Craft to Crumb mini-mag | December Q4 2023 | Fareway Bakery by AvantFoodMedia

INSIGHTS AND INSPIRATION FOR THE RETAIL BAKING COMMUNITY

FAREWAY BAKERY Q4 2023 | INAUGURAL YEAR

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AVA N T F OO D M E D I A Paul Lattan

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The Fine Print Craft to Crumb is published by Avant Food Media, 1703 Wyandotte St., Suite 300, Kansas City, MO 64108. Craft to Crumb considers its sources reliable and verifies as much data as possible, although reporting

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TRE NDS: Sweet and Savory Celebrations from In-Store Bakeries

FE ATURE D BAKE RY: Fareway Bakery

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BAKER PROFILE: Sarah Chapman and Amanda Munson

COV E R : Fareway Bakery in Winterset, IA, is one of several in-store bakeries that produce fresh baked goods daily for Fareway grocery stores in seven states. Photo by Olivia Siddall | Avant Food Media

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Craft to Crumb A Note From The Editor

WHAT MAKES THE

DREAM WORK? Teamwork! It’s a little cliché, I know, but that’s the best way to describe what’s happening for the burgeoning bakery business at Fareway Stores. Our visit to the chain’s Winterset, IA, location revealed exactly what happens when a team comes together to achieve a common goal: supplying fresh baked goods throughout the grocer’s network. That’s the case not only at Winterset but also Fareway Bakery as a business unit. On the pages ahead, you’ll learn about a team that shares a passion for baking and a love of what they do … and the dynamic duo making sure it all comes together.

JOANIE SPENCER E d i t o r- i n - C h i e f joanie@avantfoodmedia.com

Our team — editorial director Mari Rydings and m ultimedia specialist Olivia Siddall — came home to Kansas City feeling nothing short of inspired. And perhaps a little stuffed from snacking on Fareway’s signature Scotcharoos and Monster Cookies during the three-hour drive. In-store bakeries have evolved over the years, and it’s great to see that innovation is alive and well in this space. Neighborhood grocers are a special breed. They often provide a sense of belonging and community that goes beyond having the best price in the weekly circular. But that customer connection doesn’t just happen; it has to be made. And in Winterset, the connections start from scratch, right inside the bakery.

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Welcome to Fareway Bakery.

Craft to Crumb Consumer Trends

SWEET AND SAVORY WAYS TO © Ivan Traimak | Adobe

CELEBRATE

In-store bakeries help consumers mark occasions of every size. BY MAGGIE GLISAN

Samples of fresh-baked ancient grain bread, a self-serve station for mochi donuts, a colorful display of customizable cakes next to a digital kiosk for easy ordering. In-store bakeries (ISBs) are becoming increasingly attractive destinations for consumers looking to add a touch of freshness, personalization and convenience to their shopping trips. © Heorshe | Adobe

According to the Food Industry Association (FMI)’s Power of In-Store Bakery 2022 report, 95% of shoppers consume in-store bakery products at least occasionally, and 63% do so weekly, giving the department ample opportunities to capitalize on growing consumer trends.

Social media plays a massive role in what celebrations look like, according to Roerink. Pinterest’s impact on special occasions and customization is huge, especially for millennials with children.

In-store bakeries have always been the go-to for big celebrations like graduations and birthdays, but in the post-pandemic era, as consumers find even more niche occasions to celebrate, ISBs are stepping up to satisfy those everyday moments. “Consumers appreciate special occasions even more now and are finding new ways to celebrate,” said Whitney Atkins, VP of marketing at the International Dairy Deli Bakery Association. And no occasion seems too small. “Maybe it is a ‘treat myself because I just got out of a meeting that should have been an email’ occasion,” Atkins continued. Home-centric activities like watching sporting events also offer big opportunities for in-store bakeries. A September 2023 Circana survey, for example, found that 45% of Americans expected to tune into one or more NFL games from their homes, suggesting consumers are interested in splurging and gathering at home for sporting occasions beyond the Super Bowl. “Look at the popularity of F1 Racing or the World Cup,” said Anne-Marie Roerink, president of 210 A nalytics. “There are so many new movements out there, whether that’s sports or Taylor Swift tailgating. There’s a lot of fun to be had, and it’s really that little smile I believe people are looking for.”

