bake - April 2012 - 21

Yet, based on a consensus of retail bakery owners across the country, they offer one valuable word of advice: Don’t. “We typically change prices twice a year,” says Lincoln Kretchmar, president of Kretchmar’s Bakery in the western Pennsylvania borough of Beaver, about 30 miles from Pittsburgh. “Before cake season (spring), we will raise prices on all of our cake items. In the fall, we do an increase on everything else. In general, our price increases are no more than 2-3%. However, in the last few years, starting in 2008, we’ve had to increase prices up to 10% in one year to account for spikes in major ingredients such as flour.” Rubin recalls 2008 as an “epic year” for commodity price spikes — “Price increases that I hope will always be historic highs, and that still seem surreal.” From January 2002 to June 2008, according to the US Department of Agriculture, the index of monthly

average world prices for wheat, rice, corn and soybeans rose a collective 226%, compared with 130% for the overall food commodity index. This perfect storm triggered an unprecedented climb in the cost of many bakery ingredients — a harsh reality check from which retailers are still stinging. Still, City Bakery’s owner does not believe rising ingredient costs should dictate his price. “I
Above: Retailers such as The City Bakery leverage their premium brand image into a competitive advantage.

Maury Rubin of The City Bakery says rising ingredient costs should not dictate prices. He bases his retail prices almost always on the market.

don’t recall ever increasing the price of a single item based on a cost increase,” Rubin says. “Rising costs are a punch in the gut and we lose margin, but we absorb it. When I raise prices, it’s almost always based on the market, and my feeling about the moment in the market.”

Rubin will, however, remove an item from the shelves when its ingredient costs become untenable. Then he will explain to customers why. “They may say, ‘But I love that pastry, and I’d pay more for it’ — which is nice to hear, but I’m never convinced.” Keri Bonner of the Cupcake Girls Dessert Company in

