery with products that are actually fresh.

Frozen bakery incorporates the benefits of a com-
plete in-store bakery and eliminates many of the disadvantages.
The profit potential is excellent although the system has

never been tried on a real large scale.

4Interview with s. A. Jansen, October 29, 1961.

CHAPTER IV
THE FEASIBILITY OF FREEZING

Before explaining the specific operations of the
frozen bake-Off program, it is necessary to discuss the ex-
tent to which the freezing of bakery foods is possible. If,
after all, it is impossible to freeze most bakery items and
still maintain high quality, then the entire prOgram of
frozen bakery is unfeasible.

There is nothing new about freezing bakery foods, as
it was first introduced in 1944 by the Research and Merchan-
dising Department of the American Retail Bakers Association.
The first bakery freezer was introduced nationally in 1951
and the freezing of bakery has grown until today about 80
per cent Of all retail bakers use freezing to some extent

in their Operations.1

Different Methods Use;

New methods Of freezing are constantly being develOped
and, as a result, there are no hard and fast rules that must
be followed to make freezing successful. Hardly two bakers

can be found who use freezers in the same way, and probably

 

1Freezi Bake Foods (Cincinnati: The C. Schmidt
Company, 19 2 , p. 2. _

22

23

every system of freezing has been worked satisfactorily by
someone. Consequently, each baker develops his own methods
of freezing bakery products. There are no standard formulas
that can be used by everyone.

The U. S. Department of Agriculture and the American
Institute Of Baking have done extensive research in the
freezing of bakery foods and today, products that would not
freeze successfully a year ago, are giving excellent results.
On the whole it can be said that almost all bakery products
lend themselves in some way to the freezing process.

The freezing Of bakery foods is indeed feasible and
even white bread lends itself well to freezing. However,
certain products are more adapted to freezing than others.
The following discussion gives a brief outline of the freez-
ing procedures for the main types of bakery. The different
methods used are the result of the studies Of many different

people.2

Bread w
Almost all types of bread will freeze well, either
before or after baking. If the bread is baked before freez-
ing, it is important to freeze it as rapidly as possible be-
cause it becomes firm much faster between 50° F. and 20° F.
than at either higher or lower temperatures. To maintain

crumb softness, it is therefore important to freeze and

 

2Complete information on freezing processes is avail-
able from the American Institute of Baking, 400 E. Ontario
Street, Chicago 11, Illinois.

24

defrost it rapidly so that it will pass through this temper-
ature range as quickly as possible.3

Bread may be frozen either wrapped or unwrapped. When
it is wrapped, lower temperatures are required so that freez-
ing takes place within a few hours. It can be stored for
24 days at 0° F. with no noticable firming. In a recent
test by a wholesale baker, loss of moisture from unwrapped
frozen bread was only B of 1 per cent after seven days stor-
age.4

When raw dough is frozen, even better results are ob-
tained. The bread dough is mixed, raised, kneeded down, and
then shaped. The dough is next frozen in the actual baking
tins. Before baking the dough may be thawed and raised one
more time. Less time is required to freeze the dough than
the baked bread. Many bakers report that frozen dough makes
a larger finished product than normal methods, has a better
texture, and stays fresh longer.5

Specialty breads, such as Boston Brown, French,
Raisin, Gluton, etc., freeze equally as well as white.
Caution must be used when freezing genuine rye bread, parti-

cularly if not wrapped, as moisture leaves the bread and

does not return during thawing.

3American Institute of Baking, e Freezin of Bake
Foods (Chicago: American Institute of Baking, 7961), p. 1.
4Freezing Bakepy Foods, p. 9.

5Freezing Bakepy Foods, p. 9.

25

Cgkep

The most practical method of freezing cakes is to
freeze baked, uniced layers that have been stuck together.
Layers will settle down making a more uniform product. This
provides a maximum of varieties with a minimum inventory, as
any icing can be applied to the cakes in stock. Icing can
be applied to frozen cakes and when put on warm, speeds up
thawing.

Unlike bread, cake does not increase in firmness as
the temperature is lowered; therefore, the speed of freez-
ing and defrosting is not important.

Many shops freeze decorated cakes. Icings are ap-
plied and allowed to set before freezing. Cakes containing
custard or cream filling should not be baked before freez-
ing. Sheet cakes used for cutting squares, petite fours,
or specialty cakes slice smoother with less crumbling
when frozen.6

In a taste panel test, frozen yellow and chocolate
cakes stored at 0° F. could be distinguished from fresh
cakes only after three to four weeks, and after five weeks
they were preferred to one-day-old cakes stored at room
temperature. At the same time angel food and chiffon cakes
were inferior after one to two weeks. Different kinds of

cake differ greatly in their stability to frozen storage.7

 

6Freezipg Bakery 20093, p. 8.
7American Institute of Baking, p. 2.

26

Sweet Dougps and Danish
These products adapt well to freezing. Rates of

freezing and defrosting within reasonable limits have been
found to have little effect on freshness or firmness. At
0° F. they maintain their freshness and softness over eight
weeks. In fact, Danish items frequently improve after the
raw dough has been frozen either in bulk or made up. Coffee
cake dough should not be frozen in bowls because it recovers
too slowly.

It is the Opinion of many that these richer products
stale less rapidly than leaner products. However, this does
not mean that sweet dough products do not require careful

treatment.

Doughnuts
Doughnuts, included in the sweet dough category, are
probably the most controversial subject in bakery freezing.
Many bakers do not think that a frozen doughnut is as good
as one that has not been in the freezer. This applies in
most cases to glazed doughnuts. On the other hand, many
bakers have built a good doughnut business by freezing both
glazed and unglazed and report excellent results with filled
doughnuts, bismark, long john, crullers, jelly filled, sugar
twist, and fried cinnamon rolls.8

In a recent study at the American Institute of Bak-
ing, a taste panel found that, after eight weeks storing at

 

8Freezing ngepy Foodg, p. 4.

27

O°F., both cake doughnuts and yeast-raised doughnuts main-

tained a high degree of freshness and softness.9

Pies

 

Bakers have had excellent success freezing unbaked
pies. Unbaked pies canbbe taken from the freezer and put in
the oven without thawing. Pies frozen before baking have a
flakier crust and at 00 F. or below the pies retain their
good quality for several weeks. Practically all pies freeze
satisfactorily except lean cream fillings. Coconut-custard,
pecan, pumpkin, cheese, and chiffon pies all freeze satis-
factorily both baked and unbaked. Frozen fruit pies must
be baked rapidly to prevent the forming of large crystals
in the fruit which causes a breakdown of the fruit after

thawing.1°

Other Items

Cookies freeze successfully, and can be stored in-
definitely when frozen. They can be frozen either baked or
unbaked.

Egg white meringues do not freeze satisfactorily.
However, meringues made from whipped cream or whipped tOp-
ping freeze satisfactorily.

Puff pastry, cream rolls, patty shells, and neopoli-

tans are frequently frozen unfinished and unbaked. They are

 

93 eci Bulle in Number (Chicago: American
Institute of Baking, 19 1 , p. .

1Ogyeezing Bakepy Fpops, p. 4.

28

taken directly from the freezer to the oven. Necessary fin-

ishing is done before or after baking.11

Icipg
It is important to know the freezing qualities of

icings. Icings can be thus stored in the freezer and used
as needed or applied to baked items before they are frozen.
Icings with a relatively high prOportion of fat freeze best.
They look better than fudge icings after thawing as there
is less tendency to sweet. Almost all icings freeze well,
but many of them need some kind of stabilizer or special
ingredient added to aid against cracking, discoloring, loss

of color.12

Bakp: Before or After Freezing?

In applying the freezing characteristics of bakery
foods to the frozen bake-off Operation, the question arises
as to whether the products should be baked before freezing
or after freezing.

High volume bread, such as white and sandwich, are
brought fresh to the store daily, so these are not included
in the bake-off Operation. Other breads which are of the
specialty type or those which serve a particular neighbor-
hood ethnic group would be frozen unbaked at the central

warehouse and then baked-off in the individual stores.

 

11Eppezipg Bakery floods, p. 4.
12Freezing Bakery Egg 5, p. 8.

29

Almost all cakes are baked and then frozen. Fancy
cakes have the icings applied before freezing because of
the special skill required in cake decorating. This can
then be done at the central plant. Regular cakes and cup-
cakes are frosted at the store. Different icings are avail-
able at the store and cakes are frosted to meet the wishes
of the customers.

Pies and cookies are frozen unbaked as are all sweet
dough rolls. The pies require no extra work at the store.
Cookies can have frostings or coatings applied in the store
while the sweet doughs will require either filling or icing.

Specialty items vary as to whether they are frozen
baked or unbaked, or whether they are frozen at all. The
variety of specialty items is up to the ingenuity of the
bakers. Pizza pies make excellent bake-Off specialties as

do ethnic varieties and seasonal specialties.

Storage Length

One of the most important factors in determining
whether the freezing of bakery is feasible depends upon the
length of the time that the frozen items can be held in the
freezer. Most items can be held long enough to be sold
under normal conditions. Items like hard rolls and dinner
rolls should only be held for a week. Almost all other
items can be held for two or three weeks and cakes have been
held for months. Space in a freezer is too valuable for

indefinite storage, however, and for this reason turnover

30

is an important factor. Turnover for most items is at least
once a week, thereby eliminating any problems resulting from
too long a storage time.13 To be sure that items are

rotated properly all packages must be dated.

