NAICS 311811 Quarterly Industry Report
Retail Bakeries
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 311811Sector: 31Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 311811 provides valuation-focused intelligence for professionals assessing retail bakery businesses. Data is sourced from FDA[6] food safety regulations, U.S. Additional data is drawn from [Bureau of Labor Statistics[7].. Census Bureau](https://www.census.gov/) retail and manufacturing statistics, and SBA size standards[8] to support business appraisals, acquisition due diligence, lending decisions, and investment analysis for retail bakery enterprises.
Industry Snapshot
Key metrics for the retail bakeries industry.
Industry Definition & Overview
Retail Bakeries (NAICS 311811) encompasses establishments primarily engaged in retailing bread and other bakery products manufactured on the premises from flour rather than from purchased prepared dough. These bakeries operate storefronts where customers purchase freshly baked bread, rolls, cakes, pastries, cookies, pies, donuts, and other baked goods made from scratch by on-site bakers. The U.S. Census Bureau[5] classifies retail bakeries separately from commercial bakeries (NAICS 311812) and frozen bakery product manufacturing (NAICS 311813), recognizing the combined manufacturing-and-retail business model.
The U.S. retail bakery industry includes thousands of neighborhood bakeries, artisan bread shops, specialty cake studios, donut shops, and ethnic bakeries serving local communities. Consumer demand for artisan sourdough, specialty breads, custom decorated cakes, pastries, and ethnic baked goods has driven growth in the premium segment. The FDA[6] regulates food safety and allergen labeling for bakery operations, while state and local health departments conduct facility inspections and issue operating permits that govern retail bakery food handling practices.
Business valuations for retail bakeries focus on storefront location quality and lease terms, production capacity relative to demand, brand reputation and customer loyalty, custom cake and specialty order revenue, and wholesale account development potential. Appraisers evaluate daily production volume, product mix between bread, cakes, and pastries, labor efficiency per baker, ingredient cost management, and the competitive positioning between artisan bakeries commanding premium pricing and neighborhood bakeries competing on value and convenience.
What's Included in This Industry
- Sector-specific valuation multiples and financial benchmarks for retail bakery operations
- Revenue and profitability analysis across bread, cakes, pastries, donuts, cookies, and custom specialty order product segments
- SBA size standard classification and lending threshold data for NAICS 311811
- Comparable transaction data from recent retail bakery sales, multi-location bakery chain acquisitions, and specialty bakery brand transactions
- Market analysis covering artisan bread trends, custom cake demand, specialty pastry growth, and consumer preference for fresh-baked products
- Workforce and labor cost benchmarking for head bakers, cake decorators, pastry chefs, counter staff, and early-morning production teams
- Industry risk assessment including ingredient cost volatility, labor shortages for skilled bakers, location dependency, and competition from grocery in-store bakeries
- Regulatory compliance overview covering FDA food safety standards, allergen labeling requirements, state health department permits, and cottage food law exemptions
- Capital expenditure profiles for commercial ovens, mixers, proofers, display cases, packaging equipment, and storefront buildout costs
- Production metrics including daily output per baker, revenue per square foot, custom order lead times, waste percentage, and ingredient cost ratios
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Food Manufacturing | 311 |
| Industry Group | Bakeries and Tortilla Manufacturing | 3118 |
| NAICS Industry | Bread and Bakery Product Manufacturing | 31181 |
| National Industry | Retail Bakeries | 311811 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 311812 | Commercial Bakeries | Commercial bakeries and frozen cakes manufacturing operations producing baked goods at wholesale scale that compete with retail bakeries for consumer bread and cake purchases |
| 311813 | Frozen Cakes, Pies, and Other Pastries Manufacturing | Frozen cakes, pies, and pastry manufacturing operations producing frozen baked goods distributed through retail channels that compete with fresh bakery products |
