Disclaimer: We will donate all our profits to Squamish Food Bank or Helping Hands during pandemics until restaurants stay closed for dine-in customers.
As a new initiative centered around a social mission, we rely on the confidence of our partners and of our customers. One way we hope to earn and keep your trust is by being as transparent as possible about our finances. Here we will give you a summary of how we are thinking about the budget.
We are infinitely grateful for the support of local businesses, such as Howe Sound Brewing and Inn for letting us use their facilities at no cost during the pandemic, and for Slope Side Supply for a sweet deal on the bread packaging.
If the ingredients are cheap, unfortunately bread-making is labour intensive. We are planning the sustainability of solidarity bread in the long-term, which means we would like to pay people a livable wage for this labour. The cost of labour is thus reflected in our prices. The bakery business operates in an economy of scale model, which means the larger quantity we bake, the more time efficient it becomes. As we refine our baking schedule over the weeks, you may see our prices change to reflect the actual value of the labour put into making bread.
Here is how we came to decide on the price of our services:
- Ingredients costs per loaf are approximately $2.
- The cost of labour per loaf varies with scale. Assuming that we pay $15/hr, we think then the labour value in each loaf would range between $2 and $3.
- Delivery, even more than baking, becomes cheaper with more orders. We estimate the value of delivery for each order to range between $1 and $3.
- In addition, we add 15% for operational costs and unexpected costs.