India is a country of many religions but none bigger than cricket and food. And at some point in our lives we have all wished, desired and dreamt of running a cafe business. The joy of feeding people, being praised for our taste and choice of food, fun and glamour of the food business makes it a very attractive business option for many, but only few take the plunge. And rightly so because it is estimated that 94% of new food businesses shut down before turning a profit.
The reason behind this failure can be attributed to various factors, this could be wrong product market fit, high prices of products, not enough branding and thus not enough footfall causing high operational costs. Before creating a checklist to build up a successful bakery cafe business, it is essential for us to have clarity on certain points such as finalising the concept of your bakery cafe such as Takeaway, QSR or Dine-in setup, finalising the location & layout basis this.
Once finalising the concept of your bakery cafe business is done, you can start the preparation and put focus one these 5 points-
Finalising the location & getting the permits sorted: In order to attract footfall and order for your customers to find you or locate you, your bakery cafe should be at a spot where your customers are able to reach to you, locality and people in it plays an important role in setting up the image of your cafe. After deciding the location your focus should be shifting towards the Permits, for running any eatery business there are certain compliances that the food industry needs to follow to ensure goods that are safe, hygienic, and suitable for human consumption. Startups entering this sector need to obtain permits like
⁃ FSSAI license
⁃ Health Trade license
⁃ Eating house license
⁃ Fire security certificate
⁃ pollution board certificate
⁃ Shop and Establishment license
⁃ depending on the legal nature of the business, They require GST registration If the café has an annual turnover exceeding Rs. 20 lakhs
Figuring out what you’ll serve - Most fun part :) Bakery cafe business can serve many cuisines along with the staples like cakes, desserts & breads, such as Lebanese, Italian or Continental. Once you know what you’re cooking its important to create a menu linked procurement checklist, you’ll have to list down: raw material, consumables and packing material required.
Eg- if basic bakery menu - desserts, cakes, breads & cookies - is your aim then the raw material to serve the menu will be flours, oils, fats, sugar of different kinds, whipping cream and heavy cream etc. Availability of materials at whole-sale prices can be a challenge & figuring out the supply chain (vendors & markets) is a key operation before starting out.
Equipping your bakery with the right equipment: The cafe business now is a lucrative business opportunity, being in a highly competitive market, Getting the right equipment can help you produce good quality products and set you up for success. (Need some equipment suggestions). Majorly cafes are now considered coffee houses, According to a July 2020 report from Research and Markets, the global coffee shop market is expected to be worth $237.6 billion by 2025. So investing in a high-quality espresso machine can help you stand out over your competitors. Expert suggestion is to not invest immediately a lot in equipment but to go as you grow. Some of the basic equipment one can bring in order to run the bakery cafe business can be-
⁃ Coffee machines
⁃ Display counters
⁃ Cold storage set-up
⁃ Dough sheeter
Right People & Skilled Labour: You really want individuals who are focused on your vision, objectives, and values. Extraordinary café staff have a few normal qualities that make them a solid match inside the way of life of the business. Abilities can be educated, however values can’t be; this is the very thing you ought to search for while employing staff for your eatery.
Assuming that you’ll be setting up with one outlet in the very start you’ll be needing the basic staff which will include a team of 3-7 chiefs depending on the menu mix, followed by sales crew, backhand team which includes supporting staff, accounts, purchase and inventory team and moving on you’ll require a team of marketing. However, it is not necessary for you to have everything from the very start, these can be added to your business with gradual progression.
Marketing and Social media: In today’s developing world and the technology, marketing is one of the most important aspect to promote your business and compete with your competitors, therefore setting up or having a marketing crew onboard will be a plus point in setting up your image on all sorts of platforms. From setting up a website to push your business online, to promoting your brand and brand deals on all social media platforms, marketing is one of the most useful aspects in your business.
All this checklist pointer may look overwhelming but the joy you derive out of creating a successful food brand is unparalleled, the bakery industry is a business of celebration and happiness and living amidst it is bound to give you a lot more smiles and some more kilos! The brand recognition, happy customer reviews and satisfying returns on your investment are all worth the hustle that you put in to make it all work.
Happy Baking & Happy Feeding!