How to start a Kekiz franchise in India in 2024?
Written By: Yukta Palekar
Who does not enjoy a good slice of cake? Cake is now required for any type of celebration, whether it is a birthday celebration, anniversaries, goodbye party, or any other milestone event. If you work with a competent franchise, they will handle all these details for you, and you will be able to manage the cake store with ease using certain marketing strategies. Today we shall discuss one such cake franchise, Kekiz - The Cake Shop.
We may easily create a cake shop and start our own company using this trend. It is usually a smart idea to start with a franchise since quality, style, newest trends and brand name are all important in the cake industry. As a result, you must be knowledgeable in the subject.
About Kekiz Franchise in India
Kekiz is an Indian cake and pastry speciality brand that specializes in producing and serving top-quality fresh cakes in and around Pune. With international standard manufacturing facilities, they aim to grow nationally and have plans to have 150 outlets in Pune, Pimpri-Chinchwad, Talegaon, and Chakan.
With a staff of over 100, Kekiz aims to provide the best quality products, services, and hygiene to customers. Established by women entrepreneur Swathi Waidande in Pune, Maharashtra, Kekiz has opened over 500 franchise outlets across India within a year.
The company's mission is to be part of every happiness and has a presence in over 5000 pan India locations. Their core values include passion, integrity, state-of-the-art technology, customer satisfaction, and innovation baking. Kekiz has a population of 16800, a popularity of 1,200, and 650 happy customers.
Type of Franchise Kekiz offers
Kekiz offers three franchise models: Master Franchise, Franchise (Dine IN and takeaway), and Digital Franchise.
- The Master Franchise prepares and supplies Kekiz cakes to franchises, while the Digital Franchise involves marketing Kekiz products and receiving commissions.
- The Master Franchise requires 50,000 rupees as a franchise fee, but it does not require a shop, labour, or area limitations.
- The Digital Franchise model is ideal for those who want to sell Kekiz cakes more efficiently, without the need for a shop or labour.
Kekiz Franchise investment requirement
The Kekiz franchise requires an investment of 7 to 8 lakhs rupees, including a franchise fee of 2 lakh rupees, shop interior of 1 lakh to 1.5 lakhs rupees, cooling counter and other equipment of 3 lakhs to 3.5 lakhs rupees, miscellaneous expenses of 50,000 rupees, shop security deposit and first-month rent (if not owning the shop), and labour first-month salary of 15,000 rupees.
The franchisee can expect a profit margin of 30% to 40% on sales. The investment includes franchise fees and infrastructure requirements. The franchise commission is approximately 90%, while the brand royalty is around 10%. The breakeven time for the Kekiz Cake Shop franchise is 0.5 to 1 year.
Kekiz Franchise offers a lucrative opportunity to connect with the largest cake supplier, offering unique flavours and easy documentation. It also saves on advertising costs and promotes the brand itself, resulting in low investment and high return.
Kekiz Franchise Profit Margin
The Kekiz Franchise Profit Margin is calculated by deducting expenses from Gross Sales, assuming a daily sale of 6,00,000 Rupees. The total expenses include material costs, rent, electricity and water supply, worker salary, aggregate commission and marketing, and other expenses.
The net profit is 72,000 Rupees. The profit margin is 12% for the initial sales of 6,00,000 Rupees. However, the bakery's high demand in the market may lead to lower profits. After good local marketing and branding, sales increase to 9 Lakh Rupees per month, resulting in a profit margin of 16% or 1,44,000 Rupees.
Location is crucial for a franchise's success, along with food quality and service. A high-footfall location in the main market, such as colleges or corporates, is ideal.
Why Kekiz franchise Is Everyone's Favourite Cake Shop?
- Founder and Origin: Founded by Mrs. Swati Waidande. Originated in Pune, Maharashtra.
- Variety of Cakes: Over 650 variants of cakes are available. Caters to Punekars' diverse taste preferences. Options include black forest, fruit cakes, chocolate chips, Dutch chocolate, and custom cakes.
- Cake Prices: Pastry prices start at INR 25. Half-kg cakes are priced at INR 300. One kg cakes are available at INR 600. Customized cakes start at INR 350 for half a kg.
- Accessibility and Expansion: Easily accessible with 150 locations across Pune. Plans for expansion in Maharashtra and national markets.
- Service Excellence: Known for excellent customer service. The staff is friendly, helpful, and focused on customer satisfaction. Breaks stereotypes around Pune brands.
- Inclusive Appeal: Popular among people from all social backgrounds. A preferred choice for those seeking a unique and delicious cake experience.
