How to Start a Bakery in India is always a question in every businessman’s head who want to start a bakery, as the occasions and celebrations are always in high demand and where there is a celebration there are sweets and how can someone deny cakes, pastries, and mouth-watering cookies and delicacies.
Baked items are always preferred and are never out of demand. Starting your own bakery is always a business that will remain in demand and cannot be denied with time.
In fact, over time, the demand for cakes, cookies, and other baked sweets is increasing. According to IMRAC group, their report says Indian bakery had been at a value price of US$7.22 Billion and is expected and predicted to rise to US$12 Billion by 2024.
Here, we are to enhance and grow up your knowledge in the field of the bakery so that you can become a pro and start thinking of opening a bakery of your own and warm lots of profit.
Here are the steps which you can follow and easily open a bakery and grow in this field and earn profits.
10 Easy Steps to Start Your Bakery in India
Step 1 – Creating a Business Plan to Start a Bakery
Before starting thinking anything about how to start a bakery in India the first and foremost step to start a bakery is to create a bakery business plan.
Without a proper and strategic bakery business plan, you cannot think further of your bakery business being in a proper place in the future. A bakery business plan is all about planning about the things which you are going to do in the future. It includes all the things like; the types and kinds of products, how much does it cost to start a bakery in India, production cost, marketing cost, and so on.
The summary of the bakery business plan will serve as an overview of the bakery. This should include a mission statement, an overview of the restaurant’s legal structure and ownership, a brief history of the restaurant (if the restaurant is an existing restaurant), and the restaurant’s business plan. The business plan should focus on several questions like:
- Who are your targeted customers?
- What is the preference of the products in your targeted place?
- Are there any subcategories in the targeted customers?
- Who are your direct as well as indirect competitors?
- What are the challenges and predictive circumstances which you can face due to your competitors?
- Who are your competitors trying to target for the selling of their product?
- Doing a complete market analysis, swot analysis, industry analysis, financial analysis, operations plan, and so on should be always on the priority list at the starting of the business.
Getting a clear detail and concept of the bakery business and your service is very important and should always be considered while creating a bakery shop business plan in India.
Step 2 – Setting up of Financial Assistance for Bakery Setup Cost
There are many costs to consider when bakery setup is done in India. For example, these include renting a business park, buying insurance, equipping your room, hiring and training staff, preparing the kitchen, and paying for utilities. Therefore, you will need a lot of money to cover these costs. Besides, once you open the bakery, it may take several months to make a profit.
Therefore, you will need to pay in cash for several months. You and your business partners are unlikely to finance your new bakery set up on your own. Therefore, you need to apply for a loan. The three common ways for entrepreneurs to obtain financing are commercial loans, sectoral division, and small business loans.
Traditional business loan – You can apply for a traditional business loan from any major or local bank. This type of loan has a low-interest rate and can use a lot of capital, but it requires a good reputation, and it may take months to obtain these funds.
Commercial Line of Credit – A line of credit is like a credit card. You can use permissions that do not exceed a certain amount, but you only need to pay for the amount you use. If you pay the remaining balance, you can use more credit. However, the credit limit cannot provide you with the same amount as other types of credit, so higher credit standards are required.
Small Business Loan – The Small Business Loan was created by the Small Business Association and is a loan designed to protect small businesses and provide them with seed Small business loans usually have lower interest rates and are suitable for people with credit difficulties, but require collateral, so the approval time may be longer than other types of loans.
Step 3 – Setting up Place for Bakery Setup
Once you have the funds for your bakery setup, you can start looking for commercial space for the bakery. The type of commercial space you need depends on the type of bakery you want to open, such as when it starts.
To start a food truck bakery, you will need to buy a truck, and you may want to find rental space in the store’s kitchen. Retail bakeries want to find a downtown location that is close to the target audience and also has the front of the house. Because wholesale bakeries sell products to businesses rather than customers, they may be farther from the city center or town.
Regardless of the type of bakery you start, you need to keep the following points in mind when looking for commercial space: Demographics, affordability, close to suppliers, competition scale and footprint, health and zoning regulations, security and crime levels, once you find a suitable location, you can do business.
You hire a lawyer to draft and negotiate a lease agreement with. To avoid problems that may arise when signing a lease agreement, you need to specify the lease period and a rent increase.
But if you are sufficient of your funds then you can move forward with your own space and location. For a bakery, the ideal place is a well-known market or shopping street where many people live. Ideally, the shop on the first floor is easily accessible and visible, making it perfect for a bakery.
