Serving an enduring ‘knead’
Overall, bakery remains a stable industry with opportunities to drive both revenue and profitability. Let’s sum it up in three main points:
- Bakery is highly fragmented and historically has had high M&A consolidation. We expect this to continue based on the data from our survey.
- Capital investment is picking up. That makes it critical to have a solid capital allocation strategy across maintenance, automation and growth.
- Automation and efficiency have become key levers for addressing rising wages and commodity costs.
Operators and investors that take advantage of these conditions will be well placed to guide a stalwart of the food economy along new avenues for growth.
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