bakemag.com | APR 2012 > 21



http://www.bakemag.com

bake - April 2012

Table of Contents for the Digital Edition of bake - April 2012

bake - April 2012
Editorial - The pricing issue: Lessons from the City
Table of Contents
News Bites - Sprinkles Banks on Cupcake ATM
News Bites - Guild Offers Baking Series
News Bites - ADM Milling Names President
News Bites - Bruegger’s Lands in Pittsburgh
News Bites - DuPont Addresses Guar Shortage
News Bites - AIB Appoints Latin America Director
News Bites - Puratos Unveils New Website
Management - Employment Policies
Tax Tips - SIMPLE Retirement Planning
Labor Front - Staffing Shifts
Legislation - Compliance Advantages
Ingredients - Versatility of Honey
Price Puzzle
Maximum Management
Tiered Pricing
Choosing a Signature Item
Fabulous Flatbreads
Chain News
World-Class Distinction
Extreme Retail Cakes
Cost-Effective Production
Cafe - The French Connection
Products
Showcase
Classifieds
bake - April 2012 - bake - April 2012
bake - April 2012 - 2
bake - April 2012 - Editorial - The pricing issue: Lessons from the City
bake - April 2012 - 4
bake - April 2012 - Table of Contents
bake - April 2012 - News Bites - Bruegger’s Lands in Pittsburgh
bake - April 2012 - 7
bake - April 2012 - News Bites - Puratos Unveils New Website
bake - April 2012 - 9
bake - April 2012 - Management - Employment Policies
bake - April 2012 - 11
bake - April 2012 - Tax Tips - SIMPLE Retirement Planning
bake - April 2012 - Labor Front - Staffing Shifts
bake - April 2012 - 14
bake - April 2012 - 15
bake - April 2012 - Legislation - Compliance Advantages
bake - April 2012 - 17
bake - April 2012 - Ingredients - Versatility of Honey
bake - April 2012 - 19
bake - April 2012 - Price Puzzle
bake - April 2012 - 21
bake - April 2012 - 22
bake - April 2012 - 23
bake - April 2012 - 24
bake - April 2012 - 25
bake - April 2012 - 26
bake - April 2012 - Maximum Management
bake - April 2012 - 28
bake - April 2012 - 29
bake - April 2012 - 30
bake - April 2012 - Tiered Pricing
bake - April 2012 - 32
bake - April 2012 - 33
bake - April 2012 - Choosing a Signature Item
bake - April 2012 - 35
bake - April 2012 - 36
bake - April 2012 - 37
bake - April 2012 - Fabulous Flatbreads
bake - April 2012 - 39
bake - April 2012 - 40
bake - April 2012 - 41
bake - April 2012 - Chain News
bake - April 2012 - 43
bake - April 2012 - 44
bake - April 2012 - 45
bake - April 2012 - World-Class Distinction
bake - April 2012 - 47
bake - April 2012 - 48
bake - April 2012 - 49
bake - April 2012 - Extreme Retail Cakes
bake - April 2012 - 51
bake - April 2012 - 52
bake - April 2012 - 53
bake - April 2012 - Cost-Effective Production
bake - April 2012 - 55
bake - April 2012 - 56
bake - April 2012 - 57
bake - April 2012 - Cafe - The French Connection
bake - April 2012 - 59
bake - April 2012 - 60
bake - April 2012 - 61
bake - April 2012 - Products
bake - April 2012 - 63
bake - April 2012 - Showcase
bake - April 2012 - 65
bake - April 2012 - Classifieds
bake - April 2012 - 67
bake - April 2012 - 68
https://digital.bakemag.com/sosland/bake/bake-march-april-2024
https://digital.bakemag.com/sosland/bake/bake-january-february-2024
https://digital.bakemag.com/sosland/bake/bake-special-report-november-2023
https://www.nxtbook.com/sosland/bake/bake-november-december-2023
https://digital.bakemag.com/sosland/bake/bake-september-october-2023
https://digital.bakemag.com/sosland/bake/bake-july-august-2023
https://digital.bakemag.com/sosland/bake/bake-special-report-july-2023
https://digital.bakemag.com/sosland/bake/bake-redbook-2023
https://digital.bakemag.com/sosland/bake/bake-special-report-may-2023
https://digital.bakemag.com/sosland/bake/bake-may-june-2023
https://digital.bakemag.com/sosland/bake/bake-march-april-2023
https://digital.bakemag.com/sosland/bake/bake-special-report-january-2023
https://digital.bakemag.com/sosland/bake/bake-january-february-2023
https://digital.bakemag.com/sosland/bake/bake-november-december-2022
https://digital.bakemag.com/sosland/bake/bake-special-report-november-2022
https://digital.bakemag.com/sosland/bake/bake-september-october-2022
https://digital.bakemag.com/sosland/bake/bake-special-report-july-2022
https://digital.bakemag.com/sosland/bake/bake-july-aug-2022
https://digital.bakemag.com/sosland/bake/bake-redbook-2022
https://digital.bakemag.com/sosland/bake/bake-special-report-may-2022
https://digital.bakemag.com/sosland/bake/bake-may-june-2022
https://digital.bakemag.com/sosland/bake/bake-march-april-2022
https://digital.bakemag.com/sosland/bake/bake-january-february-2022
https://digital.bakemag.com/sosland/bake/bake-special-report-january-2022
https://digital.bakemag.com/sosland/bake/bake-november-december-2021
https://digital.bakemag.com/sosland/bake/bake-special-report-november-2021
https://digital.bakemag.com/sosland/bake/bake-september-october-2021
https://digital.bakemag.com/sosland/bake/bake-july-august-2021
https://digital.bakemag.com/sosland/bake/bake-redbook-2021
https://digital.bakemag.com/sosland/bake/bake-july-2021
https://digital.bakemag.com/sosland/bake/bake-may-june-2021
https://digital.bakemag.com/sosland/bake/bake-special-report-may-june-2021
https://digital.bakemag.com/sosland/bake/bake-march-april-2021
https://digital.bakemag.com/sosland/bake/bake-january-february-2021
https://digital.bakemag.com/sosland/bake/2021_01_01