0gp Items Be Refrozen?

Contrary to pOpular belief, bakery foods once frozen
can be refrozen. Many multiple unit bakeries ship merchan-
dise to branch stores in nonrefrigerated trucks. Some of
the merchandise thaws or is partially thawed during transit.
It is again frozen on arrival and impartial test panels
have been unable to detect any difference in flavor or
freshness.

When planning to refreeze, it is necessary to keep
in mind that freshness in bakery foods begins to leave the
product as soon as it is removed from the oven. Loss of
freshness is like sand flowing through an hour glass. When
the product is frozen, the outgoing flow of freshness is
stOpped just as sand is stopped when the hour glass is
placed on its side. However, none Of the original fresh-
ness is returned to the product. When it is thawed, fresh-
ness begins to flow out again just as the sand flows through
the hour glass when placed in an upright position.14

While the answer to whether merchandise can be re-

‘3yreezipg Bakpry Fppds, p. 12.
14Freezing Bakery Foods, p. 13.

31

frozen is "Yes," good judgment must be used to determine the
condition of products before they are put back into the

freezer.

Special Problems

Sometimes merchandise has a tendency to dry out in
the freezer. The reasons for this are many, but most Of
them stem from poor handling techniques. The problem of
drying out can be remedied by following instructions care-
fully, freezing as soon as possible, and by keeping freezer
temperature near 0° F. at all times. Good air flow in the
freezer also helps.

Items should be frozen quickly to preserve freshness.
For this reason a temperature of ~20° F. is recommended for
original freezing. Once the products are frozen, a freezer
temperature of O0 F. is sufficient.

Most unbaked items must be thawed before baking;
pies are an exception.

Dough can be frozen in molds, but some items do not
thaw out well in molds. This can be corrected by putting
some kind of flour bag in the mold before freezing and
keeping them there through the thawing process.

Frost forms on some merchandise because of high
humidity in the freezer. This can be eliminated by covering
the products affected with plastic liners or putting them
in boxes. The frost then forms on the covering rather than

on the product.

32

Thawipg

Special attention to thawing is needed. Where
humidity is low, merchandise can be thawed on racks at room
temperature. When humidity is high, ways must be found to
eliminate condensation. Thawing with heat shortens the
thawing time and the warm air absorbs the moisture caused
by condensation. The proof box can be used for thawing.
This gives enough dry heat to absorb condensation. Thaw-
ing in the oven is also possible. A small thawing cabinet
can be made with electric lighting supplying the heat. The

temperature should be around 130° F.

Summary

The purpose of the chapter has been to point out
that the freezing of bakery foods is very feasible. Of
course, some specific procedures must be followed, but this
is true in any quality Operation. Almost any bakery pro-
duct can be frozen with good results. Some broad freezing
procedures were included to aid in explaining the Operation

and answer general questions about the freezing process.

CHAPTER V
CENTRAL PLANT OPERATIONS

A retailer who makes use of the frozen bake-Off
system must have a source of supply for the frozen products--
a central plant Operation is needed to form the raw products.
An established wholesale bakery is the most logical producer

for frozen bakery foods.

Independent Bakeries

The independent wholesale baker has almost all the
equipment and personnel necessary for conversion to the
frozen bake-Off program. Conversion does not mean dis-
continuation Of present Operations--the frozen line is
rather a supplement to the fresh line.

The wholesale baking industry has had difficulties
the last few years. Per capita consumption of white breads
has declined and Operating profits have been narrowed con-
siderably. Complete bakeries in supermarkets are on the
increase and many food chains have their own central bakery.
As a result Of all this, independent wholesale bakeries
have had to lower the profit margins and struggle to main-
tain volume. Bakers are forced to bid for shelf space in

grocery stores.

33

34

The bake-Off program Opens a new field to the whole-
sale baker. As the frozen bakery supplier for retail stores,
the wholesale baker can increase volume and profit margin by
making his frozen products available for the bake-Off pro-
gram. Dorothy Muriel's Of Boston, Massachusetts, is cur-
rently supplying frozen bakery products to a number of
stores. Through this operation the sales of regular Dorothy
Muriel bakery products to the stores have also increased

The Continental Baking Company has entered the bake-
off field by leasing store space and establishing its own
bake-off outlet in supermarkets. Test areas are in Detroit,
Michigan, and Denver, Colorado, where supermarkets are
serviced from centrallyrlocated plants. The company expects
the break-in period to extend over several years, but it
reports good prOgress in the field.1

Independent retailers have been looking for an
opportunity to compete with the chain store central bakeries.
Prior to this time, the only method available was operating

a complete in-store bakery.

Chain Bakeriep

The supermarket chain bakery division is in an excel?
lent position to adopt the bake-off program. Distribution
lines have already been established and all equipment and

personnel are already available. There is no need to search

 

1"Are YOu in on In-Store Baking?" Super Market
Merchandisi , XXVI (December, 1961), p. 50.

35

for retail outlets because the stores in the chain prove
ready markets for the frozen products.

The bake-off supplier must be well established in
the bakery field because of the complexities and coordin-
ation necessary not only in baking but also in distribution.
A frozen food distributor is used by Dorothy Muriel.

Conversion Necessary

An established wholesale bakery will require little
conversion at the central plant to handle frozen products.
Personnel are no problem because the present employees can
be used to do the mixing and shaping. Because some pro-
ducts are frozen unbaked, some frozen baked, and some not
frozen at all, a complete bakery Operation is still neces-
sary. Therefore, the same crews are retained.

Little additional equipment is necessary because the
system itself is not changed significantly. Some products
are merely removed from the production line prior to baking
and are placed in a freezer to be baked at a later date.
Most bakeries already have freezers, but some will need to
increase the size of the present freezer or install a new
one. (See Appendix I.) However, this is the only major
equipment change necessary.

Of course, the present help will have to be trained
in the new system. Assembly lines are still possible and,
because the crews are already trained in normal bakery Oper-
ations, the training required for the new system should be

minor.

36

The Freezpr

The particular type and size of the freezer at the
central plant depends upon the specific needs and volume of
the bakery. As a general guide, the freezer should have an
air flow rate of 1,000 linear feet per minute and have a
steady freezing temperature Of -20° F.2 Present freezers
which do not meet these specifications can be improved by
adding special attachments available for just this purpose.

A.b1ast-freezer is necessary in the initial freezing
of the dough because it is important that the dough pass
through the staling temperatures as quickly as possible.
(3%9Chapter IV, p. 23.) Once the dough has been frozen,
it can be stored in any normal type freezer.

Hill's Bakery of Detroit, Michigan, which makes the
Daffodil Farm products for the Continental Baking Company
in the Detroit area, has a blast freezer which is 20 feet
by 50 feet (1,000 square feet). It is large enough to
store all the frozen bakery necessary for 100 stores sell-
ing $500 of frozen bakery products a week. This is equiva-
lent to 100 stores each doing approximately 830,000 total
business weekly or a total bakery volume (5 per cent of

sales) per week of 83,000,000.

2Berkln, p. 36.

37

Maklng the Produgyp

The assembly line operation can be used and products
merely placed in the freezer before baking. The unbaked
foods can be mixed, formed, packaged in baking tins, and
then placed directly in the freezer. Production schedules
that require an increased working force during the week can
start the week with a slightly larger force and build an
inventory in the freezer for busy days. Freezing can make
possible a five-day work week.

Other products are baked and then frozen. They can
be packaged and stored right with the unbaked products.
More advantageous production schedules are also possible.
Special dinner rolls and buns are made up in large batches
rather than for daily needs, thus making better use of mass
production.

The vast majority of bakery products are subject to
a high rate of staling and they must, therefore, be manu-
factured as near to the estimated time of sale as possible.
In most cases sales vary greatly from Monday to Saturday
and the baker is faced with the situation that his plant is
too small on Friday and too large on Monday. Even where
sales of some lines are more or less steady on a day-to-day
basis, but nevertheless small, it is very uneconomical to
make a small batch every day, instead of one larger one,
once per week.

The introduction of quick-freezing and cold-storage

into a bakery offers a scope for evening out daily production.

38

All the coffee cakes needed for a whole week can be made on
a Monday and then frozen. Sweet rolls can be produced on
Tuesday, etc. This way many items needed for the busy week-
end can be produced ahead of time with great savings in
labor costs and a stock of material will be ready for use

at any time.

Mr. Graybon Young, bakery manager of Hill's Bakery
and a baker with 35 years experience, says that he never
realized a freezer was so important until he got into the
Daffodil Farm Operation. He can mass produce many items by
freezing, thus saving valuable time and labor costs. He
now has over 200 varieties of specialty items available
every week.

Mr. YOung was surprised by the ease with which items
could be frozen and incurred no major difficulties in in-
corporating the freezing process into his normal Operations.
The freezing process worked so well that he now uses it for
a fresh line of bakery goods which Hill's Bakery distri-
butes under another name. Many conventional bakers use the
same freezing methods at their central plant, but they bake-

Off in the warehouse instead of the store.3

The fig; Chgllenge

The actual conversion process is relatively simple.

The difficulties and problems arise in the research and

 

3Interview with Graybon YOung, head baker, Hill's
Bakery, Detroit, Michigan, March 20, 1962.

