Buying Guide
In-house baking vs. outsourcing: what it actually costs
Every cafe eventually asks the same question: bake it ourselves, or bring in a wholesale supplier? Here's what actually goes into that decision.
Running it in-house
Four cost categories that show up whether or not they're on the P&L as a single line.
Commercial oven & baking equipment
Commercial-grade convection ovens alone commonly run from roughly S$3,000 to well over S$15,000 depending on capacity, before proofers, mixers, chillers, and smallware.
Baking manpower
Singapore's F&B sector faces a well-documented manpower squeeze, and hiring a dedicated in-house baker competes for the same tight labour pool as front-of-house staff.
Ingredient stock & waste
Baking in small batches on-site means carrying raw ingredient stock and absorbing the wastage of trial batches, off-days, and inconsistent output.
Kitchen space
Every square foot given to baking equipment and prep is space not used for seating, storage, or service — a real opportunity cost on Singapore's commercial rents.
Outsourcing to a central kitchen
What changes when a licensed central kitchen bakes it instead.
One line-item, not five
A wholesale or consignment price per unit replaces equipment capex, ingredient stock, baking labour, and waste with a single predictable cost.
No capex, no maintenance
No oven, proofer, or mixer to buy, service, or eventually replace.
Consistent output, batch to batch
Production from a single SFA-licensed central kitchen means the same recipe and process every time, rather than variation between shifts or staff.
Staff time back on service
Front-of-house and kitchen staff spend their time on customers and core menu items, not on baking and pastry prep.
When outsourcing usually makes sense
- You're already short on kitchen space or hands, and adding a baking role isn't realistic.
- Your pastry case quality varies depending on who's working that shift.
- You're opening a second outlet and don't want to duplicate baking equipment and staff.
- You'd rather pay a predictable per-unit cost than carry equipment, ingredient stock, and wastage risk yourself.