I. Executive Summary

The Services
• ISBs Defined
• Not All Bakeries Are ISBs
• ISBs in Context
• ISB General Services: Fresh-Baked Goods and Customer Service Counter

Market Size and Growth
• ISB Sales Top $9 Billion in 1997
• Table 1-1: Retail Sales of U.S. In-Store Bakeries, 1993-2002 (dollars)
• Over 22,000 ISB Units in Operation
• Majority of Grocery Stores Operate ISBs
• Figure 1-1: Share of U.S. Supermarkets with In-Store Bakeries, 1993 vs. 1997 (percent)
• Bread Is Top Product Category
• Demand for Baked Goods Gradually Increasing
• ISB Market Stands to Benefit from Population Shift
• Home Meal Replacement Role in ISBs

The Marketers
• Ten Supermarket Chains Lead the Way
• Small Chains Pitted Against Giants in Top 100
• ISBs Face Internal and External Competition
• ISBs Struggle to Define Their Mission
• ISBs Partner with Retail Bakeries
• Wholesale Companies Fight Back Against ISBs
• ISB Share of Baked Product Sales Increasing
• Baking Industry Spearheads Consumer Education Campaign
• Coffee Shop Craze Could Benefit Baking Industry
• Industry Trends
• Getting Aggressive About Category Management
• Labor Problem Will Continue to Define ISB Operations
• ISBs Confronting Home Meal Replacement
• More Traditional European and Premium Bread Offerings
• Ethnic Food Trend Presents Opportunity for ISBs
• ISBs Offering More Wedding Services

Retail Promotions and the Consumer
• Company Advertising Not Department-Specific
• Seasonal and Special Event Tie-Ins Gain in Popularity
• Fresh! Fresh! Fresh!
• ISBs Building Store-Branded Identity
• Seasonal Promotions Help ISBs Capitalize on Brisk Holiday Sales
• 20% of Consumers Shop at Bakery Stores
• Customers Willing to Pay for Quality

Scope and Methodology
• Market Parameters
• Methodology

II. The Services

Scope of Report
• ISBs Defined
• Not All Bakeries Are ISBs
• ISBs in Context

ISB Characteristics
• ISB General Services: Fresh-Baked Goods and Customer Service Counter
• ISB Custom Services: From Cake Decoration to Catering
• ISB Products
• ISBs Also Sell Products Baked Off-Site
• ISBs Sell Non-Bakery Items
• Packaging and Labeling
• Location and Space: First in Traffic Pattern
• ISBs Allocate Small Percentage of Total Store Floor Space
• Standard ISB Equipment
• Business Hours: ISBs Create a Night Shift
• Specialized Labor Force: ISBs Face Challenge of Finding Skilled Labor
• Production and Service Create Dual Labor Demands
• Ingredient Suppliers
• Calculating Profitability: ISBs Must Factor More than Ingredient Costs into Margins
• Government Regulations

III. The Market

Figure 3-1: Estimated Retail Sales of U.S. In-Store Bakeries, 1993-1997 (dollars)
Figure 3-2: Estimated Number of U.S. In-Store Bakeries, 1993-1997 (number of units)

Market Size and Growth
• ISB Sales Top $9 Billion in 1997
• Table 3-1: Estimated Retail Sales of U.S. In-Store Bakeries, 1993-1997 (dollars)
• ISB Sales Are Steady
• Over 22,000 ISB Units in Operation
• Table 3-2: Estimated Number of U.S. In-Store Bakeries, 1993-1997
• Majority of Grocery Stores Operate Some Type of ISB
• Figure 3-3: Share of U.S. Supermarkets with In-Store Bakeries, 1993 vs. 1997 (percent)
• Table 3-3: Share of U.S. Supermarkets with In-Store Bakeries, 1993-1997 (percent)
• Figure 3-4: ISB Share of Total Supermarket Baked Goods Sales, 1991 vs. 1997 (percent)
• Figure 3-5: Share of ISB Product Sales by Product Category, 1997 (percent): 5 Product Categories and Other

Market Composition
• ISBs Command Small But Growing Percentage of Supermarket Sales
• Table 3-4: ISB Share of Total Supermarket Sales, 1993-1997 (percent)
• ISB Sales Gaining on Packaged Baked Goods Sales
• Table 3-5: ISB Share of Total Supermarket Baked Goods Sales, 1991-1997 (percent)
• ISB Retail Sales by Product Category
• Table 3-6: Share of ISB Product Sales by Product Category, 1997 (percent): 12 Product Categories
• ISBs Offering More European and Premium Breads
• Cakes Remain a Strong Category for ISBs
• Figure 3-6: Average Annual Consumer Expenditures on Bakery Products, 1990-1995 (dollars)