39

testing departments. Because of the newness Of the idea,
very few tested recipes are available. The success of the
program depends upon the ability to maintain high quality
with increasing variety. Doubtless, there will be many
failures at the beginning, and constant attention will be
needed to expand the program.

Mr. YOung stressed the importance of maintaining
high quality in the bakery products. Almost anyone can
duplicate the same ingredients at the same price. All
bakery products can be frozen and baked-Off in the store--
except that fillings or icings must be added after the item
has been baked. Bread and other yeast products require the

additional step of retarding before they are baked.4

Packag;ng

For long time storage in freezers, merchandise
should be wrapped. Finished merchandise can be wrapped or
packaged as part Of the production Operation. Wrapped
items require a longer time to freeze and need lower temper-
atures.5
With no protective covering, frozen bakery becomes
unpalatable in a few weeks. With proper packaging it can be
kept for much longer periods. Packages must exclude or

minimize contact with the air besides protecting the product

from dirt. Packaging helps to prevent loss of moisture

L

4Graybon Young.

5Freezing Bakery Foogg, p. 15.

40

in freezing.

Some Of the characteristics Of good packaging mater-
ials are:

1. They must be strong.

2. They must be flexible at low temperatures.

3. They should not absorb moisture.6

Transportation

After the bakery foods have been formed, packaged,
and frozen at the central warehouse, they must be trans-
ported to the retail outlets. Although frozen bakery pro-
ducts can be refrozen, the preferred method of transportation
is in refrigerated trucks. This involves a definite capital
outlay. However, certain actions by the government indicate
that in the future all frozen food will have to be trans-
ported in trucks which can maintain a temperature Of 0° F.
Although frozen bakery requires refrigerated trucks, the
purchase of such trucks may be necessary anyway to transport
other frozen foods.

At the present time, the Cryogenic Products Depart-
ment of Linde Company, Division of Union Carbide Corporation,
is testing a nitrogen system Of keeping temperatures low.

The system requires minimum maintenance. The Operating

costs average only 810 daily per truck.7 The problem of

 

6American Institute Of Baking, p. 4.

7"Liquified Gases--New Nitrogen System Aids LTL
Delivery," Quick Frozen Foods, XXIII (August, 1960), p. 129.

41

transportation has been eliminated by some wholesale bakeries
through the employment of a commercial distributor.

Another simple solution was found to the transportation
problem. Insulated metal containers are used to hold the
frozen products. When the bakery is placed in the freezer
cans of quick freezing liquid (pro-cooled inserts) are
placed right with it. The bakery and freezer cans are
placed in the insulated metal containers as orders from
stores arrive. The containers are then left on the shipping
dock through the night for quick loading in the morning.
These containers can maintain a temperature of 00 F. for
over 24 hours. Thus the need for freezer trucks is elimi-
nated. The insulated containers cost $125 and will hold 50
pounds of bakery. This compares favorably with conventional
wire baskets used by many bakeries. Ten wire baskets are
needed to hold the same amount of fresh bakery and cost $6

each.8

Costg

The exact costs for central plants to produce bake-
Off products depends on the specific Operations of the plant
itself. Costs should be no more than producing bakery by
the regular methods. Goods produced for supermarkets’bake-
Off are actually more profitable since overtime and com-

paratively more expensive forms of packaging are eliminated.9

8Graybon YOung.
9Berkin, p. 35.

42

Even though the bake-off products are not finished completely,
they are sold to the retailer at prices as high or higher
than regular commercial bakery products. The retailer, in
turn, is able to sell bake-Off items at higher prices be-
cause they are "fresh." The supermarket bakery department
usually has an average of 40 per cent_gross markup on bake-
Off items.

In fact, substantial savings should result through
better scheduling and reduced labor. The fixed cost of the
freezer should be returned through extra profits in a very

short time.

Summary

The conversion for the bake-off system necessary at
a central plant is relatively minor. There should be no
major difficulties in integrating the bake-Off process into
the normal production system. Extra profits are available
through the use of freezing. A competent and imaginative
bakery staff is the most necessary prerequisite for enter-

ing the bake-Off field.

CHAPTER VI
IN-STORE OPERATIONS

The specific operations needed for a bake-off system
are not particularly foreign to present procedures employed
at the wholesale or central plant level. The point at which
the bake-Off system differs the most from present bakery
methods is at the retail store whenethe finishing of the
product occurs.

The overall retail operation will now be explained in
detail. A model system will be developed which is oriented
towards a store which does a weekly volume of about $30,000
and a weekly bakery sale of 31,500.

The most effective kind of bakery department a market
can have is a bakery Operation where the actual baking Of
products is done before the customers, assuring them a high
quality, fresh product baked before their very eyes. The
Operation must take the least amount of valuable floor space,
with the most automatic, trouble-free type Of equipment
possible.1 This is necessary because relatively untrained
personnel will Operate the department and do the actual

baking.

 

1Seymour Raubrogel, "In-Store Bakery Equipment,"
Yankee Grocer, April 10, 1961, p. 28.

43

44

The equipment needed for a bake-off operation where
the supermarket purchases the frozen dough, stores it, and
then bakes-off when needed is as follows: A freezer, proof
box, oven, display clases, racks, sinks, pans, and small

utensils.
The Freezer

When frozen products arrive at the retail store they
are placed in a walk-in freezer or chest freezer. The size
of the freezer can vary depending upon the amount and variety
Of frozen products. The variety will increase as the program
develOps. For this reason, the suggested minimum size is 45
square feet for walk-in freezers and 36 cubic feet for chest
freezers. No special type of freezer is necessary because
once the dough has been frozen, it can readily be stored at
temperatures up to 100 F.

The freezer should be located at one corner of the
work area. Those stores which eXperimented with bake-Offs
have often used a large, sectioned freezer that also is used
to store other frozen foods.

Rotation is an important factor and all products are
date-coded. Those which have been stored the longest are
used first. Certain products will have a longer storage life
than others.

Because the products are frozen and are baked as
needed, delivery can be anytime during the day. With other

bakery products, delivery is needed early every morning.

45
Pre aration or the Da

If the store Opens at 9 A.M., the baking begins at 8
A.M. when one of the bakery women starts preparing the pro-
ducts for the day. The maximum time needed for baking any
item is 30 minutes and several products can be baked at one
time. By 9 A.M. the bakery department is ready to serve the
customers.2 Wile some items are baking, others are being
finished.3 During the short cooling interval, those items
not completely oven finished are glazed, dabbed, or brushed

with frosting, sprinkles, etc.4

The Proof Box

The proof box is used to raise certain products which
require this as a final step before baking. It can also be
used to warm frozen products.

It should be of a non-corrosive material, with auto-
matic humidity and heat controls and able to keep up with
peak period requirements. It must be simple to Operate for
the bakery women. The proof box that meets all these re-
quirements is the Bakers Aid 140 AB, which includes over-

size heater and humidity coils, water pan, wet and dry

2Throughout the chapter it must be kept in mind that
white bread and sandwich bread are delivered daily in pack-
aged, pre-baked form. Some frozen items are already baked
and merely need thawing and/or finishing.

3The chapter described the bakery department as a ser-
vice rather than self-service Operation because of the bene-
fits Of personal selling and because the bakery women are
already available and can be utilized to sell as well as to
bake.

4"In-Store Baking Is Not New," p. 105.

46

controls and stainless steel interior construction.

It has a 12 gauge extruded aluminum frame, 3/16"
aluminum floor plate, full 1" semi-rigid, high density fiber-
glas insulation, front and sides of box finished with heavy
gauge aluminum on the interior and exterior. The floor space
required for this box is 2'-6" wide x 2'-11" deep x 6'-3"
high. It will accommodate one pan rack and also can be had

with pan slides, also for two or more racks.5
The Oven

The most important Operations concern the oven and it
is the most critical piece Of equipment. A good example of
the type Of oven needed is the Despatch Baker Boy Revolving
Oven. It has the ability to produce for the peak periods re-
quired by the supermarket, in an economical and trouble-free
manner. The floor space needed for a 12 pan oven that has
four trays, 26" x 56" is only 7'-6” wide and 7'-2" deep.

The oven never needs to be lubricated in the heat zone be-
cause all bushings and bearings are of graphite bronze. It
assures quiet Operation and no foul aroma.

The moist master steam dome is another feature that
will give the user a greater yield on each product baked be-
cause the moisture of the product is retained in the oven
instead of going out the flue.

The exteriors come in white finish or in pastel shades

to match color schemes.

5Raubrogel, p. 28.

47

An oven of this type can be Operated by anyone and
allows different temperatures to be set for different drawers.
Timers are also available.

The oven is placed so that it is visible to the
customers. The intent is to publicize the in-store baking
process. With the oven in the Open, the aroma of the bakery
has a better chance to permeate the store“

A master baking schedule is prepared at the central
plant and posted in each bakery department. The bakery woman
merely follows the schedule to determine temperature and
baking time for each item. Thus quality control is extended
all the way to the retail store. As new items are intro-

duced, appropriate notations are made on the master schedule.

Finiphing

With the in-store baking oven properly placed, the
attendant can quickly and easily remove the hot baked foods
from the oven to be quickly inserted, after a short cooling
period, into trays, envelOpes or containers and then into
the warm service or hot service counter.

