How to Start an Ice-Cream Parlour in India in 2022?

According to a report, the Indian ice-cream industry would increase at a CAGR of 14% between 2021 and 2026, reaching a value of around INR 442 billion by 2026.
If you want to establish an ice cream business, you’re on the right path. This article will guide you towards how to open an ice cream parlour in India.

Selecting Format For Your Ice-Cream Business

The first stage in developing your ice cream business plan is deciding what type of ice cream parlour you want to create. There are numerous ice cream parlour types available today, including ice cream cakes, nitrogen ice cream, live ice cream counters, and others. You can also purchase a franchise of a well-known brand. Buying a franchise might be a wise idea if you are starting a business with no expertise.

Finalizing the Location

Before deciding on a location, thorough market research should be conducted. Because the majority of individuals buy ice cream on the spur of the moment,  the ice cream shop should be easily accessible and have enough space for parking. It is advantageous to have a parlour in a location with a high footfall. Choose a position near markets, business areas, or family restaurants.

Required Investment

An ice cream parlour necessitates a specific set of equipment. The primary equipment required is a cold stone refrigerator, which will cost between INR 2,000,000 and INR 3,000,000. Aside from that, you’ll need raw materials for daily use, utensils, a storage room, and packing materials. A backup generator for electricity is also a must while establishing an Ice-cream business.
The average investment required ranges from INR 5,00,000 to INR 8,00,000, depending on the sort of parlour you choose to open. High-end ice cream parlours can cost between INR 20,00,000 and INR 30,00,000.

List of Licenses Required

To open an ice cream shop in India, you must first obtain the following licenses and registrations:
1. Shop & Establishment Act License
2. Company Registration
3. GST Registration
4. FSSAI License
5. Trade License

List of Equipment Required

  1. Ice-Cream Making Machines
  2. Deep Freezers
  3. Storage Cabinets
  4. Packaging materials
  5. Tables and chairs
  6. Cutlery and plates
  7. POS Software for billing

Types of Ice-Cream Products to Offer

  1. Low-fat ice cream
  2. Frozen desserts
  3. Frozen yoghurts
  4. Ice cream cakes
  5. Ice cream milkshakes
  6. Frozen Yogurt
  7. Sorbet
  8. Sherbet

Staff Requirement

Depending on the format of the business, you will need to employ ice cream chefs, serving employees, and cleaners. You will not be successful if you do not hire the appropriate individuals. Your employees are your most valuable asset, so you must have a strategy in place for recruitment.

Market Research

Establishing a successful ice cream parlour begins with extensive market research. Conduct market research to learn about your clients’ expectations in your area, the options that are currently accessible to them, and look for opportunities that are currently missing in the local market.

Company Registration

Individuals who want to start an ice cream manufacturing business must register as either a private limited company or a Limited Liability Partnership (LLP). MSME registration is mandatory for manufacturing units where the investment in plant and machinery does not exceed Rs.10 crores.

Regular Innovation

You should delight your loyal customers every once in a while with your innovations to enrich their experience. Nitrogen ice cream is the newest addition to the ice-cream industry, and it has just become a sensation. Experiment with new things regularly, and never stop innovating.

Advertising

A. Social Media Promotion

Engaging with your customers using social media sites such as Facebook, Twitter, and Instagram is an excellent approach to increase business. Social media is growing more widespread in our daily lives, and because it requires little time and effort, it is an appealing advertising alternative.

B. Creating a Website

A website serves as a portal for customers to learn everything about your company. Creating a website used to be a difficult task, but now you can easily construct a basic yet appealing website for customers with a few clicks.

Partnering with Delivery Partners

Collaboration with Swiggy, Zomato, and other online food ordering services is recommended. Ensure that your company is listed on these websites. Also, consider using other free tools to maximize your business’s exposure.

Loyalty Programs

Rewarding customers regularly is an excellent strategy to build brand loyalty and retain customers. Loyalty programs will not only attract new customers but will also keep your existing ones.

Promotions

Special offers are an excellent approach to entice visitors. Consumers will be drawn in by the potential of discounts and fantastic bargains. Lure your customers with fine experience to retain them for long.

TOP 18 TIPS FOR STARTING A BAKERY BUSINESS IN INDIA

In India, the bakery business has grown to be one of the most popular food services. People are in high demand for products such as pastries, cakes, bread, cookies, and other snacks.
In 2020, the Indian bakery market was estimated to be worth roughly USD 7.60 billion. Between 2021 and 2026, the market is expected to increase at an annual rate of 8.5 percent, reaching a value of USD 12.39 billion. 
Whereas, During 2021, The Asia-Pacific region dominated the worldwide bakery ingredients market, with a CAGR of roughly 6.6%.
This business model is unquestionably profitable, given the rapid expansion in this industry. If you want to operate a bakery shop in India, you’ll need a thorough understanding of how to start a bakery business. This blog will walk you through specific steps on how to start a successful bakery business in India.

