People in India are reviving their passion for food by launching their food businesses. Along with it, there is the startup boom that has swept the country, inspiring many people, particularly women, to create their restaurant. A Bakery Shop is a retail or wholesale business that sells baked goods to customers. This is achieved through a physical location.
The business of selling baked goods has been practiced for thousands of years. It has, however, evolved throughout time as a result of the fame and popularity that baking has gained. While supermarkets and grocery stores are eager to sell pre-sliced breads, cakes, and pastries, many people still prefer to have their flour baked by a local artisanal bakery. This could be due to personal preference or a long-standing family custom. The recent trend of commercializing baked goods has raised the quality standard in the baking industry. As a result, baking is becoming more popular in both small and large bakeries.
The profit potential for a bakery is good, but starting a food business is never easy. A lot of things have to be taken care of.
Below is a list of few things that must be considered to own a bakery:
Bakery Business Plan: The first and most important step in starting a successful Bakery Business in India is to develop a bakery-specific business strategy. This will assist in streamlining operations, determining budget allocation, and planning for the company’s future growth.
A perfect bakery business plan must include:
- A quick summary of the bakery business that one is thinking.
- An overview of the company
- An overview of the current trends in the industry.
- SWOT (Strengths, Weaknesses, Opportunities) Analysis
- An operating plan for efficiently streamlining operations.
- Financial analysis will support in the planning of the business’s budget as well as the cost-benefit analysis.
- A well-thought-out marketing strategy aimed toward bakery product buyers.
Location of the bakery: The bakery’s proper location is important, especially if it wishes to do well in the retail market. A reputable market or high-end shopping streets may be ideal locations. The goal of selecting the location area is to determine how much customer traffic the bakery will receive. The bakery industry thrives in easily accessible and visible front area establishments on the ground floor. If the budget allows, a two-floor shop with a kitchen on the first floor and a showroom on the ground floor would be the best option. A suitable water supply and drainage system will also benefit in the bakery’s effective operations. A legal agreement about the renting or purchase of property is required to obtain a bakery license. In the case of a rental arrangement, the property owner must provide a No Objection Certificate (NOC) stating that he has no objection to the shop being used for bakery purposes. Housewives are also starting to run bakeries from their homes these days. They offer baked goods to wholesalers, merchants, and customers from their homes.
License required to start Bakery Shop in India:
The 5 major licenses required for bakery business in India are:
- FSSAI License: To get an FSSAI license, it is advisable to seek professional assistance. To obtain this license, you must submit all relevant documents and pay the FSSAI license fee. Because the process is a little complicated, it’s best to purchase a five-year food license to avoid having to renew it every year.
- GST Registration: It is recommended that you seek the advice of a Chartered Accountant. All other indirect taxes in business have been removed as a result of the GST Bill. It’s necessary to understand the use and consequences of the bakery owner’s GST on the bill.
- Health License: A Municipal Corporation Health License is provided by a local Municipal Health Inspector for some fee.
- Fire License: During the installation of fire extinguisher cylinders, the local fire service charges a fee based on the size of the bakery’s business.
- Trademark and Copyrights: The use of a trademark, such as a logo, symbol, or the shop’s name, is necessary for bakery item branding and marketing. Trademark Registration prevents others from using the same logo or symbol. As a result, the bakery’s identity is unique. Copyright recipes are also available. Even if the chef changes, this will help to protect the taste and impact of specialty items on customers. The Controller General of Patents, Designs, and Trade Marks manages the application procedure for trademark registration. Only when the application has been approved you can use the symbol TM, and once registered, you can use the symbol R. The Copyright Office, on the other hand, is in charge of copyright registration applications.
Manpower: Bakeries demand highly skilled and trained workers who can create goods that are both visually appealing and delicious. Head Chefs, Chef de Parties, and Commi level chefs are typically hired by high-end bakeries. In addition, helpers, service guys, and cashiers are needed.
Kitchen equipment: The equipment must be durable and long-lasting. Stainless steel is used in most cases. Planetary mixers, ovens, deep fridges, cooling fridges, gas stoves, cylinders, storage utensils, and molds are among the most important pieces of equipment in a bakery. Kitchen equipment for bakeries is pricey. For increased efficiency, new equipment must be purchased.
Display area: The bakery’s front end must be focused on creating a display area that is well-designed and constructed in such a way that it is visible and attracts walk-in consumers. This is necessary to increase customer traffic. Cakes and pastries can be displayed in display fridges, and products can be shown on a display rack.
Billing software: Inventory management is now included in billing software designed specifically for bakeries. There are options for extending the shelf life of baked goods. This is also where hazardous inventory is checked. As a result, making the right software selection is crucial.
Marketing and Branding: A properly designed logo and display board are some of the common marketing and branding techniques followed by bakeries. Also, a properly designed menu and pamphlets attract customers.
Staff uniform: It is necessary to provide the bakery a professional image, and it also increases to the bakery’s brand value. The employees must appear hygienic. Chef coats, fashionable shorts or t-shirts for service employees, an apron, a head cap, and gloves are among the items required.
Apart from these essential requirements, the bakery should consider having landline and mobile phone lines. Because online ordering has become so popular, it’s necessary to have online connections. For some, building a website is a challenging decision, but online social networking platforms can help you interact with clients. This helps in getting feedback and reviews to improve the situation.
Do you have the confidence and motivation to start a food business in India?
MeraLegal will assist you in obtaining all appropriate food licenses and registrations to begin your business; please click on the following link to contact one of our consultants.