Cost and Break-Even Point for Brioche Burger Buns Production

If you're planning to start a brioche burger buns production business, understanding the cost structure and break-even point is crucial. Here's a detailed breakdown to help you get started.

Brioche Burger Buns recipe Breakdown (for 180 buns)

- Wheat flour: 7.5 kg

- Salt: 0.15 kg

- Sugar: 0.9 kg

- Fresh yeast: 0.3 kg

- Eggs: 4.5 kg

- Butter: 3 kg

Daily Production

- Buns per day: 360pcs

- Selling price per bun: €0.90

Equipment Costs

- Dough mixer: €2700

- Fridge: €1800

- Dough proofer: €3600

- Convection oven: €9000

- Trolleys (3 pcs): €675 (€225 each)

Ingredient Cost Calculation (for 360 buns):

- Wheat flour: 15 kg * €1.60/kg = €24.00

- Salt: 0.3 kg * €0.12/kg = €0.036

- Sugar: 1.8 kg * €1.00/kg = €1.80

- Fresh yeast: 0.6 kg * €6.00/kg = €3.60

- Eggs: 9 kg * €3.50/kg = €31.50

- Butter: 6 kg * €9.00/kg = €54.00

Total ingredient cost per day: €114.94

Equipment Depreciation

Assuming the equipment lasts for 5 years and you work 6 days a week:

- Total working days over 5 years: 312 days/year * 5 years = 1560 days

Daily depreciation cost:

- Dough mixer: €2700 / 1560 days ≈ €1.73/day

- Fridge: €1800 / 1560 days ≈ €1.15/day

- Dough proofer: €3600 / 1560 days ≈ €2.31/day

- Convection oven: €9000 / 1560 days ≈ €5.77/day

- Trolleys: €675 / 1560 days ≈ €0.43/day

Total daily equipment cost: €11.39

Total Daily Cost

- Ingredient cost: €114.94

- Equipment cost: €11.39

Total daily cost: €126.33

Burger Buns Production Revenue and Profit Calculation

- Daily revenue: 360 buns * €0.90 = €324

- Daily profit: €324 - €126.33 = €197.67

Break-Even Analysis

- Fixed Costs (Equipment): €19750

- Variable Costs (per bun): €126.33 / 360 buns = €0.351

- Contribution Margin (per bun): €0.90 - €0.351 = €0.549

Break-Even Point Calculation

- Break-even point (in buns): €19750 / €0.549 ≈ 35965 buns

Break-Even Days Calculation

- Break-even days: 35965 buns / 360 buns/day ≈ 100 days

Conclusion

Starting a brioche burger buns production business involves significant initial investment in equipment and ongoing costs for ingredients. With the given prices, you need to sell approximately 35,965 buns to cover your equipment costs, and it will take around 100 working days to reach the break-even point. After that, you can start making a profit of about €197.67 per day.

Understanding these financial metrics is essential for planning and managing your business effectively. Happy baking! 🍔🥖