The items that require finishing are frosted during
the cooling period. The extent to which finishing can be
employed on the premise is entirely dependent upon manage-
ment's policies, because many items may be produced that
require the application of frosting or other finishes. There
can also be those items which are already baked or partially
baked in the central plant which can be frosted in home

48

style manner to insure freshness at the point of sale.

A special work bench with sink is provided for the
finishing. Almost all icings can be frozen and a large
variety of icings is then kept on hand in the freezer. The
finishing process allows the bakery women to express artis-
tic aptitudes and those particularly adept at this can

decorate cakes for special occasions.

The Display Rack

The type of display racks utilized is entirely up to
the imagination of management. Display cases are sold by
many companies and can be adopted to any mode desired.

The bakery women place the warm bakery in the display
cases and have "hot" bakery available to the customer. As
supply decreases through customer purchases, more items are
baked. Thus not only is the bakery ”hot" in the mornings,
but also all through the day.

On busy days the oven will be going continually. 0n
slow days, items are baked only as needed. Customers are
able to order specific items when they enter the store and
pick them up hot only 30 minutes later. Customers can also
phone the store to have special bakery products prepared and
then pick them up at their leisure.

The bakery department is supplemented by the large
volume bakery items prepared completely at the central plant.
On days when there are storms or when business is not as

good as expected, the bake-off Operation is curtailed and

49

the prepared products are sold. Through this method, cost

consuming stales are kept to a minimum.

Areg Required

A complete in-store bakery requires a minimum of 1,200
square feet of backroom space, while the bake-off system
needs a maximum of 400 square feet and a minimum Of 300 square
feet.

Floor space used depends upon the wishes of management.
If necessary, selling space can be as little as that used by

commercial bakery sections in stores that have no bakery.
Personne

One of the major advantages Of the bake-Off system is
that trained bakers are not necessary. For a store which
does a bakery volume of $1,500 per week, two full time bakery
women and one part time woman are all that is needed. Not
only do they do the baking, but they also do the selling. A
one-week training period is used to acquaint them with the
bake-Off procedure.

In some areas of the country, people like hot rolls
for breakfast. This could necessitate opening earlier in
the morning to accommodate these people. Because of the good
will, bakery sales, and extra store sales resulting from

earlier Opening, it does not seem to be a major disadvantage.

50

Variety and nglity

A bake-off system will not succeed unless there is
enough variety for the customer. Because almost all items
can be frozen, the variety available should be almost un-
limited.

Quality is of prime importance in bakery products.
The sale of inferior quality items at ”bargain" prices will
do more harm in alienating customers than good. The quality
and taste are much better than commercial type bakery pro-

ducts and will easily bring a higher price.
Related Sales

Customers can also be encouraged to take home frozen
items to be baked by them whenever they want. Special in-
struction sheets are included with "bake at home" pur-
chases. Other frozen food items in the bakery line should

increase in sales also.

Summary

The purpose Of the chapter is to explain the mechanics
of the bake-Off system-~to show what procedures and equip-
ment are necessary and what problems may be encountered.

From the above discussion it is evident that the procedures
are easy to follow and do not require an undue amount of co-
ordination. The system also has great flexibility-~it can
adapt easily to varying customer demands and can be utilized

in both large and small supermarkets.

CHAPTER VII

IN-STORE COSTS AND COST COMPARISONS

The preceding chapters have demonstrated that the
freezing of bakery products for subsequent baking is not only
possible, but also very feasible. The Operations at retail
and wholesale level have been described to show that the
system is workable and that equipment is available to meet
the specific needs of the bake-Off program. The freezing of
raw bakery products for bake-off in the retail stores does
not sacrifice quality or Operational flexibility. Although
it is a new field with only pilot installations operating at
the present time, the system will work and is adaptable to

many stores.

Quality vs. Cost

Whether the bake-Off prOgram will be adapted by super-
markets as an Operating technique depends upon several
factors. Two of the most important are quality and cost.
Naturally, the profits obtained through the bakery program
are an important factor in determining whether the system will
be a success or not. However, direct profit is not the main
selling point of the bake-Off program. The main advantage

of the department is the increase in total store sales

51

52

resulting from better consumer service with fresh bakery.
Stores report increases Of 8 per cent in total store volume
after installing bake-Off programs.1

In order to show a true picture of the costs Of the
bake-Off system, it must be compared with the costs Of the
two other methods Of bakery operations now used-~complete in-
store bakeries and commercial bakeries. The comparison with
in-store bakeries can be direct because of Operating similar-
ities. The comparison with a commercial bakery section must
be in a more indirect manner, showing the advantages of fresh
bakery as profit potential with its increased installation
costs.

The cost figures and cost percentages that follow are
as accurate as possible, but are not the "last word." The
cost data for the bake-Off system suffers because the program
has not been in Operation long enough or on a large enough
scale to be truly representative. The cost data for the
complete in-store bakery suffers because it is representative.
The data pertains to an "average" in-store bakery, but
fluctuation from one bakery department to another are so
great that the "average" bakery department is difficult to
find.2 The great fluctuation from store to store is a major

disadvantage Of the in-store bakery. Profits and quality

1George Kolovson, "In-Store Baking Increases Sales
Because It 'Makes 'Em Hungry,'" Yankee Grocer, April 10,
1961, p. 31.

2See the.NARGUS Bulletin for June, 1961, page 114.
Other surveys have arrived at similar results.

53

depend largely on the caliber of bakery personnel available.
Cost comparisons will be made for a store with a weekly

bakery volume of $1,500.

Eguipment Costs

Bake-Off System

Costs for complete set-up of a bake-Off program vary
with the size and quality of installation. A small Operation
can cost as little as $1,000 and a large operation can cost
as much as the individual operator wants to spend.

For a store with a bakery volume of $1,500 per week,
the cost of a very satisfactory set-up is $6,000. This in-
cludes all baking equipment, all display cases and signs, and
all installation costs. Examples of an Operation Of this
type are the Daffodil Farm Bakery departments being experi-
mented with by the Continentual Baking Company and the in-
stallations Of the T. F. Naughtin Company of Omaha, Nebraska.

Complete Bakery

An individual breakdown of equipment costs for in-
store bakeries will not be given because particular costs
for specific items of equipment vary considerably. Appendix
II contains a cost picture of an average bake-Off system
furnished by the T. F. Naughtin Company. The T. F. Naughtin
Company costs are used for the bake-off Operation because
they contain all Of the features necessary and give as

representative a cost picture as possible.

54

Many surveys have been taken to find the costs for a
complete in-store bakery: The concensus of Opinion is that
the costs for a bakery outfitted for a store with a weekly
bakery volume of 31,500 is $25,000 plus plumbing, electrical,
and installation costs. These add from 81,000 to $3,000 to
the total cost.3 The total cost figure used in the compari-
son will be 827,000.

Space Reguirements

The back room space needed for the bake-off system is

400 square feet,4

while the minimum work space required for
a complete bakery is 1,200 square feet.5 Commercial bakery
has, of course, no equipment requirements because all bakery
comes completely prepared. Some back room space is needed,
however, to store boxes and cartons, but because of the
small amount needed it will be disregarded.

Display space (selling space) depends upon the extent
to which the bakery section is promoted by the store. It
makes no difference whether the system is in-store, bake-off,
or commercial bakery. The space depends upon the emphasis

placed on the department. For this reason, costs of selling

epace used are not treated in the cost comparison.

 

3Chapman, p. 33.
4Kolovson, p. 31.

5"In-Store Manufacturing Bakery," NARGUS Bplletin,
XLVIII (June, 1961), p. 115.

55

Fixed Cost Comparison

Using the above figures, the fixed costs of a bake-
Off operation are only one-fourth that Of the complete in-
store bakery. Because large investment is one of the major
disadvantages of the complete bakery, the bake-Off process

has a distinct advantage in investment required.

ppgpzprr Co lete Bake
Equipment $6,000 $27,000
Space 400 sq. ft. 1,200 sq. ft.

The fixed costs for commercial bakery are almost neg-
ligible, but commercial bakery does not create the customer
response that fresh bakery does and grocers are realizing

that commercial bakery does not satisfy customer wants.

ngredient Costs and Direct Lgbor

The ingredient cost in a complete bakery averages
about 33 per cent of sales, while labor costs employed in
actual preparation average about 35 per cent.6 A total of
68 per cent Of sale price goes into the preparation of the
products. How does this compare with the bake-off system?

Because bake-off products, for the most part, are
prepared before coming to the store, ingredient costs and
labor costs of preparation cannot be figured. These costs
are part of the central plant Operation. In present Oper-

ations the costs to the retailer are approximately 60 per

 

6"In-Store Manufacturing Bakery," p. 114.

56

cent of sale price. Also included in the cost is the de-
livery expense and expenses for such items as icings needed,
reusable baking tins, and storage boxes.

The central warehouse has the advantages of mass pur-
chasing of ingredients and mass production. Oven time and
more expensive types of packaging are eliminated. FOr these

reasohs the central plant makes a profit, yet only charges

the retail outlet 60 per cent Of sale price.7

Supply Costs

Supply costs depend to a large extent on whether the
department is a service or self-service operation. Packag-
ing supplies amount to 5% per cent of bakery sales in a
complete self-service operation. In a complete service
Operation from show cases, packaging costs are usually 3%
per cent. The difference is between the cost of trays and

cellOphane over the cost of paper bags and boxes.8

Sellipg Costs

In the bake-off system, labor costs are incurred in
the baking and selling of the products. The labor costs of
the bakery women average 10 per cent of sales. Since the

women who do the baking also do the selling, the selling

 

7Berkin, p. 35.

