In-Store Bakery Is the Highest-Margin Perimeter Bet

Wegmans, H-E-B, Publix, and a wave of regional grocers are publicly expanding scratch bakery programs, with new store builds dedicating 1.5-2x the prior generations bakery footprint.

In-store bakery delivers 40%+ gross margins (vs. mid-20s for packaged center store), pulls in trip frequency, and is one of the few categories where shoppers reliably abandon their planned list to add an impulse buy.

Expect aggressive bakery investment across regional grocers, plus a labor-cost squeeze as scratch bakers become one of the hardest-to-recruit roles in supermarket operations.

Shoppers cite in-store bakery quality as a top-three driver of grocery store choice, ahead of produce quality in several major studies — and theyre increasingly willing to make a dedicated trip just for it.

If you operate grocery stores, the bakery P&L deserves a fresh look — and the recruiting strategy for bakers is a top-five operational question for 2026.