Bakers began to prepare bread at home in an oven, using grist mills to grind grain into flour for their breads. The demand for baked goods persisted, and the first bakers' guild was established in 168 BC in Rome. The desire for baked goods promoted baking throughout Europe and expanded into eastern parts of Asia.

A bakery is a building where bread and cakes are baked, or the shop where they are sold.

A bakery can be established as a retail business from a storefront location selling baked goods to consumers, or a bakery can be established as a wholesale business selling baked goods to food retailers and institutions.