With the start-up wave hitting the country, and a major disruption seen by the Restaurant Industry has encouraged a lot of people to start up their restaurant venture. Professionals and home cooks alike are now fuelling their passion for food and to get into the food business. Baking is one such passion that has been catching up lately, with many big and small bakery businesses cropping up.
- Create A Bakery Business Plan
We should create a bakery business plan as it would help you in streamlining the operations, deciding the budget distribution and planning the future development of your bakery business. It ideally should include:
- Summary of the Bakery Business Plan
- Business Overview
- Industry Analysis
- SWOT Analysis
- Operations Plan
- Financial Analysis
- Marketing Plan
- Choose A Location for Bakery Business
One of the first steps to how to start a bakery business in India is to decide a good location. For a bakery, the ideal location is a reputed market or high-end shopping streets where footfall is high. Ideally, front area shops on the ground floor which are easily accessible and visible are apt for the bakery business. It is advisable to have a 500 sq. ft shop, divided into two floors, to build a functional kitchen on one level, and have a display cum serving area at another. However, this is subjective to the space available, and your own choice.
For a 1000 sqft area divided between two floors, the rent should not exceed more than Rs 60-70k. Our expenditure would be around Rs 1,80,000 to acquire the place where the bakery will operate.
Also, while finalizing the location of the bakery, it is essential to ensure that the place has a proper water supply and drainage facility. Get an appropriate legal agreement for the property as it is also required in paperwork and other licenses. We should even get a No Objection Certificate (NOC) from the property owner that he has no problem that his place would be used for food outlet purposes.
- Get All Licenses Required to Open A Bakery Business in India
The bakery business needs five licenses:
- FSSAI license,
- GST Registration
- Local Municipal Corporation Health License
- Police Eating House license
- Fire License.
Out of all the permits, FSSAI, GST, and Local Municipal Corporation Health License are the most important ones to have at the starting of the outlet. Police eating house and fire license can be acquired once we commence our operations. However, it is recommended to have the entire license in place before starting a bakery.
- Food License: To apply online, we can do it through its website (www.fssai.gov.in). We can also get this done through various agencies that charge around Rs 5,000 for the complete paperwork and license fee. It is advised 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: It can be done with the help of a Charted Accountant.
- Health License: We can get the Municipal Corporation’s health license fee with the help of a local Municipal Health inspector. This would cost us around Rs 3,000.
- Fire License: We can get the fire license with a mere fee of Rs 1,000-2,000, after the installation of fire extinguisher cylinders.
Important Documents Required for FSSAI Registration.
- Form duly completed and signed by the Proprietor(Restaurant Owner).
- Identity Proof
- Address Proof issued by Government Authorities
- List of leading directors and stakeholders in the business with their identity proof
- Valid Email ID and Contact Number
- Food Safety Management plan (You can get these documents from the nearest Notary or can be downloaded online)
- Proof of possession of premise(Sale Deed, Rent Agreement, Electricity Bill, etc.)
- NOCs from Municipal Corporations or local bodies.
- Kitchen Layout Plan
- Water Testing Report from an ISI approved the facility
- Partnership Deed/ Affidavit of Proprietorship (in case of business operated in other premises or case of partnership firm)
- List of Food Category
- Types of equipment to be used.
- Medical Certificates of Employees.
- Get Manpower Required to Open A Bakery.
Bakery shops need an expert workforce because both the taste as well as the presentation is essential in the case of baked goods. For a high-end bakery, you need a Head Chef, Chef De Parties, Commi level Chef, and Helpers, plus Service Boys and a Cashier at the display and the serving area. The total count of manpower required in the bakery is 15. The salary of the chefs, Commi, and helpers depend on their experience.
- Buy Equipment Needed to Start A Bakery Business.
The kitchen equipment is costly for a bakery business since each equipment is made up of stainless steel which is tough and long-lasting. The major equipment required in the bakery is Planetary Mixers, Oven, Deep Fridge, Cooling Fridge, Working table, Gas stove, Cylinders, storage utensils, and other equipment.
- Design the Display Area of Bakery Business.
The display area or the front end of the bakery business should be well designed and created in a manner that every item is noticeable to attract walk-in customers. We mainly require a Display fridge for cakes and pastries. Other than the refrigerator, the display area should have proper storage and a display rack for the items.
- Install A POS & Billing Software in Bakery.
The POS software is not just a billing software anymore. Equipped with powerful integrations such as Inventory management, the POS software is now the only software one need in his restaurant. While purchasing one for a bakery business, we have to ensure that the POS software has features to manage the shelf life of the baked items, robust inventory management as you would be dealing with perishables. The price of POS software is likely to differ based on the features you wish to include. The cost of the POS would range around Rs 30,000 a year.
- Do Right Marketing & Branding of Bakery Business.
Market and branding are essential for any business to flourish, and a bakery is no stranger to this. We should Get a properly designed logo and display board from a professional designer. This will not only help us to create our own unique identity but will also help in our branding while packaging. Also, we have to remember to get a well-designed menu. For the first few months, around 30,000 pamphlets are good enough to market our bakery. These 30,000 pamphlets will cost us somewhere around Rs 30,000, with good paper quality. Apart from pamphlets, we have to invest some money in an excellent display board to attract customers. A well-designed display board cost around Rs 25,000.
- Decide on The Staff Uniform of Employees
Staff uniforms are often ignored while opening a food business. However, they are essential as they help deliver a professional look and also in the branding of the bakery. It is vital that all the staff members look good, hygienic and well dressed. We can choose from different types of dresses such as chef coats, smart shirts and t-shirts, and an apron.
- Other Things Needed to Run A Bakery Business Plan.
Since it is a bakery, it is mandatory to have one landline and two mobile numbers with two decent phones which would not cost more than Rs 2000 each. As online ordering has become a rage these days, it is also important to have online tie-ups. It is heavily recommended that we have our own bakery’s website. A good website would not cost more than Rs 10,000. Also, we have to remember to have an ‘Order Online’ widget on our website to attract online ordering customers. We can also go for our Online Ordering App as well.
The total approximate cost of opening a bakery in India is around Rs 15 lakhs. However, the cost of equipment and location can lead to considerable variance in the approximate cost.
Remaining amount is left for Operational Expenses.