Factors Affecting Market Growth
• Demand for Baked Goods Gradually Increasing
• Table 3-7: Average Annual Consumer Expenditures on Bakery Products, 1990-1995
• Overall Food Expenditures Continue to Grow
• Table 3-8: U.S. Consumer Food Expenditures, 1993-1995 (dollars): Food at Home, Food Away from Home, Total Annual Food Expenditure
• ISB Market Stands to Benefit from Population Shift
• Table 3-9: Percent Distribution of U.S. Population by Age Bracket, 1995-2005 (percent): Age Under 5 to 65 and Over
• Table 3-10: Average Annual Bakery Product Expenditures of Consumers by Age (dollars): Age Under 25 to 65 and Over
• Supermarkets Must Cater to Aging Population
• And Woo Younger Shoppers
• Foodservice Industry Growth Could Help or Hurt ISBs
• Home Meal Replacement Role in ISBs
• Heavy Competition from Specialty Bread Shops and Bakery Cafés Supermarket Response to Labor Problem Threatens ISBs
• Figure 3-7: Projected Retail Sales of U.S. In-Store Bakeries, 1997-2002 (dollars)
• Figure 3-8: Projected Number of U.S. In-Store Bakeries, 1997-2002 (number of units)

Projected Market Growth
• Market to Top $11 Billion by Year 2000
• Table 3-11: Projected Retail Sales of U.S. In-Store Bakeries, 1997-2002 (dollars)
• ISB Units to Number 24,739 by 2002
• Table 3-12: Projected Number of U.S. In-Store Bakeries, 1997-2002

IV. The Marketers

The Marketers
• Ten Supermarket Chains Lead the Way
• Safeway Acquires Vons
• Wal-Mart Also Among Top Players
• Small Chains Pitted Against Giants in Top 100
• Wal-Mart Supercenter Takes Lead in Supercenter ISBs
• Whole Foods Market Leads Natural Food Supermarket ISBs
• Table 4-1: Top 100 In-Store Bakery Companies

Competitive Overview
• ISBs Face Internal and External Competition
• ISBs Struggle to Define Their Mission
• Bigger ISBs for Bigger Market Share
• The Standardization Issue
• Trying to Rise Above the Crowd
• ISB Inroads Into Wholesaler Turf Fuel New Foodservice Niche
• ISBs Partner with Retail Bakeries

External Competition
• Retail Bakeries Work Hard to Compete
• Table 4-2: Total Nonfrozen Bakery Product Sales by Type of U.S. Food Retailer, 1982-1997 (dollars)
• ISBs Compete with Growing Number of Bagel Outlets
• Table 4-3: U.S. Retail Bagel Sales by Type of Outlet, 1997 (dollars and percent): 5 Types Retail Outlet
• Number of Bakery Cafés Growing
• Wholesale Companies Fight Back Against ISBs
• Table 4-4: In-Store Bakery and Baked Goods Share of Grocery and Supermarket Sales, 1992-1996 (percent)
• ISB Share of Baked Product Sales Increasing
• The Branded Versus Private-Label Skirmish
• Effect of Wholesale Baking Industry Consolidation
• Baking Industry Spearheads Consumer Education Campaign
• Coffee Shop Craze Could Benefit Baking Industry

Competitive Profile: A&P (The Great A&P Tea Co., Inc.)
• Retailing Food Since 1859
• The Great A&P ISB

Competitive Profile: Albertson's, Inc
• Company Overview
• Albertson's In-Store Bakery
• Product Variety and Product Origin
• Albertson's Jumps on Premium Bread Bandwagon

Competitive Profile: American Stores Company
• A Food and Drug Empire
• American Stores Company's ISB

Competitive Profile: Food Lion, Inc.
• Food Lion: Official Supermarket of NASCAR
• Food Lion's In-Store Bakery

Competitive Profile: Harding's Friendly Markets
• An Independent Michigan Chain
• Harding's In-Store Bakery Features Scratch Baking

Competitive Profile: The Kroger Company
• Kroger at Top of Supermarket Food Chain
• Kroger Seeks to Streamline Bakery Costs at Manufacturing Centers
• Kroger's In-Store Bakery
• Some Stores Adding Catering Divisions
• Kroger Experimenting with In-Store Coffeehouse

