How a Bakery Scaled to 15 Million by Fixing Flour Costs

Lucas and Luna explore how a small bakery in Portland scaled to $15 million in revenue by solving a seemingly mundane problem: flour costs. They walk through the story of Sweet Rise Bakery, which faced a 40 percent gross margin crisis when wheat prices spiked in 2022. Instead of raising prices or cutting quality, the owner, Jenna Kwan, renegotiated supplier contracts, built a flour storage system, and hedged wheat futures—a move most small bakeries wouldn't consider. The episode breaks down the specific numbers: how a 15 percent reduction in ingredient cost translated into $2.25 million in saved margin, funding a second location and a wholesale channel. Lucas and Luna also discuss the broader lesson: that small businesses often overlook procurement as a scaling lever. They close with a reflection on what small-scale hedging could mean for other food businesses. #BakeryScaling #SweetRiseBakery #FlourCosts #ProcurementStrategy #Hedging #WheatFutures #GrossMargin #PortlandBusiness #FoodIndustry #SmallBusinessGrowth #MidMarketTransition #Business #ScalingUp #FexingoBusiness #BusinessPodcast #OperationalEfficiency #SupplyChain #CostOptimization Keep every episode free: buymeacoffee.com/fexingo