Bakery Business Plan

The concept of your bakery business, as well as the type of service you’ll give, must be included in your bakery business plan. It should include information about your bakery’s layout and service style. An overview of your restaurant’s legal structure and ownership and your restaurant’s future goals must also be included within your business plan.

Operating Plan

Elements that assist you in your bakery operation, such as order-taking, customer service, employee management, and more should all be included in your bakery’s operating Plan.

Marketing Plan

Your bakery business plan should also include a marketing strategy to increase your business presence. It should precisely elaborate how your business is going to attract clients and advertise your bakery.

Understanding Food Industry

Before you start a bakery business, you must conduct an industry analysis. It will assist you in identifying your bakery’s target demographic and analyzing local competition.

Financial Analysis

The operational costs, cash flow statement, and other expenses should be included in your bakery business plan’s financial analysis to get an overall idea of your business’s financial position.

Deciding a Bakery Format

These are a few bakery options to explore:

Storefront Bakeries

In all Indian cities, this is the most frequently found business. It can be started by anyone with a small team and basic baking skills. This business model requires a little more space than a standard grocery shop where customers can pick up baked goods.

Counter Style Bakeries

This is the most common and recognizable bakery format, and it has its advantages. With this style, you can serve any number of customers but because of the lack of a dining area, your options for serving meals and retaining consumers on-site are restricted.

Specialty Bakeries

These types of bakeries don’t have a large selection of products, but they do take prior orders for special parties and occasions. People offering these types of bakery services are highly experienced and their products are of greater quality and taste better, although they are significantly more expensive.

Food Truck

Launching a food truck is a low-cost alternative for launching a bakery business and can help you reach a wider audience. You can enable your food truck with baking equipment by customizing it or you can simply bring along your baked products and park your food trucks on the streets and near offices.

Home bakery

If you are not ready to renting or purchase large-scale equipment, then starting a bakery from home can be a great alternative.  You’ll need less money to get started, and you’ll be able to sell your products online and at local markets. You could even be able to work out a contract with local coffee shops or cafes.

Bakery Cafe

Bakery Cafes require renting a commercial facility in a busy area. You will also need to hire bakers and maintenance staff that can add up to your expenses. These bakeries usually offer quality products and recruit experienced employees.

Choosing the Right Location

Discovering a commercial real estate agent who specializes in finding business spaces for buy or rent might make your hunt a lot easier if you’re creating a physical presence. You’ll want to make sure your agent has a lot of expertise in the town you’re interested in. You should also obtain a No Objection Certificate (NOC) and other legal agreement from the property owner stating that he has no objections to his property being used for commercial purposes related to food industry. Also, make sure that the area has an adequate water supply and drainage system.

Purchasing Bakery Equipment

You’ll need commercial-grade bakery equipment to help you crank out all those baked goods. You can also save money by purchasing used bakery equipment because operating a bakery requires modern equipment to improve efficiency. Below is a list of equipment you will need for your bakery business:

List of Baking Equipment:

  1. Aprons, Gloves and Hairnets
  2. Refrigerator and freezer
  3. Air-tight storage boxes
  4. Choppers
  5. Slicers
  6. Turn Over Machine
  7. Cake Decor accessories.
  8. Ovens
  9. Mixers
  10. Pans
  11. Packaging Bags

Get the Required Licenses

It is advisable to obtain all necessary permissions prior to opening a bakery.

FSSAI License

To obtain this license you can apply on the government’s website (www.fssai.gov.in). You can also get this done through a variety of firms for roughly 5,000 INR, which includes all paperwork and a license cost. The FSSAI permits for a five-year tenure cost 15,000 INR. With this you can avoid annual renewal expenses, it is recommended that you obtain a five-year food license.

Health License

Health license can be obtained from the Municipal Health Inspector. It certifies that your company follows all of the Health Department’s health-related regulations. Getting this license can cost you around 2,000 to 3,000 INR.

Fire License

The Fire Department will issue you a Fire NOC after everything is in place. Once your fire extinguisher cylinders are all in place, you can obtain a fire license for a nominal charge. This one can cost you around 1,000 to 2,000 INR.

GST Registration

Every bakery deals with readymade food products, thus they must pay tax on their goods and services, which necessitates GST registration.