Competitive Profile: Safeway, Inc
• Company Overview
• Safeway's In-Store Bakery

Competitive Profile: Stater Bros. Markets
• A Los Angeles Tradition
• The Stater Bros. In-Store Bakery

Competitive Profile: Wal-Mart Supercenter (Wal-Mart Stores, Inc.)
• The Wal-Mart Empire
• Supercenter ISB Units Proliferating Rapidly
• Table 4-5: Projected Wal-Mart Supercenter ISB Unit Growth (number and percent)
• The Wal-Mart Supercenter ISB
• Product Variety and Product Origin
• Table 4-6: Selected Wal-Mart Supercenter Prices, 1997
• Supercenter ISB Combination of Service and Self-Service
• Supercenters Offer Limited Custom Services and Catering
• Wal-Mart Takes Bakery Online
• Table 4-7: Selected Wal-Mart Online Cake Prices, 1997 ISB Production Method: Primarily Bake-Off

Competitive Profile: Whole Foods Market, Inc
• The Nation's Leading Health Food Grocer
• The Whole Foods Environment
• The Whole Foods In-Store Bakery
• Whole Foods ISB Is Customer-Service Driven
• Whole Foods Production Methods Split
• Whole Foods ISB Selection and Pricing
• Table 4-8a: Selected Whole Foods ISB Prices: Breads Baked Off Site, 1997 (dollars): 14 Items
• Table 4-8b: Selected Whole Foods ISB Prices: Breads Baked On Site, 1997 (dollars): 11 Items
• Table 4-8c: Selected Whole Foods ISB Prices: Miscellaneous Goods Baked On Site, 1997 (dollars): 7 Items
• The History of Whole Foods
• Growth Through Acquisition
• Growth Through New Store Openings
• Whole Foods Commits to Private Label
• Licensing Agreement with Jamba Juice Co
• Advertising and Promotional Programs
• Future Plans

Competitive Profile: Winn-Dixie Stores, Inc
• Driving Force in Southern Grocery Market
• Winn-Dixie Puts Its Money Behind Its Marketplace Format
• Winn-Dixie's In-Store Bakery
• Winn-Dixie ISB Reflects Industry Trend Towards Self-Service
• Winn-Dixie Offers Limited Custom Services and Catering
• ISB Production Method: Primarily Bake-Off

Industry Trends
• Getting Aggressive About Category Management
• Labor Problem Will Continue to Define ISB Operations
• ISBs Confronting Home Meal Replacement
• Supermarket Trend Towards In-Store Foodservice Outlets Affects ISBs
• ISBs Moving Towards More Traditional European and Premium Bread Offerings
• Ethnic Food Trend Presents Opportunity for ISBs
• ISBs Featuring Smaller Cake Sizes
• ISBs Offering More Wedding Services
• ISBs Consider Move Towards Exotic and Upscale

V. Retail Promotions and the Consumer

Promotion and Merchandising Trends
• Company Advertising Not Department-Specific
• Seasonal and Special Event Tie-Ins Gain in Popularity
• Table 5-1: Merchandising Strategies Utilized by In-Store Bakeries (index): 10 Merchandising Strategies
• Fresh! Fresh! Fresh!
• ISBs Building Store-Branded Identity
• Premium Breads Bring Upscale and Health-Focused Advertising to the ISB
• Seasonal Promotions Help ISBs Capitalize on Brisk Holiday Sales Custom-Decorated Cake Promotions
• Convenience and Production Visibility Key Merchandising Ploys
• ISBs Court Customers by Baking Throughout the Day

The Consumer
• Notes on Simmons Market Research Bureau Data
• Simmons Data on In-Store Bakeries
• 20% of Consumers Shop at Bakery Stores
• Consumers in the 45-54 Age Range Constitute 20% of Customers
• Educated and Professional Consumers Shop at Bakery Stores
• Northeasterners and Upper Income Shoppers Are Prime Bakery Shoppers
• Table 5-2: Demographic Characteristics Favoring Shopping at U.S. Bakery Stores, 1997
• Households with Children Are Important Bakery Customers
• The RBA Consumer Survey
• Customers Willing to Pay for Quality
• Sweets Are High-Impulse Purchases
• Decorated Cakes and Variety Breads Are Low-Impulse Items
• Factors Affecting Impulse Purchases
• American Consumers Are Nutritionally Conscious
• Consumers Perceive Bread as Healthful

Appendix I: Advertisements. This appendix appears in bound editions only.

Appendix II: Top 100 In-Store Bakery Headquaters