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Simple Steps To Start a Bakery Business in India

by Tandava Krishna

The gourmet food market is a huge industry in India and is growing at an exponential rate. People love having delicacies and as the income is increasing, they are willing to spend more on it. The rise in demands has attracted many investors. You can find cafes and restaurants at every corner in the urban cities and the trend is reaching the suburbs. One such is the Bakery Business which is rapidly growing and shows great profit patterns. A bakery is a place where flour-based baked items are sold.
In ancient times, people used to bake their own bread but as time passed and people began to be busier with other jobs, baking became a retail business and baked items could be bought from shops. Centuries have passed since then and people with their creativity with design and flavors have made it not just a necessity but a delicacy. The mouth-watering exotic flavored cakes and donuts are the real deal and people are happy to pay for such delicacies.

Let’s have a look at how you can start Bakery Business in India

Create a Plan

Decide beforehand what kind of Bakery you want to open. Is it just a retail shop or you’ll have in-house bakers and will send your own produce. With that decide what will be your reach. If you want an offline store or an online store? If it is an offline store, does it have a sitting area, or is only available for pick-ups or you will also hand out deliveries. And if it is an online store, what storage area you are going to keep your goods in, and what will your area of service.
Make a plan for what is going to be the size of your business at first. The growth will only follow if you thrive in the market and the bakery business needs investment and time as the goods which are sold are perishable and cannot be stored. One should always be ready for bad days and thus also take care of the amount that is produced on a daily basis.


The location of your bakery business matters a lot. Try to keep your shop away from a place where there are already several stores available. Open a store in a densely populated area so even if there are competitors around, you will always have people buying from you. Buy or rent a space that is big enough to equip all your baking equipment and has storage space for your baked items.

Permits and Licenses

Taking permission to open a bakery is of prime importance. To open any food-related store, you have to take many approvals from the government and undergo many tests to get a license to set up a bakery business. Firstly, you will have to take permission from the landlord (if your place is rented) about making the use of space commercially as you will be taxed on that according to commercial regulations. Then for setting up the bakery business you need to apply for around four-five licenses. This includes the GST registration, the FSSAI License, the Fire License, Local Municipal Corporation Health License, etc. Make sure you are ready with all the paperwork and to take multiple rounds of government offices, beforehand!

Get the Manpower

It is usually noticed that a Bakery Business is not just opened for profit. It is a big source of creative representation and skill show. If you are a retail bakery hire chefs and bakers who understand the art and do not compromise on quality and taste. The more variety you have, you more popular you will be. Along with that, have in-house staff that will carry out tasks like serving, billing, loading, shifting, etc. Once you have a store and you desire to build it bigger, have a trusted group of people who will help you on each level as this is not a task that can be handled alone.
Along with the in-house staff, if you are opening your horizon for delivery service, have delivery persons ready to go who can handle your baked items with care and reach the destination on time.
Build a team you can trust!


It is a prerequisite. You cannot have a bakery business without having the proper equipment in which you will bake your products. So, make a list of the equipment according to the items that you will be selling. Remember, this is not something that you can compromise on. From a big refrigeration unit to a simple mixer, all are of prime importance.

Decide the Menu

This always has a scope of improvement but decide on a basic menu that you are sure will make people happy. Keep the items from the menu always available and give your customer time to develop taste for your products.

Understand your customer

Focus on the needs of your customers. Follow the pattern of what are the products which are demanded by them the most and keep in mind the variety of products they would like to have. Keep the stocks up and the quality of your products intact. Provide them with the service they demand and listen to their queries and concerns. In the Bakery Business people don’t shy away from buying fancy products so go overboard if you are one who wants to sell them, make sure some prospects will be willing to buy them too, or else you’ll never be able to gain profit.

The gourmet business is very likely to expand in the coming years and that is why it is attracting a lot of people who see themselves doing business in the future. In a country like India with so many delicacies, everyone thinks of themselves as a connoisseur. It is hard to impress them but you know that once they are impressed, they will be your faithful customer. Bakery in India is mostly seen as dessert selling shops and is admired a lot so setting foot in the bakery business mostly yields a good profit. Keep the basic in mind and enjoy the process!

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