Potential drivers of higher ingredient costs in a bakery business:

I. External Factors

• Supplier price inflation (e.g., flour, dairy, eggs)
• Fuel or shipping cost increases
• Seasonal disruptions in supply chain

II. Internal Operational Issues

• Overordering or poor inventory management → spoilage
• Increased waste during prep or baking
• Inefficient portioning or product shrinkage
• Vendor switching to higher-cost suppliers without renegotiation

III. New Store Inefficiencies

• Poorly trained staff at new locations
• Higher per-unit waste during ramp-up periods

Strong candidates will separate cost inflation from operational waste and tie back to the store expansion.