Bakery products are the most sought-after food items. Be it a wedding, family get-together, or individuals treating themselves to some scrumptious food — bakery products are a priority of every household worldwide. Breakfasts are incomplete without bread, toasts, croissants; dinners are incomplete without desserts such as pastries, waffles, and brownies. Children of all ages cannot let a day go by without munching on muffins, cupcakes, and donuts. With time, the desire and demand for bakery products have skyrocketed exponentially.This increase in demand has brought in a wave of profits for existing bakery stores and created a rewarding business opportunity for those who can or want to open up a bakery store.
According to an IMARC Group report, the Indian bakery market was worth $ 8 Billion in 2019, making bakeries one of the most lucrative restaurant formats. Read this article further to know how to open up a bakery business in India. The approximate cost for opening a bakery business in India is around Rs 15 lakhs. This number may vary depending on the actual location and equipment costs. Below is a step-by-step breakdown of the process of opening your own bakery in India
Formulate A Bakery Business Plan
Well begun is half done. Planning ahead of time and against all odds is the most crucial task of all. Take your time getting all the minute details right and have a contingency plan in place for things that might not turn in your favour. Create a Summary of your Bakery business plan consisting of your mission statement, a review of your bakery’s legal structure and ownership. Include a brief history of the business, if it is an already existing one, and your restaurant business’s plans.
A Business overview includes the details such as the concept of your bakery business, the type of service you intend to provide, the layout of your bakery & service type, a sample menu, and service type. Conduct an Industry Analysis that helps you identify the competition in your area, recognise the target audience, and choose the most appropriate place for your bakery. A SWOT – Strength, Weakness, Opportunity, and Threats analysis gives you a thorough idea of what opportunities you can capitalize on and how to. It warns you of the hurdles that await you and prepares you in advance. Chart out an Operations Plan with details such as how your bakery will function, order-taking, menu, service, staff management, etc.
A Marketing Plan is most essential to chalk out how you will attract customers and promote your business. To gain financial viability for your bakery, it is important to include a cash flow statement, operating costs, fixed recurring expenses, etc., in the Financial Analysis of your bakery business.
Choose An Ideal Location For Your Bakery
An ideal place for a bakery would be reputed marketplaces or high-end shopping streets where the footfall is perennially high. Be on the lookout for shops which are on the ground floor and easily available. In an ideal setting, two blocks of 500 sq ft. with kitchen above and shop below would do the trick. But depending on the location, dividing a single floor space of 1000 sq ft. or more can be divided to create a functional kitchen and a display cum serving area.
Before finalising the place, make sure to check the place for proper water supply and drainage supply. Do not forget to procure a No Objection Certificate ( NOC) from the property owner for having no objections against the place being used to prepare and sell food products.
Secure All The Required Licences
Five licenses are required for opening up a bakery, these are:
- FSSAI license,
- GST Registration,
- Local Municipal Corporation Health License,
- Police Eating House License
- Fire License.
Make sure you follow the due process of law in obtaining these certificates thoroughly.
Hire Manpower With Skills To Run A Bakery
A man is known by the company he keeps, and an organization is known by the workforce it employs. A bakery business calls for an expert workforce since the taste as well as the presentation of baked goods matter the most. For a functional bakery, make sure you hire the following:
Head Chef,
Chef De Parties,
Commi level Che
Helpers Service Boys,
and Cashier
If you are squeezed in terms of budget, you can always hire employees eager to multi-task or take up a few roles yourself.
Buy Equipment Required To Set Up A Bakery
Bakery equipments are costlier than regular kitchen equipment since they are made of stainless steel for sturdiness and longevity.
The most essential bakery equipments are as follows:
a. Planetary Mixers
b. Ovens
c. Deep Fridge
d. Cooling Fridge
e. Working Table
f. Gas Stove
g. Cylinders
h. Storage Units
Make sure to buy brand new equipment to ensure maximum efficiency, and purchase them from the best display counter manufacturers in town.
Decorate The Display Area Of Your Bakery
Two third of the sales in the food product industry are made by capitalizing on impulsive purchases. More often than not, customers end up buying more products than they intended to.
The nature of the presentation of your food has a lot to do with these sales.
Design the display area to attract walk-in customers towards the food items you aim to sell. Commission a display fridge for cakes and pastries. The display area should have proper storage space and display racks for the various items.
A POS & Billing Software Is A Must
With additional integrations such as Inventory Management, the POS software is the only software you’ll ever need in your bakery. Always ensure to install the POS software equipped with the features to manage the baked items’ shelf life. The POS software price will vary depending upon the features you plan to include in your software.
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Choose A Uniform Of Your Staff
The need for uniforms at a bakery is often overlooked. It is crucial to have a uniform for your employees to build and maintain brand reputation and deliver a professional look. For the employees to look good, hygienic, and well dressed, choose different types of dresses such as chef coats, smart shirts, t-shirts, and an apron. To get your bakery’s marketing and branding just right, procure a properly designed logo and display sign from a professional designer. These will help you in creating a unique identity and also help you with branding while packaging.
To further widen the horizon for your business, you can tap into the increasing online food delivery market by partnering with online food aggregators or create your own website, which will boost your online presence and generate online sales for your bakery.
