Bakeries Cook Up Demand

By: Kaydee Ambas · August 09, 2023 · Reading Time: 2 minutes

The Croissant Theory

Many small and independent bakeries have been dusting off an old marketing recipe recently. The strategy — known in the industry as “The Croissant Theory” — involves deliberately limiting the supply of the most popular baked goods.

By cooking up fewer croissants, danishes, and other delicious pastries, bakeries aim to force consumers to arrive early or risk missing out on their favorite treats. Once a bakery sells out, it won’t bake any more until the next morning.

Supply Scarcity

The Croissant Theory is hardly a new strategy. In fact, it’s not even limited to bakeries. For example, apparel brands routinely release limited edition collections for similar reasons.

As its name suggests, the Croissant Theory is especially prevalent among bakeries, driven by increasing ingredient costs, labor shortages, and irregular demand throughout the week.

When implemented correctly, the benefits are significant. By cooking up fewer pastries, bakeries can simultaneously cut down on costs and waste while also making their products more enticing to hungry consumers. Plus, by consistently selling out their inventory each day, they may even create a larger appetite for their business‌.

Rising Dough

While artificial scarcity can help create excitement around a business, it can also backfire. Some customers may not be willing to wake up early for baked goods, and may seek out businesses willing to keep the oven light on for longer instead.

Still, many independent bakeries have found success with the Croissant Theory and are flipping the balance of power in their favor. If the pastries are good enough, they maintain, customers won’t mind going out of their way to get one.

Thanks to the success of the Croissant Theory in the bakery business, the strategy could soon trickle over into other industries as well. Leave it to bakeries to find creative ways to make the dough rise.

Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!

Check it out

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

TLS 1.2 Encrypted
Equal Housing Lender