A Detailed Guide On Starting A Bakery Business In India – 2023

Bakery Business

A bakery can begin as a retail business selling goods to customers from a storefront location or as a wholesale business selling goods to restaurants, grocers, and other businesses. Many bakeries additionally operate both retail and wholesale operations in order to increase their potential market as well as their revenues and profits. Opening a bakery is a very straightforward procedure, with the exception that the best bakers possess bakers trade papers. Therefore, be prepared to either hire a skilled baker or put in the time to become one. If a bakery focuses on both retail and wholesale sales of baked goods, it has a good chance of turning a profit. There are some good and knowledgeable bakery classes in Delhi that only help you understand the details of bakery but also help you understand the dynamics of bakery business. 

The demand for baked goods has increased steadily over the previous two years. Due to the comfort and affordability baked goods provide their customers, many home bakers and chefs have entered the bakery industry. This is the reason why there is a high demand for bakery Courses in Delhi. A report claims that the Indian bakery market will expand at a CAGR of 8.5% from 2021 to 2026 and be worth USD 12.39 billion at that point, making bakeries a very lucrative restaurant format. Let’s first look more closely at how to launch a bakery business in India in order to gain a better understanding of the different types of bakery businesses.

Types of Bakery Business

You must first choose whether you want to construct a retail bakery or a wholesale bakery before setting up the specifics of your bakery. It is crucial that you make the right decision because it will impact both how you deal with your clients and how much money you need to invest. Bakery classes in Delhi help you understand as to which type of bakery business you would want to start. Without having prior knowledge of the types of bakery business it will be difficult for you to start a bakery business. 

Retail bakeries 

A retail bakery accepts direct orders from customers. They can all be configured in different ways, but they all need at least one employee to manage the cash register and help customers.

Wholesale bakeries 

A wholesale bakery sells baked goods or provides supermarkets, hotels, and other retail establishments with them. When it comes to wholesale baking, there are many creative options, such as emphasizing your menu and its packaging.

Types of Bakery Service organisation

You must have a clear idea of the services you will provide to customers before starting any business. Examining a few bakery service categories will help. 

  • Bakery Cafe 

Customers can relax and enjoy their meals in the dining area of a bakery cafe, which is typically a sit-down bakery.

  • Food Truck Bakery

If you want to serve customers who are constantly on the go, mobile restaurants or bakery food trucks are fantastic alternatives.

  • Home Bakery 

For business owners who don’t have a lot of capital to invest in their startup, baking at home is the ideal solution. All you need to start a home bakery is the right tools, enough room, and the required licenses.

  • Counter Service Bakery 

Except for the dining area, a counter-service bakery is similar to a bakery cafe. Customers can typically walk into a small store and pick up their items.

  • Specialty Bakery 

Only one or a few different types of baked goods are produced by specialized bakeries. Because you can decide whether to produce it for retail or wholesale, they provide flexibility despite concentrating on a single product type.

Making a choice about the kind of bakery you want to open is crucial because it will affect your business plan for the bakery. Although it’s a big choice, it’s also the most exciting one for your startup company.

10 Steps To Open A Successful Bakery Business In India 

Create A Bakery Business Plan 

Before learning how to start a bakery in India, write a bakery business plan. This will help you streamline operations, decide how to distribute your budget, and plan how your bakery business will grow. Ideally, it should include:

  • The bakery business plan’s executive summary 
  • Review of the business 
  • Industry research 
  • SWOT evaluation 
  • Operating strategy 
  • Financial evaluation 
  • Marketing strategy

Choose a location for your bakery business

Finding a good location is one of the first steps in learning how to launch a bakery business in India. A reputable market or upscale shopping area with lots of foot traffic is the ideal location for a bakery. The best places for a bakery business are ground-floor front-area shops that are visible and convenient. A 500-square-foot shop should have a functional kitchen on one level and a serving and display area on the other. But how you do it will depend on the space you have and your preferences.

A 1000-square-foot space divided over two floors shouldn’t cost more than Rs 60–70k per month in rent. In order to purchase the property where the bakery will be located, you would need to spend about Rs 1,80,000. Before choosing a site for the bakery, it’s also crucial to make sure that it will have a sufficient water supply and drainage system. A suitable legal agreement should be obtained for the property as it is necessary for documentation and other licenses. Even better, get a No Objection Certificate (NOC) from the property owner confirming that he has no issues with you using his land as a restaurant.

Get all licenses required to open a bakery business in India 

The FSSAI license, GST registration, local municipal corporation health license, police eating house license, and fire license are the additional five licenses needed for the bakery business, which are similar to the QSR format. When opening the outlet, the FSSAI, GST, and Local Municipal Corporation Health License are the licenses that are most important to have. Once your company is up and running, you can apply for a fire license and a license for a police eating establishment. However, it is suggested that before opening a bakery, all necessary licenses be in place. 

Get manpower required to open a bakery 

Bakeries, as opposed to QSRs and food trucks, require a skilled workforce because baked goods must be delectable and attractively presented. In order to run a high-end bakery, you need a head chef, a chef de partie, a commis chef, helpers, service boys, and a cashier at the display and serving areas. The total number of people required in the bakery is about 15. Depending on their level of experience, the chefs, commis, and assistants are paid differently.

Purchase the tools required to launch a bakery business. 

It is expensive for a bakery business because every piece of kitchen equipment is made of stainless steel, which is strong and long-lasting. The main equipment required in bakeries includes planetary mixers, ovens, deep refrigerators, cooling refrigerators, working tables, gas stoves, cylinders, storage utensils, and other items. Instead of QSRs or food trucks, the bakery needs new equipment for increased efficiency. However, if you want to save money, you can buy the working table.

Design the display area of your bakery business 

The display area, or the front end of the bakery business, should be well designed and created so that each item is obvious in order to draw walk-in customers. For cakes and pastries, a display fridge is primarily necessary. In addition to a display rack for the items, the display area should have suitable storage in addition to the refrigerator.

POS and billing software should be installed in your bakery. 

The point-of-sale system is now more than just a billing system. Due to its strong integrations, including inventory management, the POS software is currently the only one your restaurant needs. Because you’ll be working with perishables, check that the POS software you select for your bakery business has tools for managing the baked goods’ shelf life and effective inventory management. The price of POS software may differ depending on the features you desire to have.

Do right marketing and branding of your bakery business 

Marketing and branding are essential for the success of any business, and bakeries are no different. Hire a professional designer to make a display board and a logo for you. This will help you brand your packaging and create a distinctive identity for yourself. A well-designed menu should also be ordered.

Make a decision regarding your employees’ work attire.

Frequently, when starting a food business, uniforms for employees are overlooked. However, they are essential because they support the bakery’s brand and professional image. All employees are expected to maintain proper grooming, cleanliness, and attire. Aprons, formal shirts and t-shirts, chef coats, and other clothing options are available.

Partnering with online food aggregators 

More people are placing online food orders these days. It is highly advised that a new bakery company sign up with online food aggregators in order to generate online orders.

A website for your bakery business that allows online ordering is a requirement as well. This would improve your online presence and generate online sales for your bakery.

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