This Delhi-based café chain is looking to expand pan-India with over 30 outlets by 2022

American sitcoms may be held responsible for introducing the café culture to our tea-loving population, but their sustained popularity over the years is to their own credit. Delhi-based patisserie chain Honey & Dough, in particular, owes it to its freshly-baked goodies, winsome hot cuppas, and the wide variety of nibbles on offer.

Founded by Utsav and Aavika Chhawchharia in 2016, this bakery and patisserie chain began with a single outlet in Defence Colony Market, Delhi, and has grown to eight different outlets in Delhi-NCR in the run up to its pan-India expansion.

“We opened Honey & Dough because we felt there was a dearth of good bakeries and coffeehouses in India. Our travels around the globe were the inspiration behind building this brand, as we sought to re-create the epicurean delights we had personally experienced in far-flung countries. We wanted to present an authentic international menu to a discerning clientele with exquisitely crafted baked goods at reasonable prices,” share the founders in a chat with YSWeekender.

The idea

Utsav and Aavika met while studying at Hansraj College, University of Delhi. They pursued their master’s degree from Cass Business School in London, got married, and began this venture together. Between the two of them, they have prior work experience in the petrochemicals and polymers business, as well as in the field of home furnishings.

Aavika says, “What started as a bakery has now become a full-fledged café. We believe it is the high quality and consistency of our products, our attentive service, and striking interiors that attract patrons who keep coming back. It was the huge demand for café-style food, that led us to expand our vision from bakery to café.”

Presently, their eight Delhi outlets are located in Janakpuri, Defence Colony, Ambience Mall in Vasant Kunj, Pacific Mall in Tagore Garden, Malviya Nagar, Two Horizon Gurgaon, Hargobind Enclave, and Cyber Park in Gurugram.

This spread of branches was a strategic move. Utsav explains, “Our Malviya Nagar, Janakpuri, and Hargobind Enclave outlets are located in residential neighborhoods where local residents enjoy meeting their friends and family. Our Horizon Center and Cyber Park locations serve corporate employees – so we appeal to a variety of people and tastes.” Delivery orders can also be placed through their website.

The upcoming outlets are located in the residential colony of Pitampura and the Mall of India in Noida.

The products

Their curated menu consists of both sweet and savory items, including a wide selection of pizzas, burgers, wraps, platters, pastas, sandwiches, and even exclusive dishes made with Maggi noodles. Apart from the plentiful snacking options, they offer innovative full meals like burrito bowls, and merchandise like cookie jars, granola bars, teas, coffees and more. However, it is their cake section that is their most popular offering.

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When asked about customer favourites, Utsav says, “Every category has a favourite. People love our lasagnes, burrito bowls, and pastas. For desserts, our jaggery teacake and flourless almond cakes are popular options. Our croissants too are loved by many as they are authentic and flaky. Plus, our beautiful gifting hampers give us an edge over our competitors as they start from the reasonable range of Rs 500 and go up till Rs 3,500, with a huge variety to choose from.”

Favoured flavours of cake include the pineapple, black forest, Belgian truffle, chocolate caramel walnut, as well as themed cakes for special occasions, and healthy options like whole wheat jaggery cakes.

“We also make customised cakes like pull-me-up cakes, Piñata cakes, etc. For Christmas and New Year’s, we are making chocolate houses as gifting items. These are quite unique and not easily available in Delhi,” shares Aavika.

In fact, every major occasion on the calendar is marked by a specialised gifting option through combo packs filled with seasonal and festive offerings which are sold for limited periods only. These include items like cheese straws, blueberry tea cakes, French hearts, and oatmeal raisin cookies, among a variety of others.

The growth

According to data published in expertmarketresearch.com, the Indian bakery market stood at a value of nearly $7.60 billion in 2020. The market is further estimated to grow at a CAGR of 8.5 percent between 2021 and 2026 to reach a value of $12.39 billion by 2026, and Honey & Dough is set to cash in on this trend.

To set up an outlet, it costs anywhere between Rs 50-75 lakh, depending on its location and size. Yet, since their launch five years ago, they have done well in terms of revenue.

“Going by the current run rate, we will close FY22 with triple the revenue of FY19 (pre-covid), which means a 45 percent CAGR. Profitability wise, we hit breakeven last year and turned profitable this year,” explains Utsav.

Though Café Delhi Heights, L’Opera, and a few other brands could be placed in the same bracket as them, the founders of Honey & Dough believe they stand apart. Each brand has a different menu and is popular for different products. They highlight their USP as providing comfort food, good artisanal coffees, and customised gift hampers and cakes that are unique to them.

Plans ahead

The surge in popularity has pushed the brand to expand its presence pan-India over the next few years. The company plans to be present in multiple cities with over 30 outlets by 2022, beginning with Noida, Faridabad, and Ghaziabad.

After opening 15-20 outlets in the NCR region, the team will look to move to other parts of the country, and are targeting Mumbai, Bengaluru, and Kolkata, from where they have been receiving a number of franchise queries.

The founders sign off by saying, “We started in 2016, and still consider ourselves a new brand. Since we don’t belong to the hospitality background, it has been important for us to spend our initial years in understanding the integrities of the market. Covid also took away two of these precious years, but now after expanding widely in Delhi-NCR, we feel comfortable setting up in any city. It’s just a matter of time for us now.”