The Costs of Starting a Cookie Business: Budget Breakdown for 2025

Starting a cookie business is an exciting venture, but it’s important to know what it will cost to turn your baking dreams into reality. From ingredients and equipment to licenses and marketing, the expenses can add up quickly. Having a clear understanding of the costs involved will help you create a realistic budget and plan for long-term success.

In this post, we’ll break down the essential costs of starting a cookie business in 2025, whether you’re baking from home or launching a storefront. We’ll also share tips for cutting costs without sacrificing quality. Let’s crunch the numbers and get your cookie empire started!

Initial Setup Costs

Starting your cookie business requires some upfront investments. Here are the key expenses to consider:

Equipment

You’ll need reliable tools to produce high-quality cookies efficiently.

• Stand Mixer: $300–$700 (or more for commercial models).
• Ovens: $1,000–$3,000 (a home oven upgrade or a commercial convection oven).
• Baking Trays and Tools: $100–$300 for cookie sheets, spatulas, piping bags, and rolling pins.
• Packaging Supplies: $100–$500 for boxes, ribbons, stickers, and labels.

Total Estimated Cost: $1,500–$4,500

Ingredients

Stock up on high-quality ingredients to ensure your cookies are delicious from the start.

• Flour, sugar, butter, eggs, chocolate, and other essentials: $300–$600 for your initial batch (this will vary based on your product line and batch size).

Pro Tip: Buy in bulk to lower costs, especially for commonly used items like flour and sugar.

Licensing and Permits

Operating legally is non-negotiable. Be prepared to pay for:

• Food Business Registration: $100–$500 (varies by Australian state or council).
• Food Safety Course: $100–$200 per person.
• Insurance: $500–$1,000 annually for product liability and public liability insurance.

Total Estimated Cost: $700–$1,700

Branding and Marketing

First impressions matter, so allocate funds for branding and marketing materials.

• Logo Design: $100–$500 (or use online design tools for a budget option).
• Business Cards and Flyers: $100–$200.
• Website Setup: $300–$1,000 (DIY with platforms like Shopify or WordPress, or hire a designer).
• Social Media Ads: $100–$500 to promote your launch.

Total Estimated Cost: $600–$2,200

Recurring Costs

Once your business is up and running, you’ll need to cover ongoing expenses:

Ingredients

The cost of ingredients will depend on the volume of cookies you produce. On average:

• Monthly Ingredient Cost: $300–$1,000 (varies based on sales volume).

Utilities

If you’re baking from home, your electricity and water bills may increase.

• Estimated Monthly Cost: $50–$200.

Marketing

• Allocate a monthly budget for social media ads, promotions, or giveaways: $50–$200.

Packaging Supplies

Replenish boxes, labels, and other packaging items as needed.

• Estimated Monthly Cost: $100–$300.

Additional Costs for Commercial Kitchens or Storefronts

If you’re planning to move beyond a home-based business, your costs will increase.

Commercial Kitchen Rental

• Hourly Rental: $20–$50 per hour.
• Monthly Rental: $1,000–$3,000 (depending on location and kitchen size).

Storefront Lease

• Monthly Rent: $2,000–$10,000 (varies by location and size).
• Fit-Out Costs: $5,000–$20,000 for shelving, counters, and equipment upgrades.

Staff Wages

• Hiring part-time or full-time staff will add significant costs.
• Hourly Wage in Australia (2025 estimate): $23–$30 per hour, plus superannuation and benefits.

Pro Tip: Start with a shared kitchen to reduce costs before committing to a long-term lease for a storefront.

Cost-Saving Tips

Starting a cookie business doesn’t have to break the bank. Here are some ways to save:

Start Small

• Launch from your home kitchen to minimise costs.
• Focus on a limited product line to reduce ingredient expenses.

Buy Second-Hand Equipment

• Look for gently used commercial ovens, mixers, or shelving to save money.

Partner with Local Suppliers

• Source ingredients from local farmers or wholesalers for fresher products and potential discounts.

DIY Marketing

• Use free or low-cost tools like Canva for graphic design and social media platforms for organic marketing.

Track Every Expense

• Keep a detailed budget to identify unnecessary spending and optimise your cash flow.

Budget Breakdown Summary for 2025

Category	Estimated Cost (AUD)
Equipment	$1,500–$4,500
Initial Ingredients	$300–$600
Licenses & Permits	$700–$1,700
Branding & Marketing	$600–$2,200
Initial Setup Total	$3,100–$9,000
Recurring Monthly Costs	$500–$1,500 (home-based)
Commercial Kitchen/Storefront (if applicable)	$1,000–$10,000+

Note: These costs are estimates and can vary based on location, business size, and individual choices.

Start Smart and Stay Prepared

Starting a cookie business in 2025 can be incredibly rewarding, but it requires careful planning and budgeting. By understanding the costs involved and exploring cost-saving strategies, you can set yourself up for success without overspending.

Remember, starting small doesn’t mean thinking small. Many successful cookie businesses began in home kitchens with a modest budget and grew into thriving operations. With determination, creativity, and a clear plan, your cookie business can be the next sweet success story. Happy budgeting—and baking!