It is recommended to divide a 50-square-meter store into two floors so that there is a fully functional kitchen on the first floor and a serviced exhibition space on the other. However, it depends on the available space and your own choice.
For 1,000 square feet (divided into two floors), the rent should not exceed 60-70,000 rupees. You will spend approximately Rs 180,000 to run a bakery on the purchase of a place. Also, when the bakery site is completed, it is important to ensure that the site has adequate water and sanitation facilities.
This agreement is also required for a fully legal agreement about the property, paperwork, and other permits. You will even need to obtain a No Objection Certificate (NOC) from the owner who has no questions about the website used for grocery store sales purposes.
Step 4 – Getting the permissions and licenses required done
Similar to the other business formats, the bakery also requires five licenses: FSSAI license, GST registration, the license from the local community health association, license for police catering, and license from the fire department. Among all the licenses, the most important is the FSSAI , GST, and Local Municipal Corporation health licenses at the time of opening.
After starting the business, you will obtain permits from the police and fire department. However, it is recommended that you have all the licenses before opening a bakery. : You can apply online through the website (www.fssai.gov.in). You can also do this through various agencies, which charge 5,000 rupees for all paperwork and licensing fees. Grocery licenses are to avoid annual renewal fees.
The fee for a five-year FSSAI license is 15,000 rupees, which is how to obtain an FSSAI license for your restaurant. Consumption tax registration can be completed with the help of a certified public accountant. Learn how to get your restaurant registered for Goods and Services Tax (GST). The restaurant is here.
Health permit: You can obtain a health permit from the city associated with the help of a local health inspector. The cost is about 3,000 rupees.
Fire permit: After installing the fire extinguishing agent bottle, you can obtain a fire permit for only 1,000 to 2,000 rupees. The foodservice industry is strictly regulated at federal, state, and local levels.
There are also some permits and openings. The bakery needs to obtain a permit before. The need depends on your location. Therefore, be sure to check your local laws and regulations to see if any specific laws apply to your new business.
Step 5 – Helping Hand
The number of employees depends on the size and type of your bakery. For example, retail bakeries must hire and train front desk personnel to take orders and operate cash registers. However, at the back of the house, the cooking and baking are done by self.
Your bakery should have at least one or two employees with formal training or bakery experience to supervise the actual baking process. You can also hire unskilled workers to wash dishes, mix ingredients, package food, and perform other tasks that do not require any prior knowledge or skills.
Some bakery setup also needs professional pastry chefs and staff to handle delicate and professional tasks.
For example, a bakery that bakes wedding cakes should be paid attention to by a skilled cake decorator. Bakeries that provide hand-made bread should consider hiring personnel who specialize in baking bread. The case of baked goods.
For a high-end bakery, you need service, a chef in the service area, a party chef, a chef and assistant, and service staff and cashier. The income of chefs, commissioners, and assistants depends on their experience.
Step 6 – Equipment and Devices
The types of equipment and devices needed for a bakery always depend on the type of baked goods you prepare. For example, you may need specific pastries to make different types of baked goods in the kitchen. But if you focus on baking fresh bread. Although specific appliances may vary depending on the size and type of bakery, there are several goals.
Filling content: Dough preparation: This includes standard mixers, kneading tables, dough dividers, dough cutters, and balance equipment. To prepare the dough, you may also need a locker, a proofer, a host/proofer combination, and a refrigerator.
Storage: Storage is important to keep the kitchen clean. Storage racks and shelves are essential in every bakery. When using large bags of flour and sugar, please consider buying trucks, trolleys, and trolleys to move the sacks around the kitchen.
Baking equipment: The convection oven is a great all-around casserole. Very happy because they provide dry heat and even baked goods. If you bake a lot of homemade bread, you can choose a deck oven to make the food crispy. Wholesale bakeries may be looking for large-capacity ovens, such as roll or rotary kilns. And sales. By choosing the right display rack for baking utensils, you can increase sales.
Depending on your needs, you can choose between self-service showcases or showcases with full functions and refrigerated and non-refrigerated options. In addition to the display cabinet, don’t forget to choose unusual boxes and packaging for your baked goods.
Cleaning and Washing Dishes: The 3-chamber washbasin should be the core of every cleaning station. However, don’t forget to order handwash stations, disposable gloves, detergents, sponges, towels, and other necessary cleaning supplies for employees.
In addition to large equipment for small baked goods, the bakery should also be equipped with small appliances, such as mixing bowls, storage boxes, mixers, bread knives, aprons, etc. A list of necessary baking equipment has been compiled so that you will not forget anything.