https://digital.bakemag.com/sosland/bake/2020_12_01
https://digital.bakemag.com/sosland/bake/2020_11_01
https://digital.bakemag.com/sosland/bake/2020_09_01
https://digital.bakemag.com/sosland/bake/2020_08_01
https://digital.bakemag.com/sosland/bake/2020_07_02
https://digital.bakemag.com/sosland/bake/2020_07_01
https://digital.bakemag.com/sosland/bake/2020_06_01
https://digital.bakemag.com/sosland/bake/2020_05_01
https://digital.bakemag.com/sosland/bake/2020_04_01
https://digital.bakemag.com/sosland/bake/2020_02_01
https://digital.bakemag.com/sosland/bake/2020_01_01
https://digital.bakemag.com/sosland/bake/2019_12_01
https://digital.bakemag.com/sosland/bake/2019_11_01
https://digital.bakemag.com/sosland/bake/2019_10_01
https://digital.bakemag.com/sosland/bake/2019_09_01
https://digital.bakemag.com/sosland/bake/2019_08_01
https://digital.bakemag.com/sosland/bake/2019_07_01
https://digital.bakemag.com/sosland/bake/2019_06_01
https://digital.bakemag.com/sosland/bake/2019_05_01
https://digital.bakemag.com/sosland/bake/2019_04_01
http://digital.bakemag.com/sosland/bake/2018_07_02
https://digital.bakemag.com/sosland/bake/2019_03_01
https://digital.bakemag.com/sosland/bake/2019_02_01
https://digital.bakemag.com/sosland/bake/2019_01_01
http://digital.bakemag.com/sosland/bake/2018_12_01
http://digital.bakemag.com/sosland/bake/2018_11_01
http://digital.bakemag.com/sosland/bake/2018_10_01
http://digital.bakemag.com/sosland/bake/2018_09_01
http://digital.bakemag.com/sosland/bake/2018_08_01
http://digital.bakemag.com/sosland/bake/2018_07_01
http://digital.bakemag.com/sosland/bake/2018_06_01
http://digital.bakemag.com/sosland/bake/2018_05_01
http://digital.bakemag.com/sosland/bake/2018_04_01
http://digital.bakemag.com/sosland/bake/2018_03_01
http://digital.bakemag.com/sosland/bake/2018_02_01
http://digital.bakemag.com/sosland/bake/2018_01_01
http://digital.bakemag.com/sosland/bake/2017_12_01
http://digital.bakemag.com/sosland/bake/2017_11_01
http://digital.bakemag.com/sosland/bake/2017_10_01
http://digital.bakemag.com/sosland/bake/2017_09_01
http://digital.bakemag.com/sosland/bake/2017_08_01
http://digital.bakemag.com/sosland/bake/2017_07_01
http://digital.bakemag.com/sosland/bake/2017_06_01
http://digital.bakemag.com/sosland/bake/2017_05_01
http://digital.bakemag.com/sosland/bake/2017_04_01
http://digital.bakemag.com/sosland/bake/2017_03_01
http://digital.bakemag.com/sosland/bake/2017_02_01
http://digital.bakemag.com/sosland/bake/2017_01_01
http://digital.bakemag.com/sosland/bake/2016_12_01
http://digital.bakemag.com/sosland/bake/2016_11_01
http://digital.bakemag.com/sosland/bake/2016_10_01
http://digital.bakemag.com/sosland/bake/2016_09_01
http://digital.bakemag.com/sosland/bake/2016_08_01
http://digital.bakemag.com/sosland/bake/2016_07_01
http://digital.bakemag.com/sosland/bake/2016_06_01
http://digital.bakemag.com/sosland/bake/2016_05_01
http://digital.bakemag.com/sosland/bake/2016_04_01
http://digital.bakemag.com/sosland/bake/2016_03_01
http://digital.bakemag.com/sosland/bake/2016_02_01
http://digital.bakemag.com/sosland/bake/2016_01_01
http://digital.bakemag.com/sosland/bake/2015_12_01
http://digital.bakemag.com/sosland/bake/2015_10_01
http://digital.bakemag.com/sosland/bake/2015_09_01
http://digital.bakemag.com/sosland/bake/2015_08_01
http://digital.bakemag.com/sosland/bake/2015_07_01
http://digital.bakemag.com/sosland/bake/2015_06_01
http://digital.bakemag.com/sosland/bake/2015_05_01
https://www.nxtbook.com/sosland/bake/2015_04_01
http://digital.bakemag.com/sosland/bake/2015_03_01
https://www.nxtbook.com/sosland/bake/2015_02_01
https://www.nxtbook.com/sosland/bake/2015_01_01
https://www.nxtbook.com/sosland/bake/2014_12_01
https://www.nxtbook.com/sosland/bake/2014_10_01
https://www.nxtbook.com/sosland/bake/2014_09_01
https://www.nxtbook.com/sosland/bake/2014_08_01
https://www.nxtbook.com/sosland/bake/2014_07_01
https://www.nxtbook.com/sosland/bake/2014_06_01
https://www.nxtbook.com/sosland/bake/2014_05_01
https://www.nxtbook.com/sosland/bake/2014_04_01
https://www.nxtbook.com/sosland/bake/2014_03_01
https://www.nxtbook.com/sosland/bake/2014_02_01
https://www.nxtbook.com/sosland/bake/2014_01_01
https://www.nxtbook.com/sosland/bake/2013_11_01
https://www.nxtbook.com/sosland/bake/2013_11_02
https://www.nxtbook.com/sosland/bake/2013_10_01
https://www.nxtbook.com/sosland/bake/2013_09_01
https://www.nxtbook.com/sosland/bake/2013_08_01
https://www.nxtbook.com/sosland/bake/2013_07_01
http://digital.bakemag.com/sosland/bake/2013_06_01
https://www.nxtbook.com/sosland/bake/2013_05_01
https://www.nxtbook.com/sosland/bake/2013_04_01
https://www.nxtbook.com/sosland/bake/2013_03_01
https://www.nxtbook.com/sosland/bake/2013_02_01
https://www.nxtbook.com/sosland/bake/2013_01_01
https://www.nxtbook.com/sosland/bake/2012_11_01
https://www.nxtbook.com/sosland/bake/2012_10_01
https://www.nxtbook.com/sosland/bake/2012_09_01
https://www.nxtbook.com/sosland/bake/2012_08_01
https://www.nxtbook.com/sosland/bake/2012_07_01
https://www.nxtbook.com/sosland/bake/2012_06_01
https://www.nxtbook.com/sosland/bake/2012_05_01
https://www.nxtbook.com/sosland/bake/2012_04_01
https://www.nxtbook.com/sosland/bake/2012_03_01
https://www.nxtbook.com/sosland/bake/2012_02_01
https://www.nxtbook.com/sosland/bake/2012_01_01
https://www.nxtbookmedia.com