The demand for baked items is increasing, whether it’s a pastry, cookies, patties or bread. These types of baked items have not been age-specific, and almost every age group is opting for delicious bakery Products.
Due to the rising demand for baked items, many home cooks & chefs working in various restaurants wonders how to start a bakery business in India.
It’s very well said that “The secret to having an epically beloved bakery is consistency”.
As per the future prediction, the Indian bakery business will become a USD 12 Billion industry by 2024 with a steady CARG (Compound Annual Growth Rate) of 9.3% from 2019 to 2024 & USD 12.39 billion by 2026.
In This article, we will be discussing the whole procedure in detail of how to start a bakery business in India. Let’s begin!
What Type of Bakery Business Would You Want to Start?
To start a bakery business, one needs to identify which type of bakery business they aspire to run. Following are the several types of bakery businesses:
You can find Storefront Bakeries in various cities of India. It takes a bit more space & spacious room in comparison to the usual grocery store.
Anyone can start this shop-front bakery business with minimal staff and some baking experience.
These kinds of bakery businesses are for those looking to start a bakery business with zero cost. Home-based Bakeries are the easiest go-to option.
Home bakeries need lesser investment and limited items. Gradually, with enough profits, you can diversify the menu and expand your bakery business, which you will be able to move into a bakery shop in the future.
Speciality bakeries do not include a wide range of products, these type of bakeries focuses on making a specific type of product.
For example, a wedding cake shop would be considered a speciality bakery as they specialize in making cakes, so whatever they need to change, they will specifically do it in cake categories only.
These bakeries are generally very expensive & need commercial space for customers.
Starting a cafe bakery business requires a good amount of experience & expertise as it includes a unique menu and staff for a good service.
For example, you might specialize in cookies, pastries, and muffins, but you’d also want to consider serving items like hot coffee, tea, and cold drinks.
These bakeries are very economical, as they do not require a rented place & staff. So, the baked items can easily be ordered via the app and promptly reach their customers.
Draw a Bakery Business Plan
A great business plan is essential to establish a successful business in any market. Let’s quickly go through the most important things that needs to be considered while making a bakery business plan.
- Bakery Business Plan Summary – A brief overview should consist of your mission statement, an outline of your restaurant’s legal structure and ownership, and a brief history of your restaurant if the restaurant already exists and should state the plans of your restaurant business.
- Creating Business Overview – This must include the core concept of your bakery business. You must define the type of service you’re going to provide. One an include a sample menu and the details of the core managing team.
- Conducting Industry Analysis – Industry analysis helps you identify the competition in your area and analyzes the target audience as per your bakery type, which further leads to choosing the right location for your bakery business.
- SWOT Analysis – performing SWOT Analysis for your bakery business would help you define the Strengths, Weaknesses, Opportunities, and Threats linked with your bakery business.
- Operations Plan – The Operations Plan includes details like drafting the functions of your bakery business, its order-taking, menu, service, staff management and much more.
- Financial Analysis – This analysis includes the cash flow statement, the operating costs, the fixed and recurring expenses, etc. Financial Analysis will help you to identify how your bakery financial structure is.
- Marketing Plan – One should draft a marketing plan for the bakery business as it talks about how you’ll influence and attract your target customers to promote your bakery.
Licenses Required to Open a Bakery Business in India
To start any business, one has to follow a legal procedure which includes applying for several types of licenses. Here are some essential licenses you are required to start a bakery business in India:
- FSSAI License: FSSAI(Food Safety and Standards Authority of India ) is a Food License that is needed to start a bakery. If you have this license, it proves that all the products are prepared under the standard guidelines of FSSAI.
- Health License: One can get this license from the Municipal Health Inspector, and it comes with a fee, i.e. Rs. 3,000. It proves that your business adheres to all the health-related guidelines set by the Health Department.
- Fire License: Before getting a fire license, you will have to install fire extinguishers throughout the building and set the safety protocols. After that, You can get a Fire license which costs around Rs. 1,000-2,000.
- Trademark Registration: Your bakery’s logo must be registered to build a unique identity.
- GST Registration: If your bakery’s annual turnover exceeds 20 lakhs, you must file GST, as GST applies to all baked products.
How to open bakery business in India in 6 Easy Steps
Following are the essential steps that are needed perform to start our bakery business:
- Commercial place: You have to rent a commercial site to establish a bakery business.
- Equipment: For the bakery business, you need various equipment like grinders, refrigerators, ovens and many more.
- Licensing: You need all essential licenses such as GST, FSSAI, Fire license, etc.
- Staff: For the bakery business, you need staff members such as a head chef, support chef, manager, etc.
- Billing and POS System: A POS (Point of Sale) billing system is essential if you plan to open a bakery. A POS software helps you with billing and offers excellent features such as Table Management, Kitchen Display System, Web Ordering, Rider Tracking, Aggregators orders management, and much more.
- Marketing Costs: Marketing is vital for promoting your brand, so you need to indulge in offline & online marketing to build brand awareness.
Bakery Business in India FAQs
Q. Do I need POS software & IMS for my bakery business?
Of course, you need it; If you are starting a bakery business, you have to handle huge inventory volumes for which IMS (Inventory management system) is necessary. For billing purposes, POS software makes each transaction easier for you.
Q. Why is bakery display is important?
A bakery display is essential as it appeals to the customers who walk into your store. Not only that, but it also shows the baked items in a more presentable manner. The display should match the store layout & adding attractive lighting to it will light up the baked items while making them look more delicious and mouth-watering.
Q. How can I market my new bakery?
Social media Presence: You create brand pages on multiple social media platforms and post something new every day about your offerings, services, and the feedback of your happy customers.
Establishing a Website: A website plays a significant role in keeping things official. You can add various details about your business, such as your products, services, customer stories, etc. You can also publish helpful blogs which will create more engagement.
Join Groups: communicate & associate with local businesses or corporate groups to meet new people who can help you with promotion and branding.
Partner with online food aggregators: Nowadays, many people order food online through various delivery platforms such as Swiggy, Zomato, etc. In such a case, you must partner with an online food aggregator to grow your sales which will help you to establish your brand.