How to open a bakery shop in India

 How to open a bakery shop in India

How to open a bakery shop in India

If you are thinking about a business then choosing to start your own bakery shop is a wise decision!

 Bakery is very popular in India.  There is a bakery in almost every street of Indian cities.  Opening a bakery presents many unique challenges that are different from other types of businesses.

 1. Get your license and permit

 With a small scale business, some legal and formalities have to be followed which the bakery shop has to follow which must be fulfilled to make your cake shop legally acceptable.

  •  Apply for the required license and food permit for any state from the Department of Health.

  •  Select one of the main operating structures for your small business, such as a corporation, limited liability company, partnership or sole proprietorship.

  •  Your bakery business requires 5 licenses: FSSAI license, GST registration, local municipal health license, police eating house license and fire license.

  •  Food license: You can apply online through its website (  You can also get it through various agencies which charge around Rs 5,000 for full paperwork and license fee.  It is advisable to get a five-year food license every year to avoid renewal fees. The fee for a five-year FSSAI license is Rs 15,000.  Learn how to get FSSAI license for your bakery here.

  •  GST registration: This can be done with the help of a chartered accountant.  Here's how to register GST for your go bakery.

  •  Health License: You can get the Municipal Health License Fee with the help of local Municipal Health Inspector.  This will cost you around Rs 3,000.

  •  FIRE License: After installation of fire extinguisher (FIRE) cylinder, you can get a fire license with a fee of Rs 1,000-2,000.

 2. Choose your shop location well

 The place of the shop plays a huge role in the success.  Even though the market for the bakery business is everywhere, it is important to know that not everyone can be a potential buyer.

 Although a great location cannot guarantee success, a bad location will almost always guarantee failure.

  •  There should be perking facility at your shop.

  •  Also, pay attention to the competition in the region, the less competition, the more sales.

  •  The best location combines visibility, affordability and rental conditions.

  •  The fare for a place can range from Rs 10,000 to Rs 10 lakh depending on the location and size of the city, bakery shop.

 3. Be prepared for the upfront cost -

 Get ready for the initial start-up cost.

 The total estimated investment for starting a bakery business in India is around Rs 15 lakh.  However, the cost of equipment and space can significantly vary the estimated cost.

 4. Raise the required capital to open your bakery -

  •  Check with your bank for a business loan.

  •  Typically, small bakeries are invested by the family.

 5. Purchase the necessary equipment to start a bakery business

 Kitchen appliances are expensive for a bakery business as each of the appliances is made of stainless steel which is hard and long lasting.  Major appliances required in the bakery are Planetary Mixers, Ovens, Deep Fridges, Cooling Fridges, Working Tables, Gas Stoves, Cylinders, Utensils, and other appliances.

 But to reduce costs, you can work with older equipment.

 6. Appoint employees if necessary

 To run a cake shop or bakery, you will need to hire staff - everyone, helpers, cashiers to bookers.

  •  Salaries of chefs, accountants and helpers depend on their experience

  •  Of course, if you want, you can run most of the business functions behind the scenes, but you will need help to focus on your customer.

 7. Research the competition in your field -

  •  Visit other bakeries in your area.  Find out if there is a demand for the goods you sell.

  •  List all the bakery menu ideas you find from around the best performing bakeries.

 8. Treat your customers well-

 Undoubtedly, a pleasant in-store customer experience increases customers' chances of returning.

  •  Produce quality bakery items, as "quality" is the best strategy.

 9. Set the appropriate selling price -

 If the price of your bakery item is too high for your customers' ears, they will buy from someone else.

  •  Set prices by looking at prices set by other bakery shops nearby.

  •  If there are no other bakery shops nearby, know how much profit a non-organic store makes, which it sells.  Now, base your pricing on that broadly.

  •  Lowering your prices can result in a loss.

  •  Price-sensitive customers can stop visiting your store because pricing is too high

 You may have to increase and decrease prices until you find the best pricing point for your bakery item.

 10. Advertise Your Bakery Offline!

 Think about how you want to advertise your bakery business.

  • By advertising the logo, local advertisements and promotions can bring customers to your store.

    • Advertise in print.  Place an advertisement in the newspaper, distribute it to people across the city during the store launch

    •  If possible, consider placing a limited number of coupon passes to call potential customers in the store.

 11. Promote online:

 It is very important to realize that this generation of consumers has great buying potential.  They are increasingly dependent on the Internet to get information.

 First of all, use your store's website and social media platform for marketing your bakery business.

  •  Display your store on Google Map.

  •  Also use social media like Facebook to reach the growing online consumer population

 12. Adopt technology to handle your bakery business:

 It is easy to start a business but it is very difficult to run it successfully.

  •  First of all, you have to know how to keep an eye on what you sold in your cake bakery.  For this, start using inventory management app which makes your work easier.

  •  Managing small business in India alone or with some people without any confusion is the biggest challenge today.  Adopt business accounting software like business that helps you to run bakery, manage inventory and do account related work.  Many bakery owners use GST accounting software like business to make their life easier.

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