| 311821 | Cookie and Cracker Manufacturing | Cookie and cracker manufacturing operations producing packaged baked snacks that share consumer baked goods spending with retail bakery cookie and pastry sales |
| 445291 | Baked Goods Retailers | Baked goods retail stores purchasing wholesale bakery products for resale alongside or in competition with on-premises retail bakery manufacturing operations |
| 722511 | Full-Service Restaurants | Full-service restaurants operating in-house bakery programs or purchasing artisan breads and desserts from retail bakeries for menu service offerings |
| 445110 | Supermarkets and Other Grocery Retailers (except Convenience Retailers) | Supermarkets and grocery retailers operating in-store bakery departments that compete directly with standalone retail bakeries for fresh baked goods sales |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 15.1% | 1,352 |
| 2 | New York | 9.7% | 874 |
| 3 | Texas | 7.5% | 678 |
| 4 | New Jersey | 4.9% | 443 |
| 5 | Illinois | 4.7% | 424 |
| 6 | Florida | 4.7% | 421 |
| 7 | Pennsylvania | 4.1% | 370 |
| 8 | Massachusetts | 3.4% | 304 |
| 9 | Washington | 3.4% | 301 |
| 10 | North Carolina | 3.2% | 285 |
% Of Establishments
0%
15%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
1,928
Total SBA Loans
$744.9M
Total Loan Volume
$386K
Average Loan Size
11 yrs
Average Loan Term
10.05%
Average Interest Rate
22,512
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA[9] classifies Retail Bakeries (NAICS 311811) with a size standard of 500 employees. Most retail bakeries are small owner-operated businesses that qualify for SBA-backed lending[10] and small business programs supporting startup financing, equipment purchases, and storefront expansion. Eligible businesses can access SBA 7(a) loans[11] for working capital, equipment, and acquisition financing, while 504 loans[12] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 248 | $60.7M | $245K |
| 2 | First Internet Bank of Indiana | 32 | $47.0M | $1.5M |
| 3 | Port 51 Lending LLC | 24 | $37.8M | $1.6M |
| 4 | United Community Bank | 24 | $32.5M | $1.4M |
| 5 | U.S. Bank, National Association | 48 | $32.5M | $676K |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for retail bakeries?
Retail Bakeries are classified under NAICS code 311811, covering bakery storefronts manufacturing and selling baked goods on premises per the U.S. Census Bureau[5] classification system.
What is the SBA size standard for retail bakeries?
The SBA[9] sets the size standard for NAICS 311811 at 500 employees, qualifying eligible retail bakeries for small business lending programs and government contracting preferences.
How are retail bakeries valued?
Valuations focus on location quality, production capacity, brand reputation, custom order revenue, and daily sales volume per U.S. Census Bureau[13] retail statistics and industry data.
What distinguishes retail bakeries from commercial bakeries?
Retail bakeries manufacture and sell directly to consumers from a storefront, while commercial bakeries (NAICS 311812) produce at wholesale scale for distribution to grocery and foodservice per U.S. Census Bureau[5] definitions.
What drives demand for retail bakeries?
Consumer preference for fresh-baked artisan products, custom decorated cakes for celebrations, specialty dietary options (gluten-free, vegan), and community-oriented shopping experiences drive demand.
What risks affect retail bakeries?
Major risks include ingredient cost volatility (flour, butter, sugar), skilled baker recruitment, storefront location dependency, competition from grocery in-store bakeries, and seasonal demand fluctuations.
What regulations apply to retail bakeries?
The FDA[6] regulates food safety and allergen labeling, while state and local health departments inspect facilities and issue operating permits for retail bakery food manufacturing operations.
How large is the U.S. retail bakery industry?
Thousands of retail bakeries operate across the U.S. employing tens of thousands of workers per U.S. Census Bureau[13] business statistics, ranging from single storefronts to multi-location chains.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]FDA fda.gov
- [7]U.S. Additional data is drawn from [Bureau of Labor Statistics bls.gov
- [8]SBA size standards sba.gov
- [9]SBA sba.gov
- [10]SBA-backed lending sba.gov
- [11]SBA 7(a) loans sba.gov
- [12]504 loans sba.gov
- [13]U.S. Census Bureau census.gov
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