The need for further automation is on high alert, creating an environment where retail bakeries are expanding channels into more wholesale business.

Nearly 20% of retail bakeries are addressing the industry skills shortage by increasing automation, according to the most recent State of the Retail Baking Industry Report conducted by Cypress Research for Sosland Publishing.

For many retail and wholesale bakeries, the push for improved technology is leading to a greater reliance on online ordering and website marketing. Also, many bakeries are using technology and packaging innovations to improve their customer service.

Bakeries are answering this call for higher quality options. In Kansas City, Kansas, Farm to Market Bread Co. blossomed over three decades into a brand that is widely known and loved by consumers throughout the region. “Our frozen distribution side is expanding. That is our biggest growth area now,” said John Friend, president of Farm to Market Bread Co. “If you do it right, frozen makes a lot of sense.”

H&H Bagels is now expanding outside of the tri-state area for the first time, opening new company-owned and franchised locations in Florida, California, Washington, D.C., Virginia, Illinois, and Connecticut. The bagel shop currently operates five locations in New York City.

Wildly successful as a gourmet donut shop, Blue Star has seven locations across the West Coast. The pandemic induced a pivot in the business plan to focus on wholesale to grocery that has led to their products being carried at more than 20 retail outlets with more in the works. Blue Star has demonstrated its ability to adapt to e-commerce as retail rapidly evolves.

Quality remains an issue that is paramount to bakery shoppers. A number of moves have bolstered efforts by bakery companies to enhance their product manufacturing and distribution. Puratos US is expanding its West Coast operations with two key investments in the Los Angeles region: a new manufacturing line at its Rancho Dominguez, California, facility and a planned relocation to a new warehouse and distribution facility in Gardena, California.

Automation can bring several benefits to smaller wholesale/retail bakery operations, according to Sonia Bal, director of global marketing, Unifiller Systems. Increased efficiency is one key benefit. Automation can streamline various processes in a bakery, such as ingredient handling, mixing, portioning, and depositing. By automating these tasks, bakeries can achieve higher production rates, reduce labor requirements, and optimize their overall operational efficiency.

Ashley Robertson, director, global marketing, Corbion, Lenexa, KS, points out that changes are happening that lead to innovative ways that fresh bakery products are packaged and displayed at the instore bakery.

Healthy ingredients are a key. Matt Schueller, director of marketing insights and analytics at Ardent Mills, agrees that consumers say they want to eat whole grains, and yet there’s still work to be done. “This may be the environment now that offers renewed opportunities to promote good taste and health benefits,” he said. “Decisions are being made around food choices for myself and for the planet.”