Kitchen appliances are expensive for the bakery business because each appliance is made of durable stainless steel. The main necessary equipment in a bakery is a planetary mixer, oven, freezer, refrigerator, work surface, stoves, cylinders, storage utensils, and other equipment. Unlike QSR or shopping carts, bakeries need new equipment to increase efficiency. To reduce costs, you can buy an old workbench.
Step 7 – Marketing and Advertising
Markets and brands are essential to the thriving development of any business, and bakeries are no strangers to them. Get properly designed logos and bulletin boards from professional designers. This can not only help you create your unique style but also help package the brand. Also, don’t forget to get a well-designed menu.
In the first few months, there are about 30,000 brochures enough to promote your bakery. The cost of these 30,000 copies of high-quality paper is about 30,000 rupees. In addition to the brochures, some funds need to be invested in large message boards to attract customers. The price of a reasonably designed bulletin board is about 25,000 rupees.
Also, you should set a separate budget for the restaurant management software, because it can also be used to run various marketing activities with customers
Before opening your bakery to the public, please conduct a few marketing and promotional activities to get publicity and attention. You can divide the marketing strategy of baked goods into five main steps: conduct market research.
The first step of a marketing campaign is to conduct market research and determine your target market, including information about your area, bakeries, competitors, and niche markets. Once you understand your target market, you can start to develop a strategy.
Write a Market Analysis: Your market analysis is a summary of your market research and should be included in the business plan of how to start a bakery in India. It should include information such as the average income in your area, discretionary spending in the target market, and the prices of competitors.
Set goals for marketing activities: Set realistic goals for bakeries and marketing and advertising activities. For example, set goals for the number of followers you want to get on your social media accounts and the number of sales you want to achieve in a month.
Practical: There are many ways to promote a bakery, and each has its advantages. When in the city, using signage is a good choice, and the price is reasonable. You can also consider traditional promotional strategies, such as newspaper advertisements and brochures.
Build a social media profile – Social media marketing is a great way to interact with customers, generate buzz and promote openings and other events. They browse your bakery website and social media accounts before deciding whether to visit them.
Therefore, please make sure you have an active online status. Many of these strategies apply to retail bakeries, but the marketing strategy is different from wholesale bakeries. You should focus on analyzing the competition and figuring out where local restaurants and grocery stores get their baked goods. Then they can come and try to reach an agreement.
Step 8 – Going Hand in Hand with the Technology to Start a Bakery
Technology is important for optimizing processes in grocery stores. First, you need a POS system, a good website for your bakery, order management, and a mobile app if possible from where you can get orders!
A restaurant POS terminal integrated with various tools and used with cloud technology will make your life easier.
Having a stunning website for your bakery business helps in getting a good online presence for your bakery business and you can also get orders through your website.
It is an order management system that allows orders from various third-party providers to be collected in one place to speed up processing. These are the latest POS terminal trends that need attention.
This will help you maximize sales opportunities and expand your customer base. Investing in a restaurant website is like investing in a long-term business and promotional tool.
Stay up to date and retain customers through engagement and feedback tools: A special CRM and loyalty system ensures that you collect the correct customer data and handle it properly. The feedback tool ensures that you correctly understand what your customers like and what can be improved. Your bakery needs to have a complete picture of customers and retain customers.
POS software has powerful integrated functions, such as inventory management, and is now the only software you need in your store. When buying for a bakery, make sure that the POS software has the function of managing the shelf life of baked goods. Manage your inventory as reliably as perishable goods. The function you want to activate.
Step 9 – Partner Food Aggregators
These days, the demand for online grocery deliveries is steadily increasing. For new bakeries, it is strongly recommended that you register your business with an online food aggregator to create online orders. Having a website that supports online ordering is also important to your bakery business. This will help you increase your online business and generate online orders for the bakery.
Step 10 – Grand Opening!
The last step in how to start a bakery in India is to keep it open and welcome customers to do business. A successful opening can be a good start for your new bakery and can help you find loyal customers. You need to promote openness to arouse interest. And make sure that customers know when your bakery is open.
A good way to attract customers to the bakery when opening a store is to offer discounts and specials.
For example, you can offer a discount for the first 100 visitors. Another option is to give free cupcakes to customers who have ordered more than a dozen cupcakes. They can also provide free samples of bread and other baked goods to encourage customers to buy.
There are many unique situations while starting a bakery, which is different from starting a traditional restaurant or any other restaurant. One of the best ways to ensure that a bakery runs smoothly is to keep it organized and attentive. If you plan, track, and organize documents carefully, then your business will be a good start.
I hope that all our queries have been answered as well as now you are completely ready to start a bakery in India.