GST is taxed 12% on bakery items and branded snacks while other commodities such as bread are taxed at 0%, pastries/cakes are taxed at 18%, and so on. The food GST rates vary depending on the item. As a result, the final payment is based on the total value of items purchased.

Trademark Registration

Your bakery’s logo must be registered in order for it to have a distinct identity.

How Much Does It Cost to Start a Bakery in India?

The cost estimates for starting a bakery in a commercial location look like this:

Rent

Rent in a respectable region might range from 20,000 to 40,000 INR per month, depending on the area covered by the business. 

Equipment

Bakeries require a variety of tools, including  ovens, processors, grinders, and more. These might cost anything between 5,000 and 1,00,000 INR.

Billing and POS System

For any bakery to function, a POS (Point of Sale) billing system is required. A good unit might cost anything between 10,000 and 50,000 INR.

Staff

You might require five to ten people to run a decent-sized bakery. Their monthly salary and other related expenses might reach 1,00,000 INR.

Licensing

Permits and licenses might cost up to 20,000 to 30,000 INR in total. These costs are roughly estimated considering the mandatory requirements for opening a bakery business. Costs may increase in case you add other expenses like a marketing plan and more.  

Preparing Display Area

To draw more customers, the bakery’s display area should be well planned and made in such a way that every item is visible. The display room must have a display rack and adequate storage for the products to showcase in the most effective way.
Find a way to make a freshly baked cookie smell waft into the foyer of your bakery. On your display shelf, place your most exquisite baked goods at eye level.

Marketing for Your Bakery

Marketing is critical to the success of any business. Hire a professional designer to create a well-designed logo and display board. Aside from fliers, consider investing in a display board to draw in clients. Printing attractive pamphlets, social media activities, interesting packaging, creative product names are a few areas to help you start planning your bakery’s marketing. This will not only assist you in developing your own distinct identity, but it will also assist you in branding and marketing. 

Selecting Product Pricing

To figure out how much to charge for your products, you’ll need to first figure out your monthly business operating expenditures. Keep in mind your business expenses, operating costs, taxes, and marketing costs. This will assist you in determining how much money you’ll need to meet your complete operating costs. You’ll be able to come up with pricing once you’ve determined your breakeven point and production costs per baked food. After that, you may figure out how much profit you want to make and add it to the price of each product you offer.

Installing a POS Software

These are modern times and reliable POS software is now the only software you need to manage your entire restaurant operations. If you’re buying one for your bakery, make sure it has tools like inventory management monitoring because you’ll be restocking items more often. 

Funding for Bakery

Consider taking a business loan to help you fund your new bakery because opening a bakery business can be expensive and not everybody can afford it. Also, it might be difficult to find finance for a new firm. Choose a loan with the lowest interest rates and the longest repayment terms possible.

Partnering with Food Delivery Providers

The demand for online food delivery is booming. For a new bakery business, it’s recommended that you register your business with food delivery partners to generate online orders. Food delivering players like Swiggy or Zomato are dominating the market and can be utilized to get started. It would help you boost your online presence and generate online orders for your bakery.

Register for Taxes

Learning about various taxes, regulations, and licenses before opening a bakery will save you money and time. Consider consulting a tax professional to make sure you understand your tax obligations and are on schedule to complete the necessary papers on time.

Hiring Manpower

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, in most cases, a Head Chef, Helpers, Service Boys, and Cashier are required.

Deciding Staff Uniform

When starting a food business, it’s common to overlook the importance of staff attire. They are, however, necessary because they aid in the delivery of a professional appearance as well as the bakery’s branding. All employees must present themselves as well-dressed and hygienic. 

Bakery Business FAQs

Following is a list of questions that are mostly asked by customers to bakery businesses. Read them carefully and prepare answers accordingly.

  1. What if I need to cancel once I’ve paid?
  2. Do you offer gluten-free options?
  3. Do you have a minimum order?
  4. What type of payments do you accept?
  5. Do you provide Fresh Flowers for decoration?
  6. Do you sell to wholesale clients?
  7. How long can our cake or pastries be left out?
  8. Do you accept a Last minute order in case of emergency?
  9. Do you sell Cake Toppers?
  10. What will happen to our bill if we move venues?
  11. Do you offer classes at your bakery?
  12. Is there a fee if I have to reschedule my wedding or celebration because of Covid?

Conclusion

To summarize, if you are enthusiastic about baking and want to build a brand around it, opening a bakery is a terrific choice. Your business can take off if you carefully follow above-stated steps.