“Millennials want to add that personal touch,” she said. “They might buy a pre-packaged Easter basket, but then turn to the in-store bakery for a cookie with their name on it to personalize the gift.”

“Consumers appreciate special occasions even more now and are finding new ways to celebrate.” Whitney Atkins | VP of marketing | International Dairy Deli Bakery Association

Roerink said a commitment to good customer service and having the right employees are vital for bakeries looking to offer more customization, though she noted increased automation for tasks such as cake and cookie decorating will help bakeries offer p ersonalized p roducts despite labor challenges. When it comes to offering customized baked goods, Marissa Velie, education and c ertification director for Retail Bakers of America, sees bakers going one of two ways: either offering a small, set number of designs or offering elaborate personalization. If they go the latter route, investing in technology is key. “There’s a lot of software development in the baking industry to support customization,” Velie said. “In the past, it’s been very labor intensive. But now, there are digital programs that allow people to design cakes virtually, and that saves a lot of time and eliminates a lot of error.”

Craft to Crumb Consumer Trends

ISBs are also finding new ways to offer custom solutions beyond birthday cakes. Roerink said she’s seeing creative crossdepartment merchandising such as displaying fresh-baked brioche buns next to gourmet burgers to eliminate some of the mental load for consumers. Even though inflation still impacts how consumers shop — 89% perceive groceries as being more expensive than last year according to a September 2023 Circana primary shopper survey — convenience remains important. Atkins suggested bakers think more holistically about how they can provide value.

“Whether it’s with laminated pastries or different varieties of croissants or tarts, a lot of bakers are leaning more savory,” she said. “You might think about a spinach croissant or a ratatouille tart with all these vegetables in it. It’s a really smart strategic move for bakeries.” Consumers gravitate toward classics with a twist, and bakers are experimenting more with unique flavor profiles. “Whether that’s using ingredients like purple yams or sesame, or the explosion of mochi everything, bakers are more willing to think outside of what’s considered traditional in bakery,” Velie said.

Roerink said she’s seeing not only an uptick in interest toward less familiar flavor profiles but also an increased specificity to regional flavors, whether that’s Korean, Caribbean or Vietnamese. And if bakers aren’t highlighting these offerings on social media, they’re missing a big opportunity. “It’s all about getting yourself noticed on social media — Instagram, TikTok — and personalizing your bakery,” Velie said. “It’s not only about showing the products, but it’s also important to show some of the personality of the staff to make yourself stand out. Retail bakeries have always had an important role in the neighborhood, and they’re more than their products. They’re a vital part of a vibrant community and bakeries need to lean into that and remember it’s kind of their superpower.” © Jack Sparrow | Unsplash

“Do you have fresh bread to complement dinner?” she said. “Is it easy to find? Do you have cupcakes and cookies up front for neighborhood school parties? What about bakery trays and largersized packages for groups?”

Velie has noticed a movement to offer savory items alongside the customary fresh-baked bread and sweet goods.

Offering smaller or individual serving sizes is another way ISBs can meet consumer needs. “These smaller serving sizes give people the option to still have a little bit of indulgence and a little bit of everyday happiness while sticking to their budget,” Roerink said. Bakers are also thinking outside of what is traditionally expected to provide unique experiences for customers.

In-store bakeries are positioned to meet two consumer demands: freshness and convenience.

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Craft to Crumb Featured Bakery | Fareway Bakery

SIMPLY

EFFICIENT With the success of its in-store bakeries, Fareway Bakery is on the rise. BY MARI RYDINGS

Tucked into a corner of the Fareway grocery store in Winterset, IA, is one powerhouse of an in-store bakery. It’s one of more than a dozen that help supply and deliver baked goods to nearly 140 stores in the Boone, IA-based Fareway Stores grocery chain. As the grocer grows, so does its Fareway Bakery unit, led by bakery sales specialists Sarah Chapman and Amanda Munson, who split responsibilities for the bakeries between them. Within the walls of the Winterset bakery, a 15-person crew produces everything from bread and buns to donuts, following a comprehensive bakery program that features a well-balanced blend of products made from scratch, frozen dough and mixes.

