Many (most?) rishonim, with the notable exception of the Rabbeinu Tam, hold that if there is no wine (or if you prefer bread) then you can make kiddush, on Shabbos/Yom Tov evening, with bread. At ...
The Halacha is that we cover the Challa / Cake while we make Kiddush in order not to embarass it (Talmud Yerushalmi as quoted by the Tur, Orach Chaim 271) as we are not making Hamotzi / Mezonos first. ...