1、1EXECUTIVE INSIGHTSBakery Operators Expect to Earn More Dough in 2024After years of price increases,consumers may be tightening their food budgets.But theyre still making room for their favorite baked goods.With everything from mealtime staples to indulgent pick-me-ups,the bakery aisle remains a go-

2、to source for a diversity of occasions and culinary tastes.L.E.K.Consulting and Houlihan Lokey surveyed around 40 bakery executives CEOs,other C-level leaders,private equity owners and board members to gauge their outlook for 2024.Respondents collectively produce a range of goods,including breads,pa

3、stries,laminated dough and tortillas.Most focus on in-store bakery and foodservice,though some supply center aisle or other channels.All have a perspective on where the business is headed and how they intend to respond to changes in consumer tastes.Bakers are optimistic about the near termExecutives

4、 from the top bakeries we surveyed expect greater revenue in 2024,with 53%projecting a significant gain over the previous year.Nearly all(95%)expect volume to go up,and 74%anticipate that their profits will top 2023 by a significant margin(see Figure 1).Figure 1Bakery operator revenue,volume and pro

5、fit projections for 2024*Survey questions:Relative to calendar year 2023,what is your outlook/expectation for your companys revenue in 2024?Relative to calendar year 2023,what is your expectation for your companys volume sales in 2024?Relative to calendar year 2023,what is your expectation for your

6、companys dollar profit in 2024?Note:Sentiment percentage subtracts projected percentage declines from projected percentage improvementsSource:L.E.K.and Houlihan Lokey survey and analysisPercentage of respondents(N=38)*20406080100Roughly the same;+0%Slightly higher;+1%to+2%Relatively higher;+3%to+5%S