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TGB Bakers is a well-known bakery products’ brand across Gujarat, more so for its designer cakes. With up to 90% of its business operating through the franchise model, the brand is now planning to spread its footprint across many other locations, writes Toprit Saifi
What started as a facility to fulfil the needs of hotels and restaurants has now widened its footprint to 40 outlets spread all over Gujarat. “We started our bakery manufacturing facility in 2007 to suffice the bakery requirement of our internal hotels and restaurants. However, we realised that our production facility was being underutilised. Thus we decided to venture out into opening a cafe and bakery outlet,” says Manish Somani, Director, TGB Bakers and Confectioners (P) Ltd. The first outlet was opened in 2008 at Vastrapur, Ahmedabad.
“Franchising is definitely the most suitable model for any business expansion. Practically, it is not possible for us to monitor the ground reality at 100 locations. Having good quality responsible franchisee owners helps us overcome that hurdle and ensure the best services to our clients. We wish to keep our focus on the back-end and tie up with individuals who can run the front-end show, under the guidance and SOPs of the company,” Somani states. The products sold at the outlets are ready-to-eat products. As such, the franchisee partners do not have to go through the hassle of manufactur- ing or operating a kitchen.
“Our franchisee partners are just responsible to stock and re-sell the products to customers. Up to 90% of our outlets are franchised. Our franchisee partners get 30% on the maximum retail price of the products sold through their outlet. There is no royalty,” Somani adds. What has put wind in the sails of this sector is that there are an increasing number of people who like designer cakes for special occasions and bakery items as casual snacks or beverage accompaniments.
“There has definitely been a spurt of cafes and bakeries in the last decade. I believe the competition has just begun. India’s bakery market is expected to grow at an annual rate of 25-30%. There definitely is a lot of space in the market considering the increasing population and preference towards bakery products as a day-to-day need,” Somani states.
EXPANSION PLAN
The brand plans to open 60 more outlets across Gujarat in the coming years. “We would like to add more and more products to our range. When we started in 2008 we had 50 products; today we have 300+ products,” he says, adding, “In the pipeline is an entire range of sauces, spreads, pickles, chutney and savoury snacks. These products are a routine requirement of an Indian household along with bakery products such as breads, cookies, toasts, biscuits, etc. We aim to be a one-stop solution of quality products for our customers.”
Franchise facts
NUMBER OF OUTLETS: 40
INVESTMENT REQUIRED: STARTING AT RS 12 LAKHS
AREA REQUIRED: MINIMUM 300 SQ. FEET
EXPECTED ROI: 35-40%
EXPECTED BREAKEVEN: 2 YEARS.
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