8Joseph L. Leon, "The Return of the Neighborhood
Bakery" (Department of Marketing and Transportation
Administration, Michigan State University, February 18,

1959)! p0 120

57

costs are included in the 10 per cent labor cost.9 The
selling is a service type Operation which results in pack-
aging costs Of 3.5 per cent.

The selling expenses of a complete bakery are included
in the previous labor costs of 35 per cent, but this is for a
self-service Operation which would require packaging costs of
5.5 per cent or 2 per cent greater than the bake-off system.
If the in-store bakery uses a service Operation, the pack-
aging costs are reduced, but labor cost rises by 2 per cent.10
Using either method, a 2 per cent cost is involved in the in-
store bakery operation which is covered in the bake-off pro-
cess by either labor or packaging. For purposes of this
paper, the labor cost for in-store bakeries will be figured

at 35 per cent and packaging costs at 5.5 per cent.
_D_i_rect Costp

By adding together the various costs analyzed so far,
a comparative profit margin can be obtained. The expenses

involved in Contribution To Overhead are not included.

Bake-Off Complete Bakery
cost from central cost of labor and
plant 60.0% 68.0% ingredients
supply costs 3.5% 5.5% supply costs
labor costs 10.0
Total 73.5, 73.5% Total
Margin 26.5% 26.5% Margin

 

9"Are You in on In-Store Baking?" p. 48.

1°”In-Store Manufacturing Bakery," p. 116.

58

Indirepp Expepsep

Up to this point, the margins of both systems are
equa1--26.5 per cent. Now the indirect expenses are added.
These include all indirect overhead expenses chargable to
the bakery Operation, including: utilities, employment and
property taxes, space rental charges, depreciation, building
maintenance, and similar expenses.

Fbr the complete bakery, the indirect expenses are 13
per cent,11 while those for the bake-Off are only 5 per cent.
The indirect costs for the bake-Off are much lower because
of smaller size, less electricity, etc. The result is an
Operating margin of 13.5 per cent for the complete in-store
bakery Operation and 21.5 per cent for the bake-Off system.

Throughout the above discussion the bake-off system
was treated as a complete department; however, the bake-off
products are supplemented by a commercial line. Although
the total dollar figures are not comparable because the
bake-Off sales do not equal complete bakery sales at a uni-

form department sale, the percentage costs are comparable.

Return on Ipvestment

The percentage figures show an operating profit of
13.5 per cent for a complete bakery. At 81,500 weekly sales,
the dollar profit weekly is $202.50, or yearly (50 weeks)
$10,125. For the bake-Off prOgram the Operating profit is

“Lech, p. 13.

59

21.5 per cent. Bake-Off sales of a bakery department with
large variety are 35 per cent of total sales.12

The weekly dollar profit is $112.88 or yearly (50
weeks) $5,644. This figure does not include the profit from
65 per cent of the sales (white and sandwich bread) which

result from commercial bakery.

Bake-Off Complete Bakery
investment “6,000 327,000
yearly profit 35.644 10,125
return on investment 94.1% . 37.5%

Although there is a vast difference in return on in-
vestment certain qualifying factors must be taken into con-
sideration. The assumption has been that the sales of the
bake-Off program will equal that of the complete bakery.
This will only be true if the variety is large enough to
satisfy the consumer. From previous chapters it is evident
that variety is available, but the success will depend
largely upon the imagination and leadership Of the peOple
involved. The bake-off program has the advantage of more
uniform quality, more potential variety because of central
baking, fresher products because they are baked as needed,
and less stales.

Return on invested capital for the commercial type
bakery is very high because of the limited capital required

at the store. Display cases are all that are needed, but

L __..— _ h

12"Baked Goods," Chain Spore Age (EXQOUtiVBS edition),
XXXVII (July, 1961), p. 75.

6O

consideration must also be given to reduced sales from
limited variety and lack of freshness. Commercial bakery re-
duces sales for stores of equal size to about two-thirds

that Of stores with fresh bakery.1:6 Net profit on sales is

only 4 per cent.14

Stales

A major plus factor for the bake-Off process in the
cost analysis is the practical elimination of stales. At
the present time stales average about 4 per cent for com-
plete bakeries and 8 per cent for commercial bakery.15
Because the items are thawed or baked as needed, supply can
be varied to meet demand. About 65 per cent Of the sales
will be commercial bakery in the bake-Off system, and the
elimination Of stales for this group will be difficult.
However, stales are not as high in bread as in sweet dough
products. The stales for the bake-Off portion should be
only 1 per cent of stales. The freezer can also be used to

hold the commercial items when business is slow.
Labor

Perhaps the major disadvantage of the complete in-

store bakery is the labor costs and difficulties incurred.

 

13Interview with Ernest Meyers, December 28, 1961.

14Dennis Wuebker, "Desirability of Investing Capital
in On-the-Premise Bakeries" (Food Distribution Program,
Michigan State University, February, 1959). p. 7.

15Clarence Denham.

61

One baker is needed for every $500 worth of bread product at
retail, but at least two bakers are needed no matter what
the size Of the bakery. Wages for bakery production workers
rank among the highest in the food industry.
A bakery department averaging $1,500 per week would
require:16
Bakery Manager
Baker
Baker
Finisher and Decorator
Wrapper-Displayer
Wrapper-Displayer
Porter
Seven Employees
In the bake-off program only three employees are
needed. Two full time women are needed plus one part time
girl. However, a district supervisor is also needed to
control Operations and quality. The store manager must also
treat the bakery department as an important part Of the
store Operations and devote considerable time to supervising.
The basic labor problem in complete bakeries is not
necessarily the high expense but the difficulty in obtaining
competent bakers. There is a definite shortage of quali-
fied bakers and many stores that want complete bakeries are
unable to do so because they are unable to get needed person-

nel. Long and irregular hours is another disadvantage.

These shortcomings are overcome by the bake-Off system.

 

16Chapman, p. 59-

62

Summary

Direct cost comparisons are difficult, but from the
analysis presented in this chapter, it is evident that the
bake-off operation can offer enticing profits at costs sub-
stantially lower than with a complete in-store bakery.
Labor difficulties are also eliminated. The commercial
bakery section has a low profit margin and does not produce

a high enough volume in comparison with fresh bakery.

CHAPTER VIII
MERCHANDISING THE BAKE-OFF PROGRAM

The technical feasibility of the bake-Off program has
been pointed out, the general Operating procedures have been
explained, and cost comparisons have been made. The real
test of the bake-off program, however, is whether or not it
will generate sufficient volume to overcome the equipment
and labor expenses involved. The Operation definitely pro-
duces cost savings at the central plant, but the bake-Off
system must also result in extra profits at the retail level.
Specific merchandising techniques which will aid in increas-
ing volume or lowering costs are treated in this chapter.

The following discussion does not have its basis in
statistical results, but is more in the realm of personal
Opinion.

The bake-off program will create more than sufficient
volume if it is merchandised prOperly. Because no set Oper-
ating procedures have been established and tested thoroughly
to date, food merchandisers must use their own experience and
ingenuity in determining the correct approach. The recom-
mendations given below are provided as guides and suggestions

for prOper merchandising of the frozen bake-off program.

Transportation

For initial testing of the system and because of
their lower cost, insulated containers should be used to
maintain proper temperature during transportation. Freezer
trucks can be added as the Operation increases in size. The
insulated containers can be shipped right along with other
groceries. Thus no special transportation setup is necessary.
At the beginning delivery will be necessary probably three
times a week until consumer demand for a particular item has
been determined. Then deliveries may be reduced to once or
twice a week, depending on freezer facilities. The insulated
containers can also be used as extra storage in the stores

on heavy demand days and for special promotions.

Location in the Storp

The specific location of the bakery department in
supermarkets has received growing attention the last few
years. With the employment of the bake-off system, the
bakery department can be near the end of the store traffic
flow, immediately before the check-out stands. Bakery pro-
ducts other than bread are largely impulse items and
customers tend to make these purchases after they have bought
the necessity items. By having the bakery department last,
customers are more inclined to buy bakery products. Cus-
tomers can also order baked goods as they begin shopping and

pick them up warm before leaving. Of course, by having the

0\
kn

bakery department at the end of the line, there is less
danger of having baked goods squashed and the frozen products
have less chance of thawing.

Of prime importance is the coordination of the bakery
department into one section. The Daffodil Farm Bakery Oper-
ations in KrOger supermarkets are placed in one part of the
store while the KrOger commercial bakery line is placed in
another. This is unsatisfactory because it makes the two
bakery sections competitive with one another instead of
complementary. The bake-off and commercial lines should be
combined in the same area. Frozen bakery lines, such as
Pepperidge Farm and Sara Lee,should also be included in one

large bakery department.

