Commodity Price Volatility: Rising costs for key ingredients like wheat, sugar, and oils can significantly erode profit margins if not effectively managed through pricing adjustments or hedging strategies.

Intense Market Competition: The highly competitive nature of the bakery industry, including national brands, private labels, and local bakeries, can lead to pricing pressure, reduced market share, and increased marketing expenditures.

Supply Chain Disruptions: Issues such as labor shortages, transportation delays, ingredient availability, or adverse weather events can impact production and distribution, leading to stockouts, increased costs, and inability to meet demand.