BakeryBiz, Jan-Feb, 2020:
From their first bakery outlet set up at M G Road in Cochin in 1967 to currently having 48 outlets across the state of Kerala, Best Bakers has had an illustrious journey and the future plan looks even more promising. Vijesh Vishwanath, Owner of Best Bakers and President of Bakery Association Kerala spoke to Sumit Jha about the current bakery scenario in the state and his own brands future plans.
It must be a very satisfying feeling to be having 48 outlets spread across the state of Kerala. Tell us about the journey. What are the future plans for the Best Bake group?
My father had set up the first Best Bake outlet in 1967 at MG Road in Cochin and since then we have consistently maintained our standards and thus grown. We have had an organic growth and even as of date all out outlets are operated directly under the company’s management. While we have a few franchise outlets, the operational control rests in the hands of the company management, thus ensuring that the quality standards are maintained.
In terms of growth and future plans, people are aware of our brand and have been associated with our brand for a long time. We have a target of having a threefold growth, thereby reaching 150 outlets of Best Bake by the year 2027. While there is competition, typically from small operators having outlets and baking facility behind their outlets, we manage to have an upper edge based on our brand reputation and quality assurance at affordable price range that we offer. In addition to that, our capacity to cater to different needs at different times at short notice gives us a unique position in the market. We supply from a central factory in Cochin to all the outlets in the region. We plan to add central factory infrastructure in Kottayam, Alappuzha and Trichur, the neighbouring three districts of Cochin, to cater to our outlets across the state.
As the second generation handling the organisation, do you see growth prospects to engage further ahead and grow the brand outside the state?
Currently we are planning to grow within Kerala itself, not outside. We believe that there is a large growth opportunity inside the state itself. While Kerala has a lot of bakeries with every city having multiple number of bakeries, and there also is a lot of challenge, but we want to be within Kerala itself. The reason for staying within the state it because we are a family oriented business and thus find it difficult to expand outside the state. However, in the future, franchise model can work for us outside the state.
What are the challenges being faced by the bakery industry?
Two major challenges are currently being faced by the bakery industry. GST is a practical problem that is being faced by the bakery industry at large and needs to be looked into. The other major problem that the industry faces is the challenge of finding good trained staff. This is because people are not willing to work in a bakery. Most youngsters today want a white collar job.
While there also is the general problem of a slowdown due to the overall market condition, but that is something that the whole country is facing and should not be considered as a problem specific to the bakery industry.
In terms of training, how much focus is there on providing proper training? Is there a particular model followed?
We currently employ over 550 people across our stores and take utmost care in ensuring that the quality standards of the bakery are maintained. To this end, we ensure that there is continuous focus on training our staff members and maintaining a standard operating procedure which enables us to offer consistent quality and service.
Anyone who is new to the bakery industry does not understand the importance of hygiene and various other aspects which are specific to the industry. We focus on training a lot, and are working on creating a policy and procedure manual which works as a common grooming and sales guide for all our employees.
Your thoughts on the availability of quality of manpower in the bakery industry?
Kerala provides great opportunity to people in the form of employment in the bakery industry. With more than 20,000 bakeries and a multiple of 10 employees per bakery in terms of staff requirement, there is a large scale employment opportunity in the segment. The situation is likewise for the rest of the nation.
However, people coming from catering and hospitality institutions do not fit well in the bakery segment as most of them have the aspiration to work in fancy environments of cruise liners, five-star hotels or in relevant setup abroad. Over the years we have seen many people join our bakery and after sometime shifting their job profile into sales and other verticals. People find it more attractive to work in the sales and marketing department than in a bakery. This, while we pay much better than what is paid to a sales and marketing personnel.
How does the Indian bakery segment compare to the international leaders in bakery?
Automation in the Indian bakery industry is lacking very much behind. Large scale automation has not come about in the general bakery setup primarily due to cost implications. Normal artisan bakeries have not been able to implement the use of technology. At majority of bakeries in the country, while some parts of the procedures have been automated, complete automation is not being seen largely. It is only the large organisations like Britannia, etc. who have been able to automate, but complete automation is not seen in majority of places across the country.
There is a huge potential of implementing technological innovations into the Indian bakery segment, however, with the kind of investments involved and based on the market size, the final product price being offered does not make it viable. Even with our central kitchen and comparatively large volumes catering to our own outlets, the equation does not become viable for us. One can go for automation when the central units supply to large number of outlets and sales are increased effectively.
Since mechanisation cannot happen by catering to our own outlets, so we are thinking about having some niche products which would be marketed through super markets, bakeries and other stores, thereby increasing our turnover. We will need to undertake proper study into the investments involved and the expected returns before moving ahead with automation.
What is your take on the existing bakery exhibition scenario in the country?
Bakery shows and exhibitions are an eye opener for industry associates. They highlight what is happening within the industry and give an insight into how one can expand and increase their capacity and business. Recent increase in the number of exhibitions across the country gives a regional prospective. These platforms become a place to learn and is used for exchange of ideas and interactions with like-minded people. One gets to see new machines and technology and gets a chance to meet other bakers who they can collaborate with and grow.
However, there is a feeling that the exhibitions over the years are showcasing almost the same products and there is not much difference. Most of the companies and machines being exhibited are the same and there is not much difference in the products showcased. New technologies do not seem to be coming up.
There are exhibitions being organised by every state including BAKE . Such platforms have definitely helped the industry grow. We at BAKE always promote attending exhibitions at both regional and national level. I would like to appreciate the shows organised by Hospitality First as they provide an overall perspective about the bakery offerings.
As the President of BAKE , tell us what initiatives are being undertaken to promote and support the bakery industry in Kerala?
Currently, in addition to adding technology to the bakery operations, we are focusing on increasing awareness about food hygiene and keeping the bakery clean. We want bakers in Kerala to uplift their technology and make their bakeries a very hygienic place. BAKE is promoting good manufacturing practice like reducing the use of colours and other harmful ingredients in the bakeries, so that we can grow together as an industry and there is a sense of responsibility developed among the bakery owners and operators.
It is important to realise that together we can achieve more and grow. Recently the whole of Kerala bakers came together and achieved a big feat by their combined effort of creating the world’s longest cake – Guinness Record event (refer to page – for the complete story). It was a combined effort of all 14 districts of Kerala who came together in large numbers to support the initiative. A programme like this showcased the power of working together and raised the overall standards of bakeries across the state.
BAKE is working towards spreading awareness about FSSAI rules and other government initiatives. What specific steps are being undertaken?
There are a lot of exchange of ideas and discussions on good manufacturing practices happening across the bakery segment in Kerala. The local government is ahead of times and is working along with FSSAI in complying with all the rules and regulations. Whatever can be done is being done.
We at BAKE have completed almost 1,200 trainings for bakers across the state over a period of one and a half months to increase awareness. With increase in migrant labourer coming into Kerala and working at our bakeries, there is an increased need of providing them with training on hygiene and good practices, which is being emphasised on by the association. It has been a concentrated effort of many years which has resulted in implementation of good practices in the bakery segment of Kerala and bringing the industry to its current stage.
