In recent years, there has been a continuous increase in the demand for baked goods. Baked goods provide convenience and affordability to customers, and the increased demand has prompted many home bakers and chefs to enter the home bakery business sector. According to research, the Indian bakery market is expected to increase at an annual rate of 8.5 percent from 2021 to 2026, reaching a value of USD 12.39 billion in 2026, making bakeries a highly profitable restaurant format. In this essay, we'll go through how to start a bakery in India in great depth.
To start a profitable bakery business in India in 2022, follow the steps below:
Make a Business Plan for a Bakery
You should establish a bakery business plan before learning how to start a bakery business in India since it will assist you in streamlining operations, deciding budget distribution, and planning the future development of your bakery firm. It should preferably include:
- Bakery Business Plan Summary: The bakery business plan summary serves as an overview of your bakery. Your goal statement, a study of your restaurant's legal structure and ownership, a brief history of the restaurant if it's an existing restaurant, and restaurant business strategies should all be included in this section.
- Overview of the Business: The concept of your bakery business and the type of service you'll give must be included in the Business Overview section of your bakery business plan. It should include information about your bakery's layout and service style, as well as a sample menu and the management team's contact information.
- Analysis of the Industry: Before you start a bakery business, you must conduct an industry analysis. It will assist you in identifying local competition, analyzing your bakery's target demographic, and determining the best location for your bakery.
- An examination of the SWOT (Strengths, Weaknesses, Opportunities, and Threats): The SWOT Analysis for your bakery business will assist you in identifying the Strengths, Weaknesses, Opportunities, and Threats that your bakery firm faces. Find out how to do a SWOT analysis for your bakery here.
- Plan of Action: The elements of how your bakery will operate, such as order-taking, menu, service, employee management, raw material procurement, and so on, should all be included in your bakery's Operations Plan.
- Analyze the Budget: The cash flow statement, operating costs, fixed and recurring expenses, and so on should all be included in your bakery business plan's financial analysis. This will assist you in determining the financial viability of your bakery.
- Marketing Strategy: Your bakery business plan should also include a marketing strategy. How you'll attract clients and advertise your bakery should be discussed in the marketing plan.
Select a Location for Your Bakery Shop
Choosing a good site is one of the first stages in learning how to establish a bakery business in India. A reputable market or high-end shopping areas with substantial foot traffic are good locations for a bakery. The bakery company works best in front-area establishments on the ground floor that is easily accessible and visible. It's best to divide a 500-square-foot shop into two levels, with a functional kitchen on one level and a display and serving space on the other. However, this is dependent on the amount of room available and your own preference.
The rent for a 1000 sq. ft area distributed over two floors should not be more than Rs 60-70k. The bakery startup cost of acquiring the location where the bakery would operate is estimated to be roughly Rs 1,80,000.
Also, before deciding on a bakery location, make sure that the area has adequate water supply and drainage. Get a suitable legal agreement for the property, as it will be needed for paperwork and other licensing. You should also obtain a No Objection Certificate (NOC) from the property owner stating that he has no objections to his property being used as a food outlet.
Get all the Licenses You'll Need to Start a Bakery in India
The bakery business, like the QSR concept, requires five licenses: FSSAI registration, GST registration, Local Municipal Corporation Health License, Police Eating House license, and Fire License. The most significant permits to have at the start of the outlet are FSSAI, GST, and the Local Municipal Corporation Health License. Once you've started your business, you'll need to get a police eating house and a fire license. However, it is advisable to obtain all necessary permissions prior to opening a bakery.
- Food License: You can apply on the company's website (www.fssai.gov.in). You can also get this done through a variety of firms for roughly Rs 5,000, which includes all paperwork and a license cost. To avoid annual renewal expenses, it is recommended that you obtain a five-year food license for a bakery shop. The FSSAI permits cost Rs 15,000 for five years.
- GST Registration: It is possible with the assistance of a Chartered Accountant.
- Health License: With the help of a local Municipal Health inspector, you can obtain the Municipal Corporation's health licensing charge. This will set you back about Rs 3,000.
- Fire License: After installing fire extinguisher cylinders, you can obtain a fire license for a charge of Rs 1,000-2,000.
Get the Manpower You'll Need to Open a Bakery Shop
Bakery shops, unlike QSRs and food trucks, require skilled personnel because the flavor and presentation of baked goods are both important. At the display and service area, you'll need a Head Chef, Chef De Parties, Commi level Chef, and Helpers, as well as Service Boys and a Cashier. In the bakery, a total of 15 people are estimated to be needed. Chefs, Commis, and helpers are paid based on their experience.
Purchase the Bakery Equipment You'll Need to Get Started
Because each piece of kitchen equipment is constructed of stainless steel, which is durable and long-lasting, it is expensive for a bakery business. Planetary Mixers, Ovens, Deep Fridges, Cooling Fridges, Working tables, Gas stoves, Cylinders, storage utensils, and other equipment are all needed in the bakery. The bakery, unlike QSRs or food trucks, requires modern equipment to improve efficiency. However, you can save money by purchasing a used working table.
Make Your Bakery Business Display Area
To attract walk-in visitors, the bakery's display area, or front end, should be well planned and made in such a way that every item is visible. A display fridge is primarily used for desserts and pastries. Aside from the refrigerator, the display room should include adequate storage and a display rack for the merchandise.
Incorporate a Point-of-Sale (POS) and Billing Software Into Your Bakery
The POS software is no longer merely for billing. The POS software is now the only software you need in your restaurant, thanks to strong connections like Inventory management. If you're buying one for your bakery, make sure it has tools to monitor the shelf life of baked goods and robust inventory management because you'll be dealing with perishables. The cost of POS software will most likely vary depending on the features you want to integrate.
Make Sure Your Bakery Business Marketing and Branding are on Point
Market and branding are critical to the success of any business, and a bakery is no exception. Hire a professional designer to create a well-designed logo and display board. This will not only assist you in developing your own distinct identity, but it will also assist you in branding and packaging. Remember to acquire a well-designed menu as well.
For the first few months, 30,000 pamphlets should suffice to promote your bakery. With decent paper quality, these 30,000 booklets will cost you around Rs 30,000. Aside from fliers, consider investing in a beautiful display board to draw in clients. A well-designed display board would set you back about Rs 25,000.
Aside from them, you should set aside money for restaurant management software, which may assist you in running many marketing initiatives by leveraging client data.
Make a Decision About Your Employees' Uniforms
When starting a food business, it's common to overlook the importance of staff attire. They are, however, necessary because they aid in the delivery of a professional appearance as well as the bakery's branding. All employees must present themselves as clean, hygienic, and well-dressed. Chef coats, smart shirts and t-shirts, as well as an apron, are among the options available.
Collaborating with Food Aggregators on the Internet
These days, the demand for internet food delivery is continuously expanding. It is strongly recommended for a new bakery business to register with online food aggregators in order to create online orders.
It is also necessary for your bakery to have a website that allows for online ordering. This will assist you increase your web visibility as well as creating online bakery orders.
In India, the overall cost of starting a bakery is estimated to be roughly Rs 15 lakhs. The cost of equipment and the location, on the other hand, can cause a significant difference in the anticipated cost.
This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.
BOOK A FREE CONSULTATION
Get help from an experienced legal adviser. Schedule your consultation at a time that works for you and it's absolutely FREE.