Vegan bakery Bakery Bakery plans expansion to 30 branches

Bern-based vegan bakery Bakery Bakery plans to grow from 12 locations to as many as 30 across German-speaking Switzerland, SRF reported. The company currently generates more than 10 million Swiss francs in annual revenue.

The bakery’s newest branch is located at the Treffpunkt, a meeting point at Bern railway station. Co-founder Kevin Schmid said the prominent location made him proud but also meant the company was under close public scrutiny.

Bakery Bakery was founded seven years ago. It plans to open five more shops this year as part of its rapid expansion.

Dirk Morschett, a professor of business administration and retail at the University of Fribourg, said securing good locations quickly could keep competitors away and provide a decisive advantage in a growing market. But he warned that rapid growth involved risks because the investments were being made now while their returns would only become clear years later.

One potential risk is competition from large retailers that could produce vegan goods more cheaply. Co-founder Lycra Strattmann said the bakery’s strong community would help set it apart. Many of its branches have children’s corners and space for students, she said.

The company says it needs a large network of branches to support the planned purchase of an electric delivery truck costing half a million Swiss francs. Schmid said the vehicle would need enough deliveries to be used efficiently.

The expansion has also left the founders with little time to experiment in the bakery. Strattmann said Schmid sometimes still makes sourdough at home, but no longer has much time for it.