How to Open a Cake Shop in Texas

Most Texas cake shops are independently owned.

Whether it's at a wedding, family reunion, birthday party or holiday celebration, many Texans enjoy eating cake for dessert. The state even has its own type of cake, the "Texas sheet cake." Independent cake shops are typically more popular than supermarket bakeries in Texas, and running one can be quite profitable. If you know how to make excellent cakes and are looking to become an entrepreneur in the state, consider opening a Texas cake shop.

Instructions

1. Write a business plan for your cake shop, including: analysis of the demand for a cake shop in your area; marketing and public relations strategies; information about competing cake shops in the area, including grocery-store bakeries; five-year expense budget; and five-year profit projections.

2. Develop a menu for your cake shop, making sure you incorporate traditional and more unusual flavors. Try to offer seasonal flavors that are popular in Texas, such as pecan, cinnamon, mango, strawberry, tres leches, pistachio, pineapple, lemon and coconut.

3. Contact the Texas Department of State Health Services at 888-963-7111. Ask specifically what permits are required to open a food establishment in your county--regulations vary slightly throughout the state, and the fees vary as well.

   You will usually need to get food manager certification for at least one staff member, food handling permits for all employees that will help make your cakes and a food establishment permit.

4. Obtain the permits required in your county to operate a retail business. This typically means obtaining a DBA (assumed name certificate) from your county clerk and sales and use tax certificate from the Texas Comptroller's office. The sales and use tax certificate can be obtained online (window.state.tx.us/taxinfo/sales).

5. Lease a commercial building for your cake shop. Home food businesses are not permitted in Texas, so you will need to bake and sell your cakes in a facility that has been licensed by the state.

6. Buy wholesale equipment and ingredients for your cake shop to save money. Buying local food supplies will also save you transportation costs and shipping fees, and will allow you to use the freshest ingredients possible.

7. Contact the Texas Department of State Health Services to have your cake shop inspected by the state before you open. You will receive a permit after passing that must be displayed at all times in your shop.

8. Pay the fees for your food establishment permit; your cost will depend upon the revenue you earn, and the minimum charge is $250. The permit lasts for two years, and must be renewed before expiring.

9. Promote your cake shop. Become a vendor at event or wedding conventions, pass out samples at fairs and farmers' markets, send press releases to your local paper or launch a promotional website.

References

• Texas Department of State Health Services: Food Establishments Group
• Business.gov: Business Licenses and Permits
• Texas Administrative Code: Rules