With the startup booming in the country and disruption faced by the Restaurant Industry has made people to start their own venture. The professionals and cooks are now working on their passion to get into the food business. Out of the many, baking is such passion that has brought together big and small business into the picture. The bakers who want to bring their dream to life can start a bakery business plan with a small investment.
The total estimation of opening a bakery can help to tell you how much you need to start a bakery business. The total cost of opening a bakery in India is around 15 lakhs. However, the cost and location can cause variance in the approximate cost.
Although the profit potential for a bakery is good but starting a business is never easy. There are lots of things that need to be taken care of.
Here are some steps that can guide you to open a successful bakery business in India:
1. Create a Bakery Business Plan
Before heading towards how to start a bakery business in India, you need to make a bakery business plan which will help you in streamlining the operations, deciding the budget, distribution and planning the future development of your bakery business. The plan should include:
- Summary of the Bakery Business Plan
- Business Overview
- Industry Analysis
- SWOT Analysis
- Operations Plan
- Financial Analysis
- Marketing Plan
2. Choose a location for your Bakery Business
The first step to start a bakery business in India is to choose a good location. To open a bakery, a good location is a reputed market or shopping streets with high footfall. The front area shops are easily accessible and best for the bakery business. A 500 sq ft shop divided in two floors can be built with kitchen on one level and serving area at another.
For a 1000 sqft area divided between two floors, the rent can range between 60-70k. The total expenditure would come around Rs 1,80,000 to acquire the place where the bakery will operate.
Before finalizing the location of the bakery, make sure that the place has enough water supply and drainage facility. Also, get an appropriate legal agreement for the property as it is required for paperwork and other licenses. Get a No Objection Certificate (NOC) from the property owner mentioning that there is no problem to use that place for food outlet purposes.
3. Get the Required Licenses to Open a Bakery
The bakery business needs five licenses: FSSAI license, GST Registration, Local Municipal Corporation Health License, Police Eating House license, and the Fire License. Out of all, FSSAI, GST, and Local Municipal Corporation Health License are the important ones to have at the starting of the outlet. Fire license can be acquired once you commence your operations. Also, it is recommended to have the entire license in place before starting a bakery.
- Food License: It can be applied online at www.fssai.gov.in. You can also get this done through various agencies however they charge around Rs 5,000 for the complete paperwork and license fee. It is recommended to get a five-year food license to avoid renewal fees every year. The fee for the five years FSSAI licenses is Rs 15,000.
- GST Registration: Taking the help of a Chartered Accountant, you can do GST Registration for your Restaurant easily.
- Health License: Get the Municipal Corporation’s health license fee with the help of a local Municipal Health inspector.
- Fire License: You can get the fire license in around Rs 1,000-2,000, after the installation of fire extinguisher cylinders. The local fire department charge depending upon the scale of operation of the bakery.
- Trademark and Copyrights: Logo trademark, symbol or name of the shop is important for the purpose of branding and marketing of the bakery items. Proper registration forbids other people from using the same logo or symbol and helps in creating a unique identity of the bakery. The overall process of application for registration of trademarks is governed by the Controller General of Patents, Designs & TradeMarks.
4. Hire Manpower to open a Bakery
Bakery shops need an expert workforce as both taste and presentation are important when it comes to baked goods. Get the experienced and professional chef, Chef De Parties, Helpers, Service Boys and a Cashier at the display and the serving area for a high-end bakery. The total count of manpower required in the bakery is 15 and their salary usually depends on the total experience.
5. Get the Equipment Required To Start a Bakery Business
The kitchen equipments are costly for a bakery business as the equipments are made of stainless steel which is tough and long-lasting. The major equipment needed in the bakery is Planetary Mixers, Oven, Deep Fridge, Cooling Fridge, Working table, Gas stove, Cylinders, storage utensils and many other equipment. Unlike QSR or Food truck, the bakery needs new equipment for better efficiency.
6. Outline the display area of the bakery business
The front end of the bakery business should be well designed as it easily attracts the customers. A display fridge is required for cakes and pastries. Make sure the display area has proper storage and display rack for the items.
7. Install a PoS and billing software in the bakery
PoS software is important billing software you need in your restaurant. It is equipped with strong integrations such as Inventory management. To get one for your bakery business, make sure that the PoS software has features which manage the shelf life of baked items. The price of PoS software differs based on the features you wish to include.
8. Follow Right Marketing & Branding of Your Bakery Business
Market and branding are important for the success of any business and bakery is no far from it. Make sure to get a proper design logo and display board from a professional designer. This will help you to create your own unique identity and branding while packaging. Also, remember to get a well-designed menu. Initially, about 30,000 pamphlets are sufficient to market your bakery. Maintain the quality and also invest some money in an excellent display board to attract customers.
In addition, you must have a separate budget for restaurant management software as it can help to run several marketing campaigns by using customer data.
9. Decide the Uniform of Your Employees
Though the uniform are often ignored when it comes to food business. However, they are crucial as they provide a professional look and also in the branding of the bakery. It is essential that all staff members look good, well groomed. You can choose from the different types of dresses and decide to choose the best suited option such as chef coats, smart shirts and t-shirts, and an apron.
10. Other Things required to run a bakery business
For a good bakery set-up, it is essential to have one landline and two mobile numbers with two phones that would not cost more than Rs 2000 each. Also, online ordering has become common these days so it is good to have online tie-ups. It is also recommended to have your own bakery’s website. A good website would not cost more than Rs 10,000. Make sure to have an ‘Order Online’ widget on your website to attract online ordering customers. You can also make people to download your online ordering app as well.
Besides these, online social networking sites also play an important role to connect with the customers. It helps to get the feedback and reviews for further improvement of the business.
If you’re planning to open a bakery, then these steps would help you to successfully implement your plan. Just put these steps into action and start working on your plans.