bake - February 2020 - 20

Can Pay-for-Performance Systems
In an era of rising
wages and automation,
performance-based pay
could be the next big
step for lowering costs
and attracting talent.
BY BRIAN AMICK
Bakery owners have plenty on their minds when
it comes to running their businesses. Two of the
greatest business-related challenges that exist at
any retail bakery are 1) finding skilled labor, and 2)
managing labor costs.
The scarcity of talent in the baking industry, as
well as the salaries for those who can fill necessary
kitchen positions, has led many owners to look for
new ways to cut costs. Automation has risen in
the industry in recent years, especially at bakeries
looking to meet growing customer demand for
their products.
That's certainly true at Porto's Bakery & Café,
which operates five locations in Los Angeles (with
a sixth scheduled for 2021) and serves more than
10 million customers a year, making it arguably the
largest retail bakery in the country.
"One of the reasons we have automated so much
is to keep our prices low. We try to keep the lowest
"We look at anything and everything we can think
of to save costs."
California's minimum wage law rose one dollar
on Jan. 1, with an additional dollar to be tacked on
every year through 2023. As it currently stands, the
minimum wage for employers with 25 employees
or fewer is $12 an hour, while that number jumps
to $13 an hour if they have 26 or more employees.
In an industry that relies on handcrafted, gourmet
production and is facing higher labor costs, automation might not be the answer for every bakery
in order to maintain quality without raising prices
for customers. What is one to do, especially in a
state like California? Aaron Caddel believes he has
the answer. The 28-year-old CEO and founder of Mr.

20 < JAN-FEB 2020 | bakemag.com

TOP: TRAVIS KAENEL, BOTTOM: MARISSA MAHARA

prices we possibly can," says owner Raul Porto.



http://www.bakemag.com

bake - February 2020

Table of Contents for the Digital Edition of bake - February 2020

Bake - February 2020
Editor's Note - Addressing bakery challenges
Contents
Management - Ecommerce opportunities
Equipment - Scaling up
The French connection
Can pay-for-performance systems work?
Panera earns its bread
Out on display
A nostalgic new bakery in NYC
Chocolate - Chocolate collections to love
Cakes - An exciting partnership
Sweet goods - Capturing the flavor of the cookie
Pastries - Specialty pastries for winter
Foodservice - What's hot for 2020
Cakenomics
Cakenomics - Colorful cakes are blooming
Cakenomics: Time Saving Tips - Graduation season
Cakenomics: Winning Promotions - Surprise cake stand brings theater to the party
Cakenomics: Innovative Products
Classifieds
Ad index
Formula of the Month - Gluten-free pizza crust
bake - February 2020 - Management - Ecommerce opportunities
bake - February 2020 - BB - 1
bake - February 2020 - BB - 2
bake - February 2020 - Management - Ecommerce opportunities
bake - February 2020 - 2
bake - February 2020 - Editor's Note - Addressing bakery challenges
bake - February 2020 - Contents
bake - February 2020 - 5
bake - February 2020 - 6
bake - February 2020 - 7
bake - February 2020 - Equipment - Scaling up
bake - February 2020 - 9
bake - February 2020 - The French connection
bake - February 2020 - 11
bake - February 2020 - 12
bake - February 2020 - 13
bake - February 2020 - 14
bake - February 2020 - 15
bake - February 2020 - 16
bake - February 2020 - 17
bake - February 2020 - 18
bake - February 2020 - 19
bake - February 2020 - Can pay-for-performance systems work?
bake - February 2020 - 21
bake - February 2020 - 22
bake - February 2020 - 23
bake - February 2020 - 24
bake - February 2020 - 25
bake - February 2020 - 26
bake - February 2020 - 27
bake - February 2020 - Panera earns its bread
bake - February 2020 - 29
bake - February 2020 - Out on display
bake - February 2020 - 31
bake - February 2020 - 32
bake - February 2020 - 33
bake - February 2020 - A nostalgic new bakery in NYC
bake - February 2020 - 35
bake - February 2020 - 36
bake - February 2020 - 37
bake - February 2020 - Chocolate - Chocolate collections to love
bake - February 2020 - 39
bake - February 2020 - 40
bake - February 2020 - 41
bake - February 2020 - Cakes - An exciting partnership
bake - February 2020 - 43
bake - February 2020 - 44
bake - February 2020 - 45
bake - February 2020 - Sweet goods - Capturing the flavor of the cookie
bake - February 2020 - 47
bake - February 2020 - Pastries - Specialty pastries for winter
bake - February 2020 - 49
bake - February 2020 - Foodservice - What's hot for 2020
bake - February 2020 - 51
bake - February 2020 - 52
bake - February 2020 - Cakenomics
bake - February 2020 - 54
bake - February 2020 - Cakenomics - Colorful cakes are blooming
bake - February 2020 - 56
bake - February 2020 - 57
bake - February 2020 - Cakenomics: Time Saving Tips - Graduation season
bake - February 2020 - 59
bake - February 2020 - Cakenomics: Winning Promotions - Surprise cake stand brings theater to the party
bake - February 2020 - Cakenomics: Innovative Products
bake - February 2020 - Classifieds
bake - February 2020 - 63
bake - February 2020 - 64
bake - February 2020 - Ad index
bake - February 2020 - Formula of the Month - Gluten-free pizza crust
bake - February 2020 - 67
bake - February 2020 - 68
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