India is a country of many religions, but none are bigger than cricket and food. And at some point in our lives, we’ve all wished, desired, and dreamed of running a coffee business. The joy of feeding people, being praised for our taste and choice of food, the fun and glamor of the food industry makes it a very attractive business option for many, but only a few take the plunge. And rightly so, as an estimated 94% of new food businesses close before making a profit.
The reason for this failure can be attributed to various factors, it could be poor product market fit, high product prices, not enough branding and hence not enough footfall resulting in high operational costs. Before creating a checklist for building a successful bakery cafe business, it is essential for us to have clarity on certain points such as finalizing the concept of your café-bakery such as Takeaway, QSR or Dine-in setupfinalizing the location and layout.
Once you have finalized the concept of your bakery cafe business, you can begin the preparation and focus on these 5 points-
Finalization of location and sorting of permits: In order to attract visitors and direct your customers to find or locate you, your bakery cafe must be in a place where your customers can reach you, locality and locals play an important role in creating the image of your coffee. After deciding the location, you should focus on permits, to run any catering business there are certain compliances that the food industry must follow to ensure products that are safe, hygienic and fit for human consumption. Startups entering this sector must obtain permits like
⁃ FSSAI license
⁃ Healthcare Business License
⁃ Restoration license
⁃ Fire safety certificate
⁃ pollution office certificate
⁃ Store and Establishment License
⁃ depending on the legal nature of the business, they require GST registration If the cafe has an annual turnover above Rs. 20,000,000
Figuring out what you are going to serve – Fun part 🙂 Bakery cafes can serve many cuisines as well as the basics like cakes, desserts, and breads, like Lebanese, Italian, or continental. Once you know what you are cooking, it is important to create a menu related procurement checklist, you will need to list: raw materials, consumables and packaging material required.
For example, if the basic bakery menu – desserts, cakes, breads and cookies – is your goal, the raw material for serving the menu will be flours, oils, fats, sugar of various kinds, cream whipping and heavy cream, etc. Availability of materials at wholesale prices can be a challenge and understanding the supply chain (suppliers and markets) is key before you start.
Equip your bakery with the right equipment: The coffee business is now 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). Most cafes are now considered cafes. According to a July 2020 report by Research and Markets, the global coffee market is expected to be worth $237.6 billion by 2025. So investing in a high-quality espresso machine can help you stand out from your competitors. The suggestion from the experts is not to immediately invest a lot in equipment, but to go with it as you grow. Some of the basic equipments that one can bring to run the bakery cafe business can be-
⁃ Coffee machines
⁃ Show counters
⁃ Installation of a cold room
⁃ dough sheeter
Good People and Skilled Workforce: You really want people who are focused on your vision, your goals, and your values. Exceptional cafe employees have a few normal qualities that make them a strong partner in the corporate lifestyle. Abilities can be educated, but values cannot; this is exactly what you need to look for when employing staff for your restaurant.
Assuming you will be setting up an outlet at the very start, you will need the core staff which will include a team of 3 to 7 chefs depending on the composition of the menu, followed by a sales team, a team of support which includes support staff, accounts, purchasing and inventory team and moving on, you will need a marketing team. However, you don’t have to have everything from the start, these can be added to your business with gradual progression.
Marketing and social media: In today’s developing world and technology, marketing is one of the most important aspects to promote your business and compete with your competitors. Therefore, the establishment or presence of a marketing team on board will be an advantage for the establishment of your image on all kinds of platforms. . From creating a website to push your business online to promoting your brand and offers on all social media platforms, marketing is one of the most useful aspects of your business.
This whole checklist pointer may seem overwhelming, but the joy you get from building a successful food brand is unparalleled, the baking industry is a business of celebration and happiness and living in the midst of it will inevitably give you many more smiles and a few extra pounds! The brand recognition, happy customer reviews, and satisfying ROI are all worth the effort you put in to make it all work.
Happy baking and eating!