In recent years, there has been a continuous growth in the demand for baked goods. Baked products provide convenience and affordability to customers, and the increased demand has prompted many home bakers and chefs to enter the bakery sector.

According to the IMARC Group, the Indian bakery sector was worth over $9.6 billion in 2020, making bakeries a very profitable restaurant concept. Baking is a creative outlet for many people, but operating a bakery necessitates diverse skills. In this blog, we’ll go through how to open a bakery stop in India.

Apply for Quick Business Loan

Business Plan to Open A Bakery Shop in India

Choose the sort of shop you want to open 

The first and most important stage is to determine what type of bakery one wishes to open. Opening, owning, and operating a bakery daily is much more than providing delectable delicacies. It includes getting business loans, formulating a strategy, and a lot more. 

This will also help determine the kind of business loan you will need to draw up when acquiring funds. In India, there are many different types of bakery establishments that people might start. The following are a few of them:

  • Bakery cafe: A bakery-cafe combines the functions of a bakery with a cafe, selling baked delicacies such as bread, pastries, cookies, and more, as well as coffee and tea.
  • Counter service: Guests can order freshly baked items to take home from a counter in the case of a counter service bakery shop.
  • Custom bakeries: A specialty or custom bakery specializes in baked goods, such as wedding cakes, cupcakes, or gluten-free baked goods. For opening such bakeries, there is added cost, and you may want a bakery loan

Draw up a business strategy

Writing a bakery business plan should be the next step in starting your new shop. It sets out what sort of business you want to create, how to get a shop loan, how the shop will be constructed, marketing strategy, and financial predictions. 

Your business plan is the backbone of your shop, and a good one can help you secure capital easily and make the process of starting a new bakery go smoothly.

Acquire proper funding and loans

Leasing a commercial location, acquiring insurance, preparing your facility with equipment, employing and training staff, stocking your kitchen, and paying for utilities are all expenditures to consider when beginning a bakery. As a result, you’ll need a substantial quantity of cash on hand to meet these expenses.

You and your business partners are unlikely to be able to fund your new bakery on your own, so you’ll need to borrow money. In these situations, you can rely on Ziploan for business loans. It is the safest and most convenient approach to get a loan.

Select a location

After getting your bakery loan, Choosing a decent location is what comes next. A reputable market or high-end retail areas with constant traffic and crowds of people are good locations for a bakery. The bakery business works best in front-area establishments on the ground level that is easily accessible and visible.

You can engage a lawyer to prepare and negotiate a lease with the landlord once you’ve identified a suitable site for your business. When negotiating a lease, make sure to clarify the term of the lease, any rent increases that may be included, and other important details.

Licenses and permits

The foodservice business is extensively regulated on every level, and you’ll need to secure various permissions and licenses before starting your bakery. 

Food licenses, GST registration, health licenses, etc., are just a few of the permissions you’ll need. You might also need other licenses depending on where you’re located. To get a bakery loan, you might have to get some permits as well.

Invest in buying good equipment

For a bakery business, kitchen equipment is essential. It is composed of high-quality materials that are durable and long-lasting. Mixers, Ovens, Deep Fridges, Cooling Fridges, Working tables, Gas stoves, Cylinders, storage utensils, and other equipment are all essential in the bakery. For increased efficiency, the bakery needs all this equipment.

Instead of purchasing completely new equipment, you may save money and reduce any added costs to the shop loan by purchasing some used, second-hand equipment that is in good operating condition. Knives, mixing bowls, and baking pans are examples of equipment that do not need to be entirely brand new.

Employee recruitment and training

The size of your team will be determined by the type of bakery you have. A retail bakery, for example, will need to hire and educate employees to accept orders and operate the cash register.

However, most of your bakery employees will work at the store’s back, preparing and baking the meals.

Your bakery should have at least one or two personnel with proper bakery training or expertise to supervise the actual baking process. 

Branding and marketing

Any business’s success depends on its ability to market and brand itself. Hire a professional designer to create a well-designed logo and display board.

Although it will add to the entire shop loan, remember it will assist you in developing your distinct personality, but it will also assist you in branding and packaging. Remember to acquire a well-designed menu as well.

Small businesses and bakery shop owners should utilize social media as a mode of marketing their business online.

It is very easy and accessible and can be free of costs so that there is no added expense to the shop loan that the business has taken. 

Social media platforms like Instagram and Facebook help grow the audience and improve reach by contacting people of all ages. 

Starting a bakery poses several specific challenges like getting a business loan, establishing the shop, etc., that differ from those encountered when opening a traditional restaurant or other establishments. 


Staying prepared and thorough is one of the greatest strategies to guarantee that the launch of your bakery goes successfully.

Getting your shop off to a solid start requires creating a clear business plan, implementing it properly, getting a bakery loan, and keeping your paperwork organized.

Apply for MSME Loan

Bakery Shop – FAQs

How much would it cost to open up a bakery?Is bakery a profitable business?

Yes, it is profitable in 2021 when you have the right marketing strategy and a realistic revenue goals for your bakery business.

How much would it cost to open up a bakery?

The approximate cost to open a bakery shop in India would be around Rs. 10-12 lakhs. The cost can vary depending the locations.

How do I start a bakery business?

Following are the steps to start a bakery business:

1- Create A Bakery Business Plan.
2- Choose A Location For Your Bakery Business.
3- Get All Licenses Required To Open A Bakery Business In India.
4- Get Manpower Required To Open A Bakery.
5- Buy Equipment Needed To Start A Bakery Business.
6- Design The Display Area Of Your Bakery Business.
7- Install A POS & Billing Software In Your Bakery.

What licenses are needed for a bakery?

Your bakery business needs 5 licenses: FSSAI license, GST Registration, Local Municipal Corporation Health License, Police Eating House license, and the Fire License.

Do I need a degree to open a bakery?

No, you don’t need to degree to open a bakery in India.

Why bakery is a good business?

As a baker, you can challenge yourself by creating new recipes and inventing new products to improve sales and customer satisfaction.

You May Also Like:

UPI Full FormCIN NumberSAC Code List
Manufacturing Business IdeasAppraise Working Capital LoanCGTMSE
MSME RegistrationUdyog AadharMSME Full Form
Cancelled ChequeMudra LoanRestaurant Loan