Specialty Food Magazine is the leading publication for retailers, manufacturers and foodservice professionals in the specialty food trade. It provides news, trends and business-building insights that help readers keep their businesses competitive.
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in snacking. "In some aspects, it is its own eating occasion now," he says. "People want a slice of cake rather than the whole cake." Immy Khan, owner of Black Rooster Bakery in Fort Worth, Texas, says his customers clamor for these smaller items. "I see people moving away from our pies that we sell," he explains. "I see them moving more toward individual items—cookies, cupcakes, quick grab-and-go things." "Everybody is getting small things," says Bill Bowick, owner of Sugar Bakeshop in Charleston, S.C. He says his customers are increasingly leaning toward serving an array of smaller items for big occasions like weddings, opting for many small cakes, tarts, and cupcakes. Craving Something Better Another trend consumers are embracing is good-for-you menu items. "We've seen this steady increase in healthy options," says Richard. "Especially for millennials, that's something they're looking for in baked goods." Offering products with healthier ingredients such as Greek yogurt, oats, ancient grains, and superfoods like chia seeds, has churned up big business. Parker says many consumers are con- sciously thinking about the proactive health benefits in what they're eating and will gravitate toward items they perceive as healthier. Millennials are also encouraging a push toward baked goods made with locally sourced ingredients. "People are getting more concerned with the food they put in their body, and more concerned about where their food comes from," says Brooke Wilson Vitale, owner of Love and Buttercream in Royal Oak, Mich. Freshness, transparency, and authenticity are also becoming important factors for bakeries to consider, Richard says. To that end, many bakeries are now buying ingredients from local farmers and artisans. Bowick says his bakery sources many of its ingredi- ents from a South Carolina food co-op, which allows him to offer an abundance of fresh, seasonal items while supporting the local economy. In line with other food markets, bakeries are addressing special dietary concerns. Many patrons are seeking items that cater to vegan and gluten-free diets as well as common allergens. "Every day in our store we do have at least one option that's gluten-free and one that's vegan," Vitale says. Reimagined Forms and Flavors Hybrid mania is sweeping the bakery world, thanks in part to the popularity of items such as Dominique Ansel's Cronut, a croissant- doughnut combo that drew a craze around the world. "This past year we've seen an increase in the number of hybrid baked goods that are being released," Richard says. He points to ShopRite's Donoli, a doughnut stuffed with cannoli and whipped cream filling, and Au United States. The chain filed for bankruptcy last July and abruptly shuttered all of its stores. Bought out of bankruptcy by Fisher Enterprises, the chain has reopened several stores under new CEO Marcus Lemonis, but cup- cakes are no longer center stage as the new owners work to diversify offerings. Even Lemonis has admitted he can't run a business on cupcakes alone. Available products now include ice cream and pies, and the shops that do reopen are likely to become destinations for sweets and snacks of all sorts. Crumbs has also broadened its reach by partnering with Mariano's supermarkets in Chicago. This partnership will allow Mariano's customers to enjoy Crumbs' products while extending the company's brand beyond its own stores. Nielsen research shows the cupcake category is still experienc- ing growth, albeit at a slower trajectory than was previously seen. "[Most products] cannot sustain double- and triple-digit growth," Parker asserts. "Everything eventually comes to a plateau." Mary Gassen, owner of Noe Valley Bakery in San Francisco, says that while she was reluctant to get into the cupcake business, customer requests made the trend undeniable several years ago. Today, though, Gassen's customers are no longer clamoring for them. "It is amazing how it dropped off," she says. "People aren't ordering them anymore." The bakery does still sell a few cupcakes, but most are creatively decorated or in special f lavors, like Boston cream pie or chocolate, caramel, and f leur de sel. What Customers Want Diversification has been a buzzword throughout the industry, with bakeries tailoring their offerings to what their consumers crave most. As for what consumers are gravitating toward today: small portions, healthy additives, indulgent f lavors, and hybrid confections are all driving big sales. The biggest of those trends that analysts and bakery owners have seen recently is a push toward smaller, on-the-go servings of baked goods. While cupcakes are still among the single-serve good- ies that people want, bakeries are also seeing mini versions of other standard baked goods—including cookies, cakes, and pies—grab- bing consumers' attention. Eric Richard, education coordinator for the International Dairy-Deli-Bakery Association, says the surge in sales of indi- vidual servings has been partly brought about by a general increase Products with healthier ingredients such as Greek yogurt, oats, ancient grains, and superfoods like chia seeds, have churned up big business. (continued on p. 94) 82 ❘ SPECIALTY FOOD MAGAZINE specialtyfood.com