Appearance and Theme

Great variations in design are possible for bakery
departments. The important thing with the bake-off system
is to promote it as a major department of the store. Maxi-
mum aesthetic appeal is needed and the department should be
given the appearance of a complete bakery with all the trim-
mings. The illusion that all items are baked in the store is
given by visible ovens and windows in the finishing area.
To build and hold the necessary image calls for maximum show-
manship. It is very necessary to have the oven in Open view
of the customer to publicize visually the fact that products

are actually being baked in the store.

66

Milena

A service type Of Operation is recommended over self-
service for the following reasons: (1) More personal con-
tact is needed, especially in very large supermarkets; (2)
the bakery women are already present, so extra help for sell-
ing the baked goods is not needed; and (3) there are extra
savings in packaging costs. A cash register should be used
at the counter to keep an accurate account of sales. This
will provide more accurate data while the program is new and
is the method used in most complete bakery operations.

The bakery products themselves should be date-coded
to insure proper rotation in the freezer. Ordering can be
done twice a week and the completed order sent to the central
plant so that only ordered goods need to be shipped to the
store. Pre-ordering is presently used by most private label
chain bakeries. Something should be baking in the Oven at
all times to take advantage of the magnetic aroma of baked
goods.

The bakery items which are baked-off at the store can
also be sold in the frozen state to be baked by the consumer
in her own home. Frozen bread dough can be sold in aluminum
tins. The customer merely raises the dough for two hours
before she bakes it in her oven at home. Special bakery
instructions can be included with these purchases. Clean-
liness standards for the bakery department should be very

strict.

67
Stgrg Size

The exact store size needed to maintain a bake-off
program depends on many variables. TO initiate the program
store volume should be 340,000 a week or more. A store this
size should provide the best idea of what adjustments will
be necessary for stores of higher or lower weekly sales.
Adaptations of the bake-Off program should be satisfactory
for stores doing as little as $25,000 per week. Costs of the
program decrease considerably as department size decreases.
The use of smaller ovens and freezers, less back-room space,

and less help all reduce costs.

Advertising

To promote the bake-off program adequately, a compre-
hensive advertising plan is needed. This includes a coordin-
ated program Of newspaper ads, special sales, and in-store
signs. A weekly special will be needed to maintain customer
awareness and interest.

Customers should be told that this is a frozen oper-
ation and it should be publicized to the extent that it is
"fresher than fresh." This should also aid in raising sales
of other frozen bakery items. Specials can be more success-
ful due to the lack Of over-ordering or under-ordering.
Customer morning coffee breaks can be a real success with

fresh bakery samples.

 

68
Training

Training is required for the supermarket personnel
who are to Operate the bake~off facilities in the store. A
two-week training program should be sufficient. One week
could be spent at the central plant learning to use ovens and
proofers and gaining technical knowledge. Another week could
be spent at an actual in-store installation to get practical

experience.

Varietyand Quality

A large variety of bake-off items is essential to
maintain customer interest. The program should not be al-
lowed to degenerate into a "fad" section with a very limited
variety. Even a coffee ring which is glazed or topped in a
number Of different ways easily adds variety to the display
case. Prices should be identical whether the items are
baked or unbaked. Cut-rate prices will merely tend to
cheapen the image Of the bake-Off program.

Above all, quality must be maintained. Cheap
ingredients or haphazard preparation can quickly eliminate

any advantages gained through the bake-off.

Summary

Merchandising techniques can be employed in many
different ways to create interest in the bake-off program.

Good judgment can solve many problems which arise from the

69

"newness" of the system. The bakery department must be
given adequate attention and promoted as a major part of the
store. Variety and quality are two essentials if the prOgram

is to succeed.

CHAPTER IX

CONCLUSION

Throughout the paper various advantages and disad-
vantages of the bake-Off system have been explained. Yet
separated from each other by discussions on special aspects
of the program, they have not left a complete picture of the
relative merits of the bake-Off program. It is the intent
of this final chapter to gather together all the major ad-
vantages and disadvantages in order to make a sound judgment
and evaluation of the frozen bake-Off system. The summary
which follows shows that the frozen bake-off program is the

answer to the bakery problem.

Disadvantages

The frozen bakery method is by no means a system that
has all good points and no disadvantages. A certain invest-
ment in equipment is required and managerial supervision is
needed to make sure the program is successful. It would
take much less time and effort to stack commercial bakery on

a shelf and let it sell itself.

Transportation

The shipment of frozen bakery requires refrigeration

which is an additional eXpense. This disadvantage is somewhat
70

71

overcome by savings in transportation costs which result from
other aspects of the bake-Off program. Deliveries are only
needed two or three times a week instead of daily; smaller
shipping space is required for frozen products and they are
less fragile than fully prepared bakery goods; delivery can
be made any time during the day instead of early morning as

required by commercial bakery.

Volume Sellers

The bake-off program cannot effectively handle com-
plete bakery production. The volume sellers--white bread
and sandwich bread--must be produced by some outside method.
Commercial bread is used to supplement the bake-off systems.
This is not too grave a disadvantage because the severe
price competition in white bread has reduced profit margins
so low that it is difficult to compete in this area. White
bread can be prepared through the bake-off system, but the

volume must be limited at present.

Innovation

The major disadvantages of the bake-Off program is
its newness. There is no set way of doing things; no master
plan has yet been worked out. For those who attempt to enter
the field, there will undoubtedly be a period of trial and
error. The proponents of the program will need the patience,
the imagination, and similar qualities that innovators in

other fields have found necessary.

72

Advantages

The bake-Off program has all the advantages of a com-
plete in-store bakery. The customer can buy fresh bakery
with that "baked-at-home" taste. Throughout the store is
the magnetic aroma of fresh bakery, enticing customers to
make impulse purchases of high profit cakes and rolls. The
entire sales volume of the store should rise because of new
customers drawn to the store by the promise of home baked
goods. Although these advantages are being passed over
quickly, it does not mean that their importance is minor.
Much more could be written about the value of fresh bakery

to a supermarket.

Elimination of Disadvantages
The bake-Off system has retained the advantages of a

complete in-store bakery but has overcome the problems which
have made in-store bakeries unfeasible for most supermarkets.
The required investment has been reduced to one-fourth and
the amount of work space needed to one-third.

The major disadvantage of complete bakeries is the
serious labor difficulties which often arise. The bake-Off
program has eliminated the high priced, hard-to-find master
bakers and substituted non-technical labor. No specialists
are needed at store level. The work force has been consider-

ably reduced in size and no night crews are necessary.

Quality
Uniform quality is now available for the first time.

73

Because all products are prepared at the central plant by
master bakers, quality control is possible in every store on
every day of the year. The individual bakery departments
follow master time and temperature formulas devised at the
central plant. A master baker's experience is extended to
many stores.

Bake-Off products are even fresher than fresh bakery
because, throughout the day, they are baked as needed. Large
batches do not have to be prepared at one time--a single
danish pastry can be baked to satisfy the special wish Of a

customer.

Variety

Since almost all bakery foods can be frozen there is a
large variety available. The supermarket need never worry
about running out of a particular item because the freezer
can maintain adequate stocks of everything. The display
case will always present an inviting appearance to the cus-

tomer.

Stales

Something which has plagued the bakery industry for
many years has been the loss of profit because of items which
become stale. This is, for all intensive purposes, elimin-
ated with the bake-Off program because items are baked to
meet demand. For the first time, both peak and slack periods

can be met.

74

Profits

Handsome profits are available with the bake-Off pro-
gram because expensive labor, stales, space, and equipment
have been greatly reduced. The American consumer is in-
creasing the demand for sweet yeast products which is the
high profit portion of the bakery department. With fresh
bakery available, sales and profits should expand. The
bake-Off program allows personal contact with the customer--
one of the best selling methods possible. Phone-call orders
can be taken; customers can place orders when they begin
their grocery shopping and pick up the warm bakery when they
finish.

Related Sales

The increase in sales would be not only in the bakery
department, but in the whole store. A department which
would benefit greatly is frozen food. When customers taste
bakery items that have previously been frozen, their con-
fidence in other frozen items should greatly increase.
Frozen pies and bakery products from the frozen food case
will increase in sales. Customers can also buy frozen bake-
Off products from the bakery department to be finished at

home.

One-stOp Shoppipg
A good bakery department means better one-stop shop-

ping for the customer. It puts the store in a better

position to increase beginning-of-the-week sales. These are

75

days when the customer purchases higher margin items. Ten
o'clock coffee breaks would be a huge success with fresh

bakery for all the customers.

Store Image
A good bakery department will aid in presenting a

store image of quality and customer service. There is also
something about a bakery department that gives a store a
"home-town" flavor. Bakery specials can be featured in store
advertising to give an image Of quality and service to the

entire store.

A Bakery in Every Store
The final result of all the discussion of advantages

 

is that now almost every store can have a bakery. Those
stores doing 325,000 business a week are definitely large
enough to have a complete bake-off program, and those whose
volume does not reach $25,000 can use a modified version.
Sales can even be extended to restaurants and institutions

who have need of bakery products in their every day.

Summary

The bake-Off system utilizes the full value of the
bakery department-~it combines the advantages of both fresh
and commercial bakery and at the same time eliminates the
major drawbacks of each. The in-store finishing of frozen

bakery is the answer to the bakery problem.

APPENDIX I
DOROTHY MURIEL'S

Dorothy Muriel's, a multiple-unit retail bakery, is
currently supplying eight supermarkets with frozen bakery

items which are baked and finished on the premises.