- Affordability: Offers affordable cake options, making it accessible to a wide customer base.
The Indian Cake Franchise Market and Bakery Industry Trends
- Market Growth Projection: The Indian cake market is expected to grow at a CAGR of 12.5% over the next five years.
- Rise in Bakery Product Popularity: Bakery products gaining popularity for convenience, accessibility, and nutritional profile. Essential for human nutrition.
- Impact of Urbanization and Working Population: Increasing urbanization and working population lead to a preference for out-of-home consumption. Demand for instant, nutritious bakery products rises.
- The shift in Consumer Behaviour During COVID-19: During the pandemic, safety concerns led to a decline in bakery shop cake purchases. The rise in homemade cake trends impacts the market.
- Focus on Gluten-Free Products: Gluten-free products gaining traction in India. Market players like Britannia and Parle cater to consumer preferences.
- Segmentation of Bakery Manufacturers: Bakery manufacturers in India are divided into bread, biscuits, and cake segments. Bread contributes to value growth, while cakes and pastries experience lower sales growth.
- Emergence of Savory Bakery Products: Muffins, puffs, and Savory products gaining popularity. Younger populations visit independent bakeries for snacks.
- Increased Consumption Due to Affordability: Affordability and convenience drive the increased consumption of bakery items. Working population growth in metropolitan cities contributes to demand.
- Impact of Fast-Food Chains and Online Stores: The growth of fast-food chains and online food stores stimulates bakery item demand. Metropolitan cities like Mumbai, Bangalore, Delhi, and Hyderabad experience a surge.
- Value-Added Bakery Products Driving Growth: The introduction of value-added bakery products contributes to market growth. Local and global players expanding their outlets across India to meet consumer demand.
Indian Cake Franchise Industry Overview
- Market Structure: Highly fragmented industry with a substantial presence of local and regional players. Major players include Monginis, Elite Foods, Frontier Biscuit Factory Pvt. Ltd, Winkies, Kekiz, etc.
- Key Strategies in the Market: Companies employ various strategies such as new product launches, agreements, partnerships, expansions, and acquisitions.
- Diversification and Innovation: Bakers are introducing healthy alternatives to high-calorie and high-sugar products, driving market growth. The addition of new Flavors contributes positively to industry growth.
- Strategic Moves in the Global Bakery Product Market: Companies active in the global bakery product market, implementing strategies like new product launches and expansions.
- Healthy Alternatives Trend: Market responding to consumer demand for healthier options. Bakers adapting by offering alternatives to traditional high-calorie and high-sugar products.
- Flavour Innovation Impact: The introduction of new Flavors is anticipated to have a positive impact on industry growth. Reflects a dynamic and evolving consumer palate.
- Rise of Long-Shelf-Life Packaged Cakes: High growth was observed in the market with the launch of long-shelf-life packaged cakes. Indicates changing consumer preferences and demand for convenience.
Advantages of Starting a Kekiz Cake Franchise Business in India in 2024
- Diverse Revenue Streams: Multiple income sources, including B2C sales, online orders, and supplying products to cafes and bakeries. Diversification enhances financial stability.
- Strong Brand Identity: Leverage the established reputation and recognition of the Kekiz brand. Benefit from customer trust and loyalty associated with the brand.
- Online Presence: Tap into the digital market with an online store.
- Flexible Business Models: Operate from home or choose high street premises. Options to focus on online sales or supply to local establishments.
- Balancing B2B and B2C Orders: Maintain a balance between business-to-business (B2B) and business-to-consumer (B2C) orders.
- Work-Life Balance: Franchises often offer flexibility in part-time or full-time operations. Allows entrepreneurs to balance work commitments with personal life.
- Creative Outlet - Baking Cakes: Baking cakes is a creative skill, allowing for innovation and unique designs. The creative aspect provides stress relief and enhances the enjoyment of running the business.
- Industry Trends and Innovation: Franchise brands keep entrepreneurs updated with industry trends. Align products with evolving customer preferences through continuous innovation.
- Product Innovation and Flexibility: Franchise agreements often allow for product innovation. Operational flexibility is considered, providing room for adapting to local market demands.
Kekiz India is an Indian speciality brand that produces and serves high-quality fresh cakes in Pune. With international-standard manufacturing facilities, Kekiz plans to expand nationally with 150 outlets in Pune, Pimpri-Chinchwad, Talegaon, and Chakan.
With over 100 staff, Kekiz values its products as part of customers' culture and traditions. The company offers a profitable franchise opportunity, and if you find more information, feel free to share it with franchisebazar.
We will connect with you with new franchise opportunities.
Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.
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