Along with bread, buns and donuts, the bakery produces a range of baked goods expected of any in-store bakery: pies, muffins and cakes, including made-to-order custom cakes. It also creates Fareway’s signature items: Scotcheroos (an Iowa staple), Salted Nut Bars, No Bake Cookies, Magic Bars, Monster Cookies, Cinnamon and Caramel Pecan Rolls, fresh hamburger buns, and a variety of snack mixes. All Fareway in-store bakeries function the same and follow a simple, efficient and well-orchestrated production process. At Winterset, the center island is the focal point of activity. It’s where the rolling, cutting, packaging and labeling of product for the store’s own displays and the stores it serves take place.

All photos by Olivia Siddall | Avant Food Media

WATCH NOW

Get an exclusive look behind the bake at Fareway Bakery. 13

Craft to Crumb Featured Bakery | Fareway Bakery

The crew navigates effortlessly around the island, their movements purposeful, synchronized and always busy. “All of our bakeries are like this, just go, go, go,” Sarah said. “A lot of people and a lot of production in a small space, and we make it work.” Here, the hustle begins at 5 a.m. each day. That’s when Angel Eckstein, the bakery’s manager, arrives to turn on the lights, heat up the oven and get the proofer going. Then, she turns her attention to the “recap list,” which details store orders and guides that day’s baking schedule. To the uninitiated, the first glimpse of the pages-long list can be daunting — the entire first page is dedicated to just bread and buns. That’s where Fareway Bakery’s flare for efficiency comes in. Each morning, the stores place their bakery orders using I-5, Fareway’s name for its online baked goods ordering catalog. The software system generates the recap list, which Angel and her team review each afternoon so they know exactly what they’ll need to produce for each store when they step into the bakery the next morning. They also check Winterset’s bakery shelves and add those items to the list. The recap list helps the crew determine which doughs they need to pan overnight.

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WATCH NOW: “We set out the dough we need the night before so it’s ready to proof and bake in the morning,” Angel said. “As soon as the bakers arrive in the morning, they start pulling dough from the coolers and prepping it for the proofer. As they’re doing that, I review the recap list again and write down what I need for my own shelves.” After Angel reconciles her lists, she passes them along to the early-morning crew, which gets the day’s baking underway. On Mondays, Wednesdays and Fridays, three people come in at 5 a.m. On Saturday mornings — donut days — there are four. On the other days, a crew of two opens the store, with others arriving at 6 a.m. The bakery relies on a handful of part-time people to fill in when needed. “We also pull out cookies the night before so they are ready to pan up

Bakery sales specialists Sarah Chapman and Amanda Munson discuss labor needs.

in the morning and bake,” Angel added. “Most of what the team has to do is bars, brownies and coffee cakes, most of which are already made up in the bunker. We bake the bases ahead of time and top them as we need to.” Prepping ahead makes morning production more manageable for the bakery crew. “Because half of the list was already taken care of the day before, it’s not as intimidating in the morning, and I can take care of the other half,” Angel said. The morning is spent baking, icing, cutting, labeling and packaging product. “Our Monster Cookies, Scotcheroos and No Bake Cookies are all made from scratch,” Angel said. “Our cream cake products are

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made using a base where we just add water and the flavor we want. Our drop cookies are also cream-based, and our regular cookies come in pucks that we can just pan and bake.” The afternoon is spent checking delivery orders, making sure each one is accurately filled and ready to go out first thing in the morning. Then, Angel pulls the new recap list, and the cycle begins again as the crew starts the prep work for the next day, moving dough, cookie pucks, pastry bites and other items that need to thaw overnight from the freezer to the cooler.

“Our Monster Cookies are also a scratch item that we hand scoop,” Amanda shared. “We’ve looked at different possible processes to automate that, but we haven’t found the right size of equipment that would work within the space.” Throughout the Fareway Bakery network, Sarah and Amanda have harnessed the power of efficiency and simplicity, two critical components needed when running a large operation from a small space. The production process is designed to keep SKUs manageable while allowing the bakeries to offer stores a wide variety of baked goods.