Background

Dorothy Muriel's is well known to the residents of
the Greater Boston area. The company was started in the
early 1920's and produces a complete line of tOp-quality
baked foods. Operations have always been based on the premise
of producing the best quality products that can be made.
Dorothy Muriel's now operates 52 of its own bakeries and

services 44 independent supermarkets.1

Entry into Supermarkets

Dorothy Muriel's did not rush into supermarkets be-
cause its business had been built on quality and, initially,
quality was not identified with the supermarket. Around 1955,
Ralph Tedeschi, who had a supermarket well outside Dorothy

Muriel's trading area, wanted their products. Dorothy

 

1Len Corlin, "In-Store Bake-Offs Add Extra Dimension
to Supermarket Bakery Sales," Bakipg Industry, February 4,
1961, p. 50. .

76

77

Muriel's agreed to furnish Tedeschi with fresh bakery and the
venture proved very successful for both parties. As a result
of this success, Dorothy Muriel's turned to a self-service
line of bakery in an attempt to Obtain greater sales through
supermarkets. By 1960, 35 per cent of Dorothy Muriel's
gross sales were in the supermarkets.2
Ralph Tedeschi had experienced very good success with
the baking of frozen pies and wished to expand the bake-Off
Operation to include pasteries. In 1959, he contacted

Dorothy Muriel's to see if they would furnish him with a

variety Of frozen, raw bakery products.
Frozen Bakery

Dorothy Muriel's management started exploring the
possibility of selling an expanded line of baked items to
supermarkets for bake-Off. They also examined the possi-
bility Of selling in this fashion through their own retail
outlets.

A pilot installation was made at a Dorothy Muriel
shOp at 190 Harvard Avenue, Allston, Massachusetts, where a
two-deck electric oven, freezer, and retarder were installed.3
This required a certain financial outlay, but the reward was
a noticable increase in sales.

In the meantime, other supermarkets who were receiving

 

2Corlin, Baking Industry, p. 53.

3Berkin, p. 35.

78

the packaged type goods from Dorothy Muriel's also wanted to

buy unbaked goods for bake-off in their stores.

Erpansion

The wholesale sales department, headed by Kingston L.
Howard, becoming increasingly aware of the demand for a
frozen bakery line, contacted New England Frozen Food Distri-
butors, Inc. and a plan was worked out to sell to the
supermarkets.

Although the central bakery had extensive freezing
facilities of the conventional sort, Dorothy Muriel's added
a blast freezer capable Of handling 2,500 pounds over 12
hours at a temperature of 20 to 25 degrees below freezing.

WOrking with Tedeschi's supermarkets, Dorothy Muriel's
develOped the extensive line of bake-Off items shown in

Table 1.4
Presentigperations

Orders are received a week in advance, made up, and
placed in the blast freezer overnight. They are then trans-
ferred to a holding freezer where they are held at zero to
five degrees below. The bulk packaging Operation is per-
formed when convenient, i.e., when a sufficient force of men
is free to do the job. When this is completed, the raw
baked goods are returned to the holding box until picked

up by the distributor's insulated trucks.

 

4Berkin, p. 35.

79

TABLE 1

DOROTHY MURIEL'S BAKE-OFF PRODUCTS

W

Individual danish and buns
Orange meltaways
Orange pineapple
Cinnamon twists
Assorted danish
Sweet buns
Old fash. coffee buns
Raisin scones

Rings, twirls, and clusters
Almond danish ring
Plain danish ring
Butternut twirls
Streussel coffee cake
Pecan sticky buns

Cup cakes and cakes
Large chocolate cups
Large yellow cups
Small yellow cups
2/7" yellow layers
Chocolate cake
Yellow cake

Cookies and brownies
Filled cookies
Butterscotch chip
Chocolate chip
Caramel chip
Almond butter
Molasses
Butter wafers
Sugar cookies
Pan brownies

Turnovers
Puff turnovers
Apple turnovers

Muffins
Bran muffins
Corn muffins

Shells and biscuits
Puff shells
Shortcake biscuits

-_..._

Frozen
11

Frozen
11

Frozen
11

Frozen
11

Frozen
11

Frozen
ii

unbaked

unbaked
11

unbaked
11

unbaked
11

Not iced
Not iced
Finished
Not iced
Not iced
Not iced
Finished

Not iced
11'

Finished
11

11
11
11
11
11
11
11

Not filled

Finished
Finished

Not filled

Finished

80

The frozen goods are then delivered to the super-
markets. Figure 1 shows the bakery department of the Tedeschi

5

supermarket which uses the bake-off system.

Training

Education, too, is required for the supermarket per-
sonnel who are to Operate the bake-Off facilities within the
stores. Dorothy Muriel Offers its own facilities to train
these people. The supermarket bake-off personnel are brought
to the central bakery where they are instructed for two days
in the handling of retarders, proof boxes, and ovens. They
are also taken to the Dorothy Muriel retail outlet in Alls-
ton where they can actually Observe bake-Off Operations as

conducted in a store.6

Fresh Line

Because the bake-Off Operation is too limited, Dorothy
Muriel's advocates that the supermarket also stock a line
of fresh bakery to provide full variety. By having a bake-
Off operation in conjunction with a fresh line, the super-
market receives all the major advantages of a complete on-
premise bakery at a considerable saving in investment and

floor space.

 

5"It's Really a Woman's WOrld," Progressive Grocer,
xxxx (May, 1961), p. 54.

6Berkin, p. 37.

 

 

 

 

Bench

 

db

Freezer

 

Supplies

Proof
Box 1

Dairy Department

 

 

 

 

 

11
an
as
1130
1121
m
(D 0.)
.(D O
I A BENCH Cd «-1
O >
I t
' :1" ref;
Snack Bar :g ‘ ’
Storage

 

 

 

 

Ye Olde
Kitchen
' Bakery

 

 

 

Baked
Foods

 

 

E

 

Fig.

1.--Tedeschi Bakery Department

 

 

Quality

Dorothy Muriel's has always stressed quality and
bases its production and merchandising policies on this con-
cept. As a result, they require the supermarkets who sell

their bake-off items to maintain the same high standards of
quality.7

7Berkin, p. 38.

APPENDIX II
SPECIFIC BAKE-OFF EQUIPMENT COSTS

Specific costs for the ovens and freezers used in the
bake-off system vary considerably depending upon size and
type. Some examples are given below to show the range of
equipment available. Other items are more standard and a
complete listing of all equipment necessary for a bake-off
system in stores which have a bakery volume Of $1,500 to

$2,500 a week is included.
Ovens

The Dutch Boy oven, described in Chapter VI, costs
approximately 33,000. It has revolving shelves and can be
fired by either direct gas, indirect gas, electricity, or
Oil heat. It is a very "professional" type oven and is
equipped to provide baking facilities for stores doing a
weekly bakery volume of $4,000 and up. It also comes in
various sizes that can be chosen to match bakery volume.

The oven used by Daffodil Farm Bakery units is a two-
drawer Hotpoint oven. The two shelves (drawers) do not
revolve. There are many types of ovens in this same cate-
gory. If they are fired by electricity, the price is about
$1,700 and if they use gas the cost is between $800 and 3900.

83

Q1

This type Of oven is more suitable for bakery volumes between

$1,500 and $2,500 per week.

Freezera

Self-contained freezers are produced by several
companies. These usually have a separate section that can
be used as a proofer. The temperature can be varied between
-40° F. to 120° F. Costs for a 40 cubic foot chest freezer
are between $500 and 31,500. As size increases so does
price. The 40 cubic foot Glenco freezer is 31,500 while the
56 cubic foot Glenco freezer is 32,000. A freezer of 40
cubic feet is sufficient for bakery volumes up to $2,000
per week.

If it is possible to use a walk-in freezer in con-
junction with other frozen fOOd departments, cost savings
are realized. A separate proofer is needed with walk-in
freezers. Proofers begin at $350 and a 35 cubic foot
proofer ($350) is sufficient for bakery volumes up to $2,500

weekly.

Costs for Model System

The following data presents costs of equipment for a

bakery volume of $1,500 to $2,500 weekly.

