The cost of living crisis has increased the prices of everything from fuel and electricity to basic ingredients like butter and flour.
Many of these increases are now beginning to impact locals, including rising shopping bill totals and price increases on our favourite cakes from Tayside and Fife bakeries.
Despite the growing spike in the cost of ingredients, bakeries have been trying to swallow as much of the increases as possible with many of them now struggling with the cost of goods.
Scottish Bakers, a membership organisation that supports the bakery trade throughout the country, recently shared their findings on the average increases across all major input costs over the past 12 months.
These, of course, will affect bakeries massively and, ultimately, threaten their survival.
- Electricity – 214%
- Gas – 207%
- General insurance – 83%
- Ingredients – 41%
- Motor fuel – 44%
They are also facing widespread recruitment challenges.
Never faced anything like it
One business owner who is concerned about increasing his prices and the cost of living crisis impacting his livelihood is Mark Robb.
The 59-year-old has owned JM Bakery in Carnoustie for more than 15 years and says the situation is “very difficult”.
“Cost of living has increased prices of ingredients and energy and there has been a rise in labour cost due to that,” he said.
Prices for ingredients such as flour have increased by 15% while others such as fat have surged in the range of 50-100%.
Mark has two other bakeries in his business portfolio, which are based in Monifieth and Arbroath, and has a total of 28 staff across all the three premises.
Trying to look after his customers, he has only increased the prices of their goods by 10% for now.
Mark said: “We have to make some difficult decisions.
“Our business could become unviable if costs increase much more.”
JM Bakery’s was launched in the 1950s and Mark says has never faced anything like the current struggles in the 15 years he’s owned the brand.
However, without the loyally of their customers, Mark notes that things could have been much worse for his business.
Unbelievable running costs
Carol Watson, 35, and business partner Rebecca Greenhorn, 35, face similar issues at their bakery and café Wee Vegan Bakery in Dunfermline.
Opening in February this year, the pair have faced struggles with their electricity providers, and in the last month and a half were were hit with an electric bill priced at more than £700.
“How is a small business meant to survive with that?,” said Carol.
“If I didn’t have God, I would be absolutely terrified. I don’t know how it’s going to work but I’ve got faith.”
Being an entirely vegan bakery means the price of ingredients for the duo are already higher than average baked goods with vegan butter priced at £1 more expensive than regular butter via their wholesalers.
Prices for raw ingredients such as sunflower oil were £3.30 for a five-litre bottle when Carol and Rebecca first opened their bakery. This has now increased to £8 a bottle.
In addition to their café, the pair also offer and prepare wholesale orders, and despite having a minimum order and charging £3.99 for deliveries, are unable to cover the fuel cost with current prices.
Electricity bills doubled
Karen Murray, 60, owner and now director of Mclaren’s The Bakers in Forfar, is unsure of what the future holds for the business but is hopeful they will pull through.
She said: “The cost of living makes things quite difficult because everything is going up all the time.
“There isn’t one thing that hasn’t gone up in cost.
“We try to keep our prices fair but it does get challenging.”
With their electricity bill usually costing £2,500 a month, the price has now doubled to £5,000 and is hitting them hard with their business being almost entirely electric powered.
Karen added: “You just have to take each day as it comes.
“I hope the future gets better and we get through it.
“We have been through Covid and managed, so hopefully we can get through this.”
Conversation