Winterset’s footprint is efficient. The island is flanked by a walk-in cooler and freezer, a double LBC rack oven, a roll-in LBC proofer, a Globe 30-quart mixer, an Oliver gravity-fed bread slicer, two sinks and an LVO dishwasher.

“We get product in a dough that we can manipulate into various shapes and forms,” Sarah said. “We can make a French bread, a Vienna and a garlic bread, among other varieties, using the same dough.”

Much of what Fareway produces is made from scratch, and that baked-at-home aesthetic carries all the way through to the prep work — trays of Scotcheroos, Magic Bars and other bar-type products are portioned by hand.

Similarly, the bakeries use one type of dough to vary their steak bun product line. They can create brat buns, Italian steak buns, Chicago buns and hoagies by simply scoring the dough differently.

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The Process starts with a great idea!

Craft to Crumb Featured Bakery | Fareway Bakery

“Using one product for multiple items is important because we have limited space,” Amanda said. “If we can keep our SKUs down and make more out of one item, that really helps us.” The same principles of efficiency and simplicity also apply to new product development. Sarah often leads the program’s R&D efforts, taking recipes customers may bake at home, such as Magic Bars, and adapting them so they can easily be scaled up into a full-size sheet pan or an 8-inch by 8-inch pan in the bakeries. “We try to think about variety and what our stores will like,” Sarah said. “We look at what we can bring in that is different from the grocery bread aisle, like jalapeño cheddar ciabatta. But we have to be able to create it efficiently and effectively in mass quantities with ingredients we already have. We have to be realistic when it comes to our operations. We have to consider the crew and other factors.” Working inside these parameters, it can take months for a new product to hit the I-5. Once the recipe is formulated, Sarah and Amanda like to give their crews three to four months to work on the product. “We have all the bakeries work on the new item and make sure everyone is following process and baking it perfectly before we add it to the I-5 and open it up to the other stores,” Amanda said.

Adapting existing products to meet current consumer trends is much easier than creating new ones. One of the trends Winterset tries to accommodate is the increased awareness of the cost of food in general. To make sure fresh bakery items make the must-have column on a shopper’s list, the store offers promotions such as Donut Saturdays, where people can buy donuts for 77 cents each. On Mondays, six-packs of cookies carry a special price, which also taps into the trend of affordable indulgence. “We also do a lot of single-serve products,” Angel said, speaking to the trend toward smaller portion sizes, both for convenience and health and wellness reasons. “We make little cups of Scotcheroos that fit into your car’s cup holder. We also sell individual muffins.”

An efficient production process lets the Fareway Bakery crew create several products from one type of dough.

“People eat with their eyes. We don’t want product going out that doesn’t look appetizing or worth the money they’re paying.” Angel Eckstein | bakery manager | Fareway Bakery

The crew also understands the role that outward appearance and aesthetics play in getting customers to add fresh baked goods to their shopping carts. “People eat with their eyes,” Angel said. “We don’t want product going out that doesn’t look appetizing or worth the money they’re paying.” While the Winterset bakery may be in a corner, its baked goods are strategically placed throughout the store to draw attention. In addition to the shelves immediately outside the bakery area, there’s a sizeable front-of-store display. During bun season, fresh-baked Fareway hamburger buns have a special spot by the meat counter,

making it convenient for customers to get their burgers and buns all in one place. And, of course, perhaps the most effective marketing strategy is the inviting smell of warm fresh-baked bread, cookies and sweet good that greets everyone who walks into the store. “The in-store bakeries have evolved over the past three or four years,” Sarah said. “They are now getting really well-known. We’re trying to work together as a key partner with the stores. We have our own identity, but the bakeries are also a little business within a business, and we’re getting support from everybody in the store. It takes years to evolve, to have everything run efficiently and flow.”

dynamic Craft to Crumb Baker Profile: Sarah Chapman | Amanda Munson

As the Fareway Bakery system steadily grows, Sarah Chapman and Amanda Munson keep the products moving. BY JOANIE SPENCER

All photos by Olivia Siddall | Avant Food Media

Baking is simultaneously art and science. And for Fareway Bakery, a unit of Boone, IA-based Fareway Stores, Inc., chemistry is everything. That can’t be more evident than in the matchup of Sarah Chapman and Amanda Munson, bakery sales specialists.