85

Major Equipment for Bake-Off System

5 Pan Gas Fired Oven - Stainless Steel Front
33 x 47 x 57 130,000 BTU per hour. 110 volt
3/4 H.P. Motor - Pipe legs
Approximate freight 560%

20 Pan Automatic Electric Proof Box - Aluminized
Steel — 30 x 30 x 81 Pipe legs. 110 Volt,
1,000 Watt

Approximate freight 395#

38 Pan Freezer Box - Stainless Steel Finish - 34
x 27 x 75. 110 volt - 1/5 H.P. Motor
Approximate freight 477#

20 Quart Bench type Cake Machine and Accessories
16 x 25 x 50. 110 Volt - 1/5 H.P. Motor
Approximate freight 240%

Combination Doughnut Cutter and Fryer - Chrome
Finish - 18 x 22 x 30 Table Model - 220 Volt
4,400 Watt

Approximate freight 88%

3 Compartment 14 Gauge Stainless Steel Sink with
splash back and drain board - each compartment
20 x 24 x 14 - drain board 24 x 30 - overall 24
x 90 x 34 - Pipe legs - 110 Volt heating ele-
ment and control one section

Approximate freight 260#

15 Pan Aluminum Pan Racks - on casters - Open all

sides - 31 x 19 x 64 $54.00 each
Apprximate freight 35# each

24 Pan Galvanized Finished Goods Storage Box -
22 x 30 x 75 - on casters
Approximate freight 200#

Masonite WOrk Tables - 1" thick tOp - pipe legs -

24 x 60 x 30 1-18 x 18 x 6 drawer per table -
1 shelf per table - $130.00 each
FOB Omaha, Nebraska, 135# each

4 Shelf Show Case - Formica Finish - 75 x 30 x 50

110 Volt Fluorescent light
FOB Griswold, Iowa, 300#

2 Shelf Show Case - Formica Finish - 75 x 30 x 38

110 VOlt Fluorescent light
FOB Griswold, Iowa, 300#

3737.00
15.00

3310.00
18.50

$413.00
19.00

3500.00
11.00

$289.00
5.50

3330.40
19.00

$108.00
8.00

$121.00

12.50

$390.00

$335.00

$315.00

J 1
O\

1 - 3 Shelf Refrigerated Show Case - White Enamel
Finish 43 x 55 x 50 l H.P. Motor - 110 Volt

 

Fluorescent light $846.00
Approximate freight, New York, 615# 31.00
1 - Bismark Filler - Echo - hand operated - table
model $29.75
FOB Omaha, Nebraska, 15%
1 - 2 Plate Bakers Bench Scale with beam, weights
and scoop $20.85
FOB Omaha, Nebraska, 15# __
Total 34,804.50
Miscellaneous Tools and Equipment
FOB Omaha, Nebraska
1 - #705 Counter Brush $2.80
1 - Round Peko Grease Brush 2.28
1 - Gong Scrub Brush .95
1 - #3 Can Opener 9.18
3 - Scotch Brite Scouring Pad 3.60 ea. 1.80
4 - Jesse Oven Pads .60 ea. 2.40
2 - 5%" Frosting Knives 1.76 ea. 5.52
1 - 6" Pallette Knife 1.93
2 - Aluminum Measures 5.80 ea. 11.60
1 - Revolving Cake Decorating Stand 8.35
2 - Standard Pastry Bag Couplings .54 ea. 1.08
2 - 14" Lifetime Pastry Bags 1.58 ea. 3.16
1 doz - Assorted Brass Decorating Tubes .15 ea. 1.80
2 - #3 Aluminum Sc00ps 3.95 ea. 7.90
2 - Heavy Plastic Bowl Scrapers .14 ea. .28
2 - X495 Bench Scrapers 1.19 ea. 2.38
36 - #30 12 x 18 Tin Display Pans 11.75 doz. 35.25
18 - #04 18 x 36 Tin Display Pans 20.00 doz. 30.00
12 - #125 9 x 26 Tin Display Pans 15.00 doz. 15.00
48 - #5016 Ekco Aluminum Bun Pans 4.52 ea. 216.96
12 - #043 Cup Cake Frames 1.45 ea. 17.40
12 - 6" Round Layer Cake Pans 3.90 doz. 3.90
12 - 7" Round Layer Cake Pans 4.70 doz. 4.70
12 - 8" Round Layer Cake Pans 5.50 doz. 5.50
12 - 9" Rbund.Inyer Cake Pans 6.00 doz. 6.00
1 gr. 6" Paper Cake Pan Liners 1.10
1 gr. 7" Paper Cake Pan Liners 1.45
1 gr. 8" Paper Cake Pan Liners 2.05
1 gr. 9" Paper Cake Pan Liners 2.35
1 gr. Ripco Silicone Treated Bun Pan Liners 12.00
1 gr. #15OX Cup Cake Pan Liners .45
500 - 8" Paper Cake Laces . 3.90
500 - 10" Paper Cake Laces 5.94

500 - 12" Paper Cake Laces

Total

anti-H

U)
\1

CD 50 Portable Aluminum Cabinets - 11 pan
fipacity $89.75 each
1; wide - 28" deep - 30%" high
25¥ FOB Pennsylvania

Portable Cabinet Dollies - on 4" casters $19.00 each
22" x 29" inside
FOB Omaha, Nebraska

CD 3 Aluminum Cabinets on casters - 35 pan
Wgacit $188.50 each
12" wide - 28" deep - 83" high
55% FOB Pennsylvania

BIBLIOGRAPHY

Books
Gortner, Willis A., Erdman, Frederick S., and Masterman,

Nancy K. Principles of Food Freezigg. New York:
John Wiley and Sons, Inc., 1950.

Slater, Charles C. Economic Chan es in Bakin Industr\.
Chicago: American Bakery Association, 1953.

Articles and_£eriodicals

”Are You in on In-Store Baking?," Super Market Merchandisi ',
XXVI (December, 1961), 47-51.

"Baked Foods: Super Market Profit Sleeper?," Progressive
Grocer, xxxx (May, 1961), 53-57.

"Baked Goods," Chain Store A e, executive edition, XXXVII
(July, 1951WT'75-32.

"Baked Goods Sections Increase Store Traffic," Chain Sto e
Age, executive edition, XXXV (October, 19595. 153-161.
Berkin, Harold H. "Latest Trend: Supers Buy Frozen Items...

Do Bake-Off and Finishing Themselves," Bakers Weeklx,
January 23, 1961, 35-38.

 

Broeg, W. E. ”Why On-Premise Baking Is Becoming a Byword,”
Baking Industrz, September 17, 1960, 104-107.

Coburn, Robert. "Super Market Bakery Department Can Boost
Bagging Profit Margin," Yankee Grocer, April 10, 1961,
27.

Corlin, Len. "In-Store Bake-Offs Add Extra Dimension to
Supermarket Bakery Sales," Baking Industry, February
4, 1961, 50.

"Do It Yburself Research,” Progressive Grocer, XXXX (November,
1961). 50-52.

Grenier, Fred J. "Baked Goods Location Can Raise Total
Sales," Yankee Grocer, April 10, 1961, 30.

h
30

(.0
KO

Howard, Kingston L. "Frozen, Raw Product Bake-Off Programs
Offer Vast Distributor Opportunity," Quick Frozen
Foods, XXIII (November, 1960), 59-62.

"In-Store Baking Is Not New," Baking Industry, September 17,

"In-Store Bake-Off from Frozen Raw Goods,” Quick Frozen
Foods, XXIII (December, 1960), 89-90.

"In-Store Manufacturing Bakery," NARGUS Bulletin, XLVIII
(June, 1961), 114-118.

"It's Really a Woman's World,” Progressive GrocerI XXXX
I’Iay , 1961) y 540

 

Kolovson, George. "In-Store Baking Increases Sales Because
Ité'Makes 'Em Hungry,'" ankee Grocer, April 10,
19 1, 31.

"Like Mother Used to Bake," Quick Frozen Foods, XXIII
. (December, 1960), 72.

”Liquified Gases-New Nitrogen System Aids LTL Delivery,"
Quick Frozen Foods, XXIII (August, 1960), 128-30.

Porter, Sylvia. "Retailing Revolution Analyzed by EXpert,"
Green Bay Press Gazette, September 26, 1961, 30.

Raubvogel, Seymour. "In-Store Bakery Equipment,” Yankee
Grocer, April 10, 1961, 28.

"Sell It Today," Chain Store Age, XXXIII (October, 1957), 141.
Wallace, Earl E. "In-Store Baking Can Rejuvenate Department,"
Yankee Grocer, April 10, 1961, 27.

Reports

American Institute of Baking. The Freezing of Bakery Foods.
A report prepared by the American Institute of
Baking. Chicago: American Institute of Baking, 1961.

American Institute of Baking. Special Bulletin Number 22.

A report prepared by the American Institute of
Baking. Chicago: American Institute of Baking, 1961.

The C. Schmidt Company. Freezing Bakery Foods. A report
prepared by The C. Schmidt Company. Cincinnati: The
C. Schmidt Company, 1962.

90

Super Market Institute. The Supep Mapket Industry Speaks,

126 . A report prepared by Super Market Industry,
Inc. Chicago: Super Market Institute, 1960.

Unpublished Material

Botcher, Olive Margaret. "The Comparison of Quality of
Plain Cakes Prepared from Dry and Frozen Mixes."
Unpublished Master's thesis, School of Agriculture,
Michigan State College, 1950.

Chapman, Bruce E. "A Comprehensive Study of On-Premise
Bakery Operations in Super Markets." Unpublished
Master's thesis, School of Business and Public Service,
Michigan State University, 1961.

Lach, Joseph L. "The Return of the.Neighborhood Bakery."
Unpublished report for the Department of Marketing
and Transportation Administration, Michigan State
University, 1959.

Wuebker, Dennis. "Desirability of Investing Capital in On-
the-Premise Bakeries." Unpublished report for the
Food Distribution Program, Department of Marketing
and Transportation Administration, Michigan State
University, 1959.

Otggr Sources
Personal interview with Clarence E. Denham. Continental
Baking Company, East Lansing, Michigan, January 27,
1962.

Personal interview with Ernest Meyers, Red Owl Stores, Inc.,
Green Bay, Wisconsin, December 28, 1961.

Personal interview with Graybon Young, head baker, Hill's
Bakery, Detroit, Michigan, March 20, 1962.

Personal interview with‘S. A. Jansen, Red Owl Stores, Inc.,
October 29, 1961.

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