DUO

Sarah and Amanda are about as different as it gets: Amanda is formally trained in food science, while Sarah, a former salon owner, earned her chops making donuts at a bakery down the street. Before the two joined forces, Amanda was Fareway’s only bakery sales specialist, helping open bakeries throughout the grocer’s network. When the Cedar Rapids, IA, bakery opened in 2015, Sarah joined Fareway. “It was one of the easiest interviews I’ve ever done,” Amanda recalled. “We hit it off right away.”

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WATCH NOW Sarah Chapman (left) and Amanda Munson express the importance of partnership.

Above

Just two years later, Sarah became a member of the corporate bakery team.

Sarah Chapman (left) and Amanda Munson oversee Fareway’s in-store bakery teams.

She had bakery experience and an outgoing personality that perfectly complemented Amanda’s scientific mind and propensity for number crunching. But the learning curve was still steep, and there were challenges ahead. “I already knew how to bake,” Sarah said. “But I had a lot to prove. I had to overcome the perception that I was ‘just a cosmetologist’ with no formal bakery education. I had to work hard at building a rapport with my teams.” Today, Sarah and Amanda divide their duties based on the bakeries that supply each cluster of satellite stores, each assigned by region. While each woman oversees her own team — whether it’s working with purchasing to crunch numbers or troubleshooting product development for the I-5 product database — Sarah and Amanda are the yin to the other’s yang. “We’re constantly learning, and over the past couple of years, it’s become a collective thing,” Sarah said. “We really stand by each other.”

Craft to Crumb Baker Profile: Sarah Chapman | Amanda Munson

“We both have a good understanding of our business ... and we work well together as a team.” Amanda Munson | bakery sales specialist | Fareway Bakery

Their collective efforts are expanding Fareway’s bakery presence throughout several areas of the store. “We complement each other really well,” Amanda said. “Even though we operate our stores individually, it’s nice having a counterpart that you can bounce ideas off of. We both have a good understanding of our business — specifically, what works and what doesn’t — and for the overall program, we work well together as a team.” The growth of Fareway’s fresh bakery department has been steady over the past five to 10

years, but it was more of a slow burn than a rapid explosion. Before the bakeries took off, many of the stores depended on thaw-and-sell products in lieu of fresh baked goods. Now, that dynamic is changing. Through the hard work of the bakery teams, Sarah and Amanda are bringing to fruition Fareway’s vision to provide fresh bakery items to all its store locations. For Sarah and Amanda, it’s about more than just supporting their bakeries to produce the highest-quality fresh baked goods. It’s also about enabling these

bakeries to supply those stores with fresh bakery items at the same level of quality. These two work with store managers to create unique bakery programs that can make their stores successful. And to that end, they say, attitude is everything. “Whatever they put into it is what they’ll get out of it,” Sarah said. “We can help them create a bakery program that’s something different, something their customers wouldn’t otherwise be able to get. And that’s a huge accomplishment for us.”

The work that Sarah and Amanda do is putting Fareway on the map for bakery. But it’s more than that. This is a partnership that’s making waves for the company’s growing bakery business. And while having an even division of duties could easily create a rivalry, it’s actually had the opposite effect. “There’s comfort in knowing that there’s someone else who is fully on the same path that you are, someone who fully understands where you’re coming from and gets it,” Amanda said. “We’re better together.”

Craft to Crumb Product Showcase | Fareway Bakery

PRODUCT

SHOWCASE

Fareway’s in-store bakeries keep production efficient and SKUs simple. The crews create baked goods from scratch, frozen doughs and mixes for all the grocery chain’s stores. Here are some of Fareway Bakery’s top-selling signature items.

All photos by Olivia Siddall | Avant Food Media

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“THE BAKERY NUMBER DOESN’T ALWAYS SHOW YOU

WHAT YOUR BAKERY BRINGS. IT’S ALL THE OTHER STUFF THAT COMES ALONG WITH IT AFTER YOU HAVE THAT FRESH BAKERY IN THE STORE.”

— AMANDA MUNSON | BAKERY SALES SPECIALIST | FAREWAY BAKERY

LISTEN NOW: 28

Amanda Munson, bakery sales specialist, on the overall value of the in-store bakery.